30 July 2020

1) First Walmart then Target and Dick’s Sporting Goods and now Best Buy have announced they will be closed on Thanksgiving, with more retailers expected to follow suit. The decision is in response to the coronavirus pandemic. Traditionally, Thanksgiving Day is the kick off of Black Friday sales, where retailers offer their lowest sales prices as the kickoff of the Christmas shopping season. But this also draws large crowds, something that goes against public health guidelines for social distancing. Instead, retailers will be offering their big sales online.

2) The spending habits of millennials had been credited with the decline of traditional consumer products, but now seem to be reversing for comebacks. Things like golf, starter homes and canned tuna are now on the rise, in part because of the covid-19 crisis. Some other products now on the rise is beer, mayo and cereal to name a few. More indications of how economic times in America are ever changing and becoming more unpredictable.

3) The pandemic crisis has sent the U.S. Postal Service into a fiscal tailspin, with President Trump saying he would not support a financial bailout until the Postoffice reformed its pricing of package deliveries for large on-line retailers like Amazon. But the federal government is preparing a $10 billion dollar loan to the Postoffice to continue services. This loan is part of the proposed $2 trillion dollar pandemic relief package passed in March, but the President said he wont spend the money until the USPS agrees to raise its prices. Much of the online retail business is dependent on the USPS to deliver their goods via mail delivery.

4) Stock market closings for – 29 JUL20:

Dow 26,539.57 up 160.29
Nasdaq 10,542.94 up 140.85
S&P 500 3,258.44 up 40.00

10 Year Yield: down at 0.58%

Oil: up at $41.32

25 November 2019

1) American retailers, such as Home Depot are facing a new crime wave driven by drugs and fueled by the opioid crisis. Known as organized retail crime, people steal for crime rings in exchange for cash they can buy drugs with. The stolen merchandise is then resold at pawnshops, online or directly to a buyer. Worst yet, the thieves are using violence against store employees who try to stop the open theft, even using guns and knifes. The store is left to just stand and watch as thieves roll shopping carts of merchandise out the door to sell for drugs.

2) The tuna supplier Bumble Bee Foods announced they are filing for Chapter 11 bankruptcy protection to be purchased by its largest creditor FCF Fishery, for $925 million dollars. Bumble Bee’s debt burden has forced the bankruptcy, which in turn was caused by a $25 million dollar fine for forming a cartel with Chicken of the Sea and Starkist to fix prices. The fine was levied by the Department of Justice. Additionally, the popularity of packaged tuna has been declining with a 42% per capita drop over the last 30 years.

3) There are growing fears that phase one of the China-American trade deal may not get signed before the additional tariffs take effect in mid-December. Phase one would not eliminate tariffs on either side, instead would address issues of intellectual property and financial services access including sizeable purchases by China of American agricultural products. Phase one is considered a starting point for resolving trade differences.

4) Stock market closings for – 22 NOV 19:

Dow          27,875.62    up    109.33
Nasdaq       8,519.88    up      13.67
S&P 500      3,110.29    up         6.75

10 Year Yield:    unchanged   at    1.77%

Oil:    up   at    $57.93