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Welcome back! President Joe Biden's reelection campaign is facing a critical moment. Sen. Peter Welch became the first Senate Democrat to publicly call for the president to drop out of the race — and some Democratic leaders might also now be open to ditching Biden. Hollywood, too, is starting to change its tune.
All eyes will be on Biden's solo press conference today closing out this week's NATO summit.
But for now, we're turning to Wall Street in our big story, as big banks gear up to report their earnings.
What's on deck:
- Markets: Unless the Fed starts to cut rates soon, millions of Americans could lose their jobs.
- Tech: Samsung just unveiled a host of new products, including an AI-powered fitness ring.
- Business: Warner Bros. Discovery CEO David Zaslav would like a new president.
First, it's (almost) showtime.
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The big story
Earnings to watch
Just like that, it's Wall Street earnings season once again.
To kick things off, JPMorgan, Citigroup, and Wells Fargo will be reporting their second-quarter earnings tomorrow.
We'll continue to hear results next week, with Goldman Sachs and BlackRock reporting on Monday, and Bank of America and Morgan Stanley on Tuesday.
To get a sense of what we could expect from these calls, I spoke with Kaja Whitehouse, a senior finance editor at Business Insider.
She told me that, among other things, bankers and investors will be keeping an eye out for updates on Jamie Dimon's retirement, news on banks' AI adoption, and whether more banks will start charging consumers for their checking accounts.
To really break it down for you, here's my Slack conversation with Kaja.
Is investment-banking activity coming back?
Wall Street banks have been waiting for M&A, IPOs, and other fee-generating corporate dealmaking to come roaring back for two years. There are finally signs activity is picking up.
When Jefferies reported Q2 earnings in June, it said investment-banking revenues grew 8.6% from the previous quarter and 59.4% from the same quarter last year across all business lines. Jefferies is much smaller than JPMorgan and Goldman Sachs, but its earnings are still closely watched as an indication of what's to come.
Will Jamie Dimon share more details about his impending retirement?
In May, the CEO shocked Wall Street by saying he plans to step down in the next five years. As Wall Street's longest running and best known CEO, his replacement and what he plans to do next are big dinner-table topics.
Will banks start charging for everyday consumer products like checking accounts?
Last week, Marianne Lake, CEO of JPMorgan Chase's consumer and community banking, suggested banks could start charging for things that are currently free. That includes checking accounts and financial planning tools.
What's going on with AI?
We're always watching for news on AI adoption, including how the tech might help companies maximize their potential and cut costs. Last quarter, BlackRock CEO Larry Fink said AI has helped the asset manager increase productivity without increasing headcount.
3 things in markets
- We're at the edge of an unemployment cliff. The labor market's post-pandemic boom has cooled. Unless the Fed cuts interest rates, the recent unexpected rise in unemployment is going to get worse, economist Neil Dutta argues.
- Private equity preps for commercial real estate grab. Investors have more than $250 billion in cash earmarked for North American properties. That's a sign the firms are gearing up for a well-timed pounce on the beleaguered sector, which is beset by high interest rates and vacancies caused by the remote-work shift.
- After Tesla's big win streak, Elon Musk is once again the world's richest person. Musk's net worth grew by $67 million during Tesla's 10-day stock soar, bringing his overall net worth to $274 billion. He surpassed Jeff Bezos, the previous No. 1 Rich Guy, by $53 billion.
3 things in tech
- No rizz? Big Tech might be to blame. A 35-year-old FAANG manager is ready to settle down, but the demands of his job have made dating in Silicon Valley a struggle. He described the last decade of dating ups and downs — including one dreaded situationship.
- Samsung's ring to rule them all. The Korean electronics giant unveiled its shiniest new device, an AI-powered fitness tracking ring. The Galaxy Ring is a direct competitor of the Oura Ring, and a step away from the smartwatch, though Samsung still has plenty of those to go around. It also launched two more foldable phones.
- Can these new social apps make their 15 minutes last? You've heard of Instagram and TikTok. Then there was BeReal, followed by Lapse, NGL, and most recently Noplace. If these last few don't ring a bell, it's because they largely haven't lived past the initial buzz. Alternatives to Big Social pop up often, but so far, none have stuck around long.
3 things in business
- Locked out with nowhere to go. Illegal eviction complaints are on the rise, with tenants often left stranded. Those at the margins of the rental market — living in long-stay motels or informal trailer parks, for instance — are especially vulnerable. To make matters worse, police rarely crack down on the landlords.
- David Zaslav would like a new president. The Warner Bros. Discovery CEO, like many tech and media bosses, isn't a fan of Joe Biden's antitrust policies. But while others in the biz shy away from saying it outright, Zaslav has made it clear: He wants someone else in charge.
- Montana's housing crisis is a warning for older homeowners. Owning a home doesn't guarantee financial security in old age, as Montana's current housing issue shows. Though home values have skyrocketed, so have the costs associated with ownership, which can leave older homeowners with no choice but to downsize.
In other news
- Biden faces a closer race in deep blue New York, a huge problem for swing-district Democrats.
- Costco is raising its membership fee for the first time in 7 years.
- A brain expert explains the cognitive test used to assess a president's mental fitness. It's not easy.
- An exodus of investors is underway at Index Ventures on the back of a $2.3 billion fundraise.
- Microsoft and Apple may be playing the long game by ditching OpenAI board roles.
- Why Amazon wants you to pick up your Prime Day orders this year.
- Costco's hourly workers are getting a raise — read the CEO's memo.
- Fisker founder cuts salary to $1 to cover bankruptcy costs.
- Donald Trump threatens to send Mark Zuckerberg to prison if he is elected.
- Gen Zs are better at 'loud budgeting,' but nearly half still need financial support from family: study.
- Clarence Thomas accepted a free yacht trip to Russia and got flown out on a complimentary helicopter ride to Putin's hometown, 2 Democratic senators say.
What's happening today
- Delta Air Lines, PepsiCo, and other companies are reporting earnings.
- CPI data is released by the Bureau of Labor Statistics.
- President Biden wraps NATO summit with a press conference.
The Insider Today team: Jordan Parker Erb, editor, in New York. Lisa Ryan, executive editor, in New York. Joe Ciolli, executive editor, in Chicago. Hallam Bullock, senior editor, in London. Annie Smith, associate producer, in London. Amanda Yen, fellow, in New York.
