What we’re reading (11/22)
“Guitar Center Is Filing For Bankruptcy” (CNN Business). “Guitar Center is filing for Chapter 11 bankruptcy, the latest company to go bankrupt during the pandemic that has decimated America's retail sector. The 61-year-old company -- the biggest musical instrument retailer in the United States -- had tried to stay afloat during the coronavirus pandemic by offering virtual music lessons. But Guitar Center was forced to close many of its stores in March during nationwide lockdowns, and it struggled to get customers to buy instruments as the economy headed south.”
“Just In Case The Base Case Goes Bad” (Briefing). “At this point, the stock market has maintained a resolve that one could say is downright heartless, trading up to all-time highs at the same time daily coronavirus cases hit new all-time highs and media reports highlight stressed hospital systems, stressed-out health care workers, and waning capacity in ICUs. That's a potential problem in the making and we don't just mean the coronavirus situation. Investor sentiment is running at high levels and is starting to ring some alarm bells as a contrarian warning sign.”
“Why Some Tech Workers Leaving Silicon Valley Are Changing Jobs” (Wall Street Journal). “For years, high-talent tech workers have been drawn to Silicon Valley, willing to put up with exorbitant housing prices and long commutes to benefit from the skill and experience of their colleagues, and the largess of employers and investors. The result, a culture of entrepreneurialism and inspiration, has been hard to match elsewhere. But the remote-work era ushered in by the coronavirus pandemic is upending not only where tech workers want to live and how much money they can make, but also what kinds of opportunities they are willing to consider.”
“Gap And A Bunch Of Other Retailers Report Earnings This Week. What It Means For Their Stocks.” (Barron’s). “This past week brought earnings from retail heavy hitters, and a slew of reports are due out next week as well. Those results could show how specialty stores are faring even as the big essential stores continue to gobble up market share. Urban Outfitters (URBN) will kick off the week with earnings on Monday, but most reports are due out on Tuesday, including Abercrombie & Fitch (ANF), Best Buy (BBY), Burlington Stores (BURL), Dollar Tree (DLTR), Gap (GPS), and Nordstrom (JWN).”
“Hot Holiday Toys: Baby Yoda, L.O.L. Remix and Nostalgic Favorites” (Washington Post). “Americans may be cutting back on clothing, electronics and travel during the coronavirus recession, but they are spending handsomely on toys. Toy sales have surged 18 percent so far this year, with parents spending more on games, outdoor activities, building sets and crafts to keep children entertained at home, according to NPD Group. Analysts expect that growth to continue into the holidays.”
