What we’re reading (5/27)
“Wall Street Rebels Against Exxon” (DealBook). “Exxon Mobil suffered a stunning loss at its annual shareholder meeting yesterday, as a small new activist investor focused on climate change, Engine No. 1, won at least two seats on its 12-member board. To corporate America, the upset was a clear sign that company boards and leaders need to pay attention to environmental, social and governance issues (known as E.S.G.) — or suffer rebukes.”
“Larry Summers Sends Stark Inflation Warning To Joe Biden” (CNN Business). “Larry Summers is urging Washington to tap the brakes on stimulus — or risk unleashing a serious burst of inflation.‘I think policy is rather overdoing it,’ Summers said in recorded comments at a CoinDesk conference that were released Wednesday. ‘The sense of serenity and complacency being projected by the economic policymakers, that this is all something that can easily be managed, is misplaced.’”
“‘God Told Me to Put Money Into Hertz’: How Small Investors Are Upending Wall Street” (Wall Street Journal). “Many small investors are beating Wall Street pros at their own game. A basket of stocks favored by individuals has outperformed the broader market since March of last year, according to Vanda Research. This group, which includes behemoths like Apple Inc. and Tesla Inc. alongside electric-vehicle maker NIO Inc. and digital-payments company Square Inc., has gained 68% since the beginning of March 2020, far outpacing the S&P 500’s roughly 36% climb.”
“An Economic Theory Called ‘Reallocation Friction’ May Explain Why Employers Are Having A Hard Time Finding Workers — And Why A Full Recovery Could Be Years Away” (Business Insider). “In a normal economy, it's not a problem when workers change careers; other jobseekers can come in to take their place. But an exodus, like the one we may be seeing now in hotels and restaurants, is different. It can take time for workers to find a job in an unfamiliar industry in which they have few connections. Their new positions could require them to move to another city or state. And inexperienced workers require training to build up the necessary skills. Until all that happens, jobs go unfilled — keeping unemployment elevated, even though the demand for those jobs is there. Economists call it reallocation friction.”
“Best Buy Sales Jump 36% As Consumers Splurge On Electronics, Retailer Raises Forecast” (CNBC). “Best Buy said Thursday that sales grew 36% in the fiscal first quarter as shoppers’ stimulus-fueled spending spree included consumer electronics. Shares of the company 3.3% in premarket trading after the home electronics and appliance retailer raised its forecast.”
