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- uBiome
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…expectations are low for America’s biggest companies
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Disclosures
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<p>
Busy week on Wall Street (Mario Tama/Getty Images)
</p>
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<div style="font-family:'Capsule Sans Text', Arial;font-size:13px;line-height:1;text-align:center;color:#000000;">
Last Week’s Market Moves
</div>
</td>
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<td style="font-size:0px;word-break:break-word;">
<div style="height:20px;line-height:20px;">
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<td align="left" class="desktop marketIndices" style="font-size:0px;padding:0;word-break:break-word;">
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<tr>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
Dow Jones
<br/>
<span style="font-weight: 700;">
33,886
<span style="color: rgb(0, 200, 5);">
(+1.20%)
</span>
</span>
</span>
</td>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
S&P 500
<br/>
<span style="font-weight: 700;">
4,138
<span style="color: rgb(0, 200, 5);">
(+0.79%)
</span>
</span>
</span>
</td>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
Nasdaq
<br/>
<span style="font-weight: 700;">
12,123
<span style="color: rgb(0, 200, 5);">
(+0.29%)
</span>
</span>
</span>
</td>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
Bitcoin
<br/>
<span style="font-weight: 700;">
$30,474
<span style="color: rgb(0, 200, 5);">
(+8.67%)
</span>
</span>
</span>
</td>
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<tr>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
Dow Jones
<br/>
<span style="font-weight: 700;">
33,886
<span style="color: rgb(0, 200, 5);">
(+1.20%)
</span>
</span>
</span>
</td>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
S&P 500
<br/>
<span style="font-weight: 700;">
4,138
<span style="color: rgb(0, 200, 5);">
(+0.79%)
</span>
</span>
</span>
</td>
</tr>
<tr>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
Nasdaq
<br/>
<span style="font-weight: 700;">
12,123
<span style="color: rgb(0, 200, 5);">
(+0.29%)
</span>
</span>
</span>
</td>
<td>
<span class="text" style="font-family: 'Capsule Sans Text', Arial; font-size: 13px; line-height: 22px; padding: 0;">
Bitcoin
<br/>
<span style="font-weight: 700;">
$30,474
<span style="color: rgb(0, 200, 5);">
(+8.67%)
</span>
</span>
</span>
</td>
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<td style="direction:ltr;font-size:0px;padding:27px 10px;text-align:center;">
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<div style="font-family:'Capsule Sans Text', Arial;font-size:15px;font-weight:400;letter-spacing:-0.1px;line-height:24px;text-align:left;color:#000000;">
<p>
<strong>
Hey Snackers,
</strong>
</p>
<p>
AI is coming for your future — literally. The fortune-cookie industry is
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
debating
</a>
whether to use ChatGPT, instead of humans, to draft those little snippets. One AI-generated bit of wisdom said: “Your fate is written in the stars and encrypted in the clouds.” That’s deep… learning.
</p>
<p>
Stocks ticked up for the week, led by the Dow, after some big banks kicked off earnings season with stronger-than-expected #s. But major indexes dipped on Friday as Fed rate-hike expectations jumped. Traders are no longer betting on a breather in May.
</p>
</div>
</td>
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<td align="left" style="font-size:0px;padding:0;word-break:break-word;">
<div style="font-family:'Capsule Sans Text', Arial;font-size:15px;font-weight:400;letter-spacing:-0.1px;line-height:24px;text-align:left;color:#000000;">
<strong>
Btw...
</strong>
Do you want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
here
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.
