Saturday, July 3, 2021

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Good morning. If you’re reading this, you know that the secret sauce to any epic Fourth of July weekend is to begin with a dose of business news. You’ll be the life of the party once you hit ’em with the employment stats.

Some housekeeping notes: Despite the holiday, you’re not getting rid of us this weekend. We’ll be in your inbox tomorrow morning with Sunday Edition, then on Monday with a special newsletter (because the markets are closed).

Be safe, have fun, and remember—face paint is still cool. 

MARKETS


Nasdaq

14,639.33

S&P

4,352.34

Dow

34,786.35

Bitcoin

$33,213.53

10-Year

1.437%

IBM

$140.02

*Stock data as of market close, cryptocurrency data as of 5:00pm ET. Here's what these numbers mean.

  • Markets: Stocks kept up their record-high-hitting ways following June’s bullish jobs report. Having risen for seven consecutive trading days, the S&P is on its longest winning streak since August. Not all stocks gained—IBM dipped after its president stepped down just 14 months after taking the role.
  • Fourth of July travel: How's this for a milestone? The number of passengers the TSA screened on Thursday was 3% above levels on July 1, 2019 (which was a Monday, but still...).

Giphy

And that’s if we’re being tough graders. The US economy added 850,000 jobs in June, marking the biggest monthly gain in almost a year and topping expectations. 

The unemployment rate ticked up from 5.8% to 5.9%, but it’s not cause for alarm. More people started looking for jobs last month, which increased the denominator in the unemployment rate equation (unemployment rate = number of unemployed people / total number of people who are currently working or looking for work). 

Major themes from the jobs report

  • Leisure and hospitality : The sector most battered by the pandemic added 343,000 jobs in June, accounting for 40% of the total gains. 
  • Wages : Average hourly pay rose 3.6% in June over a year earlier, and it's 6.6% above levels from February 2020, before Covid-19 hit the US. Inflation doesn’t hold a candle to that wage growth.
  • Remote work: 14.4% of US employees were teleworking because of the pandemic. That’s down from 16.6% in May and a 35% peak in May 2020. 

Big picture: Things are trending up in the labor market as we head into the height of summer. The 850,000 headline number represents a big improvement from May’s jobs report (+583,000 jobs) and April’s (+269,000).

Challenges remain, of course. The economy is still 6.8 million jobs short of its pre-pandemic levels—not because employers aren’t hiring, but because they’re struggling to find workers to fill all their open positions. Economists hope that the increase in job seekers in June is a sign the labor crunch could smooth out by fall.

        

C-SUITE

CEO, Entrepreneur, Born in 1968. Andy. Andy Jassy.

Amazon CEO Andy Jessy

Amazon

Andy Jassy starts his first day as Amazon’s CEO on Monday, July 5—a cruel joke on departing CEO Jeff Bezos’s part. Let’s get to know him.

The New York native wears a Harvard sweatshirt unironically, since he went there for both undergrad and an MBA. In 1997, he started his Amazon career as a marketing manager. Five years later, he was chosen to be Bezos’s “shadow advisor,” another way of saying chief of staff.

Not long after, Jassy changed Amazon forever by coming up with and executing on the idea for Amazon’s cloud computing service, Amazon Web Services, which he currently leads. AWS now accounts for 60% of Amazon’s operating profits. 

Here’s what Bezos had to say about Jassy at Amazon’s May shareholder meeting: “He has the highest of high standards, that I guarantee that Andy will never let the universe make us typical.”

Some fun facts: Jassy loves beef jerky and Dave Matthews Band, hosts wing-eating competitions, and is a minority owner of the NHL’s Seattle Kraken.

And some less-fun facts: Jassy will have to fill some size 16 shoes as he confronts growing antitrust scrutiny of Amazon and unusually high turnover in the company’s C-suite.

        

U.S. Air Force

We know you’re running around this morning putting the finishing touches on your deviled eggs and strawberry pretzel salad before tomorrow’s Fourth of July jamboree, but we’re still going to pop in with a few fireworks facts before things get too explosive. According to the WSJ...

1. Supply chain issues are back again to dull your holiday. Firework supply is expected to drop ~30% across the country with logistics all scrambled due to Covid.

2. Not helping: 90% of US fireworks are made in China, so logjams at ports over there mean a reduction or delay in getting supply over here.

3. Retailers warn that you might have to pay as much as 25% more than you’re used to for some fireworks.

4. Last year, firework sales jumped to $1.9 billion from $1 billion because there was simply nothing else to do except blow things up.

