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    GSK says RSV vaccine for older adults provides protection over two seasons

    GlaxoSmithKline’s vaccine to protect adults ages 60 and older from respiratory syncytial virus, or RSV, remained effective across two seasons, the company said.
    New phase three clinical trial results suggest seniors may only need to take the RSV vaccine every other year.
    The London-based pharmaceutical company presented the results to an advisory committee of the Centers for Disease Control and Prevention.
    That panel will consider when and how often the jab should be administered.

    Respiratory syncytial virus viral vaccine under research.
    Hailshadow | Istock | Getty Images

    GlaxoSmithKline on Wednesday said its vaccine to protect adults ages 60 and older from respiratory syncytial virus, or RSV, remained effective across two seasons of the disease.
    A single dose of the shot was 67.2% effective in preventing lower respiratory tract illness over two RSV seasons, according to new results from a phase three clinical trial. That’s compared with 82% after one viral season, which typically lasts from October to March in the Northern Hemisphere. 

    The shot was also 78.8% effective against severe RSV disease after two seasons, compared with 94% after one season. Severe disease refers to cases that prevent normal, daily activities.
    The London-based company said high efficacy was similarly maintained in older adults with underlying conditions, who are most at risk of severe RSV.
    GSK also evaluated the effectiveness of an annual vaccination schedule, which involves administering a second dose of its shot after a year. The company said the cumulative efficacy of two doses was 67.1%, “suggesting revaccination after 12 months does not appear to confer additional benefit for the overall population.” 
    That means the vaccine may only need to be administered every other year, which could give GSK an edge over RSV shot rivals such as Pfizer and make it easier for seniors to protect themselves against the virus.
    RSV usually causes mild, cold-like symptoms. Each year the virus kills between 6,000 and 10,000 seniors as well as a few hundred children younger than 5, according to the Centers for Disease Control and Prevention.

    GSK presented the results to an advisory committee of the CDC on Wednesday. The committee will form a recommendation on when and how often the company’s RSV shot — and a vaccine from rival Pfizer —  should be administered in the U.S.
    The Food and Drug Administration approved GSK’s vaccine in May, making it the world’s first authorized shot against RSV. 
    Pfizer’s RSV shot became the second to win approval shortly after. The company also presented new clinical trial data on its vaccine Wednesday. 
    That shot was roughly 49% effective against lower respiratory tract illness with two or more symptoms after 18 months, which is a steep decline from the shot’s 66.7% efficacy at one year. 
    Neither drugmaker has established a list price for its vaccine. More

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    These ‘A.I. humans’ are letting gamers modify their voices in real time

    Voicemod, which is based in Valencia, Spain, on Wednesday released 20 humanlike characters, ranging from a 20-something woman to an elderly man.
    Users can change their voice to that of several different voices, from a high-pitched female speaker to a baritone male voice.
    Used by more than 40 million people, Voicemod’s tech can be used by people in the social app Discord to speak with each other in voices other than their own while playing games. 

    Voicemod has created 20 “AI humans,” digital personas that allow gamers to speak in voices other than their own.

    An artificial intelligence firm in Spain has unveiled a number of “AI humans” that allow people to modify their voices in video games — in real time.
    Voicemod, which is based in Valencia, on Wednesday released 20 humanlike characters, ranging from a 20-something woman to an elderly man. The voices are trained on voices from professional human voice actors. 

    In a demonstration of the tech on a call with CNBC, Voicemod’s CEO, Jaime Bosch, showed himself speaking regularly and changing it to several different voices, from a high-pitched female speaker to a baritone male voice.
    Gamers can download the app on their Apple Mac or Windows PC and incorporate Voicemod’s technology as a “virtual microphone” that sits in between the microphone application they’re using to start speaking through the alternative personas. 
    Voicemod, which counts talent from leading technical universities in Valencia and Barcelona, has been working on voice synthesis and interactive audio features since 2014, with many of its employees specializing in music technology and audio. 
    Used by more than 40 million people, Voicemod’s tech can be used by people in the social app Discord to speak with each other in voices other than their own while playing games. 
    “We have an amazing creativity community using this mainly to have fun, enjoy it with their friends and have a sense of belonging,” Bosch said in an interview with CNBC.

