What we’re reading (2/26)
“Time For A Tantrum?” (New York Times). “The S&P 500 suffered its worst single-day drop in a month yesterday, with tech stocks hard hit. But the big story is in bonds, where yields surged (and prices fell) as investors worried that the Fed wasn’t, well, worried enough.”
“How Will A Surge In Bond Yields Affect Your Mortgage, Car Loans And 401(k)?” (USA Today). “What's pushing yields higher yield? As the U.S. continues to climb out of its pandemic-induced recession, optimism has grown that further stimulus aid and widespread COVID vaccinations will help the economy expand rapidly later this year. So rising bond yields typically signal that investors are hopeful for more economic growth in the future. But they can also indicate that a potential spike in inflation is just around the corner.”
“Best Buy Just Laid Off 5,000 Workings And Will Close More Stores” (CNN Business). “Best Buy said Thursday that it laid off 5,000 workers this month and is planning to close more stores this year as more consumers buy electronics online. The news comes at a time when big chains face growing competition from Amazon and other sites that sell items like TVs and laptops. Fry's Electronics said Wednesday that it would abruptly close all of its stores overnight, ending nearly four-decades in business.”
“Beyond Meat Signs Supply Deals With McDonald’s, Yum” (Wall Street Journal). “The deals boost Beyond’s prospects as more restaurants resume in-person dining, after Covid-19 forced shutdowns and restrictions on eating out over the past year. The pandemic’s blow to the food-service industry hurt Beyond’s business, which had been heavily propelled by restaurants in recent years, and prompted the company to focus more on supermarket sales.”
“Goldman Says Stock-Transfer Taxes Aren’t All Bad, As Long As They’re Not In New York” (Dealbreaker). “There is a growing consensus: The stock transfer tax under consideration by the New York State Legislature would be a disaster. An end to New York City as we know it, because passing it would force every bank and hedge fund and financial services player to up and move to Palm Beach or Houston, permanently immiserating the capital of global capitalism. Everyone says this: the Atlanta-based New York Stock Exchange, the nominally Democratic governor’s nominally Democratic tax commissioner and, through its membership in the Securities Industry and Financial Markets Association, Goldman Sachs.”
