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Wait, Napster is still around? August 26, 2020 [View Online]( | [Sign Up]( [Daily Brew]( TOGETHER WITH [eToro]( Good morning. We know it’s not “cool” to brag about your younger siblings, but we're super proud of the work being done by [Retail Brew](, [Marketing Brew](, and [Emerging Tech Brew](. Two exciting notes for that last one: - Hayden Field, a superstar tech writer with an excellent high-five, is joining Ryan Duffy and the team at Emerging Tech Brew. Welcome, Hayden! - We just released a comprehensive [AI guide]( with everything you need to know about artificial intelligence. See below for more. MARKETS NASDAQ 11,466.47 + 0.76% S&P 3,443.67 + 0.36% DJIA 28,248.75 - 0.21% GOLD 1,934.40 - 0.25% 10-YR 0.685% + 2.70 bps OIL 43.34 + 1.69% *As of market close - 2020: First lady Melania Trump delivered the [keynote address]( on the second night of the GOP convention, making the case for a second term for her husband. Other speakers included the president’s son Eric Trump, Sen. Rand Paul, and Secretary of State Mike Pompeo—who broke with State Department tradition to speak at a political convention. - Housing: The housing sector is the Devin Booker to the broader economy’s Phoenix Suns. New home sales in July increased 13.9%, [crushing expectations](. Another report yesterday found that U.S. home prices [rose 4.3%]( in June.  RETAIL [Got iPads?]( [Best Buy tablet] Francis Scialabba Yesterday, Best Buy jumped from “I forgot about you” to “pesky mosquito” on Jeff Bezos’s hit list. The electronics retailer [flexed]( some impressive Q2 earnings, including $9.9 billion in revenue, sales increases in nearly every category, and same-store sales growth at a two-year high. Despite a slight dip yesterday, its stock remains near a record. These earnings are worth a closer look, because Best Buy sits smack dab in the middle of some of the biggest economic trends. 1. An ecommerce boom lifted online sales 242% yearly in the U.S. Best Buy is expecting this shift to last beyond the pandemic, which means some changes ahead. - Next month, Best Buy’s [converting]( about a quarter of its stores into shipping hubs to boost delivery speeds. It’ll also add more third-party locations for customer pickups, on top of the 16,000 it currently has. 2. People are working from home, which means sprucing up the home office, upgrading the laptop/tablet, and splurging on an air fryer. Best Buy customers are also shelling out for wellness products like home fitness gear, outdoor and camping equipment, and digital health. 3. Back to school season looks different. With many schools pivoting to hybrid or remote learning, parents turned to Best Buy to get their kids the necessary gadgets. But all that demand has led to an inventory crunch. - Bulk orders from school systems and sanctions on Chinese suppliers have left laptops and tablets [in short supply](. - Last week, Best Buy had 36 Chromebook models costing under $500 listed on its website. 33 were sold out, the AP reports. 4. Consumer spending was propped up in July by stimulus checks and extra unemployment benefits. But after benefits expired, shoppers tightened purse strings, Best Buy said. And consumer confidence just hit its [lowest level]( in six years. Looking ahead...Best Buy is holding off making predictions for the rest of the year and carefully watching negotiations on the Hill for new COVID-19 stimulus measures. It could get some fuel from the upcoming holiday season and fall product launches, including the new iPhone. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Best%20Buy%20Online%20Sales%20Surge%20242%25%20in%20Q2:%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 AVIATION [AA Major Round of Layoffs Ahead]( [American Airlines plane] Sergey Kustov, [American Airlines Boeing 777-200ER Kustov](, [CC BY-SA 3.0]( Yesterday, American Airlines said its headcount will [shrink]( by 30% below March levels by Oct. 1. - That’s 19,000 involuntary cuts and furloughs, including pilots, flight attendants, management staff, mechanics, and others. The backstory: The pandemic has devastated air travel. So as part of the CARES Act Congress passed in March, U.S. airlines nabbed $25 billion to keep workers on the payroll. But that bailout money is running out, and the summer travel bump (as small as it was) is almost over. - The industry hoped for a fresh infusion, but talks for another aid package in Congress have stalled. - And like a “minor delay” on the tarmac, there’s no end in sight for the air travel slowdown. Demand is around 30% of last year, and execs say a full rebound will take years. American’s woes are just one example of the industry's deep rut. Last month, United sent notices to 36,000 employees saying they could be furloughed. Bottom line: This is “the clearest sign yet of the devastation coming for the airline industry," [writes]( the WSJ. