Good Morning! The next few weeks of August are some of the slowest weeks in corporate America. But it’s still going to be a busy week for stocks - they’re facing a couple of tests between Nvidia reporting earnings on Wednesday and Powell speaking at the Fed symposium on Friday. And even though stocks are having their worst rout since February, bond investors say this is the best buying opportunity in years thanks to the summer sell-off of U.S. Treasuries.

The Midwest-based grocery chain Kroger claimed the crown as America’s top sushi seller after selling 40 million pieces last year - giving Nobu a run for its money. US Steel, a former manufacturing titan, is finding itself in the crosshairs of a bidding frenzy, with multiple $7B+ offers on the table. And the iPhone 15, likely to be revealed next month, is rumored to include a USB Type-C charger port, which would be one of the biggest upgrades in years.

_{SQUEEZ OF THE DAY}

Dow Jones and the Seven Splits

When it comes to business strategy, bigger used to be better for Disney. Think about where the company was heading just before the pandemic - Disney+ had 10 million subscribers, and the company had just acquired 21st Century Fox for $71 billion. The company cross-marketed to consumers everywhere, from theaters, theme parks, and directly to your home via streaming.

But the company’s growth has been sluggish, from theme parks to streaming alike. The stock is trading near its eight-year low, down 56% from its all-time high in 2021. And with Bob Iger publicly questioning whether the company is too big, Wall Street agrees - and some are calling for the company’s breakup.

One Wall Street analyst even asked Iger last week why he doesn't just create two Disney companies - one focused on parks & Disney+, and another on everything else?

Disney says they’re focusing on three growth businesses: its theme parks, film studios, and streaming. And publicly, they say spinning-off anything else is on the table, especially its legacy TV assets like ABC, FX, and National Geographic.

And at the center of Disney’s streaming ambitions? ESPN, which the company wants to turn into a full-fledged streamer. But some Wall Street analysts aren’t buying it - sports rights are expensive, and consumers might not want to buy an additional streaming service when they can already watch a sports cable bundle.

Takeaway: Disney’s Wall Street investors are pushing for a breakup. And a company split would allow Disney to offload its debt, cut out its loss-leader products, and focus on a clearer direction for the future. However, there's growing concern on Wall Street that the company might be too big for a smooth separation.

_{CAPITAL PULSE}

Markets Rundown

Stocks closed flat as energy and defensive stocks countered mega-cap declines.

Movers & Shakers

• (+) Blue Bird ($BLBD) +6% after Bank of America initiated coverage on the school bus manufacturer.

• (+) Ross Stores ($ROST) +5% after the discount retailer had a strong quarter.

• (–) Keysight ($KEYS) -14% after a downgrade by Barclays.

Private Dealmaking

• Marsh nearing acquisition of Honan, an Australian insurance broker, for $448 million

• Sangon Biotech, a provider of life sciences research tools, raised $290 million

• Viome Life Sciences, a genomic testing startup, raised $86.5 million

• Dcbel, a home energy management startup, raised $50 million

• Fizz, a social app for college students, raised $25 million

• D’Amelio Brands, a company founded by the D’Amelio TikTok stars, raised $5 million

Get access to private deal flow here.

_{EXCEL WEBINAR}

Save the Date - Excel Webinar

Want to use Excel like a Wall Street banker aka mega-fast and without a mouse? Well now is your chance with our Excel Webinar.

Tomorrow (August 22) at 8pm ET, we're hosting a detailed Excel session with our private equity associate Henry Copses.

Gain insights into the sophisticated techniques of Wall Street Excel and the art of spreadsheet navigation without relying on your mouse.

Rather than navigating the maze of pricey corporate training programs, this is a chance to learn from someone with firsthand experience in investment banking and private equity.

Last few spots left, secure your spot here.

_HEADLINES

Top Reads

• Many family offices plagued by group-think investing (CNBC)

• AI threatens hourly revenue model (Axios)

• Jared Kushner’s deal-making career off to a sluggish start (WSJ)

• The next phase of the Fed’s historic inflation fight (CNN)

• Nasdaq set for worst month of 2023 as interest rates rise (Axios)

• Apollo fires infrastructure head for inappropriate behavior (BB)

• Why C-Suite turnover is happening at a rapid rate (YF)

• Why Maui’s rebuilding effort will be so expensive (CNN)

• China’s 40-year boom is over (WSJ)

• S&P 500 Q2 2023 earnings beat Wall Street expectations (Axios)

_{BOOK OF THE DAY}

Billion Dollar Brand Club

Dollar Shave Club and its hilarious marketing. Casper mattresses popping out of a box. Third Love’s lingerie designed specifically for each woman’s body. Warby Parker mailing you five pairs of glasses to choose from. You’ve seen their ads. You (or someone you know) use their products.

Each may appear, in isolation, as a rare David with the bravado to confront a Goliath, but taken together they represent a seismic shift in a business model that has lasted more than a century.

As Lawrence Ingrassia--former business and economics editor and deputy managing editor at the New York Times--shows in this timely and eye-opening book, a growing number of digital entrepreneurs have found new and creative ways to crack the code on the bonanza of physical goods that move through our lives every day.

Billion Dollar Brand Club reveals the world of the entrepreneurs, venture capitalists, and corporate behemoths battling over this terrain. And what fun it is. It’s a massive, high-stakes business saga animated by the personalities, flashes of insight, and stories behind the stuff we use every day.

“The good news for brands, new and old, is that the market for consumer products isn’t just tens of billions or even hundreds of billions of dollars a year, but several trillion dollars a year in the United States alone.”

_{ENLIGHTENMENT}

Short Squeez Picks

• The best resume formats for candidates

• The most misunderstood concept in psychology

• 3 in-demand skills employers want to see on your resume

• The best NYC seafood restaurants to make you feel on vacation

• A retiring consultant’s advice on consultants

_{DAILY VISUAL}

Benchmark Treasury Yield Hits 15-year High

_{SPONSORED BY WELLCORE}

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_{DAILY ACUMEN}

Facing Challenges

Ever pondered the question, "Why must we learn calculus?" I certainly did as a teenager, often opting to coast by, thinking the intricacies of math would never apply in the 'real world'. However, the true lesson isn't about mastering calculus; it's about mastering challenges.

Our self-belief isn’t solely based on accolades but on our history of facing and overcoming challenges. Mastering a tough subject equips us to tackle workplace conundrums with finesse. Conversely, shying away from challenges makes even small hiccups feel insurmountable.

The essence isn’t necessarily about securing top grades. It's about cultivating resilience and the confidence to face complexities. Whether it’s through calculus, or another demanding endeavor, it's invaluable to prove to oneself that ANY challenge can be surmounted. So go ahead and start that project you always wanted to. You can do it.

_{MEME-A-PALOOZA}

Memes of the Day