— August 24 Is the Most Popular Sick Day for Workers; Goldman Sachs Enforces 5-Day Office Return; Peloton Shares Plunge 27%; US Existing Home Sales Hit New Low; Zero-Day Options Arrive in Europe; US New Home Sales and Prices Rise; $1.2 Trillion in CRE Loans at Risk
1. August 24 Is the Most Popular Sick Day for Workers
Flamingo, a company that helps businesses track employee absences and sick days, recently released a noteworthy report.
The report shows that August 24 has the highest number of U.S. employees calling in sick. Another “popular” sick day is February 13 — near the Super Bowl and Valentine’s Day.
Among the reasons cited for sick leave, stomach issues made up more than half. Most of the symptoms listed were vomiting and diarrhea, even surpassing COVID-related absences, which accounted for 25%.
Beyond physical illness, Paaras Parker, Chief Human Resources Officer at payroll software company Paycor, noted that more employees are taking time off for mental stress and anxiety, as they need time to rest and recover.
Mental health-related sick days accounted for 9% of Flamingo’s statistics — a number employers should pay attention to.
______
2. Goldman Sachs Enforces 5-Day Office Return
Sources say Goldman Sachs Group Inc. has recently started cracking down on employees who don’t show up to the office five days a week.
While most revenue-generating staff have returned to full-time in-office work, a significant portion of employees are still not fully compliant.
Recently, Citigroup warned that failure to comply with in-office mandates could affect employee compensation.
Back in April, JPMorgan also stated that managers should be in the office every working day.
Across the ten largest U.S. business districts, commuter volumes are still less than half of pre-pandemic levels.
______
3. Peloton Shares Plunge 27%
Today, fitness equipment company Peloton announced that revenue for the July to September quarter is expected to be between $580 million and $600 million — falling short of Wall Street’s $656 million estimate.
Peloton also lowered its full-year revenue guidance, mainly because demand for its bikes and treadmills has declined more than anticipated. The company said consumers are now spending more on travel and entertainment.
Adding to the problem, the recall of bike seat posts ended up costing more than expected.
The “boom” Peloton enjoyed during the pandemic is now long gone.
Before the market opened, Peloton shares plunged 27% to $5.11.
______
4. US Existing Home Sales Hit New Low
On Tuesday, the National Association of Realtors (NAR) reported that U.S. existing home sales fell 2.2% in July to a seasonally adjusted annual rate of 4.07 million — the lowest level so far this year and below nearly all economists’ forecasts.
On an unadjusted basis, July’s existing home sales were down 18% year-over-year.
The NAR report noted that 74% of sold homes were off the market within one month. Homes stayed on the market for an average of 20 days — up from 18 days in June.
The median sales price rose 1.9% year-over-year to $406,700.
______
5. Zero-Day Options Arrive in Europe
Next Monday, Eurex — the derivatives exchange operated by Deutsche Börse — will launch same-day expiry Stoxx 50 index options, also known as 0DTE (zero-day to expiry) options.
Since the pandemic, zero-day options on the S&P 500 have become increasingly popular. These now account for 40% of the S&P 500’s 2.8 million daily options trades.
Traders use 0DTE options to speculate on or hedge against major same-day events such as economic data releases, earnings reports, or Federal Reserve meetings.
However, these highly volatile instruments carry risks that may trigger sudden stock selloffs.
The popularity and high volume of 0DTE options have significantly boosted revenues for CBOE Global Markets — the largest options exchange in the U.S.
Eurex stated it launched the product in response to consumer demand.
______
6. US New Home Sales and Prices Rise
Today, the U.S. government reported that July sales of newly built homes rose 4.4% month-over-month to a seasonally adjusted annual rate of 714,000 units — the highest in over a year.
High interest rates have discouraged existing homeowners from moving, leading to a tight supply of resale homes. As a result, buyers and builders are shifting their focus to new homes.
According to the U.S. Commerce Department, the median price of new homes rose in July to $436,700 — well above pre-pandemic levels.
As of the end of July, there were 437,000 new homes for sale. At the current pace, it would take 7.3 months to sell them all.
The number of new homes sold before construction began dropped to its lowest level this year.
______
7. $1.2 Trillion in CRE Loans at Risk
According to data from brokerage Newmark Group, a total of $1.2 trillion in U.S. commercial real estate (CRE) loans may be at risk — primarily due to high loan-to-value ratios and declining property valuations.
Newmark data shows that by the end of 2025, $626 billion in office loans will mature — accounting for more than 50% of the total.
When these loans come due, owners will need to refinance at much higher interest rates. Highly leveraged owners may choose to walk away from the debt altogether.
Compared to their March 2022 peak, office property values have already declined by 31%.
______
This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.