🐂 Blindsided

Markets

Stocks saw a modest increase in value yesterday, primarily driven by the performance of technology companies. Meanwhile, investors are eagerly anticipating the release of significant retail earnings and data scheduled for this week. Hawaiian Electric, on the other hand, experienced a sharp decline to its lowest point in 13 years. The company is currently under investigation, including the initiation of at least one lawsuit, regarding allegations that its power lines may have been responsible for the destructive wildfires on Maui.

Tech Shares Rise, Lifting Nasdaq, as Bond Yields Seesaw

A resurgence in technology company stocks contributed to the upward movement of U.S. stock indices on Monday, while yields on longer-term bonds stabilized after briefly approaching their highest levels in over ten years.

Contrary to the recent trend of the Dow Jones Industrial Average outperforming, the Nasdaq Composite, which is heavily weighted towards tech firms, led the way among the three primary indexes, recording a 1.1% gain. The S&P 500 also saw an increase of 0.6%, while the Dow experienced a slight uptick of 0.1%.

Tech shares experienced a notable boost early in the trading session as bond yields reversed their trajectory after a substantial climb prior to and immediately after the market's opening.

At one juncture, the yield on the widely-watched 10-year U.S. Treasury note reached a peak of 4.215%, approaching the level of 4.231% last observed on October 24th, 2008—a close that stood as its highest since that year. However, this marked a turning point as buyers entered the market, causing the yield to retreat below 4.2% and ultimately settle at 4.181% by the end of the trading day.

Politics

Trump indicted for the 4th time in 5 months

While Beyoncé was captivating the audience with her performance in Atlanta last night, a significantly more dramatic event unfolded at the nearby courthouse. In a sweeping legal action, President Trump and 18 co-defendants have been accused of orchestrating a "criminal enterprise" with the intent of overturning his defeat in the 2020 presidential election in Georgia—an accusation historically associated with dismantling organized crime syndicates.

The indictment alleges that Trump and his associates, including his former personal attorney Rudy Giuliani and former White House chief of staff Mark Meadows, engaged in numerous activities aimed at disrupting the electoral college process. These actions reportedly included the harassment of election officials and, in a particular instance, a breach of voting equipment in Coffee County, GA.

This marks the fourth indictment for Trump within a span of five months, as he remains a prominent contender for the 2024 GOP presidential nomination. Trump has entered a plea of not guilty to previous criminal charges, and he has dismissed his indictment in Georgia as a "witch hunt." Trump and the other defendants have received instructions to surrender voluntarily by noon on August 25th.

Sports

Michael Oher claims The Blind Side’s premise is a lie

Retired NFL player Michael Oher has revealed that the well-known movie and book depicting his adoption by a white couple during his teenage years, which provided him with a stable home, is rooted in a recently exposed falsehood. In a legal filing, Oher asserts that Sean and Leigh Anne Tuohy, who were portrayed by Sandra Bullock and Tim McGraw in the film, never actually adopted him and have allegedly defrauded him out of millions of dollars.

Oher's claim outlines that shortly after he turned 18, he signed conservatorship documents under the belief that they would formalize his inclusion into the Tuohy family. However, the lawsuit contends that these papers, discovered by Oher's lawyer in February, merely granted the Tuohys the authority to engage in business dealings using his name.

The court filing by Oher asserts the following:

• He received no compensation for his involvement in "The Blind Side" movie. The Tuohys negotiated an arrangement that granted them and their two biological children $225,000 each, along with a 2.5% share of the film's net proceeds, despite the movie grossing over $300 million.

• A contract that Oher does not recall being explained to him granted 20th Century Fox Studios the rights to his life story without providing any compensation. The agent involved in the deal was a close associate of the Tuohys and was also the individual who filed the conservatorship petition.

In response to these allegations, Sean Tuohy stated, "It's distressing to think that we would profit from any of our children." He expressed willingness to terminate the conservatorship and contended that Oher received a portion of the movie's profits equivalent to other family members.

Entertainment

New Illinois law protects child influencers

For a significant duration, child actors in Hollywood have enjoyed the advantages of a California statute mandating the allocation of a portion of their earnings into a savings account. In a parallel vein, a fresh legislation in Illinois aims to extend safeguards to young social media influencers. Recently signed and scheduled to come into effect in July 2024, this law stipulates that a segment of the income earned by individuals under 16 on monetized online platforms, even within content generated by their parents, must be allocated to a trust fund until they reach the age of 18. This pioneering legislation marks a notable first in the United States, and there are indications that other states may pursue a similar path, with Washington already contemplating a comparable initiative.

Tech

Elon Musk and Zuck are still fighting (with words)

Just a mere day after Mark Zuckerberg expressed his desire to leave behind the ongoing public exchange between himself and fellow Big Tech CEO Musk, the latter revealed his reluctance to move on. Musk took to Twitter, announcing his intention to embark on a test drive of a Tesla to Zuckerberg's residence, with the intention of knocking on his door for a physical confrontation—all while livestreaming the event. However, a spokesperson from Meta (formerly Facebook) responded by stating that Musk's attempt would likely yield little result, as Zuckerberg is currently away and takes the matter seriously, preferring not to engage in a spontaneous encounter with an unannounced visitor at his home.

Artificial intelligence

It’s a great time to be an AI engineer

The coveted title of "Senior AI Engineer" has now joined the ranks of esteemed professions like "doctor" and "lawyer" that parents are pleased to see their children pursue.

In the competitive race to secure qualified expertise for implementing artificial intelligence, professionals in the AI field are commanding remarkable salaries. Freelance platform Upwork has observed a remarkable 9-fold surge in AI-related job postings during the last quarter compared to the same period in 2022, as reported by CNBC.

The scarcity of experienced specialists has elevated their demand even further, turning them into highly sought-after assets, according to the Wall Street Journal. Accomplished AI experts can anticipate annual salaries such as:

• Up to $900,000 for a role as a product manager within Netflix's Machine Learning Platform team, as indicated by a recent job posting (this occurred amid a strike by unionized actors and writers, who are grappling with concerns regarding compensation and AI integration in the entertainment industry).

• An engineering leader focusing on the development of generative AI models for content monetization at TikTok can potentially earn between $210,000 and $358,000, based on an active listing on Indeed.

• A principal engineer overseeing the AI platform at software company HubSpot could earn anywhere from $285,000 to $427,000, as specified in a job opening posted on LinkedIn.

Looking at the broader context: While the AI fervor results in substantial financial rewards and workplace perks like massage chairs for some, Goldman Sachs has expressed the view that technology akin to ChatGPT could potentially automate either partially or fully around 300 million full-time jobs on a global scale.