THE WEEK ON WALL STREET
Stocks were mixed last week, battling through tariff talk while responding to upbeat quarterly corporate reports and a trove of updates on the economy. The S&P 500 Index rose 0.59 percent, while the Nasdaq Composite Index added 1.51 percent. The Dow Jones Industrial Average decreased 0.07 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, skidded 0.46 percent.
FACT OF THE WEEK
On July 21, 1969, Apollo 11 astronauts Neil Armstrong and Edwin “Buzz” Aldrin blasted off from the moon aboard the ascent stage of the lunar module for docking with the command module.
Apollo 11 was a spaceflight conducted from July 16 to 24, 1969, by the United States and launched by NASA. It marked the first time that humans landed on the Moon. Commander Neil Armstrong and Lunar Module pilot Buzz Aldrin landed the Lunar Module Eagle on July 20, 1969, at 20:17 UTC, and Armstrong became the first person to step onto the Moon's surface six hours and 39 minutes later, on July 21 at 02:56 UTC.
MARKET MINUTE
Economic News
All three major market averages posted modest gains to start the week as investors appeared to shrug off tough talk on trade from the White House over the weekend. Stocks mostly fell after news that inflation warmed up a bit last month, albeit in line with economists’ expectations. A narrow, chip-led rally developed after a megacap chipmaker said it received assurances from the White House of its ability to sell products in China, pushing the Nasdaq modestly higher. Stocks continued their climb over the next session following news that consumer spending rebounded last month as trade talk slowed. The S&P 500 posted another record close amid several companies beating expectations as they reported quarterly financials. Markets went slightly lower on Friday despite news that consumer sentiment rose last month. The consumer sentiment report also showed a drop in concerns about tariff-induced inflation.
Splitting the Difference
Two themes developed with fresh economic data released last week: inflation and consumers. First, June inflation data painted a mixed picture. While consumer prices rose at a 2.7 percent annual clip last month (faster than May’s 2.4 percent rate), wholesale inflation was flat. So while retail prices were a concern, wholesale prices currently suggest a muted effect from tariffs. The second theme revolved around consumers, who continued to be a source of strength for the economy. Retail sales recovered in June, and while they were still lower than at year-end, consumer sentiment rose to its highest level since February.
FINANCIAL STRATEGY OF THE WEEK
Tips to Stop Wasting Money
Benjamin Franklin once said, “a penny saved is a penny earned.” One way to find the money to meet your spending or saving needs is to examine your current spending habits and consider eliminating money wasters.
Top Money Wasters
Bargain Shopping…and its Expensive Cousin, Impulse Buying:
Fire sales and impulse buying (such as products sold on infomercials) can be money wasters, made worse by how often they sit idly in a closet or drawer.
Unused Subscription Services:
It can be tempting to sign up for the “free trials” many subscription services offer, but don’t forget to cancel after your trial period is up. Forgotten subscription services can eat away at your wealth when you don't value the subscription anymore. For example, three $30-per-month subscriptions don't sound like much until you realize they total nearly $1,100 per year.
Cable and Cell:
Call your provider and see if it’s possible to negotiate a new rate. Cell providers, who face stiff competition, may be responsive. Cable companies may be less so, especially if they are a single provider, but you can review your package and make sure you are not paying for service you don’t want.
Paying for Water:
Switching from an essentially free product to one that may cost up to $1.50 a day or more is a real budget leak. Consider purchasing a reusable container and using that during the day.
Gourmet Coffee:
$4 or $5 a day may not seem like a lot of money, but when Americans step into a gourmet coffee shop, they may often buy more than just the coffee. Consider brewing your own. It can be ready before you leave for work, and it’ll save you the wait in the drive-through line!
Eating Out:
While dining out may be one of life’s pleasures, eating out is often less about socialization and more about convenience. Twice a week may not seem like much, but over time it can add up. Try tracking your dining-out expenses for a week. You may be shocked at how fast costs add up.