Chicago Passes $12.8 Billion Budget With More Taxes, Refinancing

The Chicago City Council on Tuesday approved a $12.8 billion budget for 2021 that relies on higher property and fuel taxes as well as a half billion dollars in savings from a large debt refinancing.

The spending plan includes almost $94 million from higher property taxes and $501 million in debt costs savings, according to budget documents. With help from cuts and increases to revenue, Mayor Lori Lightfoot closed a $1.2 billion deficit in the city’s $4 billion corporate fund, which pays for basic operations and services.

Lightfoot took on what she called “painful” choices to fill the record budget shortfall as the Covid-19 virus and business shutdowns to slow its spread hit tax collections. Revenue fell while the need for city services like housing assistance, health care and small business aid climbed. Chicago is facing $30 billion of unfunded pension liabilities after decades of inadequate contributions. The city’s total retirement obligations for fiscal 2021 are projected to rise to $1.82 billion from $1.68 billion this year.

The 2021 budget includes staff position reductions and instituting furloughs of non-union staff with higher incomes. Lightfoot backed off from planned layoffs after negotiations with labor groups. The spending plan also institutes a 3-cent-per-gallon increase in the city’s vehicle fuel tax.

VMware Inc. Q3 adjusted earnings of $1.66 per share

VMware Inc. (VMW) released earnings for its third quarter that climbed from the same period last year.

The company’s profit came in at $434 million, or $1.02 per share. This compares with $407M, or $0.96 per share, in last year’s third quarter.

Excluding items, VMware Inc. reported adjusted earnings of $704M or $1.66 per share for the period.

The company’s revenue for the quarter rose 7.5% to $2.86 billion from $2.66 billion last year.

VMware Inc. earnings at a glance:

-Earnings (Q3): $704M. vs. $602M. last year.
-EPS (Q3): $1.66 vs. $1.42 last year.
-Revenue (Q3): $2.86 Bln vs. $2.66 Bln last year.

-Guidance:
Full year EPS guidance: $7.03
Full year revenue guidance: $11.7 Bln

How much you will get in Social Security if you make $40,000 and wait until 70 to take your benefits

Waiting until you are 70 to collect Social Security benefits could translate to tens of thousands of dollars a year in your pocket when you need it most.

Benefits are based on your income, the year you were born and the age you decide to start taking money out. So timing is key.

You are first eligible to begin receiving your benefits at age 62. Your benefits go up or down based on how many months before or after your full retirement age you take your benefits. Increases stop when you turn 70, so there's no point in waiting longer than that to cash out.

Check out this video to see a case study of someone who turns 62 in 2020 and made $40,000 every year over the course of their career.

More from Invest in You:
How this couple paid off their $195,000 mortgage in under 4 years
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Dell Inc. Q3 adjusted earnings Beat Estimates

Dell Inc. (DELL) announced a profit for its third quarter that rose from the same period last year.

The company’s profit totaled $832 million, or $1.08 per share. This compares with $499 million, or $0.66 per share, in last year’s third quarter.

Excluding items, Dell Inc. reported adjusted earnings of $1.71 billion or $2.03 per share for the period.

Analysts had expected the company to earn $1.40 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 2.8% to $23.48 billion from $22.84 billion last year.

Dell Inc. earnings at a glance:

-Earnings (Q3): $1.71 Bln. vs. $1.45 Bln. last year.
-EPS (Q3): $2.03 vs. $1.75 last year.
-Analysts Estimate: $1.40
-Revenue (Q3): $23.48 Bln vs. $22.84 Bln last year.

Oil Futures Extend Recent Gains, Post Highest Close Since March

Crude oil prices rose sharply and lifted the most active futures contract to their highest close since March on Tuesday.

Easing concerns about energy demand on the back of recent upbeat updates on potential coronavirus vaccine, and increasing prospects for a fiscal stimulus soon following U.S. President-elect Joe Biden beginning his transition to the White House.

According to reports, Biden has picked former Federal Reserve Chair Janet Yellen as Treasury Secretary.

West Texas Intermediate Crude oil futures for January settled stronger by $1.85 or about 4.3% at $44.91 a barrel, after scaling a high of $45.20 in the session.

Brent crude futures were up $1.70 or 3.7% at $47.74 a barrel a little while ago.

Traders were also betting on hopes the OPEC and its allies will discuss extending oil output curbs into next year, aiming to balance the market.

The American Petroleum Institute (API) will be releasing its weekly oil report later today, while the Energy Information Administration (EIA) will release its inventory data Wednesday morning.

Gap Inc. Q3 Profit Retreats

Gap Inc. (GPS) announced earnings for third quarter that declined from the same period last year.

The company’s earnings came in at $95 million, or $0.25 per share. This compares with $140 million, or $0.37 per share, in last year’s third quarter.

The company’s revenue for the quarter fell 0.2% to $3.99 billion from $4.00 billion last year.

Gap Inc. earnings at a glance:

-Earnings (Q3): $95 Mln. vs. $140 Mln. last year.
-EPS (Q3): $0.25 vs. $0.37 last year.
-Revenue (Q3): $3.99 Bln vs. $4.00 Bln last year.