Tuesday's Scoop: Floating 🌤️

Hey friend - welcome back to your daily scoops on the economy and companies impacting your life.

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

1. The excess supply of job openings has nearly dried up.

2. Nationwide landlord collusion may be to blame for skyrocketing rents.

3. Europeans are getting free electricity thanks to solar and wind power surpluses.

Unemployment Rate: 3.9%
^{Still near the lowest rate in 50+ years}

The excess supply of job openings has nearly dried up. Companies have dramatically reduced their hiring plans but aren’t letting their workers go. The Labor Department’s April Job Openings and Labor Turnover Summary (JOLTS) revealed open roles dropped to 8.1 million, their lowest since February 2021. This decline means there are now fewer job openings for each job seeker, down from 1.3 to 1.24 openings per unemployed person. It’s much closer to the ~7 million openings pre-pandemic. Despite the decrease, layoffs remain at the lowest level since December 20202, and the number of people quitting their jobs is stable, suggesting the job market is normalizing rather than collapsing.

Global Energy Emissions: 37.4 billion tonnes of CO₂
^{An all-time high, up 1.1% from 2022. (IEA)}

Europe experienced an unusual surge in free electricity thanks to a significant oversupply of solar and wind power last month. This surplus led to negative electricity prices, benefiting over a million consumers who could charge their vehicles and heat their homes at no cost. While this is great when the wind is blowing and the sun is shining, it indicates that there is not enough energy storage yet in the system to collect the power in times of excess and redistribute it when natural energy slows. Ironically, the strength of wind and solar power could also slow investment in renewable energy projects, as frequent negative pricing diminishes financial returns. The solution lies in expanding energy storage capabilities to balance supply and demand, ensuring the continued growth of renewable energy without destabilizing the market.

30yr Mortgage Rate: 7.1%
^{That’s up from 6.7% a year ago. (MBA)}
Median Home Price: $407,600
^{That’s up from $386K a year ago. (NAR)}

Rents have surged over 30% in the past four years, partly due to corporate landlords allegedly conspiring to inflate prices. The FBI recently raided Cortland Management, a prominent Atlanta landlord, as part of a broader investigation into this potential conspiracy. At the center of the probe is RealPage software, which supposedly helps landlords fix prices by sharing detailed rental data. This practice has led to artificially high rents, affecting millions of tenants nationwide. The outcome of this investigation could have significant implications for rental markets nationwide.

The Market: ⬆️ +0.2%
S&P 500: 5,291.34
1Mo: +2% | 1Yr: +24% | 5Yr: +84%

The market drifted sideways again today without much major news to shift the narrative that the economy is slowing but not enough to encourage policymakers to reduce the cost of borrowing money. The hiring market has dried up significantly since last year.