👨‍🎓 Young Americans struggling

and top stocks in trouble

In partnership with

Good morning investors! Chip and AI-related stocks fell yesterday after Meta Platforms CEO Mark Zuckerberg cautioned that uses for computers with Quantum capabilities remain years away. However, we think these stocks can still make a lot of money.

Stay ahead and the latest Future Download issue that covers some top AI names to invest in this year.

LIVE TODAY: Join us this morning at 9am PST for a YouTube live about why Bitcoin may be a better investment than bonds. Hear us out! It’ll be live so you can ask any question. Bookmark it here to get notified when we go live:

Today we cover:

  • Young Americans are struggling

  • Retail stocks suffer

  • A look at pharma and medical worlds

📊 Economy and News 

Young Americans Face Job Market Challenges Amid "The Great Stay"

Dubbed "The Great Stay," 2024 saw a slowdown in job market churn as fewer workers quit and businesses became cautious about hiring. We had a quit rate of 2.1% in 2024. This trend is expected to persist in 2025, compounding difficulties for younger workers trying to enter or re-enter the labor force.

Despite overall unemployment remaining low at 4.1%, younger workers have faced disproportionate challenges. Employment for those aged 20-34 declined significantly last year, while older cohorts saw job growth. White-collar industries, including tech and manufacturing, have been particularly challenging for recent graduates and early-career professionals.

Economists suggest relief could come if the Federal Reserve continues to lower interest rates, potentially spurring hiring in certain sectors like finance. However, even if hiring picks up, young workers may face delays in seeing meaningful improvements.

Do you actively look for career building tips?

Login or Subscribe to participate in polls.

Global hits:

Exciting: The IRS free Direct File program opens on Jan. 27 for taxpayers in 25 states. With expanded tax situations, more than 30 million taxpayers will be eligible to use Direct File in 2025, according to the U.S. Department of the Treasury. Many taxpayers can also use IRS Free File, among other options.

Medical world: Medical bills are now prohibited from appearing on consumers’ credit reports or being used by lenders to make lending decisions, the CFPB announced this month. The agency will also be removing $49 billion in medical debt from the credit reports of roughly 15 million Americans. The road, however, may not be easy since industry groups have sued to stop Biden from banning medical debt on credit reports.

Sponsored by 1440 Media

The Daily Newsletter for Intellectually Curious Readers

If you're frustrated by one-sided reporting, our 5-minute newsletter is the missing piece. We sift through 100+ sources to bring you comprehensive, unbiased news—free from political agendas. Stay informed with factual coverage on the topics that matter.

📈 Stocks

S&P 500 5,836.22 (+0.16%)
DJIA 42,297.12 (+0.86%)
NASDAQ 19,088.10 (-0.38%)
BRENT CRUDE 80.77 (-0.30%)
* Prices as of Jan 14th, 12:20 AM UTC

Mixed Holiday Results: Retail Giants See Diverging Stock Reactions

Retailers have come out with early numbers:

Lululemon Exceeds Expectations with Raised Forecast
Lululemon upgraded its fourth-quarter outlook, forecasting sales growth between 11% and 12%, up from the previously projected range of $3.48 billion to $3.51 billion. Excluding an extra fiscal week in the quarter, sales growth is expected to land between 6% and 7%. The company also revised its profit outlook, projecting earnings per share between $5.81 and $5.85, higher than the prior range of $5.56 to $5.64.

Gross margins are anticipated to improve by 0.3 percentage points, contrary to earlier expectations of a slight decline. These adjustments reflect strong holiday performance, which boosted investor confidence, lifting Lululemon’s stock by nearly 1% on Monday.

Abercrombie's Growth Slows Amid Mature Market
Abercrombie & Fitch slightly raised its holiday quarter sales growth projection to 7%-8%, compared to earlier estimates of 5%-7%. Full-year sales growth is expected to reach 15%, maintaining consistency with the previous year's 16% rise.

Despite these figures, Abercrombie’s stock plunged 15%, with investors questioning the sustainability of its growth after two years of robust performance. CEO Fran Horowitz emphasized a shift toward profit-focused strategies aimed at enhancing long-term shareholder value.

Urban Outfitters Reports Modest Gains
Urban Outfitters experienced a 10% year-over-year net sales growth for November and December. Comparable retail segment sales increased 6%, driven by robust online activity. However, its core Urban Outfitters brand underperformed, with sales falling 4%, while Anthropologie and Free People saw gains of 10% and 9%, respectively.

Urban’s rental service, Nuuly, reported a 55% surge in sales, fueled by a 53% growth in average active subscribers. Despite these positive indicators, the company's stock fell 2%.

Macy’s and American Eagle Struggle to Impress
Macy’s revealed disappointing holiday sales, revising its fourth-quarter revenue projection to the lower end of the $7.8 billion to $8.0 billion range. The company’s stock dropped more than 8%.

American Eagle raised its profit forecast to $135 million from $125 million, but projected a 5% decline in total revenue due to a shorter fiscal calendar. Shares declined by 4%, reflecting muted investor enthusiasm.

Holiday Sales Growth Misses Pandemic-Era Highs
The U.S. holiday season yielded a modest 3.8% year-over-year increase in retail sales (excluding automotive). The National Retail Federation projected sales growth between 2.5% and 3.5%, with inflation contributing to subdued real growth.

While some retailers outperformed, others faced challenges, signaling a mixed sentiment heading into the annual ICR conference in Orlando. Also, Kohl’s is closing 27 stores across more than a dozen states as the struggling retailer looks to improve profitability.

Pharma: Moderna lowered its 2025 sales guidance by roughly $1 billion, as it continues to cut costs. The report caused the stock to fall about -15%. The biotech company now expects 2025 revenue to come in between $1.5 billion and $2.5 billion, most of which will come in the second half of the year.

On the other hand, Eli Lilly plans to buy Scorpion Therapeutics’ experimental cancer therapy for up to $2.5 billion in cash to expand its pipeline of cancer treatments. Furthermore, the company expects new weight loss pill to be approved next year.

Must know: SEC charges Robinhood with securities violations, brokerage to pay $45 million penalty.

💵 Personal Finance

How to make your grown children financially secure

This is a controversial topic but one that needs some attention. A growing number of adults are now choosing to live with their parents due to increasing costs.

Young adults in the US are less likely than those in most of Europe to live in their parents’ home. Only 33% of adults in the country aged 18 to 34 live in their parents’ homes.

In fact, over 70% of adults aged 18 to 34 live with their parents in countries like Serbia, Portugal, Croatia, Greece, and Italy. The number is lower in countries like Denmark and Finland.

On the other hand, it is very common to live with parents in countries like India. In fact, many Indians continue to live with parents even after marriage, which isn’t the norm in Western countries. Furthermore, many adult children are dependent on these countries and it is common for parents to not only fund their education but marriages as well.

How is it in your country? Reply to this email and let us know.

💰 Be a Better Investor

“All intelligent investing is value investing — acquiring more than what you are paying for. You must value the business in order to value the stock.”

Charlie Munger

Resources:

What did you think of today's newsletter?

Login or Subscribe to participate in polls.

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.