Wal-Mart is raising minimum wage to $11 and dishing out a one-time bonus for employees, citing the Trump Tax Reform plan. Karen Short, Managing Director at Barclays, was with us to discuss the ramifications of the decision.
Short estimates that Wal-Mart could generate $4 billion in incremental free cash flow due to the tax reform, and adds that the wage hike is just of portion of the allocation. The analyst says that the "strong will get stronger" and other retailers will have to follow Wal-Mart's lead.
Tax reform narrows the advantage Amazon has over traditional retailers such as Wal-Mart, says Short. She says Wal-Mart has an advantage over Amazon because it is the largest grocer with low prices. Short also adds that the stigma surrounding Wal-Mart products has dissipated and is no longer a "turnoff" to millennials because the products have gotten better.
Stocks were mixed in Friday's opening session as the Nasdaq sought to recover after a rough week and following Amazon's earnings, which topped expectations.
It's a benefit to have a 401k plan with your employer but it can also be stressful to decide how to best allocate your contributions. Michele Schneider, partner and director of trading research and education with MarketGauge.com, joined Cheddar News to explain which markets are best to invest in, depending on your age demographic.
There is no specific formula or playbook for handling money with your spouse. Is it any different with a second marriage? Kelli Smith, director of financial planning with Edelman Financial Engines, joined Cheddar News to discuss what approach to take with finances with a new partner.
