Good morning investors! Stocks snapped 8-day winning streak yesterday but things aren’t looking too bad.

Today we cover:

• Don’t worry about Mpox

• Boeing in trouble

• Netflix hits a sixer

📊 Economy and News 

Mpox is ‘not the new Covid’

The World Health Organization stated on Tuesday that the mpox outbreak is not comparable to COVID-19 because the virus is already well understood, and there are established methods for controlling it.

Although further study is required on the Clade 1b strain, which led the United Nations agency to declare a public health emergency of international concern (PHEIC), WHO's European director Hans Kluge emphasized that the spread of mpox can be contained.

Global hits:

• European Union slashes planned tariffs on China-made Tesla EVs, other Chinese firms

• Alaska Airlines and Hawaiian Airlines merger clears Justice Department hurdle, now faces DOT.

• Hosting the Olympics has become financially untenable, economists say.

Also check: Wells Fargo is set to sell the majority of its commercial mortgage servicing business to global loan services provider Trimont.

📈 Stocks

S&P 500 5,597.12 (-0.20%)
DJIA 40,834.97 (-0.15%)
NASDAQ 17,816.94 (-0.33%)
BRENT CRUDE 77.13 (-0.58%)
* Prices as of Aug 21st, 12:20 AM UTC

More trouble for Boeing

Boeing has temporarily halted flight tests of its 777X after discovering damage to a structure in one of the wide-body planes.

The damage, found in a custom component located between the engine and the aircraft structure, was detected during routine maintenance. As a result, the company has grounded the three other 777-9 planes in its test fleet. Boeing noted that no additional flight tests were planned for the other aircraft at this time.

It wasn’t immediately clear whether the grounding and issue would impact certification and delivery of the new wide-body jetliners, which are slated for 2025, about five years behind schedule. Boeing began flight tests of the aircraft with the FAA in July, a major milestone.

The news, reported earlier by The Air Current, comes as Boeing’s leaders, including new CEO Kelly Ortberg, are trying to move the company past a safety crisis that started with a door plug blowout at the start of the year.

The news sent the stock down about -5%.

Good news: We’re bringing you some good news from major companies. Eli Lilly’s weight loss drug slashes the risk of developing diabetes in long-term trial. On the other hand, GMC expects to outsell its electric truck competitors as it launches new Sierra pickup.

Warning: The S&P 500 will trade near current record levels at year-end, according to a Reuters poll of market strategists that suggests the AI rally is losing steam as investors wait for a widely-expected U.S. central bank interest rate cut next month..

💵 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.

💰 Be a Better Investor

Resources:

• Retirement Calculator

• Make Money in Retirement

• Side Hustle Ideas

• Stock Deep Dives

• Investing 101 videos

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

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