…and Amazon wants a quarter-million holiday workers
| PreK costs are rivaling college tuition (Maskot/Getty Images) | |
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Last Week's Market Moves | | Dow Jones
33,964 (-1.89%) | S&P 500
4,320 (-2.93%) | Nasdaq
13,212 (-3.62%) | Bitcoin
$26,537 (-0.35%) |
| Dow Jones
33,964 (-1.89%) | S&P 500
4,320 (-2.93%) | Nasdaq
13,212 (-3.62%) | Bitcoin
$26,537 (-0.35%) |
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Hey Snackers, If at first you don't succeed: a marathoner in a homemade floating hamster wheel was arrested by the US Coast Guard after trying to run across the Atlantic Ocean. Authorities said it was "at least" the 51-year-old's fourth attempt. The S&P 500 and Nasdaq had their worst week since March after the Fed hinted it might keep rates elevated for longer than traders expected, though it skipped a hike this month. Officials are still aiming to cool inflation without triggering a recession (aka: stick a soft landing). | Btw... Do you want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences here. | |
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Pandemic-era childcare funds are expiring as stimulus measures sputter out | No gold-star stickers… $24B in federal childcare funding is set to expire on Saturday. During the pandemic, the US gov't doled out the grant $$ to 220K+ childcare centers to help them stay afloat. When the funding runs dry, 70K centers caring for 3M kids could close. Scholarships for daycare tuition are disappearing, too, leaving families with fewer and more expensive options. Livin' on the edge… of what's being called a childcare "cliff." The tots-watching industry lost workers when people stayed home during the pandemic, and is still down by 65K jobs compared to early 2020. The workers that centers do find are asking for higher wages (it's a hot labor market rn). But to meet higher-wage demands, center leaders say they'd have to raise tuition beyond what parents could afford. The average cost of pre-K and daycare has already risen 6% this year, outpacing inflation. US families spend, on average, about a quarter of their income on childcare, with preschool costs hitting thousands of $$ a month in cities like NYC. Faced with fewer options, parents may leave the workforce to care for their kids themselves. Early in the pandemic, lots of caregivers — mostly mothers — made that trade-off once schools and daycares closed. Women's labor-force participation has since rebounded to record levels, but another mass exodus could reverse the gains.
|  | THE TAKEAWAY |
| Wakin' from a long nap time can be rough… After years of gov't aid, the last of the pandemic stimulus measures are sputtering out (student-loan repayments also start back up next month after a three-year pause), stretching thin budgets thinner. Americans' savings rate has plunged as inflation and high interest drain stockpiles (remember stimulus checks?). Now folks may have to tighten their belts further — especially if they're parents with student loans. | |
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| | The Biggest Disruption To $martphones in 15 Years 🤳🏼 | |
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| The plot thickens… Famous authors are piling into copyright-infringement lawsuits against OpenAI. George R.R. Martin, John Grisham, Elin Hilderbrand, and others sued the ChatGPT maker last week, accusing it of illegally using their books to train its bot. In July, Sarah Silverman and others sued OpenAI and Meta for the same reason. If authors win, OpenAI might have to pay damages and a licensing fee for copyrighted work. Artists have also brought suits against genAI companies. Not so coincidentally: OpenAI recently released an update to its image generator, DALL-E, which allows artists to opt out of having their work used in training. It takes a village… Retailers are stocking up on help this holiday szn. Last week Target said it would hire 100K extra employees as it preps for more curbside orders and in-store returns. Amazon (the US's #2 largest private employer after Walmart) is taking on 250K+ more workers (100K more than last year) and raising wages as it ramps up next-day deliveries. Still, holiday hiring is expected to be the lowest since 2008, and 76% of US adults say they plan to cut back on splurges (picture: fewer life-size reindeer statues, no bourbon eggnog). | |
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| Just doin' it… Nike reports Thursday, after posting its first earnings miss in three years in the previous quarter. Inventory glut, up 23% since 2021, has been a stone in Nike's shoe. The swoosh icon has been dialing back its direct-to-consumer biz and repairing relationships with wholesale partners like Foot Locker and Macy's, hoping to clear out some excess sneakers. Analysts aren't expecting much as US retail spending weakens, but Nike's hoping its powerful brands (like the $6.6B Jordan line) can step up demand. A rollin' throne… Premium-furniture maker MillerKnoll, which owns brands like Herman Miller and Design Within Reach, took a hit during the pandemic when its ergonomic chairs were sitting empty. As unsold Aerons filled warehouses, MillerKnoll's sales (and stock) sank. In major American cities the office-occupancy rate has remained below 50% since last year, but a renewed RTO push may boost orders (FYI: 90% of US cos say they'll require some in-office days by next year). We'll see whether MillerKnoll is beating its Covid hangover when it reports tomorrow. | |
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| FossilFeud: California sued Exxon, Shell, Chevron, ConocoPhillips, and BP, saying they downplayed fossil-fuel risks. The Golden State wants the oil titans to help pay for increasingly common climate disasters. FeeReturns: H&M has joined a cascade of retailers like Kohl's, TJ Maxx, and JCPenney in charging customers for returns. With its $6 online return fee, H&M hopes to discourage bulk buy-and-returns as shipping costs soar. Thrill: Disney plans to nearly 2X its spending on its parks-and-cruises biz with $60B in investments over the next decade. As Disney's media divisions struggle, its OG parks biz is still bringing the magic.
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What else we're Snackin' | Unscripted: With Hollywood in a strike standstill, fall TV lineups are filled with game shows, reality TV, and reruns of old faves like "Law & Order." Also on: UK versions of popular sitcoms like "Ghosts." Stuck: 45% of US adults age 18 to 29 are now living with family. Moving back in with the 'rents is viewed as pragmatic, providing a financial cushion as housing affordability sits at an all-time low. Swipe: Credit-card rates (aka: APYs) hit a record 20.7% last week, adding to the financial strain already faced by millions of Americans. This year total US credit-card debt topped $1T for the first time.
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Snack Fact Of the Day | 362K workers have gone on strike this year | | |
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This Week | Monday: Yom Kippur. Earnings expected from Thor Industries Tuesday: Consumer-confidence report. Earnings expected from Costco, Cintas, and MillerKnoll Wednesday: Earnings expected from Paychex, Duckhorn Portfolio, and Micron Thursday: Fed Chair Powell speaks. Earnings expected from Nike, CarMax, and Accenture Friday: Earnings expected from Carnival
Authors of this Snacks own shares of: Amazon, Disney, Exxon, and Walmart *Advertiser's disclosure: Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile's Regulation CF Offering. | |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more | |
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