1 big thing: Stocks take another beating

2. Charted: What Gen Z workers want

3. What's happening

4. Target trying to hold line on prices

A photo of a shopping cart outside a Target store.

5. Beetle ends a 168-year run

A blue medallion pinned to an Ash tree, indicating it has been treated with pesticide to kill the Emerald Ash Borer.

6. What they're saying

💡 A programming note: Our Axios team is gathered today and tomorrow for our first in-person company retreat since the pandemic hit. Look out for fun nuggets later this week.

Today's newsletter, edited by Pete Gannon, is 630 words, a 2.5-minute read.

🔔 The dashboard: The S&P 500 closed down 4.0%.

Biggest gainer? TJX Companies (+7.1%), after beating earnings expectations for the quarter.

Biggest decliner? Target (-24.9%), after quarterly earnings were hit by rising costs. More below.

National

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green

Catch up on the day's biggest business stories and look ahead to important trends. Led by Hope King and Nathan Bomey.

Axios Closer

1 big thing: From iPhones to EVs

An illustration of a person working under a large iPhone the size of a car.

2. What's happening

3. Charted: The Twitter vortex

4. What they're saying

🏛 Hello! Closer looks a little different today, as we're down in D.C. at an Axios retreat.

💡 As our friends at Axios Markets said this morning (and we know you read Markets), we're brainstorming ideas to keep you informed and delighted throughout the year!

Today's newsletter, edited by Pete Gannon, is 597 words, a 2.5-minute read.

🔔 The dashboard: The S&P 500 closed down 0.6%.

Biggest gainer? Synopsys (+10.3%), the software maker, as quarterly results beat expectations.

Biggest decliner? Under Armour (-15.8%) on news its CEO is stepping down at the end of the month.

1 big thing: Still spending

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2. Charted: Crash fatalities spike despite safer cars

4. Tweets about Twitter

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5. Cinnadust inspiration

A picture of Swiss Miss Cinnamon Toast Crunch Cinnamilk  by Conagra Brands and General Mills.

👋 Welcome back! We won't look at our credit card balance if you won't.

Today's newsletter, edited by Pete Gannon, is 698 words, a 2½-minute read.

🔔 The dashboard: The S&P 500 closed up 2.0%.

Biggest gainer? Paramount (+15.3%), after Berkshire Hathaway disclosed a $2.6 billion stake.

Biggest decliner? Walmart (-11.4%), following a major earnings miss.

Thanks to Sheryl Miller for copy editing today's (and every day's) newsletter.

1 big thing: Consumers adjust to inflation

Illustration of a percent sign with oranges instead of circles. 

2. Bonus chart

4. It’s us!

Hello Friday! The S&P 500 flirted with a 🐻 market, but it scampered off in the final hour of trading.

🚊 We're headed home today after a great company retreat (without Zoom!), and we'll be back to regularly scheduled programming on Monday!

Today's newsletter, edited by Pete Gannon, is 411 words, a 1½ -minute read.

🔔 The dashboard: The S&P 500 closed nearly flat, up 0.01%.

Biggest gainer? VF Corp (+6.1%), driven by the performance of its North Face brand and confidence in its margins.

Biggest decliner? Ross Stores (-22.5%), the discount retailer, after quarterly results Thursday afternoon short of expectations.

1 big thing: Formula shortage raises import questions

Illustration of a baby bottle with red battery bars decreasing.

2. Charted: Domestic manufacturing dominates market

4. Musk says deal for Twitter possible at lower price 

5. Pizza? You read my mind

💩, 👽 and 🦖 — just a few things Elon Musk has been talking about today, but not us.

Today's newsletter, edited by Pete Gannon, is 596 words, a 2-minute read.

🔔 The dashboard: The S&P 500 closed down 0.4%.

Biggest gainer? Occidental Petroleum (+5.7%), as the European Union inched closer to banning imports of Russian oil. 

Biggest decliner? Twitter (-8.2%), as Elon Musk continued to confuse investors about whether he would complete the Twitter deal, and at what price.

Americans keep spending despite worrying about inflation.

Why it matters: It’s another sign that the underlying economy remains relatively strong even as fighting inflation is now President Biden's "top domestic priority."

Driving the news: Walmart, the biggest U.S. retailer by revenue, missed on quarterly earnings but beat expectations with sales and bumped its top-line forecast for the year.

Home Depot today also raised its outlook for the year as it reported its largest ever first-quarter sales.

Retail sales in the U.S. — which include online, stores and restaurants — grew 0.9% overall in April from March compared to a 0.3% rise in the Consumer Price Index, government data out today shows.