5. Massachusetts is the only state with a total ban on the sale of consumer fireworks. Thanks, Ben Affleck.

        

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GRAB BAG

Key Performance Indicators

Central Park, New York City

Busà Photography / Getty Images

Stat: Want to hear a funny joke? New York is dead. Manhattan real estate prices hit an all-time high in Q2, with the median resale price for Manhattan apartments increasing to $999,000. More than 220 penthouses have been sold in the borough so far this year, a 35% bump from the same period in 2019. 

Quote: “I just say, don’t judge me and I am human—I’m you. I just happen to run a little faster.”

US track star Sha’Carri Richardson went on NBC to apologize after testing positive for marijuana, which is on the World Anti-Doping Agency’s list of banned substances. The positive test means she won’t be able to compete in the 100-meter race at the Tokyo Olympics, but could be available for the 4x100 meter relay.  

Read: The three simple rules that underscore the danger of Delta. (The Atlantic)

        

PERSONAL FINANCE

Money Matters: When to Pay Off Student Loans?

money

Ian McKinnon

In this new Summer 2021 segment, the Brew’s personal finance writer Ryan Lasker is nose-diving into our inbox to address your personal finance questions. Submit your money woes here.

Should college grads start investing before paying off all student loans?—Morgan from Rhode Island

My answer to most “should” questions is “it depends.” No exception here.

Many feel rushed to pay down their loans ASAP, but there’s an argument for not putting every extra dollar toward debt. You have two financial priorities: Make all the minimum payments on your debt, and build an emergency fund worth at least three months of essential expenses.

Deciding what to do with any extra money takes some calculus (not the integral kind). If you think an investment will return more than your highest interest rate, you might want to start investing some money.

  • Say your only debt is a student loan at 5% interest. If you think an investment will return more than 5% this year, investing might be a good shout.
  • But if you also have credit card debt at a 20% interest rate, focus on eliminating that first.

Of course, nobody knows how your investments will perform, and we haven’t even talked about what you want to do. If you decide to invest, consider opening a retirement account; even a small investment now will grow to be significant by the time you’re posting your “just retired!” Insta decades from now.

P.S.: Later this summer Ryan will be writing a twice-weekly personal finance newsletter to make you smarter about your money. Become one of the first subscribers

        

WHAT ELSE IS BREWING

  • Didi shares fell 5.3% just two days after its IPO because China opened up a cybersecurity investigation into the ride-hailing company.
  • Lordstown Motors, an electric truck startup that’s been accused of misleading investors, is reportedly being investigated by the DOJ.
  • Citigroup is joining its big-bank peers in raising pay for junior bankers.
  • Tesla delivered more than 200,000 vehicles in a quarter for the first time.

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FROM THE CREW

Brew's Bookshelf

books

Every other week, Brew's Bookshelf recommends a few of our favorite business reads. Today, we chose two that are perfect for a long weekend by the lake, pool, and even dry land.

  1. This week, Juul said it would pay $40 million to settle North Carolina allegations that it was illegally marketing its products to teens. Lauren Etter investigates Juul's relationship with Big Tobacco and Silicon Valley in The Devil's Playbook.
  2. Rana El Kaliouby has worked for a long time to humanize our tech, and in Girl Decoded she explains why she's so dedicated to her mission. 

GAMES

Brew Crossword: Fireworks

Crossword

Let this morning's Brew Crossword be the last work your brain has to do for the next 72 hours.

But still try it, because it's a great puzzle and it's Fourth of July themed. Solve it here.



July 03
Leoš Janáček
FEATURED BIOGRAPHY

Leoš Janáček

READ MORE
 
Battle of Gettysburg
FEATURED EVENT
1863
Battle of Gettysburg ended

READ MORE

MORE EVENTS ON THIS DAY
Mohammed Morsi
2013: Following massive demonstrations against his rule, Egyptian President Mohammed Morsi was removed from office by a military action. [Test your knowledge of Egyptian history.]
Michael J. Fox
1985: The comedy Back to the Future, directed by Robert Zemeckis and starring Michael J. Fox as Marty McFly, was released in American theatres; a huge hit, it was followed by several sequels. [Take our quiz about movies.]
Entebbe raid
1976: An Israeli commando squad, led by Dan Shomron, launched a rescue of hostages held by airplane hijackers in Entebbe , Uganda.
the Doors
1971: American singer and songwriter Jim Morrison, who was a member of the psychedelic rock group the Doors , died at age 27 in Paris; the official cause of death was heart failure. [Take our quiz about rock music.]
the Rolling Stones
1969: Just weeks after being fired from the rock band the Rolling Stones, British musician Brian Jones was found dead in his swimming pool. [How much do you know about musical groups?]
Tom Cruise in War of the Worlds
1962: American actor Tom Cruise—who was one of Hollywood's most popular leading men, known for his clean-cut good looks and versatility—was born. [Test your knowledge of A-list actors.]
SEE ALL EVENTS ON THIS DAY

Columnists
Democrats Own the Violent Crime Wave

Katie Pavlich


The Woke Are Coming for 'Dungeons and Dragons'

Kurt Schlichter


Those Darned Conservatives Keep Ruining the News!

