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=E2=80=A6as the Fed tries to tame i= nflation, stocks are in the red
Disclosures
 
<= table align=3D"center" border=3D"0" cellpadding=3D"0" cellspacing=3D"0" rol= e=3D"presentation" style=3D"background:rgb(255, 255, 255);background-color:= rgb(255, 255, 255);width:100%;">
=

The market walking ahead of the economy (Owen S= mith/Getty Images)

 
<= div class=3D"mj-column-per-100 mj-outlook-group-fix" style=3D"font-size:0px= ;text-align:left;direction:ltr;display:inline-block;vertical-align:top;widt= h:100%;">
Last Week=E2=80=99s Market Moves
 
Dow Jones
29,889 (-4.79%)		S&P 500
3,675 (-5.79%)		Nasdaq
10,798 (-4.78%)		Bitcoin
$20,534 (-29.35%)
Dow Jones
29,889 (-= 4.79%)		S&P 500
3,675 (-5.79%)
Nasdaq
10,798 (-4.78%)		Bitcoin
<= span style=3D"font-weight: 700;">$20,534 (-29.35%)
<= /table>

Hey= Snackers,

=E2=80=9CHere goes somethin=E2=80=99!=E2=80= =9D =E2=80=94 the last words of robot Spider-Man as he crashed into a building at = Disneyland. The animatronic superhero was defeated while swinging midair du= ring a show.

Markets had a similar experience: the S&P 500 sank 6= % in its w= orst week since March 2020 (aka: when lockdowns hit) as investors moved= into =E2=80=9Csafe haven=E2=80=9D assets like US gov=E2=80=99t bonds.

<= p>For the first time, US markets were closed yesterday to = honor Juneteenth, the new federal holiday commemorating the end of slavery = in America.

Btw... Do you wan= t to start getting Snacks daily? Or prefer to unsubscribe? Manage your subs= cription preferences here.

Grizzly
<= /table>

As the Fe= d tries to tame enemy #1, stocks are in the red =E2=80=94 but the economy= =E2=80=99s stuck in a gray zone

The= sun also rises... the stocks, not so much. The S&P 500 is dow= n 23% this year after stocks slipped deeper into a bear market last week. I= CYMI: the Fed went off script and hiked interest rates by three-quarters of= a percentage point (higher than the half point originally expected). Fed C= hair Powell (#JPow) said we could get another big hike in J= uly.

  • = Higher rates cool consumer demand, which should cool price= s. But they also lower companies=E2=80=99 earnings-growth expectations, whi= ch lowers corporate valuations (see: slumping stocks).
  • The 10-year Treasury yield topped its highest level in = over a decade last week as investors anticipate more inflation + higher rat= es. When yields rise, US gov=E2=80=99t bonds become more attractive relativ= e to riskier investments like stocks.

The market looks = forward... We know the economy isn't the stock market. Prime e= xample: mid-2020, the market was sipping prosecco on a Hamptons yacht (reco= rds on records) while the economy was eating Safeway froze= n peas in bed (record GDP shrinkage). Cue: trillions in stimmy $$, disappea= ring interest rates, and a big econ rebound. Now:

  • Yay area: T= he tight labor market is looking strong with ultralow unemployment, and man= ufacturing ramped up last month despite supply snags.
  • Gray area: We're = starting to see more layoffs as the Fed tightens its belt, and consumer spe= nding surprisingly fell in May as inflation strained savings.
    • Nay area: The Fed slashed = its outlook for 2022 economic growth (to 1.7% from 2.8%), and the risk of a= recession has soared.
<= /tr>
THE TAKEAWAY

It=E2=80=99s the e= con-flation paradox=E2=80=A6 Inflation hurts the economy, but so d= oes fighting inflation. To tame enemy #1, central banks need to slow the economy (which is sinking stocks). The sweet spot: cooling = the economy without causing a recession and igniting a market melt= down. The best news could be if prices (especially oil and gas) show signif= icant signs of easing.