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=American%20Airlines%20Will%20Shrink%20Workforce%20by%2030%25:%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 WORKPLACE [Workplace Drug Use Hits a...We’re Not Gonna Say It]( A new report from Quest Diagnostics [showed that]( 4.5% of U.S. workers tested positive for drugs last year. That’s the highest percentage in 16 years, and it represents a 29% increase from 10 years ago. One driver? More marijuana use—the number of workers testing positive for marijuana was up 11% over 2018. That number increased 29% over 2015, the time frame when about a half a dozen additional states legalized marijuana for recreational use. Some employers in those states are slowing their roll on marijuana testing, but not for jobs that involve serious safety hazards. As for 2020...we don’t know just yet, but initial data indicates substance abuse and drug-related deaths are trending up as the pandemic disrupted everyone’s social and professional lives. - A NYT analysis [showed that]( as of July, drug deaths had risen an average of 13% yearly. Some Good News to read to yourself in John Krasinski voice: Positive tests for opiates continued their decline in 2019. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Report%20Shows%20Spike%20in%20U.S.%20Workers%20Testing%20Positive%20for%20Drug%20Use:%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 ETORO [Crypto for the People](#) [eToro]( TBH, crypto hasn’t done itself a favor by having a name like crypto. It sounds like something only people in leather pants and dark sunglasses talk about at bars called JUIC3 or Spider’s Web. But it’s more sci-fi than non-fiction. Especially since [eToro]( has created a crypto trading platform that welcomes any and all—no Morpheus shades necessary. [They’ve created]( quite a few features to help you get comfortable with crypto, like practicing with a virtual portfolio before you spend a dime. You can even copy the moves of successful crypto traders—i.e. you can trade like the best, right from the start. And now when you [sign up for an eToro account]( and purchase $500 worth of crypto, they’ll give you a $50 bonus. We’d like to see the bouncer at Spider’s Web match that. [Learn more about how eToro is making crypto less cryptic here](. PUBLIC HEALTH [Follow the Herd]( [NYPL lion wearing a mask] Jonathan Blanc/New York Public Library Herd immunity: when enough people have developed immune resistance to stop a pathogen from spreading. This can happen by vaccination or old fashioned cough-on-your-desk-buddy infection. Why it matters: Researchers are trying to suss out the [threshold needed]( to stop COVID-19’s spread. Some peg it at 50% of a population or less.  Are we close? Cities with severe outbreaks this spring may have experienced enough community transmission to develop some form of herd immunity. - NYC hasn’t seen a major uptick in infections this summer. - In some urban areas in India, where as many as 60% of residents contracted COVID, new cases have [begun to slow.]( - The city of Manaus experienced one of Brazil’s worst outbreaks, but hospitalizations and deaths have [fallen sharply]( since May. And Manaus never imposed strict lockdowns.  One country took a high-profile gamble on herd immunity. Sweden kept businesses open this spring, and a handful of health experts say the country has [developed]( resistance. Zoom out: Many medical leaders are wary about declaring herd immunity. Subsequent outbreaks could still occur, and immunologists don’t know how long an immune response lasts. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Herd%20Immunity%20Potentially%20Achieved%20in%20Certain%20Locations%20Around%20the%20Globe,%20Say%20Experts:%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 ENTERTAINMENT [Napster Enters Its Third Life]( Get ready to feel old and young at the same time: Napster just [sold for $70 million]( to a virtual reality concert company. MelodyVR allows users to watch concerts in VR; it’s already done events with the likes of Post Malone, John Legend, and Khalid. Now, it wants to add music streaming to its platform. Enter Napster. The brand launched in 1999 as a music-sharing platform...which is a nice way of saying it lets listeners commit music