Good morning. US stock futures were mixed in Thursday morning trading as investors awaited data on home sales, jobless claims, and US GDP.

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Naval Ravikant

Top News

Oil prices hit 2023 high

WHAT: Looks like oil futures are setting new record highs in 2023 after inventories at the largest storage hub in the US fell towards levels nearing an operational minimum. West Texas Intermediate (WTI) prices jumped by more than 3% to settle just below $94 following a drop in oil stockpiles below 22 million barrels at the benchmark Oklahoma facility.

WHY: The rise in prices has fueled speculation of $100 per barrel in the coming months. Goldman Sachs recently raised its price target to $100 for the next 12 months.

Not so fast on minimum wage says judge

WHAT: A federal judge just did a “not-so-fast” move to President Joe Biden’s plan of making government contractors pay workers a minimum wage of $15 per hour. According to the ruling, which was handed down in Texas, the president’s order potentially affects millions of workers and has “vast economic and political significance”, with only Congress having the power to adopt it.

WHY: The minimum wage under federal law is $7.25 an hour though many states set higher minimums. Four states and several cities have a minimum wage of at least $15.

Bank exec: Fed has nailed soft landing

WHAT: Bank of America CEO Brian Moynihan thinks the Fed has “stuck the landing”. Speaking at a luncheon hosted by the Economic Club of New York, Moynihan said the Federal Reserve needed to tame inflation by slowing the pace of the US consumer, and according to the bank’s data, that strategy has worked. “If you’re trying to engineer a soft landing…on balance, they’ve won” Moynihan said.

WHY: Moynihan said he expects the Fed to raise interest rates one more time in November, followed by three rate cuts in 2024, and four in 2025.

In Other News

Another day, another antitrust lawsuit…

WHAT: And just like that, it’s Apple’s turn to face the antitrust lawsuit brigade! The company was ordered to face a private antitrust lawsuit by payment card issuers who accuse Apple of thwarting competition for its Apple Pay mobile wallet.

WHY: According to the complaint, Apple’s conduct forces more than 4000 banks and credit unions that use Apple Pay to pay at least $1 billion of excess fees, and harms consumers by minimizing the incentive to make Apple Pay safer and easier to use.

Meta rolls out new headset, smart glasses

WHAT: Meta is back in town and they’ve bought some fancy new headgear with them! The company recently introduced its latest lineup of head-worn devices, staking fresh claim to the virtual and augmented reality industry. At its annual developers conference, Meta unveiled its Quest 3 headset, along with a second-generation smart glasses it developed with luxury sunglass maker Ray-Ban.

WHY: Starting at $499, the Meta Quest 3 boasts a slew of upgrades over the Quest 2 including a thinner design and sharper visuals. The Ray-Ban smart glasses start at $299 and are expected to go on sale in mid-October.

Lululemon, Peloton join forces

WHAT: Lululemon is making some workout buddies in the digital fitness world! They’ve joined forces with Peloton to launch a five-year partnership that involves Peloton tapping its online workouts and teaming up on apparel.

WHY: The two companies have taken divergent paths since the pandemic. Peloton has struggled to bounce back from a post-Covid-19 slump while Lululemon has continued to produce double-digit growth and gain market share from lower-cost retailers.

Key Economic Events

• Thursday - US GDP Q-o-Q

• Friday - U. Of. Michigan Consumer Sentiment

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