1) Online grocery shopping continues to reach higher numbers, as Americans show little inclination to return to the stores. Grocery sales hit a record $7.2 billion dollars in June, up 9% from May. There are now 45.6 million households using online grocery pickup and delivery services for a larger portion of their grocery needs. The coronavirus crisis has cause drastic increases in grocery shopping online. People are now using online for buying a few items instead of just for their major shopping trips.
2) Seattle has passed a payroll tax which targets large businesses, called the JumpStart Tax. This tax is a tiered system of taxation with the highest tax levels for companies with annual payroll expenses of more than $1 billion dollars. The tax also is grated for individual income levels starting at amounts over $150,000. The prime target for the tax is Amazon, who is expected to accelerate its move to secure office space outside of Seattle. Amazon has an expansive Seattle footprint, but in recent years has moved to establish a presence in areas outside of the city. There are fears that the tax will pin Seattle’s economic future on local businesses remaining strong.
3) New York City plans to invest $157 million dollars to expand high speed internet service to low income residents as part of its plan to offer universal broadband service to New Yorkers. To pay for the expansion, the internet service providers would be charged for using the city’s infrastructure. The financially strapped city would fund the expansion by diverting $87 million from the police budget, which is being cut. But for the long run, the city is seeking state legislation to require internet service companies to pay for the use of the infrastructure they used to do business.
4) Stock market closings for – 7 JUL 20:
Dow 25,890.18 down 396.85
Nasdaq 10,343.89 down 89.76
S&P 500 3,145.32 down 34.40
10 Year Yield: down at 0.65%
Oil: down at $40.49