Disney loses “magic”, Twilio layoffs and more: 5 things to know about Monday

Here are the key events that will take place on Monday which could impact trading.

NOT SO MAGICAL KINGDOM: According to a recent study, most “Disney World fans” say the Florida theme park has “lost its magic” due to skyrocketing costs.

A study by the gambling website Time2play surveyed 1,927 “Disney World fans” and of these, 68.3% reported that the price increase makes them feel as if the theme park has “lost its way. its magic “. A whopping 92.6% reported that they felt the park’s high costs made a vacation for the average family “out of reach”.

According to the study, a ticket to Disney World’s Magic Kingdom in 1971 was a total of $ 3.50. When adjusted for inflation, that would mean that tickets would be around $ 25.60 today. Instead, Disney World park tickets range from $ 109 to $ 159 per day, according to the study.

DISNEY EXPLORE SUBSCRIPTION PROGRAM AS AMAZON PRIME TO OFFER DISCOUNTS AND BENEFITS

General view of the rededication and debut moment of “Disney Enchantment” during “The World’s Most Magical Celebration” Walt Disney World Resort 50th Anniversary at Magic Kingdom on September 30, 2021 in Orlando, Florida. (Gerardo Mora / Getty Images / Getty Images)

Nearly 50% of respondents reported postponing a trip due to rising prices.

All in all, Disney World veterans can expect to pay 35.7% more for their next trip than their last, Time2play found.

A graph posted on social media last year by a researcher at SJ Data Visualizations, a UK-based company, shows that Disney World prices have risen by at least 3,871% since 1971, with prices rising more drastic in the early 1980s compared to its first decade.

Families talked about prices earlier this year as travel resumed after the coronavirus freeze and expressed shocks over price hikes. One in two fathers estimated that he would be hooked for a $ 4,000 to $ 5,000 bill, even with one of his children qualifying for free admission.

“I understand inflation and all of these things. I understand cost increases,” Kentucky father Matt Day told the Washington Post earlier this year about high prices. “I’ve always had the impression that Disney was a family vacation destination, and that impression is why I was surprised to see how expensive it really was and how out of reach for most American families.”

“It’s truly unprecedented,” Len Testa, president of the theme park travel planning site Touring Plans, told the Washington Post earlier this year. “We haven’t seen this kind of anger over price hikes – we can’t remember the last time something like this caused Disney fans so much anger.”

‘ANTI-RACISTS’, ‘ANTI-OPPRESSION’ dismissals: Twilio CEO Jeff Lawson announced in a message to all employees that 11% of his workforce would be fired, claiming he carried out the layoffs through an “anti-racist” and “anti-oppression” goal.

The CEO of the San Francisco-based corporate communications firm said in the message to employees that the layoffs are “wise and necessary.”

“I’m not going to sweeten things up. A layoff is the last thing we want to do, but I think it’s wise and necessary. Twilio has grown at an amazing pace over the past couple of years. He’s been too fast and not focusing enough on ours. top business priorities. I take responsibility for those decisions, as well as the difficult decision to make this layoff, “said Lawson.

In determining which roles would be affected by the layoffs, Lawson said company officials looked at which roles were most aligned with his four priorities, but said the layoffs were done through an anti-racist lens.

TWILIO CUTTING OF 11% OF THE WORK FORCE IN RENOVATION

Twilio on a mobile phone and on a computer screen

In this photo illustration, the Twilio logo of a US cloud communication platform is displayed on the screen of a smartphone and a PC. (Pavlo Gonchar / SOPA Images / LightRocket via Getty Images / Getty Images)

“As you all know, we are committed to becoming an anti-racist / anti-oppression company,” wrote Lawson. “Layoffs like this can have a more pronounced impact on marginalized communities, so we have been particularly focused on ensuring that our layoffs – while today a business necessity – were done through an anti-racist / anti-oppression lens.”

Those who have been laid off will receive “at least” 12 weeks of pay and one additional week per year of service at the company. They will also receive the full value of Twilio’s next stock vest.

BAD ECONOMIC OUTLOOK: US equities closed lower on Friday as investors had to contend with corporate warnings that paint an increasingly dire outlook for the health of the US economy.

Last week, large corporations, including Goldman Sachs Group Inc., braced themselves to cut jobs, exacerbating fears of an impending recession.

FedEx warned Thursday that it is closing offices to compensate for falling demand, and General Electric said supply chain problems are weighing on profits. The news pushed shares lower, with the Dow Jones Industrial Average falling 139.40 points, or 0.5%, to 30822.42. The S&P 500 fell 28.02 points, or 0.7%, to 3873.33.

Over the week, the Dow lost 4.1%, while the S&P lost 4.8%.

The Nasdaq Composite was down 103.95 points, or 0.9%, to 11448.40. It fell 5.5% for the week, the worst since June. All three indices are down by four in the past five weeks.

Ticker Safety Last Change Change %
Me: DJI MEDIA DOW JONES 30822.42 -139.40 -0.45%
SP500 S&P 500 3873.33 -28.02 -0.72%
ME: COMP COMPOSITE INDEX NASDAQ 11448.403659 -103.95 -0.90%

The big moves are surprising given the way US equities appeared higher earlier this summer, climbing from their mid-June lows on the back of not-so-negative earnings as feared and some strong hiring data.

However, investors hoping the midsummer rebound was the start of a new bull market rally got a rude awakening when Tuesday’s data confirmed inflation remains stubbornly high.

Investors now predict that the Fed will have to continue to aggressively raise rates, which could lead the economy to recession.

INCREASE IN IMMINENT FED RATE ?: Futures betting shows that traders see a 76% chance that the Fed will raise interest rates by another 0.75 percentage points at next week’s meeting, according to CME Group.

Investors are also discounting another rate hike of the same amount in November.

The two-year Treasury yield is particularly sensitive to investor expectations for a short-term Fed rate hike. It stabilized on Friday at 3.859%, the second highest level of the year. It stabilized at its highest level since 2007 on Thursday.

The benchmark 10-year Treasury yield also declined slightly, to 3.447%. Yields and prices move in reverse.

BILLIONAIRE RAY DALIO ADVISES STOCKS COULD FALL 20% IF INTEREST RATES RISE TO 4.5%

Federal Reserve Chairman Jerome Powell spoke

Jerome Powell, chairman of the Federal Reserve, speaks during a hearing of the House Financial Services Committee in Washington, DC on Thursday, June 23, 2022. (Eric Lee / Bloomberg via Getty Images / Getty Images)

Ahead of Tuesday’s inflation data, some money managers were hoping central banks would be able to start reducing their rate hikes.

“It’s clear they’re not going to pivot. That ship has sailed,” said Hani Redha, portfolio manager at PineBridge Investments.

Traders are also nervous that the Fed may continue to tighten even as the economy slows.

IPO: Corebridge Financial Inc., the life insurance and wealth management unit of American International Group, has evaluated its initial public offering, the first attempt at a large, traditional US IPO in months.

Ticker Safety Last Change Change %
CRBG COREBRIDGE FINANCIAL INC COM USD0.01 20.72 -0.01 -0.05%

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The offer was priced below expectations and fell on its stock market debut, disappointing advisors who had hoped the deal would create a failing IPO market.

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