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The Brew busts a myth about homebuying during the pandemic... August 15, 2020 [View Online]( | [Sign Up]( [Daily Brew]( TOGETHER WITH [Vincero]( Good morning. If we've learned anything from the NBA bubble, it's live every day like you're Damian Lillard or the Suns' social media manager. MARKETS NASDAQ 11,019.30 - 0.21% S&P 3,372.89 - 0.02% DJIA 27,931.50 + 0.12% GOLD 1,951.40 - 0.96% 10-YR 0.712% - 1.10 bps OIL 42.15 - 0.21% *As of market close - Markets: We thought this would be the week the S&P finally closed above its record, but it stopped [just short]( of the summit. We’ll try another ascent on Monday. - Economy: Not a stat you hear often, but U.S. productivity [grew 7.3%]( last quarter. That came while the number of hours worked fell 43%, the biggest decline ever. REAL ESTATE [Brew Mythbusters: Real Estate Edition]( [Simpsons clip showing moving houses] Giphy One of the enduring narratives of the pandemic is that Americans are ditching cities and embracing the suburbs. But a [new study]( from Zillow claims we might be driving up the wrong cul de sac. The real estate company found that generally speaking, suburban housing markets have not strengthened relative to urban markets during the pandemic. - “Both region types appear to be hot sellers’ markets right now—while many suburban areas have seen strong improvement in housing activity in recent months, so, too, have many urban areas,” Zillow says. - While for-sale suburban homes attract more than 3x the traffic on Zillow right now than urban listings, that’s no different than last year. The outliers New York City and San Francisco. These hubs of innovation and $14 Bud Lights may actually be facing a significant housing downturn. - Per [StreetEasy](, Manhattan home values dropped 4.2% since last year and homes are staying on the market over two months longer. - San Francisco list prices are also down 4.9% annually, while inventory is up 96%. Why those two? NYC and San Francisco were the most expensive housing markets in the country before the pandemic. Life under lockdown may have given people the nudge they’d been considering for years. And where are they going? “Basically point a finger on a map, people are moving there...they’re going back to their roots,” one moving company exec [told the NYT](. Big picture Summer is typically the busiest time to move, but this year has been especially crazy for the residential real estate industry. When it’s not penning reports, Zillow’s day job is to run an online real estate marketplace, and it’s going really well—on Thursday, Zillow recorded its [highest]( daily active user count ever, per Apptopia. Looking ahead...the Brew is proud to announce our Broadway Gauge, the best economic proxy this side of the Waffle House Index. It posits this—when Broadway returns, so will New York home values. Do you agree? �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Zillow%20Report%20Finds%20Suburban%20Housing%20Markets%20Not%20Growing%20at%20the%20Expense%20of%20Cities:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 RETAIL [For Retail Sales, Follow the Stimulus]( [Full shopping cart ] Francis Scialabba At least one part of this economic recovery is V-shaped. Retail spending [climbed]( 1.2% in July, marking its third consecutive monthly increase and bringing the total value of U.S. retail sales above pre-pandemic levels. Breaking it down: Though the jump is weaker than expected, [nine of the 13]( major spending categories did report higher sales last month. Breaking it down even more: - Electronics and appliance stores led all retail categories with a 22.9% jump. - Spending at bars and restaurants increased just 5%. Many analysts think they'll take years to recover. - Auto industry sales were a damper, sliding 1.2%. Zoom out: This rebound is encouraging but precarious. Economists say a huge reason retail sales grew for three straight months is that, despite historic unemployment, aggregate household income increased since March thanks to the federal stimulus under the CARES Act. But those extra unemployment benefits stopped flowing on July 31, and the Senate is out of D.C. until after Labor Day after failing to agree on a new stimulus bill. Last week, President Trump signed an executive order authorizing up to $400 per week in additional benefits, but it's not clear when/if the extra cash will hit bank accounts. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=U.S.%20Retail%20Sales%20Continue%20Their%20Winning%20Streak:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 TECH [It’s Apple Vs. the Apps]( [Demonic apple melting ] Giphy On Thursday, Fortnite developer Epic Games went toe-to-toe with Apple and emerged with more than one [pump-up video]( to show for it. Other developers of apps that dot your phone's home screen have [joined the crusade]( against Apple and its alleged monopolistic tactics. Who’s standing in solidarity - Facebook: After a limited rollout of a paid online events feature, head of the Facebook app Fidji Simo [railed against]( the “30% App Store tax.” In a blog post yesterday, he wrote that small and medium-sized businesses "will only be paid 70% of their hard-earned revenue” after Apple takes its cut. - Match Group: A spokesperson for the dating app giant said, “We fully support Epic Games’ efforts” and promised to fight “Apple’s arbitrary practices.” - Spotify: What’s a revolution without any music? A company spokesperson [said]( “we applaud Epic Games’ decision to take a stand against Apple.” Spotify has been fighting its own war with Apple for years. Bottom line: Despite the ideological posturing, keep in mind that all these companies would stand to financially benefit should Apple remove (or be forced to remove) its 30% fee for in-app purchases. