What we’re reading (11/27)
“The Stock Market And Derivatives Are Sending Different Signals” (Wall Street Journal). “Rising stock indexes suggest investors are breathing a sigh of relief right now…[But] the Cboe Volatility Index has hovered above 20 since Feb. 24…the longest such streak since one ending in 2009 during the financial crisis, according to Dow Jones Market Data. The gauge [the Cboe Volatility Index, or “VIX”] is based on options prices tied to the S&P 500 and tends to fall as stocks are rising. The VIX at an elevated level signals investors remain cautious despite a stock market that is flying high, with concerns lingering that the volatility that gripped markets earlier in the year could return.”
“Why Are House Sales Such A Bad Deal For Every American?” (Real Clear Markets). “Put into perspective, the median American family gives up around half of their yearly income to sell a $500,000 home. Many accept these fees as necessary. They are not. Like the stock spreads of 1980s Wall Street, high real estate fees are the product of a well-organized, influential cartel whose sole purpose is to line its own pockets at the expense of consumers.”
“What C.E.O.s Are Worried About” (New York Times). “As coronavirus cases continue to rise, Harvard recently convened two dozen executives from companies like BlackRock, CVS Health, Kohl’s, PayPal and Walmart to discuss the pandemic’s impact on business. One professor at the closed-door meeting was Joseph Allen of Harvard’s School of Public Health, who has been advising companies on pandemic-related matters. He spoke with DealBook about what corporate chiefs say when they speak candidly with one another, as they look to the next phase of the pandemic — and beyond.”
“JPMorgan Chase To Pay $250 Million For Failings In Asset, Wealth Business” (Reuters). “JPMorgan Chase & Co has agreed to pay $250 million for risk management and other control failings in its asset and wealth management business, a U.S. regulator said on Tuesday, in the second chunky penalty for the bank in less than two months.”
“Profits Are ‘Soaring’ For Large Retailers—But Frontline Workers Are Barely Earning More” (CNBC). “A new report from the Brookings Institute finds that while top retailers’ profits have “soared” during the coronavirus pandemic, pay for frontline workers has barely budged. Brookings analyzed the earnings and compensation of frontline employees at 13 of the biggest retailers in the U.S. between March 13 and November 19 of this year, including Albertsons, Amazon, Best Buy, Costco, CVS Health, Dollar General, Home Depot, Kroger, Target and Walmart. While the companies in the report made an average of 39% more in profit this year compared to 2019, pay for their essential workers increased by just 10% on average, or $1.11 per hour, over the course of the pandemic.”
