🐂 Not on target

Markets

Stocks experienced a significant decline following the release of minutes from the recent Fed meeting, revealing continued concerns about inflation and the potential for further interest rate increases. Sacks Parente Golf, a high-end putter manufacturer, had an impressive 624% surge in its stock on Tuesday during one of the strongest market debuts this year. However, the company's stock swiftly retreated on the following day, with trading being repeatedly halted due to extreme volatility.

Stock Market Today: Key Treasury Yield Keeps Pushing Higher

The bond market turmoil is far from abating. Once again, yields on the ten-year Treasury bonds have risen, reaching their highest point since 2008. This climb is causing concern among Wall Street analysts who are now apprehensive about potential repercussions for the stock market. Simultaneously, the thirty-year yield is also experiencing an upward trend.

The surge in yields is primarily attributed to the robust performance of the U.S. economy and the persistent threat of high inflation. The latest report from the Labor Department this morning indicated 239,000 initial jobless claims for the previous week, slightly below what economists had predicted. In recent trading: Yields on longer-term government bonds have risen, with ten-year Treasury yields approaching 4.3%, following their settlement at 4.258% on Wednesday. Conversely, shorter-term rates have decreased. Stock futures have shown a slight increase. Contracts for major indices like the S&P 500, Dow industrials, and Nasdaq-100 have recorded modest gains, hinting at the possibility that the S&P 500 might break its two-day losing streak, partly driven by higher yields. On a global scale, markets have experienced a widespread decline. Shares of industrial and construction companies have exerted downward pressure on the Stoxx Europe 600.

Meanwhile, Japan's Nikkei 225 index has dropped by 0.4%. In contrast, Chinese stocks have managed to stabilize. The Shanghai Composite index has gained 0.4%, following a four-day period of decline attributed to mounting challenges within the world's second-largest economy, especially within the housing sector.

Entertainment

Music execs don’t like the songs of the summer

In the previous summer, a Netflix series centered around Dungeons & Dragons (D&D) transformed an iconic '80s hit by Kate Bush into a strong contender for the season's most popular song. However, this current summer has witnessed an even more unexpected source for producing two major hits: the realm of the unexpected.

The Eurodance parody titled "Planet of the Bass" and the conservative-favored track "Rich Men North of Richmond" are distinctly different songs, each experiencing a meteoric rise in popularity for unique reasons. What's remarkable is that both songs achieved this success independently, without relying on the traditional support of established music labels.

If you still find yourself humming "Running Up That Hill," here's the lowdown on these two tunes:

A Song About Nothing: Comedian Kyle Gordon, hailing from Brooklyn, took the internet by storm with a series of three teaser trailers for his creation "Planet of the Bass." The trailers, filmed on an iPhone by his brother, propelled him to viral fame. Despite having no intentions of becoming a pop star, Gordon's official music video, unveiled on Tuesday, has already garnered over 860,000 views, with the initial preview amassing a staggering 110+ million views. He even performed the song at a Jonas Brothers concert in Boston.

A Song About Much: "Rich Men North of Richmond" by Oliver Anthony achieved the top spot on Spotify's Top 50 chart for the US recently, merely a week after its YouTube debut where it has already racked up 16 million views. Anthony, who positions himself as politically neutral, experienced a surge in attention from conservatives like Marjorie Taylor Greene, Matt Walsh, and Ben Shapiro, who praised the song's critique of high taxes and welfare policies. Despite this, some progressives have raised suspicions, suggesting that Anthony might be an "industry plant" meant to carry on the legacy of Jason Aldean's controversial hit "Try That in a Small Town," or even speculating about QAnon connections.

The Bigger Picture: These two unexpected "songs of the summer" managed to capture the spotlight without traditional industry backing. This success contrasts with reports from music executives who have encountered challenges in their attempts to create new superstar artists through conventional methods, as detailed in discussions with Billboard.

Health

Kidney implant from pig works?

A remarkable achievement has been made in the realm of organ transplantation, as a pig kidney that was transplanted into a brain-dead human recipient has exhibited successful functionality even after a month. This significant development signals a major stride towards addressing the scarcity of donated organs by exploring the potential of utilizing animals to bridge the gap.

The surgical team at NYU Langone, who carried out the pioneering procedure with the consent of the brain-dead individual's family, reported that the genetically modified pig kidney is operating normally 32 days post-transplant. This notable duration marks the longest period that such an organ has remained functional within a human recipient, sparking optimism that pig organs could eventually serve as a valuable resource for meeting the organ transplant needs of humans.

The context underscores the urgency of this progress, especially considering that by March, when the United States proposed overhauling its organ donation system, a staggering number of over 100,000 individuals were on the waiting list for organ transplants. This breakthrough offers hope for a future where pig organs might contribute significantly to fulfilling the requirements of patients in need of life-saving organ donations.

Retail

People stopped shopping at target?

What's the latest buzz? It's certainly not soaring sales at Target, which experienced a surge during the pandemic but, much like the fading moments of your family's quality time, has seen a decline recently. The company revealed yesterday that it faced a sales slump in the last quarter, marking the first such dip in four years. Despite a notable increase in profits, Target has adjusted its profit forecast for the year.

What caused this downturn? Target has attributed a portion of the lower sales in the previous quarter to a consumer backlash regarding its Pride collection, as well as the subsequent removal of that same collection. However, the challenges go beyond cultural debates. With the cost of essential items on the rise, customers have limited discretionary funds left over for items like seasonal oven mitts. Target is particularly exposed to spending categories driven by personal choice, accounting for 54% of its annual sales, as reported by the Wall Street Journal. In contrast, essentials like groceries contribute only 20% to Target's yearly revenue, in contrast to Walmart, where they constitute over 50%.

Even when customers are in the mood for indulgence, they seem to be seeking bargains at places like TJ Maxx, whose parent company reported strong sales and an improved outlook for the year.

Looking forward, Target's executives are preparing for an uncertain future as student loan payments resume on September 1. This development could potentially leave Target's primary demographic, millennials, strapped for cash. As a result, Target faces a challenging road ahead as it navigates through these economic shifts.

Food

What’s happening to food deliveries?

The popularity of fast-casual food delivery is waning as more individuals are opting to head out for takeout or dine in person, rather than relying on having their meals brought to their doorstep.

This decline in the demand for delivery services is primarily attributed to consumers being more mindful of their finances. With the era of pandemic lockdowns now behind us, people find it less justifiable to incur the extra fees and inflated menu prices associated with the convenience of ordering from the comfort of their homes.

Interestingly, some fast-casual chains are looking back nostalgically at the time when delivery was more prevalent.

Sweetgreen, for instance, has observed a decrease in delivery orders and a rise in pickups. This shift has led to the salad chain falling short of its overall revenue expectations for the last quarter. A similar trend is seen with health bowl competitor Cava, which has experienced a drop in deliveries and an increase in pickups. These factors have contributed to the company's cautious sales growth projection for the year, alongside concerns about rising gas prices and broader economic uncertainties. In the case of Chipotle, delivery revenue suffered a decline of 15.8% in the last quarter compared to the same period the previous year. However, not all companies heavily focused on delivery have been impacted to the same extent. Uber's delivery sales witnessed a 14% growth, and DoorDash's numbers rose by 25% in the last quarter. Nonetheless, Grubhub's parent company noted a decrease in order volumes across North America this year.

Restaurants are making efforts to adapt to this changing landscape. After grappling with delivery-related challenges for over a year, Domino's recently announced a partnership with Uber Eats and Postmates to enhance their delivery offerings.