Hey Snackers,
Because hands arenât enough, four engineering students have invented gluten-free edible tape to prevent your burrito from falling apart. Someone call Chipotle.
Stocks continued their roller-coaster moves last week, notching a major rebound after a big red plunge the week before. All three of the major market indexes gained over 6%, snapping their weeks-long losing streaks (seven weeks for the S&P 500 and Nasdaq, eight for the Dow).
Pride Month kicks off tomorrow. The month, chosen to commemorate the June 1969 Stonewall Uprising in NYC, is dedicated to celebrating and pushing for LGBTQ+ rights.
Moodier than a 13-year-old... the stock market right now. The S&P 500 went from flirting with a bear market (down nearly 20% from its record) to closing the week up 7%. After the plunge of March 2020 (FYI: the shortest bear market ever) stocks went full bull: the S&P doubled in value between March 2020 and January 2022. Then the plunge began.
The market â the economy... yet the economy affects the market. Company valuations are tied to growth expectations. Those have fallen, both for companies and the economy. After lockdowns began, trillions in govât stimulus $$ boosted spending and record-low interest rates made borrowing cheaper. Now:
Recessions are hard to predict⊠even as theyâre happening. The big Q is how severe the slowdown will be. That largely depends on whether the Fed can tame inflation without slamming the brakes on growth (raising rates too aggressively). On the plus side, there are signs inflation could be peaking. How long itâll take to return to ânormalâ is another question.
$7 of gas to commute⊠and tack on a $17 salad to the âreturn to workâ bill. Restaurant food prices are up 7% from last year, but go-tos like Chipotle and Starbucks saw strong sales last quarter as Americans proved willing to splurge. Sack lunches arenât much better: prices on staples from eggs to Cheerios have soared, driving revenue for grocers like Kroger and Costco. Yet consumers may be growing resistant: grocery leader Walmart said some are switching from gallons of milk to half-gallons and trading name brands for cheaper private labels.
Sunny with a chance of blackouts⊠Summer forecast: hot and unstable. Fuel shortages, supply snags, and the climate crisis could prevent the US power grid from squeezing out enough juice during an extra-hot summer. Much of the country could be in for rolling blackouts. Think: brief power outages that make it hard to work and kill the A/C. Blackouts might also hit Asia, Africa, and Europe, hurting people and productivity. Indiaâs economy may lose $100B this year from lost output during outages.
Slam-dunk szn⊠is coming to a head this week as the Boston Celtics prepare to face the Golden State Warriors in the NBA Finals. The second-most-watched US sports league sold out 59 consecutive games last month, rebounding after the number of paid fans at arenas had dropped 7% during the regular season. Postseason viewership is up 14% from last year â even without LeBron. Thatâs promising for the leagueâs bottom line: the NBA wants $75B (triple the current deal amount) from Disney (ABC, ESPN) and WarnerBrosDisco (Turner) to renew media rights in 2025.
Itâs wine oâclock somewhere⊠Booze sales at restaurants have surpassed pre-pandemic levels, as Netflix-and-sip loses favor to neighborhood happy hour. It doesnât mean people arenât uncorking at home: online and D2C alcohol sales have maintained their lockdown-era gains. Last quarter, winemaker Duckhorn saw sales jump 18% as consumers bought budget bottles in stores and winery visitors spent twice as much as last year. Weâll see if the good times are still flowing despite inflated costs when Duckhorn reports Thursday.
Authors of this Snacks own: bitcoin and ethereum and shares of Snap, Netflix, Amazon, Apple, Walmart, Tesla, Google, Starbucks, and Disney
ID: 2222523