🍋 Slow Start for Faster Internet
Good Morning! Hope you had a great weekend. Markets are all out of whack, with equity bears getting killed and bonds beaten down by inflation bouncing back. In the last month, the S&P 500 and Nasdaq are up 13% and 24% respectively. That's the broad strokes, but down in the weeds, Peloton stock went up over 13% Friday after the company announced it would lay off more people and take "aggressive" cost-cutting measures. Also up is retail, as consumers continue to spend on makeup/cosmetics, despite a tough economy. Experts say it's because these items are affordable splurges, I say it's because you can't throw a filter on when you're back in the office.
If you are looking to learn how to trade options check out Benzinga.
1. Story of the Day: Slow Start for Faster Internet
The folks over in Washington have a great plan to get internet service into underserved communities. The $42.5 billion broadband plan is part of the $1 trillion infrastructure Bill signed by President Biden last November. Unfortunately, it's still loading, as authorities don't know where to build the infrastructure.
The bill states that money can't be distributed to help homes and businesses in need of better internet until the Federal Communications Commission completes new maps highlighting the new locations. This is because flawed data in previous subsidy programs ended up with construction projects bypassing the people they were supposed to help.
On top of not having the data handy, getting accurate, new data, will take some time. "We understand the urgency of getting broadband out there to everyone quickly. We also know that we get one shot at this and we want to make sure we do it right." said Alan Davidson, Chief of the Department of Commerce office leading the efforts.
The trickle down effect of this means that internet providers like AT&T, Comcast, and Verizon, haven't included the infrastructure bill's funding in projections for the coming years. AT&T Chief John Stankey said, "The maps are not going to be issued from the FCC until a little bit later this year, and until that happens, the money really can't start to flow at the state level."
Short Squeez Takeaway: Nothing like missing deliverables from your boss to get you behind on the work you're supposed to turn around ASAP. The real people being affected, the ones the government is trying to help, just have to sit and twiddle there thumbs with slow Wifi in an increasingly digital world until things get sorted out.
2. Markets Rundown
Thanks to the lower CPI and PPI numbers last week, stocks were up, and crypto was relatively flat.
Movers & Shakers
- (+) Toast ($TOST) +8% because the company raised its earnings outlook for the year.
- (+) Teladoc Health ($TDOC) +6% because DA Davidson initiated coverage on the company with a buy rating.
- (–) Poshmark ($POSH) -8% because of weaker than expected revenue guidance for the current quarter.
- Orange EV, a manufacturer of heavy-duty electric trucks, raised $35 million
- Properly, a tech-enabled real estate brokerage, raised $36 million
- Carlyle to commit up to $1 billion for infrastructure projects
- Schmooze, a meme-based dating app, raised $3.2 million
- Interaxon, a manufacturer of high-tech meditation headphones, raised $9.5 million
- Farther, a New-York based wealth management platform, raised $15 million
3. Top Reads
- The numbers behind the ‘Great Resignation’ (Axios)
- Fed’s Barkin says rate increases need to continue until inflation holds at 2% (CNBC)
- Wall Street rally brings out bulls, who some fear may be ‘suckers’ (Axios)
- Crying CEO selfie goes viral on LinkedIn, sparks debate on messaging (Axios)
- Number of American workers keeps shrinking as businesses struggle (Fox)
- How Carlyle CEO’s turnaround of the private equity firm was cut short (Reuters)
- Homebuying competition falls to lowest level in 2 years (Fox)
- Why Jim Cramer says peaking inflation is a ‘nirvana for stocks’ (CNBC)
- Finance industry urged to hire more working class managers (Reuters)
A Message from Benzinga
If you’ve been looking at the market for the last few months, you might be thinking “This is a terrible time to trade and invest and I’m going to wait for the crash.”
“Fortunes are made in bear markets."
Smart investors find opportunities to profit in any market condition and the current conditions arguably make it easier to find opportunities than before.