Year-over-year retail sales rose 8.2%, compared to an 8.3% rise in inflation.

What they’re saying: “Given this show of strength from consumers, speculation that the US economy is in danger of an imminent plunge into recession [looks] badly misplaced,” Paul Ashworth, Capital Economics’ chief North American economist, noted.

Yes, but: Higher costs — for both businesses and consumers — are taking their toll.

Walmart, for example, reported a nearly 25% drop in net income last quarter compared to last year due in part to rising fuel and food costs.

Credit card usage among consumers has been steadily rising this year and is expected to keep rising.

Of note: Fed chair Jerome Powell said today he wouldn't hesitate to keep raising rates until inflation comes down.

Meanwhile, both Walmart and Home Depot customers spent more in the quarter, but they didn't shop more.

Walmart reported a 3% increase in comparable sales for the quarter over last year, but the number of transactions was flat.

Home Depot actually saw transactions fall 8.2%.

Our thought bubble: Inflation's fingerprints are all over this. Rising prices likely helped push sales receipt values up as visits decreased.

What to watch: Target and Lowe’s report earnings tomorrow. 

Consumers continue to defy inflation

Retailers like Walmart and Home Depot expect sales to be better than expected this year.

Inflation

Americans keep spending despite worrying about <a class="gtmContentClick" data-vars-link-text="inflation" data-vars-click-url="https://link.axios.com/click/27748373.92918/aHR0cHM6Ly93d3cuY2JzbmV3cy5jb20vbmV3cy9jYnMtbmV3cy1wb2xsLWluZmxhdGlvbi1vdXR3ZWlnaHMtam9icy1vbi1lY29ub21pYy12aWV3cy1wcmljZXMtZm9yY2UtY3V0YmFja3MvP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zY2xvc2VyJnN0cmVhbT10b3A/5ffe985a6c4b34267f3021cdB4a98065f" data-vars-content-id="114a2c9d-d0d0-4cde-9946-ec81c8bc8fc5" data-vars-headline="Consumers continue to defy inflation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/27748373.92918/aHR0cHM6Ly93d3cuY2JzbmV3cy5jb20vbmV3cy9jYnMtbmV3cy1wb2xsLWluZmxhdGlvbi1vdXR3ZWlnaHMtam9icy1vbi1lY29ub21pYy12aWV3cy1wcmljZXMtZm9yY2UtY3V0YmFja3MvP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zY2xvc2VyJnN0cmVhbT10b3A/5ffe985a6c4b34267f3021cdB4a98065f" target="_blank">inflation</a>.Why it matters: It’s another sign that the underlying economy remains relatively strong even as fighting inflation is now President Biden&#x27;s &quot;<a class="gtmContentClick" data-vars-link-text="top domestic priority" data-vars-click-url="https://link.axios.com/click/27748373.92918/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjIvMDUvMTAvYmlkZW4taW5mbGF0aW9uLWRlbW9jcmF0cy1yZXB1YmxpY2Fucy0yMDIyP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zY2xvc2VyJnN0cmVhbT10b3A/5ffe985a6c4b34267f3021cdBd27855b8" data-vars-content-id="114a2c9d-d0d0-4cde-9946-ec81c8bc8fc5" data-vars-headline="Consumers continue to defy inflation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/27748373.92918/aHR0cHM6Ly93d3cuYXhpb3MuY29tLzIwMjIvMDUvMTAvYmlkZW4taW5mbGF0aW9uLWRlbW9jcmF0cy1yZXB1YmxpY2Fucy0yMDIyP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1uZXdzbGV0dGVyX2F4aW9zY2xvc2VyJnN0cmVhbT10b3A/5ffe985a6c4b34267f3021cdBd27855b8" target="_blank">top domestic priority</a>.&quot;

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Target says it will continue to resist raising prices despite seeing its own costs balloon.

Why it matters: Companies are all trying to find their sweet spot with consumers when it comes to moving up prices. Retailers are seeing buyers start to pull away when prices on some of the lowest priced items are hiked, while services businesses like restaurants and hotels are finding there’s still more room to pass along costs.

Driving the news: In an earnings call this morning, Target CFO Michael Fiddelke said, “while it’s always the last lever we pull, external conditions led us to raise prices across a broad set of items in multiple categories.”

By the numbers: Target reported a huge decline in net profits last quarter — 52% — due to higher costs from labor, mistimed inventory and inputs like fuel and freight.

The company reported its costs will also rise by an additional $1 billion this year, more than had been expected. 

