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Freddie Mac wants to create a government-backed market for second mortgages
This proposal could be a massive stimulus for the economy, but itâs not without potential drawbacks.
US stocks finished higher on Tuesday following a speech from Federal Reserve Chair Jerome Powell ahead of todayâs CPI inflation report
• Powell reiterated that inflation is falling slower than expected and the central bank will keep rates at their current level until more progress is made.
• Several AI announcements moved the market. Oracle saw its shares rise following news of a potential $10 billion Cloud deal with Elon Muskâs startup xAI. Meanwhile, Alphabet launched Gemini 1.5 Pro, sending its stock higher.
• The producer price index, which measures price changes at the wholesale level, rose 0.5% in April, more than expectations.
• The NFIB small business optimism index increased for the first time this year in April, bouncing from its more than 12-year low the month before.
What to be on the lookout for today
• April CPI inflation data. Weâll also get April retail sales and the weekly update to the 30-year mortgage rate.
• In earnings, Cisco and Monday.com will report.
A beginnerâs guide to options trading
If youâve been investing in stocks and maybe some other asset classes but are curious about options, this is for you.
So what are options? Simply put, theyâre an investment that gives an investor the chance for a specific market action (buying or selling) in the future.
Making the call (or put)
Letâs get into a bit more detail to explain: Options are called derivatives because you arenât buying the underlying asset, such as a stock. Instead you buy a contract that is tied to that stock.
This contract may give you the right but not the obligation to buy or sell that stock at a specific predetermined price during a specific time period. There are two main types of options: call options, which allow an investor to buy an asset, and put options, which allow an investor to sell an asset.
The reason investors may choose to trade options include risk management, and the chance at additional income. But like every investment, options themselves also bear risk. Always educate yourself before you trade.
Todayâs top stories
There are more U.S. women in the workforce now than ever beforeAmerican womenâs workplace participation hit a record high in April. But with this momentum, at least one hurdle remains.
Read more >> How to work out for lessThe cost of gym memberships and fitness programs are on the rise, but there are creative ways to save when it comes to your fitness routine.
Read more >> APR versus interest rate: Whatâs the difference?Annual percentage rate, or APR, is a broader measure of the cost of borrowing money. Hereâs what to know when searching for a personal loan.
Read more >>Other news that caught our eye
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ChatGPT launched its latest generative AI model GPT-4o, capable of reasoning across text, audio, and video in real time.
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Forecasters are still torn over the direction of interest rates, with some penciling in rate cuts due to cooling inflation, and others arguing the labor market is still too hot.
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The White Houseâs plan to implement tariffs on Chinese EVs could stifle the electric transition by excluding some low-cost vehicles from the U.S. market, though it will protect jobs in the industry.
Financial planner tip of the day
âWorking to improve a credit score before applying for a home loan could save a borrower a lot of money in interest over time. Lower rates will keep monthly payments lower or even provide the ability to pay back the loan faster.â
Brian Walsh, CFPÂŽ at SoFi