DJI |
27,575 (-0.03%) |
NASDAQ |
11,134 (+0.15%) |
S&P 500 |
3,355 (+0.11%) |
*As of 10:20 a.m. ET
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U.S. stocks rose as investors anticipated the passing of a new stimulus package. The Dow was up 1.5%, the S&P 500 rose 1.6%, and the Nasdaq was up 1.9%. The government previously allocated $6.2 trillion in stimulus funds, which included federal economic programs and individual stimulus checks. These packages caused personal incomes to increase by 10.5% in April 2020, the largest increase recorded in American history.
The package proposed by Democrats:
- The total value is $2.2 trillion.
- Includes funding for small businesses, education, and childcare.
- Stimulus checks worth $1,200 for those with a gross income under $75,000. An additional $500 for each dependent and $600 extra per week through the Federal Unemployment Benefit.
- States and cities will get $436b to cover their budget deficits.
- Specific funding for airline workers, the U.S. Postal Service, election security, and other additional items are included.
However, reports suggest that Senate Republicans and the White House will find the $2.2 trillion price tag on the bill too high.
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Amazon unveiled "Amazon One," a technology which allows users to pay using their palm. The technology will launch in two Amazon Go stores in Seattle and expand to other Amazon Stores soon.
More:
- The biometric technology creates a palm signature based on surface area details such as lines and ridges. Amazon filed for a patent last year for the technology.
- Amazon is planning to offer this service to third parties such as retailers, stadiums, and office buildings who will benefit from contactless entry and payment technologies, particularly during the pandemic.
- To register for Amazon One, users should have a credit card and mobile number – an Amazon account is not mandatory. The user accounts and biometric details can be deleted through an online portal.
- After registering, customers can scan their palm and enter a store. Amazon will charge anything they take to the credit cards linked to their palm.
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Tesla is looking to solidify its supply chain after announcing plans for a new car and battery. Hacking its supply chain and developing new technologies are two major strategies the company employs to lower costs. Last week, Elon Musk announced a new $25,000 car set to launch in three years. He explained, "A lot of people want to buy a Tesla, but they simply don't have enough money."
More:
- Currently, the cheapest Tesla is the Model 3, which starts at $38,000 before EV incentives.
- Piedmont Lithium signed a five-year deal to supply Tesla with high-purity lithium ore mineral. The company's stock rose by almost ~236% from $11 to $37 following the agreement Monday.
- Tesla is attempting to purchase a 10% stake in LG Energy Solutions, a spinoff of LG Chem in South Korea.
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Coresight Research reported that around 25,000 U.S. retail stores are likely to close permanently in 2020, up from 9,500 last year. According to S&P Global Market Intelligence, the number of retail bankruptcies in 2020 has already reached 46, surpassing last year’s 25.
More:
- The number of bankruptcies filed in 2020 is the highest since 2010. In 2010, 48 bankruptcies were filed following the recession.
- Around 6,000 of the 9,500 store closures were due to bankruptcies. The rest were from solvent companies such as Gap and Macy's.
- As of August 2020, 4,779 commercial bankruptcies were filed, up 28% YoY. However, 40,085 non-commercial bankruptcies were filed in August, down 42% when compared to last year.
- More bankruptcies are expected in Q4, as companies surviving because of rent deferrals might face rent burdens in the near future.
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Bed Bath & Beyond announced Tuesday it would start offering same-day delivery to meet growing demand during the pandemic. Bed Bath & Beyond and its subsidiary buybuy BABY will be teaming up with Shipt and Instacart to make this feature available in 48 states.
More:
- There are currently 955 Bed Bath & Beyond and 155 buybuy BABY locations across the United States.
- Earlier this year, Bed Bath & Beyond introduced buy online, pickup in-store & contactless curbside pickup options to service customers who were hesitant to shop in-store due to the pandemic.
- Bed Bath & Beyond reported that its online sales increased by 82% for the quarter ending on May 30, with a greater than 100% increase in April and May.
- The company's share price is down almost 14% this year, and its market cap sits at $1.9b.
- Shipt's revenue increased by more than 350% YoY in Q2 as its order volume almost tripled. Target acquired Shipt in 2017 in a $550m deal.
- To be eligible for same-day delivery, a customer must spend at least $39, and they will be charged a delivery fee of $4.99.
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QUICK HITS
- Nikola Motor's ex-Chairman Trevor Milton has been formally accused of sexual abuse by two women. One of the complainants is his cousin Aubrey Smith, who made the accusation last week on Twitter.
- Lawyers for Apple and Epic Games delivered their arguments to a California judge Monday regarding Apple's ban of Epic's "Fortnite" from the App Store. A trial is expected to resolve the issue in July 2021.
- Disney+ launched GroupWatch, a co-watching feature that lets up to seven people to watch Disney+ shows/movies together. GroupWatch allows users to share emoji's but doesn't have a chat feature.
- Google said it will enforce the use of Google's payment systems for in-app purchases starting in September 2021. The company added that only 3% of Play Store apps offer in-app purchases and only 3% of those apps don't use Google's billing systems.
- Learn how to achieve powerful results from SMS—like 25x+ ROI—with 6 SMS marketing campaigns from leading brands.*
*This is sponsored content.
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Liam Gill is an experienced entrepreneur passionate about business strategy and law. In business, Liam is best known for founding Fumarii Technologies, a top 20 ranked cloud computing service (Yahoo Finance!). Academically, he is working towards a Canadian Masters of Law having completed a UK Law Degree and Masters of Management. He aims to support other entrepreneurs with free legal templates through Law4Startups.com and is happy to chat on Twitter or Linkedin. Reach out!
Nataraajan Arulolie is a Business Researcher at Inside and is keen on telling stories through data.
Jigney Pathak is a Business Researcher at Inside who loves technology, finance & sports. He has a Bachelor of Business Administration with a finance specialization & has previously worked at Salesforce.
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Editor
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Jonathan Harris is a writer for Inside.com. Previously, he wrote for The Huffington Post, TakePart.com, and the YouTube channel What’s Trending.
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