Markus Andrews

A smartphone displaying Facebook with the Meta icon visible in the background.
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The U.S. stock market witnessed a solid September, thanks to the Federal Reserve’s much-awaited interest rate cut. However, escalating geopolitical tensions in the Middle East could weigh on investor sentiment this month.
Nonetheless, investors could benefit by ignoring short-term noise and tracking the recommendations of top Wall Street analysts to pick stocks with attractive long-term growth potential.

Bearing that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
CyberArk Software
This week’s first pick is CyberArk Software (CYBR), a cybersecurity company that is mainly focused on identity security. The company delivered better-than-expected quarterly results and raised its full-year guidance, indicating solid demand for its products.
Recently, RBC Capital analyst Matthew Hedberg initiated coverage of CYBR stock with a buy rating and a price target of $328, calling it a top mid-cap cybersecurity idea. The analyst thinks that the company is in a “good position to consolidate identity spending and maintain durable and increasingly profitable growth.”
Hedberg expects CyberArk to sustain strong growth, driven by the demand for identity security and substantial room to grow within its core Privileged Access Management (PAM) market. Additionally, the analyst thinks that the company can grow beyond the PAM market by pursuing cross-sell opportunities in the Access, Secrets, Endpoint Privilege Management (EPM) and machine identities markets.
Hedberg also expects the company to benefit from its acquisition of Venafi, a machine identity specialist. He anticipates that Venafi’s growth will rebound to more than 20% and be accretive to CyberArk’s growth and margins over time.

Overall, Hedberg is optimistic about a further rise in CyberArk’s profitability and expects the company’s organic growth to be above 20% for several years, backed by an estimated total addressable market (TAM) of $60 billion.
Hedberg ranks No. 164 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 14.7%. (See CYBR Hedge Fund Activity on TipRanks) 
Uber Technologies
We move to the ride-sharing and food delivery platform Uber Technologies (UBER). After hosting meetings with the company’s management, JPMorgan analyst Doug Anmuth reaffirmed a buy rating on UBER stock with a price target of $95.
Highlighting the key takeaways from the meetings, Anmuth said that management is confident about achieving a three-year compound annual growth rate of mid- to high-teens for gross bookings, backed by a stable macro and demand backdrop since the second-quarter earnings. In particular, management stated that demand continues to be healthy in both the Mobility and Delivery businesses.
Anmuth also noted the company’s optimism about expanding its advertising business across Uber Eats and grocery. Notably, the ad business is on a run-rate of $1 billion (as of the second quarter) or about 1% of delivery gross bookings. In fact, delivery profits have improved over the recent quarters due to the high-margin ad business. Uber expects its grocery ad business to account for 5% of gross bookings over time.
The analyst also pointed out the company’s growing interest in autonomous vehicles (AV). “Uber can add value to AV tech providers by driving higher demand/utilization and building out the AV ecosystem through fleet operations,” Anmuth said, based on discussions with management.
Anmuth ranks No. 93 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 18.4%. (See UBER Stock Buybacks on TipRanks) 
Meta Platforms
This week’s third stock pick is social media company Meta Platforms (META). At the recently held Meta Connect event, the company highlighted Quest 3S, its latest virtual reality headset, as well as other innovations, including its latest prototype of augmented-reality (AR) smart glasses (Orion) and the new features of its Meta AI chatbot.
Following the announcements at the event, Baird analyst Colin Sebastian reaffirmed a buy rating on Meta stock and boosted the price target to $605 from $530.
The analyst attributed the higher price target to a number of factors, including significant opportunities to expand core monetization with artificial intelligence (AI)/generative AI features and the ongoing momentum in Messaging. His improved outlook also reflects “generally positive social media ad checks,” with September looking better than the trends noted in August.
The analyst raised his 2025 revenue and 2024 and 2025 earnings per share estimates to reflect stable macro trends, higher contributions from Messaging and enhancements related to devices and AI-driven platform. However, he slightly lowered his 2025 operating margin estimate to reflect increased networking and depreciation expenses.
Commenting on Meta Connect, Sebastian said he thinks that this year’s event reflects the significant progress the company has made with its Reality Labs division and AI/generative AI. Specifically, the analyst thinks that the Llama update provides a further edge to Meta’s LLMs (large language models) over close rivals like Anthropic’s Claude, OpenAI’s ChatGPT, and Google’s Gemini. He is also optimistic about the innovations related to Meta AI assistant and expects it to be the most popular AI assistant by the end of 2024.
Sebastian ranks No. 277 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 57% of the time, delivering an average return of 13.6%. (See META Insider Trading Activity on TipRanks)  More

