☕️ Waiting in space

Elon Musk is having a busy week... August 08, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Grayscale Investments]( Good morning. Today is International Cat Day, the one day of the year it’s socially acceptable to turn anything into a bed, break an expensive object, and hiss at the people you love. —Matty Merritt, Cassandra Cassidy, Molly Liebergall, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 16,195.81 -1.05% S&P 5,199.50 -0.77% Dow 38,763.45 -0.60% 10-Year 3.968% +8.0 bps Bitcoin $55,300.86 -2.02% Airbnb $113.01 -13.38% Data is provided by *Stock data as of market close, cryptocurrency data as of 6:00pm ET. [Here's what these numbers mean.]( - Markets: Stocks weren’t ready to call it a comeback yet. Early in the day, it looked like Tuesday’s recovery from Monday’s big fall could keep on rolling, but stocks [dipped]( by the time the bell rang. Tech companies, including Nvidia, fell. And Airbnb plunged like the rating of a property with a five-page, single-spaced cleaning checklist after reporting less demand from US travelers.  ECONOMY [What’s going on with US consumers?]( [Consumer looking at reduced section in grocery store.]( Images Welcome to understanding the American consumer, where everything feels made up and the analysts’ interpretations don’t matter. A spate of recent disappointing earnings reports from fast-food chains hints that consumers are stretched way too thin. But companies like Shopify and Carnival are touting stellar Q2s and painting a very different picture. So, what’s the state of everyone’s wallets? Well—and you’re going to hate this—it’s complicated. One thing to keep in mind is that, overall, the US economy grew more than expected last quarter, jumping 2.8% and cementing two years of growth, with strong consumer spending helping it get there. How people spent their money tells a story Chicken nuggets don’t feel worth it: - McDonald’s reported its [worst sales]( since the start of the pandemic, blaming its price increases. - Yum Brands [said]( KFC and Pizza Hut also saw same-store sales drop last quarter, while sales at Taco Bell (the fast-food chain that pops into your head when you think “value”) increased. - Chipotle sales grew 18% from April to June, demonstrating that it’s not about the lowest price point, it’s about the most bang for your buck. People are still shopping. Amazon, Etsy, and Wayfair have all blamed everything from the Olympics to picky customers to explain why shopping on their sites has slowed down. But people are still shopping somewhere because Shopify, which powers much of e-commerce, [beat]( Wall Street expectations last quarter. Execs chalked it up to a more diverse set of businesses on its platform despite “a mixed consumer spend environment.” Big picture: Despite a flop of a July [jobs report]( last week and a scary reaction from the stock market, most economists agree that we aren’t on the verge of a recession and signs are more than likely pointing to normalization after a tumultuous pandemic recovery.—MM PRESENTED BY GRAYSCALE INVESTMENTS [Introducing ticker: BTC]( [Grayscale Investments]( BTC is not suitable for all investors. An investment in BTC is subject to a high degree of risk, has the potential for significant volatility, and could result in significant or complete loss of investment. BTC is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”). As a result, shareholders of BTC do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act. [BTC]( is the low-cost* Bitcoin fund from Grayscale, the brand name in crypto investing. Today, BTC is one of the most affordable ways to gain exposure to Bitcoin directly in your brokerage or retirement account, as you would invest in any other stocks or bonds. Search for it on your trading platform of choice, or visit [etfs.grayscale.com/btc]( to learn more. [Grayscale]( has been offering exposure to crypto through investment funds for over a decade. Today, they offer a suite of over a dozen different funds covering Solana, Filecoin, Chainlink, and others for investors to choose from. Grayscale. Crypto investing begins here. WORLD [Tour de headlines](#) [Taylor Swift performing at the Eras Tour]Buda Mendes/Tas23/Getty Images Taylor Swift concerts canceled over terror threat. Organizers [called off]( three Eras Tour concerts scheduled to take place in Vienna this week, saying the Austrian government had confirmed a planned terrorist attack on the stadium. Authorities said they had arrested two extremists, including a 19-year-old Islamic State sympathizer believed to be planning a potential attack on the concerts. The concerts were sold out and 170,000 fans were expected to attend. All tickets will be automatically refunded, the organizer said. Disney finally makes money from streaming. The company’s streaming business, which includes