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American companies are hiring... October 05, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( Presented By [Pendulum]( Good morning. It’s the first weekend when Halloween decorations will compete for space with political signs on many front lawns. And while everyone has their differences, it’s important that we all unite against the people whose decor includes motion-activated jump scares. —Matty Merritt, Dave Lozo, Molly Liebergall, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 18,137.85 +1.22% S&P 5,751.07 +0.90% Dow 42,352.75 +0.81% 10-Year 3.981% +13.0 bps Bitcoin $62,331.96 +2.58% Spirit $1.69 -24.55% Data is provided by *Stock data as of market close, cryptocurrency data as of 6:00pm ET. [Here's what these numbers mean.]( - Markets: Stocks [soared]( yesterday despite concerns about geopolitics after new government data showed companies were hiring in full force last month. One that didn’t take flight was Spirit Airlines, which sank to a record low (we’ll tell you why below).  ECONOMY [September job growth exceeded expectations]( [Map of US with “We’re Hiring” sign hung on Maine.]( Parsons Powell: prepare the Papa John’s coupons, because the Fed has never been closer to getting that soft landing pizza party. September’s jobs report [lapped]( expectations yesterday, adding 254,000 jobs compared to the 150,000 Wall Street predicted in the latest sign that the economy is holding strong. Some other highlights: - The unemployment rate fell 0.1 percentage point to 4.1%. - The underemployment rate (for people working part-time but who want to be working more and so-called “discouraged workers”) also dropped for the first time in about a year. - The biggest employment gains last month came from sectors like hospitality and construction, and hourly pay inched up about 0.4%, which if you zoom out, means wages are up 4% compared to a year ago. Plus, August’s revised jobs report showed the US actually created 159,000 jobs, up from 142,000 initially reported last month. What this means for the Fed Last month, Jerome Powell [announced]( a whopping half-percentage-point interest rate cut after four years of keeping rates high to avoid pushing inflation even higher. The big cut came after this year’s rising unemployment rate had him worried that without some substantial moves, things could get worse. Now, September’s stellar jobs report means the Fed is less likely to make deep cuts during its next few meetings, especially in November. Smaller rate cut expectations are already kicking in. Treasury yield rates soared yesterday, and the average 30-year fixed mortgage rate jumped 27 basis points to 6.53%. Both are extremely sensitive to anything that could affect the Fed’s rate decisions, and the great jobs numbers mean the Fed might not have to cut rates as aggressively as previously expected. Looking ahead…An A+ jobs report with unemployment declining (plus the economic threat of the port strike abating) this close to election day could provide a nice bump for Vice President Kamala Harris since many voters have questioned the current administration's handling of the economy.—MM Presented By Pendulum [Heard of the “un-hunger” hormone?]( [Pendulum]( Top doctors from Johns Hopkins, Harvard, Berkeley, and Stanford—talk about a meeting of minds—have come together to create Pendulum’s [GLP-1 Probiotic](. It’s a breakthrough supplement designed to boost your body’s production of the “un-hunger” hormone, GLP-1.* This [unique blend of beneficial bacteria]( helps curb cravings and suppress appetite for anyone battling constant food thoughts—candy corn, we’re lookin’ at you. The results? A survey of 274 consumers found that 91% experienced a decrease in overall food cravings, with significant drops in sugar (88%) and carb (87%) cravings specifically. Yep, the leaves aren’t the only thing that’s turning. The tide is also turning on a probiotic’s possibilities. More good news: You can get [20% off your first month of a Pendulum membership here]( (discount applied at checkout). WORLD [Tour de headlines](#) [Joe Biden at a press briefing]Andrew Harnik/Getty Images Biden has discouraged Israel from attacking Iran’s oil as prices rise. After inadvertently spiking oil prices Thursday by saying he was in discussions about an Israeli strike on Iran’s oil infrastructure, the president [said]( yesterday that the Israeli government had not yet decided what to do, and, “If I were in their shoes, I’d be thinking about other alternatives than striking oil fields.” The remarks came as oil prices had their biggest gains this week since early 2023. They were also part of the first press briefing Joe Biden has attended as president, where he [surprised]( reporters and touted the strength of the US economy. Meta’s got a new AI video generator. Looking to rival tech like OpenAI’s Sora and the one that made this questionable Miyazaki [knock-off]( Meta [announced]( Movie Gen yesterday, an AI model that creates realistic-looking videos with sound and audio clips. The addition of sound in a text-to-video AI system is noteworthy, and Movie Gen can also edit existing footage based on text prompts. But don’t get too excited—the new model isn’t available to the public yet. 🏛 SCOTUS to decide whether Mexico can sue gunmakers. The Supreme Court, which begins its new term on Monday, has [agreed]( to weigh in on whether or not the Mexican government’s $10 billion lawsuit over cartel violence can proceed. US gun manufacturers, including Smith & Wesson, Beretta, Colt, and Glock, are trying to get the high court to toss the case. The lawsuit was revived by an appeals court after a trial judge found that it was blocked by a 2005 law that gives firearm companies broad immunity. The suit alleges that at least 70% of guns found at Mexican crime scenes are American-made.