☕️ Balance of Powell

They're still counting votes in a few states November 06, 2020 [View Online]( | [Sign Up]( [Daily Brew]( [The Motley Fool]( Good morning. This Friday afternoon will be the most Friday afternoon-est of all Friday afternoons.  MARKETS NASDAQ 11,918.79 + 2.83% S&P 3,523.30 + 2.32% DJIA 28,436.81 + 2.12% GOLD 1,950.90 + 2.88% 10-YR 0.778% + 0.90 bps OIL 38.61 - 1.38% *As of market close - Election update: They’re [still counting votes]( in a few states (including Nevada, Pennsylvania, and Georgia), and as of last night the electoral college leader Joe Biden still hasn’t hit the magic 270 number yet. Will today be the day? - More election: In an evening speech, President Trump repeated numerous [unfounded claims]( of voter fraud in an effort to discredit the election process. - Markets: After another day of going up and to the right, U.S. stocks are on pace for their [best week]( since April. ECONOMY [The Balance of Powell]( [A shoulders-up photo of Fed Chair Jerome Powell looking off into the distance] Sarah Silbiger/Getty Images In a week filled with a crush of push notifications and 72pt font headlines, yesterday the Federal Reserve decided no news is the best news. Following its November policy meeting, the central bank [is sticking]( to near-zero interest rates (already the plan through 2023) and [running inflation]( at a 2% average. To kickstart a slowing economic recovery, the Fed will also continue flexing its quantitative easing muscles, buying assets like mortgage-backed securities and U.S. Treasuries to put around $120 billion/month in circulation. - Reminder: The Fed handles monetary policy, manipulating the money supply to shape macroeconomic conditions like inflation and employment. Congress, on the other hand, sets fiscal policy—taxing and spending. Fed Chair Jerome Powell acknowledged the rising wave of Covid-19 cases is "particularly concerning" and the path forward "extraordinarily uncertain." But against the backdrop of an undecided election, the Fed wasn't expected to make big changes.  This election has personal implications for Powell While the Fed's Board of Governors has two open seats that require Senate confirmation to fill, they've been empty for years, and the bigger question is [who takes over as chair]( when Powell's term ends February 2022. The leading pick may be *drumroll please*....Mr. Jerome Powell. The bespectacled banker was appointed to the board by former President Barack Obama in 2012 and made chair by President Trump in 2018. Over the last eight years, he's [built a lot of capital]( on the Hill ;). - Unlike previous chairs, he's held long talks and swapped secret handshakes with lawmakers on both sides of the aisle. That bipartisan goodwill helped Congress entrust the Fed with a prominent role in the CARES Act pandemic response. Powell has also pushed for more transparency with the public, doubling the number of press conferences about monetary policy, setting up a "Fed Listens" series, and leaning more into conversations [about inequality]( in the U.S. economy. Big picture: For investors, the Fed chair can be just as (if not more) important than who sits in the Oval Office. Even after this election ends in 2135, Powell may not be going anywhere. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Fed%20Leaves%20Monetary%20Policy%20Unchanged%20Amid%20Election:%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 EARNINGS [U.S. Consumers in 2020: Hike All Day, Then Order Pizza]( [A GIF of pizza boxes growing larger ] Francis Scialabba Yesterday, two companies’ earnings reports revealed a pair of consumer trends that have endured in a year when nothing's certain. Papa John's The pizza joint [reported]( a fifth straight quarter of same-store sales growth. CEO Rob Lynch added that sales spiked on Tuesday and Wednesday, as everyone gnawed on pepperoni while watching Steve Kornacki defy the limits of human endurance. That's not unusual when an election happens, but this year delivery sales are continuing to soar as the election drags on. Yeti The premium outdoor brand [reported]( revenue up 29% to $295 million and profit up a staggering 126% on increased interest in outdoor activities. - Yeti has a loyal customer base despite selling coolers that cost more than small diamonds. It began in 2006 by targeting hunters and anglers, but has since broadened to anyone who likes their coffee warm and their iced tea chilled. - Its reach has only grown during the pandemic, since outdoor recreation has become the safest recreation. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Winners%20of%202020:%20Yeti,%20Papa%20John's:%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 [Uber, But For a Mediocre Q3]( Yesterday, Uber [posted]( Q3 earnings that gave investors that "sure seems like this guy is taking a pretty roundabout route to the airport" feeling. A Covid-induced plunge in business and consumer travel has hit Uber's core ride-hailing business hard. - Gross bookings were down 53% year-over-year...which was actually an improvement over Q2 when they dropped 75% yearly. Total revenue fell 18% to $3.1 billion. Zoom out: Despite these numbers, this is a good week for Uber. On Tuesday, California voters [approved]( Prop 22, a ballot measure which challenged a state law that undermined the foundational business models of Uber and other gig economy companies—the classification of drivers as independent contractors, not employees. Uber shares popped 15% Wednesday on news of the victory. Speaking of gig economy companies...the Prop 22 win gave DoorDash and Instacart a boost as they both eye IPOs later this year. EB Exchange Funds Managing Partner Larry Albukerk [told CNBC]( he's seen serious demand for both companies in the private markets, though Uber's and Lyft's stock charts since going public in 2019 don't inspire much confidence. