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Thursday's Scoop: Drifting🌤️
Boeing's next malfunction & Shell's climate pressure
Scoops Team
January 18, 2024
Hey friend - things are really heating up with our app development. More updates coming soon.
Here’s what you need to know today…
Big Picture
Companies seem reluctant to lay workers off right now.
The housing shortage isn’t getting much better.
Congress avoided a government shutdown by procrastinating for a third time.
The Market: ⬆️ +0.9%
S&P 500: 4,780.94
1Mo: +1% | 1Yr: +23% | 5Yr: +79%
The market floated higher today after two days of negativity. Corporate financial updates have been mixed, leaving investors unsure whether things are rebounding or turning sour.
Companies seem to be hesitant to cut workers amidst so much uncertainty. The Labor Department reported initial unemployment claims fell again last week to 187,000, the lowest level in nearly a year and a half. Continuing claims from those who have been out of work for consecutive weeks also dropped again, a good sign that people can find jobs.
A housing shortage is keeping prices high, and it doesn’t seem like that will change anytime soon. The Commerce Department reported new home construction fell last month due to abnormally wet weather. However, single-family construction permits rose 1.7% to the highest level since May 2022. Rising permits combined with an earlier report of a steep spike in homebuilder sentiment could mean relief is coming. However, the National Association of Realtors said the inventory of previously owned homes on the market is nearly half of what it was before the pandemic.
Congress passed another Continuing Resolution to avoid a government shutdown. Unable to agree on the annual budget, Congress chose to formally procrastinate for a third time. The House, Senate, and President have to agree to an annual budget every year by October 1st. This year, they couldn’t come to terms. The House fired the Speaker for the first time ever and passed the first Continuing Resolution to delay a decision for six weeks. In November, they did it again. Congress has now given themselves until March to determine the budget for the year that’s nearly a third gone.
How are you feeling about the economy? |
Company Scoops 🗣️🌎💰
💡Join the board at America’s biggest companies. Vote and judge their decisions.
 Boeing | More Issues A critical malfunction in a Boeing aircraft disrupted travel for the US Secretary of State just weeks after a door from a Boeing plane blew off during an Alaska Airlines flight. Boeing has been under investigation by safety regulators. |
 Robinhood | No More Games Robinhood will pay $7.5M to settle a lawsuit over its strategy to make trading feel like a game that lured inexperienced investors into risky bets. The trading platform has removed many of the features and improved its user data protections. |
 Airbnb | Community Support Airbnb, often blamed for contributing to the housing affordability crisis by driving up rents, created a new council to find solutions to increase home supply and lower prices. The council's efforts will include philanthropy and lobbying. |
 Humana | Costly Care One of the biggest Medicare Advantage insurers said medical costs spiked in the fourth quarter as more seniors sought care, eating into its profitability as it paid more premiums. Humana also hasn't seen as many new enrollments as in past years. |
 Shell | Transition Pressure A group of 27 investors owning 5% of the company has filed formal demands that Shell accelerate its transition to clean energy and set targets to reduce pollution more quickly. Shell's new CEO dialed back its transition plans last year. |
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Inside Scoop 🤓
What is a Continuing Resolution?
When Congress needs a last-minute extension for their main assignment, they pass a Continuing Resolution. A Continuing Resolution (CR) is a temporary funding measure used by the US Congress to keep the federal government running when the annual budget hasn't been finalized by the start of the fiscal year (October 1).
Instead of passing a full budget, Congress approves a CR to provide funds for a short period, allowing more time to negotiate and finalize the budget details. It typically maintains the previous year's funding levels for agencies and programs.
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