US markets dip after a lag in high-flying tech stocks, while European stocks trade higher on reopening confidence

traders screen brazilian flag

US markets edged lower on Tuesday after mega-cap technology stocks dropped despite largely upbeat quarterly results over the past week.

Futures on the Dow Jones, S&P 500, and Nasdaq fell between 0.1% and 0.3%, suggesting a weaker start to trade at the opening bell later.

Declines in shares of Amazon, Alphabet, Facebook, and Microsoft have weighed on the broader market. Chipmakers have also been under pressure, as the current semiconductor shortage is having tremendous impacts on lead times and pricing, according to Deutsche Bank strategists.

“There appears to be a general inflation of prices across most, if not all, supply lines,” they said. “This dovetails with what many companies are reporting during this earnings season, and has caused more than a few to lower production guidance for 2021, even as consumer demand continues to rebound with the overall economy.”

But with results in from a majority of the S&P 500 names, 85% of companies have beaten expectations.

UBS chief investment officer Mark Haefele said investors should be careful to avoid over-allocating to mega-cap tech companies in their portfolios. “In an environment of accelerating growth, we continue to prefer cyclical and value sectors such as financials and energy, while positioning for long-term structural growth in industries which could provide ‘The Next Big Thing’,” he said.

The US dollar rallied after Federal Reserve Chair Jerome Powell said the US economic outlook has “clearly brightened,” but has been slower for those in lower-paid jobs. In terms of rising house prices, Powell cited a sharp increase in demand fueled by low mortgage rates and fiscal stimulus. He expects “it is going to be a tight housing market for some time now because demand is just very, very high.”

Jerome Powell
Fed Chair Jerome Powell.

Across the pond, the European Commission is proposing a travel plan that would replace the current blanket ban for non-essential travel to the region that has been in place for about a year, according to the Guardian. People who have been fully vaccinated from countries with low infection rates could be allowed to travel to the EU by the start of June under a proposed vaccine passport system.

In the UK, a string of local and regional elections will be taking place on Thursday after being delayed last year due to the pandemic. The Bank of England will announce its latest monetary policy decision the same day.

“In terms of when they might begin to taper their Quantitative Easing operations, (economists) think it’s a close call between May and June, but ultimately the BoE will wait until June,” Deutsche strategists said.

London’s FTSE 100 rose 0.6%, the Euro Stoxx 50 was about flat, and France’s CAC 40 rose 0.2%.

Activity in Asian markets was somewhat muted by holidays in China and Japan on Tuesday. Hong Kong’s Hang Seng was up 0.8%.

Read the original article on Business Insider

We’re living in the golden age of pajamas

GettyImages 992250636
Caroline Daur in printed pajamas during Paris Fashion Week Haute Couture Fall Winter 2018/2019.

  • If you splurged on a matching pajama set for the first time over the last year, you’re not alone.
  • Those fortunate enough to maintain an income shifted “scheduled spend” from normal routines to indulgences.
  • People also satisfied their “skin hunger” with silks, satins, plushes, and Peruvian cottons.
  • See more stories on Insider’s business page.

In March 2020, Vanessa Diaz was supposed to be in Mexico getting married. Instead she was quarantined in her Los Angeles apartment with her fiance and their chihuahua/pug mix, Raisin Bran. But she had just splashed out on a new set of pajamas she was planning to wear on her wedding weekend, and with no reason to leave the house she started wearing them more – like, a lot more.

Soon, Raisin Bran had his own set, too.

Diaz didn’t stop there, deciding to treat herself when she had to postpone her nuptials. Since she chose a lower-price-point Target set for $22 and kept her job in PR, Diaz was able to splurge on more sets, and over the course of a year she spent more than $100 on new pajamas. She said she’d never bought this much sleepwear before.

Prior to the pandemic, Diaz said, her leisure clothes consisted of oversized T-shirts. On the subject of pajamas, she said, “I just thought it was kind of like an unnecessary, luxury purchase, you know?”

Yes, we all know. Last April, PJ sales spiked 143% compared to March, launching an intimates-fueled year of quarantine. And in the year leading up to January 2021, market research firm NPD Group told Insider, pajamas priced at $50 or more grew at triple the rate of the total pajama market. In 2019, the global industry was worth more than $10 million, and it’s projected to reach more than $18 million by 2027.

Even the ultrawealthy got in on the action, fueling a boom in $1,000 pajama sets for the 1%.