Brad Slager


A Refugee Family’s First 4th of July

Humberto Fontova


Finding Common Ground

Kathryn Lopez


Real Threats to Planet and People

Paul Driessen


How to Screw Up a Recovery Without Really Trying

Jason Killmeyer


To Fully Appreciate America, You Have to Leave It

Dave Seminara


A Rabbi Defends American Exceptionalism

Yaakov Menken



Tipsheet
Democrats’ Latest Fear About Kamala Harris Has Serious 2024 Implications

Matt Vespa


Boy Scouts Of America Reaches Settlement with Sexual Abuse Victims Worth $850 Million

Landon Mion


Joe Biden Heaps Praise After Praise Upon NEA

Rebecca Downs


What is with the Delta Variant Fear-Mongering?

Rebecca Downs


Cop Fired for Not Turning on Body Camera Ahead of Deadly Shooting

Landon Mion


Did the DNC Chair Use an Insult Generator in His Bizarre Tweet Against Ted Cruz?

Rebecca Downs


More and More Republican Women Are Running for House Seats

Rebecca Downs


ADVERTISEMENT
Democrats Blame Republicans for Defunding Police

Cal Thomas


A Flag That's Still Worth Dying For

Michael Reagan


The 'Root Cause' Fantasy

May Davis


Society Is Increasingly Embracing Eugenic Logic. I Saw It Firsthand With My Sister's Death.

Bobby Schindler


New Opportunities for a Rural American Renaissance

Duggan Flanakin



CDC: Don't Let Your Kids Infected with Diarrhea Crap in the Pool

Matt Vespa


Biden’s Border Crisis Is Out Of Control. We Need Real Leadership.

Congressman Earl L. “Buddy” Carter


Sha'Carri Richardson Explains Marijuana Use After Suspension from Olympic Games

Landon Mion


Judge Slaps Injunction on Race-Based USDA Program in 'Repudiation of Biden's Equity Agenda'

Rebecca Downs


Political Cartoons
Bearing Arms
Alaska's Largest City Now A Second Amendment Sanctuary | Cam Edwards

Columnist Calls Iowa's New Gun Law An End To Racist Past | Tom Knighton

Hawaii Governor Bans Home-built Firearms | Cam Edwards

Chicago's Numbers Show How Badly Gun Control Has Failed | Tom Knighton

Response To Free Carry Licenses Overwhelms State Police System | Cam Edwards

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SATURDAY 7.3.2021

 

 

 

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 BREAKING NEWS

 

 

 

Donald Trump: Biden Border Crisis ‘Just Gross Incompetence’

US Leaves Afghanistan’s Bagram Airfield After Nearly 20 Years

‘Hillbilly Elegy’ Author J.D. Vance Shakes Up Crowded Ohio Senate Race

Kristi Noem Rips Biden For Refusing To Issue Mount Rushmore Fireworks Permits

 July 2, 2021

Stacey Abrams Now Owns 2 Homes Worth $1.4M Despite Massive Debt In 2018
Failed Georgia gubernatorial candidate Stacey Abrams now owns two homes in Georgia worth over $1.4 million despite being in hundreds of thousands of dollars in debt a couple years ago. ... Read More ›
9 Reasons to Use Coconut Oil Daily (3 of these are shocking)
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Iraqi PM Goes To NATO HQ To Angrily Denounce Biden's Airstrikes
A high level Iraqi delegation led by Prime Minister Mustafa al-Kadhimi, as well as Iraq's defense and foreign ministers, made a somewhat unusual visit to NATO headquarters in Brussels, Belgium on... Read More ›
DC Examiner: DeSantis wants Trump to CANCEL Sunday rally, but DeSantis team DENIES
DC Examiner wrote a piece today claiming that Governor DeSantis has asked Trump to cancel his Sunday rally because of its proximity to the Condo collapse in Surfide: ... Read More ›
“Who Shot Ashli Babbitt?” – Trump Wants Capitol Officer Who Shot Babbitt Unmasked
President Trump on Thursday called for the Capitol Police officer who shot Ashli Babbitt to be unmasked. ... Read More ›
Ex-ICE Head Homan Slams Biden – ‘First President Facilitating Illegal Immigration’
In the wake of Vice President Kamala Harris finally visiting the border last week, former ICE Director Thomas Homan went on Fox News to say that she should have“been embarrassed” by the... Read More ›
Low Mileage Seniors Drivers Are in For A Big Surprise
Here's a brand new policy that most drivers don't know about yet. Taking advantage of it at this early stage can save you a small fortune!... Read More ›

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