Morning Download 

Personal finance + economics + markets

Good morning investors! We will keep an eye on earnings this week and wait for economic data, including the job report.

🇳🇱 Fun fact: The New York Stock Exchange (NYSE) has a tradition known as the "Dutch Auction." This tradition dates back to the early 17th century when Dutch traders would gather to buy and sell shares of the Dutch East India Company. In a Dutch Auction, the stock's price starts high and decreases until there's a buyer.

Today we cover:

• Consumers continue to spend despite inflation.

• Apple to host another event: new computer on the way?

• Use health savings accounts to pay insurance premiums.

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📊 Economy and News 

Inflation isn’t improving but consumers are spending

The Federal Reserve’s preferred inflation gauge cooled slightly last month but still isn't great.

Excluding gas and food prices, the core Personal Consumption Expenditures index rose 3.7% for the 12 months ended in September, down from the 3.8% rate seen in August. It, however, is still higher than the Fed’s target of 2%.

On the plus side, this was the smallest year-over-year increase since the 3.2% annual rate seen in May 2021. On a monthly basis, it rose 0.3% from the 0.1% rate seen in August. The overall index remained unchanged on a monthly basis standing at 0.4%.

Consumers are spending: Consumers are still spending like there’s no tomorrow. Expenditure jumped 0.7% in September from the 0.4% increase in August.

In fact, consumer spending increased by an annualized rate of 4% according to the GDP report. On the other hand, income isn't growing at the same rate - 0.3% from 0.4% in August. This indicates consumers are using savings or credit cards to make purchases.

What about the hike? Experts believe there isn’t enough data to warrant a hike but all eyes are now at the next Fed meeting in November.

Global hits:

• Some pharmacy staff from Walgreens, and other chains are walking out again.

• Retailers are using theft to mask other issues.

• Small businesses to benefit from new procurement regulations in the UK.

📈 Stocks

S&P 500 4,117 (-0.48%)
DJIA 32,417.59 (-1.12%)
NASDAQ 14,180.42 (0.50%)
BRENT CRUDE 90.46 (2.45%)
* Prices as of Oct 30th, 12:20 AM UTC

Prepare for Apple’s ‘scary fast’ event

Apple is set to host an online-only event today at 8:00 p.m. ET/5:00 p.m. PT. This is the company's second product event of the season, coming a few weeks after the launch of the new iPhone.

The tagline — “scary fast” — is a nod to the Halloween season and Apple’s next-generation silicon chip, M3.

What to expect? The company hasn’t officially announced what to expect, but we might see the new iMac computers with the new chipset. This might help push sales, which have been struggling for a while. In addition, Apple may introduce new accessories as the company moves to a USB-C universal charging system.

In the second quarter of 2023, Apple computers made up about 8% of the global market share but saw 10% year-over-year growth.

Earnings: The company is set to report earnings on 11/02/2023 after market close. The consensus EPS forecast for the quarter is $1.39. The reported EPS for the same quarter last year was $1.29.

🔐 Crypto

Bitcoin $34,604.10 (1.45%)
Ethereum $1,791.37 (0.85%)
Total market cap $1.27T (1.11%)
* Prices as of Oct 30th, 12:20 AM UTC

Bitcoin now as big as Tesla

Bitcoin is struggling to cross the $35,000 mark again after staying around $30,000 for about a year. Recent global turmoil and the prospect of a Bitcoin EFT have helped put up its value recently.

The asset, in the past, has shown a strong correlation with U.S. equity markets, but now appears to be decoupling. The largest cryptocurrency has almost doubled in the last 12 months but is far from the all-time high of nearly $70,000.

Bitcoin’s market capitalization now stands at about $670 billion, slightly above Tesla’s 649.57 billion.

💵 Personal Finance

How to use health savings accounts to pay insurance premiums

Health savings accounts (HSAs) come with several tax advantages. Most people use them to cover medical emergencies, but they are best used to cover insurance premiums.

Let’s dig more:

What’s included?

According to the IRS, costs that generally qualify for the medical and dental expenses tax deduction are included such as:

• Costs to receive artificial limbs

• Birth control pills

• Lead-based paint removal

• Fees for attending medical conferences

But, insurance premiums do not quality. 😔 

So, why are we asking you to use health savings accounts to pay insurance premiums? Because it is possible thanks to some exceptions:

Medicare premiums

Medicare premiums for people age 65 and older do qualify, including:

• Premiums for hospital insurance

• Premiums for medical insurance

• Premiums for drug coverage

However, premiums for Medicare supplemental health policies are not included.

Surprise: You do not have to pay your premiums directly with an HSA to enjoy the benefit. You will have the option to use other means to pay and then reimburse yourself with your HSA later. You will, however, need to keep all records.

Reminder: Medicare premiums for a spouse or a dependent only qualify if the HSA owner is 65 or older.

Health-care continuation coverage premiums

Premiums for health-care continuation coverage such as COBRA do qualify.

COBRA is for people who have no health benefits due to situations such as job loss or divorce. It offers good benefits but at a very high price.

How high? COBRA requires individuals to cover the full premium, which goes up to 102% of the cost of the plan.

Premiums when unemployed

You can use HSAs to pay health premiums if you are unemployed. Examples include health plans purchased over an Affordable Care Act marketplace or COBRA.

Long-term health premiums

Individuals who require long-term care can use HSAs to cover relevant insurance premiums. There, however, are some limitations based on age:

• Age 40 or under — up to $450

• Age 41 to 50 — $850

• Age 51 to 60 — $1,690

• Age 61 to 70 — $4,510

• Age 71 or over—$5,640

These figures are updated every year, check the official website for the latest amounts.

Still not sure about HSAs? Check this video:

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