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  • Wednesday's Scoop: Juiced 🌤️

Wednesday's Scoop: Juiced 🌤️

Meta's protest suppression & American's wage offers

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

 

🌎 Big picture

  1. Hiring slowed last month, and wages aren’t rising as quickly.

  2. Parts of the economy signaled a rebound in May.

  3. This year’s hurricane season could be more destructive than usual.

How are you feeling about the economy?

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 💼 Work trends

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

Hiring slowed significantly in May. Private employers added only 152,000 jobs, marking the lowest monthly increase since January, according to payroll provider ADP. Manufacturing has seen the worst, with 20,000 lost jobs, while sectors like trade, transportation, and utilities saw gains. Wages have stagnated, with annual wage growth holding steady at 5%. This deceleration in hiring and pay raises signals potential challenges for workers as we move into the second half of the year.

Parts of the economy showed signs of a rebound in May. The Institute of Supply Management reported the US services sector rebounded strongly in May, with business activity seeing its most significant jump in three years, highlighting the sector's resilience compared to manufacturing. While services, which constitute the majority of the US economy, showed robust growth, manufacturing continued to contract, underscoring its more minor role, only making up about 10% of the economy. This divergence suggests that despite a slowdown in hiring, the overall economy remains solid.

 

 🌊 Climate trends

Global Energy Emissions: 37.4B metric tons of CO2
An all-time high, up 1.1% from 2022. (IEA)

This hurricane season is expected to be severe, with forecasts predicting up to 25 storms, driven by near-record warm waters and favorable conditions. According to Bloomberg Green, the economic impact could be substantial, particularly for insurance, real estate, and energy industries. Coastal regions face significant risks, potentially resulting in billions of dollars in damages and disrupting vital offshore oil and gas production. A category five hurricane, the most severe kind, hitting the Miami coast is estimated to cost the economy $1.35 trillion. As storms grow stronger and more frequent, businesses and governments must brace for increased recovery costs and economic instability.

 

 📈 Investment trends

The Market: ⬆️ +1.2%
S&P 500: 5,354.03
1Mo: +3% | 1Yr: +25% | 5Yr: +86%

The market surged to a new record on Wednesday as investors celebrated data that pointed to a slowing economy. They hope this will encourage policymakers to stop restricting business activity with high borrowing costs.

 

 🤓 Inside Scoop: How does the Federal Reserve control the economy?

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

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

Meta Platforms

Suppressing Voices

Meta has been sued by a former engineer claiming wrongful termination and discrimination for trying to fix the algorithmic suppression of posts supporting Palestine.

The social giant faces allegations of bias against Palestinians through its content moderation practices.

Tell Meta's CEO how you feel

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 💭 Broader perspectives… (+ 2pts)

Should social media platforms have the right to moderate their content as they wish?

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Deere

Cutting Back

Deere revealed plans to trim jobs in response to decreased demand for farming equipment, signaling a need for cost savings to offset slower sales.

The agriculture equipment maker aims to streamline operations and reduce redundancies to remain competitive.

Tell Deere's CEO how you feel

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American Airlines

Best Offer

American Airlines offered flight attendants an immediate 17% pay hike to avoid an impending strike as contract negotiations head for a final round with federal mediators.

American's flight attendants haven't had a raise in five years and asked for a 33% bump.

Tell American Airlines's CEO how you feel

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Dollar Tree

Cutting Losses

Dollar Tree announced plans to sell its more grocery-focused Family Dollar brand, abandoning a turnaround plan that involved hundreds of store closures.

The dollar store giant has battled slowing sales from higher competition and just lost $117M to a distribution center destroyed by a tornado.

Tell Dollar Tree's CEO how you feel

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Lululemon

Shifting Leisure

Lululemon's sales have quickly stagnated in its key Americas market, prompting concern that shoppers have moved on from athleisure apparel to denim.

The retailer has been doing much better in international markets but aims to reinvigorate sales in the US.

Tell Lululemon's CEO how you feel

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