💊 Healthcare price spikes

…and Target’s discretionary earnings Joe Buglewicz/Getty Images Premium anxiety   Presented by Hey Snackers, Volkswagen debuted an all-electric update of its iconic [hippie van](. But with just 234 miles of range, it’s not exactly cut out for #VanLife. Burners headed from San Francisco to Black Rock City this weekend would need to find a charging oasis mid-desert. Stocks rose yesterday as July’s Fed meeting minutes boosted rate-cut hopes. Also juicing bets on a [September slash](: a massive [downward revision]( in payroll growth. The Labor Department said the US had created 818K fewer jobs than originally reported in the year through March.   HIKE [Healthcare premiums are set to spike as Americans get squeezed by medical costs]( Health’s at a premium… That cost-of-living pay raise may be even less exciting next year. Health-industry forecasts say that employers’ healthcare costs will [jump]( by 9% next year — up from this year’s 6% hike (which was already above the five-year average). That would push the cost per employee to more than $16K, which could see a larger chunk taken out of paychecks. - Blockbusters: More than half of employers say GLP-1s (think: Novo Nordisk’s Ozempic and Wegovy) are driving up their costs. Drug costs rose to 27% of companies’ health bills, up from 21% two years ago. - In the middle: Last month the FTC dropped a [scathing report]( saying that the biggest pharmacy benefit managers from companies like UnitedHealth and CVS could be inflating drug costs. Meanwhile, 37% of companies say they plan to find a new PBM next year. - Flashing the card: Major insurers have reported spiking medical costs as patients return to hospitals and doctors’ offices. UnitedHealth said its costs rose 9% last quarter. Aetna parent CVS this month said its medical costs could continue to climb this year. The affordability crunch… Healthcare’s bite out of Americans’ budgets is getting bigger. Over the past decade, the cost of prescription drugs has risen 37% in the US, where medical debt is the [leading driver]( of bankruptcy. Americans spend more on healthcare than people in any other major country, and about half said they’ve struggled to cover medical costs recently. THE TAKEAWAY Climbing costs tend to trickle down… While employers have swallowed the bulk of swelling healthcare costs in recent years, more could be passed on to workers in a [weaker labor market](. The chunk of the premium footed by employees rose more than 3% this year to nearly $5K/worker (more than the five-year average annual hike of about 1%). Nearly half of employers said they’re likely to shift rising costs onto their workers next year. [Read this online](   Presented by Elf Labs The Biggest Disruption to IP since Disney? History is being made in the $2T1 global entertainment & media industry and [you can get a piece by investing in Elf Labs]( — but only for a limited time.2 With over 100 historic trademark victories, Elf Labs owns rights to some of the highest-grossing characters in history, including Cinderella, Snow White, Little Mermaid, and more. These icons have generated tens of billions in merchandise revenue alone, since their inception. Now, Elf Labs is revolutionizing these characters with patented next-gen technology, including AR, VR and advanced compression algorithms for an unprecedented level of immersion. From virtual reality — without headsets — to AI-powered talking toys, this may be the biggest disruption to IP since Disney. Become an [Elf Labs shareholder now]( and get 5% bonus shares.3 Check out more [exclusive investor perks here](!4 Presented by Elf Labs The Biggest Disruption to IP since Disney? History is being made in the $2T1 global entertainment & media industry and [you can get a piece by investing in Elf Labs]( — but only for a limited time.2 With over 100 historic trademark victories, Elf Labs owns rights to some of the highest-grossing characters in history, including Cinderella, Snow White, Little Mermaid, and more. These icons have generated tens of billions in merchandise revenue alone, since their inception. Now, Elf Labs is revolutionizing these characters with patented next-gen technology, including AR, VR and advanced compression algorithms for an unprecedented level of immersion. From virtual reality — without headsets — to