Strong dollar benefits consumers, hits some US companies - June 8, 2022

The U.S. Dollar Index has risen roughly 13% over the past year, defying strong inflation to reach levels not seen since the early 2000s. The strong dollar is a benefit for consumers but harder on companies that rely on foreign sales. Microsoft – a global provider that gets most of its profit from abroad – cut its sales and earnings guidance, citing the U.S. dollar’s gains in foreign-exchange markets. Salesforce referenced similar concerns when it cut its annual sales outlook as did some drug companies that sell medicine and medical products in international markets. Over 82 million doses of COVID-19 vaccines distributed across the U.S. have gone to waste since the start of the pandemic, underscoring concerns surrounding the efficacy of the vaccine rollout. CVS and Walmart were together responsible for more than 25% of the doses that went to waste and Oklahoma and Alaska each threw away more than a quarter of their doses. The overall amount of waste is in line with the World Health Organization estimates for large vaccination campaigns but public health experts remain alarmed at numbers that show less than half of fully vaccinated Americans have a booster shot. Securitization packages of buy-now-pay-later loans from provider Affirm are falling in price after rising rates and the cost of living crisis cast a shadow over the sector. The stock slid further this week after Apple said it would enter the BNPL market, allowing iPhone users in the U.S. to make installment payments for purchases. Nearly half of Americans have used a BNPL service in the last year and 70% of those consumers admit to spending more than if they had to pay for everything upfront. Grocery bills have swelled as food prices see an increase of almost 11% compared to last year – more than overall inflation – but the cost of meat, specifically beef and pork, has soared beyond both measures. Tyson Foods, America’s largest meat producer, attributed the company’s price hikes to higher demand as well as increased labor and fuel costs combined with