Better than Woodstock

MARKETS

• U.S. markets: The S&P heads into Monday after posting its worst weekly performance in nearly a month last week. What's giving markets October blues? Rising interest rates.
• World: In Brazil's presidential election, far-right candidate Jair Bolsonaro won the first round pretty handily. But since he didn't surpass 50% of the votes, there will be a run-off on October 28.

BIZ IN D.C

What Kavanaugh's Appointment Means for Business

Brett Kavanaugh was sworn in as a justice on the U.S. Supreme Court on Saturday. It concluded a dramatic, hyper-partisan, and emotional nomination process that saw Kavanaugh accused of sexual assault by multiple women.

And while we'll leave the massive political implications for the D.C. insiders to discuss, there are plenty of consequences for the business world.

High-level, what Kavanaugh's appointment means: He'll probably move the court to the right. The judge he replaced, Anthony Kennedy, was seen as a "swing vote," meaning he sided with both conservatives and liberals on various decisions.

Kavanaugh's got less swing in his step...and that's likely what corporate America wants to hear.

Taking stock of Kavanaugh's previous business rulings

• The Consumer Financial Protection Bureau: The CFPB is a consumer watchdog created during the Obama years in the wake of the financial crisis. Kavanaugh has considered its structure unconstitutional.
• Workers' rights: Kavanaugh's often found himself on the side of employers. In one high-profile case, Kavanaugh defended SeaWorld against the Labor Department after one of its trainers was killed by an orca (if you've seen the documentary "Blackfish" you know what we're talking about).
• Environmental regulations: We'll take our cue from SCOTUSblog, which writes that "Kavanaugh has largely, but not always, attempted to rein in Obama-era EPA regulations."

But here's one counterpoint: it may not have mattered who was appointed

In a piece for The Atlantic, two law professors argue that the Supreme Court has recently ruled on the side of corporations, regardless of the political leanings of its justices.

• One measure of that pro-business tilt? "The eye-popping success rate of the U.S. Chamber of Commerce, the self-proclaimed ‘Voice of Business.' The Chamber filed briefs in 10 cases this term and won nine of them."
• Those cases "limited protections for whistleblowers, forced changes in the Securities and Exchange Commission, made water pollution suits more difficult to bring, and erected additional obstacles to class action suits against businesses."

ECONOMY

This Stat Is Better Than Woodstock

For the month of September, the U.S. economy added 134,000 jobs—well below economist estimates of 185,000 and the smallest monthly gain in a year.

Still...we're now at eight straight years of job gains, plus September's unemployment rate fell to 3.7%. The last time unemployment was that low? December 1969.

Which got us thinking...what else was going on back in ‘69?

• More than 400,000 people attended the Woodstock Music and Art Fair.
• Boeing's iconic 747 took off on its first ever flight.
• The Dow finished the year around 800 points (it's currently at 26,447).
• General Motors topped the Fortune 500.
• Walmart officially incorporated as Wal-Mart Stores, Inc.
• Neil Armstrong and Buzz Aldrin became the first humans to walk on the Moon.

And to those of you whose parents say Coachella will never hold a candle to Woodstock, hit 'em with this quote from Glassdoor's Andrew Chamberlain to the NYT: "I view this as the strongest labor market in a generation...These really are the good times."

RETAIL

Retail’s Holiday Countdown Is On

No matter how much it pains you to hear "Jingle Bell Rock" on the radio before Thanksgiving, it's (literal) music to the ears of retailers...which need to make every second count during the run-up to the holidays. So what's the latest?

First up, Target's launching its long-awaited answer to discount competitors.

Meet Smartly, the new Target brand for consumer staples like dish soap, razors, and toilet paper. Most items are priced under $2.

"It's about showing people that I don't have to go to Aldi or I don't have to go to Dollar General to find what I'm looking for," Target's merchandising chief told the WSJ.

Next up? Forecasters give a reality check.

Next up? Forecasters give a reality check.

• In 2017, holiday sales topped $690 billion, up 5.3% annually. It was the biggest YoY gain since 2010.
• This year, the National Retail Federation expects holiday retail sales to grow 4.8% from last year (h/t to higher gas prices and tariffs as possible headwinds).

Countdown to Black Friday: 46 days.

ART

Banksy Wins the Weekend

And for today's lesson in sticking it to the man, we present Banksy.

What's going on in that GIF: A trademark painting—"Girl With Balloon"—from the mysterious British street artist appeared to shred itself at Sotheby's in London on Friday just moments after the work sold for $1.4 million at auction—a record price for one of Banksy's works.

And honestly, we shouldn't be surprised. Banksy is known for his stunts and his subversive art.

• Banksy posted a video to his own Instagram on Saturday, appearing to explain what happened. "A few years ago I secretly built a shredder into a painting...in case it was ever put up for auction," he wrote.
• By Sunday evening, the video had been viewed more than 7.2 million times.

Bottom line: Needless to say, this isn't a great look for Sotheby's. The FT ran a piece with the headline, "Banksy leaves credibility of art market in shreds." And for its part, Sotheby's hasn't disclosed the identity of the unlucky bidder but said it is “in discussions about next steps.”

+ Banksy's hardly the first artist to push the envelope: In 1985, Chris Burden installed a 100-ton jack connected to a gear box and a turnstile—which expanded the jack with each rotation. If enough people visited the exhibition, it could have theoretically destroyed the museum (h/t @mikkipedia).

CALENDAR

The Week Ahead

We hope you got some rest over the weekend. Earnings season is back.

Monday: Columbus Day; the Nobel Prize in Economics will be awarded

Tuesday: Leif Erikson Day; Google is announcing new products; the IMF will release its annual global growth outlook

Wednesday: World Mental Health Day

Thursday: CPI; jobless claims; G20 finance ministers meet in Bali; earnings (Walgreens, Delta Air Lines)

Friday: Annual meetings of the IMF and World Bank; earnings (Citigroup, JPMorgan, PNC, Wells Fargo)

WHAT ELSE IS BREWING

• The U.S. Department of Homeland Security stood behind tech firms in their denial of
• Businessweek's report that Chinese spies had infiltrated their supply chains.
• Amazon has fired an employee who shared some customers' email addresses with an outside seller on the platform.
• China's central bank implemented a new policy that will cut the amount most banks are required to hold as reserves in an effort to spur growth.
• Mattress Firm, the largest mattress seller in the U.S., filed for Chapter 11 bankruptcy.
• Box office record alert: Two strong showings from new releases Venom and A Star Is Born pushed movie ticket sales to an October record of $174.5 million for the weekend.

BREAKROOM

From the Crew
Cc: Alex Trebek—One reader emails us, "I have to say, getting the answers right to the weekly news quiz is even more satisfying than getting a final Jeopardy answer."

If you're new here, we run a quiz every Friday that tests how well you remember the news of the week. So be sure to read these newsletters closely...the competition is fierce.

Business Trivia
Which northeastern U.S. city is home to 62 public companies with a combined market value of about $170 billion (the majority of them biotechnology firms)?

(Answer located at bottom of newsletter)

Breakroom Answers