BUSINESS

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The 4K Ultra HD + Blu-ray release of Kane Parsons’ “Backrooms” will include the “Everything Must Go” footage that played in theaters earlier this month.

Inflation may have dropped from its post-pandemic highs — June 2026 saw the largest monthly decline in consumer prices since the early days of Covid, according to data from the Bureau of Labor Statistics — but many Americans still feel its effects every time they shop.That’s especially true during back to school season, when families face hundreds of dollars in expenses before the first bell rings.This year, Walmart says it’s bringing some relief. In July, the retail giant announced that prices on its 14 most common school supplies would drop back to 2019 levels, reviving pre-pandemic pricing as it competes for shoppers during one of the year’s busiest retail periods.Walmart lowers prices on thousands of back-to-school itemsAs millions of Americans gear up for the 2026-2027 school year, Walmart is trying to help shoppers’ stretch their dollars.The retailer says it will be dropping prices on 14 of the most popular school supplies, including spiral notebooks, crayons, glue sticks, and pink erasers, to pre-pandemic prices. Select items will start at just $0.25.Beyond the basics, Walmart says it will be rolling back prices on 1,300 additional back-to-school items. These rollbacks include trendy options like “K-Pop Demon Hunters” merch, elevated stationary options, and backpack charms.The savings don’t stop at supplies, either. Walmart is launching seasonal discounts on clothing, dorm essentials, immunizations and wellness screenings, and select grocery items.“By bringing together affordability, inspiration and convenience in one destination, Walmart is doing more than helping customers shop for school—it’s helping America get ready for what’s next,” a statement from the retailer said.

Walmart is rolling back prices on 1,300 items this back-to-school season, dropping prices to pre-pandemic levels. Getty Images

Why Walmart is bringing back 2019 pricesWalmart’s aggressive pricing strategy reflects a broader reality facing retailers: families remain willing to spend on back-to-school necessities, but they’re becoming far more deliberate about where and how they shop.Parents plan to spend $557 per child on school essentials, according to Deloitte’s 2026 Back-to-School Survey. While that number is flat year-over-year, parents’ attitudes about the state of the economy and their approach to shopping are decidedly more negative than in 2025.Related: Target customers lose a big perk in AugustSome 57% of those surveyed say that they expect economic conditions to worsen over the next six months. As a result, they’re shopping with more intention and engaging in more value-seeking behaviors, with at least one-third adopting four or more cost-saving behaviors.In order to afford school necessities, parents say they’re cutting back on spending in other areas (50%), delaying their shopping (August spending is expected to go up by 26%), and relying on summer savings events to save (68%). More Walmart:Walmart beats Costco at its own gameWalmart’s 7,200 price cuts land heaviest in one categoryWalmart makes another move to win higher-income shoppers“Parents are still spending, but they are making clearer trade-offs: prioritizing replacement items, using digital tools to plan, and timing purchases around value moments,” Deloitte’s report read. “Retailers that can make those decisions easier, more personalized, and more rewarding have room to capture growth even in a constrained season.”Walmart’s latest move reflects that strategy. By restoring pre-pandemic pricing on staple school supplies while expanding discounts across clothing, groceries and dorm essentials, the retailer is emphasizing affordability at a time when many families are looking for ways to reduce back-to-school costs.It’s a strategy that may do well with the 60% of parents who told Deloitte they plan to shop at more affordable retailers this season.Walmart doubles-down on its value reputationThe back-to-school rollbacks also allows Walmart to reassure its traditional customer base that its push to attract wealthier shoppers hasn’t come at the expense of its longstanding focus on value.This latest savings promotion comes as Walmart has expanded its appeal to higher-income consumers through a series of premium offerings, including an exclusive line of restaurant-quality beef and partnerships with designer brands.The strategy has been deliberate. “About a year ago, we decided it was time to go out and start talking about the company differently,” Walmart CEO John Furner said in a June interview with Fast Company.While attracting higher-income households, who generally have more disposable income to spend, has helped Walmart grow market share, the retailer has also worked to preserve its reputation as a value destination for its core shoppers.Moves like this help Walmart demonstrate that its expansion into premium products isn’t replacing its core value-first identity. By restoring pre-pandemic pricing on everyday school supplies, the retailer is reinforcing the low-price reputation that has defined the brand for decades.Related: Walmart beats Costco at its own game

Data center demand is outpacing the grid’s supply, pushing federal emergency orders, built for rare crises, into routine use.

