19 August 2020

1) Walmart retailer giant has had its second quarter e-commerce sales jump by 97% with customers having packages shipped to their homes and using curbside pick-up. This adds optimism to Walmart’s upcoming Walmart+ (pronounced Walmart plus) membership, a subscription based service to rival Amazon Prime designed to drive up sales and loyalty. Exceptions are for Walmart+ to continue pushing up e-commerce sales over and above the big jump for the second quarter, signaling again a major profound shift in American retail segment of the economy. The new service will deliver merchandise in one day, if not just a few hours.

2) FexEx is joining other package delivery services to add extra holiday fees for deliveries, from 2 November to 17 January. These surcharges on regular shipments to homes will be between $1 and $5. It’s been since 2016 when FedEx last applied surcharges during peak volume times, and follows UPS and the US postal service using surcharges for the peak package delivery times. With the massive increase in home delivery of merchandise, because of the pandemic, its expected that the holiday surge will set new records in package volume. This in turn will place a large strain on the company and therefore additional cost to overcome the strain. The amount of the fee will depend on the surge over normal volume. Both UPS and FedEx introduced surcharges earlier this summer, in part to make up for the extra cost to keep workers safe during the pandemic.

3) The USPS (United States Postal Service) chief Louis DeJoy announced he is suspending some changes in the post office until after the 2020 election. Dejoy is avoiding any appearance of any impacting on election mail. The suspension includes some longstanding operational initiatives that were in place before he took office. There are fears that cost cutting measures could impact the November election with widespread mail delays.

4) Stock market closings for – 18 AUG 20:

Dow 27,778.07 down 66.84
Nasdaq 11,210.84 up 81.12
S&P 500 3,389.78 up 7.79

10 Year Yield: down at 0.67%

Oil: down at $42.55

10 July 2020

1) There are predictions of a relentless heat wave to blanket the U.S. for the next several weeks. This heat wave is just starting in the South, but is expected to move north and east with 100 degree plus temperatures across Ohio Valley and into the Mid-Atlantic areas. The National Weather Service forecast record high temperatures from Friday to Tuesday with as much as 75 record highs broken. But the question isn’t how high the temperatures will get, but for how long? It is expected temperatures during the multiple week span will have only a few days of normal temperatures. These high temperatures are caused by heat domes, sprawling areas of high pressure bringing hot and dry conditions for days. Such phenomena have economic impacts such as high electricity consumption.

2) Walmart is reportedly close to launching Walmart+ in July, a membership program that closely resembles Amazon Prime. The service cost $98 per year and includes same-day delivery, fuel discounts and other perks. Originally to open this last spring, it was delayed because of the pandemic. Walmart has nearly 3,300 store pickup locations and more than 1,850 stores offer same day grocery delivery.

3) The Supreme Court ruled that the eastern half of Oklahoma can be considered Native American territory. The case originated from a conviction of Jimcy McGirt, a Native American, who claims his state conviction in 1997 for rape, should be overturned because Oklahoma lacks jurisdiction, that the Indian reservation had not been properly terminated by the Congress. This would mean the federal government would have jurisdiction, so McGirt would be subject to federal criminal laws instead of Oklahoma. The ruling effects half of Oklahoma and 1.8 million residents. Oklahoma fears the decision will create civil, criminal and regulatory turmoil.

4) Stock market closings for – 9 JUL 20:

Dow 25,706.09 down 361.19
Nasdaq 10,547.75 up 55.25
S&P 500 3,152.05 down 17.89

10 Year Yield: down at 0.60%

Oil: up at $39.59