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| New to the newsletter? Subscribe to The Daily Money to get the best consumer and financial news from USA TODAY delivered to your inbox every weekday morning. And give our news-inspired Spotify playlist a listen. It features every song quoted here. |
| Happy Thursday, Daily Money readers. Jayme Deerwester back with you. |
Why Target's stock price plummeted |
| Target stock shed nearly a quarter of its value in just one day, the biggest one-day decline since Black Monday in 1987. |
| This comes after the company reported earnings much weaker than expected for last quarter. Target CEO Brian Cornell said inflation is largely to blame. |
| "Overall costs have been rising much faster than retail prices," he said on Wednesday's pre-market earnings call. "While it's always the last lever we pull, external conditions led us to raise prices across a broad set of items in multiple categories." |
| Even though the annual inflation rate slowed slightly last month, Cornell doesn't expect consumers to stop feeling the pinch any time soon. |
| Cornell also cited rising fuel costs and miscalculations in the company's planning. |
| "While we anticipated a post-stimulus slowdown in these categories ... we didn't anticipate the magnitude of that shift," Cornell said. "This led us to carry too much inventory, particularly in bulky categories, including kitchen appliances, TVs and outdoor furniture." |
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US economy close to recovering pre-COVID job numbers, but more than half of industries lag |
| The U.S. is on pace to recover all 22 million jobs wiped out in the COVID-19 recession as early as July, but the milestone will obscure sharp differences among industries and an economy transformed by the crisis. |
| Industries that have thrived during a pandemic that has kept Americans working and playing at home for long stretches – such as ecommerce, technology and professional services – already have reached or topped their pre-COVID-19 payrolls. |
| Computer programming is 10.3% above its February 2020 staffing level. Courier services are up by 29.6%. |
| Sectors clobbered by the crisis, including restaurants, theaters and spectator sports, will take longer to heal as COVID-19 fades, experts say. |
| Jobs reliant on in-person shopping and previous business routines may never return to their prior peaks as COVID-19-related shifts become ingrained, experts say. |
🎧 Mood music 🎧 |
| The Target stock drop got me thinking of this 2001 Afro Celt Sound System song: |
| "'Cause when you're falling, I can't tell which way is down. And when you're screaming, Somehow I don't hear a sound." |
| LISTEN WHILE YOU WORK: You can hear just about every song quoted in the newsletter on the Daily Money Mood Music playlist on Spotify. |
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