Today in the Market (1/25/2024)

Good Morning! On Thursday, U.S. equities saw an increase, even with Tesla (TSLA) reporting disappointing profits and a higher-than-anticipated US economic growth figure. How much? The Dow Jones finally gained momentum and ended the day up 0.64%, followed by the S&P 500 continuing to hit new highs by increasing 0.53%, the Nasdaq rose by 0.18%.

 

IT'S ON THE HOUSE

The fast-casual restaurant Chipotle (CMG) has unveiled additional employee benefits related to both financial and emotional well-being. These advantages are aimed at strengthening the workforce during the busiest period of the year, known as burrito season. During the period from March to May, there is a high demand for carne asada among customers, prompting Chipotle to seek the recruitment of 19,000 more employees. This represents a 27% increase compared to the recruiting goal set in the previous year.

So what benefits will employees be receiving? The company intends to provide workers with six complimentary sessions with a mental health specialist. Contribute up to 4% of an employee’s income to their 401(k) if they are making payments towards their student loans. Provide access to Cred.ai, a Visa credit card specifically intended to assist users in establishing credit, as well as SoFi, a personal financial portal.

Will this help? The restaurant sector has always had challenges recruiting and retaining young employees. On top of that, Chipotle is facing the challenge of increased labor expenses. Following the state’s decision to raise the minimum wage from $15.50 to $20 per hour, prices in California saw a surge last year.

 

DO YOU HAVE A WARRANT?

Home security and smart home device company Ring said it would no longer enable the easy access of doorbell video to law enforcement. Instead, authorities must get a warrant or subpoena to obtain the requested footage. But how was it before the change? The Neighbors app, automatically included for Ring customers upon purchasing the security camera, lets law enforcement authorities use a “Request for Assistance” feature to ask consumers to provide video footage willingly.

What helped make this change? Ring has consistently generated criticism about privacy as a result of its collaborations with several police agencies around the U.S. Privacy activists have raised concerns about the program and Ring’s Neighbors app, stating that it has increased the likelihood of racial profiling and transformed citizens into informants. They argue that there are insufficient restrictions on how law enforcement may use the collected information.

So why now? Ring has announced a change in its goals for the Neighbors app, focusing more on promoting positive activities such as sharing entertaining videos.

 

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