US Financial News: news summary | 21 July 2023
US finance news: live updates
Headlines | Friday, 21 July 2023
- Initial unemployment claims drop by 9,000 to last week to 228,000
- Weekly average mortgage rates dip to 6.78% for 30-Yr fixed rate and 6.06% for 15-Yr fixed rate
- 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
- 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
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Banks warn of interest income weakness after upbeat quarter
Comerica and Huntington Bancshares have sharply cut their interest income growth forecasts for 2023, the latest banks to sound the alarm over faltering loan demand and a rise in deposit costs.
The Federal Reserve's fastest monetary tightening cycle since the 1980s helped lift lenders' net interest income in the second quarter, but the high rates are forcing some customers to rethink taking loans and buying big-ticket items.
The high interest rate environment is also forcing lenders to boost deposit rates to prevent clients' money from fleeing to high-yielding alternatives like money market funds.
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SNAP is a government assistance scheme that supplies eligible low-income individuals and families with funds for food. The benefits are put on the EBT cards every month. However, payment dates vary from state to state despite being a federal program.
The 23rd of the month is the last pay day in certain areas. Find out who will receive payments on July 23.
Where to find the best back-to-school deals
More than half (55%) of consumers started their back-to-class shopping early July this year, but most shoppers (85%) said they still had at least half of their shopping left to do.
One reason for spacing out spending is the price of school supplies. Back-to-school shoppers have seen prices rise 24% in the past two years, according to consulting firm Deliotte.
Bargain shopping will be key for many consumers this year, with consumers stretching their dollars by comparing prices and considering off-brand or store-brand items.
USA Today offers a list of outlets with back-to-school deals.
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Each year, Social Security benefits are increased thanks to the cost-of-living adjustment, which is intended to help beneficiaries cope with changes in purchasing power. Beginning in 1975, Social Security began these automatic annual COLA allowances.
The COLA calculation covers the third quarter of the previous year to the third quarter of the current year. For example, the difference between the CPI-W of 2021 and 2022 was 8.7%, so Social Security payments increased by that percentage in 2023.
On a monthly basis, the Social Security Administration sends money to various beneficiaries, including retired workers and survivors. It also mandates disability payments, which include the Supplemental Security Income program and Social Security Disability Insurance.
The SSA has already sent some payments for this month and is preparing to send the last payment on July 26. Find out who the recipients are for this particular date.
Amazon brings palm payment technology to Whole Foods
At Amazon's Whole Foods, shoppers can now pay with the palms of their hands.
The consumer tech giant announced plans to bring its palm-payment technology, dubbed Amazon One, to all 500-plus Whole Foods locations in the US by the end of this year. This means customers can hover their hand over an Amazon One device at checkout to pay with the card linked to their Amazon account and automatically apply savings.
Currently, the technology is available at more than 200 locations in the US in Arizona, Colorado, Idaho, Kansas, Louisiana, and Oklahoma, among other states.
Retailers cash in on Barbie craze
Shoppers are snapping up Barbie hoop earrings, perfume, jumpsuits, and dresses as retailers seek to cash in on Friday's Barbie film release, reigniting the craze for the plastic doll and her hot pink, sequin-adorned universe.
With many consumers spending less amid a cost of living squeeze, retailers are jumping at the opportunity to persuade shoppers to buy more expensive items and boost their revenues.
The vast range of products and brand tie-ups, many aimed at adults, are a bet on the nostalgia trip that Barbie represents for many who played with the doll as children.
Mattel, which owns the brand, aims for the film to renew the doll's nostalgic appeal, while also embedding Barbie into the psyche of a new generation.
(REUTERS)
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.
In 2021, 3.5 percent of children in California lacked access to health insurance, according to researchers at Georgetown University. California is the largest state in terms of population, and compared to Texas and Florida —the two following most populous states— the rate of children without access to healthcare is much lower. In Texas, the figure was 11.8 percent, and in Florida, it was a touch lower at 7.3 percent.
California has expanded Medicaid and the Medi-Cal for Kids program to provide insurance coverage to more children. Currently, Medi-Cal covers one-third of the state’s residents.
Here's the maximum income to qualify for CHIP in California...
After receiving two payments in June and zero in July, some Social Security recipients will get their next payment 1 August.
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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.”
Americans at all income levels can have their monthly health insurance bill reduced with an advance payment of the Premium Tax Credit.
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.
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
Initial unemployment claims fall for second straight week
The US Department of Labor released unemployment insurance data for the week ending 15 July which showed initial claims fell by 9,000 to 228,000. The number of first-time claimants has dropped for two weeks in a row and over the past month has decreased from 265,000 the month prior. That was the highest level since October 2021.
Weekly average mortgage rates drop
After rising to just shy of 7% the weekly average 30-year fixed-rate mortgage dropped to 6.78% as of 20 July. The 15-year fixed-rate weekly average fell to 6.06%.
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.
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)
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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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.
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.
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.
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.