More retailers today reported checkout receipts from their latest quarter that underscored the limits of lower prices.
Target, which in May started dropping prices on over 5,000 products, saw 3% more transactions in stores and online last quarter vs. a year ago, but average transaction amounts (💵) dipped 0.9%.
Macy's, which expanded promotions across its Macy's, Bloomingdale's and Blue Mercury stores, saw its net sales decline 3.8%.
TJX, the parent of discount chains Marshalls, HomeGoods and TJ Maxx, lowered its full-year earnings guidance as home goods sales growth slowed from last year.
Between the lines: You can show consumers a deal, but you can't make them buy.
What we're watching: Nordstrom, Best Buy, Dollar General, Gap, Lululemon and Ulta are set to issue earnings next week.
The "vast majority" of Federal Reserve officials said the central bank would likely cut interest rates in September—while several saw a case to slash rates last month, according to minutes from the policy meeting in late July released on Wednesday.
Why it matters: It's the clearest indication yet the Fed is on track to cut interest rates next month for the first time since 2020 as worries about the health of the economy mount.
New data released on Wednesday pointed to a labor market that is weaker than initially thought: There were 818,000 fewer jobs added last year through early 2024, the Labor Department said.
Why it matters: The revisions are the first step in an annual process that updates jobs data based on more complete information. This year, they are the largest since 2009 and reveal a labor market that has cooled more drastically than previously known.
Ford is again shifting its electrification strategy — delaying a planned electric pickup truck by 18 months and killing plans for a 3-row electric SUV.
Why it matters: After losing billions of dollars on electric vehicles in recent years, Ford now says it won't launch any EVs unless they can be profitable in the first 12 months.
Lowe's just slashed its sales forecast for the year — a move that provides a glimpse into what's happening in a big chunk of the U.S. economy.
Why it matters: The pandemic spurred a boom in home spending as rock-bottom interest rates encouraged people to borrow to pay for DIY projects — but that era is over.
The histories of members of Vice President Kamala Harris' campaign team bode ill for blockchains.
Why it matters: Crypto industry leaders have hoped that next year will see a Congress and a president ready to work out a deal with token slingers, one in which politicians and entrepreneurs can live with each other.
The histories of members of Vice President Kamala Harris' campaign team bode ill for blockchains.
Why it matters: Industry leaders have hoped that next year will see a Congress and a president ready to work out a deal with token slingers, one in which politicians and entrepreneurs can live with each other.
The big picture: The 92-page platform from the Democratic Party is just as silent on Bitcoin and other cryptocurrencies as is the candidate leading its ticket.
But three particular staffers on Harris' election team have an explicit history of stymieing the industry in official roles: Brian Deese, Bharat Ramamurti and Brian Nelson.
Among regulators, the hot topic in blockchains at the moment is prediction markets (or "event contracts" in government-speak).
Why it matters: It looks like a billion dollars will probably get bet on a variety of ways of looking at the U.S. election on the leading prediction market this year.
Polymarket's terms of service prohibit Americans from using the site, but there's not much money being bet on any other country's elections.
Driving the news: The CFTC just completed public comment on a draft rule that it proposed, which would ban betting on elections (among other things).
It's something of a hot-button issue (for electeds and investors).
Here's something strange: The Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House of Representatives on Bitcoin Pizza Day, has not been sent to the other chamber yet.
Zoom in: Axios reviewed several recently passed pieces of legislation. All but one went over reasonably quickly, often the same day.
On Congress.gov, those bills are marked "Received in the Senate" under actions. FIT21's isn't.
What they're saying: Axios has asked a number of people who care about the bill, and no one else had noticed this stagnation.
But they all thought it odd.
Friction point: Revenue has to originate in the House, and the bill has a little funding mechanism (Section 510).
To make sense of a confusing last few years in the economy, it is extremely helpful to look at a business school staple often taught with an in-class simulation involving beer.
The big picture: The "bullwhip effect," in which small fluctuations in demand ripple through supply chains to create huge shifts in output and inventories, is a core idea in operations management. It also describes many of the shifts unleashed by the pandemic that are still rippling through the economy.
One of Kamala Harris' most controversial policy proposals is a ban on grocery price gouging — critics are conflating the idea with Soviet-style price controls, and calling the plan "Kamunism."
Why it matters: If banning price gouging is communist, then the U.S. went Marxist long ago. Most of us live in states that already have bans in place.
Startups are shutting down at a rapid rate, as raising money from venture capitalists becomes more difficult.
Why it matters: Venture capitalists — under pressure from their own investors, due to a lack of IPOs and mergers — are becoming more selective about which companies they invest and reinvest in. Well, unless it claims to do generative AI.
Former President Trump may tap Tesla CEO Elon Musk for a role in his administration if he's re-elected in November, he told Reuters in an interview Monday.
The big picture: The pair have forged an alliance andthe former president has for months reportedly been weighing a possible role for Musk — one of the richest people on the planet who controls one of the world's biggest social media platforms and has endorsed him in the presidential race.
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