Good Morning! Wiz ditched its $23 billion deal with Google and will look to IPO instead. Meta is rolling out a new model aiming to knock ChatGPT off its throne. Apple has a foldable iPhone in the works, possibly launching in the next two years. Spotify reported record profit, while Tesla missed earnings. Chick-fil-A was dethroned as the No. 1 fast food restaurant in the US. Plus how to get into a flow state at work, and how to manage people that think they are smarter than you.

Remember readers, your financial advisor works for you. Evaluate your advisor’s performance + uncover hidden fees with Rainbook (it’s free).

_{SQUEEZ OF THE DAY}

Wall Street Slashes Internships

Happy intern season! Usually, you'd see interns swarming outside NYU dorms or grabbing drinks at Phebe’s, but this year, spotting them in their college-logo backpacks and baggy suits might be a bit tougher.

Banks used to scoop up as many interns as they could get, happy to burn through their summer salary, with the hope they’d become full-time money-making analysts. But firms are seeing interns more as financial burdens this summer.

The harsh reality has set in: interns are a money pit. Just ask Citadel, which paid interns $20,000 a month for an 11-week “math boot camp” last year.

Major banks and companies have taken a scalpel to their intern programs as they scramble to cut costs. Goldman Sachs trimmed its summer analyst class by 200, while JPMorgan slashed theirs by 600 to 4,400 interns. 

It’s not just banks—Tesla rescinded offers to a large portion of its usual 6,000 summer interns just weeks before they were supposed to start.

With fewer internships, the competition is fiercer than ever. Goldman Sachs received 315,000 applications for just 3,000 spots, and JPMorgan received 493,000 applications, up 82% since last summer.

Takeaway: Internships are a rite of passage on Wall Street, with most full-time hires coming from intern pools. With fewer openings, it’s becoming increasingly difficult to get your foot in the door for coveted jobs on Wall Street. Maybe college students are realizing just how much they can earn right out of college. Looks like the summer of the finance bro is in full swing.

_{PRESENTED BY RAINBOOK}

Are You Overpaying Your Financial Advisor?

Ah, summer. Time for barbecues, beach vacays, and oh yea–your financial advisor taking their quarterly fees. 

It's the perfect time to ask: How much are you really being charged? Are hidden fees gouging your returns?

• Passive fund fees average 0.11%–what do you pay?

• Management fees range from 0.80% to 1%–are you overpaying?

• Red flag report: Is your advisor a true fiduciary, or just a registered broker?

With Rainbook, you can answer these questions in just a few clicks. Even better, it offers ongoing monitoring at no cost to keep tabs on your advisor’s performance.

Find out if your advisor is a fiduciary at Rainbook.

_HEADLINES

Top Reads

• Tesla reports 7% drop in revenue as earnings fall short (CNBC)

• Apple likely to release foldable iPhone as early as 2026 (Reuters)

• Spotify posts record gross margin, profit and cash flow for Q2 (Axios)

• Chick-Fil-A dethroned as No. 1 fast food restaurant in the U.S. (NYP)

• 32 charts tell the story of markets and the economy midway through 2024 (YF)

• Meta moves to dethrone ChatGPT (Axios)

• US regulator privately finds weak risk management at half of large banks (Reuters)

• Financial markets shrug off potential Harris run for now (Axios)

• The salary you need to be considered middle class in the 25 largest U.S. cities (CNBC)

• Delta is still melting down, could last all week (CNN)

• Wiz walks away from $23 billion deal with Google, will pursue IPO (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed slightly lower as Wall Street gears up for major tech earnings.

Movers & Shakers

• (+) Spotify ($SPOT) +12% because the streamer posted a record profit.

• (+) Crown Holdings ($CCK) +9% after the packaging company beat earnings.

• (–) United Parcel Service ($UPS) -12% after an earnings miss and guidance cut; profit drops over 30%.

Private Dealmaking

• Bosch bought Johnson Control’s HVAC business for $8 billion

• Clio, a legaltech company, raised $900 million

• Cohere, an AI language model developer, raised $500 million

• Monarch Tractor, an autonomous tractor startup, raised $133 million

• Headway, a mental health care startup, raised $100 million 

• Coast, a fleet expense management provider, raised $40 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Common Sense Economics

As the global economy recovers from the COVID-19 pandemic and debates over the future of work challenge our long-held preconceptions about what careers and the market can be, learning the basics of economics has never been more essential.

Principles such as gains from trade, the role of profit and loss, and the secondary effects of government spending, taxes, and borrowing risk continue to be critically important to the way America's economy functions, and critically important to understand for those hoping to further their professional lives―even their personal lives.

Common Sense Economics discusses these key points and theories and more, using them to show how any reader can make wiser personal choices and form more informed positions on policy.

"Economics is not only fun and exciting, it's mostly plain common sense.”

_{DAILY VISUAL}

Tesla's Revenue Gain Masks Disappointing Quarter

_{PRESENTED BY PERCENT}

Investing in Private Credit Could Help Hedge Your Portfolio Against the Next Downturn

The stock market is burning red hot these days, which has many investors wondering: If a market correction happens, where can we ride out the storm? 

A Bloomberg survey¹ reveals that many institutions now prefer private credit over bonds to hedge against economic downturns. 

Why? T. Rowe Price data² suggests that allocating 10% to private credit historically reduces volatility and improves risk-adjusted returns. 

But this ‘safe haven’ asset class isn’t just for Blackstone, KKR, and Morgan Stanley–now, everyday investors can diversify with private credit using Percent. 

• Low minimums: Start with $500

• Shorter durations: Maturity in 6-36 months (average ~9 months)

• Monthly cash flow: Most deals offer cash flow through monthly interest payments.

• Return potential: Percent boasts a net return over 14% in the last 12 months as of Q1 2024

Sign up with Percent and get a bonus of up to $500 with your first investment.

_{DAILY ACUMEN}

Questioning

The quality of your life is determined by the quality of your questions.

Great thinkers, from Socrates to Einstein, were known for their ability to ask profound questions.

What questions are you asking yourself?

Questions shape our focus and drive our actions.

Instead of asking "Why me?" ask "What can I learn from this?"

Instead of "What if I fail?" ask "What if I succeed?"

Cultivate curiosity. Challenge assumptions. Ask better questions.

Remember, the wise man doesn't give the right answers, he poses the right questions.

_{ENLIGHTENMENT}

Short Squeez Picks

• 3 steps to reignite your motivation and achieve flow state at work

• Time management tips

• How to manage people who are smarter than you

• Debunking the biggest myths about happiness

• How Starbucks devalued its own brand

_{MEME-A-PALOOZA}

Memes of the Day