    “One of the biggest use cases I love the most is shy people — we have some people who write to us saying I wasn’t able to really socialize with people who are now able to do that.”
    It’s a milestone in the world of conversational AI. While many of today’s AI algorithms allow people to submit text and receive something AI generated back, the feat of ensuring this is done in real time is much harder.
    The technology requires a significant amount of computing power. And producing and patenting the proprietary algorithm models behind it takes a lot of investment, and talent. 
    To that end, Voicemod has raised $23 million in cash from several venture capitalists including Leadwind and Bitkraft Ventures.
    Bosch is also no stranger to the risks surrounding how the technology can end up being abused — voice-changing technology could be used to imitate leading political figures or scam people, for example.
    “This is something I think of every single day, something we’re thinking about in the company every single day when it comes to the creation of voices,” he said.
    The company is close to finishing a “watermarking” solution that can identify whether voices have been generated using modification systems. It is also in discussions with other firms about standardization of such systems and ensuring voice-changing tech is released safely.
    “One thing is, clear laws will come,” Bosch said. “We know Europe is working on that. The reality is that, usually, companies go faster than the laws.”
    WATCH: Cannes Lions 2023: AI won’t make markets lazy — TBWA CEO More

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    Powell expects more Fed rate hikes ahead as inflation fight ‘has a long way to go’

    Federal Reserve Chairman Jerome Powell on Wednesday affirmed that more interest rate increases are likely ahead as inflation is “well above” where it should be.
    “Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go,” he said.
    Powell said the labor market is still tight though there are signs that conditions are loosening.

    Federal Reserve Board Chairman Jerome Powell departs after speaking during a news conference following the Federal Open Market Committee meeting, at the Federal Reserve in Washington, DC, on June 14, 2023. 
    Mandel Ngan | AFP | Getty Images

    Federal Reserve Chairman Jerome Powell on Wednesday affirmed that more interest rate increases are likely ahead until more progress is made on bringing down inflation.
    Speaking a week after Federal Open Market Committee officials decided for the first time in more than a year not to push rates higher, the central bank leader indicated that the move likely was just a brief respite rather than an indication that the Fed is done hiking.

    “Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” Powell said in prepared remarks for testimony he will deliver to the House Financial Services Committee. The speech is part of his semiannual appearance on Capitol Hill to update lawmakers on monetary policy.
    Following last week’s two-day FOMC meeting, officials indicated they see rate increases totaling 0.5 percentage point through the end of 2023. That would indicate two additional hikes, assuming quarter-point moves. The Fed’s benchmark borrowing rate is currently pegged in a range between 5%-5.25%.
    Noting that inflation has cooled but “remains well above” the Fed’s 2% target, Powell said the central bank still has more work to do.
    “Inflation has moderated somewhat since the middle of last year,” he said. “Nonetheless, inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go.”
    Fed officials generally prefer to look at “core” inflation, which excludes food and energy prices. That is showing inflation running at a 4.7% year-over-year rate through April, according to the central bank’s preferred measure of personal consumption expenditures prices. The core consumer price index for May was at 5.3%.

    Monetary policy moves, such as rate hikes and the Fed’s efforts to shed bond holdings on its balance sheet, tend to work with lags. As such, officials decided to skip hiking at this month’s meeting as they observed the impact that policy tightening has had on the economy.
    Powell said the labor market is still tight though there are signs that conditions are loosening, such as an increase in labor force participation in the prime 25-to-54 age group and some moderating in wages. However, he noted that the number of open jobs still far exceeds the available labor pool.
    “We have been seeing the effects of our policy tightening on demand in the most interest rate-sensitive sectors of the economy,” he said. “It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation.”
    Inflation expectations, considered a key variable for where prices are heading over time, are “well-anchored,” Powell said. The closely watched University of Michigan consumer confidence survey, for instance, showed that the inflation outlook for a year from now dipped to 3.3%, the lowest since March 2021.
    However, Powell also noted that getting inflation lower will require slowing down the economy to below-trend growth. He also emphasized that rate decisions will be made based on incoming data and meeting by meeting, rather than on a preset course.
    The remarks also briefly touched on the banking turmoil earlier in the year. Powell said the episode served as a reminder that the Fed needs to make sure its supervisory and regulatory practices are appropriate. More