Riverview High School in Riverview, Florida, opened a construction academy to help put students on a path to well-paying jobs after graduation.
Increasingly, high schoolers are looking for career-connected options available at a lower cost than a four-year college.
A shortage of skilled tradespeople, largely due to experienced workers aging out of the field, is also boosting the number of job opportunities and pay.

Angela Ramirez-Riojas, 18, is enrolled in Riverview High School’s construction academy.
Courtesy: Riverview High School

For Angela Ramirez-Riojas, 18, going to college was always plan B.
Her grandfather works in construction, and that motivated Ramirez-Riojas to follow in his footsteps.

“I’ve gone with him to work,” she said. “He frames houses and I really enjoyed being there with him because I look up to him. He’s very smart and knows a lot about working with his hands.”
Ramirez-Riojas, who is a senior at Riverview High School in Riverview, Florida, enrolled in her school’s recently opened vocational program in construction. The job training was particularly appealing, she said.
“I want something quick to help me move along,” she said.
Still, higher education isn’t completely off the table, she said. “College is a second option for me.”

Interest in the skilled trades is rising among teens

Three years ago, Riverview High School opened its construction academy to help put students like Ramirez-Riojas on a path to well-paying jobs after graduation, often in lieu of a four-year degree.

This program “is not a ‘Last Chance U,'” said Erin Haughey, Riverview’s principal. “If we have students who are highly motivated, they want to learn the skill, they want to be in the trade, then they get to stay in our community and they get to do a job they love.”
With the capacity for 20 students in the workshop at a time, and only three classes offered each year, there is now a waiting list to get in, she said. Of the 120 students who sign up each spring, only 60 ultimately secure spots.
“I could fill Jeff’s classroom twice over,” said Haughey, referring to Jeff Lahdenpera, the building trades teacher.
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“It’s not only throwing nails and two by fours,” Lahdenpera said. Students can get certified in carpentry, plumbing and electrical work, and continue on to pursue various specialties, including construction management, administration, logistics and transportation, marketing and graphics or human resources.
“Construction trades is not just the physical part, there’s other parts of it that encompass the whole industry,” Lahdenpera said.

Construction worker shortage is boosting pay

In addition to providing students with a career-connected pathway available at a lower cost than a four-year college, Riverview’s construction academy was also created to help address a local labor shortage, which mirrors what is happening nationwide.  
The academy was funded, in part, by a $50,000 donation from Neal Communities, a private builder based in Lakewood Ranch, Florida.
“There’s a lot of development that’s happening right now in our counties,” said Katie Alderman, Neal’s community affairs coordinator.
America needs construction workers. This year, the construction industry would have to attract more than half a million workers more on top of the normal pace of hiring to meet the demand for labor, according to a model developed by Associated Builders and Contractors. Currently, the unemployment rate in the industry is 3.2%, well below the national average of 4.2%.

The shortage of skilled tradespeople, largely due to experienced workers aging out of the field, is not only boosting the number of job opportunities but also the pay.  
In fact, new construction hires earn more than new hires in the professional services, according to payroll-services provider ADP.
At the end of last year, median pay for new hires in construction was $48,089, up 5.1% from a year earlier. The median pay for new hires in professional services was nearly $10,000 lower, at $39,520, up just 2.7% from the year before.
“This is just the law of supply and demand,” said certified financial planner Ted Jenkin, CEO and founder of oXYGen Financial in Atlanta.

Gen Z is becoming the ‘toolbelt generation’

Roughly half, 49%, of high schoolers now believe a high school degree, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path, according to a report by Junior Achievement and Citizens Bank. 
Even more — 56% — believe that real world and on-the-job experience is more beneficial than obtaining a higher education degree. The survey polled 1,000 teenagers between the ages of 13 and 18 in July.