The big picture: Target’s first quarter woes and results mirrored those of Walmart’s, which were published yesterday.

Shares of Target closed down 24.9% following today’s report, while Walmart’s stock saw its worst day yesterday since 1987, according to Reuters. 

What to watch: Target may be facing a tougher rest of the year than Walmart given it relies more on sales of discretionary products, Arun Sundaram, senior equity research analyst at CFRA, tells Axios. 

Target crushed by higher costs and weakening consumer demand

The company says it will continue to resist raising prices despite seeing its own costs balloon.

Retail

Target says it will continue to resist raising prices despite seeing its own costs balloon.Why it matters: Companies are all trying to find their sweet spot with consumers when it comes to moving up prices. Retailers are seeing buyers start to pull away when prices on some of the <a class="gtmContentClick" data-vars-link-text="lowest priced items are hiked" data-vars-click-url="https://www.wsj.com/podcasts/your-money-matters/pushing-back-on-inflation-some-shoppers-reject-higher-prices/b4177665-6215-406e-a80d-15e34bc4f6be" data-vars-content-id="5cffcbfc-711f-4276-a457-fe805f4a5057" data-vars-headline="Target crushed by higher costs and weakening consumer demand" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/podcasts/your-money-matters/pushing-back-on-inflation-some-shoppers-reject-higher-prices/b4177665-6215-406e-a80d-15e34bc4f6be" target="_blank">lowest priced items are hiked</a>, while services businesses like restaurants and hotels are finding there’s still <a class="gtmContentClick" data-vars-link-text="more room" data-vars-click-url="https://www.nytimes.com/2022/02/27/business/economy/price-increases-inflation.html" data-vars-content-id="5cffcbfc-711f-4276-a457-fe805f4a5057" data-vars-headline="Target crushed by higher costs and weakening consumer demand" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nytimes.com/2022/02/27/business/economy/price-increases-inflation.html" target="_blank">more room</a> to pass along costs.

Data: WakeField via iCIMS Class of COVID-19 report; Chart: Jacque Schrag/Axios

Younger workers, in the aftermath of the pandemic, are craving a more traditional work experience with employers who accept them for who they are.

Why it matters: Companies across industries are trying to figure out the right way to meet employees' new needs — such as hybrid work requirements and benefits — amid a labor market that still favors workers.

State of play: Among recent grads, mental health support is the top career expectation, according to a new survey of 1,000 young adults from iCIMS, a talent acquisition software provider.

91% of those surveyed (class of 2020, 2021 or 2021 undergrads) said they care how long they stay with an employer.

Nearly 70% say they actually see themselves staying long term. 

The big picture: The upheaval that graduating college students have lived through over the past three years has changed their perspective on what they want and need. 

“Stability is key for them,” Rhea Moss, director of data insights and customer intelligence at iCIMS, tells Axios.

What to watch: Younger workers are diligent about researching the companies they work for as well as their potential managers, according to the study.

"[This generation] is being very particular about the company they'd want to work for where they feel that they can bring their whole, true self to work," says Moss.

Gen Z workers crave career stability

They're looking for a more traditional work experience where they can bring their "true self."

Labor

Younger workers, in the aftermath of the pandemic, are craving a more traditional work experience with employers who accept them for who they are.Why it matters: Companies across industries are trying to figure out the right way to meet employees&#x27; new needs — such as hybrid work requirements and benefits — amid a labor market that still favors workers.

Legendary actress Michelle Yeoh leads in the arthouse film "Everything Everywhere All at Once," which has overtaken “Uncut Gems" as the highest grossing A24 movie stateside.

Why it matters: A24, an indie studio which has produced Oscar winner "Moonlight" and the highly acclaimed "Lady Bird," likely has its next Oscar contender in “Everything, Everywhere.”

Yeoh, the character she plays in the film (an aging immigrant woman who owns a laundromat) and the film’s success have defied expectations about the kinds of movies that draw people to theaters. 

Catch up quick: "Everything Everywhere" has made $52.3 million domestically, according to Forbes.

When it surpasses "House of Gucci," it will have made more than any of last year’s Oscar-season awards releases except for “Dune,” according to GQ. 

State of play: Nearly half of pre-pandemic moviegoers are no longer returning.  "Everything Everywhere's" success is surprising because analysts had predicted people will only turn out to theaters for superhero epics.  

"Instead, a weird, small-budget film without any household names on the marquee took in an astonishing $50,130 per theater when it opened in 10 locations … better than Walt Disney Co.’s ‘The Avengers,’ which debuted in more than 4,300 cinemas in 2012," Bloomberg notes.