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    4 ways ‘anchoring bias’ can hurt you financially

    “Anchoring bias” is a cognitive bias whereby humans unconsciously rely on an initial number or piece of information when making future decisions.
    It’s a type of mental shortcut that may have negative implications for consumers in the context of shopping, retirement savings, investing and negotiating.

    Gilaxia | E+ | Getty Images

    Humans use mental shortcuts in everyday life to help process information and make speedy decisions. But they can lead to bad choices when it comes to personal finance.
    Some of those poor outcomes are the result of “anchoring bias,” which can undermine a consumer’s rational thinking.

    This cognitive bias causes the brain to overly rely on initial impressions or numbers to shape subsequent thoughts and judgments. In other words, that early information “anchors” future choices.
    It’s “the idea that you get a number stuck in your head subconsciously,” said Jennifer Itzkowitz, associate professor of finance at Seton Hall University, who has studied anchoring bias in investing. “And it influences future decision-making.”
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    Humans are more likely to default to these mental shortcuts — known as “heuristics” in psychology jargon — when confronted by complex subjects like finance, when consumers may feel overwhelmed by information, Itzkowitz said.
    “You have to be aware this bias exists or you will fall prey to it daily,” said Bradley Klontz, a certified financial planner based in Boulder, Colorado, and a founder of the Financial Psychology Institute.

    Here are some ways anchoring bias may play a role in your financial life.

    1. A 401(k) match can be an unintentional anchor

    “Anchors” can be intentional or unintentional, said Klontz, a member of CNBC’s Advisor Council.
    A 401(k) match can serve as an unintentional anchor. Companies choose the respective structure of their 401(k) match — and that structure may inadvertently influence a worker’s savings rate.
    For example, a company may opt to pay a match worth up to 3% of a worker’s salary. As a result, workers may think saving 3% of their income in a 401(k) is adequate for their retirement savings — when it likely falls short.
    Conversely, employers can use the anchoring concept to boost savings. For example, Google found that sending e-mails to its employees that promoted relatively high anchors (like a contribution rate of 10% or 20%) influenced workers to boost savings.

    2. For shoppers, the first price seen sticks

    On the other hand, many retailers use the anchoring principle intentionally to influence consumer buying behavior, Klontz said.
    This often shows up when stores advertise a sale, he said.
    For example, a retailer may mark down a pair of pants from $60 to $30. Consumers tend to judge the sale price relative to the original, so the new price appears cheap. But when viewed objectively, $30 isn’t necessarily a good deal for consumers — especially if a regular stream of store sales means the pants are never $60.
    Take another example from the Corporate Finance Institute: If consumers first see a T-shirt that costs $1,200, and then see a second one that costs $100, they’ll likely see the second shirt as cheap. However, if that person had only seen the second shirt, priced at $100, they probably wouldn’t think it was inexpensive.

    Jamie Grill | The Image Bank | Getty Images

    Or, take this example relative to planning a vacation, from job site Indeed: A couple might find all-inclusive tickets to Hawaii for $800 each. Then, they subsequently find tickets to Puerto Rico for $400 each, but the tickets only cover airfare. The couple might choose the Puerto Rico trip to save money, but end up paying the same amount after additional costs for a hotel room and dining are included.
    “The anchor — the first price that you saw — unduly influenced your opinion,” wrote Tim Vipond, board chair of CFI Education.

    3. Investing apps: Starting small can leave you short

    katleho Seisa | Getty

    Some mobile apps for investing entice customers by suggesting they can get started with as little as $5, Itzkowitz said.
    The advertisement is meant to bring investing to the masses in a low-cost way, but may inadvertently anchor users to a paltry savings amount, she said. In turn, savers may have a false sense of financial security, she added.
    “Whatever people spend on their first stock purchase, they continue spending that exact same amount,” said Itzkowitz, who recently co-authored a research paper studying anchoring in investment trading platforms like Stash, Robinhood, SoFi, and Stockpile.

