It Girl Identity: Issue 10

It Girl Identity Newsletter

Grab your iced vanilla latte and read what's moving markets this week, check out our free budgeting template, and enjoy our curated It Girl Identity recommendations!

What’s Moving Markets

After a highly volatile week driven by uncertainty and recession fears, the markets rebounded. Monday saw the S&P 500’s largest single-day decline since 2022, while Thursday delivered its best single-day performance since 2022. During the week’s selloff, investors flocked to money market funds as a safe haven, highlighting a flight to stability amid market turbulence.

What’s Up

• Eli Lilly (LLY): Eli Lilly’s Ozempic sales exceeded expectations, leading the company to raise its revenue forecast by $3 billion. This contrasts with slowing sales of Wegovy from its main competitor, Novo Nordisk, potentially boosting Eli Lilly's market share. The stock rose 11% for the week.

• Lumen Technologies Inc. (LUMN): Lumen Technologies saw a stock boost due to strong financial updates and new contracts with Corning and Microsoft, increasing its free cash flow forecast to $1.0-$1.2 billion. However, it lowered its EBITDA forecast to $3.9-$4.0 billion due to higher construction costs.

• Sweetgreen (SG): The stock surged 33.33% due to a strong earnings report and forecasts indicating higher-than-expected sales for 2024. This optimism was driven by Sweetgreen’s successful performance and future growth prospects.

• Doximity (DOCS): Shares jumped 38.70% after the company reported better-than-expected earnings and raised its revenue outlook. The increase was also fueled by Doximity’s investment in its DoximityGPT AI model, which boosted investor confidence.

• Expedia (EXPE): The stock climbed 10.21% following an earnings beat. Expedia successfully navigated a consumer spending slowdown, which reassured investors and boosted the stock price.

• Top S&P 500 Gainers: Axon Enterprise (AXON) +25%, Fortinet (FTNT) +23%, Kellanova (K) +19%, Uber Technologies (UBER) +16%, NRG Energy (NRG) +15%.

What’s Down  

• Apple (AAPL): Warren Buffett sold 50% of his Apple shares, causing the stock to drop nearly 5% on Monday amid a broader tech market decline. The stock recovered during the week but ended down 1%.

• Disney (DIS): Disney's theme park revenue rose 3% in Q2 compared to last year, but operating income fell 6%. Despite stable attendance, the decline in income reflects rising costs and price hikes. Consumers are also opting for international trips or waiting for new attractions, contributing to the slowdown.

• Airbnb (ABNB): Airbnb's earnings fell short of expectations due to decreased demand. Despite a revenue boost from Europe due to major events, the stock dropped 10%.

• Boeing Co. (BA): Boeing’s Starliner spacecraft has had problems with helium leaks and thrusters since June, delaying its mission to the International Space Station until early 2025. This adds to Boeing’s recent issues, including MAX jet crashes, that new CEO Kelly Ortberg must address.

• Paramount Global (PARA): Paramount reported a $6 billion loss on its cable networks like MTV and Nickelodeon due to declining TV ad revenue and increased competition from streaming. The company cut 15% of its U.S. workforce to save $500 million, which led to a 5.4% rise in its stock after hours.

• Google (GOOG, GOOGL): Google was found to have violated antitrust laws with its exclusive search deals on Android and Apple devices. This ruling could lead to ongoing legal issues and potential changes to Google's business practices.

• Top S&P 500 Losers: Super Micro Computer (SMCI) -19%, Warner Bros. Discovery (WBD) -15%, McKesson (MCK) -14%, Charles River Laboratories International (CRL) -14%, Monster Beverage (MNST) -11%.

Markets and Economy

• Volatility Index (VIX): The VIX, a measure of market fear, jumped 172% on Monday, reaching its third-highest level ever, behind only the 2008 financial crisis and the start of the COVID-19 pandemic. This surge was due to a market sell-off. Since then, the VIX has dropped 58% as optimism grows about a stable job market and potential interest rate cuts next month. (Check our Instagram and TikTok for more details!)

• Credit Card Debt Surges: U.S. credit card debt hit $1.14 trillion in Q2, up 5.8% from last year, as consumers increasingly use plastic to maintain spending power amid rising costs; the trend may persist if the Fed starts cutting rates in September.

• Temu Founder Becomes China’s Richest Person: Colin Huang, founder of Temu, is now the richest person in China with a $48.6 billion fortune, surpassing the previous top billionaire. Huang, a former Google engineer, founded Temu in 2015 and saw his wealth dramatically fall during the pandemic. Despite stepping down as CEO in 2020, he has benefited from Temu’s international expansion, including into the U.S.

• EV Market: Positive news for electric vehicles (EVs) as over half of the cars sold in China last month were electric or hybrid. This surge reflects growing consumer adoption and investment in green technology.