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<img alt="" border="0" height="1" src="https://inboxflows.com/_/image/https%253A%252F%252Fsg.robinhood.com%252Fwf%252Fopen%253Fupn%253Dq-2FZ-2F8R4uR3lRXK3PO4ZkVk-2BZt1SqpCIyBv-2FIozTjk2VNN3eQssMFJBT95MovldJRYAaPB83eMcwvtFiRF6rfECM-2FSI6ktIHLzpGY8OVNzRe7lvxZgyJ9MGWnZcCDox2GX2aO7ZzLySsXJ6IHl-2By-2FSs8yPAIK8qDiDlFnkJjockh9-2FA-2FCiQdlHvUk7F-2BeYwOpd-2FSX7qC-2FjclOf-2B9CGxbEn2ZLsBWYFKVbo0XaXmFRgqfr2NbO90AZeSZ3Fk-2Ffinib2mT-2Faq9muBs0dtrLsQppP3L3SwPyR1Ih1eaQKNZGmaNtkWa14WdyMbdC7zut1UPRYZGKtl3JNgk1cne6m2k3vKg6qTpO7AAg8A8b0WzImhkER8eYgfYp4vx-2FI51gpHGQPM-2BhbVN586D-2BCQKZGNTot-2FxtTbVmPtHrvfq23Th7pGwx1KocqMiypmB2ieFgH1cz2hMYc5WhAPmd4E4-2BC2gtnUnzzE0WbZpsg3-2FjhkgsATjw98HU62KYbARG49hznJIFbszPo4RL-2BvHUMu486zMyK4UceJnPTst-2BbyfwEfmGG5zMYD2RjQY-2Bpelk9vgp6ZS9EquQ7D10ckz7Tj2qKX7Vpw-3D-3D/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZzZy5yb2JpbmhvbyJ9:1poNs6:owEnVqWQSwcIKGuu6iwHvJuXU7vbsTmjxgITUuJH2As" style="height:1px !important;width:1px !important;border-width:0 !important;margin-top:0 !important;margin-bottom:0 !important;margin-right:0 !important;margin-left:0 !important;padding-top:0 !important;padding-bottom:0 !important;padding-right:0 !important;padding-left:0 !important;" width="1"/>
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SZN
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<td style="vertical-align:top;padding:0;">
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<div style="font-family:'Nib Pro', Arial;font-size:24px;font-weight:600;line-height:32px;text-align:left;color:#000000;">
<p>
Earnings-season forecasts are dim for America’s biggest companies as profits get pressured
</p>
</div>
</td>
</tr>
<tr>
<td align="left" style="font-size:0px;padding:0;word-break:break-word;">
<div style="font-family:'Capsule Sans Text', Arial;font-size:15px;font-weight:400;letter-spacing:-0.1px;line-height:24px;text-align:left;color:#000000;">
<p>
<strong>
’Tis the season…
</strong>
but it may not be so jolly. Earnings season is upon us, and expectations aren’t high for the first-quarter stocking. Quarterly profits from S&P 500 companies are expected to have dropped 6.8% from last year — that would be the sharpest earnings decline since lockdown-era 2020 and the second straight quarter of falling profit. Meanwhile, analysts expect that sales inched up a measly 1.8%. But the kickoff to earnings season pleasantly surprised:
</p>
<ul style="padding-left: 18px;">
<li style="margin-bottom: 12px;">
<strong>
Bank buster:
</strong>
On Friday
<strong>
JPMorgan Chase
</strong>
and
<strong>
Citi
</strong>
reported stronger-than-expected #s, with JPM posting record revenue and a 50% profit surge on higher interest rates.
</li>
<li style="margin-bottom: 12px;">
<strong>
Stocking stuffer:
</strong>
Despite less-than-stellar earnings expectations, the S&P 500 is up 8% for the year, while the techy Nasdaq has gained 17%.
</li>
</ul>
<p>
<strong>
Growth at all costs < profit at
<em>
less
</em>
cost…
</strong>
Soaring interest rates and sticky inflation have eaten into profits and cooled demand. Cue: companies are shifting away from growth-driven investments to focus on cost-cutting profit boosters. It’s “the year of efficiency,”
<strong>
Meta
</strong>
CEO Zuck says. Corporate titans are tightening their belts to prep for a downturn. Last week the Fed said it expected that the banking-crisis fallout would tip the US into a recession this year.
</p>
<ul style="padding-left: 18px;">
<li style="margin-bottom: 12px;">
<strong>
Cold-brew cuts:
</strong>
In addition to sweeping layoffs, companies like Meta,
<strong>
Goldman Sachs
</strong>
, and
<strong>
Salesforce
</strong>
have cut cushy employee perks like barista-brewed coffee.
<strong>
Google
</strong>
is swapping pricey MacBooks for Chromebooks.
</li>
<li style="margin-bottom: 12px;">
<strong>
Robo-savings:
</strong>
Companies like
<strong>
Disney
</strong>
and
<strong>
Microsoft
</strong>
are backtracking on big bets like the metaverse. Instead, corporations are investing in things that could reduce costs long term (think:
<strong>
Walmart
</strong>
and
<strong>
Amazon
</strong>
leaning into warehouse automation).
