JOBS

So How Was the September Jobs Report?

The U.S. economy added 661,000 jobs last month, and the unemployment rate dipped to 7.9% from 8.4% in August.

What it means: The rate of the recovery in the labor market is slowing down. This was the first jobs report since April that showed net hiring below 1 million new jobs.

The slowdown is not exactly a surprise. Economists know the unemployment rate is a lot like your gym routine—easily knocked off track and sluggish to return to full strength. Take these stats, for example: 

• More than half of the jobs lost in March-April have now been recovered, but that means there are still 10.7 million fewer people with jobs than before the pandemic.
• At the current rate, it would take 16 months to recoup all those jobs...but as we just mentioned, the hiring pace is slowing down. 

Big picture

This jobs report capped off a week in which big corporate names announced drastic reductions to their workforces:

• Disney cut 28,000 workers at its slumping resorts.
• United and American Airlines began to furlough 32,000 employees after stimulus discussions stalled.
• Other blue-chip companies, including Allstate and Goldman Sachs, also announced layoffs.

These moves show that the coronavirus is still crimping growth nearly seven months after initial shutdowns. With most of the emergency aid from March spent by now, businesses will increasingly look to the government to ensure the recovery doesn’t completely stall out.

STOCKS

Stocks Drop, Stop, Then Roll

When President Trump tweeted that he and Melania had tested positive for COVID-19 the world nervously eyed the financial markets to see how they would react. 

It was ugly, initially

Early Friday morning, U.S. stock futures, which often show how the market will move before it opens, dropped. 

• Why? Investors don’t like uncertainty, and even though First Lady Melania Trump said she and her husband were feeling good, no one knew how severe the president’s illness was. 

But as the shock of the news faded, the market began to recover after the White House said President Trump was experiencing mild symptoms and felt “energetic.” The Dow and S&P 500 finished the day with only marginal losses. 

The mini-rebound was also fueled by comments made by House Speaker Nancy Pelosi, who signaled a standalone House bill providing aid for struggling airlines could be coming soon. Whether it’s part of a broader relief package or not is unclear, since Republicans and Democrats remain far apart on the size and scope of the relief efforts. But Pelosi said yesterday there was reason for optimism.

Looking ahead...Trump’s health introduces a huge layer of uncertainty into what was already a volatile election cycle.

SOCIAL MEDIA

Facebook Hands Out a 10% on the Tomatometer

For most people, the hardest part of watching the Netflix documentary The Social Dilemma is fighting off the urge to check the very platforms the doc is criticizing.

For Facebook, the stakes were higher. The company responded to the documentary yesterday in a blog post, arguing the film “gives a distorted view of how social media platforms work to create a convenient scapegoat for what are difficult and complex societal problems.” 

The post rebutted claims made by The Social Dilemma that 1) its users are the product, 2) the platform helps spread misinformation, and 3) its algorithms are sinister in any way.

Why is Zuck doing movie reviews?

The Social Dilemma, which was among Netflix's top 10 most-watched shows in September, attacks social media companies for irresponsibly manipulating their users. Facebook is also implicated by the documentary for its role in election interference, ethnic violence, and increased rates of depression and suicide.

Bottom line: With lawmakers circling, FB is trying to win in the court of public opinion...one strongly-worded blog post at a time. 

SPONSORED BY ATHLETIC GREENS

Fernando Marathano’s Secret Supplement

(Fernando Marathano is a very real superathlete we definitely didn’t make up.)

Fernando Marathano has held pilates sessions on the moon—without oxygen. He has circumnavigated the globe—swimming backstroke.

When asked about his secret, he replied two words: “Athletic Greens.”

It makes sense that Athletic Greens helps Fernando Marathano go the extra mile, because Athletic Greens is so much more than a multivitamin. Where most multivitamins stop, Athletic Greens gets going—adding probiotics, prebiotics, superfood green blends, and more.

Do you think Fernando Marathano has time to stress about gaps in his diet? No. You shouldn’t either. Athletic Greens gives you daily immune support, gut health, increased energy and the most comprehensive nutritional formula all in one scoop.

What does Fernando Marathano plan to do with Athletic Greens’ help next? Run from Hawaii to San Francisco, he says. (But first, he’s gonna build the bridge himself.)

For added immunity support, Brew readers get a full year supply of Vitamin D free with their first Athletic Greens purchase here.

LOGISTICS

Uber’s Freight Arm Rai—

Sorry, gonna have to stop you mid-headline. Uber has a freight arm? Yes? Okay, go on.

Yesterday, Uber said it received a $500 million investment in its freight business from Greenbriar Equity Group. The unit is now worth a meaty $3.3 billion.

But what does it do? Uber Freight acts as a digital brokerage that connects shippers and long-haul truckers in the deeply fragmented world of logistics. It’s not a huge part of Uber’s overall business, but at 9.4% of the company’s total revenue, it’s not peanuts.

• Plus, it’s growing (+27% annually last quarter) at a time when Uber’s ride-sharing bookings have shrunk due to the pandemic. The company’s other fast-growing unit, Uber Eats, is now bigger than Rides.    

Looking ahead...this investment allows Uber Freight to extend its runway “indefinitely,” according to Freight Waves, as well as implement new tech and expand into new markets.

EDUCATION

School Photos

In the past few months, schools that had been shut down due to Covid-19 have cautiously reopened for in-person instruction. This being a pandemic and all, they’re following strict safety protocols, introducing face masks and temperature checks into a sea of black JanSports. 

We put together a photo gallery of fascinating pandemic-era school scenes in 13 different countries. Check it out. 

WHAT ELSE IS BREWING

• Tesla delivered an impressive 139,300 vehicles last quarter, topping expectations.
• Walmart agreed to sell its British supermarket chain, Asda, for $8.8 billion. 
• Airbnb is aiming to raise $3 billion in an IPO that could come in December, reports Reuters. 
• The Tokyo Stock Exchange resumed operations Friday after suffering its worst outage in history Thursday.
• SNL returns for its latest season tonight. Chris Rock is hosting and Megan Thee Stallion is the musical performer.

SPONSORED BY HPE

Distributed denial-of-service (DDoS) attacks threaten your data, revenue, and brand—and amid the pandemic, the need to step up protections has never been greater. During a DDoS attack, online services can be slowed down or completely stopped. This type of disruption can drive customers away and potentially cost millions of dollars per minute of downtime. Organizations should follow this three-pronged approach to prepare for and mitigate DDoS attacks.

BREW'S BETS

Improve your writing: Brew grammar guru Eliza Carter teaches you how to avoid clichés in this hilarious piece. It’s a must-read before you draft your new cover letter this weekend. 

Saturday conversation starters:

• The Social Network came out ten years ago...what were you like on social media in 2010?
• What’s an unsexy business that’s crushing the game?
• Are neck gaiters effective at fighting the spread of Covid-19?

SATURDAY HEADLINES

We all know that bird is the word, but sometimes words about birds aren't quite true. Three of these avian-themed headlines are legit, while one isn't real. Can you spot the fake?

1. “Do crows possess a form of consciousness?”
2. “Parrots were removed from a UK safari park after teaching each other to swear and then laughing about it”
3. “Cheating birds mimic host nestlings to deceive foster parents”
4. “Swans with brains 1/300 the size of orangutans’ pass the same IQ test”

SATURDAY HEADLINES ANSWER

Swans, while lovely to look at, aren’t known for their powerful intellect.