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Trump's diagnosis moves stocks and maybe the stimulus bill; new car prices are up: How today's headlines could affect your money

President Trump’s Covid-19 diagnosis could improve the chances of the Senate passing the coronavirus stimulus bill. Here’s how today’s news could affect your money.

President Donald Trump drives past supporters gathered outside Walter Reed National Military Medical Center in Bethesda, Md., Sunday, Oct. 4, 2020.
Anthony Peltier | AP

Trump's diagnosis moves stocks and possibly the stimulus bill, and new car prices are up. Here's how today's headlines could affect your money: 

Market responds to Trump diagnosis

The Dow and S&P 500 both broke a four-week losing streak last week, and all three major indexes were up Monday. All eyes are on President Donald Trump's Covid-19 treatment, and stocks moved higher after he tweeted that he would be discharged from the hospital later Monday. The pharmaceutical company Regeneron's stock also rose on news that Trump was administered the company's experimental treatment. 

It's good to keep in mind that by the time you hear about a price jump tied to an event, it is often too late for the average investor to "trade the news." Many top investors recommend focusing on the big picture rather than the daily ups and downs.

Pressure for a stimulus bill

Trump's diagnosis could improve the chances of the Senate passing the coronavirus stimulus bill, which includes individual stimulus checks of up to $1,200 and $600 per week in enhanced unemployment.

On Friday, House Speaker Nancy Pelosi said the president's diagnosis "kind of changes the dynamic" of her talks with Treasury Secretary Steven Mnuchin and could lead Republicans to see that "this is a vicious virus."

How this couple saved $1,500 buying a new car during the pandemic

Video by Stephen Parkhurst

New vehicle prices increase

Cars are getting more expensive. The estimated average price for a light vehicle was $38,723 in September 2020, according to new data from Kelley Blue Book. New-vehicle prices increased an average of $940 (up 2.5%) from September 2019 and $23 (0.1%) from last month. 

The good news: Interest rates on auto loans for new vehicles are at less than 4.5%, down slightly from last year. And many dealerships have interest-free promotions. Compare financing offers before heading to the dealership.

Words you've heard: Trading the news

Trading the news is a method of investing that involves monitoring current events to make investment decisions. For example, a news trader might watch the latest Covid-19 developments to guess what pharma stocks to buy. This method is used by day traders (people who trade multiple times a day) but is not advised for long-term investors.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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