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Stocks up ahead of Fed moves and CPI data – Fed to raise rates on Wednesday – Congress debating 7 new retirement rules – Honda introduces all-electric N-Van starting at $7,300
Stocks moved higher in early morning trading on Monday, with the Dow Jones Industrial Average ticking up by 0.3% or nearly 120 points, and the S&P 500 inching higher by 0.2%, while the technology-heavy NASDAQ composite nudged up by 0.1%, Yahoo Finance reported.
The benchmark 10-year U.S. Treasury was trending upward at +0.002% for a yield of 3.569% as of 10:32 AM EST.
WTI crude oil was up 0.8%, trading at $71.94 after crude sank to a new low for 2022 on Friday.
The Federal Reserve has already hinted it will raise interest rates again this week in its continuing battle against inflation. The big question is: By how much?
Traders are betting on just a half-point increase, CNN reported, with federal funds futures on the Chicago Mercantile Exchange showing an 80% probability of a half-point hike.
With the latest data last Friday showing a stronger-than-expected Producer Price Index, a key measure of wholesale prices, rising 7.4% over the past twelve months through November instead of the anticipated 7.2%, some believe the Fed may have to take more aggressive action and raise the interest rate by three-quarters of a point.
Since this past summer, lawmakers have been trying to tie three bills together, two from the Senate and one from the House, into a single package known as Secure 2.0, CNN reports.
Within all this legislation, there are seven new retirement rules that Congress is seeking to put in place. They are:
1. Require auto-enrollment in 401(k) plans.
2. Introduce employer contributions for student loan payments.
3. Increase the age for required minimum distributions to 75.
4. Help employees build and access emergency savings. This would include a penalty-free withdrawal of up to $1,000 a year for emergencies.
5. Raise catch-up contribution limits for older workers. Allow those between ages 60 and 64 (age range is not finalized yet) to contribute $10,000 instead of $6,500.
6. Enhance and simplify the Saver’s Credit.
7. Make it easier for part-time workers to save.
In a move to get more electric vehicles on the road in Japan, Honda is introducing a low-priced electric version of its popular super-compact commercial vehicle called the N-Van, a no-frills vehicle that will start at only $7300 – the same price as its gasoline equivalent.
Honda claims a cruising range of 124 miles, plenty for a daily commute or making deliveries in urban areas.
By comparison, the most affordable EV in the U.S. is the Chevy Bolt, which costs $25,600. Even with the federal credit of $6,000, that’s still $19,600 – $12,300 more than the Honda N-Van, Autoblog reported.
