Good morning, Peeps!

Football is back, which means we’ll be watching the Detroit Lions take it all this year.

But it’s expensive being a fan nowadays - with the average sports fan spending almost $2000 a year on streaming and sports betting.

• 47% carry debt just to keep up with their favorite team.

STOCKS

• S&P: 7,641 (-0.87%)
• DOW: 52,759 (-1.32%)
• NASDAQ: 26,067 (-1.00%)

*Numbers as of market close on August 20th

Walmart's Refund Play

Walmart (WMT -9.15%) made more money than Wall Street expected last quarter - so why did its shares fall?

• It was its slowest sales growth in six years and it thinks profits could be lower in the future.

But it did use the $2.9B tariff refund it received to cut prices and win back shoppers, however, inflation may make those discounts short-lived.

A New Record?

AI company Anthropic is planning a public stock sale that could be the biggest ever.

It wants to raise $86.2B, matching SpaceX's (SPCX -4.05%) record.

The catch? Its net loss hit $42B last year as it spends heavily on AI infrastructure.

• Competitor OpenAI said it will go public in 2027 or sometime sooner.

GLOBAL SCOOP

• STOXX 600 (E.U.): -0.12%
• CSI 300 (CHN): +0.08%
• FTSE 100 (U.K.): +0.04%

*Numbers as of 5:00 PM ET on August 20th

Bombs To Bankrolls

The U.S. is trading bombs for bank accounts in its fight with Iran.

• Treasury Secretary Bessent says economic pressure will replace large-scale combat.

The key number? 20% of global oil shipments passed through the Strait of Hormuz before the war.

The longer the conflict goes, the more likely prices from groceries to gas will stay high.

AI Splurge

Chinese ecommerce giant Alibaba (BABA +1.26%) spent big on AI, and its profit just took a huge hit.

Alibaba said its net income dropped 75% after it increased spending in AI buildouts.

• More than 3 billion people have downloaded its Qwen AI models globally.

Related: Meta’s (META -0.03%) stock also fell around 3 weeks ago after it revealed a huge increase in its AI spending last quarter.

ECONOMY

• US10YEAR: 4.70% (+0.05%)
• GOLD: $4,575 (+0.66%)
• BRENT CRUDE: $93.20 (+1.72%)

*Numbers as of 4:00 PM ET on August 20th

Going Low

The government is moving to keep Trump Accounts in low-cost index funds.

What are those? Trump Accounts are tax advantaged investment accounts for Americans 18 and under.

• Treasury proposed rules to limit choices to low-fee funds like the S&P 500 ETF (SPYM).

Four other ETFs are also allowed - the idea is to reduce small fees that could eat away at decades of compounding.

Jobless Claims Slip

Fewer people filed for unemployment last week - a promising sign after July’s big job slide.

• Initial claims slipped to around 200,000, down about 6,000 from the prior week.

Why? Employers are holding onto workers but not rushing to hire.

That could mean workers stay put for a while and anyone searching may have a tough time finding something new.

REAL ESTATE

• 30-year: 6.76%
• 15-year: 6.30%

Housing Hot Spots

Home sales are cooling nationwide, but a few cities are still seeing buyers line up.

• Pending home sales fell 2.2% in July.
• But Virginia Beach saw demand jump 17.2% last month.

The Summer Squeeze

Buying a home now costs Americans more than ever before.

A typical family now spends 34% of income on a new-home mortgage.

• 30-year mortgage interest rates are hovering around 6.7%.

Higher rates and more expensive homes are squeezing buyers, forcing them to rent or stay put for now.

CRYPTO

• BTC: $72,631 (+4.81%)
• ETH: $2,319 (+2.93%)
• XRP: $1.25 (+13.41%)

*Numbers as of 4:00 PM ET on August 20th

Bitcoin's Back, Maybe

The world’s most valuable crypto has jumped 12% in the last two days.

Why? The White House is pressing Congress to pass the Clarity Act and set clear rules for crypto.

However, lawmakers are split over ethics rules, and the Senate vote could kill it.

• Other cryptos like XRP and Ethereum have also jumped on optimism the bill passes soon.

Crypto Rules Coming

Speaking of the Clarity Act, the top U.S. regulator says crypto will get rules whether Congress acts or not.

The CFTC says it has the power to set rules for crypto and is currently looking at its options to do so quickly.

These new rules could impact exchanges, but also new players in the space like prediction markets.