“Hack the Pentagon” — What the Pentagon is calling its “bug bounty program.” Yes, the U.S. Department of Defense is inviting hackers to test its internal networks, but not just anyone—you’ll need to pass a background check before getting your shot at cracking the government.
MARKET SNAPSHOT
Big Picture
- U.S. stocks finished ever-so-slightly higher yesterday thanks to boosts from both the energy and telecommunications sectors, plus data that the private sector added a healthy 214,000 jobs, beating forecasts of 190,000—nothin’ wrong with that
Alternatives to Watch
- Oil investors digested conflicting news: a drop in production levels coupled with a considerable increase in weekly supply resulting in a choppy, but positive, trading session
Market Movers
- Farming giant Monsanto fell nearly 8% as currency devaluations and faltering agricultural commodity prices in agri-heavy countries have hampered demand for its products
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CORPORATE PRIMER
Ex-Chesapeake CEO Dies
Just one day after being indicted by a federal grand jury, former CEO of Chesapeake Energy, Aubrey McClendon, was killed in a fiery single-vehicle car crash. McClendon was a pioneer of the U.S. shale boom and was a visionary in the oil sector. However, he was also accused of conspiring to rig the price of oil and gas leases in Oklahoma. We may never know the truth behind McClendon’s eerily-timed death, but we can’t forget the indelible legacy of a man who built an energy empire worth tens of billions from a mere $50,000 loan.
Sports Authority Forfeits
It might be time to find a new place to buy the latest Steph Curry jersey. In what can only be described as a slow and painful fall from the top of the sports retail industry, Sports Authority’s declaration of bankruptcy yesterday surprised absolutely nobody. The nail in the coffin? The company’s high debt load coupled with an increasingly poor shopper experience (which was only accelerated by the e-shopping boom) did the trick. With a third of its locations now shutting down, the company has lost whatever Authority it once had.
Yahoo Brings Its E Game
Yahoo may be trimming fat left and right, but the embattled search giant has actually added a new division: e-sports coverage—or in layman’s terms, competitive video gaming. Surprised? Consider this: the e-sports market is expected to be worth $1.1 billion by 2019—and Yahoo wants a piece of the action. As a first step, Yahoo has recruited a solid team of experts, and success in this division (or any division) would be a welcome change for Yahoo. But with major competitors like ESPN already in the e-sports space, it won’t be an easy win.
Target Aims Higher
Target is setting some seriously lofty goals. Among them: to be the ultimate one-stop grocery, apparel and home destination for Americans. Target’s got plans to get there too, including text notifications for online orders and a larger selection of fresh, organic produce. All this talk about change comes after Target’s sixth consecutive quarter of same-store sales growth, a respectable feat compared to the struggles of its competitors (we’re looking at you, Walmart). Keep it comin’, Target.
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OTHER STORIES
- $20 billion erased from Exxon’s spending budget
- Toyota adds 356,000 vehicles to Takata air bag recalls
- IBM sues Groupon over alleged patent infringement
- Germany takes on Facebook in competition probe
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ECONOMIC CALENDAR
- Monday: AMC Entertainment (+), Crocs (-), Lumber Liquidators (-) Earnings; Pending Home Sales (-)
- Tuesday: Barclays (-), AutoZone (+), Dollar Tree (+/-), Glencore (-), Kate Spade (-), Ross Stores (+), TiVo (+/-) Earnings; ISM Manufacturing Index (-); Construction Spending (+); Motor Vehicle Sales (+)
- Wednesday: Abercrombie & Fitch (+), American Eagle (+), Costco (-) Earnings; EIA Petroleum Status Report (+/-); Private Employment Report (+)
- Thursday: Barnes & Noble, H&R Block Earnings; Weekly Jobless Claims; ISM Non-Manufacturing Index
- Friday: Staples, Big Lots Earnings; February Jobs Report; U.S. Trade Deficit
THAT’S OK, I’LL DRIVE
It was only a matter of time: earlier this week, Google admitted partial fault in an accident involving one of its self-driving cars. With 75% of drivers afraid to use a self-driving car, according to a recent survey by the AAA, it looks like the American public isn’t going to take its hands off the wheel anytime soon. Here’s some more tidbits:
- Although most folks aren’t ready for a car with a mind of its own, 61% of respondents said they do want access to a self-driving feature, such as adaptive cruise control or self-parking.
- Over 80% of baby boomers were against an autonomous vehicle, while 69% of younger people were afraid of self-driving cars (to be fair, that’s still a considerable amount).
- Interestingly, apprehension was split down gender lines: 81% of women were against autonomous vehicles, compared to just 67% of men.
- All told, experts predict that 20 million autonomous vehicles will be on the road by 2025. Many fears are going to have to be put to rest by then, and more mishaps will only make the road to autonomy longer.
INTERVIEW QUESTION OF THE DAY
You’re in a room with no metal objects except for two iron rods. Only one of them is a magnet. How can you identify which one is the magnet? (Answer)
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STARTUP OF THE DAY
Slack Technologies is a startup trying to change the way businesses communicate. Its product: a fully-featured messaging app that now has north of 2.3 million users. The company also claims eBay, Sony and Yelp as customers, which ain’t too shabby. Also not shabby: it’s now in talks to raise between $150 and $300 million in funding, valuing the startup at a cool $4 billion.
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FOOD FOR THOUGHT
Rio, we have a problem: only 47% of the 7.5 million tickets for this summer’s Rio Summer Olympics have been sold. That is…not good. Combine a distressed economy, the still-spreading Zika virus and polluted water, and you get a lot of people opting to stay on the sidelines for this one.
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