Market News 6/8

Markets

Yesterday, the S&P 500 and the Nasdaq experienced a slight decline but largely maintained their position after reaching yearly highs the previous day. Stitch Fix provided a significant boost to investors as it announced a reduction in losses during the last quarter and unveiled strategies to reduce expenses in the future.

Environment

U.S. Is likely to stay smoky for some days

The ongoing Canada wildfires continue to envelop the Eastern half of the United States in smoke, leaving American air quality heavily influenced by the direction of the wind.

Today, many already heavily polluted areas in the Northeast, as well as cities along the East Coast and in the Midwest, are expected to experience persistently poor air quality. This is due to a low-pressure system with south-blowing winds that are not anticipated to change direction until at least Saturday. While conditions may improve afterwards, the weekend is still likely to be hazy in New York, Pennsylvania, and Washington, DC, where millions of people have been exposed to some of the world's most hazardous air.

The resulting pollution has already caused flight delays, the postponement of the Yankees-White Sox game, and a surge in demand for face masks. Air quality indexes have reached record highs, significantly surpassing the "unhealthy" threshold of 100 (New York City exceeded 400 yesterday).

To ensure safety amid the smoke, health officials recommend the following measures:

1. Stay indoors with windows and doors closed. If you have a fireplace, close the flue, and if you use a window air conditioning unit, the Environmental Protection Agency advises using it only if you can seal any gaps in the window frame and close the outdoor air damper.

2. If you have central air conditioning, keep it running and set it to recirculation mode, according to the EPA. Additionally, utilize fans in your living space and consider purchasing an air purifier before supplies run out.

3. Refrain from frying food, engaging in strenuous physical activity, taking long walks with your dog, or smoking cigarettes. Even though smoking half a pack of cigarettes is generally less harmful than breathing the air in the Northeast right now, it is advisable to avoid both

Politics

Trump is a target

According to multiple news outlets, federal prosecutors have sent a letter to former President Donald Trump's lawyers, notifying them that he is the subject of an investigation regarding his handling of classified documents following his departure from office. This development suggests that an indictment against Trump may be forthcoming. The news of the letter emerged after the former president's legal team met with attorneys from the Department of Justice (DOJ) on Monday, supposedly in an attempt to dissuade them from pursuing charges. Additionally, witnesses associated with Trump have been appearing before a grand jury in Florida. Trump continues to assert that he is a victim of what he perceives as a politicized DOJ and FBI.

Sports

Messi goes to Miami

On Wednesday, Lionel Messi made a surprising decision to don pink as he announced his move to Inter Miami, a move that is expected to have a significant impact on the future of soccer in the United States.

In order for Messi to turn down a reported $400 million offer from the Saudi football league, Inter Miami's proposition must have been extremely enticing. According to The Athletic, several key factors of the deal contributed to Messi's decision to join the Miami-based team:

1. Partnerships with Apple and Adidas: Alongside his salary, Messi will receive a share of the revenue generated from new subscribers to Apple's MLS Season Pass. Furthermore, there are discussions underway regarding a profit-sharing arrangement between Messi and Adidas.

2. Opportunities beyond playing: It is likely that Messi will have the opportunity to acquire a stake in an MLS team once he finishes his playing career. This mirrors the deal that David Beckham secured when he joined the LA Galaxy, eventually leading to his co-ownership of Inter Miami.

Despite acquiring the biggest name in the sport, soccer in the United States still has a long way to go. However, the future appears promising, as indicated by the significant increase in ticket sales for the Inter Miami vs. LAFC match on September 3 following Messi's announcement. Ticket prices surged from $81 to $422, according to TickPick.

Interesting Chronicles

New GameStop CEO

In a recent move, GameStop made a change in its leadership by parting ways with CEO Matt Furlong, a former Amazon executive. Furlong had joined the company during a period when retail traders from Reddit rallied behind GameStop's cause. Instead, the company opted to appoint Ryan Cohen, a billionaire investor who has been a prominent supporter of GameStop, as its executive chair. However, investors did not react favorably to the news, potentially due to the company's announcement of decreased revenue in the last quarter compared to the previous year. Consequently, GameStop's stock experienced a significant decline during after-hours trading, reflecting its characteristic volatility.