What we’re reading (10/4)
“Why Wall Street Investors Are Freaking Out” (CNN Business). “Several historic stock market crashes have haunted the autumnal month. Black Tuesday, the 1929 market plunge that led to the Great Depression, 1987’s Black Monday and the beginnings of the 2008 financial crisis all took place in October. October also marks the end of the fiscal year for many mutual funds in the United States. This sometimes leads to so-called “window dressing,” where fund managers sell poorly performing stocks and purchase better-performing alternatives to improve the appearance of their portfolios. These events have led investors to fear the cursed ‘October Effect,’ a perceived tendency for the stock market to decline through the month. Statistical evidence doesn’t quite support the phenomenon, but the level of superstitious caution on Wall Street is real.”
“Dow Adds 100 Points To Snap 3-Day Losing Streak As Treasury Yields Ease From 16-Year Highs” (CNBC). “The Dow Jones Industrial Average broke a three-day losing streak Wednesday as Treasury yields pulled back from multiyear highs following the release of much weaker-than-expected jobs data. The 30-stock index gained 127.17 points, or 0.39%, to close at 33,129.55. The S&P 500 added 0.81% and closed at 4,263.75. Meanwhile, the Nasdaq Composite gained 1.35% at 13,236.01. Within the S&P 500, consumer discretionary was the best-performing sector, rising about 2%. Tesla and Norwegian Cruise Line led the sector gains, adding 5.9% and 3.8%, respectively.”
“Is A College Degree No Longer A Good Investment? Walmart Plans To AX Degree Requirements From Hundreds Of Its Corporate Job Descriptions” (Daily Mail). “The retail giant said last week that it would get rid of 'unnecessary barriers' that prevent career advancement, and that job applicants would start seeing updated job descriptions next year. Walmart said it will waive the need for a university degree if candidates can show they have gained the necessary skills through alternative prior experience.”
“One In Eight US Households Saw Drop In Income Last Month” (Bloomberg). “The share of US adults with decreasing incomes has ticked higher in recent weeks, another sign that the labor market is slowly cooling. The increase — to 11.8% last month from 10.7% in August — was driven primarily by high- and middle-income households and the West region, according to a survey of the US labor market from data intelligence company Morning Consult. Among adults with an annual income of $100,000 or more, close to 20% say they expect their incomes to fall in the next four weeks.”
“Play it again, Sam” (Michael Lewis in the Washington Post). “‘Hey, this is Sam!’ said Sam, to his laptop, as his Zoom box opened. Onto his screen popped Anna Wintour, editor in chief of Vogue magazine. She wore a tight yellow dress and careful makeup and a bob cut so sharply that its fringes plunged and curved down around her face like the blades of two scythes. ‘I’m so happy to finally meet you!’ she said. ‘Hey, it’s great to meet you too!’ Sam replied. Sam didn’t really know who Anna Wintour was.”