What she's saying: Yeoh, 59, has been a star for decades, having played roles in "James Bond," “Crouching Tiger, Hidden Dragon," and "Star Trek: Discovery," but says this titular role is one that really appealed to her.

"Science tells us women outlive men. But even with extra time, we have to get a lot more done," Yeoh said as she accepted Gold House's legend award at the inaugural Gold Gala, the largest gathering of top Asian and Pacific Islander cultural leaders in history.

"God forbid you are a woman of over 50 building something of your own," she added.

The big picture: “[U]nless your last name happens to be Streep or McDormand, chances are you’re not working much in film [if you're an aging actress]," Martha Lauzen, executive director of the Center for the Study of Women in Television and Film at San Diego State University, told USA Today after her annual report was published last year. 

Michelle Yeoh and new film defy expectations

Aging women, diverse stories are regularly overlooked and underestimated.

actress Michelle Yeoh on stage accepting award in pink dress

Actress Michelle Yeoh in Los Angeles. Photo: Stefanie Keenan/Getty Images

Hollywood

Media

Legendary actress Michelle Yeoh leads in the arthouse film &quot;<a class="gtmContentClick" data-vars-link-text="Everything Everywhere All at Once" data-vars-click-url="https://www.axios.com/pro/media-deals/2022/04/25/a24-scores-big-win-everything-everywhere-all-at-once" data-vars-content-id="bd4806e0-1135-4f07-bd84-dd4cdc5b6e41" data-vars-headline="Michelle Yeoh and new film defy expectations" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/media-deals/2022/04/25/a24-scores-big-win-everything-everywhere-all-at-once" target="_self">Everything Everywhere All at Once</a>,&quot; which has <a class="gtmContentClick" data-vars-link-text="overtaken" data-vars-click-url="https://deadline.com/2022/05/everything-everywhere-all-at-once-a24-box-office-record-1235029369/" data-vars-content-id="bd4806e0-1135-4f07-bd84-dd4cdc5b6e41" data-vars-headline="Michelle Yeoh and new film defy expectations" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://deadline.com/2022/05/everything-everywhere-all-at-once-a24-box-office-record-1235029369/" target="_blank">overtaken</a> “Uncut Gems&quot; as the highest grossing A24 movie stateside.Why it matters: A24, an indie studio which has produced Oscar winner &quot;Moonlight&quot; and the highly acclaimed &quot;Lady Bird,&quot; likely has its <a class="gtmContentClick" data-vars-link-text="next Oscar contender" data-vars-click-url="https://www.forbes.com/sites/scottmendelson/2022/05/22/box-office-doctor-strange-2-passes-batman-tops-800-million-everything-everywhere-all-at-once-becomes-top-grossing-a24-movie/?sh=188a2d3c6151" data-vars-content-id="bd4806e0-1135-4f07-bd84-dd4cdc5b6e41" data-vars-headline="Michelle Yeoh and new film defy expectations" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.forbes.com/sites/scottmendelson/2022/05/22/box-office-doctor-strange-2-passes-batman-tops-800-million-everything-everywhere-all-at-once-becomes-top-grossing-a24-movie/?sh=188a2d3c6151" target="_blank">next Oscar contender</a> in “Everything, Everywhere.”

Oishii, the company behind the $6 strawberry, is cutting prices by more than half as it opens a large indoor vertical farm, the company announced Thursday.

A tray of 11 medium berries or eight large berries will cost $20 instead of $50.

The big picture: Demand for the gourmet berries is high, as are other pricey, made for Instagram fruits like Cotton Candy grapes or Sumo Citrus mandarins.

What they’re saying: "Yes, it's still $20, but our goal is to make this available to everyone — not just in New York — around the world," CEO and co-founder Hiroki Koga tells Axios.

What to watch: The company also announced that its products will be available at a new Whole Foods store opening in New York in a few weeks.

Company behind $6 strawberry cuts prices after opening indoor farm

The company is opening its largest vertical farm, which helps brings prices down.

Oishii, the company behind the $6 strawberry, is cutting prices by more than half as it opens a large indoor vertical farm, the company announced Thursday.<ul><li>A tray of 11 medium berries or eight large berries will cost $20 instead of $50.</li></ul>

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Stories

Michelle Yeoh and new film defy expectations

Company behind $6 strawberry cuts prices after opening indoor farm

Target crushed by higher costs and weakening consumer demand

Gen Z workers crave career stability

Consumers continue to defy inflation

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