The companies behind some of the biggest car brands do not make every component of their vehicles.Instead, automakers rely on a vast network of suppliers to manufacture everything from seats and tires to semiconductors, windshields, door glass, and rear windows.However, while people know names like Hyundai, Honda, or Ford, they rarely identify the major parts maker responsible for the windshields or glass components in these big-brand cars.One of those behind-the-scenes suppliers is now closing a longtime U.S. factory and permanently laying off hundreds of workers.Carlex Glass America plans to close its automotive-glass manufacturing facility in Vonore, Tennessee.The closure stands out because Carlex is not merely an aftermarket windshield company. It is a major Tier 1 supplier that works directly with global automakers and manufactures original components installed in vehicles during production.Carlex closes Tennessee factory, cuts 325 jobsCarlex recently filed an official WARN notice with the state of Tennessee for a permanent layoff effective September 7.The layoffs will affect 325 employees at the company’s facility at 77 Excellence Way in Vonore. Tennessee’s rapid-response team has been notified to coordinate employment and transition services for affected workers.More Layoffs:Meta layoffs take disturbing turn in new lawsuitMajor snack brand closes plant, cuts 345 jobsJPMorgan Chase pushes fraud division layoffs, despite rising revenuesSeparately, Carlex announced that manufacturing operations at the plant are expected to conclude by the end of September. Production will continue through the transition to avoid disrupting customer deliveries.The company attributed the decision to changing market conditions and customer demand rather than a broader withdrawal from Tennessee.Carlex is not pulling back.“To the contrary, we are substantially expanding operations in Nashville as part of this overall restructuring. As we do so, we will fully support our affected colleagues in Vonroe as they identify and pursue their next career opportunity,” said Ramzi Hermix, CEO, Carlex.Workers may be considered for transfers to other Carlex facilities where positions are available. The company also said it would offer career-transition support, resume and interview assistance, and continued access to certain benefits following separation.

Carlex Glass America closes Tennessee plant.egon69 / Getty Images

Carlex supplies glass for major auto brandsMost drivers may never see the Carlex name prominently displayed on their vehicles, but its products can be critical to how those vehicles are built and repaired.Carlex manufactures windshields, side windows, and rear windows for automakers and the replacement-glass market. The Vonore, Tennessee, plant is a complete glass-fabrication facility that produces windshields, sidelites, and backlites for original-equipment and aftermarket customers. Carlex identifies itself as an original-equipment supplier to manufacturers, including:FordToyotaHondaNissanHyundaiSubaruThe company also operates replacement-glass programs with Stellantis, the parent company of Jeep, Ram, Dodge, Chrysler, Fiat, and several other vehicle brands.That does not necessarily mean that every model sold by those automakers comes with Carlex glass. Suppliers typically win contracts for particular vehicles, factories, or product programs.Carlex’s relationship with Ford is particularly deep.The Vonore plant opened in 1991 through a partnership with Ford Motor Co. Carlex took full ownership of the factory in 1995 and later acquired Ford’s former Nashville glass operations and aftermarket business in 2011.Carlex also sells automotive glass under the Carlite brand, which is closely associated with Ford replacement parts.Its SoundScreen acoustic windshields come standard on nearly all Ford and Lincoln vehicles, according to the company. Just weeks before announcing the Vonore closure, Carlex was named a 2026 Ford Supplier of the Year in the Crisis Management category for its performance and cooperation during Ford’s 2025 fiscal year. Carlex shifts production to NashvilleThe factory closure appears to be a consolidation rather than a complete reduction of Carlex’s U.S. manufacturing business.Carlex said the move is part of a wider restructuring intended to realign production with customer demand while expanding its Nashville operations.The company has invested more than $55 million in Nashville to increase manufacturing capacity and support future growth.Carlex said the expanded operation will include investments in automation, advanced manufacturing technology, and next-generation production capabilities. The changes are expected to increase efficiency and production flexibility across its original-equipment and replacement-glass businesses.Carlex currently lists U.S. manufacturing or operational locations in:Nashville and Lebanon, TennesseeAuburn and Ligonier, IndianaTroy, MichiganThis is in addition to the Vonore plant, which is scheduled for closure.The company has also undergone significant changes in ownership in recent years.Japan-based Central Glass, which owned Carlex US, agreed in 2022 to sell Carlex’s American and European businesses to investment funds managed by Atlas Holdings.Carlex is now an operating company within the Atlas portfolio and remains focused on automotive glass manufacturing and distribution.Auto suppliers face pressureCarlex’s decision comes as the broader automotive industry adjusts to softer demand, changing production plans, and continued pressure to control costs.A 2026 analysis from Bain & Company found that profitability has fallen sharply for global automakers from post-pandemic highs, prompting manufacturers to expand cost-reduction and efficiency programs that can also affect their suppliers.Suppliers have generally remained more resilient, but they are still exposed to changes in automaker production volumes and sourcing decisions.PwC’s 2026 automotive outlook said suppliers remain vulnerable to shifts in vehicle production and tariff pressures.Meanwhile, stagnant sales volumes and higher costs are encouraging more consolidation, operational efficiency, and portfolio restructuring across the sector.That matters for companies such as Carlex, whose factories and equipment are often built around demand from specific automakers, vehicle programs, and production locations.When those volumes or sourcing strategies change, suppliers may need to move production, automate facilities, or consolidate work into fewer plants.Carlex has not identified a lost customer or individual vehicle program as the reason for closing Vonore. The company has instead described the decision as a broader response to changing market dynamics and customer demand.Carlex is closing a roughly 35-year-old facility while shifting resources toward Nashville, where it has invested more than $55 million to expand capacity, automation, and advanced manufacturing capabilities.Related: 44-year-old mall steak chain closed over 275 locations