Disney+, Hulu, and ESPN+, [turned a profit]( for the first time—a quarter sooner than it planned, Disney said yesterday while reporting its quarterly earnings. “We were losing $1 billion a quarter not that long ago,” Disney’s CFO reminded analysts. Movies were also a bright spot, largely thanks to the success of Inside Out 2. But all was not entirely well within Disney’s kingdom as revenues from theme parks—an area the company had been relying on to pick up the slack from others and pouring resources into—came in weaker than expected as demand decreased. Mortgage rates are coming down. In a sign that people may be able to start buying houses even if they eat avocado toast, the rate on the 30-year-fixed [mortgage]( fell to 6.55% last week, new Mortgage Bankers Association data shows. That marked the biggest weekly decline in two years and put the rate at its lowest since May 2023. In response, refinancing applications jumped 16%, and mortgage applications ticked up by 0.8%. Mortgage rates are likely to fall even further since everyone expects the Federal Reserve to cut interest rates in September. But the housing market might stay tight because many people who own homes are sitting on much lower rates and might not want to sell. TECH The week Elon Musk declared war Photo of Elon MuskApu Gomes/Getty Images Elon Musk is dealing with controversies on many fronts after a busy week in which he has traded barbs with newly elected British Prime Minister Keir Starmer amidst violent protests across the UK, brought a lawsuit against advertisers, and revived a case against OpenAI. And it’s not even Friday. In the UK…Musk has drawn condemnation from British politicians after boosting incendiary comments on his platform, X, following a stabbing attack that killed three girls in England last week. - Misinformation [spread]( across X, including claims that the perpetrator was both Muslim and an asylum-seeker. In response to a post that blamed immigration for the violence—something the PM’s office has refuted—Musk [posted]( “Civil war is inevitable.” In another post, Musk directly called out [Starmer](. - Some British politicians have [indicated]( they want Musk to answer questions about X’s role in the violence (which seemed to be [abating]( yesterday). The UK’s tech minister said Musk is “the one person who is accountable to no one.” Meanwhile…X sued a major advertiser group on Tuesday (Musk [declared]( it “war”), [alleging]( an illegal advertiser boycott that deprived the company of billions of dollars in revenue. And Musk personally [sued]( OpenAI and Sam Altman, claiming that they abandoned the company’s pledge to prioritize public interest over profit. Next week…Musk is set to [interview]( Donald Trump on Monday night.—CC TOGETHER WITH THE CREW [The Crew]( This rare, limited-time travel credit card offer is turning heads. If you’ve been on the fence about getting a travel card—and you want to make this the best summer yet—[this just might be the perfect card for you](. Earn a rare welcome bonus to use toward travel with this incredible card. [Take advantage]( while you can because it might be gone soon! SPACE Waiting for the spaceship to come pick you up like [Butch Wilmore and Suni Williams]( Markowitz Amid disagreements between NASA and Boeing, two astronauts who have missed brat summer thanks to spacecraft troubles could end up staying at the International Space Station until next year, NASA officials said at a press conference yesterday. It was supposed to be an eight-day mission. But NASA veterans Butch Wilmore and Suni Williams have [been]( at the International Space Station (ISS) since June 6, when they arrived via Boeing’s Starliner on its [first crewed voyage](. They docked at the ISS successfully but noticed several thruster glitches and helium leaks, which Boeing and NASA officials have been working to resolve. But the two organizations are not on the same page about Starliner’s flight-readiness, the Wall Street Journal [reported]( - Boeing says recent test data shows that the problems are under control and its craft is ready to complete the return mission. - NASA [noted]( some promising tests but has concerns about other results. The space agency is internally divided over whether Starliner is safe enough to carry Wilmore and Williams home. SpaceX may swoop in. NASA has an upcoming ISS-bound mission carried by SpaceX’s Crew Dragon that it could likely send with just two astronauts in the four-seater so that Wilmore and Williams can hop in for the return flight…in February. Starliner would fly home empty in that situation, possibly jeopardizing its certification for routine journeys. NASA apparently hasn’t decided yet, and bought some time this week by delaying the SpaceX launch from mid-August to the end of September.