Finance U — Issue #1

Welcome to the 1st Issue of Finance U — June 6, 2025

📈 Wall Street & Beyond

S&P 500 Nears All-Time Highs

The S&P 500 is on the verge of breaking its all-time high, recently closing at $5,970.81 on June 4th, which is less than 3% below its February 2025 peak of $6,144.15. This upward momentum is largely driven by strong earnings and investor confidence in AI-driven tech companies like Nvidia, Microsoft, and Apple.

Why it matters: Markets are pushing higher even with interest rates still elevated. This signals investor belief in long-term economic growth and profitability, especially in the tech sector.

Student Takeaway: If you’re a student investing through a Roth IRA, brokerage app, or just watching the markets, this is a great time to study how major indexes work. The S&P 500 is more than a number, it's a reflection of overall confidence in the economy.

Inflation Nears Target, Fed Plays it Safe

The Federal Reserve recently released minutes from its early May meeting, revealing growing caution among officials as they weigh inflation risks and economic uncertainty. While inflation remains slightly above the 2 percent target at 2.3%, it’s showing signs of trending in the right direction. With that in mind, the Fed is expected to hold interest rates steady, with the next meeting set for June 17–18.

Why it matters: The Fed’s decisions affect borrowing costs for everything from student loans to car payments. When the Fed pauses, markets tend to breathe a little easier, but uncertainty still lingers.

Student takeaway: Understanding how to interpret Fed statements is key for both your personal finances and interview prep. Pay attention to how inflation, job data, and interest rates move together. This is the foundation of macroeconomics and modern markets.

🧠 Finance 101: The Income Statement

What to Know

The income statement, also known as a profit and loss (P&L) statement, provides a summary of a company's financial performance over a specified period, usually a quarter or a year. It’s one of the three core financial statements, alongside the balance sheet and the cash flow statement.

Think of it as a company’s financial report card. It shows how much the business earns, spends, and keeps as profit. If you’ve ever tracked your own spending or tried to figure out if you made more than you spent, you’ve already done something like this. The income statement does the same thing, but for an entire company.

Key sections to know:

• Revenue: Total sales or income earned

• Cost of Goods Sold (COGS): Direct costs to produce what was sold

• Gross Profit: Revenue minus COGS

• Operating Expenses: Costs to run the business, like salaries, rent, and marketing

• Operating Income (EBIT): The profit a company makes from its core business activities, after deducting operating expenses

• Net Income: Final profit after all expenses, interest, and taxes. This is also called the bottom line

Why it matters: The income statement helps tell you if a company is actually making money. Investors and analysts often look at this statement first when evaluating a company’s performance.

Student takeaway: Start by looking up the income statement for a company you know, such as Apple, Nike, or Starbucks. Pay attention to how revenue and net income have changed over time. Learning the structure of this statement is one of the easiest ways to build real-world finance skills and can help you stand out in interviews, investing, and coursework.

🔦 Term Spotlight: EBITA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a way to measure how much a company earns from its core operations before subtracting non-operating costs.

EBITDA is not always listed as a separate line on the income statement, but you can calculate it using numbers that are. Start with operating income (EBIT) and then add back depreciation and amortization, which are usually listed in the notes or the cash flow statement (which we’ll cover soon).

EBITDA = Operating Income + Depreciation + Amortization

Student takeaway: When you look at an income statement, go beyond net income. EBITDA gives you a clearer picture of how well the company’s actual business is performing. Understanding how to calculate and interpret EBITDA is a valuable skill for both investing and interview prep.

💼 Prep Like a Pro: Build an Internship Tracker

If you're applying to multiple internships (you should be), it can be easy to lose track of where you've applied, which version of your resume you used, or who you’ve spoken to within the firm. An internship tracker helps you stay organized and sharp.

What to include:

• Company Name

• Position and location

• Date applied

• Resume version used (you should tailor your resume slightly for each role or firm you’re applying to)

• Contact of person or recruiter (if applicable)

• Interview status and date

• Notes from any networking calls or coffee chats

Student takeaway: Create your tracker in Excel, Google Sheets, or Notion so it's easy to update and access from anywhere. Add filters by deadline or role type, and use conditional formatting to highlight where follow-ups are needed. Keeping everything in one place will help you stay focused, avoid duplicate applications, and feel more prepared & confident during interview season.

🧰 Toolbox: Resources to Reinforce Learning

🍿 Watch: This video breaks down the income statement in simple terms, step by step. Taught by a former investment banker, It’s perfect for taking a deeper dive into the income statement if you're a beginner or just want a quick refresher on how it works.

📚️Read: This simple article offers tips on customizing your resume content for finance and accounting roles. It discusses the importance of highlighting areas that align with the job description and optimizing your resume for applicant tracking systems.

⬇️ Download: This Notion article features 10 free templates to help you track your internship applications. There are a variety of styles to choose from, so go with one that makes the most sense for how you work and the way you like to stay organized.

🔁 The Rundown

In the 1st issue of Finance U, we looked at why the S&P 500 is approaching all-time highs and how the Fed’s interest rate pause reflects easing inflation. We broke down the income statement for beginners, introduced EBITDA as a tool for analyzing business performance, and shared tips for tracking your internship search and tailoring your resume. Plus, we wrapped it up with resources to reinforce what you learned.

✝️ Verse of The Week

Proverbs 16:3 “Commit your work to the Lord, and your plans will be established”

Student Takeaway: In a world that pushes hustle and self-reliance, this verse is a reminder to invite God into your plans. Planning and preparation are important, but so is trusting God with the outcome. Whether you're applying for internships, building new skills, or managing your finances, true success starts with surrender. When you commit your work to Him, you're not just chasing achievement, you're pursuing purpose.

Thanks for reading the first issue of Finance U!

Feel free to reply with feedback, share with a friend, or let me know what you would like to see in future issues.

-Wrigley Stevens