    Encouraging investors to start with a micro-investment “leads to lower wealth accumulation in this brokerage account due to anchoring bias,” according to the paper.
    This is true across all groups regardless of factors like income, age and gender, Itzkowitz said.

    4. In negotiations, anchor bias is a tricky tactic

    Companies and people use anchoring as a common negotiating tactic, relative to salary negotiations or a sale, for example, Klontz said.
    For example, during the hiring process, a company may try to anchor a prospective hire to a low initial salary offer. Any increase from there may feel like a win for the prospective worker but be on par with what the employer had initially hoped.
    Ultimately, the key to countering anchoring bias is to continually question your financial instincts.
    “Assume these things are being used in nefarious way to separate you from your money,” Klontz said. “Always be second-guessing yourself.” More

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    Pfizer RSV vaccine for older adults is only slightly less effective after 18 months

    Pfizer’s vaccine that protects adults ages 60 and older from respiratory syncytial virus, or RSV, was slightly less effective after 18 months, according to clinical trial results.
    The data suggests that the protection the vaccine provides wanes over time, similar to what is observed with shots for Covid and the flu.
    The New-York based pharmaceutical company will present the results to an advisory committee of the Centers for Disease Control and Prevention.
    Pfizer expects to release 24-month data later this year, which will provide a better picture of the shot’s durability.

    Respiratory syncytial virus – viral vaccine under research
    Hailshadow | Istock | Getty Images

    Pfizer’s vaccine that protects adults ages 60 and older from respiratory syncytial virus was slightly less effective after 18 months, according to clinical trial results the company announced Wednesday. 
    The data is from New York-based Pfizer’s clinical trial on more than 34,000 older adults over two RSV seasons, or 24 months. The latest data is specifically on participants in the Northern Hemisphere at “mid-season two” in the trial, which is around 18 months after vaccination. 

    The shot was 78.6% effective against more severe lower respiratory tract illness with three or more symptoms after 18 months, down marginally from 85.7% at one year. Those symptoms include wheezing, shortness of breath, rapid and shallow breathing, and mucus production.
    The vaccine was roughly 49% effective against the same condition with two or more symptoms after 18 months, according to Pfizer. That’s a steeper decline from the shot’s 66.7% efficacy at one year. 
    The vaccine was generally well tolerated, with no adverse events reported by participants at the 18-month mark. 
    Pfizer presented the results to an advisory committee of the Centers for Disease Control and Prevention on Wednesday. The committee will form a recommendation on when and how often the company’s RSV shot should be administered in the U.S. now that the Food and Drug Administration has approved the jab. 
    Pfizer’s RSV vaccine is the second to win approval after a shot from GlaxoSmithKline, which will present similar longer-term data on Wednesday. 

    Pfizer’s results are a first glimpse at its vaccine’s durability in protecting against RSV, which causes mild symptoms similar to a cold in most people but more severe infections in older adults and children.
    The data suggests that the protection the vaccine provides slowly wanes over time, similar to what is observed with shots for Covid and the flu.
    But the 18-month data also suggests Pfizer’s shot is still generally protective against RSV after one year.
    It’s still unclear what the vaccine’s efficacy will look like at 24 months. Pfizer expects to release that data later this year, which will provide a better picture of the shot’s durability.
    Annaliesa Anderson, head of Pfizer’s vaccine research and development, told CNBC that the company is “very encouraged” by data from the phase three clinical trial. 
    She noted the vaccine maintained high efficacy against lower respiratory tract illness with three or more symptoms, which is more severe than the same condition with two or more symptoms. 
    “As with most vaccines, you’re really looking for an impact against more severe disease that causes higher levels of mortality, morbidity and health-care associated contact,” Anderson told CNBC. “To be able to see high efficacy carrying on is very important to us, and we think it’s going to provide people comfort as they take the vaccine.”
    Pfizer hasn’t released data on the effectiveness of its vaccine against severe RSV disease defined as a patient requiring hospitalization, oxygen support or a mechanical ventilator. 
    Anderson said studies are ongoing, and so is research evaluating the shot’s efficacy in older adults with weak immune systems. 
    RSV kills 6,000 to 10,000 older adults and hospitalizes 60,000 to 160,000 of them every year, according to the CDC. 
    The risk of hospitalization increases with age, and adults ages 70 and older are more vulnerable.
    Pfizer estimates that if 50% of people ages 60 and older receive its shot for older adults, the vaccine could prevent more than 5,000 deaths, 68,000 hospitalizations, 51,000 emergency department visits and more than 422,000 outpatient visits. More

