Monday,
October 16, 2023
Market recap
Dow Jones
33,670.29
+39.15 (+0.12%)
S&P 500
4,327.78
-21.83 (-0.50%)
Nasdaq
13,407.23
-166.99 (-1.23%)
Top Story
Thank your parents for boosting the economy
Baby Boomers and their buying power may be buoying the American economy thanks to these factors.
US stocks were mixed on Friday as investors digested a slew of big bank earnings, higher inflation expectations, and a jump in oil prices
• Geopolitical tensions in the Middle East continue to escalate, weighing on the markets, while the U.S. imposed sanctions on two shipping companies carrying Russian crude and violating the $60 per barrel price cap. All this drove oil prices up nearly 5%, with Brent crude, the global oil benchmark, rising above $90 a barrel.
• Philadelphia Fed President Patrick Harker said he believes the Fed can hold rates “where they are.”
• Consumer sentiment dropped in October, according to preliminary findings from the University of Michigan’s survey of consumers, as people’s assessment of their personal finances soured and inflation expectations rose.
• Q3 earnings season kicked off in earnest with three of America’s biggest banks reporting. JPMorgan beat expectations with a 35% increase in profits and 21% rise in revenue, largely driven by interest income and lower than normal credit costs. JPMorgan shares closed up 1.5%. Earnings from Citigroup and Wells Fargo also topped expectations.
• Microsoft (MSFT) officially closed its $69 billion acquisition of Activision Blizzard, more than 20 months after the initial agreement. The deal adds the likes of Call of Duty, Overwatch, and World of Warcraft to Microsoft’s portfolio.
What to be on the lookout for today
• The week is starting on a quiet note. The spotlight will be on the NY Empire State Manufacturing Index.
• Charles Schwab (SCHW) will kick off earnings for the week.
Ways to get your debt under control
If viewing your monthly bills fills you with dread, it’s time to create a debt repayment plan.
There are several different tactics to paying down debt, and it’s important to find one that works for you so you stick with it.
We’ll be exploring a few this week, and first up: the avalanche method.
Figure out how much you owe and at what rate
No matter which debt payoff method you choose, the first step is to determine just how much you owe. Make a list of all your debts, their minimum payments and the interest rate associated with each one.
Take aim at the highest interest rate
Next, rank the debts from highest to lowest by interest rate. The avalanche method prioritizes paying off debts based on the interest rates. The higher the interest rate, the more you pay in the long run as interest accrues on the balance. Typically, paying off accounts that have the highest interest rate first will save you more money in the long run. So funnel any extra money on top of the monthly minimum payment into this account until it’s paid off.
Remember: Don’t ignore other debts, and continue to make the minimum payments on each bill. Once you’ve paid off the account with the highest interest rate, take the money that was going toward that bill and apply it to tackle the debt with the next highest interest rate. Continue the process, and while it could take some time, the goal is to become debt free.
Today’s top stories
What’s Ahead on Wall Street: Tesla’s crossroads As the EV market hits record sales, Tesla's market share is slipping. But with the highly anticipated Cybertruck launch this quarter, its coming earnings call may be a crossroads moment. Here’s what’s ahead on Wall Street this week. Read more >> The path to recycling is littered with confusion — but this nonprofit sees a solution With major consumer brands already on board, the Recycling Partnership aims to use QR codes to demystify and streamline the recycling process for consumers. Read more >> Debt buyers and debt collectors explained If you’re struggling with debt, it’s important to understand the parties you might encounter. Here’s what you need to know about debt buyers and debt collectors. Read more >>Other news that caught our eye
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Ozempic saves the day for Novo Nordisk: The company hiked its full-year outlook for sales and operating profit due to increased demand for its weight-loss drugs. Wegovy and Ozempic have helped the Danish drugmaker become Europe’s most valuable company.
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Microsoft officially closed its $69 billion acquisition of Activision Blizzard, more than 20 months after the initial agreement. The deal adds the likes of Call of Duty, Overwatch, and World of Warcraft to Microsoft’s portfolio.
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Kaiser Permanente reached a new deal with its employees, following a historically large healthcare strike.
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The Biden Administration is betting big on hydrogen fuel. The White House is awarding $7 billion worth of contracts to support the production and development of hydrogen as a replacement for fossil fuels.
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Ford said it is “at the limit” in terms of the labor deal it can offer to union workers, saying going further could hurt its ability to invest in its business.
Financial planner tip of the day
"One of the ways that can help pay off debt expeditiously is to focus on only one debt at a time. If you spread your money out over all of your debt payments, you might not see progress as fast as you want. By focusing on one goal at a time, you may see success sooner—and that motivation could help you keep your debt payoff plan on track."
Brian Walsh, CFP® at SoFi