</li>
</ul>
</div>
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<td align="left" style="font-size:0px;padding:0;padding-top:18px;word-break:break-word;">
<div style="font-family:'Capsule Sans Text', Arial;font-size:15px;font-weight:700;letter-spacing:0.5px;line-height:0;text-align:left;color:#000000;">
<table>
<tbody>
<tr>
<td style="padding: 0 8px 0 0; height: 17px;">
<img height="17px" src="https://inboxflows.com/_/image/https%253A%252F%252Fcdn.robinhood.com%252Fmarketsnacks_assets%252Fv2%252Ftakeaway-black.png/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZjZG4ucm9iaW5obyJ9:1poNs6:EcBHhqz848yYaGY_FIXGaG8aQbRMZHWXIXzYisnWHU4" width="17px"/>
</td>
<td style="font-weight: 700; width: 100%; padding: 0; height: 17px; line-height: 0; padding-top: 1px;">
THE TAKEAWAY
</td>
</tr>
</tbody>
</table>
</div>
</td>
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<tr>
<td align="left" style="font-size:0px;padding:0;word-break:break-word;">
<div style="font-family:'Capsule Sans Text', Arial;font-size:15px;font-weight:400;letter-spacing:-0.1px;line-height:24px;text-align:left;color:#000000;">
<p>
<strong>
“How low will you go” is the question…
</strong>
on investors’ lips. They’ll be listening for guidance about how much lower corporate profits could fall. If companies signal further declines ahead, this year’s rally could reverse. But if cost-cutting measures start to show up on earnings reports as improving profits, markets could be pleasantly surprised.
</p>
</div>
</td>
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<td align="center" class="light" style="font-size:0px;padding:10px 25px;padding-top:24px;padding-right:0;padding-bottom:24px;padding-left:0;word-break:break-word;">
<p style="border-top:solid 1px #e3e9ed;font-size:1px;margin:0px auto;width:100%;">
</p>
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Events
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Coming up this week
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<p>
<strong>
Biscoff cookies en route to Cabo…
</strong>
<strong>
United Airlines
</strong>
and
<strong>
Alaska Air
</strong>
may have reason to join the spring-break party when they report this week. While US airline fares are up 17% on the year, travel demand is still taking off. The TSA's expecting a record-breaking year for flights, and analysts think this may be airlines' busiest spring ever. Last week
<strong>
Delta
</strong>
unloaded a quarterly loss, but projected strong growth and profit ahead. It expects record advance summer bookings as consumers prioritize
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
delayed YOLO
</a>
experiences.
</p>
<p>
<strong>
It’s finally here…
</strong>
Tuesday is the deadline to file tax returns for most Americans (many residents of CA, GA, and AL have until October). And it may be the last go-around for what you could call “IRS 1.0.” Over the next two years, the IRS will use billions in federal funding to upgrade its ’60s-era tech and hire 20K new employees. For you: faster returns and shorter phone wait times. Next tax year, the IRS will require anyone earning $600+ on payment apps (for goods and services — not from splitting checks) like Venmo to report it.
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Zoom out
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<p>
Stories we’re watching
</p>
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<p>
<strong>
An apple a day…
</strong>
keeps the bills away. More Americans could see a boost in their credit scores after credit agencies scrapped 70% of all medical debt in collections. Last year,
<strong>
Experian
</strong>
,
<strong>
TransUnion
</strong>
, and
<strong>
Equifax
</strong>
removed already paid medical debt from millions of credit reports. Last week they took it a step further by removing all
<em>
unpaid
</em>
debt up to $500. Nearly a tenth of US adults owe at least $250 in medical debt, but many don’t notice until it dings their credit score. The move could provide relief at a time when US households carry record debt.
</p>
<p>
<strong>
Still watching…
</strong>
Votes will be counted today to see if the Writers Guild of America will strike in the event that a new contract agreement isn’t reached with studios by May 1. If the WGA strikes, we could see a repeat of the last screenwriting stoppage in 2007, which lasted 100 days. On the table: shortened TV seasons, cancellations, and a bump in unscripted content (imagine: more “Love Is Blind”). A strike would be a headache for streamers who are hungry for the next “Succession.” They’re expected to splurge $23.4B on scripted titles this year.
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ICYMI
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<p>
Last week's highlights
</p>
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<ul style="padding-left: 18px;">
<li style="margin-bottom: 12px;">
<strong>
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
Stuck
</a>
:
</strong>
<strong>
Amazon
</strong>
's $1.7B deal to buy Roomba maker
<strong>
iRobot
</strong>
is gathering dust as the FTC gets tougher on mergers. As antitrust gets anti-er, companies might think twice before snagging startups.