• Big Tech Regulation: UK regulators have launched an investigation into Amazon’s partnership with AI startup Anthropic, marking another significant regulatory challenge for Big Tech firms.

IPOs & Mergers and Acquisitions

• YXT.COM Group Holding (YXT): Chinese cloud-based digital corporate education platform, is expected to launch an IPO in the U.S. next week, aiming to raise $50 million.

• Lineage (LINE.O): World's largest cold-storage warehouse operator, announced on Wednesday that it raised $4.44 billion in its U.S. initial public offering, making it the largest global stock market debut of the year.

• Hargreaves Lansdown: Agreed to a $6.7 billion takeover by a private equity consortium led by CVC Capital Partners, Nordic Capital, and the Abu Dhabi Investment Authority. The FTSE 100 board supports the revised $14.50-per-share offer, up from the previously rejected $12.00 offer. The company, managing $190 billion in assets, has faced rising costs and tech investment challenges. The consortium plans significant tech investments to drive growth and transformation.

• IPO Quiet Period Expiration: The quiet periods for Ardent Health Partners (ARDT), TWFG (TWFG), and Artiva Biotherapeutics (ARTV) will expire.

  • Quiet Period: During this period, analysts and underwriters are restricted from issuing research reports or recommendations about the company's stock to avoid influencing the market. Once this period ends, analysts can begin posting ratings and recommendations.

• IPO Lockup Period Expiration: The lockup periods for shares of Sacks Parente Golf (SPGC) and Chromocell Therapeutics (CHRO) will expire.

  • Lockup Period: Set time frame following an IPO during which company insiders and major shareholders are restricted from selling their shares. After expiration, these shares can be sold on the open market, which can impact the stock's trading volume and price.

Earnings Calendar

Sources: Business Insider, WSJ, Reuters, The Guardian, MarketWatch

This Week's Major U.S. Economic Reports & Fed Speakers

Here is a quick breakdown of this week’s Fed Speaker events and economic indicators, what they mean, and their forecasts !

Monday, August 12

• July Monthly U.S. Federal Budget (2:00 pm): Forecast is -$221B, and last month's data was -$241B. This report shows the difference between federal government revenues and expenditures, indicating the size of the federal budget deficit or surplus.

Tuesday, August 13

• July NFIB Optimism Index (6:00 am): Forecast is 91.5, and last month's data was 91.5. This index measures small business owners' sentiment about the economy, reflecting their expectations for future economic conditions.

• July Producer Price Index (8:30 am): Forecast is 0.2%, and last month's data was 0.2%. This index tracks changes in the prices producers receive for their goods and services, serving as an indicator of wholesale inflation.

• July Core PPI (8:30 am): Forecast is 0.0%, and last month's data was 0.2%. Core PPI excludes food and energy prices to give a clearer view of inflation trends at the wholesale level.

• PPI Year Over Year (8:30 am): Forecast is 2.6%, and last year's data was 2.6%. This figure reflects the annual change in the Producer Price Index, indicating long-term inflation trends.

Wednesday, August 14

• July Consumer Price Index (8:30 am): Forecast is -0.1%, and last month's data was 0.2%. This index measures changes in the prices paid by consumers for goods and services, indicating retail-level inflation.

• CPI Year Over Year (8:30 am): Forecast is 3.0%, and last year's data was 3.0%. This shows the annual change in the Consumer Price Index, reflecting long-term inflation trends.

• July Core CPI (8:30 am): Forecast is 0.1%, and last month's data was 0.2%. Core CPI excludes food and energy prices, providing a clearer picture of underlying inflation trends at the retail level.

Thursday, August 15

• August 10 Initial Jobless Claims (8:30 am): Forecast is 233,000, and last week's data was 235,000. This report measures the number of new claims for unemployment benefits, indicating the health of the labor market.

• August Empire State Manufacturing Survey (8:30 am): Forecast is -6.6, and last month's data was -5.0. This survey assesses the performance of the manufacturing sector in New York, with a negative value indicating contraction.

• July U.S. Retail Sales (8:30 am): Forecast is 0.0%, and last month's data was 0.0%. This report shows the total sales of goods and services by retailers, reflecting consumer spending trends.

• July Import Price Index (8:30 am): Forecast is 0.0%, and last month's data was 0.1%. This index tracks changes in the prices of goods imported into the U.S., indicating inflationary pressures from abroad.

• July Industrial Production (9:15 am): Forecast is 0.6%, and last month's data was 0.0%. This report measures the total output of the manufacturing, mining, and utilities sectors, indicating overall industrial activity.

