Two of Canada’s biggest freight railroads with routes that cross the US border shut down their operations today. Canadian National (CN) and Canadian Pacific Kansas City Southern (CPKC) locked out 9,000 of their own workers amid a labor dispute with members of the Teamsters Union.

Economists say the shutdown could potentially cause devastating losses for US agriculture, the energy industry, automakers, and even the housing market. Almost a third of the freight handled by the two companies regularly crosses the US-Canada border, and trucking won’t be enough to make up the losses of goods like fertilizers, auto parts, and other essentials that are usually shipped by train.

We all saw firsthand the devastation supply chain issues can cause back during the pandemic—and with an entire branch of transportation now down, the pain will be felt immediately.

The US and Canadian Chamber of Commerce departments released a joint statement urging the Canadian government to take action. “A stoppage of rail service will be devastating to Canadian businesses and families and impose significant impacts on the US economy,” they said.

And the cost can get steep: A three-day strike could cause $300 million in economic losses, while a week-long strike would bring losses up to $1 billion, according to the Anderson Economic Group.

How long will this go on?

The Teamsters Union and the two freight companies have not been able to agree to a contract, with the union arguing that the rail companies are pushing dangerous safety conditions on workers. The two Canadian railroads preemptively kicked workers out to avoid a strike down the line, but the economic impact of the shutdown is similar.

While President Biden was able to step in to avert a massive rail strike in 2022, Canada’s federal government doesn’t have quite the same legal pathway that would allow Prime Minister Justin Trudeau to do the same.

The labor dispute is another reminder of how interconnected our commerce is with Canada’s, and how real the domino effect is when it comes to the economy.—LB

Some folks will tell you we’re living in an exceptional time filled with all kinds of power mazes and unprecedented problems. Others will say it’s the same old story, nothing new under the sun. But the question persists: What in the world is going on in the world?

Interesting Times, a new series by NYSE, delves into what makes the present moment so exceptional.

In a recent episode, Seedcamp Founder and Managing Partner Reshma Sohoni shared her perspective on the state of innovation and why she believes living in a hyper-efficient time accelerates innovation.

Check out the whole series, filled with diverse perspectives that demonstrate why these are, truly, interesting times to be an investor.

Tune in.

According to Brew Markets, perhaps the greatest and best account on X that you should totally follow, the Magnificent 7 have been doing just fine since the market meltdown just a few weeks ago. Surprising nobody, Nvidia has led the charge higher, and with earnings slated for next week, there’s a strong chance we see the semiconductor behemoth continue to power skyward.

But it’s not just the Magnificent 7 that are popping in August. Ritholz Wealth Management partner and Animal Spirits co-host Michael Batnick recently noted that the Nasdaq just enjoyed its fastest 10% rally from correction territory ever.

It usually takes the index an average of 32 days to rally 10% after sinking into correction territory, the way it did earlier this month—except this time, it only took eight days.

🟢 What’s up

• Zoom Video Communications zoomed 12.97% higher after beating earnings estimates and raising its revenue forecast for the year.
• Crocs gained 1.04% after Williams Trading upgraded the company from Hold to Buy and boosted its price target to $163 from $135.
• Deutsche Bank climbed 3.38% thanks to an announcement that it has reached a settlement with the majority of plaintiffs in its long-running case regarding its Postbank acquisition a decade ago.
• Paramount Global rose 0.81% after its special committee extended its “go shop” period ahead of its potential merger with Skydance.

What’s down

• Advance Auto Parts plummeted 17.47% thanks to a massive earnings miss this quarter and management’s prediction that earnings will drop for the rest of the year.
• Nvidia fell 3.70% after it came to light that investors and insiders like CEO Jensen Huang keep selling their shares of the company.
• Charles Schwab dropped 0.46% after TD Bank announced it will sell part of its stake in the company to cover recent fines.
• Williams-Sonoma sank 9.21% due to a poor earnings report as consumers slow their spending with the home goods retailer.
• Wolfspeed declined 5.38% after the chipmaker revealed that slowing EV sales had hurt its bottom line and that it’s closing one of its manufacturing plants to cut costs.

Peloton is on an uphill climb today, after beating analyst forecasts on both earnings per share and revenue. Shares rose over 35% today after the exercise equipment company announced sales growth for the first time in nine quarters. It reported revenue of $644 million, higher than the $631 million expected, while its loss per share was 8 cents, narrower than the 17 cents analysts forecast. Peloton has been focusing on profitability over expansion after a tough run the past year, in which its CEO Barry McCarthy resigned and its stock dropped 38% in the last twelve months. But maybe this stationary bike maker is finally moving forward.

Urban Outfitters dropped 9.57% today, despite beating analyst forecasts on both earnings per share and revenue. Investors were spooked by the apparel conglomerate’s sales growth miss—the company reported that comparable retail sales jumped 2%, below analysts estimates of 2.94%, while same-store sales dropped 9.3% year over year. During the firm’s Wednesday earnings call, president of the brand in North America Shea Jensen acknowledged that the company lost touch with its core consumer base, pointing to millennials aging out of the brand and Gen Z developing different consumption habits during the pandemic. She said Urban Outfitters plans to widen its target audience beyond the city-dwelling “aspirational 22-year old” to those in the suburbs and pre-college teenagers.

Snowflake plummeted 14.68% today after the cloud computing behemoth reported cooling product revenue growth. Despite the fact that its product revenue rose 30% year over year to $869 million and beat analyst expectations of $851 million, it was still a slowdown from the 34% year over year growth Snowflake boasted in the first quarter. Long term, analysts expect the tech giant to get a boost from its artificial intelligence investments—but until then, investors will keep a sharp eye on the company’s growth.—LB

• Former President Donald Trump is promoting his new crypto platform called “The DeFiant Ones.”
• Vice President Kamala Harris is winning hearts and minds on Wall Street—but not by backing President Biden’s tax on unrealized capital gains.
• Defunct crypto platform FTX has concocted a reorganization plan, and 95% of its creditors have voted in favor of it.
• The number of existing homes for sale in the US rose by nearly 20% in July, a sign that the housing market may be turning a corner.
• Initial jobless claims rose higher than economist expectations this week, but were still well within the normal range.
• Taylor Swift fans are breaking economics.

The biggest economic reveal of the week isn’t the latest facts and figures—it’s the much-anticipated speech from Jerome Powell out of Jackson Hole, Wyoming.

Powell has played his cards close to his vest when it comes to detailing his monetary policy plans, and there’s little to indicate that he’ll come right out and announce rate cuts weeks ahead of the Fed’s next meeting. On the other hand, the major revision to nonfarm payroll growth has likely left investors with a lot of questions about the labor market that he’ll need to have answers for if he wants to stall a stock selloff.

As for earnings, we’re rounding the final corner of the reporting season and no one wants to hop on a conference call on a Friday, so there’s no major quarterly announcements coming tomorrow.

With the Jackson Hole Symposium in full swing, it got us thinking: If you could attend any major summit in the world, which one would you pick?

The G20 meeting is in Brazil this November, or the G7 Summit was in Apulia, Italy this past summer, either of which sounds lovely. You could check out Davos, Switzerland for the World Economic Forum, or maybe you stay stateside for the IMF & World Bank meetings in Washington, DC.

Heck, expand beyond economics and maybe grab some BBQ down in Austin for South by Southwest, or head west to San Diego for Comic Con. Check out the latest award-winning films at the Cannes Film Festival, or perhaps get a sneak peek at the hottest new gadgets and gizmos at CES in Las Vegas.

If you could go to any major summit, conference, or event, where would you go? Money is no object and the sky is the limit, so dream big and fill out the survey here.