👌Openings rise and layoffs decline

and stocks soar even more

Good morning investors! The market is unstoppable as greed continues to rule.

Today we cover:

  • The latest job report

  • Stocks hit new highs

  • Salesforce earnings

📊 Economy and News 

U.S. Job Market in October: Rising Openings and Declining Layoffs

Job openings in the U.S. rose significantly in October, reaching 7.744 million, while layoffs saw their sharpest drop in 18 months, indicating a stable labor market. However, employers remained cautious about hiring, reflecting economic uncertainties.

The ratio of job openings to unemployed individuals increased to 1.11 in October from 1.08 in September. While below the early 2022 peak of 2.03, this ratio is nearing the pre-pandemic level of 1.2, signaling a steady normalization of labor demand.

Sector-Specific Trends

The professional and business services sector led the growth in job openings with 209,000 additional vacancies. Accommodation and food services added 162,000, and the information sector grew by 87,000. Federal government job openings declined by 26,000. Small businesses, particularly those with fewer than 10 employees, accounted for all new vacancies.

Hiring Declines Across Industries

Hires fell by 269,000 to 5.313 million in October, with the hiring rate dropping to 3.3% from 3.5%. Declines were seen in construction, manufacturing, finance, and hospitality. Regional hiring also slowed, particularly in the South, likely due to disruptions caused by hurricanes.

Global hits:

Political chaos: South Korea stocks drop as opposition parties move to impeach President Yoon. On the other hand, France's political chaos casts long shadow over economic growth.

Exciting: .Cyber Monday was the biggest US online shopping day ever with consumers spending $15.8 million every 60 second.

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📈 Stocks

S&P 500 6,049.88 (+0.045%)
DJIA 44,705.53 (-0.17%)
NASDAQ 19,480.91 (+0.40%)
BRENT CRUDE 73.68 (+2.58%)
* Prices as of Mar 3rd, 12:20 AM UTC

S&P 500 Edges Higher, Extending Post-Election Rally

The S&P 500 inched up Tuesday, reaching another record close as U.S. stocks continued their post-election surge. Since the November 5 presidential election, the S&P 500 has gained 4.6%, while the Nasdaq has risen 5.7%, and the Dow Jones Industrial Average is up 5.9%.

Historically, strong market performance following a presidential election has often extended into December. According to market trends, when the market rises by 10% or more after a newly elected president takes office, it has never declined in December.

However, Ken Mahoney, CEO of Mahoney Asset Management, tempered expectations, noting that November's exceptional performance might limit further gains. While historical patterns suggest stability, the momentum of the rally could slow as the market digests recent advances.

Salesforce earnings: Salesforce shares were up 7% after the bell after the company reported its fiscal third-quarter earnings, reporting revenue and fiscal fourth-quarter guidance that exceeded analysts’ expectations.

The company’s revenue grew 8% year-over-year during the fiscal third quarter, which ended on Oct. 31. Its net income was $1.5 billion in the quarter, up 25% from $1.2 billion a year ago.

Salesforce said that it is expecting fiscal fourth-quarter sales to come in between $9.9 billion to $10.10 billion. Analysts were projecting $10.05 billion in fourth-quarter sales.

Surprising: Microsoft faces £1 billion lawsuit in UK for allegedly overcharging rival cloud firms’ customers. Elsewhere, Intel shares fell 6% on Tuesday, a day after the chipmaker announced the ouster of CEO Pat Gelsinger. Analysts at Cantor wrote in a note to clients that the company’s challenges aren’t the fault of Gelsinger and, “we simply do not see a quick fix here.” Intel has lost more than 50% of its value this year.

Exciting: Apple says it uses Amazon’s custom AI chips.

💵 Personal Finance

How to fund your child’s education - Part I

Education is expensive, especially in countries like the US where the average cost of attendance for a student living on campus at a public 4-year in-state institution is $26,027 per year or $104,108 over 4 years.

Did you know you can get free education in countries like:

  • Germany

  • Italy

  • Finland, and

  • Norway

Some of these will even pay you to get enrolled. 💰

The situation is better in countries like China and India. However, parents often struggle to save for their kid’s education.

So, ready for some tips? Let’s start:

Start with a savings account

Consider government-sponsored savings accounts that offer tax advantages, such as the 529 Plan in the US. You will enjoy offers great benefits like:

  • Tax-free earnings (when money is used for college).

  • Tax-free withdrawals (when money is used for college).

  • It is possible to change the beneficiary.

  • There are usually no income limits or restrictions based on age, which means you can even use it to fund your own education.

However, there is usually a penalty for withdrawing funds for any other purpose. Moreover, there is a gift tax when more than $17,000 is contributed in 2023 by a single person.

You can put money into your own state's 529 or any other state's plan. Plans differ from state to state, so pick the one you like the most.

In addition, there are some other great savings accounts such as Uniform Transfer to Minors Act (UTMA) or Uniform Gift to Minors Act (UGMA). Also, a Roth IRA can be used to save for your child’s education.

Warning: Stay away from student loans. The average borrower takes 20 years to repay their student loan debt. Trust us, you do not want to be in debt. However, feel free to try our Student Loan Calculator to calculate expected costs.

Here’s a video on the topic:

💰 Be a Better Investor

“It's nice to have a lot of money, but you know, you don't want to keep it around forever. I prefer buying things. Otherwise, it's a little like saving sex for your old age.”

Warren Buffett

Resources:

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.