There’s an insulting presumption that a four-year college is the gold standard — it’s not.

Ted Jenkin
CEO and founder of oXYGen Financial

The college affordability crisis and the rise of alternative career pathways, together, are helping transform Generation Z into the so-called “toolbelt generation,” according to Jenkin, who is also a member of CNBC’s Financial Advisor Council.
“There’s an insulting presumption that a four-year college is the gold standard — it’s not,” Jenkin said.
From 2022 to 2023, enrollment in vocational programs jumped 16%, the National Student Clearinghouse found. And many of these young adults are benefiting from the secure job track and high earnings potential these vocational jobs now provide, Jenkin said.
“The delta between white-collar jobs and good blue-collar jobs is not that big anymore,” Jenkin said. “That gap is closing.”
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Today, women who are just starting out, between the ages of 20-24, account for about 50% of total employment, which means that young women are just as likely to work as young men, according to Federal Reserve data.
But women are still picking up a heavier load at home.
Pop culture continues to reflect this stubborn imbalance with a fresh, contemporary flare found in viral TikTok video and song lyrics like Taylor Swift’s.

Damircudic | E+ | Getty Images

Women have been making significant strides in their education and careers and working as much, if not more, than their male counterparts.
Today, women who are just starting out, between the ages of 20-24, account for about 50% of total employment, which means that young women are just as likely to work as young men, according to a recent analysis of Federal Reserve economic data.

That is at least until they reach an age when they often get married or have children, the Fed researchers found — a dynamic that has proved remarkably stubborn.

“The trend was inevitable,” said Teresa Ghilarducci, professor of economics at The New School for Social Research in New York.
Women have achieved parity in the workplace, “but not full equality,” she said.

‘I cry a lot but I am so productive, it’s an art’

From Taylor Swift song lyrics to viral TikTok trends, there’s a point in pop culture that is made clear: The daily grind has taken a toll on women. 
A line from the song “I Can Do It With a Broken Heart” off of Swift’s latest album, “The Tortured Poets Department,” hit home with her mostly female listeners: “I cry a lot, but I am so productive, it’s an art.”

More than 180,000 short-form video posts on TikTok featured the lyric.
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“It resonates with both millennials and Gen Zers, which I think indicates that Gen Z is feeling the same ‘girl-boss’ pressures that millennials famously grew up with,” Casey Lewis, a social media trend forecaster and author of newsletter After School, told CNBC in April.
“There’s a lot of pressure on young women,” Lewis said.
Another song also struck a chord this year: “I’m looking for a man in finance, trust fund, 6’5″, blue eyes…” Megan Boni first posted the song on a clip from her TikTok account @girl_on_couch on April 30. Her 20-second video has more than 58.4 million views and counting.
While it was originally intended as a fun take on single women with high expectations for who they date, “there are a lot of single women who are looking but not finding what they want,” according to Lewis.
That also helps explain why some women are opting out of the workforce entirely in favor of being a so-called “tradwife,” another one of 2024’s viral social media trends depicting women adhering to very traditional gender roles and embracing domesticity.
Young women, whether they’re married or not, are expressing a desire to “take a step out of the professional rat race,” Lewis previously said. Being a tradwife is “an excuse to step back and do less.”

But women are not doing less by any standard — nor were they back then.
Although women are more likely than men to take time out of the labor force or reduce the number of hours worked because of caretaking responsibilities, whether working or not, they still pick up a heavier load at home, according to a separate Pew Research Center survey.
“The lack of affordable childcare may be playing a role,” according to Richard Fry, a senior researcher at Pew.
“The childcare crisis, which was simmering prior to the pandemic, has come to a boil,” according to a KPMG analysis. Between 1991 and 2024, the costs for child care rose at nearly twice the pace of overall inflation.

Where are the men?

Meanwhile, men are steadily dropping out of the workforce, especially those between the ages 25 to 54, which are considered their prime working years.
A study by the Pew Research Center found that men who are not college-educated leave the workforce at higher rates than men who are. At the same time, fewer younger men have been enrolling in college over the past decade.
Often referred to as NEETs — neither in employment, education or in training — this cohort has been hardest hit by globalization and the decline of manufacturing in this country, according to Pew’s Fry.
“When you don’t get rewarded for working, you work less,” Fry said. “That is a basic tenet of labor economics.”

