Today's Scoop:

Hey friends, here's what you need to know today...

1. Wages aren't rising as quickly anymore.

2. Home prices have stopped skyrocketing.

3. Consumers got a little less confident last month.

S&P 500: 4,076.601Mo: +6% | 1Yr: -10% | 5Yr: +48%

The market drifted higher today in hopes that more signs of cooling inflation will allow policymakers to stop raising interest rates and restricting the economy.

Employers aren't hiking wages as much as they were. The Labor Department's Employment Cost Index, the broadest measure of wages, rose at the slowest pace in a year. People are getting paid 5% more than a year ago, but inflation-adjusted real wages have actually declined 1.2%. Your income buys less stuff.

Home prices aren't rising as quickly, aka lower real estate inflation. The Federal Housing Finance Agency said home prices are 8.2% higher than a year ago, but that's down from the big jumps earlier. The limited supply of homes might prevent any significant price declines.

Consumers are feeling a little less confident and more worried about the jobs market. The Conference Board's consumer confidence index fell from December.

Click to dig in & vote your reaction, see how others feel

• Kroger sued for stealing wages from workers

• ExxonMobil notches record profits, but no additional buybacks[🤓]

• General Motors feels good about the year ahead

• McDonald's benefits from tighter budgets

• Spotify keeps the streaming momentum

(These links only work for 24 hours while the story is live)

Dividends & Buybacks

Companies with extra cash can reward shareholders for their support in two ways. First, they can distribute money directly out to investors, literally giving them a share of the profits by paying them a dividend. Companies will declare that every investor gets $X for each share they own.

Second, companies can buy back their own shares from public investors. Buybacks allow companies to reduce the number of outstanding shares in the market, making each remaining share more valuable. They're slicing their company ownership into fewer pieces, allowing each shareholder to own a greater percentage of the company. If companies pause or slow either of these activities, it can mean they're preparing for trouble.

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