Good Evening. As investors prepare for a major inflation report on Wednesday and the start of the third-quarter earnings season, U.S. stocks dipped on Tuesday, capping a volatile session.
The S&P 500 declined 0.65% after failing to maintain intraday gains, and the Nasdaq reached a new two-year low, falling 1.10%. The Dow Jones Industrial Average was an exception, closing in the green by 0.12%.
On Tuesday, the U.S. Department of Labor proposed a regulation that would make it more difficult for corporations to treat workers as independent contractors, a development that is expected to disrupt industries that rely on gig workers, such as ride-hailing, delivery, and others.
When workers are “economically dependent” on a corporation, the proposal would require that they be treated as employees, who are entitled to greater benefits and legal protections than contractors.
In a statement, U.S. Labor Secretary Marty Walsh stated that firms frequently misclassify vulnerable employees as independent contractors. Walsh stated, “Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.”
Looking forward… It may have many further effects on firm earnings and hiring, household incomes, and employee quality of life. The final rule is anticipated the following year.
Sunday’s marked the 10-year anniversary of the Bang energy drink. However… that same day, Jack Owoc filed for bankruptcy protection for the company.
How did it come to this? A combination of legal damages, a failed distribution contract, and stagnating sales have overwhelmed the Miami-based energy drink manufacturer and its founder.
Monday’s court filings in Florida disclose that Bang’s parent company owes Monster Beverage Co. and a small California juice manufacturer more than $500 million. It owes an additional $115 million to its former distributor, PepsiCo Inc.
In a statement, Owoc vowed to continue the business and asserted that the organization will emerge stronger. He announced that Bang’s lenders have contributed an additional $100 million and that the company has created a new distribution network that will take over once PepsiCo ceases transporting Bang Energy on its trucks this month.
It will be a tough road ahead… According to bankruptcy court filings, Bang has been in financial ruin since at least March, when it defaulted on hundreds of millions of dollars in debt. During the search for a rescue plan, Bang’s creditors refrained from seizing the company’s collateral and even advanced an additional $60 million.