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Wednesday's Scoop: Holding🌤️

Wednesday's Scoop: Holding🌤️

Microsoft bans police facial recognition & the Bud Light boycott still stings

Scoops Team
May 08, 2024

Hey friend - here’s what you need to know today to inform your work, spending, and investments…

🌎 Big picture

High mortgage rates continue to deter home buyers.
Oil prices have come down.
Companies continue to forecast underwhelming profits for the year ahead.

How are you feeling about the economy?

👍 | 👎

👜 Cost of living trends

Inflation Rate: +3.5% (YoY), +0.4% (MoM)
^{Policymakers aim for 2% YoY inflation. (March CPI)}

Oil prices have come down amid easing geopolitical tensions and lower demand. Crude prices have fallen over 7% in the past month as investors perceived tensions between Israel and Iran to have cooled slightly. There’s also much less gasoline demand than usual. Reuters reported that refinery utilization rates increased last week but are still significantly lower than last year. Gasoline demand is still below 9 million barrels per day despite the start of the busy travel season. A slowing economy and rising prices have led businesses and consumers to cut back.

🏠 Housing trends

30yr Mortgage Rate: 7.2%
^{That’s up from 6.6% a year ago. (MBA)}
Median Home Price: $393,500
^{That’s up from $375K a year ago. (Existing homes - NAR)}

Mortgage costs keep climbing and deterring home buyers. The Mortgage Bankers Association reported the average 30-year mortgage rate reached 7.2% last week, down slightly from the week before but double what mortgages cost roughly two years ago. Applications to buy a new home are down 17% from last year.

📈 Investment trends

The Market: ⬇️ -0.001%
S&P 500: 5,187.67
1Mo: -1% | 1Yr: +25% | 5Yr: +80%

The market didn't move much on Wednesday as investors worked through the last of the first-quarter financial reports. Investors are paying close attention to executives' forecasts for profits for the rest of the year. Companies reporting blowout quarters still watch their stock prices tank if their guidance for the next quarter isn't significantly higher than investors already expected.

🤓 Inside Scoop: What’s the difference between top and bottom line?

Investors and commentators often evaluate a company's top-line and bottom-line growth statistics. The top line refers to the company's gross sales or revenue, essentially how good the company is at bringing in money. The bottom line refers to net income or profits after accounting for all of the company's expenses, indicating how strong the company is at managing its overhead and operational costs. The terms come from the figures' location on the income statement in the company's financial reports.

🏭 Companies worth watching

👍👎 APPROVAL RATINGS

Vote and practice your board member voice. It accelerates your comprehension and comfort with these topics. (+2 pts)

Microsoft

AI Enforcement

Microsoft banned US police organizations from using its OpenAI artificial intelligence software for facial recognition, given the potential hallucinations and racial bias.

The tech giant just released a top-secret AI to analyze data for US spies, the first large language model fully disconnected from the internet.

Tell Microsoft's CEO how you feel

👍 | 👎

💭 Broader perspectives… (+ 2pts)

Would you feel more or less safe knowing the police were using AI facial recognition technology?

Anheuser-Busch InBev

Boycott Bruises

The world's largest brewer believes it has almost recovered from the US Bud Light boycott sparked by its partnership with an LGBTQ influencer, reporting climbing global revenue.

AB InBev's US sales volumes were down 10% from last year, while most other regions grew.

Tell AB InBev's CEO how you feel

👍 | 👎

Uber

Costly Model

Uber swung to a surprising loss last quarter after achieving profitability for the first time last year, reporting large one-time expenses that overshadowed surging delivery and rideshare growth.

Uber took a $178M hit from a settlement with Australian taxi drivers, highlighting its expensive growth model challenging laws and customs.