Netflix (NFLX) investors did not punish the streaming giant for delivering a disappointing quarter.Instead, NFLX is facing criticism for making the next phase of growth harder to measure.Shares plunged more than 10% on Friday, July 17, before closing near $68.95, down about 7.2%, according to Reuters. The stock slide erased around $35 billion in market cap at one time and took Netflix to close to a two-year low.Second-quarter revenue increased 13.4% to $12.56 billion. Earnings rose 11% to 80 cents a share, while operating income climbed to $4.19 billion.Those are good returns for most media companies.Netflix faces a different standard because investors see it as the industry’s dominating growth platform, not just another established entertainment business.The company’s forecast indicated the shift might already be occurring.Netflix maintained that the business remains financially healthy, despite the stock sell-off. “Our financial performance remains solid, and we’re on track to meet our objectives for the year,” the company said in its second-quarter shareholder letter.Netflix made its slowdown harder to evaluateNetflix anticipates third-quarter revenue of $12.86 billion, an increase of 11.7%, Reuters reported. Wall Street had been looking for around $13 billion.The company also forecast earnings of 82 cents per share, below the consensus estimate of 84 cents.But more importantly, Netflix’s revenue growth fell from 16.2% in the first quarter to 13.4% in the second. The third quarter outlook indicates another step down.In addition, the corporation is cutting back the frequency of its “What We Watched” engagement report from twice a year to once a year starting in 2027.Netflix ceased reporting regular subscriber numbers in 2025. Investors will receive less frequent information about the number of users and the intensity of their use of the service.The shift will keep revenue and operating profit in focus, Netflix added, according to Reuters. It will continue reporting weekly Top 10s and annual title-level viewing data.That explanation is reasonable.But slowing development and limiting disclosure creates an unnecessary credibility problem.Viewing hours rose 2% in the first half, and Netflix said engagement was healthy, Reuters noted. Investors now have to decide whether sluggish viewing growth is a sign of a mature but resilient business or a nascent signal that competition from YouTube, Disney, and mobile video is capturing more customer interest.

Netflix may be entering the hardest stage of its streaming story.Noam Galai / Getty Images