Last summer’s blockbuster “Barbie” movie captured that well, other economists say, “describing Ken as a young man in America who just has no place and no role,” according to Julia Pollak, chief economist at ZipRecruiter.
Still, overall, men continue to outpace women by other measures. 
Real median earnings for men who worked full-time, year-round increased by 3%. Meanwhile, real median earnings increased 1.5% for women who worked full-time, year-round, the Census Bureau found.
At the same time, 37% of women said they feel like they have to prioritize their partner’s career over their own — up slightly from 2023, according to Deloitte’s most recent Women at Work report, in part because their partner earns more but also due to societal or cultural expectations. More

More than 7 million adults of ages 65 and above rent instead of own their homes, according to the Joint Center for Housing Studies at Harvard University.
Here are the pros and cons to renting instead of owning your home later in life. 

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Older Americans make up the largest share of homeowners in the U.S. compared to other generations. However, many are renting in their retirement years. 
Most older adults, those at least 65 years old, own their homes, according to the Joint Center for Housing Studies at Harvard University. Yet, more than 1 in 5 older households — 7 million — rent instead of own, according to the 2023 Housing America’s Older Adults by the JCHS.

Renting in retirement years can be a positive because older people can avoid costly maintenance associated with the upkeep of a home. Renting also offers the flexibility to move vs. the complexity of selling a home, experts say.
“Renting often offers more amenities, less maintenance, more accessibility,” said Jennifer Molinsky, director of the housing an aging society program at the Joint Center for Housing Studies.
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However, older renters are subject to the same issue younger tenants face: rent price increases.
In 2022, half of all renter households, 22.4 million, were cost burdened, or spent more than 30% of their income on housing and utilities, the Center found in the 2024 State of the Nation’s Housing.

And unlike younger renters, adult renters in retirement years could be especially vulnerable to rent hikes because they are on fixed income, experts say.
“As a retired renter, you are faced each month with a housing expense for the rest of your life. It’s an expense that is not fixed, it is variable by market trends,” said certified financial planner Lazetta Rainey Braxton, CEO and president of The Real Wealth Coterie, a virtual wealth management and RIA firm.
 Braxton is also a member of the CNBC Financial Advisor Council.

Why there are less older homeowners

In 2023, older baby boomers made up the largest share of home sellers at 45%, according to the National Association of Realtors. They were most likely to downsize their home. NAR defined younger baby boomers to have been 59 to 68 years old in 2023, and older boomers, are ages 69 to 77.
Meanwhile in 2022, the homeownership rate among households ages 65 and over was 79.1%, slightly lower from 79.5% in 2021, the Joint Center for Housing Studies found. The record high was 81.1% in both 2004 and 2012.
Similarly, homeownership for those between the ages of 50 and 64 dropped to 74.2% in 2022 from the two-decade high of 80.4% in 2004. This group was hit by the Great Recession and suffered a loss of homeownership, according to Molinsky.
To be sure, it can be hard to regain homeownership at the cusp of retirement age, she said. Their lower homeownership rate will likely foreshadow lower ownership rates in the future, the Center found.
Meanwhile, people who didn’t buy a home in their 40s and 50s are now aging, so “you’re now seeing people who have always been renters coming into their old age,” said Teresa Ghilarducci, a labor economist, retirement specialist and professor of economics at The New School for Social Research. 

Pros and cons to renting in retirement years

Being a renter, however, doesn’t necessarily mean you’re worse off than homeowners, Ghilarducci explained.
The cost of maintaining your home will vary. Experts recommend budgeting between 1% and 4% of your home’s value annually to cover typical home maintenance costs, according to Homeguide.com. For example: If your house is valued at $450,000, expect to budget from $4,500 to $18,000 for costs to upkeep your home.
Even if you’ve paid for the upkeep of your home over the years, elements in your house don’t stop deteriorating in your retirement years, experts point out.
Capital improvements like fixing or replacing the roofs can be difficult, said Molinsky. Additionally, there are tasks you may not want to do yourself anymore, and it can be expensive to hire a professional, she added.
Homeowners spent an average $9,542 on home improvements in 2023, a 12% increase from a year prior, according to the State of Home Spending by Angi. At the same time, the amount of projects decreased to an average of 2.8 projects in 2023 from 3.2 in 2022. The survey polled 6,400 consumers between Oct. 22 and Oct. 23.

