🎈 Nasdaq over 17,000

and look at the US economy

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Good morning investors! U.S. stocks had a mixed day again, without any major news.

Today we cover:

  • A look at the economy

  • Nasdaq hits a new high

  • Why use cash

📊 Economy and News 

What the economy says

U.S. consumer confidence bounced back above 100 in May, rising for the first time in four months, thanks to a strong labor market boosting consumers’ outlook on current and future conditions.

The Case-Shiller home price index showed a 6.50% year-over-year increase in March, likely due to easing mortgage rates and a tight housing supply. San Diego led the way with the highest year-over-year increase, jumping 11.10%, while the Northeast region also saw strong growth.

Lastly, the Dallas Fed manufacturing survey showed a slight decline in May, adding to the sector’s uncertainty. Meanwhile, Federal Reserve Bank of Minneapolis President Neel Kashkari warned of potential “big losses” in commercial real estate and mentioned that more rate hikes can't be fully ruled out yet.

Global hits:

Interesting: Argentina markets dip as globetrotter Milei shakes up Cabinet. On the other hand, activist Elliott has taken a $2.5 billion stake in Texas Instruments, urges company to improve free cash flow

📈 Stocks

S&P 500 5,306.04 (+0.025%)
DJIA 38,852.86 (-0.55%)
NASDAQ 18,869.4, (+0.32%)
BRENT CRUDE 84.88 (+0.82%)
* Prices as of May 29th, 12:20 AM UTC

Nasdaq hits another high, closes above 17,000 for the first time

The Nasdaq Composite reached a new record high on Tuesday, thanks to Nvidia's strong performance, which lifted the tech-heavy index on an otherwise slow trading day.

The Nasdaq rose by 0.59% to close at 17,019.88, surpassing the 17,000 mark for the first time. This gain was largely driven by Nvidia, which saw its stock jump more than 7%.

However, Nvidia’s success masked issues in the broader market. The Dow Jones Industrial Average was dragged down by declines in Merck and other health sector stocks. Additionally, more than 350 stocks in the S&P 500 ended the day in negative territory, with the health care, industrials, and financials sectors each falling over 1%.

A government auction of Treasurys faced weak demand, pushing the rate on the 10-year note back above the critical 4.5% level. Stocks have tended to struggle when this benchmark rate exceeds that threshold. As yields rose, the Dow briefly dropped more than 300 points before recovering.

Meanwhile, Minneapolis Federal Reserve President Neel Kashkari stated on Tuesday that he wants to see "many more months" of data indicating easing inflation before considering rate cuts. He also did not rule out the possibility of further rate hikes if inflation pressures increase again.

Also check: American Airlines cuts outlook, says chief commercial officer is leaving.

Worth looking at: Robinhood stock adds 3% after initiating $1 billion stock buyback program.

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💵 Personal Finance

Why use cash in 2024

We’re turning ‘digital’ but paying with cash can sometimes be cheaper than using a credit card. Many merchants now offer discounts to customers who pay with cash, which can save you money.

How much can you save? Typically, cash discounts are about 2% to 4% off the purchase price, but sometimes the savings can be even greater.

Although only about 3% of all cash payments in 2022 included a discount, this is a significant increase from 2015, when just 1.8% of cash transactions had a discount, according to the Federal Reserve Bank of Atlanta. Experts believe that cash discounts may become more common in the future.

On the flip side, some businesses add a surcharge for credit card payments, making cash an even more attractive option for saving money. Nearly 70% of credit card users have encountered extra fees for using their cards.

This trend is happening even as fewer people use cash for purchases. In 2022, 18% of payments were made with cash, down from 31% in 2016, while the use of credit cards has increased from 18% to 31% during the same period.

💰 Be a Better Investor

“Generally, the greater the stigma or revulsion, the better the bargain.”

Seth Klarman

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