—AR AVIATION [Spirit Airlines sees bankruptcy on the radar]( [A Spirit Airlines plane]( Carter/Getty Images Spirit Airlines—the preferred choice among budget-conscious travelers who find hidden fees charming—is exploring the possibility of filing for [bankruptcy]( although Chapter 11 is not imminent, per the Wall Street Journal. - This isn’t necessarily the end for Spirit. By potentially reorganizing its $3.3 billion debt load, it could [follow]( in the jet streams of fellow air carriers Scandinavian Airlines and Delta that declared bankruptcy in the past and eventually recovered. The immediate concern: Spirit’s debt load includes $1.1 billion worth of secured bonds due within a year that have an Oct. 21 deadline to be extended or refinanced. Spirit’s turbulent 2024: It began with a federal judge striking down a $3.8 billion merger with JetBlue due to antitrust concerns in January. It has continued with Spirit furloughing 186 pilots, grounding a portion of its fleet due to an engine recall, and abandoning dozens of routes planned for November and December. Spirit’s stock plummeted after news of the possible bankruptcy broke and is down nearly 90% YTD. The turbulence isn’t new: While other airlines have found ways to recover from the pandemic downturn, Spirit hasn’t—the airline reported its 11th consecutive quarterly loss in August.—DL Together With LaserAway [LaserAway]( Tired of the daily struggle with razors? LaserAway gets it. With their proven expertise and state-of-the-art technology, you can now experience life without the hassle of shaving. Plus, for the next few weeks, [LaserAway’s Ditch the Razor campaign]( means you can buy one area and receive one free, subject to offer terms. [Check it out today](. BIG TECH [A pizza order protects Uber from a car crash lawsuit]( [Uber sign on a car]( City Image/Getty Images When you absentmindedly hit “agree” to an app’s terms & conditions, you might be signing over more than you think: A New Jersey couple that got T-boned during an Uber ride is “surprised and heartbroken,” outlets [reported]( this week, after an appeals court said an arbitration clause in the terms for using Uber Eats barred them from suing Uber. For context: John and Georgia McGinty filed a lawsuit saying their Uber driver went through a red light and crashed, causing the couple to sustain long-term injuries and to miss work. Two months prior, their 12-year-old daughter agreed to the Uber Eats T&Cs when using her mom’s account to order pizza. So what? A state appeals court ruled that the arbitration clause the child unknowingly agreed to—which mentions settling “disputes concerning auto accidents or personal injuries” outside of court—applied to her parents’ crash. Uber also said the McGintys had already agreed to other T&Cs in their rideshare account that contained arbitration language. Arbitrators are generally perceived as more sympathetic to companies than juries, and arbitration allows companies to avoid embarrassing public trials. Zoom out: Disney pulled a [similar move]( this summer when it said Disney+ T&C protected its parks from a wrongful death lawsuit, but the company dropped the argument after harsh blowback.—ML STAT [Prime number: Stolen refunds](#) [A hand reaching into a mailbox]Emily Parsons Scammers are [making millions]( off a remarkably low-tech heist: stealing IRS refund checks out of the mail. They’re getting access to the funds because the tax agency is still putting lots of checks through the postal system like a grandma sending out birthday cards. More than 90% of US taxpayers opt to get their refunds via direct deposit, but the IRS nonetheless sent out ~10 million paper refund checks last year, per IRS data cited in the Wall Street Journal. To compound the problem, the IRS’s system won’t allow people who picked the paper check option to switch over to direct deposit, so in some cases, replacement checks are also getting pinched. There is a fix coming, but in typical government style, the IRS says it’s years away. Bottom line: “We strongly urge direct deposit. It’s the fastest and safest way for us to get taxpayers their refunds,” IRS Commissioner Danny Werfel said.—AR NEWS [What else is brewing](#) - [The Supreme Court]( cleared the way for Biden administration rules to curb methane and mercury emissions, declining to block the EPA regulations while litigation over them proceeds. - [Stellantis]( the struggling parent company of Jeep and Chrysler, has sued the United Auto Workers union for threatening to strike. - [The EU]( will slap 45% tariffs on Chinese electric vehicles, a plan that was hotly contested among its member states. - [Los Angeles prosecutors]( said they would review the Menendez brothers’ high-profile 1996 conviction and prison sentence for murdering their parents in light of new evidence potentially pointing to abuse from their father. RECS [Saturday To-Do List graphic] Go vintage: [This website]( celebrates the chrome logos of old cars. Map it: Where America’s [richest people live](. Feed Fido: Fast-food restaurants with [dog menus](. Travel tip: Japan now has a [Nintendo Museum](. Banish bedroom anxiety: MysteryVibe’s [Tenuto 2]( is the only doc-recommended vibrator clinically proven to combat ED—and give both partners a climactic finish. [Get 25% off]( *A message from our sponsor. GAMES [The puzzle section](#) Brew crossword: You’ll need to fill in the ____ to complete today’s crossword puzzle. [Play it here](. Open House Welcome to Open House, the only newsletter section splitting its time between three piers. We’ll give you a few facts about a listing and you try to guess the price. [Vermont mansion on sprawling estate with six extra homes.]Zillow Today’s [massive estate]( called “Grosse Pointe” doesn’t even have to worry about the neighborhood kids making fun of its name because it is the neighborhood. Grosse Pointe sits on 343 acres of land in Vermont and contains seven different homes, including a 10,000-square-foot main house. Amenities include: - 11 beds, 9 baths - Private golf course - A quick swim to the watery New York border How much for the sprawling property? SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER $23 million Word of the Day Today’s Word of the Day is: arbitration, meaning “the hearing and determination of a disputed case by an arbiter.” Thanks to Annabeth Allison from Lubbock, Texas for the even-handed suggestion. Submit another [Word of the Day here](. ✢ A Note From Pendulum *Based on preclinical studies. Written by [Neal Freyman]( [Abigail Rubenstein]( [Matty Merritt]( Dave Lozo, and [Molly Liebergall]( Was this email forwarded to you? Sign up [here](. 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