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What to do after the massive Social Security breach
Last week, the hacking of a background checking firm exposed a staggering 2.9 million accounts’ personal information, including Social Security numbers. Here’s what to do if you believe you were affected.
US stocks finished higher on Wednesday
• The July Fed minutes stoked optimism for a rate cut in September.
• A mixed batch of retail earnings suggested Americans are still willing to spend, but prefer to shop for discounts: Target and TJ Maxx-owner TJX Companies beat expectations, while department store Macy’s slashed its guidance.
What to be on the lookout for today
• Existing home sales for July, as well as the weekly update to first-time unemployment claims.
• In earnings, TurboTax-owner Intuit and Ross Stores will report.
The US jobs market is much weaker than we thought
A bombshell economic report gave investors some food for thought yesterday, showing that America’s labor market was quite a bit weaker than initially reported in recent months.
The Bureau of Labor Statistics’ Quarterly Census of Employment Wages report showed that nearly 820,000 fewer jobs were added to the economy than previously thought between April 2023 and March 2024.
With worries about the labor market already bubbling up this summer, this had the potential to rock the markets, yet there was hardly any panic. If the markets don’t care, should we care?
Yes, says SoFi Head of Investment Strategy Liz Young Thomas, and there are several reasons why. For one, there’s the Federal Reserve’s dual mandate of keeping inflation and employment stable. With inflation trending closer to the Fed’s target, it would be bad news if jobs were suddenly out of whack.
And then there’s timing. The Fed won’t have a rate setting meeting until September, but this very Friday, Fed Chair Jerome Powell will speak at the Jackson Hole Economic Symposium and could give some important pointers. His “speech has the potential to change [the] picture and will be the next big edge-of-our-seats event,” writes Young Thomas in this week’s column.
"So much for relaxing summer Fridays.”
Today’s top stories
College seniors are pessimistic about career prospectsAn increasingly competitive job market is the culprit, but there are still ways for job hunters to stand out.
Read more >> How you can protect your credit card against hacksWith large scale hacks in the headlines, it’s key to know how you can protect yourself and your finances against criminal activity.
Read more >>Other news that caught our eye
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Federal Reserve officials agree that a September interest rate cut is likely per the central bank’s latest meeting minutes.
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Mortgage applications hit a six-month low last week, despite declining mortgage rates.
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A Texas judge blocked the Biden administration’s ban of noncompete agreements.
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As fitness trends are shifting towards strength training, Peloton and Planet Fitness are pivoting too, investing in strength workout equipment and content to engage consumers.
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Ford pulled the plug on its planned electric SUV, citing pricing pressure.
Financial planner tip of the day
“As you are establishing credit, it’s critical that you protect your credit score. The goal is to have access to cheaper credit when you need it. That means if you are not sure whether a hard inquiry will be performed, it is best to ask before approving a credit check.”
Brian Walsh, CFP® at SoFi