Good morning investors! Dow tumbled 570 points yesterday to wrap up the worst month since September 2022 as earnings continued to flow.

Today we cover:

• US home prices are rising.

• Amazon and others announce earnings.

• Learn to retire.

📊 Economy and News 

US home prices rose in February at the fastest pace in more than a year

Home prices in February jumped 6.4% year over year.

It marked another increase after the prior month’s annual gain of 6%, and the fastest rate of price growth since November 2022.

Prices in San Diego saw the biggest rise among the 20 cities in the index, up 11.4% from February of 2023. Both Chicago and Detroit reported 8.9% annual increases.

Global hits:

• Euro zone inflation steady at 2.4%, keeping June rate cut in play as economy returns to growth.

• European stocks end April down 1.49%, posting first negative month since October.

• IMF chief warns of emerging market risk with high U.S. interest rates.

Also check: Eight newspaper publishers sue Microsoft and OpenAI over copyright infringement.

📈 Stocks

S&P 500 5,035.69 (-1.57%)
DJIA 37,815.92 (-1.49%)
NASDAQ 17,440.69 (-1.92%)
BRENT CRUDE 87.54 (-0.61%)
* Prices as of May 1st, 12:20 AM UTC

Amazon and more announce earnings

Amazon shares rose in extended trading after the company reported better-than-expected revenue and earnings.

It recorded a 17% spike in Amazon Web Services revenue, to $25 billion.

Similarly, advertising revenue grew 24% in the first quarter, outpacing retail and cloud computing.

Amazon Web Services also reported results that topped estimates.

More earnings:

• McDonald’s fell short of quarterly earnings estimates due to lower-than-expected same-store sales. Once again, boycotts related to the conflict in Gaza negatively impacted the chain’s sales in the Middle East. While higher prices have boosted McDonald’s revenue, they have also deterred some low-income customers.

• Samsung, the South Korean electronics giant, revealed a substantial increase in its net profit in Q1 2024 on Tuesday. This surge is attributed to the growing demand for hardware to support artificial intelligence (AI) technologies, which is driving a boom in its memory chip business.

• Starbucks failed to meet Wall Street's expectations for its quarterly earnings and revenue. The company's same-store sales dropped by 4%, with a 6% decline in cafe traffic during the quarter.

Good to know: Trump Media shares rise again; are up 50% in the last week.

🔐 Retirement

Learn to retire: free webinar presentation

MorningDownload presents How to Retire webinar on Thursday, May 2 2024 at 8:00 PM.

Hosted by our CEO, Trajan King, the webinar will cover the following:

• Blueprint Your Future

  Determining your retirement income needs and setting realistic financial goals.

• Retirement Accounts Unveiled

  Understanding the different retirement account options (401(k), IRA, pensions, etc.) and how to maximize contributions.

• Invest Smart

  Strategies for investing and growing your retirement savings, including asset allocation and risk management.

• Social Security & Medicare Mastery

  Navigating Social Security benefits and Medicare coverage to supplement your income.

• Financial Health In Retirement

  Tips for reducing debt, minimizing taxes, and protecting your assets in retirement.

There are limited seats so join now.

💵 Personal Finance

How much should you spend on food?

Food is an important part of our budget. Most people spent 11.3 percent of their disposable personal income on food last year and the number is expected to increase this year due to rising inflation.

So, how much should you spend on food? According to the Consumer Price Index, the average cost of eating food at home rose 11.4% in 2022 versus 2021. Things have only worsened this year with the index climbing 3.7% from September 2022 to September 2023.

Things are bad globally. A Michelin-starred restaurant in Belfast, Northern Ireland, is closing due to costs becoming too expensive – for both customers and the restaurant operators. 🔪 

See what the USDA tells

The USDA offers guidelines to help families set their monthly grocery budgets. Here’s what it suggests for a family of four: 🥦 

• Liberal budget: Expect to spend $365.20 a week or $1,582.90 a month.

• Moderate-cost plan: Expect to spend $302.80 a week or $1,311.50 a month.

• Low-cost plan: Expect to spend $243.80 a week or about $1,055.80 a month.

• Thrifty plan: Expect to spend $225.10 a week or $975.20 a month.

This can help you figure out how much to spend based on you and your family’s eating habits. These figures show that it is possible for a family of four to survive with less than $1,000 (groceries). However, each family is different and there are several factors that can impact your budget, including:

• The age of your children. Teenagers tend to eat more. A moderate budget for a teenage boy between ages 14 and 18 would be $87.90 in groceries a week for a moderate budget. For comparison’s sake, a child who is 9 to 11 years old, according to the USDA's moderate budget, would eat $76.30 in food every week.

• Men eat more than women, so if you have two boys then your budget may be higher. For example, the FDA says that it costs $70 a week to feed a teenage girl between the ages of 14 and 18, $17.90 less a week than for a teenage boy.

Any other ideas?

You can also use the 50/30/20 rule to budget for groceries. Here’s what it says:

• Spend 50% of your monthly after-tax income on needs, 30% on wants and 20% on savings and debt repayment.

Groceries are a necessity but some food items are a want. For example, rice is a necessity but sushi from your favorite restaurant isn’t. So, you will have to plan carefully.

Now, sticking to the 50/30/20 rule means breaking your salary (let’s say you make $3,000) according to the formula:

• $1,500 for needs

• $900 for wants

• $600 for savings and debt repayment

Now, the entire amount ($1,500) is not for groceries. How much to spend on groceries depends on factors such as your other needs. Let’s say you only have $300 left after spending on rent and utilities (other needs).

Now, $300 may not be enough to cover a month’s groceries. In this situation, you can take additional money from your “wants” budget while working to improve your financial situation.

If you are going out of budget then check this video for tips on how to save money on groceries:

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

Advertise with Us