Good Evening! On Thursday, the S&P 500 entered a bull market and stocks concluded the day with an upward trend. This occurred as investors analyzed recent economic data in anticipation of the upcoming Federal Reserve meeting, as well as a leadership transition at GameStop (GME).
The S&P 500, Nasdaq Composite, and Dow Jones experienced gains of 0.62%, 1.02%, and 0.50% respectively, with the Nasdaq Composite surging the most today.
YOU'RE FIRED!
GameStop stock (GME) experienced a decline after the announcement of the dismissal of CEO Matthew Furlong and the release of quarterly revenue figures that fell below anticipated levels. Oddly enough, the video game retailer declined from conducting a quarterly earnings call, which is conventionally regarded as a standard practice in the industry.
- Revenue: $1.24 Billion vs. $1.34 Billion Expected
Did Gamestop give any reason? Nope… The market expressed frustration with GME’s handling of the situation with the termination of its CEO and did not provide any justification and unexpectedly called off its earnings call. This led to a decline of 17.89% for the day and the reaffirmation of a pessimistic outlook by at least one Wall Street analyst who believes that the video game retailer remains “doomed.”
So who is stepping in? GameStop has announced that Ryan Cohen, an activist investor and board member, will be taking on the role of Executive Chair with immediate effect. In this capacity, Mr. Cohen will be tasked with overseeing management and capital allocation. According to a distinct regulatory submission, GameStop has reported that Furlong’s termination was “without cause.”
TIMES ARE CHANGING
With the most recent study from Bankrate Survey, only 65% of adults in the U.S. consistently offer a tip to their servers while dining at sit-down restaurants. The percentage has decreased from 73% in the previous year and further decreased from 77% in 2019.
And it’s not only for sit-down restaurants… Tipping rates among Americans have decreased for all types of services, both pre-pandemic and currently. The surveyed workers comprised servers, hair stylists, food delivery personnel, and coffee shop baristas.
So what are the possible reasonings? According to Ted Rossman, a senior industry analyst at Bankrate, the current state of high inflation and economic uncertainty may be contributing to a decrease in tipping frequency or amount among Americans. Additionally, there has been a negative response to the increasing use of technology, such as iPads, which provide pre-set tipping options.
Where do you fit in? There exist variations in tipping practices and attitudes when segmented by generation or income bracket. In various categories, individuals belonging to the millennial and Gen Z age groups, as well as men, exhibit a higher tendency to provide lower tips or none at all. On top of that, A significant proportion of millennials (21%) and Gen Z (18%) express a preference for eliminating the practice of tipping altogether. While only 12% of Baby Boomers share the same sentiment.