Scoops

Here's what happened this week affecting your money, home, and work: ?? America's wealthiest are the only ones not struggling to keep up with rising costs. According to data from Moody's Analytics, the top 10% of earners ($250K+ annual income) now account for nearly half of all consumer spending, a record high. Between September 2023 and September 2024, their spending increased by 12% while spending by middle- and lower-income households declined. Even over the past four years, when accounting for the rise in prices, the bottom 80% have barely increased their spending. This means economic growth is heavily reliant on the wealthiest Americans continuing to spend their boosted saving from rising stock and real estate values. ??? Government policy changes have started disrupting businesses. S&P Global's US Composite PMI Output Index, measuring overall business activity, dropped to a 17-month low of 50.4 in February, indicating almost no growth. The services sector, which makes up most of the economy, contracted for the first time in over two years, while manufacturing saw a temporary boost as firms rushed goods orders ahead of potential tariff increases. Businesses widely blamed uncertainty around government policies, including tariffs and federal spending cuts, for the slowdown. They're not sure what's going to happen next, and that's making them nervous to act. On top of that, the cost of manufacturing materials is increasing, primarily because of tariffs, which could make US goods more expensive for shoppers. All this uncertainty could make businesses less likely to invest and hire, slowing down the economy even more. ?? Americans are feeling much less optimistic about the economy in 2025. The University of Michigan reported that its consumer sentiment index plunged 9.8% in February to the lowest level in over a year. People are particularly concerned about tariffs leading to higher prices, which caused a 19% drop in how they feel about buying big-ticket items like appliances. Adding to the unease, people now expect the cost of living to rise 4.3% over the next year, up from 3.3% last month. This is the highest expectation for short-term inflation since November 2023. Looking further out, they also expect inflation to average 3.5% over the next five years, the highest it's been since 1995. Consuming spending powers the economy, so these negative feelings and higher inflation expectations could have serious implications for the health and hiring of American businesses. ??? It's still a challenging time to buy a home due to low supply and high prices. According to the National Association of Realtors (NAR), the number of existing homes resold in January declined 4.9% from December. There were 2% more homes on the market than a year ago, but still fewer than what the NAR thinks is the minimum for a healthy supply to sustain buyers. #ShareScoops #EconomyUpdates #StakeholderCapitalism

Don't miss these scoops this week about the companies impacting your life: ???? UnitedHealth Group: Practices Under Fire America's largest healthcare conglomerate faces Senate scrutiny into its billing practices after reports that it added extra diagnoses to patients' Medicare claims to overbill the government for things that were never treated. UnitedHealth also faces an investigation from the Justice Department over its Medicare billing practices, though it defends its methods. ? BP PLC: Clean Dream Cancelled BP is giving up on its ambitious plans of five years ago to shift from fossil fuels to clean energy production. Under a new CEO and pressure from investors for better returns, the energy giant scrapped its plan to grow renewables 20-fold by 2030. The oil major now aims to ramp up oil output to boost returns and trim green investment spending plans by $5B while selling off several low-performing assets and businesses. ?? DoorDash: Questionable Pay Practices DoorDash will pay $16.8M in back pay to 63,000 couriers after a state probe found it used tips to offset guaranteed wages from 2017 to 2019. It promised to update its app to split each order’s pay clearly, ensuring drivers see base pay and tips separately. The top US food delivery firm considers drivers contractors, which limits their access to employee benefits and protections like minimum wage but reduces costs for DoorDash. ?? Apple Inc: Back in Action Apple will finally be able to sell its new iPhones in Indonesian after a five‐month standoff after reaching an agreement with local regulators to invest $1B in local tech training to boost domestic innovation. The iPhone maker was banned due to new regulations requiring foreign companies to invest in the region in return for access to the massive market with hundreds of millions of young, tech-savvy consumers. ??? Exxon Mobil: Climate Accountability Exxon Mobil and other oil majors face a ruling that lets Puerto Rican towns sue over claims they downplayed climate change and impeded a shift to clean energy that led to 2017 hurricanes that devasted the region. The oil giant faces huge financial risks if courts around the world start to hold the industry accountable for mounting costs related to climate change. ?? NVidia: Steady Soaring Nvidia reported a record fourth quarter with $39.3B in revenue, up 78% year-over-year, and a 93% jump in data center sales fueled by booming AI demand. Full-year sales more than doubled to $130.5B. The chipmaking giant expects the momentum to continue, seeing rapid adoption of its newest AI chips and increasing demand from the evolving AI landscape with reasoning models, agents, and robotics. #ShareScoops #Economy #StakeholderCapitalism