AI-powered talking toys, this may be the biggest disruption to IP since Disney. Become an [Elf Labs shareholder now]( and get 5% bonus shares.3 Check out more [exclusive investor perks here](!4   BULL’S-EYE [Target hits an earnings bull’s-eye as folks start reaching for “nice to have” products]( Quick Tarjay run… Target stock popped 11% yesterday after the retailer [beat]( second-quarter expectations with sales rising 3% from a year earlier. It was an improvement from Q1, when sales dipped 3% as shoppers cut back on everything from paper towels to home decor. Target’s profit popped 40% as folks spent more on higher-margin discretionary items (groceries are generally not that profitable). Notably, Target’s apparel sales were up 3% (and sundresses are more lucrative than salad dressing). In my discretionary era… Americans may be shifting back into the “don’t need it but want it” ethos. Target said that last quarter it saw an uptick in visits to its stores and website, and that consumers were starting to spend more on nice-to-have products like bathing suits and scented candles. Walmart also unloaded strong sales growth as merch sales (think: air fryers, sports gear) rose for the first time in 11 quarters. Meantime, discount-clothing retailers were humming along as folks treasure-hunted for deals like $12 Levi’s. - Maxx’d out: TJX — the parent of TJ Maxx, Marshalls, and HomeGoods — said yesterday that its same-store sales popped 4% last quarter, and that the boost was “entirely driven” by more transactions. Rival Ross reports today. THE TAKEAWAY If the price is right, they might bite… Retailers are focusing on value to lure inflation-weary shoppers, and it [seems to have paid off](. In May, Target said it would cut prices on 5K+ consumer staples, and its CEO said the price reductions drove higher traffic last quarter. Walmart said it cut prices on 7K+ items, and it also unloaded a strong quarter. Walmart and Target have also [hosted]( Amazon Prime-rivaling summer sales events to drive demand. [Read this online](   ON SHERWOOD [The most luxurious luggage is the kind you don't have to carry]( No matter how shiny and chrome a suitcase, we all must heave our bags from place to place. [Read more.](   What else we're Snackin' - [Skrrt](: Alphabet’s Waymo said it doubled its paid rides over the past three months to 100K/week. Waymo’s the only self-driving ride-hail service on US roads, but this fall Tesla plans to debut robotaxis. - [Buzz](: Beyoncé teamed up with LVMH’s Moët Hennessy to launch her first whiskey line, SirDavis. The singer joins A-listers like George Clooney and Kendall Jenner who’ve started premium-booze brands. - [Unplug](: Ford’s chopping 10% off its EV budget and scrapping plans for an electric 3-row SUV. As it loses millions on its gas-less lineup, Ford said it’ll make two electric pickups, an EV van, and a hybrid SUV. - [Mic](: “Call Her Daddy” host Alex Cooper signed a reported $100M+ podcast deal with SiriusXM, after her Spotify exclusivity ended this year. Streamers have made huge deals with top hosts to lock in listeners. - [Keeps](: Amazon’s letting its sellers issue refunds for some returns without getting the product back, which can be a hassle. An estimated 20% of online purchases are returned, costing retailers $642B/year.   Snack Fact of the Day [Out-of-network ATM withdrawal fees hit a record average high of $4.77](   Thursday - US initial jobless claims and existing-home sales - Jackson Hole Economic Policy Symposium opens - Earnings expected from Baidu, Peloton, Advance Auto Parts, BJ’s Wholesale Club, TD Bank, Workday, Intuit, Ross Stores, and Cava Authors of this Snacks own Alphabet, Amazon, CVS, and Walmart Advertiser's disclosures: 1[PWC Perspectives from the Global Entertainment & Media Outlook 2024–2028: Seizing growth opportunities in a dynamic ecosystem](, July 2024. 2 The end date of this offering is April 1, 2025. 3 A minimum investment of $2000 is required to receive the 5% bonus shares. 4 This is a paid advertisement for Elf Labs’ Regulation CF Offering. Please read the offering circular and related risks at [elflabs.com](. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.   [Instagram]( [Twitter]( [Sherwood Logo]( Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... 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