Friday,
April 26, 2024
Market recap
Dow Jones
38,085.80
-375.12 (-0.98%)
S&P 500
5,048.42
-23.21 (-0.46%)
Nasdaq
15,611.76
-100.99 (-0.64%)
Top Story
Millennial wealth has been going through the roof
Between 2019 and 2023, the average wealth of households under 40 has expanded by nearly 50%. Hereās how that happened.
US stocks finished lower on Thursday following economic data and more earnings
• Growth slowed: The US economy grew at an annualized rate of 1.6% between January and March, according to the first estimate of GDP growth, the slowest pace in nearly two years, and far less than expected.
• Inflation was hotter than expected: The Federal Reserveās favorite inflation measure, core PCE, rose 3.7% in the first quarter, more than predicted, while consumer spending slowed to 2.5% in the same period.
• The 10-year U.S. Treasury yield climbed to more than 4.7%, its highest level since the beginning of November.
• Meta stock tumbled 10.6%, marking its worst day since 2022, after issuing weaker-than-expected sales guidance and increasing its capital expenditure forecast, largely due to AI investments.
What to be on the lookout for today
• Core CPE and personal income and spending numbers for March.
• In earnings, ExxonMobil, Chevron, and Colgate will report.
How to keep more of what you earn
In a high inflation world, you want to make the most of your money. Investing can be one way to grow your earnings, but it also comes with risksā¦ and taxes.
The phrase ātax-efficient investment strategiesā can make your eyes glaze over, but itās important to know the tax implications of different investments.
Letās get into it.
The Importance of tax-efficient investing
Many investments, such as stocks, ETFs, or mutual funds, are taxed on their appreciation, or capital gain. But some bonds arenāt taxed at all. In other words, itās complicated.
Some investment accounts are tax-deferred, such as your standard 401(k) retirement account or traditional IRA in which you make pre-tax contributions, grow your money tax-free, and pay taxes on withdrawals later on.
Other account types, such as Roth IRAs are entirely tax-exempt. Contributions are made with post-tax dollars, and investors donāt owe any taxes on withdrawals.
Todayās top stories
What does the FTCās ban on noncompete agreements mean?Companies will no longer be allowed to keep workers from taking jobs with their competition per a new rule from the Federal Trade Commission. Itās a win for workers, but itās not without challengers.
Read more >> Are you incurring debt when you use ābuy now pay laterā firms?āBuy now, pay laterā firms and credit bureaus are trying to figure out how to work together.
Read more >> Quick hacks for saving moneySaving can be hard to do. Weāve all been there: You may have a vacation coming up, a loved oneās big birthday, or maybe you just want to bolster your rainy day fund. Here are 15 things to stop buying when trying to save money in the near-term.
Read more >>Other news that caught our eye
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Amazon plans to spend $11 billion to build data centers in Indiana, creating at least 1,000 jobs.
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Selena Gomezās beauty brand has been valued at as much as $2 billion. The actress is not interested in selling it though.
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Southwest Airlines cited Boeing delivery delays for cutting service to four airports in the U.S. and Mexico.
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Chipmaker Micron Technology will receive $13 billion in funding and loans from the U.S. government to build memory chip factories in New York and Idaho.
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The White House introduced new rules for airlines requiring greater fee transparency and automatic cash refunds.
Financial planner tip of the day
"When figuring out how to become financially independent, it can behoove individuals to invest early and often. Even if itās only $25 or $50 per month, small amounts can add up. By investing earlier than later, money has more time to grow and for interest to compound."
Brian Walsh, CFPĀ® at SoFi