The durability of this golden age for modern pajamas may even be a part of the new normal as the world reopens. That will depend on how long “skin hunger” and disruptions of “scheduled spend” continue to change the shape of the economy.

A post shared by Raisin Bran The Dog (@raisinbranthedog)

From unnecessary luxury, to comfort and self-care

When Ashley Merrill founded the pajama brand Lunya in 2014, she said her biggest task was convincing people to pay nearly $200 for something to wear around the house.

“They’re very comfortable spending $250 on a cocktail dress, despite the fact that they’ll maybe wear it once or twice, and very uncomfortable with the idea of spending $200 bucks on a sleep set which they will probably wear 197 out of 365 days a year,” she said.

That changed in a big way in 2020, as pajamas took the place of office clothes, red carpet glam, and streetwear. Those in the $50-to-$200 range from brands like Lunya, Eberjay, and Lake brought luxury to middle-class bedrooms, and sub-$50 sets from the likes of Target and Marshalls also served as a self-care indulgence for many in quarantine.

The market has shifted, Merrill said. Her brand, which has historically sold its washable silk sets in solid, neutral colors, is launching its first pattern. Merrill said she believes people have proven they’re willing to splurge on at-home clothes and are ready for a little more distinctive.

“We’re playing with some things that are a little more special, a little novelty, because we’re realizing, people are ready,” she said. “They now get the value of what it would mean to have something that they feel great in around the home.”

We’re suffering from ‘skin hunger’

In the last three months of 2020, searches peaked for pajamas on the shopping app Liketoknow.it, with over 200,000 unique queries for the term. A spokesperson for the company said shoppers are on the hunt for “silk pajamas,” “pajama sets,” and “satin pajamas” – all of which had triple-digit month-over-month growth last year and still sit in the top searches today.

These fabrics satisfy what Lorna Hall of London-based trend forecasting firm WGSN calls “skin hunger.”

“Many of us are starved of touch,” Hall said, “so tactile fabrications become really important, because they sort of mimic touch.” She said silks, satins, and plushes are examples of fabrics that satisfy this need.

The spokesperson for Liketoknow.it separately agreed with Hall. “Our consumers are very much still in the cozy mindset, with search data for things like loungewear, matching sets, nap dress, and home bedding all trending since the start of lockdown last year,” the spokesperson said.

Anne Read Lattimore and Cassandra Cannon, the cofounders of pajama brand Lake, said their most popular product had a blowout 2020. They sold 38,816 Peruvian pima cotton short sets, contributing to a 136% year-over-year increase in revenue. Lunya, which Hall credits with bringing washable silk to the masses, claims it has doubled revenue every year since launching in 2014, but declined to share exact figures.

The pandemic disrupted our ‘scheduled spend’

Among a certain set of customers, Hall told Insider, the pajama splurge could be the result of “lots of cash, nowhere to go.”

“The luxury pajama really fulfills a way to spend that makes sense, because you can wear them straight away, which, with a lot of apparel at the moment, you just can’t,” Hall said. “And you don’t have the event to wear something luxury and decadent to, because those events really don’t exist.”

Self-care items like pajamas took the place of what Hall calls “scheduled spend” or the purchases people regularly made in their pre-pandemic routine, like coffee, commuter fare, and lunches out. As routines changed, so did our regularly scheduled budgets. After all, Hall said, “bedtime is a thing that comes around every day, and lounging around in the house certainly is like a ubiquitous state for many of us.”

Plus, as Paris Fashion Week demonstrated, it’s no longer just about bedtime. Designers brought pajama-inspired looks to the catwalks this year, Hall said. “With pajama dressing and luxury nightwear, there’s a real crossover at the moment on the catwalks,” she said, describing Jil Sanders’ slip dress as “ostensibly going-out wear, but it’s a slip dress that could also be worn as a night dress, or is related to the night dress in terms of its shape.” In addition, Fendi’s wide-legged pants and intimates-inspired dresses fall in this category of “silky, satin-y, easy-to-wear, pajama-type wear as well.”

Hall said she believes the pajama boom will stick around post-pandemic, bolstered by designers’ pajama-inspired going-out wear. “Once you’ve treated yourself to something that’s of a certain fabric and quality level, it’s quite hard to go back when you’ve had the luxury sleep item.”