While a fair amount of attention is paid on affording a home in retirement, it’s important to also consider the care and services you might need in order to stay in that house, said Molinsky. More

Traders work on the floor of the New York Stock Exchange during afternoon trading on October 03, 2024 in New York City. 
Michael M. Santiago | Getty Images

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Here’s what CNBC TV’s producers were watching as stocks slid on Thursday, and what’s on the radar for the next session.

Jobs report on deck

Ahead of Friday’s jobs report, major indexes are all on pace to snap 3-week winning streaks.
The S&P 500 and Dow Industrials posted record closes on Monday. Both are down 0.7% so far this week.
The Nasdaq Composite hasn’t set a record close since July 10. It’s down 1.1% this week.
Economists polled by Dow Jones expect the U.S. added 150,000 jobs in September versus 142,000 in August. The unemployment rate is expected to hold steady at 4.2%.

Stock chart icon

The S&P 500’s performance in 2024

Energy gains

The S&P 500’s top performer

The S&P 500’s best performer this year added to its gains on Thursday… and it’s not who you may think.
Vistra Corp jumped about 5.7% to another all-time high. Shares are up 75% in the past month and a whopping 244% in 2024.
The S&P 500’s No. 2 stock, Nvidia, is up 148% year to date.
Constellation Energy (+137%) and Palantir (+128%) are the only other two S&P stocks that have more than doubled this year.

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Vistra Corp’s 2024 performance

Amazon losing streak

The tech giant posted its seventh straight negative session on Thursday, its longest losing streak since September 2023.
Amazon shares are down 6.2% in that period.
The stock is still up almost 20% this year.

Tesla tumbles

Shares of Tesla fell for a third straight day, and now on pace for their worst week since April.
The stock is down 8% since Monday’s close and is now down 3% for the year.
Shares of General Motors and Ford are struggling this week, each down about 3% in the period.

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Tesla shares in 2024

Meta magic

Shares of the Facebook parent rose 1.7% Thursday and closed at a fresh all-time high.
Meta Platforms shares are up nearly 14% over the past month and nearly 65% this year.

Weight loss drug shortage is over

The U.S. Food and Drug Administration removed Eli Lilly’s weight loss and diabetes drugs from its shortage list late Wednesday.
Lilly, which makes Mounjaro and Zepbound, saw shares down 0.6% on Thursday.
Novo Nordisk, the maker of competing Wegovy and Ozempic, was down 1.2%.
Meanwhile shares of Hims & Hers, which offers compounded GLP-1 treatments, dropped 9.6%.

China rally cools

Q3 earnings season coming up

Next week marks the start of Q3 earnings season with Delta Air Lines, PepsiCo and several big banks on the calendar.
Pepsi reports Tuesday before the bell. Shares are up 3.7% in the last three months.
Delta reports Thursday before the bell. Shares are up 0.2% over the past three months.
JPMorgan Chase and Wells Fargo come out Friday morning. JPM is down 1.7% and WFC down 9.4% in the past three months. More

As states work to recover from Hurricane Helene, they also have to watch for risks of price gouging and other scams that may crop up during the disaster recovery.
Here’s what consumers should watch for.

A van flows in floodwaters in the aftermath of Hurricane Helene on Sept. 28 in Asheville, North Carolina.
Sean Rayford | Getty Images News | Getty Images

States affected by Hurricane Helene are warning residents to watch for the risks of scams in the aftermath of the storm, including price gouging.
Price gouging happens when there is an excessive increase in prices charged for goods and services, and it often happens during emergencies or disasters.

