Tuesday,
October 17, 2023
Market recap
Dow Jones
33,984.54
+314.25 (+0.93%)
S&P 500
4,373.63
+45.85 (+1.06%)
Nasdaq
13,567.98
+160.75 (+1.20%)
Top Story
What do Americans dream of? A new SoFi survey sheds light on aspirations, and what weâre willing to sacrifice to achieve them.
⢠Charles Schwab kicked off the week, reporting double-digit year-over-year declines in revenue, deposits, and earnings, but surpassing profit expectations, pushing its shares 4.7% higher.
⢠Rite Aid filed for Chapter 11 bankruptcy as slowing sales and a series of opioid-related lawsuits threaten its financial standing. Over the weekend, the company appointed Jeffrey Stein as its new CEO to help it navigate the ongoing restructuring and sale of part of the business.
⢠Pfizer cut its full-year earnings and revenue forecast due to declining demand for its COVID-19 products. The company also announced a $3.5 billion cost-cutting plan. Its shares were up 3.6% in response.
⢠Lululemon is set to join the S&P 500 tomorrow, replacing Activision Blizzard following its acquisition by Microsoft. Company shares climbed 10.3% to a 52-week high.
⢠All eyes will be on the retail sales data for September, following 0.6% sales growth in August, which hinted at continued consumer spending despite mounting costs.
⢠Weâll also get earnings reports from Bank of America, Goldman Sachs, and Johnson & Johnson.
Tackling multiple debts can be overwhelming, but there are different approaches to help make the process as smooth as possible.
Yesterday we talked about the avalanche method that concentrates on paying down debts based on interest rates (cheat sheet: start with the highest and then work your way down).
But the path to debt free can be a long one, and getting a little gratification along the way can help you stay motivated.
Enter the snowball method.
Do you want to build a snowball
In this method you rank all your debts based on the balance and focus on paying off the smallest debt first. You continue to make the minimum payments on all your other debts, but any extra money goes toward paying off the smallest debt.
Once the smallest debt is down to zero, you roll that payment money into the minimum payment of the next smallest debt and continue the process. Thatâs how you build your snowball.
Small wins, big boost
If youâre carrying a big debt burden, slowly chipping away at it can feel demotivating, but seeing a âzeroâ on your balance can give you the boost to continue.
Other news that caught our eye
Ford is recalling more than 238,000 Explorers due to a driveshaft issue, which can result in a loss of drive power or a rollaway if the parking brake isnât used. Notification letters to owners of 2020 to 2022 models will be mailed in early November, and repairs performed free of charge.
Novo Nordisk agreed to buy a hyperextension drug from KBP Biosciences for $1.3 billion. This is part of the Ozempic makerâs plan to expand into treatments for other chronic diseases.
Taylor Swiftâs âThe Eras Tourâ movie grossed $95 million-$97 million in the U.S. and Canada, the highest opening weekend ever for a concert film in North America.
LinkedIn is laying off 700 employees across its engineering, product, talent, and finance teams. This new round of layoffs will add to parent company Microsoftâs 10,000 job cuts announced in January and the more than 700 layoffs at LinkedIn in May.
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 â and that motivation could help you keep your debt payoff plan on track."
Brian Walsh, CFPÂŽ at SoFi