What we’re reading (8/8)
“S&P 500 Jumps 2.3% in Best Day Since 2022” (Wall Street Journal). “The S&P 500 posted its best day in nearly two years after a better-than-expected jobless claims report helped ease fears that the labor market is weakening. U.S. stock futures and Treasury yields rose immediately after the release of data showing initial jobless claims, a proxy for layoffs, were 233,000 during the week ended Aug. 3, down from the prior week’s recent high of 250,000. That helped alleviate some of the concern about a U.S. labor-market slowdown that rattled markets after last week’s weaker-than-expected jobs report.”
“U.S. Mortgage Rates Drop Sharply, With 30-Year At 6.47%” (New York Times). “Mortgage rates have fallen to their lowest level in more than a year, a balm for prospective home buyers and sellers in a challenging real estate market. The average rate on 30-year mortgages, the most popular home loan in the United States, dropped to 6.47 percent this week, Freddie Mac reported on Thursday.”
“Is There An AI Bubble — And Is It About To Pop?” (Vox). “How much is the future worth? Usually to answer that question, you’d need to ask philosophers or economists. But if you’re a tech CEO, you have an actual number: about $1 trillion. That’s how much the tech industry as a whole is set to spend building out the artificial intelligence industry over the coming years. And even in Silicon Valley, where several companies have market capitalizations that start with ‘T,’ a trillion dollars is a lot of money. And while you won’t find more fervent evangelists for AI anywhere than in the C-suite of companies like Google and Microsoft, eventually, all that money has to be recouped. The alternative would be an economic meltdown of the sort we haven’t experienced for years.”
“Paramount’s TV Networks Are Collapsing In A $6 Billion Hole” (Business Insider). “On Wednesday, Warner Bros. Discovery told investors its TV business was in free-fall, and that it would take a $9 billion writedown on those assets. On Thursday, it was Paramount's turn: The entertainment conglomerate, which is about to be acquired by David Ellison and a consortium of investors, just took a $6 billion charge on its TV business. For context: Public investors value all of Paramount's equity at $7 billion.”
“Not To Be Sniffed At: Dolce & Gabbana Launches Luxury Dog Perfume” (HNGN). “No need to wrestle your dog into the bath anymore. Italian luxury fashion house Dolce & Gabbana has launched a new perfume for canine companions. The ‘alcohol-free scented mist for dogs’ is on sale for 99 euros ($108 USD) and comes with a free collar -- but also a warning from animal rights activists, who say it could cause pets distress.”
