Newsletter Mar 12, 2021

Hours after signing the American Rescue Plan, President Joe Biden took to national TV to say that help is on the way. But at what cost? $1.9 trillion.

3 Things
  • Primetime Joe: President Joe Biden addressed the nation Thursday night to tout the signing of his $1.9 trillion relief bill that Congress passed earlier this week, and to encourage struggling Americans to stay tough, stick together, and stand vigilant against the coronavirus.

    Biden broke some news and set some lofty goals for the nation to heal. He announced that there would be enough vaccines to inoculate the entire American adult population by May 1, and he pledged a ramped-up effort to reopen schools. Biden also circled July 4 as a fitting target date for a return to normal.

    Speaking one year after the country went on lockdown to prevent the spread of the deadly virus, Biden remembered the more than 527,000 lives lost and the millions who lost their livelihoods. But he also encouraged struggling Americans to stand tough, stick together and stay vigilant against the virus as the country hits the home stretch on the road to a full recovery.

    Biden assured Americans that help is on the way in the form of the $1,400 stimulus payments that should arrive this month, the $300 a month extension of federal unemployment benefits, and other programs designed to get the economy back on track. He warned that America is not out of the pandemic woods yet, but promised brighter days ahead.

    WATCH SOME OF THE HIGHLIGHTS FROM BIDEN'S ADDRESS

  • Now what?: As he repeatedly pledged during the presidential campaign, Biden’s top priority was passing a massive relief package. Now that he can cross it off the top of his agenda, what’s next on his to-do list?

    By no means is his work against the pandemic done, but the bill’s passage does allow him to address some other pressing matters facing the country. Although he didn’t mention it in his speech, a veteran politician like Biden knows it’s time to do some fence-mending in Congress.

    Biden expended a lot of political capital in making the deal, and he still couldn’t sway a single Republican to cross the aisle and support the legislation. Now he must find a way to bridge the huge gap between Democrats and Republicans (can we make a vaccine for that?)

    Biden seeks some common ground with GOP members on infrastructure, while fellow Dems are pulling him back to the left with more social reform bills. How well he can navigate the impending political pitfalls will go a long way toward determining the success of his presidency and our democracy.

    FIND OUT BIDEN’S FUTURE PLANS BEYOND THE PANDEMIC

  • Rapid response: Biden hadn't even signed the American Rescue Plan before good news started rolling in on the job front, but he can't credit his $1.9 trillion bill for the numbers that run through March 6.

    The latest report shows new applications for unemployment dropped to a level not seen since November. There were 712,000 seasonally adjusted new claims for unemployment benefits filed last week, a drop of 42,000 from the prior week's total. Another 478,001 claims, not seasonally adjusted, were received under the Pandemic Unemployment Assistance program benefiting freelance workers. That brought the total new claims field last week to nearly 1.2 million.

    Despite the encouraging trend, the economy is still about 10 million jobs short compared to a year ago. However, the relief bill is expected to start closing those gaps as vaccinations help the country get back to normal and small businesses get aid to reopen soon.

    SEE WHY JOBLESS CLAIMS ARE TRENDING DOWNWARD

Markets
DJIA 32,485.59 0.58%
S&P 500 3,939.34 1.04%
Nasdaq Composite 13,398.67 2.52%
Japan: Nikkei 225 29,717.83 1.73%
UK: FTSE 100 6,711.95 -0.37%
Crude Oil Futures 65.70 -0.48%
Gold Futures 1,702.60 -1.16%
Yen 109.08 0.53%
Euro 1.19 -0.43%
* As of market close

Cookies crumble

Google made good on its plan to go on a crash cookie diet, announcing it will no longer use the tracking software to target users for advertisers by 2022.

In its place, Google is introducing its new profiling system that will identify users as members of groups rather than relying on direct personal data. Users will have the option to turn off the tracking function to address privacy concerns created by cookies.

Lawmakers have been licking their chops to break up big tech over privacy issues, so Google is hoping this new system will avoid regulation. Google claims the profiling system is at least 95% as effective as third-party cookies, but advertisers, users and regulators have concerns.

The move signals an inevitable death knell for cookies as Google controls about two-thirds of the web browser market. Mozilla's Firefox and Apple's Safari also have dropped the use of cookies, so they will soon grow stale.

FIND OUT WHAT WILL HAPPEN AFTER THE COOKIES CRUMBLE


Market madness

Global markets are reacting positively to the new stimulus bill and other international financial news, prompting a record day of trading both in the U.S. and throughout Europe.

In addition to Biden's signing of the American Rescue Plan, the European Central Bank accelerated its stimulus bond buying to push U.S. and European stock markets higher on Thursday. Investors took the developments as a signal to get in while the getting's good.

"We have so much good news about to hit us for the next two years, that any pullback is probably an opportunity," one analyst said..

Another analyst compared the market reaction to investors having a bad case of FOMO -- "fear of missing out" -- on a great time to buy.

Whatever the cause, the Dow Jones Industrial Average and S&P 500 closed at record highs, as did the Frankfurt DAX in Germany. In France, Paris's CAC 40 also set a new one-year high as several Asian markets, like the Shanghai Composite, also saw major gains.

WHAT'S FUELING FINANCIAL GAINS ON GLOBAL MARKETS?


Zooming Zillow

The real estate market continues to sizzle as Zillow announced on Thursday that it plans to enlarge its employee rolls by over 2,000 people, or about 40% over the current level. It will do this with a nationwide hiring binge aimed at drafting new workers in a variety of roles.

In its announcement, Zillow pointed out that many of the open positions are either remote-work or hybrid jobs. The company didn't hesitate to claim that it was one of the first to offer an extended work-from-home option for scores of its employees during the pandemic.

As for the current job openings, potential applicants can view these and apply at Zillow's careers site. The company said that the new hiring push is "sparked by a year of impressive growth across the business and a historic year in the real estate industry."

GET THE LOWDOWN ON ZILLOW'S EXPLOSIVE GROWTH


Tough cookie

Google is phasing out high-tech cookies, but we're thinking about the real deal. What was the first commercial cookie sold in the U.S., and what year did they launch?

(Thursday's answer: "The Jetsons" maid was named Rosie and she contained the persona of George's 124-year-old grandmother.)

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