</li>
<li style="margin-bottom: 12px;">
<strong>
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
Oops
</a>
:
</strong>
<strong>
Samsung
</strong>
workers reportedly leaked secret company info while asking ChatGPT for help. Nearly half of companies (and the Biden admin) are exploring guidelines for AI-chatbot usage.
</li>
<li style="margin-bottom: 12px;">
<strong>
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
Volt
</a>
:
</strong>
<strong>
Tesla
</strong>
's building a Shanghai “Megapack” plant to build more energy-storage solutions for businesses and homes. Rising energy demand could fuel Elon’s biz as EV growth slows.
</li>
</ul>
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</p>
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<td style="direction:ltr;font-size:0px;padding:0 10px 18px 10px;text-align:center;">
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<div style="font-family:'Nib Pro', Arial;font-size:24px;font-weight:600;line-height:32px;text-align:left;color:#000000;">
What else we're Snackin'
</div>
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<ul style="padding-left: 18px;">
<li style="margin-bottom: 12px;">
<strong>
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
RTO
</a>
:
</strong>
Niche consultants attempting to get WFH’ers back to the office without a morale plunge are imploring execs to ditch return-to-office mandates in favor of communal perks like yoga and lunch.
</li>
<li style="margin-bottom: 12px;">
<strong>
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
Emote
</a>
:
</strong>
Lots of young Chinese men have grown emotionally attached to AI companions like
<strong>
Microsoft
</strong>
's spinoff Xiaoice, which had 650M users in 2018. Robo-romances could give China a leg up in the AI race.
</li>
<li style="margin-bottom: 12px;">
<strong>
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
Exhausted
</a>
:
</strong>
The EPA’s new pollution-standards proposal that seeks to limit tailpipe emissions could speed up the EV transition. It would require up to 67% of all new cars sold in the US to be electric by 2032.
</li>
</ul>
</div>
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Want your Snacks daily?
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The Daily Newsletter
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✈️
<a rel="noopener" style="color: rgb(0, 200, 5); text-decoration: underline; font-weight: bold; text-decoration-thickness: 2px; text-underline-offset: 1px;" target="_blank">
Delta’s delayed YOLO
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• Apr 14, 2023
<br/>
🏦
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The great rate-hike divide
</a>
• Apr 13, 2023
<br/>
💼
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ChatGPT clocks in
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• Apr 12, 2023
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In nearly half of US marriages, women earn about the same as their spouse — or more
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This Week
</div>
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<ul style="padding-left: 18px;">
<li style="margin-bottom: 12px;">
<strong>
Monday:
</strong>
Earnings expected from
<strong>
Charles Schwab
</strong>
</li>
<li style="margin-bottom: 12px;">
<strong>
Tuesday:
</strong>
Tax Day. Earnings expected from
<strong>
United Airlines
</strong>
,
<strong>
Bank of America
</strong>
,
<strong>
BNY Mellon
</strong>
,
<strong>
Johnson & Johnson
</strong>
,
<strong>
Goldman Sachs
</strong>
, and
<strong>
Lockheed Martin
</strong>
</li>
<li style="margin-bottom: 12px;">
<strong>
Wednesday:
</strong>
Earnings expected from
<strong>
Morgan Stanley
</strong>
,
<strong>
Ally Financial
</strong>
,
<strong>
Citizens Financial
</strong>
, and
<strong>
Abbott
</strong>
</li>
<li style="margin-bottom: 12px;">
<strong>
Thursday:
</strong>
Earnings expected from
<strong>
AT&T
</strong>
,
<strong>
TSMC
</strong>
,
<strong>
American Express
</strong>
,
<strong>
Alaska Air
</strong>
, and
<strong>
Union Pacific
</strong>
</li>
<li style="margin-bottom: 12px;">
<strong>
Friday:
</strong>
Earnings expected from
<strong>
Procter & Gamble
</strong>
</li>
</ul>
<p>
Authors of this Snacks own shares: of Amazon, Alaska Air, Google, Delta, Disney, Tesla, Microsoft, and Walmart
</p>
<p>
ID: 2848334
</p>
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2 years ago - noreply@robinhood.com
…expectations are low for America’s biggest companiesDisclosures Busy week on Wall Street (Mario ...