Netflix’s new businesses are not large enough yetAdvertising is crucial to the next phase of Netflix growth. The business forecasts ad revenue to more than double to almost $3 billion in 2026, driven by live sports, programmatic buying, and its in-house advertising platform.This is meaningful progress. But $3 billion would be only about 6% of Netflix’s estimated full-year revenue of between $51 billion and $51.4 billion, the company revealed in its shareholder letter. Advertising isn’t big enough yet to make up for a considerable slowdown in subscription or pricing growth.More Tech:Microsoft cuts thousands as Xbox faces rude awakeningSpectrum makes significant decision as customer losses mountGiant troubled satellite TV company files Chapter 11 bankruptcyGames, live events, and creator-driven programming also remain emerging companies, not proven replacements for Netflix’s core growth engine.It is profitable, and that gives it time.Netflix is still targeting a 31.5% operating margin for 2026, up from 29.5% last year, and more than 20% growth in operating income, it told shareholders. It also kept its outlook for yearly free cash flow of about $12.5 billion.Netflix also repurchased $4.7 billion of stock during the second quarter, its largest quarterly buyback, and had another $27.1 billion authorized.Those numbers suggest a very profitable corporation.And they don’t always sustain the growth premium that investors previously attributed to the stock.What Netflix investors should watch nextThe first test is whether revenue growth levels off after the third quarter.Investors should also watch whether the company accomplishes its $3 billion advertising target and whether live content attracts incremental viewers rather than moving existing viewing hours.Operating margin will reveal how much of Netflix’s earnings growth comes from genuine revenue expansion versus tighter spending.The annual engagement report will become more relevant because investors will have fewer opportunities to examine watching trends.Key takeaways for Netflix investorsNetflix shares fell after its third-quarter outlook missed expectations.Revenue growth is projected to slow for the second consecutive quarter.Netflix will publish its major viewing-hours report only once a year.Advertising is growing but remains a small portion of total revenue.Profitability and cash flow remain strong.Reduced disclosure raises the burden on Netflix to consistently meet its financial forecasts.Netflix is not in imminent financial danger; it’s in the midst of a valuation transition.The firm has already won the streaming war. The next hurdle is to show advertising, live events, games, and pricing can support premium growth as subscriber growth organically matures.Netflix is asking investors to measure this transformation primarily by revenue and profit, while limiting the disclosure of interactions.That works if forecasts are always better than expected. When growth slows down, even a good company can appear riskier, and less information is available.Related: Netflix’s move to buy Letterboxd sends a key signal to investors

Economic resilience is probably something most Americans would welcome. We’re seeing that consumer spending is still growing, wage gains haven’t gone away, and corporate dealmaking is showing fresh momentum. Those trends point to a country that is successfully blowing past the recent inflation shock.However, in an exclusive interview with CBS News’ “Face the Nation,” Bank of America CEO Brian Moynihan sees something more troubling beneath the surface.The economy is arguably holding its own, but the relief households expected hasn’t followed. Food, housing, and fuel costs remain painful, while the strongest spending growth continues to come from consumers with the greatest financial cushions.For investors and households, the next phase could look very different from the soft landing many had anticipated.Economic growth isn’t disappearing, but interestingly, that relentless pace of expansion might compel an economic response few people are prepared for.Moynihan warns inflation could outlast the recoveryMoynihan’s big concern is that inflation will likely remain sticky enough to prevent the relief everyone is expecting. “It’s drifting down, and it’s drifting down slower than people would like it,” he said, pointing to continued pressure from housing, food, fuel, and other essential costs.The problem extends beyond prices at the pump. More Fed:Cooler inflation delivers big win for Fed interest-rate betsFed’s Waller issues stark warning on inflation, interest ratesGoldman hints at Fed’s next interest-rate bet under WarshMoynihan said businesses are worried about “the cost of goods that’s coming through the pipeline,” as higher energy costs feed into plastics, materials, manufacturing, and transportation.In effect, that has complicated the economic outlook.The delayed pass-through helps to explain why Bank of America’s economists see “inflation staying higher all the way into 2027 and 2028.”Moreover, that forecast led to a steep reversal in the bank’s interest-rate outlook. Moynihan said that six months ago, the team expected the Federal Reserve to cut rates. Now, the team says, “our belief is we’ll raise rates” to contain consistent inflation.He indicated that the tightening cycle would likely begin “more towards the end of the year,” with additional increases potentially extending into next year.For perspective, as of its June 2026 outlook, I reported that BofA expects three quarter-point Fed rate hikes, in September, October, and December 2026, totaling 0.75 points. Taken collectively, that forms a remarkably uncomfortable setup, where inflation will take “a long time to squeeze out of the system,” while renewed rate hikes add more pressure to already-strained household budgets.

