US Financial News: news summary | 20 July 2023
Headlines | Thursday, 20 July 2023
- Latest retail data showed US consumers still shopping, but less than expected
- Interest rate hike expected when Fed policymakers to meet next week
- SNAP recipients whose benfits were 'skimmed' can get reimbursed
- Biden administration cancels $39bn in student loan debt for 800k borrowers
- Inflation in the US dropped to 3% in June,lower than forecast
- June jobs report: The US economy added 209,000 jobs in June as labor market cools
- How to participate in the SNAP Program as a merchant
- The White House announces the SAVE planto help student loan borrowers
New York City is known for its high cost of living, and consistently makes it to the list of most expensive places to live in the US. One factor that contributes to its pricey nature is the cost of housing.
According to Insider Monkey, New York is the most expensive US city for renters, with the average rent for a one-bedroom apartment standing at $3,570.
In light of these exorbitant figures, the New York City government is offering affordable housing to people with low to moderate income.
Elon Musk says Tesla may keep cutting electric vehicle prices
Tesla CEO Elon Musk signaled that he would cut prices again on electric vehicles in "turbulent times", even as his all-out price war on automaker rivals squeezes the company's own margins.
The company has slashed prices several times in the United States, China and other markets since late last year, and increased discounts and other incentives to reduce inventory, as it tries to shield against competition and economic uncertainty.
"One day it seems like the world economy is falling apart, next day it's fine. I don't know what the hell is going on," Musk told analysts. "We're in, I would call it, turbulent times."
Tesla shares, which had been largely flat after hours, fell nearly 5% after Musk's comments.
The large price cuts have pressured Tesla's automotive gross margin, a closely watched indicator in the industry, but Musk has said Tesla would sacrifice margin to drive volume growth.
(REUTERS)
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The service industry is one of the most in-demand fields in the United States, especially during the holiday season. This is particularly true for California, which is the state with the highest level of employment for waitstaff. Also, by law, it has a minimum wage that is higher than what is dictated at the federal level.
Find out how much money servers in the Golden State earn per hour and per year.
Low inventory continues to raise home prices despite high mortgage rates
The median existing-home price climbed for six straight months in June to $410,200, the second-highest price of all time and down just 0.9% from the record-high of $413,800 in June 2022, according to data released by the National Association of Realtors.
33% of homes on the market had multiple offers, per USA Today.
Historically low levels of inventory, down 14% from one year ago, is contributing to rising prices despite elevated mortgage rates, say experts.
NAR Chief Economist Lawrence Yun says, "If some consumers, perhaps mistakenly, heard about a housing recession, they're finding out is that it is a tough market to be a buyer in the current environment."
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Medicare offers health insurance programs for adults 65 and older, as well as other eligible individuals with specific medical conditions or disabilities.
This insurance has several plans, known as parts A, B, C and D, in addition to Medigap. These components cover different needs and provide different benefits.
Find out which one is most appropriate for your health needs.
June home sales at slowest pace since 2009
Sales of previously owned homes dropped 3.3% in June from the month before to an annualized rate of 4.16 million, according to the National Association of Realtors. June home sales were 18.9% lower compared with last year, the slowest sales pace for June since 2009. This is also lower than the 4.3 million unit sales predicted by economists polled by Bloomberg.
The share of homes available for sale shrank to a historic low leaving potential buyers with fewer options. First-time buyers are also waiting longer to buy. They were responsible for 27% of sales in June, down from 28% in May and 30% in June 2022, per Yahoo Finance.
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Netflix revenue disappoints Wall Street despite subscriber increase
Streaming giant Netflix disappointed Wall Street on Wednesday with second-quarter revenue that fell short of analyst estimates, sending shares tumbling nearly 9% in after-hours trading.
The revenue figure, along with a weaker-than-expected forecast for revenue in the third quarter, overshadowed the addition of 5.9 million new streaming customers from April through June and earnings that easily topped predictions.
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The Social Security Administration sends payments to different beneficiaries each month, including retired workers, survivors, and those receiving disability benefits from the Supplemental Security Income program and Social Security Disability Insurance.
The SSA continues to send monthly payments for 2023. The agency has already sent payments for the first half of the year and the first two weeks of payments for July.
Here are the payment dates of the remaining benefits from July to December.
The right to strike is enshrined in Section 7 of the National Labor Relations Act. But the statute also places restrictions on exercising that right.
The cost of housing in the United States has increased by 3.5% since January, as inflation in other goods and services markets has begun to fall. Renters are feeling the pinch, with the average rental price rising 8.3% since June 2022. While part of the rise can be explained by the decrease in rental prices seen in the early months of the pandemic, prices remain 20% higher than they were in the summer of 2019. These substantive increases come as real wages for private sector workers in the United States have fallen by 1.2% in the same period.
Here are the top ten rental markets that have seen the most rapid price growth this year
SNAP recipients in can receive money back that was scammed. Scammers using ‘skimming’ devices to steal Electronic Bank Transfer (EBT) cards from some of America’s poorest families have taken millions of dollars.
