(Brandon Bell/Getty Images) |
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Beer is having a crime wave.
Thieves in England made off with two truckloads of Guinness this week, roughly 70,000 pints worth with a value of $155,000. And across the pond, thieves recently swiped 34,000 cans of Pabst Blue Ribbon and Old Milwaukee from a California warehouse. PBR is offering a $20,000 reward for information leading to the recovery of the missing beer.
The thieves remain at large. The beer, presumably, is getting less so.
Stocks dipped on Friday as August’s higher-than-expected jobs number raised the spectre of a Federal Reserve rate hike.
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US diesel prices climb to all-time highs |
Prices for diesel — the stuff that fuels commercial vehicles like trucks and agricultural equipment — climbed to an all-time high in the US on Friday, according to the American Automobile Association.
A gallon of diesel reached $5.85 on average last week, up from $2.14 from a year ago. That surpassed the previous record of $5.82 a gallon in June 2022, months after Russia invaded Ukraine and world leaders began imposing sanctions on the leading oil producer.
The price of crude oil — the main ingredient in diesel and regular unleaded gas — has soared this year after the US launched a war against Iran, which resulted in supply chain disruptions amid closures in the key Strait of Hormuz. Ukrainian attacks on refineries have also curtailed Russian fuel production and exports, further squeezing global supplies.
And while higher gasoline prices hit consumers directly at the pump, diesel costs sneak into the price of products people buy every day. Trucks, trains and farm equipment run on it, meaning higher diesel prices can make everything from harvesting lettuce to delivering an Amazon package more expensive.
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If goods become more expensive to produce and transport, some of those costs will likely be passed on to consumers. That means two things:
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- The Federal Reserve is less likely to cut rates (and could potentially raise them) if higher energy costs keep inflation above target. The central bank can’t reopen the Strait of Hormuz, but interest rates are its main tool for keeping broader price pressures in check. Fed Governor Christopher Waller said last week that persistent inflation could warrant a rate hike at this month’s meeting, while specifically pointing to military conflicts as one source of uncertainty. And the possibility of a rate cut seems to be sliding out of view in the wake of Friday’s stronger-than-expected August jobs report.
- Bond yields, which have already been rising recently for a few reasons, could remain elevated if investors expect higher inflation and interest rates to stick around.
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Both of those things ultimately make borrowing more expensive for consumers and governments, meaning a record at the diesel pump could eventually show up in places that have seemingly nothing to do with filling up a truck.
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That’s how many nonfarm jobs US employers added in August, according to the most recent reading from the Bureau of Labor Statistics released Friday, coming in significantly above estimates. The unemployment rate held steady at 4.1%.
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- Earnings due out postmarket from GameStop.
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- Earnings due out premarket from Chewy.
- American Eagle slated to release quarterly results after the close.
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- Earnings from Macy’s due out premarket.
- Oracle and Adobe poised to release quarterly results after the close.
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