Thursday's Scoop: Bounce🌥️

Hey friend - welcome back to the scoops on what’s happening in the economy and companies impacting your life. Want more content? Check us out on TikTok.

Insiders, look out for the Weekly Scoop tomorrow.

Here’s what you need to know today to inform your work, spending, and investments…

1. Companies have cut back on layoffs.

2. Global leaders have moved closer to a treaty to limit plastic waste.

3. Millions of Americans will lose financial support for internet service this month.

Unemployment Rate: 3.8%
^{Still near the lowest rate in 50+ years}

Companies have grown more cautious about layoffs. The Labor Department reported initial jobless claims remained low last week at 208,000. The number of people receiving unemployment benefits for consecutive weeks also stayed the same. Another report from placement firm Challenger, Gray & Christmas said planned corporate layoffs dropped 28% from March. So far this year, layoff announcements from big firms are 4.6% lower than last year. Tomorrow’s official jobs report will be important to watch.

Inflation Rate: +3.5% (YoY), +0.4% (MoM)
^{Policymakers aim for 2% YoY inflation. (CPI)}

Twenty-three million families in the US will lose financial support for internet service this month. The Affordable Connectivity Program, a federal subsidy program that distributed $30 a month to low-income families, officially ended this week, and final funds will be distributed through the end of May. The program was funded with $14B from the infrastructure bill in 2021, but lawmakers have not been willing to compromise on continued funding. The Federal Communications Commission reported that 80% of ACP households will be forced to switch to a lower-tier plan or cancel their internet service altogether.

This week, world leaders moved closer to a landmark treaty to control plastic waste. At the fourth Intergovernmental Negotiating Committee on Plastic Pollution session, United Nations leaders made progress toward formalizing a treaty restricting certain toxic chemicals, capping plastic pollution, and outlining a financing process for implementing the regulations. The most crucial component - actually limiting plastic production - has not yet been thrown out of consideration, but there’s a lot of pushback from powerful plastic producers. Most plastic comes from fossil fuels, and the industry isn’t ready to watch its fallback industry fail alongside fossil fuel energy. The industry has invested heavily in plastic manufacturing in recent years, with production projected to double or triple by 2050. The United Nations will meet at a final time in November to decide on the ultimate terms of the treaty.

The Market: ⬆️ +0.9%
S&P 500: 5,064.20
1Mo: -3% | 1Yr: +23% | 5Yr: +72%

The market floated higher on Thursday after a stretch of negativity. Investors are worried that inflation is rising while the economy slows. Reports from consumer-facing companies like McDonald's and Kraft confirmed that people are tightening their budgets.