Look out, below

MARKETS

• Energy: We’ll survey the wreckage in the stock market in just a bit, but for now we’ll leave you with oil tumbling on fears that the economic rebound could take longer than anticipated.
• Jobless claims: It’s been the same story for a few weeks now. First-time unemployment claims decreased to 1.5 million last week, but that’s still an egregiously high number.

CORPORATE

Black Lives Matter Reckoning Reshuffles the C-Suite

The past week has brought one of the biggest shifts in corporate leadership since #MeToo. High-level executives have left their corner offices as complaints of mistreatment of black workers, and other troubling behavior, come to light in a newly charged environment around racial justice.

No industry is safe from problematic execs

In media: You can now add “former” before the following people’s titles: Bon Appétit Editor in Chief Adam Rapoport, NYT Opinion Editor James Bennet, founder of the fashion site Man Repeller Leandra Medine, and Refinery29 Editor in Chief and cofounder Christene Barberich.

In retail: Yael Aflalo, founder of the sustainable clothing brand Reformation, posted on Instagram that she had “failed” after a former general manager for the brand posted that women of color were “overlooked and undervalued.” Founder of stationery brand Ban.do Jen Gotch resigned as chief creative officer after acknowledging she was “guilty” of being racist.

In fitness: When CrossFit dragged its dumbbells in releasing a statement supporting the protests, gyms began cutting their affiliations with the company. But it didn’t end there: CEO Greg Glassman posted offensive tweets about George Floyd, after which brand partners bailed and Glassman resigned.

In coworking: Audrey Gelman, CEO of women-focused coworking business The Wing, announced her departure yesterday. Rumblings of a toxic culture for women of color had been growing since March—then lockdown restrictions hammered revenue and forced mass layoffs.

• In October, Gelman became the first visibly pregnant woman to cover a business magazine when she appeared on Inc.’s cover.

This is Major Challenge No. 2 in a matter of months

“Just like businesses have to change their realities following COVID-19, they have to do the very same in the era of Black Lives Matter,” writes Marker.

Bottom line: In many of these instances, the alleged problems weren’t just about toxic behavior, they were about hypocrisy. Companies like Refinery29, Reformation, and The Wing talked a big game about supporting people of color, but employees said that didn’t extend to their internal policies.

MARKETS

Investors This Week

All the Buzz Killingtons who predicted the recent stock market rally was a charade were proven correct yesterday, as the Dow took its biggest tumble since March and the broader market sold off in epic fashion.

What happened: We wrote earlier this week that when individual investors send shares of bankrupt companies skyrocketing 100%+ in a single day...it’s a worrying sign for valuations.

But yesterday’s sell-off may reflect deeper worries that spiking COVID-19 cases in some U.S. states will derail the economy’s rebound.

• Florida, one of the earlier states to partially reopen its economy last month, reported a record-high 1,698 new coronavirus cases yesterday. Huge states such as California and Texas also have rising caseloads.
• In his remarks Wednesday, Fed Chair Jerome Powell dashed hopes that a V-shaped recovery was possible.

Bottom line: The market tumble + a higher number of cases indicate early reopenings may have taken the economy two steps forward, 1.5 steps back.

REOPENING

June Waits Bring July Dates

Despite investors' heebie-jeebies, many companies are still targeting July as the month they'll pick up where they left off in March.

Sports: On July 8, Major League Soccer will return with a World Cup-style tournament. The NBA also expects to resume in Orlando, likely on July 30.

Entertainment: In its earnings report Tuesday, AMC said it plans to reopen 97% of its theaters in July after suffering a $2.2 billion net loss in Q1. Disneyland in California is slated to reopen July 17, but there’s a petition to delay it over health risks.

Auto: Ford plans to bring its plants back to pre-pandemic production rates by July 6. Many U.S. carmakers resumed operations May 18, but at partial capacity.

Also happening in July...

Pharma: Johnson & Johnson will begin testing its coronavirus vaccine on people, and Moderna will conduct the final-stage clinical trial of its version.

The big question: Will new waves of COVID-19 infections disrupt any of these plans? Treasury Secretary Steven Mnuchin told CNBC yesterday, "We can’t shut down the economy again."

SOCIAL

Snapplay Has a Good Ring to It

At a virtual partner summit yesterday, Snap redug its trenches in the mobile app battlefield. Will those moves be enough to put it back in Kylie’s good graces?

Entertainment: Snap announced expanded deals for short-form content with Disney, ViacomCBS, NBCUniversal, the NBA, and the NFL.

• Snap reaches more U.S. consumers ages 13–34 than Facebook or Instagram—making it attractive to organizations like the NFL that want to hook young fans.

Gaming: 100+ million users have played Snap’s in-app games since last year’s launch. Snap is now partnering with game developer Zynga for multiplayer games.

Integrations: Yesterday’s really interesting announcement was “Minis,” a developer platform that lets third parties run applications in Snap’s app. Users can coordinate Coachella plans with friends, buy movie tickets, or meditate together.

• Sound familiar? Chinese superapp WeChat hooked over 1+ billion users with a combination of social and payment features.

+ While we’re here: CEO Evan Spiegel defended his company’s decision to stop promoting President Trump’s account in its Discover page, saying Snap is "well within" its First Amendment rights.

ENTERTAINMENT

Annnnnd...Action!

Despite rising COVID-19 cases, Los Angeles County is moving into stage three of its reopening plan. That means today, Hollywood studios can resume production on TV shows and movies.

Here’s what will change for...

The cast: Actors might need to hit up Hermione and Ron for guidance on green-screen acting, because more sex and fight scenes will be filmed using CGI. There’ll be fewer close-contact scenes in general, too, which might be a more accurate representation of modern times anyway.

The crew: Fewer days and shorter hours could become the norm, both to limit in-person interactions and boost immune systems. The switch could stress studios’ budgets and viewers’ patience between Fast and Furious installments.

You: Live studio audiences are discouraged for now, meaning more laugh tracks and fewer chances to see SNL live. You also might see your first televised zits, since cast members will be DIY-ing their hair and makeup more often.

Takeaway: All these changes + COVID-19 PPE + higher insurance premiums = more expensive budgets, according to Tyler Perry and other execs Variety spoke to.

WHAT ELSE IS BREWING

• Instacart raised $225 million at a $13.7 billion valuation following a surge in business from coronavirus lockdowns.
• New apartment leases in Manhattan tanked 62% in May.
• Joe Biden, the presumptive Democratic candidate for president, called on Facebook to crack down on misinformation ahead of the election.
• Apple is launching a $100 million Racial Equity and Justice Initiative.
• Sony unveiled its new PS5 console and a lineup of big-name games yesterday.

FRIDAY PUZZLE

Which U.S. state shares no letters in common with its own capital city?

FRIDAY PUZZLE ANSWER