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=More%20Apps,%20Including%20Facebook,%20Rally%20Against%20Apple:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 SPONSORED BY VINCERO [Turn Heads, Start Convos](#) [Vincero]( Lately, days have felt like weeks. Weeks like months. Could our freshman roommate be right? Is time fake? While your head spins, allow us to suggest how you can turn other people’s: [with a Vincero watch](. Vincero watches are an affordable—yet bold—statement. They complement every vibe, and after you start wearing ’em on the daily, you’ll receive compliments on the daily, too. In fact, you’ll be so busy [getting noticed]( that you’ll stop noticing how slow time is moving. You know what they say: Time flies when you’re being complimented. Speaking of time, Vincero’s been around for six years—that’s six spins around the sun, supposedly—and they’re celebrating with the biggest sale in company history. That means their already affordable timepieces just hit [new levels of affordability](. For a limited “time,” [take up to 30% off Vincero’s store, plus free shipping](. GAMBLING [The IRS Kicks Sports Betting While It’s Down]( [Roulette wheel] Francis Scialabba Yesterday, the IRS decided that daily fantasy sports companies, like DraftKings and FanDuel, are required to pay a [federal excise tax]( on the entry fees they collect from their users. The IRS’s decision (while not binding in court) represents a “potentially business-destroying” development for these firms in some jurisdictions, gaming attorney Kate C. Lowenhar-Fisher told Bloomberg. DraftKings stock fell 6% on the day. The company has non-tax issues, too DraftKings yesterday posted a [larger loss than expected]( last quarter as the sports betting world was blindsided by the global sports shutdown. Toss in the recent college football [cancellations](, and the industry is desperately looking for its Michael Oher. - It might have found one. As more professional leagues have resumed play, DraftKings said it observed an uptick in sports betting and ended last quarter with over $1.2 billion in cash—and no debt. Bottom line: Goldman Sachs [slapping a “buy” rating]( on Barstool Sports owner Penn National Gaming on Thursday shows that analysts expect a strong return to sweating 16-team parlays. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=IRS%20Memo%20Shows%20Plans%20to%20Change%20the%20Way%20Daily%20Fantasy%20Sports%20Betting%20Sites%20Are%20Taxed:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 COMMUNITY [Movie Headline Contest Winners](#) [NEW YORK, NEW YORK - JULY 31: People wear protective face masks outside ...] Noam Galai/Getty Images Reader participation week has drawn to a close, but we think we've saved the best for last: our headline contest winners. The task: Yesterday, we asked you to write a Brew-style headline for a news story around AMC's reopening on Aug. 20. On the first day, movies will cost just 15 cents in a promotion called "Movies in 2020 at 1920 Prices." Our favorites "Pass the Popcorn, Old Sport"—Elizabeth in Nashville, TN "Finally, a Movie That Makes Cents"—B. Davies in Michigan "COVID Movies at Spanish Flu Prices"—Ray in Brooklyn "Moving Pictures Finally Moving Again"—Lee Grinnan "AMC Goes Back to the Future"—Literally everyone else WHAT ELSE IS BREWING - [Pinterest]( employees walked out yesterday in response to recent allegations of gender and racial discrimination at the company. - [Spain]( is shutting down nightclubs and banning smoking in some public spaces as COVID-19 cases rise. - [New York City]( museums can open Aug. 24, and bowling alleys can open on Monday. - [Michigan]( and startup Cavenue are planning to build a self-driving vehicle corridor between Detroit and Ann Arbor. - [What's happening in Belarus](. BREW'S BETS Time to set your text tone to Jingle Bells. [Attentive]( is the text message marketing platform helping marketers plan for a massive holiday shopping season that’s shifting to mobile. Access their Holiday Hub and [unwrap your SMS strategy today](.* Pie in the sky rakes in serious dough. Piestro’s [robotic pizza shop]( is disrupting the $52 billion pizza industry. In just three minutes, these ’bots whip up artisanal pies—with better ingredients and for lower prices. There’s less than 30 days left to get a slice of this action: [Invest today](.* Emotional read: Ruby Angela Saleh wrote an essay about her little brother, Fahim, the tech entrepreneur who was murdered last month. [Read her story here](. Saturday conversation starters: - Imagine a bartender handing you an [electric blue drink](. What’s it called? - What’s the most benign but memorable thing your parents fibbed to you about? We’ll go first: All of bread’s nutrients are in the crust. - What food/movie/TV show do you hate that everyone else loves? *This is sponsored advertising content SATURDAY HEADLINES While not many Brew readers have been to the aquarium in the last few months, that doesn't mean there isn’t some weird stuff going down in the tanks. Three of these aquatic-themed headlines are realer than a shark attack, while one isn’t true. Can you find the fake? - "Lonely Chinese eels [want companionship](: 'They miss the kids the most'" - "Aquarium is [washing old wishes]( to pay bills during pandemic" - "The St. Louis Aquarium will let you [walk over its shark tank]( on a rope bridge" - "Aquarium of Niagara [throws penguin]( gender reveal" SHARE THE BREW It only takes 3 referrals to earn access to Light Roast, our exclusive Sunday newsletter. It’s the soothing, weighted blanket of newsletters that’ll fight off your scaries and prepare you for the week ahead. [Click here to get free swag.]( When you [share your referral link]( and new readers sign up, you earn rewards. Hit the button below to start sharing the Brew. [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( SATURDAY HEADLINES ANSWER The idea of eels being lonely is kinda sad, right? Poor fictitious lonely eels.              Written by [Toby Howell](, [Amanda Yao](, and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW?  Retail newsletter → [Retail Brew](  Tech newsletter → [Emerging Tech Brew](  Marketing newsletter → [Marketing Brew](  Quarantine newsletter → [The Essentials](  Business podcast → [Business Casual]( [ADVERTISE]( // [CAREERS]( // [SHOP]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright ©2020 Morning Brew. All rights reserved. 40 Exchange Pl., Suite #300, New York, NY 10005