😔 Consumers are unhappy

and stocks are going up again

Good morning investors! We lost Jim Simons, one of the greatest investors, on Friday, but the world goes on.

Today we cover:

  • Consumers are losing confidence.

  • Dow is back in the running.

  • Something about financial plans.

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📊 Economy and News 

Consumer sentiment tumbles as inflation fears surge

A May survey studying consumer sentiment posted an initial reading of 67.4 for the month, down from 77.2 in April and well off the Dow Jones consensus call for 76. The move represented a one-month decline of 12.7%

The one-year inflation outlook jumped to 3.5%, up 0.3 percentage point from a month ago to the highest level since November 2023.

The report also showed that continuing claims, which run a week behind, increased to 1.78 million, up 17,000 from the previous week. The four-week moving average of claims, which helps smooth out weekly volatility in numbers, increased to 215,000, up 4,750 from the previous week.

Another report showed that Gen Z is getting hit hard by inflation. According to the report, those in their early 20s are earning less, have more debt and see higher delinquency rates than Millennials did at their age.

Global hits:

Check: Atlanta Fed President Raphael Bostic maintains an optimistic outlook regarding a potential rate cut this year, although the precise timing remains uncertain, given the ongoing strength in job growth.

Bostic suggests that a September initiation for reducing rates is possible, contingent upon sustained economic conditions. However, he emphasizes that any decision will prioritize prudent timing over the magnitude of rate adjustments..

Worrisome: Apple Store workers in Maryland vote to authorize strike.

📈 Stocks

S&P 500 5,222.68 (+0.16%)
DJIA 39,512.84 (+0.32%)
NASDAQ 18,161.18 (0.26+%)
BRENT CRUDE 82.22 (-1.08%)
* Prices as of May 13th, 12:20 AM UTC

Dow records best week of 2024

The Dow Jones Industrial Average rose on Friday, wrapping an eighth consecutive winning session and registering its best week of 2024.

The major averages also wrapped the week on a high note. The Dow posted a 2.16% gain for the period, its best week since December and its fourth positive week in a row.

The S&P 500 and the Nasdaq Composite both posted a third consecutive winning week, rising 1.85% and 1.14%, respectively.

Investors have been more optimistic lately after the Fed indicated the next move is unlikely to be a hike, pointing to a cap on interest rates that could be bullish for equities. Cooler labor data has also raised traders’ confidence in the outlook for this year.

However, markets will be put to the test next week when April’s consumer price index reading is released.

Interesting: Novavax shares spike over 100% on Sanofi deal to commercialize Covid vaccine, develop combination shots.

Ouch: Sam Altman’s nuclear energy company Oklo plunges 54% in NYSE debut.

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🔐 Crypto

Bitcoin $61,384 (-0.11%)
Ethereum $2,916 (-0.38%)
Total market cap $2.27T (-0.44%)
* Prices as of May 13th, 12:20 AM UTC

A look at crypto

Here’s the latest on crypto:

💵 Personal Finance

Change your financial plan as needed

Financial plans are not etched in stone and can and should be updated from time to time.

The economy is changing rapidly. Inflation persists, unemployment exists, and so do opportunities. The plan that you make today will mainly be based on today’s situation; however, things may be different tomorrow.

You might start making more money, i.e.: you may have more opportunities to save or invest.

You might lose your job and have less money to save, thus requiring changes to your financial plan.

You may choose to retire earlier due to personal choices or you may choose to save more money due to expected medical emergencies.

All these situations can occur to anyone, hence it’s important that your financial plan is not rigid and there’s scope to change things.

It might be a good idea to review your plan at least once a month to identify where you stand and whether or not you’re moving at your desired pace. Remember it is okay to make mistakes but you should try your best to avoid common financial planning mistakes.

Free apps like Mint can be used to track budgets, net worth and spending.

At times people are too ambitious when making a retirement plan. They aren’t always able to meet investment or savings goals. If that’s you, then don’t worry and have a critical look at your plan to determine what changes you can implement to achieve your goal. Also, have another look at your goals and ensure they are feasible.

💰 Be a Better Investor

“As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.”

Benjamin Graham

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👩🏽‍⚖️ Legal Stuff
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