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Uber%20Reports%20Disappointing%20Q3%20Numbers:%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 THE MOTLEY FOOL [Tiny Companay, Big Monay, Whatcha Say?](#) [The Motley Fool]( In 27 years, Motley Fool’s founders have given the “all in” buy sign 27 times. And they just gave it to [this tiny internet company](. For some context on the Fool’s money monay recs: The average return of stocks slapped with the “all in” buy sign is 1,352%. That is—and this is a scientific term—soooooooo many percentages. In fact, that number crushes the average return of the S&P 500 by 12x. We’re not going to waste any more of your time; there’s money on the line. Join Motley Fool Stock Advisor and [see which company you should probably buy right now](. MEDIA [Layoffs Hit Bristol]( [BRISTOL, CT - NOVEMBER 15: Kevin Negandhi prepares to anchor SportsCente...] The Washington Post/Getty Images ESPN is [laying off]( 300 employees and letting 200 open positions go unfilled, chairman Jimmy Pitaro said yesterday. That's equivalent to roughly 10% of the network's workforce. What happened? The pandemic caused a "tremendous disruption in how fans consume sports," said Pitaro, which is to say we do it at our homes, by ourselves, and less often than before.   - ESPN is paying more than $7 billion for the rights to air live sports in 2020, the NYT writes. But due to the Covid-19 outbreak, it basically had no games to broadcast for four months of the year. - And when live sports did return in the summer, TV ratings [didn't return]( with them. Broken record alert: The pandemic accelerated pre-existing trends for many businesses, ESPN included. Because of the pickup in cord cutting, the Disney-owned network was already reorienting itself around direct-to-consumer offerings, such as the streaming service ESPN+. These layoffs reflect the ongoing shuffling of resources. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=ESPN%20Lays%20Off%20300%20After%20Taking%20a%20Pandemic%20Licking:%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 QUIZ [Key Quiz Alert](#) [Weekly news quiz] Francis Scialabba The feeling of getting a 5/5 on the Brew's Weekly News Quiz has been compared to correctly pronouncing Chopin in front of all your friends. It's that satisfying. [Ace the quiz](. WHAT ELSE IS BREWING - [New Covid-19 cases]( are at their highest levels in the U.S. and yesterday surpassed 114,000. - [Facebook]( removed a pro-Trump group that called for "boots on the ground." - [The DOJ]( sued to block Visa's $5.3 billion acquisition of fintech company Plaid. - [GM]( reported a big earnings beat thanks to its popular trucks and SUVs. Still, it was surpassed in market cap by Chinese electric vehicle maker Nio. - [Bitcoin]( has once again entered the chat, pushing past $15,000 to its highest level since January 2018. Also yesterday, U.S. officials said they seized [$1 billion worth]( of bitcoin that was linked to the dormant darknet marketplace Silk Road. - [Vimeo](, the IAC-owned video platform, is now worth $2.8 billion after raising $150 million. SPONSORED BY THE MOTLEY FOOL [The Motley Fool]( Fool you once, shame on us. But if you pass up on these [Motley Fool stock picks]( twice in the same newsletter, shame on you. Here we have five affordable stock picks, each under $49. All you need to do to see them is [sign up for Motley Fool Stock Advisor](. BREW'S BETS Can’t get enough of the election? Check out this [visual analysis]( of voters in battleground states. Admittedly very random: but pretty good at the same time. [Mongolian heavy metal](. Follow Friday: For cinema TikTok, watch [Baron Ryan](, [lastmanstanley](, [logan_allison’s]( Twilight parodies, [Stanzi’s]( take on horror films, and [Angel Tavera’s]( “Guess the Movie” series. FROM THE CREW [Work in Retail? Stop Scrolling.](#) [Black friday image] Francis Scialabba If you work in retail or have a mild-obsession with DTC trends, make sure you read Retail Brew, where our very own Halie LeSavage breaks down all the news and insights retail pros need to know 3x/week. A few recent stories to give you a taste: - What [Crocs can teach retailers]( about adapting to consumer demand - How to build a referral program [people will actually use](, according to DTC experts - Why TikTok's recent [partnership with Shopify]( matters to retailers Sign up for Retail Brew [here](. GAMES [Friday Puzzle](#) It's been a while since we went straight-up logic puzzle, so here it goes: A girl meets a lion and unicorn in the forest. The lion lies every Monday, Tuesday, and Wednesday, and the other days he speaks the truth. The unicorn lies on Thursdays, Fridays, and Saturdays, and the other days of the week he speaks the truth. “Yesterday I was lying,” the lion told the girl. “So was I,” said the unicorn. What day is it? SHARE THE BREW When you share the Brew, you earn rewards. From Brew swag like t-shirts and coffee mugs to exclusive content, we've got something for everyone in our premier rewards program. [Click here to get free swag.]( 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=a905682a]( ANSWER Thursday             Written by [Eliza Carter](, [Alex Hickey](, and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. 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