Thursday,
October 12, 2023
Market recap
Dow Jones
33,804.87
+65.57 (+0.19%)
S&P 500
4,376.95
+18.71 (+0.43%)
Nasdaq
13,659.68
+96.83 (+0.71%)
Top Story
Why now could be a good time to book your next flight
The post-pandemic demand is changing, and budget airlines have started cutting prices for domestic tickets.
US stocks rose on Wednesday as Wall Street digested the minutes of the last Fed meeting, another decline in Treasury yields, and a hotter-than-expected wholesale inflation report
• Wholesale inflation rose 0.5% in September, more than expected, and largely driven by a sharp increase in energy costs.
• The minutes from the last Fed meeting showed officials had varied opinions on the necessity of further interest rate hikes.
• The 30-year fixed-rate mortgage climbed to 7.67% in the first week of October, the highest since November 2000.
• ExxonMobil wants to buy Pioneer Natural Resources, which would double Exxon’s production in the Permian Basin, America’s largest oil-producing basin. But the near $60 billion deal could face antitrust probes along the way. Exxon shares finished more than 4% lower.
• Luxury goods conglomerate LVMH (LVMUY) saw its share fall 6.5% after reporting slower revenue growth. The parent company of champagne brand Möet & Chandon and luxury label Louis Vuitton cited declining U.S. wine and spirits sales and reduced Chinese demand.
• Birkenstock made its debut on Wall Street, IPOing at $46 per share, and valuing the company at roughly $8.6 billion. The stock ended its first trading day nearly 13% lower at $40.20.
What to be on the lookout for today
• We’re awaiting September consumer price inflation numbers. In August, prices of consumer goods rose 0.6% month-over-month. The annual rate rose to 3.7%, the second-straight increase.
Liz Looks at: Surprises
The world, and markets, were shook by the escalation of the Middle East conflict over the weekend. War, and any events with a humanitarian toll make talking about trading seem trivial, but as long as markets remain open the volatility continues.
Today’s top stories
Lower appetite for Treasurys could spell trouble ahead The U.S. bond market is seeing decreasing activity from its heaviest hitters, the Federal Reserve and China. Here’s what that means. Read more >> Here’s why downsizing might not save you money Empty nesters beware: With high home prices and interest rates, downsizing today isn’t what it used to be. Read more >> This is how inflation affects your student loans Prices remain high in America but it doesn’t affect all types of student loans in the same way. Here’s what you need to know. Read more >>Other news that caught our eye
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Disney raised the price of its theme park tickets to $194 for its most popular days, a more than 8% increase. Five-day tickets will cost almost 16% more at $480.
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A new electric vehicle plant is coming to Kokomo, Indiana. Stellantis and Samsung SDI will invest $3.2 billion on the new facility. Automakers also continue to negotiate with the UAW union, which considers EV jobs as crucial long-term.
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Alaska Airlines created a custom coffee blend immune to the effects of altitude changes, which can make coffee taste bitter and weak. The new blend will be available on all Alaska Airlines flights starting December 1.
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The current Powerball jackpot is the second largest in the lottery’s history after climbing to $1.73 billion, a tremendous increase from 1987, when the lottery was capped at $80 million.
Financial planner tip of the day
"With investing there is a relationship between risk and return. Investments with higher expected returns come with substantial volatility along the way. It is important to consider your ability to ride through the volatile times and not just focus on potential returns."
Brian Walsh, CFP® at SoFi