However, to counter this, spending plans announced by the US Department of Agriculture last December requires states to reimburse stolen funds. Maryland was the first state to have their plan approved, rescuing $2.5 million for nearly 4,000 victimes.
In June, “an overwhelming 97 percent” of UPS Teamsters voted to strike if the United Parcel Service doesn’t “come to terms on a strong new contract by July 31.” The labor stoppage by over 340,000 drivers and warehouse workers at the world’s largest delivery company could be economically damaging.
UPS carries around 20 million packages a day, roughly a quarter of parcel shipment in the United States. A 10-day strike could cost the economy upwards of $7 billion, the costliest in at least a century, according to Anderson Economic Group.
Nurses are a key element in the health sector, as they provide the necessary care to help patients with daily tasks. As the profession belongs to the field of health care, it is also one of the jobs with a growing demand.
According to the Bureau of Labor Statistics Occupational Employment and Wage report, California is the state with the highest level of employment for registered nurses, as well as the highest salary for these workers in the country.
Find out how they earn in the Golden State.
Chipotle to give away free meals for goals scored by the USWNT
Chipotle is giving you an incentive to cheer for the US women's national soccer team during the 2023 World Cup.
You will have a chance to win free food during the team's first three games in the group stage of the tournament. The USWNT's first match is Friday at 9 p.m. ET vs. Vietnam.
During that game and the subsequent two games when the team scores a go-ahead goal, a tying goal, or a lead-extending goal, a unique code for a free entrée will be posted on the US Women’s National Soccer Team Twitter account (@USWNT). The first 2,500 fans to text the code to 888222 will get a free digital entrée.
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New business applications hit two-year high in June
Applications to start new businesses surged to the highest level in two years in June, despite high interest rates and uncertain economic outlook, according to a Commerce Department report.
Business applications increased 6.2% in June compared with May with a seasonally adjusted 465,906 new applications.
Filings from applicants that have a high likelihood of creating a payroll and adding jobs to the economy, such as those from existing corporate entities or those indicating they are already hiring, rose 6.0% to 149,536 new applications. The data is collected from business applications for tax identification numbers.
June's resurgence emphasizes growing optimism among small businesses inspired by the Fed's recent pause in rate hikes, as well as the growing expectation that the central bank's aggressive rate hiking strategy is nearing an end.
(REUTERS)
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Six proposals for bitcoin exchange-traded funds accepted by SEC for review
The US Securities and Exchange Commission (SEC) has accepted six spot bitcoin exchange-traded fund (ETF) proposals for review as of Wednesday. This is the first step in the federal watchdog agency’s process for deciding on whether or not to approve them. The six firms include BlackRock, Bitwise, Fidelity, Invesco, VanEck and WisdomTree.
Prior applications for spot bitcoin ETFs had been rejected for not meeting anti-fraud and investor protection standards according to the SEC. However, earlier this month Nasdaq said that it would work with Coinbase to address those issues and work to police trading in the underlying bitcoin market.
The first bitcoin futures ETF was approved in October 2021, which follow the price of bitcoin futures contracts, unlike a spot ETF that will directly track the price of bitcoin. That move helped boost the volatile value of the oldest cryptocurrency to its all-time peak of $69,000 the following month.
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According to the National Office of Oceanic and Atmospheric Administration, the 2023 Atlantic hurricane season began on June 1 and will end around November 30.
Most of the activity is observed from August to October, and some states are particularly vulnerable to severe weather. In some of these states, such as Florida, financial help is offered to residents to help them prepare and protect their home.
Find out more about the My Safe Florida Home Program, which was enacted by the state legislature to “harden Florida homes against hurricanes and save homeowners money.”
Summer is in full swing in Los Angeles, California, bringing with it very high temperatures and threats of fire. The authorities advise people to prepare for the hottest time of the year, and in line with this, the Department of Water and Power wants to help certain eligible residents cope with this heat wave.
Find out how to avail of subsidy for air conditioning in the City of Angels.
The Social Security Administration administers several common benefit programs, two of which are Social Security and Social Security Disability Insurance. For those who at some point claimed SSDI, there are certain rules that they may not be subject to when they begin receiving their Social Security benefits.
Those who have claimed disability insurance and will soon begin or recently began to claim Social Security benefits should be aware of the five-year rule.
Employees can request their Social Security pension upon collecting 40 credits, or the equivalent of having worked for around ten years. The benefit to be received depends on the salary during the work period, as well as the years worked and the age of the person at the time that the benefits are applied.
However, there is a certain group of people who can claim monthly Social Security payments even if they never worked formally in their life; that is, even if they never contributed to the Social Security Administration.
Hello and welcome to AS USA's live blog
Follow along as we bring you the latest information on SNAP benefits, IRS refunds and Social Security benefits. Likewise, we'll keep you informed on how the US ecnomy is performing as the Federal Reserve raises interest rates to bring inflation back to its 2% target.