Key insights
- Geopolitical tensions are driving oil prices higher, creating inflationary pressures and weighing on US equities. The Fed's ability to pivot on monetary policy is constrained. Starbucks' new compensation plan faces union hurdles. SpaceX has filed confidentially for an IPO, timing the announcement with the Artemis II launch.
📌 Top story -- scroll down for more updates
10:05 am — SBUX -0.8%
Starbucks (SBUX +0.23%) is doubling down on its "Back to Starbucks" turnaround by launching quarterly $300 bonuses for baristas who hit specific operational and sales targets. CEO Brian Niccol is betting that incentivizing store-level performance and expanding mobile-app tipping will boost total compensation by up to 8%, potentially curbing the turnover that has plagued the chain. While traffic grew last quarter for the first time in two years, the plan faces a hurdle: approximately 5% of U.S. stores under Starbucks Workers United representation may be excluded from these gains pending stagnant collective bargaining talks. To further sweeten the pot, the company will shift all U.S. employees to weekly pay starting this August.
9:35 am
The Dow Jones Industrial Average opened in a tailspin Thursday, surrendering 600 points as President Trump’s "Stone Age" threat toward Tehran shattered previous hopes for an immediate peace. This aggressive pivot sent West Texas Intermediate crude futures screaming 12% higher to $112 per barrel, creating a massive inflationary headwind just before the Good Friday market closure. As the Nasdaq and S&P 500 retreat under the weight of surging energy costs, the Federal Reserve appears increasingly boxed in, unable to offer a "pivot" while geopolitical shocks remain unanchored.
9:05 am
By Tim BeyersTeam Rule Breakers
The same day Artemis II launches toward the Moon, the first NASA mission of its kind since 1972, just so happens to also be the day that SpaceX files confidentially to sell stock on public U.S. exchanges. Think that's a happy coincidence? Think again.
SpaceX chose to file yesterday because it makes the marketing of its equity that much easier. I mean, what space technology company wouldn't want a rocket racing for the stars as the background track for their pitch to investors?
SpaceX filed confidentially, so it could be some weeks before we get to dig into the cold, hard facts of the business behind the hype. But the hype is real. Don't be too surprised if the veil is lifted with a redacted but still 80% complete S-1 available not long after splashdown in nine days.
9:00 am
Dow futures plummeted 700 points Thursday following a late-night address Wednesday night in which President Trump vowed to hit Tehran "extremely hard," effectively cooling ceasefire optimism. Despite previous hints of a swift exit, the administration now pledges a two-to-three-week escalation, sending West Texas Intermediate crude up 10% to over $110 per barrel. The S&P 500 and Nasdaq followed suit, dropping as energy costs threaten to stifle consumer spending. With the Federal Reserve unlikely to cut rates amid this inflationary spike, investors are bracing for a volatile, holiday-shortened trading session ahead of Friday's monthly jobs report.