September 18, 2024

The Appetizer

“I had so much fun – felt like I could’ve just kept riding forever.”

• U.S. ultra-endurance cyclist Lael Wilcox after becoming the unofficial new female world record holder for the fastest world circumnavigation by bicycle.

Now, on to the numbers. Drum roll, please …

• 18,125 miles: The total distance Lael Wilcox rode in setting her cycling record. It took her 108 days, 12 hours, and 12 minutes.
• ~79%: The percentage of U.S. new vehicle sales that were SUVs and trucks through August, according to Motorintelligence.com.
• $500,000+: The possible auction sale price for a rare dime with a printing flaw, one of only two from 1975. The other one sold at a 2019 auction for $456,000.
• $80,610: The median inflation-adjusted U.S. income in 2023, up 4% from the previous year.
• $5.6 billion: The amount that Americans lost to cryptocurrency fraud schemes in 2023, up 45% from 2022, according to an FBI report.
• 17%: The increase in total memory bandwidth for the new Apple iPhone Pro models.
• $53,100,513,893: The handle (total amount of money wagered) to date in New Jersey, the highest of any state since sports betting became legal outside of Nevada in 2018.

Dig In
The Federal Reserve’s “Big” Decision

Autumn is almost here. The leaves are falling, interest rates are falling … who doesn’t love fall? Earlier today, the Federal Reserve (Fed) decided to end its rate hiking cycle aimed at controlling inflation by cutting its target rate by 50 basis points to 4.75% - 5.00%. The rate cut was widely expected, especially since the Fed increased rates 11 times between March 2022 and July 2023, and kept them steady since then.

So, why the change now? Some key labor market signals are starting to flash. For instance, the Bureau of Labor Statistics revealed the biggest downside revision to employment since 2009, suggesting that labor demand might not have been as strong as previously thought, while the unemployment rate has trended up over 2024. Shifting to inflation, monthly inflation is close to the Fed’s 2% target, with consumer price index and producer price index growth within range of the monthly figure that implies the 2% target.

Regarding the decision, the Federal Open Market Committee said, “Job gains have slowed, and the unemployment rate has moved up but remains low. Inflation has made further progress toward the Committee’s 2 percent objective but remains somewhat elevated.”

If you missed it, check out our recent Sight|Lines on whether rate cuts will be enough to keep the bull market going, or if a bear market is inevitable.

Weekly Specials

With four-fifths of Australians on social media, excessive screen time could be impacting mental health. To address this, Australia plans to introduce a minimum age for social media use, encouraging young people to spend less time online and more time outside, promoting better mental well-being.

I recall guest lecturers in college to be hit or miss. Seems like veterinary students in Hungary definitely had some star guests recently, though, as two horses joined them for their first day of class. Their professor believed the first lesson should always involve live animals to create a lasting impression. Thinking about it, horses are a safe bet ... dogs ... not memorable, snakes ... too scary ... komodo dragons…too dangerous.

Jared Isaacman and Sarah Gillis completed the first commercial spacewalk last week as part of SpaceX’s Polaris Dawn mission. Venturing 870 miles above Earth, the pair tested SpaceX’s new spacesuits, making history without straying too far from the capsule.

Air Bud in real life? Floki, a three-year-old border collie, has become a sensation on Brazilian beaches. Known for playing footvolley, a blend of soccer and volleyball, with locals, Floki’s skills have made him an icon among beachgoers.

Corporate Lunch

Red Lobster has been approved to exit Chapter 11 bankruptcy. Management has a new plan for making cheddar, and we aren’t talking about their biscuits.

“It’s Glowtime!” Apple announced a bunch of new devices, including the iPhone 16 with AI capabilities. Maybe one day they will offer a passive aggressive alarm clock that judges me for sleeping in. “Snoozing again? Maybe don’t scroll TikTok until 2 a.m. tonight.”

Who wants three phones for the price of three? 2.7 million people said, “ME!” and preordered Huawei’s new $2,800 trifold phone.

Starbucks just brought on the king of fast casual, Brian Niccol, as CEO. Brian was the CEO behind Chipotle tripling in value over the past five years. If you like carne asada in your burrito bowl, you have him to thank.

Campbell Soup Company is showing its snack segment a little more love and plans to drop “soup” from its corporate name after 155 years. The segment includes Goldfish crackers, Milano cookies, and those orange peanut butter cracker sandwiches that always turned heads at kindergarten lunchtime.

Underconsumption, aka not spending money, is the latest shopping trend. I consider myself a professional in this area. I only ate peanut butter, protein powder, and frozen raviolis for a week once.

Lululemon is seeing weaker demand for its women’s segment. The only reasonable explanation is global closet space is getting smaller.

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Past performance is not indicative of future results.