November 12, 2021
Hello! Hope King here — how are you? TGIF! 😎
Today's newsletter is 673 words, a 2½-minute read.
🔔 The dashboard: The S&P 500 closed up 0.7%.
- Biggest gainer? Etsy (+7.4%) shares climbed higher again this week following the company's strong earnings and outlook issued last week.
- Biggest decliner? Hewlett Packard Enterprises (-8.2%) fell after Goldman Sachs downgraded the stock to sell and cut its price target, citing slowing IT spending in the U.S.
🚨Situational awareness: Judge Brenda Penny has freed Britney Spears from her 13-year-plus conservatorship.
1 big thing: Mothers make their way back to work
As the pandemic-era circumstances that drove a million American mothers out of work start to dissipate, that huge population of workers is coming back in greater numbers, Axios' Erica Pandey writes.
- Employment for working-age moms rose at a faster rate than any other group of prime-age workers (those between the ages of 25 and 54) in October, according to new Current Population Survey data analyzed by Indeed Hiring Lab.
Why it matters: Working parents make up a third of the U.S. workforce, and employers need the mothers who left their jobs to come back amid the current marketwide labor shortage.
By the numbers: The prime-age employment to population ratio for mothers with young kids (defined as those aged 13 and below) is now 2.9% below what it was pre-pandemic.
- That's still a lower recovery than fathers (–1.0%), and women without young kids (–2.3%) — but working moms are closing the gap.
What's happening: The Delta variant is receding, and school-age kids are finally able to get the vaccine, notes Alicia Modestino, an economist at Northeastern University.
- That means more schools will be able to fully reopen and stay open, and the child care constraints that are keeping parents — usually mothers — at home will fade.
- Wages are also increasing, which could be playing a role in bringing working moms back, Modestino says.
What to watch: Whether employment among moms keeps rising as pandemic-era conditions move further behind us.
- "This is one month of positive data, but it is just one month of data," says Nick Bunker, an economist at Indeed.
2. Charted: "I'm quitting" hits new record
Workers split from their jobs at another record pace in September.
- 4.4 million people, or 3% of the labor force, in the U.S. quit — up from 4.3 million in August.
Why it matters: Workers have been feeling more empowered than ever to leave positions amid a tight labor market that can reward job hoppers with higher pay and better benefits.
3. What's happening
💻 President Biden and Chinese President Xi Jinping will hold a virtual summit Monday. (Axios)
🛍️ Alibaba’s yearly “Singles Day” or 11-11 online shopping campaign generated a record 540.3 billion yuan ($84.5 billion) in sales, but annual growth fell to 8.5%, its slowest pace ever. (WSJ)
✂️ Johnson & Johnson will split in two next year — with one division focused on consumer products including Band-Aid and Johnson’s Baby Powder, and the other on advanced pharmaceuticals and medical devices. (Axios)
- Toshiba plans to split into three companies by March 2024, similar to GE. (WSJ)
🎮 EA’s “Battlefield 2042” advance release and Take Two’s “Grand Theft Auto: The Trilogy” stumbled in their release this week. (Axios)
4. Heading out and tuning out
Disney’s streaming business stumbled last quarter.
- The company added 2.1 million new Disney+ members, down from 12.6 million added in the previous three months.
- Concurrently, production and marketing costs rose — pushing Disney+ operating losses higher.
Yes, but: Pandemic factors applied forces that were unforeseen when the service first launched
- Streaming businesses received a huge initial boost in popularity during lockdowns but now across the board have seen a slowdown in growth as the health crisis wanes and out-of-home options return.
5. Another big day (Taylor's Version)
“Red (Taylor’s Version)” landed on streaming services at midnight.
- This is the re-recording of Taylor Swift’s album "Red," plus 14 extra tracks.
Context: Swift, who owns her songs' copyrights, is using the new releases to regain fuller control over her music.
- Scooter Braun’s private equity firm acquired her old music label in 2019, and last year it sold Swift's masters to another firm.
- “Red (Taylor’s Version)” is her second re-release, following “Fearless.”
Chart beat: The album is already No. 1 on Apple Music in the U.S.
6. What they're saying
Have a good one, and remember to take care of yourself.