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A short week with a lot riding on it
It’s a short trading week, but that doesn’t mean it will be uneventful. Here’s what’s ahead on Wall Street.
US stocks finished sharply lower on Tuesday
• Disappointing economic data and a steep tech sell-off sent all three major indexes sharply lower.
• U.S. manufacturing activity rose less than expected in August, signaling a continued contraction in the sector.
Here’s what to be on the lookout for today
• It’s a shortened trading week after the market was closed on Monday for Labor Day. On Friday, a highly-anticipated August jobs report will round out the week.
• The JOLTS job openings survey, as well as the weekly update to the 30-year fixed mortgage rate.
• In earnings, DICK'S Sporting Goods, Dollar Tree, Hewlett Packard Enterprise, and SPAM-owner Hormel Foods will report.
You need an emergency fund. Here’s how to build one
Life happens fast. Your car breaks down on the way to work. That toothache turns into a need for a root canal. You drop your phone in a puddle. You lose your job.
Part of your financial planning should include an emergency fund that can help you get through life’s unexpected events.
How much should I save?
A rule of thumb is having three to six months worth of living expenses in your emergency fund. Depending on your line of work, including whether you may have an inconsistent income stream, you may choose to save more.
Once you’ve set a goal amount for your fund, determine how much you can contribute to it every month. If possible, automate this process.
Where do I keep my money?
Think of your emergency fund as a cash reserve. You want the money to be accessible, but separate from your day-to-day accounts to avoid dipping into it accidentally. A high-yield savings account can help you make your emergency fund stash work for you.
Today’s top stories
Why older workers are increasingly choosing a different kind of retirementRetirement is changing as older workers increasingly choose to phase out of working life slowly.
Read more >> Why America’s small towns are the next big thingEconomic growth is surging in many smaller municipalities across America, largely thanks to these two industries.
Read more >> What happened in the markets in August?Last month started off with a bang, as high volatility gripped markets at the start of August. Here’s our recap of what happened and how the month ended.
Read more >>Other news that caught our eye
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Small businesses are getting smaller. New business activity boomed during the pandemic, but new companies have notably fewer employees on average than pre-pandemic start-ups.
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DirecTV will compensate some subscribers after Disney pulled its cable channels from the provider’s lineup due to a contract dispute. Customers must apply for compensation.
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Tens of thousands of Boeing workers could strike this month if the company fails to reach a new deal with the International Association of Machinists union by mid-September.
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U.S. restaurants are increasingly offering amenities for solo diners, a growing trend worldwide and stateside.
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A nationwide hotel strike continues to grow as roughly 200 Baltimore hotel employees joined thousands of Hilton, Hyatt, and Marriott workers across the country who are striking.
Financial planner tip of the day
“Stock market investing can be more appropriate for big goals in the distant future, such as saving for a child’s education or your own retirement, which could be 20 or 30 years down the line. This relatively long time horizon not only gives your investments a chance to grow, but it means that you also have the time to ride out market downturns that may occur along the way.”
Brian Walsh, CFP® at SoFi