Friday, August 16

• August Consumer Sentiment (Prelim) (10:00 am): Forecast is 66.4, and last month's data was 66.6. This index gauges consumer confidence in economic conditions, with higher values indicating greater confidence.

• July Housing Starts (8:30 am): Forecast is 1.35 million, and last month's data was 1.35 million. This measure tracks the number of new residential construction projects started, reflecting demand in the housing market.

Sources: NASDAQ, Markets Insider, Wall Street Journal

How to Create Your Monthly Budget: A Step-by-Step Guide

Building on the basics of budgeting we covered last week, this guide explores advanced budgeting techniques and provides a practical monthly budget template to help you stay on track with your financial goals!

Disclaimer: Information shared here is for educational purposes only. Consult a financial advisor for personalized advice.

Step to Step Guide to Budgeting:

1. Calculate Your After-Tax Income

   • Collect Income Information: Gather all sources of income: part-time jobs, allowances, or any other financial support. For instance, if you work a part-time job earning $1,000 a month and receive $200 in allowance, your total monthly income is $1,200.

   • Subtract Taxes: Use your net income after taxes. If you’re earning $1,200 a month and taxes are $200, your after-tax income is $1,000.

2. List Your Expenses by Category

   • Fixed Expenses: These are regular monthly payments that don't change. Examples include:

     • Rent/Accommodation: $600 (for a shared apartment or dorm room)

     • Phone Bill: $50

     • Utilities (electricity, water, etc.): $100

     • Tuition/Student Loan Payments: $200

   • Variable Expenses: These can change from month to month. Examples include:

     • Groceries: $150

     • Transportation (gas, public transit, rideshares): $100

     • Beauty and Upkeep: $75 (includes skincare products, haircuts, etc.)

     • Personal Care (e.g., gym membership, toiletries): $50

     • Entertainment and Dining Out: $100

   • College-Specific Expenses:

     • Books and Supplies: $100

     • Campus Activities: $50

   • Surprise Expenses: Allocate some money to cover unexpected costs, such as car repairs or medical bills. Example: $50.

3. Add a Section for Investing

   • High-Yield Savings Account (HYSA): Like we mentioned before, this is our favorite savings account! A HYSA is essentially the "it girl" version of a savings account because it offers higher interest rates compared to traditional savings accounts, helping your money grow faster.

   • Emergency Fund: Aim to save a portion of your income every month. An emergency fund is crucial for unexpected expenses and provides financial security. Ideally, this fund should cover all your fixed expenses for up to 3 months.

     • Bonus Tip: HYSAs offer higher interest rates compared to traditional savings accounts, allowing your money to grow faster. By using an HYSA, you ensure that your emergency fund not only provides financial security but also benefits from passive growth.

   • Roth IRA: If possible, contribute some money to a Roth IRA each month. A Roth IRA allows for tax-free growth on your investments, which is beneficial for long-term savings and helps you build wealth early on!

   • Investment Account (Stocks, ETFs, etc.): Allocate a part of your income each month to an investment account. Investing in stocks or ETFs can help build wealth over time. Open one today through Charles Schwab or our personal favorite, Fidelity!

4. Calculate Your Total Expenses: Add up all your fixed, variable, college, and investment expenses.

5. Download our Monthly Budget Template!

   • Download Your Budgeting Template Here: [Excel Template]

By using this monthly budget template and following these advanced budgeting techniques, you'll gain greater control over your finances and work towards achieving your financial goals.

Sources: Forbes, NerdWallet

It Girl Recommendations

Shop Our Other Recommendations Here: health, fashion, fitness, education, beauty, and skincare...

Vanilla Latte Recipe

Ingredients:

• 1 cup milk (any type)

• 1 shot espresso or 1/2 cup strong brewed coffee

• 1-2 tablespoons vanilla syrup or extract

• Optional: Whipped cream and cinnamon for garnish

Instructions:

1. Brew Coffee: Prepare espresso or strong coffee.

2. Froth Milk: Heat milk until hot. Froth with a milk frother or whisk.

3. Combine: Mix coffee with vanilla syrup or extract. Pour frothed milk over coffee.

4. Garnish: Add whipped cream and cinnamon if desired.

5. Enjoy: Stir and savor your homemade vanilla latte!

Financial Fashion

Add some shine to a drab office look with an detachable collar to create endless outfits or aviator glasses and headbands to level up your look! Shop these below:

• Bottom Left - Aviator sunglasses (Nasty Gal)

• Top Right - (Similar) Detachable pearl collar (Amazon)

• Top Left - Pearl headband (Etsy)

• Bottom Right - Black padded satin headband (New Look)

Follow Our Other Socials

• TikTok

• Instagram

• LinkedIn

• Benable

• Amazon Storefront

See you next Monday, It Girls!

With Love,

It Girl Identity