Hey Snackers,
RIP, selfie sticks: Snap is launching a mini drone called Pixy that follows you around snapping pics before landing back in your palm.
The market theme of April: big red. The S&P 500 had its worst month since March 2020, while the tech-heavy Nasdaq capped off its worst month since 2008, plunging a whopping 13%. Big Tech earnings weren’t encouraging for investors, who are stressing over sticky inflation and a hawkish Fed. The central bank is set to raise rates again this week.
New season dropped... We're not talking “Ozark.” Investors have had eagle eyes this earnings season on how corporates are managing a unique economic hot mess (inflation, war, China's Covid crackdown). What we've learned so far:
Change is the only constant... A year ago, the "Big Tech 5" demolished earnings with jaw-dropping records. The economy was in full rebound mode and cyclicals were raking it in. Now:
Versus…
The market’s getting defensive… It used to be “growth at all costs” — now it’s “steady earnings and cut costs.” Amazon, Meta, and Netflix plan to slow investments and be more financially disciplined. Companies and investors are getting used to the “new not normal” environment: persistently high inflation and supply shocks. While the techy Nasdaq just had its worst month since 2008, the pile-on into defensive stocks could continue.
Face-palm… Palm oil, which is in half of your groceries, is about to get pricier. Indonesia, the world’s largest palm-oil producer, banned exports to keep prices in check for local consumers. That’s bad news for Hormel, Colgate-Palmolive, and Yum! Brands, who use palm oil in Skippy peanut butter, toothpaste, and even KFC chicken. Global food supplies were already strained by Russia’s war on Ukraine and historic droughts. Now Indonesia’s ban could send record food prices higher — especially in poorer countries that depend on palm oil for cooking.
Don’t forget to call Mom… Sunday’s Mother’s Day. For America’s 30M+ working moms, the past two years have been disproportionately hard. Mothers have been more likely to work in service jobs heavily affected by pandemic closures, and they’ve been 3X as likely as fathers to lose their jobs early on during lockdowns. Nearly 2M women still haven’t returned to the labor force, and economists aren’t sure how many of them ever will. Those who do face a “motherhood penalty” — a pay gap between moms and non-moms that can be wider than the pay gap between men and women.
Big pharma’s vaccine ceiling… A year ago, the US was in the thick of the biggest vaccination campaign in history. Now, about two-thirds of the population is fully vaccinated, and Dr. Fauci says we’re “out of the pandemic phase.” Pfizer and Moderna, now household names, are looking for their next profit puppies. Pfizer, with a diverse drug portfolio and pipeline, is expecting a $22B boost this year from its Covid antiviral pill, while Moderna is trying to be the first to bring its vax to little kids. We’ll get a checkup on the vax makers’ next bets when both report this week.
Grab a mint julep and your lucky hat… because the Kentucky Derby’s this weekend, and it’s gonna be packed. Churchill Downs, the $8B (valuation) casino biz that runs the iconic horse race, is entering its big weekend feeling lucky: last week it reported record sales and profits for last quarter. Churchill grew its online gambling biz during the pandemic, when IRL betting was restricted. Now that gamblers are returning to the track, business is booming. Churchill expects to post record Derby revenue this weekend as possibly 3X as many fans attend compared with last year.
Authors of this Snacks own: shares of Amazon, Apple, Moderna, Google, Microsoft, Starbucks, NYT, Block, Berkshire Hathaway, Netflix, Snap, Pfizer, Walmart, and Twitter
ID: 2180262