Good morning investors! Happy New Year!
Today we cover:
Minimum wage raised
Google is a winner
Managing divorce
📊 Economy and News
19 States Raise Minimum Wages in 2026: Hawaii Sees Biggest Increase of $2 Per Hour
Millions of U.S. workers are starting the new year with higher paychecks as minimum wage increases took effect in 19 states on January 1, 2026.
These hikes will benefit over 8.3 million workers, adding an estimated $5 billion in additional wages across the country.
In addition to state-level changes, numerous cities and localities are also raising their minimum wages. For instance, some areas in Washington state, like Tukwila, will see rates exceed $21 per hour, while others in California will reach higher local floors.
Hawaii workers will receive the largest boost, with the state minimum wage jumping $2 to $16 per hour. Washington state will have the highest statewide rate at $17.13 per hour.
The federal minimum wage remains unchanged at $7.25 per hour, a level it has held since 2009. As a result, minimum wages now vary significantly by location, with many states and cities far exceeding the federal standard.
State Minimum Wage Increases Effective January 1, 2026
Arizona: $15.15 (up from previous rate); Tipped: $12.15
California: $16.90
Colorado: $15.16; Tipped: $12.14
Connecticut: $16.94; Tipped: $6.38 (unchanged in some categories)
Hawaii: $16.00 (up $2); Tipped: $14.75
Maine: $15.10; Tipped: $7.55
Michigan: $13.73; Tipped: $5.49
Minnesota: $11.41 (varies by employer size)
Missouri: $15.00; Tipped: $7.50
Montana: $10.85
Nebraska: $15.00
New Jersey: $15.92; Tipped: $6.05
New York:
New York City, Long Island, Westchester: $17.00; Tipped: $11.35
Rest of state: $16.00; Tipped: $10.65
Ohio: $11.00; Tipped: $5.50
Rhode Island: $16.00; Tipped: $3.89 (unchanged)
South Dakota: $11.85; Tipped: $5.93
Vermont: $14.42; Tipped: $7.21
Virginia: $12.77; Tipped: $2.13 (unchanged)
Washington: $17.13
Global hits:
Italy says US has sharply cut proposed pasta tariffs after a review.
Portuguese inflation holds steady at 2.2% in December.
Singapore’s economy grows 4.8% in 2025, exceeding expectations.
Check this: Trump administration tightens US childcare reporting requirements.
Reminder: U.S. home prices are becoming slightly more affordable as mortgage rates have declined to around 6.19% on the 30-year fixed (down from over 7% earlier in the year), national prices are essentially flat year-over-year (up just 0.3%), and active listings are 12% higher than last year, providing more supply and choices for buyers. These factors have lowered monthly payments—saving about $200 on a median-priced home compared to a year ago—and contributed to stronger pending home sales in November, reaching the highest level in nearly three years. However, saving for a down payment remains the biggest obstacle, with the typical buyer now needing seven years to afford one (down from a 2022 peak of 12 years but still double pre-pandemic levels), contributing to homeownership rates dropping to their lowest since 2019.
Jobless claims: U.S. initial jobless claims unexpectedly fell by 16,000 to a seasonally adjusted 199,000 in the week ending December 27, 2025—the lowest in a month—despite forecasts of a rise to 220,000 and recent holiday-season volatility in data adjustments. Continuing claims dropped 47,000 to 1.866 million, easing from recent highs after a prolonged federal government shutdown ended.
📈 Stocks
S&P 500 6 845,50 (-0.75%)
DJIA 48 063,29 (-1.63%)
NASDAQ 23 241,99 (-0.76%)
BRENT CRUDE 60.94 (-0.07%)
* Prices as of Jan 2nd, 12:20 AM UTC
Google Caps Best Year on Wall Street Since 2009 with AI Momentum
Alphabet's stock surged 65% in 2025, marking its strongest annual gain since doubling in 2009 post-financial crisis. This outperformed other trillion-dollar tech giants, with Broadcom up 49% and Nvidia up 39%.
After a rough start—with an 18% Q1 drop amid AI disruption fears from rivals like OpenAI—Google rebounded sharply. Shares hit a 2025 low in April but rose over 100% since.
Key drivers included:
Viral AI launches → such as the Gemini app's Nano Banana image generator (debuted August, generated over 5 billion images by September, briefly topping Apple's App Store).
Talent acquisition → from AI startup Windsurf ($2.4 billion deal).
Gemini upgrades → including Gemini 3, closing the gap on ChatGPT (Gemini's generative AI traffic share rose to ~18% from 5%).
A favorable September antitrust ruling by Judge Amit Mehta avoided severe penalties like divesting Chrome, while preserving key deals (with data-sharing requirements).
Analysts highlight AI Overviews boosting search engagement, strong Google Cloud growth, and Waymo leadership as 2026 catalysts. Q4 revenue is projected at over $111 billion (15% growth), with high capex reflecting AI demand.
Despite elevated expectations, bullish notes (e.g., Citizens, Pivotal) see further upside if AI execution continues.
Interesting: Stellantis resurrects $100,000 Ram TRX V-8 pickup truck amid industry deregulation.
Elsewhere, Yum Brands’ India partners Sapphire, Devyani to merge, creating fast-food franchisee giant.
💵 Personal Finance
Preparing Financially for a Possible Divorce
Many couples contemplating divorce choose to wait until after the holidays, leading to a surge in filings and consultations starting in January and peaking around March.
To reduce financial stress and avoid costly surprises, experts recommend taking proactive steps now.
First, research your state’s divorce laws, including grounds for divorce, separation requirements, and asset division rules—consider consulting a local attorney for personalized insights, especially regarding any prenuptial agreement.
Second, understand the implications of separation: a trial separation preserves joint financial rights, while a permanent one typically ends them on the date of separation; document any trial period clearly.
Third, compile key financial documents digitally, such as bank statements, tax returns, retirement accounts, debts, and insurance policies, to streamline the process and cut professional fees.
Fourth, create a realistic post-divorce budget accounting for two households, potentially with help from a financial advisor.
Finally, avoid major financial moves like transferring large sums or incurring new debt without advice, and set up a separate email for divorce-related communications to keep everything organized and private.
These preparations can empower better decision-making and protect your interests if the marriage ends.
💰 Be a Better Investor
“Debt is one person's liability, but another person's asset.”
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