Traffic jam in Shanghai (Lu Hongjie/Costfoto/Future Publishing via Getty Images)
Traffic jam in Shanghai (Lu Hongjie/Costfoto/Future Publishing via Getty Images)
Hey Snackers,
This could be the most significant scientific breakthrough of our times: MIT researchers confirmed that the perfect Oreo split is possible. FYI: “Oreologist” is a career path.
Stocks plunged for the week as investors digested some bummer corporate earnings (cough, Netflix) and fretted over the Fed’s rate hikes, which could slow growth even more. The S&P lost nearly 3% for the week, and the Dow had its worst day since 2020.
Also, big update for the Snackers: today Nick and Jack are relaunching the pod independently as “The Best One Yet.” Robinhood is stoked to be the exclusive sponsor, and we can’t wait to see what’s next.
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Stark contrast... While Americans fly to spring vacays (legally) unmasked, 26M people in Shanghai are under strict Covid lockdown, policed by robot dogs and drones. China's largest city has been on a monthlong freeze as the government enforces its zero-Covid policy. Last week Shanghai reported three Covid deaths, the first official fatalities of an outbreak that’s infected about 400K people since March. Despite a near-zero death rate and falling cases…
A city 3X the size of NYC... Shanghai accounts for a 10th of China's exports, but now the world's busiest port is at a virtual standstill. It’s hurting China: spending fell last month and unemployment hit the highest level since early in the pandemic. It’s also rippling across the global economy, disrupting everything from corporate profits to the ETA of your Shein order:
It could be worse than 2020… at least economically. That’s because the world’s been relying more on Chinese products since the pandemic started. China’s shares of global exports surged to 15.4% last year, the highest in a decade. Read: China’s lockdowns will likely have an even greater impact on inflation and global growth than they did the first time around.
Break out the breath mints… The great de-masking is here, and it’s confusing. Last week a federal judge tossed the mask mandate for transportation. Airlines like United, American, and JetBlue dropped their mask rules in response (some pilots did so midflight). Uber and Lyft followed suit. But the Biden admin is appealing the ruling. Travelers now face a maze of rules heading into the busy summer travel season: masks are optional on flights, but must be on for public transit (subways, buses, cabs) in cities like NY and LA.
Putting the “more” in mortgage... It’s a hard time to be a house hunter. In the past two years, inventory sank to a 20-year low just as home prices started hitting record highs. Now mortgage rates are above 5% — their highest level in a decade. Soaring rates are making it more expensive for buyers to borrow $$, if they’re lucky enough to win a bid. Though rising rates are already starting to cool demand, experts expect housing prices to stay high for a while. Some economists even worry the US is at risk of another housing bubble.
Growing, growing, gone... Big Tech may be in for a bumpy earnings week. Last week, Netflix reported a subscriber loss for the first time in a decade, which wiped $50B from its market cap. It’s not the only techie stalling out: in February, Meta posted its first user drop ever. Other tech giants face a combo of labor, inflation, and regulatory issues. We’ll see if the pandemic profit party’s ending for Microsoft, Google, Apple, and Amazon when they report this week, and whether Meta has reversed its last quarter’s user shrinkage.
Treat-yo-self season... is still here. Visa and Mastercard are seeing a spike in swipes as you splurge on new fits and dining out. Last quarter, both saw revenues jump 25%. Now higher credit costs (which rise with interest rates) could boost payments from card holders. Plus, this month Visa and Mastercard plan to raise swipe fees for merchants, which make up the bulk of their profits. But since those fee hikes are passed to customers, lawmakers are calling for them to be shelved. Still, the swipe fees could push profits close to records when they report this week.
Nearly 12B spam texts were sent last month in the US. That’s about 40 texts for every American
Authors of this Snacks own: shares of Netflix, Apple, Alphabet, Starbucks, Ford, GM, Tesla, Amazon, Disney, Microsoft, Uber, and Spotify
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