News Without All The Nonsense (Sponsor)

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A Textbook Non-Recessionary Bear Market (3 min read)

Bear markets can be recessionary or non-recessionary based. This article looks at the historical average declines and number of days for both recessionary and non-recessionary bear markets. It shows that the recent bear market was considered non-recessionary despite worries about inflation and interest rates. This data suggest the market is likely bottomed, but it also raised concerns about whether the next bear market will be recessionary based.

Here's why the Fed's rate hikes haven't actually hit Americans that hard (2 min read)

Most Americans were not heavily impacted by the Fed's rate hikes because the majority of household debt is locked into lower fixed rates. Only 11.1% of US household debt had floating rates, which adjust higher with Fed’s rate hikes. But many Americans secured fixed-rate borrowing during the historically low-rate period after the Great Recession, protecting them from rising rates. The impact of rate hikes is more noticeable on credit cards, leading to potentially higher delinquency rates.

Job openings, layoffs declined in June in a positive sign for the US labor market (3 min read)

The Job Openings and Labor Turnover Survey (JOLTS) showed job vacancies and layoffs slightly declined in June, which may indicate a stable labor market. US Job openings totaled 9.58 million, the lowest since April 2021, while layoffs were 1.53 million, a decrease from last month. The data suggests that demand for labor is slowing as the Fed hopes, and companies are retaining workers, which may prevent a spike in the unemployment rate.

CVS is laying off 5,000 workers (2 min read)

CVS is cutting about 5,000 jobs in non customer-facing positions to reduce expenses and adapt to new health needs and expectations. Last year, CVS had already closed 900 stores, about 10% of its footprint, due to changing consumer buying patterns. The company believes the decision to cut costs will lead to long-term success in the industry. The move came just before its quarterly earnings report on Wednesday and the stock was mostly muted following the news.

Bed Bath & Beyond is back from the dead (3 min read)

Overstock.com has relaunched as BedBathandBeyond.com after acquiring Bed Bath & Beyond's brand out of bankruptcy. The move merges Overstock's online model and categories with popular Bed Bath & Beyond products. It will operate as a digital-only version without physical stores for now. The company is considering changing its corporate name and ticker symbol to better align with the brand.

Uber shares drop despite first operating profit ever (2 min read)

Uber reported its first-ever quarter profit but its stock dropped over 6% on Tuesday. The decline was attributed to the company’s warning of effective pricing competition from Lyft and setting an earnings forecast, which is better than analysts' expectations but may have disappointed investors who have driven up the stock two-fold this year. Uber’s Q2 revenue was also slightly below estimates and the growth rate was slower than in the previous quarter and a year earlier.

$15B Flowed Into ETFs Last Week (Table Chart)

This table chart highlights the last week’s US-listed ETF flows by ETFs, asset classes, and the best performers. US equities continued to gain most of the inflows, especially into S&P 500 ETFs amid a strong market rally. The outflows were mainly short-term bond ETFs but the overall inflows for fixed income were still strong.

100% Downside Protection (Podcast)

Innovator ETFs, known for their buffer or defined outcome strategies, recently launched the first ETF to offer 100% downside protection in the US. The new ETF aims to protect investors against all market losses over a two-year period by using put and call options based on the S&P 500 index. This podcast is with the CEO of Innovator ETFs, Bruce Bond, where he discusses this ETF in-depth and how investors can implement it in their portfolios.

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