—ML STAT [Prime Number: 0 stock holdings](#) [Minnesota Governor Tim Walz]Stephen Maturen/Getty Images Tim Walz’s selection as Kamala Harris’s running mate may have been a [victory]( for Nancy Pelosi, but there’s one key area where the Minnesota governor and the former House speaker differ wildly—their portfolios. Financial disclosures show Walz doesn’t own [any stock]( (and neither does his wife), according to Axios. He’s also got no other securities, mutual funds, bonds, private equities, or crypto holdings. The couple seems to be invested only in state pensions, including teacher pensions. It’s a surprisingly relatable move for a politician: 49% of American households don’t hold any stock, according to a 2023 Gallup poll. And though participation in the stock market has been on the rise recently, it’s still mostly people who don’t care that guac costs extra buying in. Federal Reserve data shows that the richest 10% of Americans held 93% of stocks last year. NEWS [What else is brewing](#) - [One year]( after a devastating wildfire tore through Lahaina on Maui, the 151-year-old banyan tree damaged in the blaze is thriving. - [Wegovy]( sales were weaker than Novo Nordisk expected them to be last quarter, leading the maker of blockbuster weight loss drugs to slim down its profit outlook, which sent its stock plummeting. - [Warner Bros. Discovery]( posted a $9.1 billion loss in Q2 tied to the declining value of its linear TV networks. - [Lyft’s CEO]( promised to “open up a can of whoop ass” on surge pricing, introducing a new feature that lets riders pay for a subscription to lock in ride prices for routes at specific times. - [Track and field]( was the thing to watch at the Olympics yesterday as American Quincy Hall pulled off a comeback to clinch the 400m gold. RECS [To do list Thursday] Stare into the emptiness: A photographer snaps [abandoned buildings](. Speak now: [Alternatives]( to corporate jargon. Go camping: Learn [how to use]( the government’s new tool to get alerts on available bookings for campgrounds, tours, and ticketed entry to national parks and forests. Price it out: See [how much]( the mountain bikes used to compete in the Olympics cost. Last chance to register: If you haven’t mastered AI yet, [join our free webinar with Section]( to get started. We’ll cover prompting, AI use cases, productivity hacks, and more. No crying at work: Nearly a quarter of employees (23%) [admit they’ve cried]( within their first week on the job. Help your new hires avoid the waterworks with BambooHR’s free, customizable [onboarding roadmap]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: Close your eyes and [plunge into today’s Mini](. Three Headlines and a Lie Three of these headlines are real and one is faker than a “no-spend day.” Can you spot the odd one out? - Rob Lowe is having a ‘[Brat Summer]( - Has Botox [killed]( eroticism? - French pole vaulter in viral video [offered]( porn deal after medal fail, report says - How a YouTuber [offered]( to write a new national anthem and ended up in jail SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=a905682a]( ANSWER We made up the one about the incarcerated YouTuber. Word of the Day Today’s Word of the Day is: incendiary, meaning “tending to excite or inflame.” Thanks to Sunny from Rochester, MN, for setting our inbox ablaze with the suggestion. Submit another [Word of the Day here](. ✢ A Note From Grayscale Investments *Low cost based on gross expense ratio at .15%. Brokerage fees and other expenses may still apply. Please read the [prospectus]( carefully before investing in the Trust. Foreside Fund Services, LLC is the Marketing Agent for the Trust. Investing involves significant risk, including possible loss of principal. The Trust holds Bitcoin; however, an investment in the Trust is not a direct investment in Bitcoin. As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of industries. Extreme volatility, regulatory changes, and exposure to digital asset exchanges may impact the value of Bitcoin and, consequently, the value of the Trust. Digital assets are not suitable for an investor that cannot afford loss of the entire investment. There is no guarantee that a market for the shares will be available, which will adversely impact the liquidity of the Trust. The value of the Trust relates directly to the value of the underlying digital asset, the value of which may be highly volatile and subject to fluctuations due to a number of factors. There is no certainty that an active trading market for shares will develop or be maintained which will adversely affect the liquidity of shares of the Trust. Written by [Neal Freyman]( [Abigail Rubenstein]( [Matty Merritt]( [Cassandra Cassidy]( and [Molly Liebergall]( Was this email forwarded to you? Sign up [here](. [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2024 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011