What we’re reading (8/1)
“S&P 500, Nasdaq Start August Lower While Apple, Amazon Earnings And Jobs Data Loom This Week” (MarketWatch). “U.S. stocks ended mostly lower Tuesday afternoon, pulling back from 16-month highs and a five-month winning streak, while in a wait-and-see mode ahead of jobs numbers and major technology company earnings reports later this week.”
“Fitch Downgrades The United States’ Long-Term Ratings To ‘AA+’ From 'AAA'; Outlook Stable” (FitchRatings). “The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to 'AA' and 'AAA' rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”
“Maintaining Dollar Dominance Requires The US To Do What Spider-Man Would Do, Analyst Says” (Insider). “‘Americans should recognize the applicability of the Spider-Man adage to the dollar, and US leaders should adopt it as an overarching principle for all aspects of dollar policy,’ he [Paul Blustein, of CSIS] wrote. ‘Much is riding on how Washington uses the power that comes with the world's dominant currency. Whether it is wielded responsibly or not should be of profound concern to citizens of the US and other countries alike.’”
“CVS To Slash 5,000 Jobs As Company Deepens Costly Health-Care Push” (CNBC). “A CVS spokesperson confirmed the layoffs and said they are not expected to affect ‘customer-facing colleagues in our stores, pharmacies, clinics, or customer services centers.’ The spokesperson added that employees laid off will receive severance pay and benefits, including access to outplacement services.”
“Uber’s Business Is Finally Making Money After Years Of Losses” (Wall Street Journal). “The results for the three months through June were driven by solid growth in both of Uber’s core businesses, as the number of rides in the U.S. and Canada surpassed prepandemic levels for the first time and demand for delivery stayed strong despite restaurant reopenings. The quarter was the first since Uber’s 2009 founding that it reported its underlying operations were profitable. The easy availability of capital for much of the past decade had Uber and others burning tens of billions of dollars in an attempt to gain market share.”
