😮 Retail sales drop

Good morning investors! Escalating global issues and weak economy data turned the market red yesterday. Today, a lot depends on the fed’s decision but a rate cut isn’t expected.

Today we cover:

Sponsor: If you have $250k to $3M+ of investable assets, you could benefit from hiring a financial advisor.

Our partner, Money Pickle, makes it easy to match and meet a vetted advisor based on your goals. Financial advisors can help with: Tax strategies, optimizing investments, planning ahead for retirement, college planning for children, and more.

📊 Economy and News

US retail sales fell 0.9% in May, the largest drop in four months, driven by a 3.5% decline in auto and parts purchases and lower receipts at service stations due to falling gasoline prices. Economists had forecast a 0.7% decrease.

Despite the drop, consumer spending is supported by wage growth, though tariffs and a slowing labor market raise concerns.

Core retail sales rose 0.4%, suggesting modest consumer spending growth this quarter. The Atlanta Fed forecasts a 3.8% GDP rebound, but risks like tariffs and stock market volatility could impact future spending.

However, tariffs are estimated to have raised $156.4 billion in federal tax revenues in 2025, equivalent to 0.51% of U.S. GDP.

Losing confidence: Homebuilder confidence dropped 2 points to 32 in June, according to the NAHB/Wells Fargo Index. Readings below 50 signal market pessimism.

Sponsored by Financial Media Corp

Want to know when to consider trading stocks like Apple and Walmart? These Stock Hotsheets use 10 years of historical data to uncover key dates and trends—helping you trade with confidence

📈 Stocks

S&P 500 5,982.72 (-0.84%)
DJIA 42,215.80 (-0.70%)
NASDAQ 19,521.09 (-0.91%)
BRENT CRUDE 13 (-%)
* Prices as of June 17th, 4:30 PM EDT

JetBlue Airways is implementing cost-cutting measures, including reducing flights and winding down underperforming routes, as soft travel demand and higher operating costs from grounded aircraft make a breakeven operating margin in 2025 unlikely, according to a memo from CEO Joanna Geraghty.

The carrier is looking at further reducing off-peak flying, and unprofitable routes as well as combining some leadership roles.

Some initiatives remain in place, like deliveries of new aircraft and a new domestic first-class cabin.

The carrier has been looking for ways to increase revenue a year after a failed acquisition of Spirit Airlines, and last month it announced a new partnership with United Airlines.

This news sent JetBlue down -3% as other airline stocks also fell. The industry faces challenges from tariffs, fanning economic uncertainty. In fact, The latest Consumer Price Index report showed air fares were down a whopping 7.3% last month from a year ago, following a 7.9% decline in April.

We know that fewer passengers traveled through US airports in the past 90 days than in the same period last year, as air traffic declined for the first time since the height of the Covid-19 pandemic.

US consumers across all income levels cut their spending on lodging and airlines in the year to May, compared with the same period in 2024.

The decline is a further blow to the US tourism industry, which is reeling from sharp drops in visitors from Canada and Europe amid political and economic tensions.

Canadian air travel to the US fell almost a quarter in May compared with the same month in 2024.

Surprising: Meta to release smart glasses with Oakley and Prada, extending Luxottica partnership. Elsewhere, Trump to extend TikTok deadline for third time, pushing decision out another 90 days.

💵 Personal Finance

Fidelity’s latest data, covering over 24 million 401(k) accounts through March 31, shows the average 401(k) balance for this age group as:

These balances reflect a roughly 3% decline in Q1, matching the overall trend across age groups, and slightly outperforming the S&P 500’s 4.6% drop in the same period. The average 401(k) balance across all ages now stands at $127,100.

Still, contributions remain strong. While Fidelity doesn’t break down contribution rates by exact age, generational data shows that:

How Savings Compare to Retirement Targets

Fidelity suggests having 3× your salary saved by age 40 and 6× by age 50. With a median salary of $70,000, that translates to a target of $210,000 to $420,000 — notably higher than the current averages.

That said, these targets include total retirement savings, not just 401(k) balances. Many savers also have IRAs, brokerage accounts, or other assets.

Mid-career is often a catch-up phase, with higher incomes enabling increased contributions. Encouragingly, most workers haven’t paused their efforts: only 4.9% have reduced their contributions this year, and fewer than 1% have stopped entirely.

Catching Up on Retirement Savings

If you're behind, there’s still time to catch up. For example, starting at age 40 with $105,900, contributing $100 monthly, and earning a 7% annual return, you could end up with around $793,000 by age 67 — exceeding Fidelity’s 10× salary benchmark.

Those with less saved can make progress by increasing contributions steadily. Many retirement plans offer tools like auto-escalation to make this easier.

We found this YouTube channel from a guy who retired on $500,000 and shares all of his challenges and techniques, you might find it interesting. Check it out.

💰 Be a Better Investor

Think you know stocks?

Pro puts your instincts to the test with our Bull vs Bear AI stock advisor. Plus: exclusive deep dives, smarter tools, and zero fluff. 

👊 Try Pro Now

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

Want to reach about 100,000 investors? Advertise with Morning Download.