#19 Daily Financial News Round Up - Nov 19,2021
Market Snapshot
Dow Jones is down by 0.75%, S&P500 is down by 0.14%, and Nasdaq Composite is up by 0.40%.
How’s crypto-market?
Bitcoin is up by 1.75%. It’s ALL green in the Cryptomarkets. Decentraland, Shiba Inu and XRP are the top three cryptocurrencies in the last 24 hours this week.
What news caught my attention?
Increased unionization of workers is happening in the wake of the pandemic. Starbucks’ workers join this union drive. Even though workers saw a boost in their wages, their real wages did not change thanks to inflation. Workers are resorting to collective effort to meet their demands.
Due to supply chain shock, businesses have lesser quantities of products to sell. The expectation was that due to the pandemic, consumers would spend less. Stimulus checks averted the anticipated decrease in consumer spending. A reduction in the supply of products combined with increased demand for products helped businesses charge more than they usually would. Higher prices helped businesses earn more than what they expected. The supply chain shock instilled inventory discipline amongst retailers. I hope this trend continues.
Covid-19 cases are resurging in Europe causing concern for global recovery.
IPO markets are on fire. Sweetgreen, a fast-food salad chain, joined other restaurants debuting in the public markets this week. Sweetgreen's shares surged 76% after it debuted on the public markets. This year, the amount raised in the IPO markets is $147 billion so far, breaking the earlier record high of $108 billion raised during the dot-com boom in 1999. Are we seeing another bubble? The trend of startups considered cool for being private seems to have finally reversed.
My Takeaways:
The unionization of tech workers is relatively new, as the movement started only in 2019. Worker unions seem alien to me, but I believe this is necessary for this generation’s workers to unionize to demand what’s fair.
“Less is More” - this is the realization that most retailers had due to supply chain issues.
Will the trend of IPO markets continue to next year?