Summary

Nike's shares plunged 20% after predicting a 10% sales decline due to weak consumer trends and slow China sales. Meanwhile, Nvidia's stock surged 149% amid the AI boom, but Federal Reserve interest-rate cuts are delayed amid market growth. The FTC blocked Tempur Sealy's $4 billion acquisition of Mattress Firm due to competition concerns. The Biden administration proposed heat protection rules for 36 million workers, while Disney and Pixar's "Inside Out 2" became the fastest animated film to reach $1 billion at the global box office, aiding Pixar's recovery post-pandemic.

‍

For those who read...‍

Hello, and welcome to this episode of Current2 Business! My name is Jake, and today we will be diving into the latest updates on stocks, the FTC, and the highest grossing film of the year!
‍

In stock market news

• Nike, the goddess of victory in Greek mythology: or as it’s better known, the shoe brand of champions!– and occasionally the dirt-crusted swoosh you see on your friend’s filthy AF1s. Yes, the footwear giant has seen better days, with shares plummeting nearly 20% last Friday after the company announced it expected to see sales drop 10% in the coming quarter on account of “uneven” consumer trends and lukewarm sales in China. Talk about a bad situation made worse. But hey, Nike, it’ll be alright: just do it! 
• It’s halftime in 2024, and over the last two quarters we’ve already seen great leaps and heights in the stock market from the recent AI boom, most visibly apparent in companies like Nvidia, whose stock shot up a whopping 149% over the past few months. Overall, the S&P 500 has risen 14% since the beginning of the year, but all this has been at a cost: highly-anticipated interest-rate cuts from the Federal Reserve have seen their goalposts moved back continuously with all this recent growth in the market, and resultantly— we’re just gonna have to friggin’ wait. 

‍

A word from our sponsor

Craving the perfect bagel? Just Bagels delivers! Authentic New York flavor, crunchy, chewy, and oh-so-satisfying. Order now at justbagels.com and enjoy free shipping, plus 10% off when you text “Bagels” to Current2!

‍

General business news

• The Federal Trade Commission voted unanimously yesterday to block mattress manufacturer Temper Sealy’s attempted purchase of Mattress Firm. The two companies agreed to the $4 billion deal in May, prompting the FTC to authorize a lawsuit in federal court in order to block the merger. The FTC voiced concerns that the deal would be bad for competition and has the potential to significantly raise prices for consumers. Analysts say the deal would have benefitted both companies and helped them to bounce back from slowed mattress and furniture sales following the pandemic.
• As summer continues, the Biden administration unveiled a plan yesterday that would put restrictions in place on employers that would protect up to 36 million workers from extreme heat. The proposed new rule would come from the U.S. Occupational Safety and Health Administration and would require employers to provide workers with water and a shaded or air conditioned area to take breaks when the temperature reaches over 80 degrees fahrenheit. Once temperatures reach 90 degrees, workers would be given a 15-minute break every two hours and employers would be required to monitor workers for heat-related health issues. If mandated, the new rule would almost certainly face legal challenges from business owners and trade groups.
• Disney and Pixar’s newest film, “Inside Out 2,” is officially the highest grossing film and the first film since “Barbie” to top $1 billion at the global box office. The move was the fastest animated movie in history to hit the billion dollar mark, helping Pixar continue to recover from its box office struggles in the wake of the pandemic.

‍

That’s all for today folks! Make sure to tune in Friday for the end of week recap of everything business. Tell your friends interested in business about us, it would mean the world, and thanks for listening to Current2 Business, the easy way to stay in the money.

‍

‍

Sources:

Nike shares drop (CNBC)

Halftime report (WSJ)

FTC unanimously moves to block $4 billion merger of mattress giants (CNN)

U.S. workplace safety agency proposes protections from extreme heat (Reuters)

“Inside Out 2” tops $1 billion at the global box office (CNBC)