=
Zoom Out
=
<= /table>

Stories we=E2=80=99re watching...

Falling far from the tree... Apple=E2=80=99s supply chain. The Fruit=E2=80= =99s sleek gadgets are nearly all manufactured in China. But China's wo= rk-stopping zero-Covid policy could cost Apple $= 8B in sales this quarter. Now some businesses are fleeing the country: Foxconn, the company that assembles most iPhones, is moving mo= re of its production to nearby Vietnam and Taiwan. A wider manufacturing ex= odus could hurt China=E2=80=99s economy, which is already on pace for its s= lowest annual growth in decades.

The biggest pro sports match= up=E2=80=A6 is happening off the field. Streamers are see= ing live sports as a key to turn fickle viewers into loyal fans. Last week = Apple signed an exclusive $2.5B deal to stream all Major League= Soccer for 10 years, the first time a full US pro season will be streamabl= e in one place (+ cable). This year Ama= zon and Apple will stream some NFL and MLB games. Disney and Sony fought to stream India=E2=80=99s= pro cricket league (but lost their bids). And Netflix, which is losing subs, is racing A= mazon and NBC for Formula One rights.

=
Events
<= /table>

Coming up this week...

Movin= =E2=80=99 back in with Mom=E2=80=A6 Millions of Americans raced to= buy their dream homes last year =E2=80=94 now that dream is impossible for= many. Soaring mortgage rates, low inventory, and sky-high prices are final= ly cooling the hot housing market. Mortgage applications fell to a 22-year = low last month, and online brokers Comp= ass and Redfin did mass layoffs last week. Homebuilding giants Lennar and KB Home saw sales dip from records last quarter (we= =E2=80=99ll get fresh earnings this week). Still, experts say it could take= years for home prices to really cool.

Need Thrifty-er ice cr= eam=E2=80=A6 Rite Aid=E2= =80=99s losses deepened last quarter after it took on debt to build more pharmacies, wh= ile its drugstore rivals invested in profitable ventures (think: wellness c= linics, insurance partnerships). Earnings jumped at CVS and Walgreens as Covid tests and vaxxes continued= (though fewer), and Pfizer=E2=80=99s= Covid pill boosted sales. While CVS and Walgreens boosted the= ir earnings forecasts for this year, Rite Aid =E2=80=94 which reports Thurs= day =E2=80=94 expects sales to dip despite rising store visits as it cut co= sts.

=
ICYMI
<= /table>

Last week's highlights...

  • Billions: The names topping Forbes=E2=80=99 list of richest self-made women may = surprise you. It=E2=80=99s not celeb-preneurs like Rihanna or tech execs li= ke Sheryl Sandberg =E2=80=94 it=E2=80=99s roofing, trucking, and pizza magn= ates.
  • OOO:<= /strong> Covid ran roughshod over the sick day as WFH became WWS (Work Whil= e Sick). The Zoom-from-couch life exacerbated an American attitude =E2=80= =94 the insistence to work through it, even when it=E2=80=99s Covid.
    • Land: TerraUSD's collapse caused crypto chaos, but dat= a suggests the stablecoin wasn't responsible for =E2=80=9Ccrypto winter= .=E2=80=9D Instead, bitcoin may=E2=80=99ve followed stocks =E2=80=94 dashing hopes that the crypt= o would be a safe haven.
<= p style=3D"border-top:solid 1px #e3e9ed;font-size:1px;margin:0px auto;width= :100%;">

What = else we're Snackin'
  • McDowell=E2=80=99s: McDonald's closed its 840 Russian locations in May, but rebranded burger joints are= reopening in their place =E2=80=94 with the same ketchup packets. A =E2=80= =9Cknockoff economy=E2=80=9D is emerging to adapt to sanctions.
  • Pump: President Biden scolded oil giants= like Exxon an= d Chevron,= urging them to boost supply to lower gas prices. But it may be a mostly sy= mbolic effort to ease voters=E2=80=99 #PumpAnxiety.
  • Pride: Rainbow capitalism is on the rise (think: the= Uber app=E2=80=99s rainbow = cars) =E2=80=94 but so are anti-LGBTG+ bills. Now employees are demanding m= ore than just colorful logos and cheeky ads.
Want your Snacks daily?
The Dail= y Newsletter
Get fresh takes on financial news every week day. Try a sample:

