🚀 Retailers Expecting DEI Backlash

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Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Retailers are treading cautiously on DEI policies ahead of the holiday season and the 2024 presidential election, fearing backlash from consumers across the political spectrum. Many are limiting public DEI displays and backing away from events or partnerships that could invite criticism, as recent controversies with brands like Bud Light and Target have made some retailers wary of alienating customers. Industry insiders say there's a heightened sensitivity to "optics," especially in a politically charged climate, prompting some companies to pull back on DEI initiatives or even eliminate DEI roles. A survey by AlixPartners found that DEI messaging resonates less with younger consumers than assumed, with only 45% of millennials and fewer Gen Z consumers deeming it highly important. Experts suggest that while overt DEI messaging may be muted, maintaining diverse perspectives in product design and service remains essential to align with varied consumer needs.

2. Berkshire Hathaway's cash reserves hit a record $325.2 billion in Q3 as Warren Buffett continued to shed stocks, notably selling portions of Apple and Bank of America. This marks the fourth quarter of downsizing his Apple stake and follows over $10 billion gained from selling off Bank of America since July. Overall, Berkshire sold $36.1 billion in stock in Q3, with no repurchases of its own shares as Buffett held off, considering Berkshire's intrinsic value. The conglomerate’s operating earnings slipped 6% due to weaker insurance underwriting, while Class A shares are up 25% year-to-date, surpassing the S&P 500's 20.1% return. As interest rates tick back up and fiscal deficit concerns grow, Buffett’s caution on tax rates and stock holdings reflects a broader strategy amid fiscal and economic uncertainty.

3. After more than seven weeks on strike, Boeing's 32,000 unionized machinists will vote on a revised labor deal Monday, marking their third vote since the walkout began on September 13. Boeing's latest offer includes a 38% raise over four years—up from the 35% raise rejected last month but still shy of the union's original demand of 40%. With the ongoing strike halting much of Boeing's production and the cost of living rising in Seattle, union leaders warn this deal may be as good as it gets. Boeing, which has raised over $20 billion to weather the disruption, is urging workers to accept the deal and return to production. CEO Kelly Ortberg emphasized the importance of resuming work to rebuild the company's operations.

4. Headlines

   1. The head of OPEC is confident that oil prices will continue rising despite global efforts to reduce consumption.

   2. Treasury yields are down ahead of the US election.

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Liam Gill