Read the original article on Business Insider

Fed Chair Jerome Powell says the greatest risk to the US economic rebound is another wave of the coronavirus

FILE PHOTO: U.S. Federal Reserve Chairman Jerome Powell speaks to reporters after the Federal Reserve cut interest rates in an emergency move designed to shield the world's largest economy from the impact of the coronavirus,  in Washington, U.S., March 3, 2020. REUTERS/Kevin Lamarque
U.S. Federal Reserve Chairman Jerome Powell  speaks in Washington

  • The US economy is about to start growing “much more quickly,” Federal Reserve Chairman Jerome Powell told CBS.
  • The biggest risk to the economic recovery is another surge in coronavirus cases, Powell said.
  • He credited steady vaccinations, stimulus, and strong monetary policy for the rebounding economy.
  • See more stories on Insider’s business page.

Federal Reserve Chairman Jerome Powell says the US economy is about to start growing “much more quickly,” but a resurgence in COVID-19 cases could derail that progress.

Powell discussed the US economic recovery from the coronavirus pandemic with CBS’ Scott Pelley, in an interview set to be aired on 60 Minutes Sunday at 7 pm ET.

In a preview of the interview, Powell said the US economy is at an “inflection point” more than a year after the virus forced widespread lockdowns, tangling supply chains, shuttering businesses, and leaving millions of Americans unemployed.

Powell said the economy is picking up steam “because of widespread vaccination and strong fiscal support, strong monetary policy support.”

“We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly. The principal risk to our economy right now really is that the disease would spread again. It’s going to be smart if people can continue to socially distance and wear masks,” Powell told CBS.

The March jobs report showed positive signs, adding 916,000 nonfarm payrolls, well-exceeding economists’ expectations. The unemployment rate fell to 6% from 6.2%, matching forecasts, still far above the 3.5% pre-pandemic rate.

While businesses reopen and hiring appears to be surging, many employers have said they are struggling to fill vacant jobs, especially in the restaurant and retail sectors, which took a huge hit last year.

Powell earlier this month said some people may struggle to reacclimate to an economy permanently changed by the pandemic, adding the Fed will continue to provide support to prevent scarring and persistent unemployment.

“The real concern is that longer-term unemployment can allow people’s skills to atrophy, their connections to the labor market to dwindle, and they have a hard time getting back to work,” he said in the conference. “It’s important to remember we are not going back to the same economy, this will be a different economy,” Powell said in a virtual conference hosted by the International Monetary Fund.

Powell and experts have also cautioned that another wave of the coronavirus could unwind economic progress.

Even as vaccinations continue to roll out in the US at a steady pace, confirmed cases of COVID-19 in the US have again been on the rise. The director of the Centers for Disease Control and Prevention last month warned of “impending doom” and a possible fourth surge of the virus, spurred by variants.

On Saturday, an Israeli study found coronavirus variants first found in South Africa and the UK are able to partially “breakthrough” the Pfizer/BioNTech vaccine. The study has not yet been peer-reviewed.

Read the original article on Business Insider

The hottest fashion of the pandemic is the pajama set

GettyImages 992250636
Caroline Daur in printed pajamas during Paris Fashion Week Haute Couture Fall Winter 2018/2019.

  • If you splurged on a matching pajama set for the first time over the last year, you’re not alone.
  • Those fortunate enough to maintain an income shifted “scheduled spend” from normal routines to indulgences.
  • People also satisfied their “skin hunger” with silks, satins, plushes, and Peruvian cottons.
  • See more stories on Insider’s business page.

In March 2020, Vanessa Diaz was supposed to be in Mexico getting married. Instead she was quarantined in her Los Angeles apartment with her fiance and their chihuahua/pug mix, Raisin Bran. But she had just splashed out on a new set of pajamas she was planning to wear on her wedding weekend, and with no reason to leave the house she started wearing them more – like, a lot more.

Soon, Raisin Bran had his own set, too.

Diaz didn’t stop there, deciding to treat herself when she had to postpone her nuptials. Since she chose a lower-price-point Target set for $22 and kept her job in PR, Diaz was able to splurge on more sets, and over the course of a year she spent more than $100 on new pajamas. She said she’d never bought this much sleepwear before.

Prior to the pandemic, Diaz said, her leisure clothes consisted of oversized T-shirts. On the subject of pajamas, she said, “I just thought it was kind of like an unnecessary, luxury purchase, you know?”

Yes, we all know. Last April, PJ sales spiked 143% compared to March, launching an intimates-fueled year of quarantine. And in the year leading up to January 2021, market research firm NPD Group told Insider, pajamas priced at $50 or more grew at triple the rate of the total pajama market. In 2019, the global industry was worth more than $10 million, and it’s projected to reach more than $18 million by 2027.