=F0=9F=8F=B3=EF=B8=8F=E2=80=8D=F0=9F=8C=88 Rainbow cap= italism =E2=80=A2 Jun 17, 2022
=F0=9F=9B=A2=EF=B8=8F Bide= n gets pumped up =E2=80=A2 Jun 16, 2022
=E2=AC=86=EF=B8=8F = The Fed=E2=80=99s big decision =E2=80=A2 Jun 15, 2022

Subscribe to the Daily
<= /table>
Snack Fa= ct Of the Day
June 21 = (aka: summer solstice) is the longest day of the year in the Northern Hemis= phere
=

= <= /table>
This Week
    Tuesday: Summer Solstice. = Earnings expected from La-Z-Boy
  • Wednesday: Earnings expected from KB = Home and BlackBerry
  • Thursday: Jobless claims. Earnings expected from= Accenture, HB Fuller, Winnebago<= /strong>, FedEx, Darden Restaurants, and = Rite Aid
  • Fr= iday: National Food Truck Day
  • This weekend: The G7 Summit begins Sunday. The NYC Prid= e March is on Sunday

Authors of this Snacks own: bitcoin and sh= ares of Apple, Exxon, Uber, CVS, Amazon, Netflix, and Disney

ID: 2252= 433

=
Robinhood Snacks newsletters reflect the opinions = of only the authors who are associated persons of Robinhood Financial LLC (= Member SIPC) and do not reflect the views of Rob= inhood Markets, Inc. or any of its subsidiaries or affiliates. They are for= informational purposes only, and are not a recommendation of an investment= strategy or to buy or sell any security, digital asset (cryptocurrency, et= c) in any account. They are also not research reports and are not intended = to serve as the basis for any investment decision. Any third-party informat= ion provided therein does not reflect the views of Robinhood Markets, Inc.,= Robinhood Financial LLC, or any of their subsidiaries or affiliates. All i= nvestments involve risk including the loss of principal and past performanc= e does not guarantee future results.
To unsubscribe from all commercial emails= , click here
--3f9b8bef4fbfa6684b2122d62eb767bf568d026dcf78ff9491ddbbcfbaf2 Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset=utf-8 Mime-Version: 1.0
=E2=80=A6as the Fed tries to tame i= nflation, stocks are in the red
Disclosures
= 202;

The market walking ahead of the e= conomy (Owen Smith/Getty Images)

 
<= tr><= !--
Last Week=E2=80=99s Market Moves
 
Dow Jones
29,889 (-4.79%)<= /span>Bitcoin
$20,534 (-29.35%)<= /span>
S= &P 500
3,675 (-5.79%)		Nasdaq
10,798 <= span style=3D"color: rgb(255, 80, 0);">(-4.78%)
=
Dow Jones29,889 (-4.79%)S&P 500
3,675 (-5.79%)
Nasdaq
10,798 (-4.78%)		Bi= tcoin
$20,534 (-29.35%)
<= /table>

= Hey Snackers,

=E2=80=9CHere goes somethin=E2=80= =99!=E2=80=9D =E2=80=94 the last words of robot Spider-Man as he crashed into a building at= Disneyland. The animatronic superhero was defeated while swinging midair d= uring a show.

Markets had a similar experience: the S&P 500 sank = 6% in its worst week since March 2020 (aka: when lockdowns hit) as = investors moved into =E2=80=9Csafe haven=E2=80=9D assets like US gov=E2=80= =99t bonds.

For the first time, US markets were clos= ed yesterday to honor Juneteenth, the new federal holiday commemorating the= end of slavery in America.

Btw... Do you want to start getting Snacks daily? Or prefer to unsubscribe? = Manage your subscription preferences here.