North Carolina Attorney General Josh Stein this week said his office has seen an uptick of complaints of alleged price gouging related to fuel and grocery prices and hotel rates.
In a Wednesday update, Stein said his office had fielded more than 100 price gouging complaints, he posted on social media platform X on Wednesday, despite the state’s anti-price gouging law that went into effect with the declaration of a state of emergency.
A spokesperson did not return a call from CNBC for further comment.
“Most stores are bending over backwards to serve their communities,” Stein said in a video accompanying the post.
“But unfortunately, there’s always going to be a few folks out there who take advantage of this moment and people’s desperation to make a quick buck,” he said.

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Attorneys general in other states affected by the storm — including Florida, Georgia, South Carolina and Tennessee — have issued similar warnings.  They are among the 37 states that have anti-price gouging statutes in place.
Normal price fluctuations are not price gouging, South Carolina Attorney General Alan Wilson said in a recent announcement.
But when necessities like a case of bottled water go from $5 to $10, or a chainsaw that normally sells for $100 jumps to $500, it’s “pretty obviously” price gouging, said Teresa Murray, consumer watchdog director at U.S. Public Interest Research Group.
“You know it when you see it,” Murray said.
Price gouging laws tend to kick in during states of disaster or emergency or during abnormal market disruptions, she said.
“Just because there’s a law doesn’t mean that people won’t try and violate it,” Murray said.
The terms of established price gouging protections vary from state to state. Meanwhile, 13 states do not have anti-price gouging laws.

Vice president Kamala Harris is pushing for Congress to establish a national ban on price gouging with her presidential campaign’s economic agenda.
Yet critics — including former President Donald Trump — have said anti-price gouging laws could have unintended consequences for businesses and the consumers they are intended to help, such as interfering with the supply of goods.

How to watch for price gouging, other scams

Consumers who spot higher than normal prices they suspect is price gouging should first approach the business with their concerns, according to Murray.
“Be nice about it, but call them out,” Murray said.
If they are unwilling to change, you may report it to the state attorney general, she said.
Keep in mind you do not necessarily have to buy the item; a picture of the item on the shelf with the price will work, Murray said.
Price gouging is not the only scam consumers need to watch for in the aftermath of Hurricane Helene.
States are also warning of other schemes that tend to crop up during disaster recoveries.

Individuals may pose as representatives of the Federal Emergency Management Agency, as well as insurance companies, the Small Business Association or law enforcement.
To avoid those imposter scams, the Georgia Attorney General Chris Carr’s office warns not to share personal or financial information to individuals. Because FEMA and SBA services are free, consumers should be on alert if they’re asked to pay.
Likewise, residents of affected areas should also be wary of door-to-door offers for home repair work, as well as demands for full up-front or cash payments and offers to pay their insurance deductibles.
To avoid getting scammed, homeowners should talk to their insurance companies before making repairs and check out contractors by asking for references and looking to see if they have any complaints with the Better Business Bureau.
People who are in the market to buy a car should also be sure to check a vehicle’s history and where it came from before they make the purchase, to be sure they are not buying flood-damaged property, Murray explained.
Consumers can check a car’s history through the National Insurance Crime Bureau’s VINCheck as well as Carfax’s flood check.
Meanwhile, as people look to donate money to help the recovery, state attorneys general are also warning of the risk of charity scams.
To avoid sending money to the wrong place, donors can verify a charity by visiting websites Give.org or CharityNavigator.org. Also watch for websites that do not end in “.org” or “.com,” petitions for money over the phone and crowdfunding sites that may host unverified funding campaigns. More

The IRS free tax filing program, Direct File, will have 24 participating states for the 2025 filing season.
More than 30 million Americans will be eligible and Direct File has expanded to include more types of income, credits and deductions.

Internal Revenue Service Commissioner Danny Werfel testifies before the House Appropriations Committee on Capitol Hill on May 07, 2024 in Washington, DC. 
Kevin Dietsch | Getty Images News | Getty Images

Next year, more than 30 million Americans in 24 states will be eligible for Direct File, the IRS’ free tax filing program, the agency and U.S. Department of the Treasury announced on Thursday.
The Direct File pilot was open to limited taxpayers in 12 states for the 2024 filing season, including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

For the 2025 season, the program will add 12 new states, including Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin, the agencies told reporters on a press call.
More states are expected to join in 2026.
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Who can use IRS Direct File

“This year, taxpayers in Direct File’s 24 states will see far more tax situations covered than during last year’s pilot,” and the program will be available at the opening of tax season, IRS Commissioner Danny Werfel said Thursday on the press call. 
In 2024, the pilot program allowed simple filings — taxpayers with Form W-2 wages, Social Security retirement income, unemployment earnings and interest of $1,500 or less — but excluded contract income reported via Form 1099-NEC, gig economy workers and self-employed filers.

