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No Halloween without sugar(flation)
Spooky spending is expected to see record-breaking numbers, as rising candy prices might leave trick-or-treaters feeling terrified.
US stocks were mixed on Monday, after Treasury yields retreated from intraday highs above 5%
• Chevron shares dropped 3.7% as the company announced it agreed to buy energy company Hess for $53 billion to expand its oil footprint in the U.S. This follows competitor ExxonMobil’s pending $59.5 billion merger with Pioneer Natural Resources.
• Shares of Bank of Hawaii closed up 4.6% after the company beat earnings expectations.
What to be on the lookout for today
• It will be a busy day of earnings with several industry leaders set to report, including Coca-Cola, Spotify, and Microsoft.
• On the economic calendar, attention turns to the S&P Global PMI figures. The U.S. Composite PMI indicated stagnant business activity in September, hovering just above the 50 expansion-contraction threshold.
Student loan forbearance 101
You’ve graduated from college, and have entered the working world, student loans in tow.
If you can’t afford making your federal student loan payments, you have options.
Yesterday we talked about deferment, and today we’re going to explore forbearance. These options are similar in that forbearance puts a temporary halt on federal student loan payments for a set amount of time. But here’s the big difference: Loans in forbearance generally continue to accrue interest. That means interest is added to the total amount of money you have to repay on your loan.
Forbearance: who, what, and how
You will have to make a request for forbearance, usually by filling out a form with your student loan servicer.
Your loan servicer can decide to approve this request for a case of general forbearance (also called discretionary forbearance). Some of the reasons to allow a pause in payments may include financial hardship, a change in employment status, or hefty medical expenses.
Under certain circumstances, loan providers are required to offer forbearance. Some of the criteria include:
• your monthly federal loan repayment takes up 20%, or more, of your monthly gross income
• you’re working in a medical internship or residency program
• you’re in an AmeriCorps position, and received a national service award.
Today’s top stories
The IRS is taking on Turbotax The government’s new tax prep software should make it easier and cheaper for Americans to file taxes. But it is not without limitations. Read more >> Airport lounges are running out of space Demand for airport lounges is soaring. But they become less relaxing as they get more packed. Here’s what airlines are doing in response. Read more >> How gift aid and self help aid can help you pay for college College can be expensive, but there are many ways to pay for it, including gift aid, or grants, or self help aid, which usually comes in the form of work study programs. Here are the details you need to know. Read more >>Other news that caught our eye
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Kim Kardashian’s Skims is launching a clothing line for men. The brand is valued at $4 billion dollars as it takes on the multi-billion dollar men’s underwear market.
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The United Auto Workers union warned of more walkouts ahead if a new labor deal is not reached. On Friday, UAW President Shawn Fain said the Big Three automakers agreed to a 23% wage increase, but urged union members there was more to be won.
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Microsoft is investing $3.2 billion to expand Australia’s cloud computing and AI infrastructure. This is the software company’s largest investment in the country in four decades.
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Tesla received subpoenas over a range of issues, including battery range, personnel decisions, and potential personal benefits to CEO Elon Musk, as the Justice Department investigates the company.
Financial planner tip of the day
"Start researching scholarships early, because gathering the required documents and information to apply could take time and early deadlines are common for large awards."
Brian Walsh, CFP® at SoFi