Above the Fold

Consumers Are VERY MUCH in the Game

As we wind down another year of pandemic-driven stressors, there’s no doubt the average American is a bit more stressed than normal. Most of the talk among Wall Street analysts and traders is obviously around inflationary pressures, but it’s also focused on the consumer. Remember that it’s our confidence, spending and habits that drive profits for businesses big and small. And while it’s true that official consumer confidence readings have fallen over the last few months, there’s a different story emerging on the street. 

According to a recent report from Mastercard SpendingPulse, domestic holiday retail sales have exceeded 2020 and 2019 by huge margins. Between Nov. 1 and Dec. 24, Americans spent 47.3% more on apparel than in 2020 and 29% more than in 2019. Electronics also saw a 16.2% jump over last year and a near 20% increase over pre-pandemic levels in 2019. Jewelry purchases surged 20% over 2019 sales. And even department stores as a whole experienced a lofty 21.2% increase in sales this year over last, while enjoying 11% better revenues compared to the season just before the pandemic hit.

Three Things 

1. Elon Turns to Options to Liquidate More Stock – Elon Musk has been making controversial headlines around his recent stock sales and related tweets. The CEO and founder of Tesla just exercised more than 1.5 million options that were set to expire next year. These options were converted into more than 934,000 shares of stock and sold to cover related taxes. This latest transaction brings Mr. Musk’s grand total of stock options to 22.8 million (worth approximately $16 billion) in the last month and has reduced his Tesla stock holdings from more than 177 million shares down to 170.5 million. 
2. Short Squeeze Coming in Natural Gas Prices? – Natural gas prices had been on the rise for much of the year due to supply constraints and growing demand as pandemic pressures were easing. The popular commodity, used for heating and cooking, hit a high of $6.31 (per million British thermal units) in October, before easing to its current price of $4.10. Traders reportedly continue to place bets that the price will continue to fall, but falling temperatures may not only prevent a drop, but fuel another big spike and traders cover these short bets. 
3. Are You Ready to Lick Your TV? – According to Reuters, a Japanese professor has created a lickable TV screen that can imitate a myriad of flavors on demand. Called Taste the TV (TTTV), the device uses a carousel of 10 flavor containers that spray in unique combinations to imitate the taste of whatever is being displayed. And don’t worry, there’s an antimicrobial film that scrolls between tastings. 

Did You Know? 

Have a Healthy, Safe and Prosperous New Year!

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