Market News 8/05

Markets

Yesterday, stocks demonstrated the concept that what goes up must come down, as evidenced by all three major indexes initially ticking up in the morning but later experiencing a decline in the afternoon. Consequently, the week ended with losses. The market's back-and-forth movement was influenced by a mixed jobs report, revealing a slower pace of job additions, yet with low unemployment rates and sustained high wages.

Meme Stocks Are a Thing—Again

The current market is reminiscent of a classic meme-stock rally, characterized by short sellers, day traders, and struggling companies experiencing surprisingly significant increases in their stock prices. Tupperware Brands, despite facing financial challenges, has seen its stock soar from under $1 to around $5 in just two weeks, with a 35.51% increase. Similarly, the trucking-business Yellow shut down its operations recently, but its shares have skyrocketed by about 400% since then. Meanwhile, the cash-strapped drugstore chain Rite Aid saw a 68% surge in its stock price in the past week without any apparent reason. These rallies stand in stark contrast to the overall market performance, with the S&P 500 recently recording its worst weekly showing since March.

Business

Carl Icahn suffers on the other side of the activist equation.

The renowned investor, known for his activist approach in compelling companies to reform, is now facing a setback as his own investment firm becomes the target of a report released by short-seller Hindenburg Research. In response to the heat generated by Hindenburg's claims, Icahn's firm has decided to reduce its quarterly dividend by half and return to the investment style that brought him fame. This decision resulted in a sharp decline in Icahn Enterprises' stock, which closed down by 23% yesterday. As a consequence, Carl Icahn's personal wealth took a hit, losing approximately $2.7 billion, according to Bloomberg.

Tech

Antitrust suit against Google narrowed ahead of upcoming trial

Google secured a significant victory as a judge dismissed certain claims from the Department of Justice and state attorneys general's lawsuit, which accused the tech giant of maintaining a monopoly through illegal practices. The dismissed allegation involved Google allegedly designing its search engine to unfairly disadvantage competitors like Yelp and Expedia. However, the lawsuit is far from over, as a trial for the remaining claims is set to commence on September 12. Despite recent challenges in enforcing antitrust claims against Big Tech, this high-profile case still poses a potential threat to Google's core business.

Artificial Intelligence

AI is getting into the dating game

While encountering bots on dating apps is typically unwelcome, Tinder is exploring the use of AI for positive purposes within user profiles. The app, which already employs AI in its matching algorithms, is testing customer-facing tools. One such tool analyzes users' photos and selects the best five for display, addressing a common frustration when crafting a profile.

This is just the beginning of an AI dating revolution as Match Group, Tinder's parent company, which also owns Hinge and OKCupid, plans to incorporate new AI features across its brands. These features will not only aid in profile building but also aim to highlight potential good matches.

Interestingly, daters may independently bring AI into their interactions, as a study in the UK revealed that over 50% of single men would consider using chatbots to improve their communication with potential dates.

As dating apps become increasingly high-tech, some individuals are opting for more traditional methods, such as using Google Docs to create long-form "date-me docs," seeking romantic connections outside the typical app experience.

Sports

A bold strategy to bring you weird sports

ESPN2 has transformed into ESPN8: The Ocho, hosting a series of competitive activities that are quirky and unconventional but still garner significant attention. What initially started as a ten-hour filler program in 2017, inspired by a joke from the movie "Dodgeball," has evolved into a 43-hour extravaganza taking place in "Ocho-ville" (Rock Hill, South Carolina) with enthusiastic fans in attendance.

The games featured in ESPN8: The Ocho are quite obscure and unusual. For example, competitors participate in the Slippery Stairs competition, where they race up lubricated stairs. In Teqball, athletes play soccer using a pingpong table without using their arms or hands. The Corgi Races involve adorable fluffy dogs racing across a grassy field, and even nerds have a sport to enjoy with the Microsoft Excel World Championship.

For traditional sports enthusiasts, Slam Ball and Dodgeball have already crowned their champions, but there's more to come. The American Ultimate Disc League final is scheduled for 9 am ET, and the American Cornhole League Pro Doubles World Championship starts at 12 pm ET today. Despite being unconventional, ESPN8: The Ocho has become a notable sporting event, capturing the excitement of viewers with its unique and entertaining competitions.