Market News 7/12

Markets

Yesterday, stocks experienced a significant surge as the inflation data for June turned out to be more favorable than anticipated, exceeding expectations. This led to the S&P 500 and the Nasdaq having their most impressive trading sessions since April 2022.

Entertaiment

Hollywood actors join

This morning, a significant number of individuals, including actors, announcers, game show hosts, and even those who impersonate famous figures like Harrison Ford performing daring stunts, have announced their decision to go on strike. The reason behind this strike is the failure of their union, SAG-AFTRA, to reach a satisfactory agreement with the studios by the deadline last night. As a result, they will be joining the ongoing strike of the Writers Guild of America (WGA) on the picket line.

This simultaneous strike of writers and actors marks the first occurrence since 1960. Both groups are seeking improved compensation as the rise of streaming services continues to reshape the entertainment industry. Additionally, they are seeking guarantees that studios will not replace them with AI technology.

So, what can we expect now?

The WGA strike, which has already been ongoing for three months, has already led to the suspension of most film and TV production in major cities such as New York, Los Angeles, and even Chicago. With actors now joining the strike, the few projects that were progressing with completed scripts will also come to a halt. Furthermore, the SAG-AFTRA strike will prevent members from participating in filming projects overseas, causing anticipated productions like House of the Dragon and Mission: Impossible – Dead Reckoning Part Two to likely suspend filming.

The rules of the SAG-AFTRA strike also prohibit actors from engaging in promotional activities. Consequently, events like the premiere of Disney's Haunted Mansion will not feature star-studded appearances, and Margot Robbie's red carpet fashion will have to remain stored away.

Additionally, it is possible that the Emmys will have to reschedule their ceremony. Despite the recent congratulatory tweets on Jennifer Coolidge's nomination, organizers are likely to push the event from September to January in order to avoid a show without prominent celebrities.

Considering the current circumstances, this labor dispute might persist for a significant duration, as the studios seem determined to take a hardline stance. According to a report by Deadline, executives are not interested in negotiating with Writers Guild representatives until late October. An anonymous source even suggested that their intention is to let the situation drag on until union members start facing financial difficulties, such as losing their apartments or houses. While the Alliance of Motion Picture and Television Producers denied these claims, it is unlikely that your favorite shows will resume filming anytime soon.

Environment

It’s getting hotter in the water

Off the coast of Florida, ocean temperatures have reached exceptionally high levels, peaking at nearly 97 degrees Fahrenheit. This is significantly higher than the more typical readings in the 80s. The intensity of these temperatures is so extreme that they surpass the color scale on certain weather maps, as reported by the Washington Post. Such Jacuzzi-like conditions pose a significant threat to the local coral, which is highly susceptible to bleaching. Typically, coral bleaching, characterized by the loss of color due to starvation, occurs most prominently in August and September. However, the coral in the area is already at risk, even though it is only July.

Finance

Inflation is finally slowing down

Get ready to whip up some delicious frittatas because it seems like the era of expensive eggs is fading away. Recent government data reveals that inflation has cooled down to a two-year low of 3% last month, indicating that the worst of the crisis may be behind us.

In terms of core inflation, which excludes volatile prices of food and energy, there was a modest increase of only 0.2% in June. This represents the slowest rate of increase since early 2021.

However, not all prices are experiencing a decline. According to a detailed analysis by the Wall Street Journal, there are still certain items to avoid purchasing if you want to hold onto your money:

Don't: Burn your toast, guzzle Diet Coke, or indulge in frozen peas. The cost of white bread has risen by 11.5% over the past year, carbonated drinks have gone up by 9.1%, and frozen vegetables have seen a significant jump of 17.6%.

Do: Embark on a road trip, buy a 55-inch LCD TV, or attend a destination wedding. Gas prices have dropped by 27%, TV prices have decreased by 10%, and airfares have seen a decline of 19%.

Looking at the bigger picture, the Federal Reserve's series of interest rate hikes seem to have had their intended effect. However, inflation still remains above the targeted 2% level, leading to expectations that the Fed, led by Chair Jerome Powell (commonly referred to as JPow), will raise rates again later this month. Experts suggest that due to the slowing pace of inflation, this upcoming increase is likely to be the last for a while.