piracy. The company went bankrupt after artists sued, then bounced around various owners until it was acquired by streaming service Rhapsody in 2011. - Five years later, Rhapsody rebranded as Napster and added B2B to its D2C mixtape. Big picture: Napster might have just 1% of Spotify's paying customer base, but it’s still one of the most recognizable names in digital music. Paying for at-home VR concerts might’ve been a tough sell for MelodyVR last year, but in this economy... �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Napster%20Sells%20to%20Music%20VR%20Company%20for%20%2470M:%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 [Us Trying to Sound Smart About AI](#) [Robot GIF] Giphy Artificial intelligence is really complicated—there’s a reason why people who work in the field have an average of 7.5 PhDs.  But AI and related concepts like machine learning are playing an increasingly important role in our lives, shaping everything from the videos on our TikTok feed to the global stock market. To help explain what AI is and why it matters, Emerging Tech Brew put together an [incredible guide]( that’ll answer all your questions, including… - What is an algorithm? - Should we be worried about AI bias? - Is AI a serious threat to human jobs? - Why was WALL·E snubbed of a Best Picture nomination? Bottom line: Get smart on AI and [read the guide](. WHAT ELSE IS BREWING - [Palantir](, the secretive tech firm, revealed registration docs to go public via a direct listing. It lost $580 million in 2019. - [Salesforce]( is ready for its Dow closeup. The enterprise tech company beat earnings and its stock flew 12% after hours. - [Teva Pharmaceutical's]( U.S. business was indicted on price-fixing charges. - [Tim Sweeney](, the fascinating founder and CEO of Epic Games, is profiled by the NYT. - [Laura]( is expected to make landfall near the Louisiana-Texas border late Wednesday/early Thursday as a major hurricane. - [Lionel Messi](, the soccer star with magical feet, reportedly told Barcelona he wants to leave the club. There is contract drama galore. SPONSORED BY CARIUMA [Cariuma]( Your chance to PANTONE the dopest fall sneaks. CARIUMA’s [hot collab with PANTONE]( hath returned. Inspired by Mother Nature’s vibrant palette and ethically crafted to her satisfaction, this line of [comfy kicks]( is sure to sell out quicker than you can say “organic cotton canvas.” We ensured our readers get 15% off Morning Brew's fave foot puppies; [get ’em before they go](. BREW'S BETS How do you measure up? This [fun site]( lets you input measurements to get interesting comparisons. We immediately dialed in our own heights and weights and now know we sit comfortably between a Giant Pacific Octopus and half a reindeer. Mindless fun: Be your company's hero today by sharing this [seriously addicting game]( developed by the good folks at Italian startup [Gamindo](. The Brew almost didn’t get written today because of the high-score chase. For the designers...IKEA just released 70 years-worth of their catalogs in digital format. It's a [feast for your eyes](. FROM THE CREW After the Dow’s [biggest shakeup]( in seven years, we’re now left with these 30 companies in the index: 3M, American Express, Amgen, Apple, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Disney, Dow, Goldman Sachs, Home Depot, Honeywell, IBM, Intel, Johnson & Johnson, JPMorgan, McDonald’s, Merck, Microsoft, Nike, P&G, Salesforce, Travelers, UnitedHealth, Verizon, Visa, Walmart, Walgreens Here’s our question: If you had to bet your entire life savings on one company being in the Dow in 2120 (100 years from now), what would it be? [Join the conversation here](. STAMP TRIVIA [american flag stamp] USPS How much does this stamp cost? SHARE THE BREW When you [share the Brew]( with your network, you earn free swag like our classic Morning Brew t-shirt. Whether you’re rocking it as a weekday undershirt, a weekend statement piece, or you’re just looking to cause a stir at Aunt Margaret’s black tie wedding, our comfy tees will get the job done. [Click here to get free swag.]( Hit the button below to learn more and access your rewards hub. [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=a905682a]( STAMP TRIVIA ANSWER The price of a First-Class Mail Forever stamp is 55 cents. ** A Note From eToro eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. *$50 bonus is limited to the first 1,000 participants.             Written by [Eliza Carter]( and [Alex Hickey]( 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. 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