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    Weekly mortgage demand was flat, even as interest rates drop for the third straight week

    Last week the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.73% from 6.77%.
    Applications to refinance a home loan fell 2% for the week and were 40% lower than the same week one year ago.
    Mortgage applications to purchase a home increased 2% for the week but were 32% lower than the same week a year ago.

    The average rate on the most popular mortgage, the 30-year fixed, fell for the third straight week, but demand for mortgages didn’t move much.
    Total mortgage application volume increased 0.5% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. This after demand surged the week before.

    Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.73% from 6.77%, with points falling to 0.64 from 0.65 (including the origination fee) for loans with a 20% down payment.
    The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) increased to 6.80% from 6.79% for loans with a 20% down payment. This marks the second straight week that jumbo loans have a higher rate than conforming loans.
    “The last time jumbo rates were higher was in December 2021. Tighter liquidity conditions have prompted jumbo lenders to pull back, increasing rates in the process,” wrote Joel Kan, an MBA economist, in a release.
    Applications to refinance a home loan decreased 2% for the week and were 40% lower than the same week one year ago.
    Mortgage applications to purchase a home increased 2% for the week but were 32% lower than the same week a year ago. Homebuyers are starting to get used to higher interest rates, but the continued drop in new listings of homes for sale is keeping sales low. Federal Housing Administration demand rose more than conventional loan demand.

    “First-time homebuyers account for a large share of FHA purchase loans, and this increase is a sign that while buyer interest is there, activity continues to be constrained by low levels of affordable inventory,” added Kan.
    Homebuilders are benefiting from the dynamic. Mortgage applications to purchase a newly built home jumped 17% in May compared with May 2022, according to the MBA. In tandem with demand, single-family housing starts jumped 18.5% in May compared with April, according to the U.S. Census.
    Mortgage rates began this week slightly lower, but that could change Wednesday as investors react to testimony from Federal Reserve Chairman Jerome Powell before the House Financial Services Committee. More

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    Stocks making the biggest moves premarket: Spotify, FedEx, Tesla, Coinbase and more

    A woman walks past FedEx Corp. Ground vehicle parked in the Midtown neighborhood of New York, U.S., on Friday, Dec. 4, 2015.
    John Taggart | Bloomberg | Getty Images

    Check out the companies making headlines in premarket trading.
    FedEx — Shares slipped 2.9% after the shipping giant reported quarterly results. The company notched an earning beat with an adjusted $4.94 per share against a Refinitiv consensus estimate of $4.89 per share. However, revenue came in below expectations at $21.93 billion. FedEx executives also provided roughly flat revenue guidance, and said chief financial officer Mike Lenz would retire on July 31.