Here's what happened this week affecting your money, home, and work: ??? Things are looking up for many small businesses. According to Bank of America data, small business revenues are growing faster than their expenses for the first time in three years. This is a good sign that their financial health is improving. Business owners are feeling a little less pressure to raise wages than in the past two years, which has helped relieve some strain on their costs. Payroll is usually the most significant cost for small businesses. There's some concern about tariffs, which are taxes on imported goods, potentially increasing costs again. However, for now, most small business owners don't seem too concerned about it. Small businesses employ half the US workforce, so a healthy Main Street economy can mean more job stability and economic resilience. ?? Americans are feeling the financial squeeze, with record-high credit card debt and rising delinquencies. Americans are borrowing more money than ever, with total household debt reaching a record $18.04 trillion at the end of 2024. The Federal Reserve Bank of New York's latest report on household debt and credit shows that total household debt reached a record $18.04 trillion at the end of 2024, with credit card balances jumping to a staggering $1.21 trillion. This increase is likely due to a combination of holiday spending and ongoing inflation. More people are falling behind on their payments. While mortgage delinquencies remain relatively low, and the overall delinquency rate of 3.6% is still below pre-pandemic levels, there's a worrying trend in auto loans and credit cards. Specifically, the share of auto loans that transitioned into serious delinquency rose to the highest since 2010, and credit card serious delinquencies matched the highest since 2011. This suggests that more and more people are struggling to pay their bills on time, especially when it comes to their cars and credit cards. ?? Big companies are raking in the profits. According to FactSet, with most S&P 500 companies having reported their fourth-quarter results, profits are up a whopping 16.9% compared to last year. This is the strongest profit growth we've seen in three years. A large majority of companies beat what analysts predicted, too. This kind of profit growth is usually good news for the stock market. While sales grew a respectable 5.2%, they didn't quite meet expectations. Interestingly, companies that do more business overseas saw even stronger profit growth than companies that mainly sell in the US. This suggests that even with a stronger dollar, international sales are still contributing to company bottom lines. These big companies employ a huge chunk of the American workforce, so these strong earnings could mean more job security and better returns for investors. #ShareScoops #Economy #FinancialEducation

Don't miss these scoops this week about the companies impacting your life: ???? UnitedHealth: Care Clash UnitedHealth, the nation’s largest health insurer, is trying to block an investor proposal to be more transparent with detailed reporting about how its practices of denying or delaying care affect public health and the economy. UnitedHealth, the nation’s largest health insurer, is trying to block an investor proposal to be more transparent with detailed reporting about how its practices of denying or delaying care affect public health and the economy. ??Microsoft: Quantum Leap Microsoft has revealed a new quantum computing chip, Majorana 1, with breakthroughs that suggest that the era of practical quantum computing may be approaching faster than many anticipated. The tech giant built the chip with advanced materials and prioritized error reduction, a key hurdle in quantum computing. They believe their design is more scalable and paves the way for vastly more powerful quantum computers in the not-too-distant future. ??Nikola: Complete Crash Nikola, once a high-flying electric truck startup valued more than Ford, has filed for bankruptcy. The company couldn't secure enough funding or a buyer to stay afloat after a series of financial and production failures that began with its founder being convicted of fraud. Despite eventually producing electric and hydrogen trucks, Nikola struggled with recalls, high production costs, and low demand. ??PepsiCo: Unfair Pricing PepsiCo is facing legal challenges over its pricing practices. Federal regulators and a group of convenience stores have filed lawsuits accusing the company of price discrimination and alleging that PepsiCo offered more favorable deals and discounts to large retailers like Walmart, leaving smaller businesses paying higher prices. The snack and beverage giant disputes these claims, asserting that its pricing strategies are standard practice and don't unfairly favor specific retailers. ?? Citigroup: Turnaround Bonus Citi has boosted CEO Jane Fraser's compensation by a hefty 33% to $34.5 million for 2024. The bank's board credited revenue growth, improved profits, and Fraser's restructuring efforts for the raise. She has been streamlining operations and reducing the workforce. However, the Wall Street Giant still faces regulatory hurdles from past risk management and data control issues. ?? Tesla: Into India Tesla is gearing up for its long-awaited entry into India, expecting to ship its first cars to India and sell them in major cities soon. While local production remains possible, Tesla's initial foray into the Indian market will likely rely on imports. The electric vehicle maker's push into India has gained momentum following a recent meeting between CEO Elon Musk and Prime Minister Modi. Tesla is actively hiring in India and preparing for sales and deliveries.

