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  • Thursday's Scoop: Pause🌤️

Thursday's Scoop: Pause🌤️

Philip Morris pauses Zyn online & Boeing takes heat

 
Hey friends - I hope you took some time to rest and honor the Juneteenth holiday yesterday.
Thanks for your patience with our break on Tuesday. I had the privilege of traveling to DC to speak at Georgetown University.
Insiders, there will be no Weekly Scoop tomorrow, given the short week.
Here’s what you need to know today to inform your work, spending, and investments…

 

🌎 Big picture

  1. People aren’t spending as much.

  2. Layoffs are still pretty low.

  3. There’s no end in sight for the housing shortage.

How are you feeling about the economy?

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Check out more newsletter recommendations from Beehiiv (+2 pts):

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 💼 Work trends

Unemployment Rate: 4.0%
Still near the lowest rate in 50+ years

Layoffs are still pretty low. The Labor Department reported that initial unemployment claims fell to 238,000 after rising to the highest level in nine months last week. While there has been a pickup in layoffs across various sectors, including education, transportation, manufacturing, and healthcare, the overall weekly rate is still fairly low. Continuing claims, those requesting unemployment insurance for consecutive weeks, rose to the highest level since January. This could indicate that it is growing more challenging to find a job.

 

 👜 Cost of living trends

Inflation Rate: +3.3% (YoY), +0% (MoM)
Policymakers aim for 2% YoY inflation. (May CPI)

Shopping and spending continue to slow as Americans feel the strain of high living costs. Amid lower gasoline prices and promotional offers in certain categories, the Commerce Department reported a modest 0.1% increase in retail sales in May, with five out of thirteen tracked categories showing declines. Sales numbers aren’t adjusted for rising prices, so economists see this as a warning sign for the economy. Consumer spending accounts for two-thirds of total economic output, so economic growth depends on Americans spending more each month. 

 

🏠 Housing trends

30yr Mortgage Rate: 6.9%
That’s up from 6.7% a year ago. (MBA)
Median Home Price: $407,600
That’s up from $386K a year ago. (Existing homes - NAR)

There seems to be no end in sight for the nationwide housing shortage. The Commerce Department reported that the number of new home construction starts in May fell by 5.5%, reaching the lowest rate since June 2020. The number of permits issued for new construction also tumbled. Rising mortgage costs and low home affordability have slowed home sales and weakened the desire to build more. The National Association of Home Builders reported homebuilders' confidence hit a six-month low in June. Limited affordable housing supply has kept home prices from falling, and slowing construction efforts won’t help.

 

 📈 Investment trends

The Market: ⬇️ -0.3%
S&P 500: 5,473.17
1Mo: +3% | 1Yr: +25% | 5Yr: +86%

The market took a breather from its record-breaking run on Thursday, drifting slightly lower after notching more than 30 new record highs this year. Big Tech stocks have pulled the broader market higher, fueled by enthusiasm for AI, despite growing concerns about the economy's health.

 🤓 Inside Scoop: Can you invest in real estate through the stock market?

We can’t buy land on the stock market - only stocks. However, we can invest in companies and funds that give us exposure to real estate assets, providing some of the benefits of real estate investing without actually owning property.

Investing in REITs (Real Estate Investment Trusts) means investing in companies that own or finance real estate rather than directly purchasing land or property. REITs can include a variety of real estate sectors, such as commercial, residential, healthcare, and others, offering investors a way to gain exposure to real estate markets without owning physical properties.

REIT investments have characteristics of both stocks and real estate, presenting different risks and volatility than investing in land directly. We must understand the companies, not just their underlying real estate investments.

🏭 Companies worth watching

👍👎 APPROVAL RATINGS

Join the board at America’s biggest companies. Vote and judge their decisions. (+2 pts)

Phillip Morris

Zyn Bans

The world's largest cigarette maker ceased online sales of its Zyn nicotine pouches due to potential sales to locations that have banned these kinds of flavored products.

Philip Morris could face millions in fines, but Zyn has been a massive growth product since it acquired the controversial brand in 2022.

Tell Phillip Morris' CEO how you feel

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 💭 Broader perspectives… (+2 pts)

Should the government ban nicotine products?

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Boeing

Uncovering Issues

America's biggest planemaker is under fire for mishandling and losing track of faulty parts that may have accidentally been installed in delivered planes - the latest manufacturing shortcoming raised by mounting insider reports.

Boeing faces potential charges from the Justice Department, and the Senate roasted Boeing's CEO over its broken safety culture.

Tell Boeing's CEO how you feel

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Amazon

Straining Labor

Regulators served America's 2nd-largest employer nearly $6M in fines after finding 59,017 violations of safe labor laws at two warehouses regarding productivity quotas.

Amazon's new worker union became more powerful by officially affiliating with one of the nation's largest unions, the Teamsters.

Tell Amazon's CEO how you feel

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Ferrari

Luxury EV Debut

Ferrari, renowned for its high-end gas engines, unveiled plans for its first electric car, which will cost over $500,000 and be produced in a new facility.

The carmaker aims to meet shifting demand while preserving its exclusivity.

Tell Ferrari's CEO how you feel

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Exxon Mobil

Legal Failure

Exxon won't yet be able to block activist investors from repeated calls to reduce its climate impact after a Texas judge dismissed the case following the investor's withdrawal.

The oil giant may continue looking for legal options to limit investor demands to transition away from fossil fuels.

Tell Exxon's CEO how you feel

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