THE WEEK ON WALL STREET
Expectation-beating Q2 results from several companies, trade updates, and investor optimism for more trade agreements pushed market averages to solid gains. The S&P 500 Index advanced 1.46 percent, while the Nasdaq Composite Index added 1.02 percent. The Dow Jones Industrial Average rose 1.26 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained 2.16 percent.
FACT OF THE WEEK
Many notable birthdays are on July 28th, including Earl Tupper, the inventor of Tupperware.
Tupperware is an American company that manufactures and internationally distributes preparation, storage, and serving containers for the kitchen and home. It was founded in 1942 by Earl Tupper, who developed his first bell-shaped container and introduced the products to the public in 1946.
As of 2007, it was sold by approximately 1.9 million direct salespeople on contract. In 2013, the top marketplace for Tupperware was Indonesia, topping Germany. Indonesia's sales in 2013 were more than $200 million.
MARKET MINUTE
Earnings, Trade Lift Markets
Stocks showed mixed results the first couple of days last week. Optimism around the Q2 corporate reporting season gave way to mostly positive market reaction as the actual corporate reports started to roll in. The S&P 500 edged ahead to two record closes despite pressure on chipmakers.
Trade negotiations took center stage midweek after the White House announced an agreement with Japan. Stocks extended the rally after news that the U.S. and European Union were approaching an agreement. The Nasdaq closed above 21,000 for the first time on Wednesday, while the S&P hit its 12th record close this year.
Stocks continued their climb after one megacap tech firm posted better-than-expected quarterly results. The S&P 500 logged record closing highs every session, while the Nasdaq closed at record highs on 4 of the 5 days.
A Tale of Two Houses, Times Two
When fresh housing data emerged this week, one number stood out: new homes are now nearly 8 percent cheaper than existing homes.
The median sales price of a new home in June was $401,800, compared with $435,300 for an existing home—an all-time high. Homebuilders have been reducing prices in an attempt to attract potential buyers.
But there’s another tale of two houses: national versus regional.
Existing home prices rose 2.7 percent last month over May. In the Northeast, where inventory is still constrained, prices rose 4.2 percent in June. However, the market is softening in many other regions of the country. In the South, for example, prices only rose 0.3 percent. Homes stay on the market for longer, and inventory rises, leading some to conclude that it’s a buyer’s market.
FINANCIAL STRATEGY OF THE WEEK
Managing Money as a Couple
When you marry or simply share a household with someone, your life changes—and your approach to managing your money may change as well. The good news is it’s usually not so difficult.
At some point, you will have to ask yourselves some money questions—questions that pertain not only to your shared finances but also to your individual finances. Waiting too long to ask (or answer) those questions might have some consequences.
First off, how do you propose setting priorities? One of your first priorities should be simply setting aside money that may help you build an emergency fund. But there are other questions to ask. Should you open joint accounts? How should you title assets that are owned by both of you?
How much will you spend & save? Budgeting can help you arrive at your answer. A simple budget, an elaborate budget, or any attempt at a budget can prove more informative than you realize. A thorough, line-item budget may seem a little over the top, but what you learn from it may be truly eye-opening.
How often will you check up on your financial progress? When finances affect two people rather than one, statements can become more important. Checking in on these details once a month (or at least once a quarter) may keep you both informed, so that neither one of you has misconceptions about household finances or assets. Arguments can be avoided when money misunderstandings are resolved through check-ups.
What degree of independence do you want to maintain? Do you want to keep some money separate? Some spouses need individual financial “space” of their own. There is nothing wrong with this approach.
Can you be businesslike about your finances? Spouses who are inattentive or nonchalant about financial matters may encounter more financial trouble than they anticipate. So watch where your money goes, and think about ways to pay yourself first. Set shared short-term, medium-term, and long-term objectives.
Communication is key to all this. Watching your progress together may well have benefits beyond the financial, so a regular conversation should be a goal.