Bank of America CEO Brian Moynihan discusses inflation, interest rates, and the U.S. economy during a “Face the Nation” interview.Chip Somodevilla/Getty Images

Why inflation could outlast the oil shockMoynihan’s warning of a greater risk is that the shock spreads beyond underlying prices, keeping monetary policy restrictive even as gasoline prices retreat.According to the Fed’s summary of economic projections, the bank expects 2026 headline PCE inflation of 3.6% and core PCE of 3.3% (median). Moreover, according to the Bureau of Economic Analysis, headline PCE was already running at 4.1% in May, while core PCE stood at 3.4%.According to its June projections, officials forecasted headline PCE to drop to 2.3% in 2027 and 2% in 2028, with core inflation easing to 2.5% and 2.1%, respectively.At the same time, the Energy Information Administration expects average gasoline prices to decline from $3.64 per gallon in 2026 to $3.09 in 2027, according to Energies Media.So the higher-for-longer inflation thesis only sticks if there are second-round effects.That would include fuel and freight costs being passed through to goods, businesses defending margins through price bumps, workers seeking compensation for lost purchasing power, and consumers beginning to expect faster inflation.BofA’s thesis weakens if gasoline follows the EIA’s path, while core services, wages, and inflation expectations simultaneously cool. Moynihan sees an economy pulling apart Another major arc from the interview was Moynihan’s comments, which reinforce the idea that America is running on two economic tracks.“Affordability is a challenge,” he said, pointing to pressure from gas, food, and inflation. Yet Bank of America’s 70 million customers are still spending roughly 6% more in June than a year earlier, indicating that headline consumption still remains resilient.However, there’s a clear split, which the bank’s been talking about for weeks.Moynihan said spending among the “middle third” and “top third” of households is growing more quickly, while wage growth across income groups has only recently “coalesced together around 3% to 4%.”That feeds into another piece I did on BofA’s earlier description of a K-shaped economy, with “reflation for higher income, stagflation for lower income.”In that particular outlook, spending by the top 1% rose 9%, versus 5.5% for lower-income households.Interestingly, those frustrations were echoed by Vice President JD Vance during an appearance on “The Joe Rogan Experience” podcast.“In some ways, the game is rigged,” Vance said. “We ran the experiment of offshoring all of our industrial jobs, becoming a services-and-finance economy, and allowing Wall Street to come in and buy every asset of modern life and turn it into an investable, line-goes-up asset.”On top of that, recent investing trends underscore incredible frustration among younger retail investors, who are willing to take on much more risk to achieve outsized gains. The crypto mania gave way to meme stocks during the pandemic, while prediction markets are the latest in this ongoing episode.For perspective, prediction platform Kalshi said that millions accessed its platform on a weekly basis, with volumes surging past $1 billion per week in late 2025, while combined monthly trading on Kalshi and Polymarket surged from under $5 billion in September 2025 to roughly $24 billion by April 2026. Moreover, the appetite for quick gains comes as more young adults remain at home.Federal Reserve data shows 49% of Americans under 30 lived with a parent in 2025, up 6 percentage points from 2022 and 12 points from 2019.What would three more rate hikes mean?I feel Moynihan’s warning becomes a lot more consequential once BofA’s forecast is converted into an actual policy rate.It’s important to note that the Fed is targeting a 3.5% to 3.75% range, according to CNBC.Three conventional quarter-point increases would lift that range to 4.25% to 4.5%, with a midpoint of 4.375%.Interestingly, that implied rate is roughly 0.63% above the Fed’s June median year-end projection of 3.75%. It is also higher than current market expectations. According to the Fed’s July Monetary Policy Report, futures imply an effective rate near 4% by year-end, or 0.3% above its current level.For consumers, a 0.75-point increase adds nearly $75 in annual interest for every $10,000 of fully repricing variable-rate debt. The consequences likely extend into housing affordability, small-cap refinancing, and long-duration stock valuations. For investors, renewed rate hikes raise discount rates, which in turn make future earnings a lot less valuable and pressuring richly valued growth stocks that have dominated markets. Small-cap companies might face higher refinancing expenses, while homebuilders and REITs would contend with sluggish affordability and demand.Banks will initially earn more on loans, though higher deposit expenses and eventual credit deterioration erode that benefit.BofA might revisit that call if multiple core PCE readings decisively softened, wage growth fell behind inflation, and unemployment began rising. Related: Cathie Wood sells $11.7 million of tumbling semiconductor stock

The Trump administration on Monday said it would slap 50% tariffs on some goods imported from Canada, in an effort to end what it sees as discriminatory trade practices by Ottawa against the U.S. automobile, dairy and alcohol industries.