3D""
Grizzly
=
<= /table>

As the Fed tries to tame enemy #1, stocks a= re in the red =E2=80=94 but the economy=E2=80=99s stuck in a gray zone

<= /div>

The sun also rises... the stoc= ks, not so much. The S&P 500 is down 23% this year after stocks slipped= deeper into a bear market last week. ICYMI: the Fed went off script and hi= ked interest rates by three-quarters of a percentage point (higher than the= half point originally expected). Fed Chair Powell (#JPow) said = we could get another big hike in July.

  • Inflation was up a wor= se-than-expected 8.6% in May from last year. Now JPow's leaning further= into higher interest rates, which discourage borrowing/spending (think: hi= gh credit-card interest) and encourage saving (think: higher yields).
    • <= li style=3D"margin-bottom: 12px;">Higher rates cool consum= er demand, which should cool prices. But they also lower companies=E2=80=99= earnings-growth expectations, which lowers corporate valuations (see: slum= ping stocks).
  • The 10-year Tr= easury yield toppe= d its highest level in over a decade last week as investors anticipate = more inflation + higher rates. When yields rise, US gov=E2=80=99t bonds bec= ome more attractive relative to riskier investments like stocks.
<= p>The market looks forward... We know the economy isn'= t the stock market. Prime example: mid-2020, the market was sipping prosecc= o on a Hamptons yacht (records on records) while the economy was eating Safeway frozen peas in bed (record GDP shrinkage). Cue: trill= ions in stimmy $$, disappearing interest rates, and a big econ rebound. Now= :

  • <= strong>Yay area: The tight labor market is looking strong with ult= ralow unemployment, and manufacturing ramped up last month desp= ite supply snags.
  • Gray area:= We're starting to see more layoffs as the Fed tightens its be= lt, and consumer spending surprisingly fell in May as inflat= ion strained savings.
  • Nay ar= ea: The Fed slashed its outlook for 2022 economic growth (to 1.7% = from 2.8%), and the risk of a recession has soared.
<= /td>

It=E2=80=99s the econ-flation paradox=E2=80=A6 Inflation hurts the economy, but so does fighting inflation. To = tame enemy #1, central banks need to slow the economy (which is si= nking stocks). The sweet spot: cooling the economy without causing= a recession and igniting a market meltdown. The best news could be if pric= es (especially oil and gas) show significant signs of easing.

=
Zoom Out
=
<= /table>

Stories we=E2=80=99re watching...

Falling far from the tree... Apple=E2=80=99s supply chain. The Fruit=E2=80=99= s sleek gadgets are nearly all manufactured in China. But China's work-= stopping zero-Covid policy could cost Ap= ple $8B in sales this quarter. Now some businesses are fleeing the country:= Foxconn, the company that assembles most iPhones, is movi= ng more of its production to nearby Vietnam and Taiwan. A wider manufacturi= ng exodus could hurt China=E2=80=99s economy, which is already on pace for = its slowest annual growth in decades.

The biggest pro sports = matchup=E2=80=A6 is happening off the field. Streamers ar= e seeing live sports as a key to turn fickle viewers into loyal fans. Last = week Apple signed an exclusive $2.5B deal to stream all Major League Soccer for = 10 years, the first time a full US pro season will be streamable in one pla= ce (+ cable). This year Amaz= on and Apple will stream some NFL and MLB games. Disney and Sony fought to stream India=E2=80=99s pro cricke= t league (but lost their bids). And Netflix, which is losing subs, is racing Amazon and = NBC for Formula One rights.

=
Events
<= /table>

Coming up this week...

Movin= =E2=80=99 back in with Mom=E2=80=A6 Millions of Americans raced to= buy their dream homes last year =E2=80=94 now that dream is impossible for= many. Soaring mortgage rates, low inventory, and sky-high prices are final= ly cooling the hot housing market. Mortgage applications fell to a 22-year = low last month, and online brokers Compass and Redfin did mass layoffs last week. Homebui= lding giants Lennar and KB Ho= me saw sales dip from records last quarter (we=E2=80=99ll get = fresh earnings this week). Still, experts say it could take years for home = prices to really cool.