Checking in: How has UnitedHealth responded since the attack on its CEO? Here's the main news so far: ?? CEO op-ed in NYT calling for change ?? Revealed 190 million impacted by private data breach ?? Hired defamation lawyers ?? Announced buyouts/layoffs for 30,000 workers ?? Filed to remove investor proposals for transparency reporting Let me know if there's anything I missed. Should they be doing more? Or is this the right time to stay silent?

"Wages are keeping up with inflation." ??.... Are they really? The headlines say pay is rising, but the reality is more complicated. Real wages have grown over the past five years but at half the pace of the previous five years. ?? Average hourly earnings have risen just 0.5% beyond inflation ?? The employment cost index (which tracks wages and benefits) actually lost ground ?? Pay growth is uneven, with big gains in lower-wage sectors while finance, tech, and other higher-paying industries lag behind So, if your paycheck isn't going as far, you're not imagining it. Even with overall wage gains, rising costs—especially in housing, insurance, and key services—mean many people feel like they're falling behind. But there is one clear way to get ahead. ?? Job changers saw 6.8% median wage growth last year—compared to just 4.7% for those who stayed put. ?? And if you're staying put, asking for a raise is still the most effective way to get one. Wage growth is happening—but it's far from even.

Here's what happened this week that you need to know 1. Valentine's Day is typically a high-spending holiday for couples, but many wish to skip it. A recent LendingTree survey found that 82% of people in relationships plan to purchase a gift or experience for their significant other, spending about $179 on average ($258 by men versus $106 by women). However, 56% admitted they would skip the holiday if they could, and a third think they might take on credit card debt for it. Nearly half those planning to take on debt don't expect to tell their partner. If you're feeling the pressure to celebrate, remember that thoughtful gestures don't have to strain your budget. 2.Inflation is picking back up, and it's not just egg prices. According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 0.5% last month, the largest increase in nearly a year and a half. The cost of living has increased by 3% over the past year, still above policymakers' target of 2% annual inflation. Food prices jumped 0.4%, driven higher by soaring egg prices. The cost of eggs surged over 15% last month, up over 50% in the past year due to an avian flu outbreak that has killed tens of millions of chickens in the past few months. Energy costs also climbed, with prices at the pump up 1.8% in the past month. While food and energy prices are normally volatile, they weren't the only drivers of inflation. The so-called core CPI, which excludes food and energy, rose at the fastest pace in months, up 0.4% in January and 3.3% for the year. The main driver was rising shelter costs, including rents, which rose 0.4%, making housing more expensive. Motor insurance, user vehicles, medical care, airfares, and most other major categories got more expensive. 3. Small business optimism dipped in January as hiring challenges weighed on owners. According to the latest National Federation of Independent Business (NFIB) report, the Small Business Optimism Index fell by 2.3 points to 102.8, still above the 51-year average. Business owners are struggling to find qualified workers, with 35% reporting they have job openings they can't fill. This labor shortage has also driven up the Uncertainty Index by 14 points to 100, one of the highest recorded levels. Small businesses may be more willing to hire if you're looking for work and having trouble landing a job. 4. Americans have lost some confidence in the future of the economy in recent weeks. University of Michigan's consumer survey showed sentiment at its lowest since July and inflation expectations for the year ahead rising dramatically from 3.3% to 4.3%. That's the second straight month of significant increases in people's expectations for a steeper cost of living. However, a separate survey from the New York Federal Reserve didn't signal any major spike in near-term inflation expectations but noted a slight uptick in longer-term concerns. #Economy #ShareScoops

Here are Scoops you should know about companies impacting your life. 1. Patient Prioritization One of America's biggest health insurers is tying executive pay to customer satisfaction, hiring more support staff, and boosting digital tools in response to nationwide criticism of the industry's practices. Cigna plans to release an annual claims report to increase transparency and decrease out-of-pocket prescription costs. 2. Diversity Crackdown Comcast faces an FCC regulatory probe into its Diversity, Equity, and Inclusion (DEI) efforts, covering its cable services and media arm NBCUniversal amid new federal guidelines barring DEI policies. Comcast has pledged full cooperation and asserts its commitment to inclusion. Yet, the review may force a fresh look at its long-established practices for promoting an inclusive and equitable work environment for women and minorities. 3. Dropping Diversity Goldman Sachs ended its four-year board diversity rule that required companies going public to have two diverse board members, citing recent shifts in legal views on race and gender quotas in business. The Wall Street bank says it still values varied board perspectives and will promote diverse views without a strict mandate. 4. DEI Backlash Starbucks is being sued by Missouri for linking executive pay to employee race and gender representation targets, claiming the policy has led to slower service and higher costs by hiring less qualified workers. The coffee chain defends its programs as fair, dismissing the claims as inaccurate. 5. Rejected Advances Spirit Airlines turned down another buyout offer from rival discount carrier Frontier, opting to resolve its financial troubles through bankruptcy instead. The proposal would have mixed debt with equity while waiving a fee. The budget airline declared bankruptcy in November and is now steering its reorganization with a sharp focus on streamlining operations. #ShareScoops #WeeklyUpdates #ShareholderCapitalism