Even the ultrawealthy got in on the action, fueling a boom in $1,000 pajama sets for the 1%.

The durability of this golden age for modern pajamas may even be a part of the new normal as the world reopens. That will depend on how long “skin hunger” and disruptions of “scheduled spend” continue to change the shape of the economy.

A post shared by Raisin Bran The Dog (@raisinbranthedog)

From unnecessary luxury, to comfort and self-care

When Ashley Merrill founded the pajama brand Lunya in 2014, she said her biggest task was convincing people to pay nearly $200 for something to wear around the house.

“They’re very comfortable spending $250 on a cocktail dress, despite the fact that they’ll maybe wear it once or twice, and very uncomfortable with the idea of spending $200 bucks on a sleep set which they will probably wear 197 out of 365 days a year,” she said.

That changed in a big way in 2020, as pajamas took the place of office clothes, red carpet glam, and streetwear. Those in the $50-to-$200 range from brands like Lunya, Eberjay, and Lake brought luxury to middle-class bedrooms, and sub-$50 sets from the likes of Target and Marshalls also served as a self-care indulgence for many in quarantine.

The market has shifted, Merrill said. Her brand, which has historically sold its washable silk sets in solid, neutral colors, is launching its first pattern. Merrill said she believes people have proven they’re willing to splurge on at-home clothes and are ready for a little more distinctive.

“We’re playing with some things that are a little more special, a little novelty, because we’re realizing, people are ready,” she said. “They now get the value of what it would mean to have something that they feel great in around the home.”

We’re suffering from ‘skin hunger’

In the last three months of 2020, searches peaked for pajamas on the shopping app Liketoknow.it, with over 200,000 unique queries for the term. A spokesperson for the company said shoppers are on the hunt for “silk pajamas,” “pajama sets,” and “satin pajamas” – all of which had triple-digit month-over-month growth last year and still sit in the top searches today.

These fabrics satisfy what Lorna Hall of London-based trend forecasting firm WGSN calls “skin hunger.”

“Many of us are starved of touch,” Hall said, “so tactile fabrications become really important, because they sort of mimic touch.” She said silks, satins, and plushes are examples of fabrics that satisfy this need.

The spokesperson for Liketoknow.it separately agreed with Hall. “Our consumers are very much still in the cozy mindset, with search data for things like loungewear, matching sets, nap dress, and home bedding all trending since the start of lockdown last year,” the spokesperson said.

Anne Read Lattimore and Cassandra Cannon, the cofounders of pajama brand Lake, said their most popular product had a blowout 2020. They sold 38,816 Peruvian pima cotton short sets, contributing to a 136% year-over-year increase in revenue. Lunya, which Hall credits with bringing washable silk to the masses, claims it has doubled revenue every year since launching in 2014, but declined to share exact figures.

The pandemic disrupted our ‘scheduled spend’

Among a certain set of customers, Hall told Insider, the pajama splurge could be the result of “lots of cash, nowhere to go.”

“The luxury pajama really fulfills a way to spend that makes sense, because you can wear them straight away, which, with a lot of apparel at the moment, you just can’t,” Hall said. “And you don’t have the event to wear something luxury and decadent to, because those events really don’t exist.”

Self-care items like pajamas took the place of what Hall calls “scheduled spend” or the purchases people regularly made in their pre-pandemic routine, like coffee, commuter fare, and lunches out. As routines changed, so did our regularly scheduled budgets. After all, Hall said, “bedtime is a thing that comes around every day, and lounging around in the house certainly is like a ubiquitous state for many of us.”

Plus, as Paris Fashion Week demonstrated, it’s no longer just about bedtime. Designers brought pajama-inspired looks to the catwalks this year, Hall said. “With pajama dressing and luxury nightwear, there’s a real crossover at the moment on the catwalks,” she said, describing Jil Sanders’ slip dress as “ostensibly going-out wear, but it’s a slip dress that could also be worn as a night dress, or is related to the night dress in terms of its shape.” In addition, Fendi’s wide-legged pants and intimates-inspired dresses fall in this category of “silky, satin-y, easy-to-wear, pajama-type wear as well.”

Hall said she believes the pajama boom will stick around post-pandemic, bolstered by designers’ pajama-inspired going-out wear. “Once you’ve treated yourself to something that’s of a certain fabric and quality level, it’s quite hard to go back when you’ve had the luxury sleep item.”

Read the original article on Business Insider