Need Thrifty-er ice cream=E2=80=A6 Rite Aid=E2=80=99s losses deepened last quarter after it took on debt to build more pharmacies, while i= ts drugstore rivals invested in profitable ventures (think: wellness clinic= s, insurance partnerships). Earnings jumped at CVS and Walgreens as Covid tests and vaxxes continued (t= hough fewer), and Pfizer= =E2=80=99s Covid pill boosted sales. While CVS and Walgreens b= oosted their earnings forecasts for this year, Rite Aid =E2=80=94 which rep= orts Thursday =E2=80=94 expects sales to dip despite rising store visits as= it cut costs.

=
ICYMI
<= /table>

Last week's highlights...

  • Billions: The names topping Forbes=E2=80= =99 list of richest self-made women may surprise you. It=E2=80=99s not cele= b-preneurs like Rihanna or tech execs like Sheryl Sandberg =E2=80=94 it=E2= =80=99s roofing, trucking, and pizza magnates.
  • OOO: Covid ran roughshod over the sic= k day as WFH became WWS (Work While Sick). The Zoom-from-couch life exacerb= ated an American attitude =E2=80=94 the insistence to work through it, even= when it=E2=80=99s Covid.
  • Land: TerraUSD's collapse c= aused crypto chaos, but data suggests the stablecoin wasn't responsible= for =E2=80=9Ccrypto winter.=E2=80=9D Instead, bitcoin may=E2=80=99ve followed stock= s =E2=80=94 dashing hopes that the crypto would be a safe haven.
<= /div>

What = else we're Snackin'
=
=
<= tbody>
Want your Snacks daily?
The Daily Newsletter
Get fresh takes on financial news ever= y week day. Try a sample:

=F0=9F=8F=B3=EF=B8=8F=E2=80=8D=F0=9F=8C= =88 Rainbow capitalism =E2=80=A2 Jun 17, 2022
=F0=9F=9B=A2= =EF=B8=8F Biden gets pumped up =E2=80=A2 Jun 16, 2022
= =E2=AC=86=EF=B8=8F The Fed=E2=80=99s big decision =E2=80=A2 Jun 15,= 2022

<= tbody>
Subscribe to the Dail= y
<= /table>
Snack Fact Of the Day
June 21 (aka: summer solstice) is the longest day = of the year in the Northern Hemisphere
<= p style=3D"border-top:solid 1px #e3e9ed;font-size:1px;margin:0px auto;width= :100%;">

= <= /table>
This Week
    Tuesday: Summer Solstice. = Earnings expected from La-Z-Boy
  • Wednesday: Earnings expected from KB = Home and BlackBerry
  • Thursday: Jobless claims. Earnings expected from= Accenture, HB Fuller, Winnebago<= /strong>, FedEx, Darden Restaurants, and = Rite Aid
  • Fr= iday: National Food Truck Day
  • This weekend: The G7 Summit begins Sunday. The NYC Prid= e March is on Sunday

Authors of this Snacks own: bitcoin and sh= ares of Apple, Exxon, Uber, CVS, Amazon, Netflix, and Disney

ID: 2252= 433

=
Robinhood Snacks newsletters reflect the opinions = of only the authors who are associated persons of Robinhood Financial LLC (= Member SIPC) and do not reflect the views of Rob= inhood Markets, Inc. or any of its subsidiaries or affiliates. They are for= informational purposes only, and are not a recommendation of an investment= strategy or to buy or sell any security, digital asset (cryptocurrency, et= c) in any account. They are also not research reports and are not intended = to serve as the basis for any investment decision. Any third-party informat= ion provided therein does not reflect the views of Robinhood Markets, Inc.,= Robinhood Financial LLC, or any of their subsidiaries or affiliates. All i= nvestments involve risk including the loss of principal and past performanc= e does not guarantee future results.
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