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- Tuesday's Scoop: Hopeful☀️
Tuesday's Scoop: Hopeful☀️
Apple forces more updates & Shell backs off biofuels
Scoops Team
July 02, 2024
Hey friend - welcome back to your daily scoops on the economy and companies impacting your life.
Don’t miss our Instagram LIVE session tomorrow at noon EST with Future. We’ll discuss how you can win $500 for everyday sustainable choices. More details on the competition are below in our Resources section!
Here’s what you need to know today to inform your work, spending, and investments…
🌎 Big picture
The abundance of available jobs is gone.
The New York real estate market is finally starting to slow.
Gas prices could rise in the weeks ahead.
How are you feeling about the economy? |
💼 Work trends
Unemployment Rate: 4.0%
Still near the lowest rate in 50+ years
The abundance of available jobs is gone, but layoffs and unemployment are still low. Job openings in the US rose by 221,000 to 8.14 million in May, according to the Labor Department's latest Job Openings and Labor Turnover Survey report. Despite the slight increase in May, the number of available positions has gradually shrunk over the past few years. The ratio of job vacancies to unemployed workers is down to 1.22, the lowest since 2021 and back in line with pre-pandemic labor conditions. The layoff rate and number of quits remained unchanged, both indicating less movement in the jobs market.
👜 Cost of living trends
Inflation Rate: +3.3% (YoY), +0.0% (MoM)
Policymakers aim for 2% YoY inflation. (May CPI)
Gas prices could rise in the weeks ahead. US oil prices approached a new 12-month high this week ahead of the Fourth of July holiday, driven by fears of a Middle East conflict and expected summer fuel demand. Despite the increase, the national average for gasoline stands at $3.49 per gallon, down about 5 cents from last month. A record 60 million drivers are expected to hit the roads, potentially pushing gas prices up. Hurricane Beryl poses a risk to Gulf Coast oil infrastructure, but current forecasts suggest minimal production impacts. Summer is typically the time of peak energy demand and gas prices.
🏠 Housing trends
30yr Mortgage Rate: 6.9%
That’s up from 6.7% a year ago. (MBA)
Median Home Price: $419,300
That’s up from $397K a year ago. (NAR)
The New York real estate market is finally starting to slow. America's most expensive rental market is turning into a buyer's market, with apartment prices dropping and inventory rising. In the second quarter of 2024, the average sales price fell by 3% to just over $2 million, and the median price dipped 2% to $1.2 million, according to a report by Douglas Elliman and Miller Samuel. This decline was driven by increased available apartments, which now total over 8,000, well above the 10-year average. High rents, averaging over $5,100 per month, are pushing renters to buy, leading to a 12% increase in sales compared to last year. Despite the high prices, 62% of sales were in cash, showing the unique dynamics of Manhattan's real estate market where high mortgage costs haven’t deterred wealthy buyers.
📈 Investment trends
The Market: ⬆️ +0.6%
S&P 500: 5,509.01
1Mo: +4% | 1Yr: +24% | 5Yr: +84%
The market climbed to a new record high on Tuesday after the Chairman of the Federal Reserve fueled hope for an end to high borrowing costs. Chairman Powell commented that inflation seems more under control, inviting policymakers to consider reducing the high interest rates meant to slow borrowing and spending.
🤓 Inside Scoop: Why is the Federal Reserve so important?
The Federal Reserve, aka the Central Bank, aka The Fed, is in charge of our whole money system. When the economy is struggling, the Fed lowers baseline interest rates to make it cheaper for consumers and businesses to borrow and spend (lower rates on business loans, mortgages, credit cards, car leases, etc.)
The Fed also pumps more money into the system by buying bonds with new dollars that it essentially speaks into existence. The additional cash keeps the pipes flowing as the borrowing and spending heat up, stimulating economic activity.
Once the economy is strong enough to stand on its own, the Fed starts raising interest rates and pulling back some of that money to ensure the economy doesn't overheat. Inflation is the Fed's heat gauge. The gauge was reading very hot after the pandemic, so the Fed started raising interest rates to cool things down.
🏭 Companies worth watching
👍👎 APPROVAL RATINGS
How are these companies doing? Judge their decisions. Investing starts with an opinion. (+2 pts)
 Apple | Forced Upgrades Apple will provide fewer software updates and limited repair support for iPhone X, original AirPods, and HomePod after reclassifying them as vintage. The tech giant recently settled a $500M lawsuit over purposely slowing older versions to force customers into a faster upgrade cycle that increases costs and multiplies electronic waste.
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💭 Broader perspectives… (+2pts)
iPhone users, what's the main thing that keeps you from switching? |
 Tesla | Building Back Tesla reported delivering nearly 444,000 vehicles in Q2 2024, a 15% increase from Q1, though still 5% fewer than the same quarter from last year. The electric carmaker has battled waning demand and a weak Cybertruck reception, but production has improved.
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 Nikola | Hydrogen Highs Nikola delivered 80% more hydrogen fuel cell trucks last quarter as demand for clean energy semi trucks surged from new clients like Walmart Canada. The electric truck startup shifted to hydrogen trucks after having to recall all its battery-electric vehicles in 2023.
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 Moderna | Flu Fighter Boost Moderna earned $176M from the US government to rapidly develop a bird flu vaccine amid H5N1 outbreaks in dairy herds and infections among workers. The funds will help the drugmaker complete late-stage trials for its mRNA-based vaccine, which will begin testing in 2025.
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 Shell | Cutting Biofuels Shell paused construction of what was meant to be one of the largest European biofuel plants producing sustainable aviation fuel and renewable diesel from agricultural waste. The oil giant has recently slowed investment in clean energy projects in favor of its more profitable fossil fuel business despite its pledge to reach net zero carbon emissions by 2050.
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🛠️ Recommended resources (+2pts)
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