No better way to get better at investing than learning all about options.
Full-time trader Nic Chahine has been helping new traders to find these opportunities with Benzinga Options. Nic climbed the ranks of the corporate finance world, and in 2000, branched out with an internet venture as CFO/COO. Since then he has started his own fund to pursue his passion for the stock market.
4. Book of the Day: Extraordinary Women in History
Compiling the incredible real-life stories of 70 remarkable women throughout history, these short stories seek to inspire and empower women of all backgrounds to dream big and break barriers by sharing the amazing achievements of truly unstoppable female heroes.
From female daredevils and pioneering innovators to radical reformers, dedicated activists, leaders, wordsmiths, artists, veterans and more, inside you’ll discover the lives and legacies of these once-in-a-lifetime trailblazers.
Paying homage to some of the greatest women the world has ever seen, Extraordinary Women in History is a testament to the power of dedication, courage, tenacity, and never giving up. Their stories will encourage you to take action and prove that barriers only exist to be broken.
Here are just a few of the extraordinary women you’ll find inside:
Junko Tabei, the first female to reach the summit of Mount Everest
Lily Parr, the unstoppable English star of women’s football
Mary Eliza Mahoney, the first licensed African American Nurse
Marie Curie, the pioneer of Radioactivity
Harriet Tubman, an incredible icon for anti-slavery
Empress Suiko, the first female regnant in Japan’s recorded history
Hattie McDaniel, the first African American to win an Oscar
Irena Sendler, who rescued 2,500 Jewish children in World War II
Gudrid Thorbjarnardóttir, the most travelled woman of the Middle Ages
And so many more...
Perfect for history fans, educators, as an inspiration for young girls, or for anyone interested in discovering the legacies of these remarkable women, Extraordinary Women in History will open your eyes to the profound contributions that these female role models have made.
“You are never too old, too small, or too late to live the life you’re meant to lead. Especially if it means rewriting the rules to do it.”
5. Short Squeez Picks
- Bright Cellars is the monthly wine club that matches you with wine that you'll love, based on an algorithm that selects wines based on your taste preferences. Get 50% off the first 6 bottle order!
- The terrible, common habit Elon Musk is kicking from his morning routine
- Don’t focus on your job at the expense of your career
- Should you cut toxic people out of your life?
- The shift from charity to philanthropy
6. Daily Visual: Percentage of Workers Who Say It's a Good Time to Find a Job in Their Area
Surveys of adult workers in 160+ countries
7. Daily Acumen: Rule of 72
“The Rule of 72 is an easy, quick calculation you can use to figure out the number of years your investment will take to double with a set annual rate of return.
It can also be used to determine how much you’ll have to pay in certain fees that banks or funds may charge you to keep your money or give you a credit card, or even to determine just how long it will take a currency’s value to be cut in half due to inflation.
The equation for the Rule of 72 looks like this:
72 / Your annual rate of return = Years it will take your money to double
Let’s say your money is in a standard savings account, earning around 1% interest yearly (which is generous—actual savings accounts typically offer much less). Plug in your number and you’ve got:
72 / 1 = 72 years
Dividing 72 by 1, it will take 72 years for that money to double.
If you’ve invested in the stock market, let’s say your rate of return rate is around 10% (in real life, the average over decades has been a bit less). Plug in your number and you’ll get:
72 / 10 = 7.2
Dividing 72 by 10, it will take a little over 7 years for your money to double.”
8. Crypto Corner by Bonkalytics.com
- Dutch detain suspected developer of crypto mixer Tornado Cash
- Why Twitter anons are sending crypto to celebrities
- Study reveals the most ‘crypto curious’ country in the world
- Public pension systems join those stung by crypto crash
- Crypto Reddit mobilizes after pummeled by bankruptcies
- Why this crypto crash is a wake-up call
For more crypto-focused content, sign-up here.
9. Memes of the Day
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