It Girl Identity: Issue 11

It Girl Identity Newsletter

Grab your iced matcha and read what's moving markets this week, useful money tricks, and enjoy our curated It Girl Identity recommendations!

What’s Moving Markets

The Dow, S&P500, and Nasdaq all closed in the green on Friday, while worries for a U.S recession arise. The dollar fell against the yen and gold is at an all-time high, house prices and mortgage rates remain high, and oil prices might rise after optimistic U.S. economic data. Headline CPI dropped to 2.9%, paving the way for the Fed to start cutting rates.

What’s Up

• Krispy Kreme (DNUT): Jumped 13.5% as the company saw a boost amid the broader market recovery. The rise reflects optimism in consumer sectors outside of pharmaceuticals.

• Starbucks (SBUX): Surged 25% after appointment of new CEO - Chipotle chief Brian Niccol.

• Victoria’s Secret (VSCO): Former Savage X Fenty leader, Hillary Super, appointed as next Victoria’s Secret CEO. Shares surged 16%.

• Walmart (WMT): Stock price gained 6.6% after strong quarterly sales report, followed by robust consumer spending.

• Ulta Beauty (ULTA): Leading market share and strong revenue growth, coupled with Berkshire Hathaway’s $260 million stake in Ulta made its shares rise by 11%.

• Cisco Systems (CSCO): Plans to cut workforce by 7% coupled with strong customer demand contributed to a 6.8% jump in shares.

• Top S&P 500 Gainers: Dexcom (DXCM) +3.16%, Ulta Beauty (ULTA) +3.12%, Tapestry (TPR) +3.06%, West Pharmaceutical Services (WST) +2.67%, Bath & Body Works (BBWI) +2.43%.

What’s Down  

• Chipotle Mexican Grill (CMG): Fell 7.50% following the departure of Brian Niccol. Concerns about potential leadership challenges have affected investor confidence.

• Trump Media & Technology (DJT): Fell 3.6% after Trump’s return to social-media platform X.

• Astera Labs (ASTR): The stock fell 5.52% after investment firms like Evercore and JPMorgan reduced their price targets for the chipmaker, reflecting lower growth expectations.

• ReNew Energy Global (RNW): Shares declined 5.91% following a disappointing earnings and revenue report, missing analysts' expectations and impacting investor sentiment.

• Top S&P 500 Losers: Amcor (AMCR) -3.69%, Chipotle Mexican Grill (CMG) -2.78%, Palo Alto Networks (PANW) -2.67%, Vistra (VST) -2.58%, Airbnb (ABNB) -2.16%.

Markets and Economy

• Cooler CPI Report: Consumer prices rose 2.9% from July last year, indicating a further decline in inflation. The Fed has signaled potential rate cuts as soon as September.

  • Economic Turnaround and Market Uncertainty: Recent macroeconomic data indicate that the Fed has managed to avoid a major slowdown while reducing inflation. The CPI rose 2.9% in July, below expectations, jobless claims fell to their lowest since July, and consumer sentiment and retail sales improved. Despite these positive signs, uncertainty remains, with predictions of a modest 25 basis point rate cut in September rather than a larger reduction. Investors are advised to shift from short-term yields to longer-term bonds to benefit from future rate cuts.

• Luxury Real Estate Trends: Wealthy buyers are investing in upscale lakefront properties, indicating a shift in real estate demand.

  • Record High of Million-Dollar Homes Amid Falling Mortgage Rates: Although mortgage rates are decreasing, making homeownership slightly more affordable, the number of US homes valued at $1 million or more has reached a record high. According to Redfin, 8.5% of homes are now in this price range, up from 7.6% last year and 4% pre-COVID. Additionally, there have been six sales of $100+ million homes this year, approaching the 2021 record, indicating that high-end property prices remain extremely elevated.

• Federal Reserve's Jackson Hole Symposium: From August 22 to 24, the Jackson Hole symposium will attract attention as central bankers, economists, and U.S. officials discuss key policy issues. Traders will closely watch for remarks from Fed Chair Jerome Powell on potential changes in monetary policy.

• Starbucks CEO Shake-Up: Starbucks (SBUX) made headlines by replacing CEO Laxman Narasimhan with Brian Niccol, currently of Chipotle Mexican Grill (CMG). CFO Rachel Ruggeri will be the interim CEO until Niccol officially takes over on September 9. The announcement boosted Starbucks shares by 24.5% and was well-received by Wall Street and activist investors, with former CEO Howard Schultz praising the move. Meanwhile, activist investor Trian Fund Management sold its SBUX shares.

• T-Mobile Fined $60 Million for Security Violations: T-Mobile US will pay a $60 million fine for failing to promptly report unauthorized data access incidents, violating a national security agreement tied to its merger with Sprint. This is the largest fine from the Committee on Foreign Investment in the U.S. (CFIUS) and the first time the panel has publicly named a company in an enforcement action.