    Coinbase, Riot Platforms — The crypto exchange stock climbed nearly 3% in premarket trading, seemingly aided by the surge in bitcoin’s 7.8% climb, while crypto mining firm Riot added 3.4%. Coinbase has faced a multiple headwinds recently, from an ongoing spat with the U.S. Securities and Exchange Commission to BlackRock’s launch of its own bitcoin exchange-traded fund.
    MicroStrategy — The cloud services firm with exposure to bitcoin added 2.9% in premarket trading, following other names higher. Shares have climbed more than 121% so far in 2023 and 8.7% over the past month.
    Tesla — Shares of the electric vehicle giant added 1.2% even after a downgrade from Barclays to equal weight from overweight. The bank warned investors that it may be prudent to “to move to the sidelines” after its recent rally. Tesla shares are up more than 52% over the past month.
    Winnebago Industries — The motorhome manufacturer slipped 4.7% after quarterly results. The company reported an adjusted $2.13 per share against estimates of $1.78, according to FactSet. However, the firm also reported a 38.2% decline in revenue to $900.8 million, which executives attributed largely to a more challenging RV market and steeper discounts.
    Spotify — Shares of the music streaming service rose about 2% in premarket trading after Wolfe Research upgraded Spotify to outperform from peer perform. Price increases and growth in advertising should help Spotify grow its revenue, according to Wolfe.

    Rivian — The EV maker climbed 1.6% premarket. A day earlier, the company announced that its customers would have access to Tesla’s network of charging stations starting next year.
    Exact Sciences — Shares added 6% on news of research agreements with The MIT and Harvard Broad Institute to exclusively use the company’s molecular residual disease diagnostic testing platform.
    — CNBC’s Jesse Pound contributed reporting More

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    Target races to bring next-day delivery to customers farther from city centers

    The big-box retailer said Wednesday that it is testing an extension facility that helps it get online orders to more shoppers the day after they click “buy.”
    The discounter may open similar hubs in other major U.S. cities.
    The company’s e-commerce sales have declined, especially as shoppers buy fewer discretionary items.

    A Target logo is displayed on the screen of a smartphone.
    Sheldon Cooper | SOPA Images | Lightrocket | Getty Images

    Target has a new way to speed packages to customers who live in the farther-out suburbs and neighborhoods of major cities, as it tries to give its e-commerce business a jolt.
    The big-box retailer said Wednesday that it is testing an extension facility that helps it get online orders to more shoppers the day after they click “buy.” It opened the first one last month in Smyrna, Georgia, about 16 miles northwest of Atlanta, and may open them in other cities.

    Drivers from Target-owned delivery service Shipt pick up packages from the extension facility and deliver them to customers’ doorsteps. The drivers are independent contractors, similar to those who deliver for Uber.
    The extension facility is part of Target’s effort to offer next-day delivery to more customers. Early this year, it said it would spend $100 million over the next three years to build a larger network of supply chain hubs to support the effort.
    More than 96% of the company’s online orders are fulfilled at stores. The retailer has opened supply chain facilities, dubbed “sortation centers,” that then help group those boxes into denser and more efficient delivery routes. It has opened nine facilities and plans to have at least 15 by the end of January 2026.
    The extension facility adds to that model and expands the radius for faster deliveries.
    Target did not disclose the price of the extension center, but a spokesperson said it is not part of the planned $100 million in supply chain investments. Target said the extension facility will bring next-day delivery within reach of 500,000 more customers near Atlanta. It now can provide next-day delivery to a total of three million people in the Atlanta area.

    Target’s push to deliver online orders faster and more profitably comes as its e-commerce sales shrink and shoppers pull back on discretionary purchases. In the most recent quarter, which ended April 29, Target’s digital sales declined 3.4% year over year, mirroring the downward trend seen by Costco, Best Buy, Kohl’s and others. One of its rivals, Walmart, bucked the trend as online sales jumped 27% year over year in the U.S. in the fiscal first quarter.
    Plus, in recent weeks, several analysts have downgraded Target’s stock, saying its sales may have peaked during the Covid-19 pandemic. They cited a tougher backdrop for selling apparel and other items that aren’t food or necessities. Those challenges added to blowback Target has faced for including and then later removing some LGBTQ+ merchandise from its Pride Collection.
    Shares of the company have fallen about 11% this year, underperforming the 14% gains of the S&P 500. Its stock closed at $132.72 Tuesday, down nearly 30% from its 52-week high.
    On a call with reporters in May, Target CEO Brian Cornell said customers are still shopping online. Yet, he added, many items shipped directly to customers’ homes are discretionary merchandise — and those sales have slowed. More