Life

The Truth: How Much Time You Waste In Traffic

by Last Updated

“I think Tesla is a company that is likely to go to zero eventually” — Investor Marc Faber, otherwise known as Dr. Doom, saying that Tesla is essentially a doomsday stock. Clearly, Faber is not loving Elon Musk’s Master Plan.

MARKET SNAPSHOT

Big Picture

  • U.S. markets finished positive, with the Nasdaq closing at an all-time high despite oil lagging and weaker-than-expected productivity data

Alternatives to Watch

  • Oil prices fell again yesterday as oversupply fears resurfaced, but the decline may not last for long, as Venezuela called for another producer meeting after the last one was unsuccessful

Market Movers

  • Shares of Yelp jumped over 10% after-hours, as the consumer reviews website reported that quarterly revenue rose much more than expected

CORPORATE PRIMER

The House of Mouse

…Is still as strong as ever. Disney reported Q3 earnings yesterday, powering past analysts’ estimates. Finding Dory was a big contributor to Disney’s success this quarter, but the company’s theme parks have been raking in revenue too. What’s next? The company just invested in BAMTech, aka MLB’s streaming service that has over seven million subscribers, in an effort to expand streamed ESPN content. On the other hand, still looming is the upcoming retirement of CEO Bob Iger in 2018, since it remains to be seen who will take over the helm after he leaves.

Job Sites Unite

…As Randstad agreed to purchase Monster Worldwide. The Amsterdam-based job staffing site will pay $429 million for Monster (of job site monster.com). Over the years, Monster has fallen from its prime amid tougher competition from sites like Linkedin, but Randstad believes its industry-leading technology will enhance its current service offerings. With new technology and greater access to the U.S. market, Randstad plans to connect more Americans to their dream jobs.

Valeant Misses on Earnings

…But shares surge nearly 20%. Bet you didn’t see that coming. Although the pharmaceutical company failed to hit expectations this quarter, its strong full-year guidance assured investors that it would remain in compliance with its debt covenants. Since its peak last year, the stock has plummeted 90% due to concerns with its accounting practices, and the optimistic outlook is just what the doctor ordered.

WORLD MACRO

The Bank of England Swings

…And misses. The BoE was rejected in its bid to buy $1.52 billion worth of long-term government bonds as part of a comprehensive plan announced last week by BoE governor Mark Carney. Ouch. In the end, investors were only willing to sell $1.46 billion in bonds despite being offered above market prices for them. It might not sound like much, but the difference of nearly $60 million is not how England’s central bank expected this to go—especially considering it’s only day two in the master plan. At over $91 billion in proposed quantitative easing, it’s a big plan indeed.

OTHER STORIES

ECONOMIC CALENDAR

THE TRAFFIC IS TERRIFIC

While crawling on the highway, have you ever thought about how much time you’ve wasted in traffic over the years? Ever thought about all the other ways you could be spending that time? Whether it’s perfecting your golf game, finally reading that book, getting regular exercise or learning a new language—everybody’s got their own no-traffic fantasy. A new study by the Auto Insurance Center found that commuters are actually wasting a full week in traffic each year. Don’t let these numbers give you road rage:

  • The average commuter wasted 42 hours and $960 stuck in traffic in 2015. Keep in mind that’s just the average. People in large cities had it much worse. DC commuters, for example, spent an average of $1,834 thanks to traffic.
  • Drivers in the nation’s capital were stuck in traffic for an average of 82 hours last year, L.A. commuters wasted 78 hours and New Yorkers spent 74 hours. Ugh.
  • Traffic also has a big impact on the environment. Sitting in traffic wastes an average of 19 gallons of gas per commuter each year. Maybe it’s time to take the train.

INTERVIEW QUESTION OF THE DAY

You have 17 red and 17 blue balls, and you remove 2 at a time. If the two balls are the same color, add in one extra blue ball. If they are different colors, add in an extra red ball. What color is the final ball removed? (Answer)

BUSINESS TERM OF THE DAY

Rocket Scientist – Finance slang for people with science and math degrees who build highly advanced quantitative financial models. These models help banking, insurance and investment firms to price financial instruments.

FOOD FOR THOUGHT

According to the New York Fed’s latest quarterly report, total household debt increased by $35 billion to $12.3 trillion. What are the drivers? Auto loans and credit cards. Not great news, folks.

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