• Venu Sports Launch Blocked Over Antitrust Issues: The debut of Venu Sports, a sports streaming service from Disney, Fox, and Warner Bros., has been temporarily halted by a federal judge due to concerns it would reduce competition. Rival streamer FuboTV, which argued the service would harm its business, saw a win with the ruling. Venu had planned to launch before the NFL season at $42.99 per month, but the companies are appealing the decision.

IPOs & Mergers and Acquisitions

• IPO Watch: Powell Max (PMAX) is set to price its IPO and begin trading next week; this holding company operates through its Hong Kong unit. Additionally, Trident Digital Tech (TDTH), a business and technology solutions provider, is also expected to start trading.

• Klarna Potentially Goes Public: The buy-now, pay-later provider launched new products while preparing for the “stars to align” for an IPO next year.

• Mars Acquires Kellanova in $35.9B Deal: Candy giant Mars has announced a $35.9 billion acquisition of snack maker Kellanova, which includes net leverage. This major M&A move will combine Mars's brands like M&M’s and Snickers with Kellanova’s products such as Cheez-It and Pop-Tarts. Kellanova, which was spun off from WK Kellogg last year, has recently delivered strong earnings and raised its FY24 guidance, signaling robust performance.

• Tilray Acquires Craft Beer Brands from Molson Coors: Tilray is expanding its craft beer portfolio by acquiring four U.S. beer brands from Molson Coors, including Hop Valley Brewing and Terrapin Beer. The deal, expected to close this month, aligns with Tilray's growth strategy and will boost its position as the fifth-largest craft brewer in the U.S., while also creating synergies in distribution and cost management.

Earnings Calendar

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 19

Speakers: Fed Governor Christopher Waller

• SCE Labor Market Survey: Provides key labor market measures such as unemployment, wage and benefits trends, average reservation wage, and more.

Tuesday, August 20

Speakers: Atlanta Fed President Raphael Bostic, Fed Vice Chair for Supervision Michael Barr

Wednesday, August 21

• FOMC July Meeting Minutes: Provides key information about the FOMC’s interest rate decision.

Thursday, August 22

• Initial Jobless Claims (Aug 17): Number of people filing for unemployment benefits for the first time. Forecast: 230,000 (Previous: 227,000).

• Existing Home Sales (July): Forecast: 3.95 million (Previous: 3.89 million).

• S&P Flash U.S. Manufacturing PMI (August): Early estimate of manufacturing that tracks output, new orders, and prices, based on the Purchasing Managers Index survey. (Previous: 49.6).

• S&P Flash U.S. Services PMI (August): Provides information about U.S. business conditions. (Previous: 55.0).

Friday, August 23

Speakers: Fed Chair Jerome Powell

• New Residential Sales (July): Forecast: 625,000 (Previous: 617,000).

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

Mind Over Money: Using Psychological Tricks to Grow Your Money

Last week, our budgeting guide helped you prioritize savings and track your expenses to get you closer to achieving your financial goals. This week we’ll explore ways to trick yourself into saving more!

Take advantage of the benefits of pre-commitment: An experiment by TED highlighted that those who commit to saving before they receive a sum of money such as their salary or a tax refund will save 10% more on average compared to those who do not.

• Bonus Tip: An easy way to do this is to set up a high yield savings account that requires you to make a minimum deposit of X dollars per month for a year (for example). Knowing that you’ll receive interest at the end of the period will keep you motivated and the mandatory deposit will ensure that you are putting some money away each month.

The Fresh Start Effect: Your motivation to act is at a high before a fresh start, be that New Year’s, your birthday, or graduation. Before one these starts or milestones, set yourself a financial goal (e.g. starting an emergency fund), commit it to it and watch how your savings flourish.

Resist the temptation of making small, frequent purchases: Small purchases can add up when they’re made everyday. Try to put a limit on the number of times you make that purchase in a week or put a spending limit on the card you use for them.

Visualization: We have a bias for the short term. $10 today feels more tangible than $100 a year from now. To overcome this, visualize and imagine your future self, as well as your goals—such as purchasing that holiday home or a 1965 Ford Mustang—regularly to motivate yourself to save for retirement, even though it may seem futile to save for a distant future.

• Bonus Tip: IGI’s It girls love to create boards of their future lives on Pinterest to aid the process of picturing their goals.

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

Sources: TED, Big Think

It Girl Recommendations

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

Melanie Lippman - Image Coach for Women in Leadership

Melanie is an image coach with a vast social media following. She helps women in the workforce with styling and confidence consultations. Check out her free “Be Seen” masterclass here.

Financial Fashion

As back to school season rounds the corner, here are some underrated shoe options to elevate your outfit while staying comfortable and stylish! Wear these as statement pieces, add a pop of color, or add them to your everyday staples. Shop these below:

• Top Left - Gazelle Bold

• Top Right - Dolce Vita Notice Stitch

• Bottom Left - Asics Gel-1130

• Bottom Right - Steve Madden Rex Leather Platform Boots

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See you next Monday, It Girls!

With Love,

It Girl Identity