Here are Scoops you should know about companies impacting your life. 1. Artificial Inflation The world's largest beef producer, JBS, has agreed to pay $83.5 million to settle US antitrust claims that it conspired to inflate beef prices by limiting supply. It will also assist in ongoing legal actions against other meat producers like Tyson Foods. This marks JBS's third settlement over price-fixing allegations, bringing its total payouts to over $160 million. 2. Waste to Wealth Walmart is transforming unsold food into compost now sold in over 600 stores, aiming to cut food waste by 50% by 2030. The company has already reduced food waste by 12% since 2016. This composting initiative helps the retailer divert 78% of its waste from landfills, reducing methane emissions and advancing its sustainability goals. 3. Employee Support Warehouse retail giant Costco is ratcheting employee wages, announcing plans to raise its top hourly pay for non-union workers to over $30 in March with additional raises for the next two years. Its minimum hourly wage will jump to $20. Costco also reached a tentative agreement with the union workers for better pay and benefits amid rising living costs, avoiding a strike by 18,000 workers. 4. Payout Pause Walgreens has suspended its quarterly dividend payouts to shareholders for the first time in over 90 years, aiming to focus on restructuring amid rising costs and legal issues. America's 2nd largest pharmacy chain is working to cut costs by $1 billion and close 1,200 stores. 5. Pricing Power Disney has started to lose Disney+ streaming subscribers after raising prices consistently over the past year, though the division is now making a profit. The entertainment giant owned the box office last year with big animated and Marvel sequels. Plus, its theme parks reached record profits despite slowing traffic. 6. Challenges Ahead Amazon had a strong fourth quarter with revenue up 10% and profits nearly doubled. It now warned of a 5-9% revenue growth rate next quarter, its slowest ever due to a stronger dollar devaluing international sales. The e-commerce giant’s lower forecast comes amid aggressive cost cuts and robust AI investments amid rising competition in cloud. 7. Costly Ambitions Google parent Alphabet reported another quarter of surging profits, driven by massive growth in advertising revenue across its Search, YouTube, and other channels, as well as its soaring Cloud business. However, the revenue didn't meet some investors' high expectations. The tech giant announced plans for an additional $75 billion investment in AI-related capital expenditures for 2025 as competition heats up. #StakeholderCapitalism #ShareScoops

Here's what happened this week that you need to know 1. American worker productivity soared last year, and people got paid more for it. The Labor Department reported that US?worker productivity increased by 2.3% in 2024, the most significant increase in hourly output in 14 years, excluding the 2020 post-lockdown snapback. 2. Individual traders are leaning hard into the stock market. Everyday investors are more exposed to the stock market than at any time in nearly 30 years, and their enthusiasm is only growing. During the trade war selloff on Monday, they poured a record $3 billion into stocks, followed by over $2 billion within the first 90 minutes of trading on Tuesday—the largest early-session inflow in at least a decade, according to JPMorgan. These at-home traders have now poured over $2 billion into the market on five days this year, a level reached only nine times in the past three years. 3. It's still pretty challenging to find a new job. The number of job openings dropped in December, which could mean fewer opportunities for job seekers. According to the Bureau of Labor Statistics, job openings decreased by 556,000 to 7.6 million, the lowest since September and 1.3 million less than a year ago. The number of openings is still above pre-crisis levels, and everything points to a job market that's pretty steady. 4. People are saving less as costs keep climbing. The Bureau of Labor Statistics reported that Americans’ personal saving rate fell to a two-year low of 3.8% in December as spending outpaced income growth. Personal spending surged 0.7%, while disposable income rose only 0.4%. This wasn’t all about holiday splurging. The areas driving the increased spending were essentials like housing, utilities, transportation, gas, and other energy costs. 5. Layoffs rose last week but remain low relative to history. The Labor Department reported that initial jobless claims climbed to 219,000 last week, a normal level for a healthy economy. Continuing claims, representing those receiving unemployment benefits for consecutive weeks, also rose to 1.87 million. #StakeholderCapitalism #ShareScoops #Economy