Good Morning! It's not just streamers launching ad-free tiers anymore - TikTok and Meta are exploring ad-free subscription tiers, possibly priced at $10-15/month.

Netflix is waiting for labor strikes to subside before raising its prices. In the job market, fewer Americans are quitting their jobs after a few years of high employee turnover. It was hard to recognize SBF in court yesterday with a new haircut. And Barclays thinks weight-loss drugs mean Americans will start eating healthier and is suggesting investors short fast food stocks.

_{SQUEEZ OF THE DAY}

Job Market's Plot Twist

Yesterday, investors got rattled when August’s job market data was released.

They were hoping for an economic slowdown and were shocked when 9.6 million job openings were announced, a 690k increase from July.

Openings had been on the decline for the last few months, indicating that Fed’s interest rate hikes were beginning to have an impact on a labor market that had been hit by a large supply-demand mismatch in which openings had outnumbered available workers 2 to 1.

Most economists are skeptical of the numbers. They don’t think the job market is as scorching hot as the data makes it out to be. Actual business hiring remained mostly unchanged, and last quarter's job additions were less than half of Q1 2023.

And across the economy, the professional and business services industry was an outlier. Firms went on hiring sprees, in part to meet generative AI demand.

The news drove stocks down because bond yields went up - investors put higher odds on more Fed rate increases.

Takeaway: Everyone thought we were on track for a soft landing, and the job market is probably cooling down. That said, we’re not totally out of the recession woods yet - and even if August’s job market data is an outlier, it isn’t calming investors. It’s smelling like another rate hike might be around the corner.

_{CAPITAL PULSE}

Markets Rundown

Stocks closed lower over jobs data worries.

Movers & Shakers

• (+) Warby Parker ($WRBY) +3% after the eye maker was upgraded by Evercore.

• (–) Airbnb ($ABNB) -6% after a downgrade by KeyBank.

• (–) Rivian ($RIVN) -8% after underwhelming delivery guidance.

Private Dealmaking

• Eli Lilly bought Point Biopharma Global, a cancer therapies developer, for $1.4 billion

• iA bought Vericity, a life insurer, for $170 million

• Stampli, an accounts payable automation startup, raised $61 million

• Pulumi, an infrastructure-as-code platform, raised $41 million 

• Trasnfr, a VR-based skills provider, raised $40 million

• Infravision, a provider of drones to upgrade powerlines, raised $23 million

Get access to private deal flow here.

_HEADLINES

Top Reads

• Microsoft CEO testified about competing with Google in antitrust trial (CNBC)

• Americans’ reluctance to quit their jobs in 5 chats (WSJ)

• The SEC had a busy week (BB)

• Chipotle testing automation for burrito bowls and salads (CNBC)

• Tesla launches its cheapest SUV in the U.S. (YF)

• Colleges snap up unused office space in slumping market (NYT)

• Treasury term premium turns positive for first time in two years (Axios)

• How AI could change entrepreneurship (WSJ)

• JPMorgan says the Middle East economy is entering a golden era (BB)

• Why Silicon Valley falls for frauds (Wired)

_{BOOK OF THE DAY}

The Fund

Ray Dalio does not want you to read this book.

Late last year, when the billionaire founder of Bridgewater Associates, the largest hedge fund on the planet, announced that he was stepping down from the company he started out of his apartment nearly 50 years ago, the news made headlines around the world.

Dalio cultivated an aura of international admiration and fame thanks to his company’s eye-popping success, coupled with a mystique he encouraged with frequent media appearances, celebrity hobnobbing, and his bestselling book, Principles.

In The Fund, award-winning New York Times journalist Rob Copeland punctures this carefully-constructed narrative of the benevolent business titan, exposing his much-promoted “principles” as one of the great feats of hubris in modern memory―in practice, they encouraged a toxic culture of paranoia and backstabbing.

The Fund is a page-turning, stranger-than-fiction journey into a rarefied world of wealth and power. It offers an unflinching look at the pain so often caused by the “radical transparency” Dalio has described as a core tenet of his recipe for business success and a meaningful life.

Drawing on hundreds of interviews with those inside and around the firm, Copeland takes readers into the room as former FBI director Jim Comey kisses Dalio's ring, recent Pennsylvania Senate candidate David McCormick drinks the Kool-Aid, and a rotating cast of memorable characters grapple with their personal psychological and moral limits―all under the watchful eye of their charismatic leader.

This is a cautionary tale for anyone convinced that the ability to make lots of money has anything at all to do with unlocking the principles of human nature.

“The unauthorized, unvarnished story of famed Wall Street hedge-fund manager Ray Dalio.”

_{ENLIGHTENMENT}

Short Squeez Picks

• Why goal setting can set you up for failure

• 20 best science books that will make you smarter

• 8 things to do in meetings to prove that you’re a leader

• 5 ways to work remotely effectively

• How to develop a 5-year career plan

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US Job Openings

_{DAILY ACUMEN}

Exercise

The WHO says that a mere 21 minutes a day of moderate-intensity aerobic activity is all adults need to stay in the fitness lane. Who would have thought the key to longevity might just be a brisk walk while deciding what to order for dinner?

Setting realistic goals like ‘strolling’ before ‘sprinting’ can steer you clear from becoming a treadmill dreadmill-er, and onto a path sprinkled with fun and doable exercises. Say hello to activities that spark joy, maybe swap the “dreadmill” for a lively dance or a casual swim.

Because let’s face it, committing to an activity that has you peeking at the clock every two minutes isn’t the zest we’re looking for in our fitness journey! And if motivation plays hard to get, a workout buddy might just make those 21 minutes the highlight of your day.

After all, the journey to fitness could use a good chat, a couple of laughs, and maybe even a post-workout snack shared in good company. In the race towards health, it seems like enjoyment might just be the tortoise that overtakes the hare of intensity!

_{MEME-A-PALOOZA}

Memes of the Day