Skip to main content

Mueller Probe, Charges Weigh Down Wall Street

By U.S. News & World Report

This is supposed to be a big week on Wall Street, with focus on a tax reform plan, a two-day meeting of the Federal Open Market Committee and President Donald Trump’s expected announcement of a new Federal Reserve chair.

But stocks are starting the week off on a sour note as special counsel Robert Mueller’s investigation into Russia’s potential role in the 2016 election is threatening to derail the markets.

On Monday, former Trump campaign chairman Paul Manafort was indicted on charges of conspiracy, tax fraud and money laundering. His longtime associate, Rick Gates, who was also a campaign advisor, also turned himself in. Both pleaded not guilty.

[Read: How the Fed Is Affecting Income Investors.]

Authorities also announced that George Papadopoulos, a former foreign policy advisor to the campaign, pleaded guilty to lying to the FBI. He is cooperating with investigators.

The Standard & Poor’s 500 index finished Monday down 0.3 percent..

Harris Financial Group managing partner Jamie Cox says any investigation news that doesn’t necessarily threaten Trump’s presidency is good news for the stock market.

“The direct connection to Trump was the key,” Harris says, according to MarketWatch. “And, at this moment, there is none.”

However, investors concerned that indictment worries could distract Republicans from their political plans were selling health care stocks on Monday. The Health Care SPDR (ticker; XLV) exchange-traded fund was down 1 percent on the day.

[See: 7 Health Care ETFs to Buy Now.]

In addition to fears surrounding the Republican health care agenda, the House is considering a tax cut plan that would dial down corporate tax rates from 35 percent to 20 percent over a five-year period rather than making one large cut in 2018. Republicans are expected to release their plan on Wednesday.

While investors mostly shrugged off the Manafort indictment, the potential delay in tax cuts immediately impacted the market. The Dow Jones industrial average’s low point of the day almost perfectly corresponded with the tax cut news.

Peter Boockvar, chief market analyst at The Lindsey Group, says weakness in small-cap stocks is an indication that investors may be concerned about the tax plan. Bookvar says the Russell 2000’s outperformance since the election is a clear sign of investor optimism about tax cuts.

“A lot of it has been priced in, at least if you look at the Russell 2000 as a proxy for the beneficiary of lower taxes,” Boockvar said on CNBC.

[See: 9 Most-Loved Stocks in the Trump White House.]

The iShares Russell 2000 Index ( IWM) ETF finished Monday’s session down 1 percent.

More from U.S. News

10 Stocks That Oppenheimer Analysts Adore

8 Boring Stocks With Soaring Potential

Short Selling: 7 Stocks Pro Traders and Billionaires Hate

Mueller Probe, Charges Weigh Down Wall Street originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

2 trains collide in Denmark, critically injuring 5 people

Residents in rural Sudan say the Iran war has made it harder to get medicines

Dave Mason, co-founder of Traffic known for ‘We Just Disagree’ and ‘Feelin’ Alright,’ dies at 79