Room service: deliver the hotel earnings [janiecbros/ E+ via GettyImages]
Hey Snackers,
Quote of the week, from the Dutch teen who flew to space with Jeff Bezos: "I told Jeff, like, I’ve actually never bought something from Amazon.” Prime move.
Big Tech companies dropped killer quarterly earnings yet again (peep our tech roundup here). But stocks slipped from their highs last week, after the Fed hinted it's getting closer to rolling back its economy-reviving money policies. About that...
Wait for the beat drop... The stock market has been giving off manatee meme energy. While stocks dipped last week, they've been cruising around records thanks to vaccines, $6T in stimulus, and the Fed's economy-boosting rate policies. Low interest rates make borrowing cheaper (think: mortgages, biz loans) — plus, they make stocks more attractive compared to less risky investments. All these factors helped the S&P 500 soar a whopping 35% over the past year. But how is that translating to American wallets?
Now drop the stats... Income inequality is nearly the highest in at least half a century. The top 1% of Americans have 16X the wealth of the bottom half, compared to 6X in 1990. Here's why:
Some benefit way more than others… from a booming market. While most Americans got wealthier, the rich got way richer — that's because the top 20% of earners own nearly all the stocks held by US households. That could change as retail participation in the market continues expanding: last year, more than half of US households invested in stocks, up from one quarter in the '80s. Still: factors like wage gaps, technological changes, and globalization remain at the center of US wealth inequality.
Need more chips... Not the salty kind. Tesla posted record profit and deliveries for last quarter, and Apple had its best third quarter ever. The bad news: Apple and Tesla are the latest victims of the global chip shortage, which has been affecting everything from smartphones to cars. Apple warned that shortages will affect iPhone production, while Technoking Elon is worried about Cybertrucks. You’d think chipmakers like Intel and Samsung would be celebrating, but they're facing their own supply chain struggles.
The crackdown continues... Chinese tech stocks lost hundreds of billions of dollars of combined market cap in July, as regulators came down on giants like Alibaba (Amazon of China), Didi (Uber of China), and TikTok-owner ByteDance. The latest victims: ed tech and food delivery companies. China wants to make it cheaper for families to have more kids, and education and food represent big costs. Now, some Chinese tech companies like Weibo and Didi are reportedly considering going private to avoid more volatility.
Don't check in all at once... It's travel week, with Hilton, Hyatt, Marriott, Expedia, Tripadvisor, Booking, and Wynn Resorts all dropping earnings (now breathe). TSA traveler volumes are back to 80% of pre-pandemic levels, as you unwrap Biscoff cookies en route to Miami. US weekly hotel occupancy has reached its highest level since 2019, while room rates are pricier than ever. Hotel and travel stocks have soared this year as vacays return. But rising Covid cases and returning restrictions could put a damper on the rebound.
Save the date... Dating legend Match Group unveils earnings tomorrow. Match owns Tinder, Hinge, OkCupid, and 20+ other e-romance apps. Last year, Match's sales jumped 17% as you spent romantic nights in bed swiping. Thanks to vaccines and reopening, happy hour dates are back and people are craving IRL connections more than ever. According to a WSJ survey: 87% of people plan to maintain or boost time spent on dating apps in the next several months. That could boost biz for Match and Bumble.
Authors of this Snacks own shares of: Amazon, Google, Apple, and Microsoft
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