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- Tuesday's Scoop: Holding 🌤️
Tuesday's Scoop: Holding 🌤️
Lowe's dials back diversity & Intel's board bails
Scoops Team
August 27, 2024
Hey friend - welcome back to your daily scoops on the economy and companies impacting your life.
Notice: There will be no scoops during the weeks of Labor Day, the 9th and 16th, as I’ll be traveling for my honeymoon. If you need anything or have any questions about what’s happening in the world, don’t hesitate to email [email protected].
Here’s what you need to know today to inform your work, spending, and investments:
🌎 Big picture
Americans are feeling a bit more confident about the economy this month.
Home prices have started to fall a little.
The Nasdaq wants to offer a new way to bet on Bitcoin prices.
How are you feeling about the economy? |
💼Work trends
Unemployment Rate: 4.3%
Relatively low, but up from record lows
Americans are feeling a bit more confident about the economy this month. The Conference Board’s Consumer Confidence Index rose to a six-month high in August, driven by improved perceptions of business conditions. Despite the rise in confidence, more people reported that jobs are getting harder to find, raising more concerns about the hiring market after the unemployment rate hit a nearly three-year high in July.
🏠Housing trends
30yr Mortgage Rate: 6.5%
That’s down from 7.2% a year ago. (MBA)
Median Home Price: $422,600
That’s up from $406K a year ago. (NAR)
Home prices have started to fall a little. The Federal Housing Finance Agency said the cost of the average single-family home fell 0.1% in June from the month before, up only 5.1% over last June. That’s the slowest year-over-year increase since last summer. High mortgage costs have stalled home sales and kept prices relatively steady for several months. Low affordability has sidelined potential home buyers, but low supply has kept prices from falling. Homeowners with cheap or no mortgages are reluctant to sell and face higher mortgage costs on their next home. Mortgage rates have fallen in the past month, sparking a pickup in sales activity.
📈Investment trends
The Market: ⬆️+0.2%
S&P 500: 5,625.80
1Mo: +3% | 1Yr: +27% | 5Yr: +92%
The market drifted sideways again on Tuesday as investors waited out the slow news week. Tomorrow's slew of financial reports from major tech companies will provide more insight into the industry and the longevity of the AI boom.
The Nasdaq wants to offer a new way to bet on Bitcoin prices. The stock exchange has asked regulators for permission to launch options based on a Bitcoin index. These options would let investors and traders make bigger bets on Bitcoin's price moves without buying the cryptocurrency directly. It would also provide another tool to hedge their bets. If approved, it could make investing in Bitcoin easier for more people. However, the government hasn't said yes yet and is still considering it.
🤓 Inside Scoop: What is the purpose of financial options?
Options are aptly named, giving us more flexibility of choice as we invest. Investing in options is primarily used to hedge risk, speculate on stock price movements, or generate income. Options allow investors to leverage their position with a lower initial investment than buying stocks outright. They offer the flexibility to bet on stock price movements without necessarily owning the underlying stock.
Despite the smaller required investments, options are not for beginner investors. They are complex financial products with unique risks.
🏭 Companies worth watching
👍👎 APPROVAL RATINGS
How are these companies doing? Judge their decisions. Investing starts with an opinion. (+2 pts)
 Lowe’s | Dialing Back Diversity Lowe’s will discontinue collaboration with LGBTQ advocacy groups, end support for Pride events, and merge its minority employee resource groups amid a backlash against corporate diversity initiatives. The home improvement retailer will focus on community engagement related to housing, disaster relief, and skilled trades education.
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💭Broader perspectives… (+2pts)
Should companies participate in LGBTQ Pride events? |
 JPMorgan Chase | Cash Clash America's biggest bank is being sued for allegedly placing customers' unused cash into accounts with low interest rates, profiting at their expense. The lawsuit raises concerns about Chase's transparency and fairness in its financial practices.
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 Eli Lilly | Price Drop Eli Lilly released a smaller version of its blockbuster weight loss drug, Zepbound, at half the price, improving access for patients without insurance and meeting soaring demand. The smaller doses are easier to produce, helping the drugmaker reduce supply shortages and prevent unlicensed copycats.
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 Intel | Board Breakup A key Intel board member resigned over differences with CEO Pat Gelsinger, citing concerns about Intel’s bloated workforce and risk-averse culture. The chipmaker has struggled with its turnaround efforts, recently slashing its workforce and pausing its dividend payments.
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 Nordstrom | Looking Up Nordstrom posted decent sales growth last quarter, despite the broader shopping slowdown, thanks to success with its off-price Nordstrom Rack brand. The retailer's cost-cutting efforts have paid off with improved profitability over the last six months.
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🛠️ Recommended resources (+2pts)
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