Next season, Direct File will also support interest income above $1,500, pension and annuity income (excluding individual retirement accounts) and Alaska Permanent Fund Dividends. 

During the pilot, Direct File supported the earned income tax credit, child tax credit and credit for other dependents.
For 2025, the program will add support for the child and dependent care credit, premium tax credit for Marketplace insurance, the credit for elderly or disabled and retirement saver’s credit.
Filers still must claim the standard deduction rather than itemizing tax breaks to participate.
Direct File will continue to allow certain “above-the-line” deductions, including tax breaks for student loan interest and educator expenses. In 2025, the program will also add support for health savings account contributions.
“Our goal is to gradually expand the Direct File scope to support more common tax situations, focusing in particular, on tax situations that impact working families,” Werfel said. More

ETF Strategist

Buffer exchange-traded funds, also known as defined-outcome ETFs, use options contracts to limit losses while capping upside potential.
As of August 2024, there were 327 buffer ETFs, representing more than $54.8 billion in assets, up from 73 ETFs and roughly $4.6 billion in August 2020, according to Morningstar Direct.
But buffer ETFs are complicated and more costly than traditional ETFs, experts say.

Jordi Mora Igual | Moment | Getty Images

If you’re seeking refuge from market volatility, so-called buffer exchange-traded funds provide some downside protection. But these ETFs also limit upside potential and come with higher fees, experts say.  
Buffer ETFs, also known as defined-outcome ETFs, use options contracts to offer investors a pre-defined range of outcomes over a set period. The funds are tied to an underlying index, such as the S&P 500.

These funds have been “one of the fastest-growing areas of the ETF market” over the past five years, with demand surging in 2022 as investors faced correlating losses from stocks and bonds, said Bryan Armour, director of passive strategies research for North America at Morningstar. 

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Here’s a look at other stories offering insight on ETFs for investors.

As of August 2024, there were 327 buffer ETFs, representing more than $54.8 billion in assets, up from 73 such ETFs and roughly $4.6 billion in August 2020, according to data from Morningstar Direct. 

The funds create a ‘buffer zone’

Buffer ETFs have an “outcome period,” which only applies if investors buy and hold the fund for a set window, typically one year.
During the outcome period, the funds have “a buffer zone” that protects investors from some losses and caps returns above a certain threshold, Armour explained.
For example, a buffer ETF could shield investors from the first 10% of losses while limiting upside returns to 15%. However, you may not get full upside exposure when buying midway through the outcome period.

Similarly, selling before the outcome period ends could limit downside protection.

People need to be aware that if they buy and sell during that period, they might not be getting what they think they’re signing up for.

Bryan Armour
Director of passive strategies research for North America at Morningstar

“People need to be aware that if they buy and sell during that period, they might not be getting what they think they’re signing up for,” Armour said.
Plus, buffer ETF investors typically don’t receive dividends, which have contributed up to 2.2% annual returns to the S&P 500 over the past 20 years, according to Morningstar.
Another downside is the assets have higher fees than traditional ETFs, with 0.8% for the average buffer ETF compared to 0.51% for the average ETF, Armour said.
Overall, the biggest drawback is “opportunity cost,” depending on your alternative investment options, he said.

The benefits of buffer ETFs

Despite the trade-offs, buffer ETFs could be attractive to more conservative investors, depending on their goals, risk tolerance and timeline, experts say.
“I really like these buffered ETFs and have been using them for client portfolios for a while,” said certified financial planner David Haas, president of Cereus Financial Advisors in Franklin Lakes, New Jersey.
On top of some downside protection and market exposure, buffer ETFs also offer “immediate liquidity” if you need access to the cash, he said.
Armour said the ETFs could work best for investors with “low risk tolerance” and a shorter timeline, so long as they understand how this asset works. More