…a social-media ban could be coming for America's youngsters
| Social-media curfew incoming (Matt Cardy/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
34,098 (+0.86) | S&P 500
4,169 (+0.87%) | Nasdaq
12,227 (+1.28%) | Bitcoin
$29,408 (+7.91%) |
| Dow Jones
34,098 (+0.86) | S&P 500
4,169 (+0.87%) | Nasdaq
12,227 (+1.28%) | Bitcoin
$29,408 (+7.91%) |
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Hey Snackers, The real benefactor of generative AI = Balenciaga. The haute fashion house no longer has to rely on $2K trash-looking sneakers and other absurd designs to go viral. From the pope in a puffer to Balenciaga Harry Potter, genAI memes are the best thing to ever happen to the brand. Stocks rallied for the week, led by the techy Nasdaq, after better-than-feared earnings from giants like Meta, Microsoft, and Alphabet. And the Dow notched its best month since January. Coming up: the Fed meets this week to make its next rate-hike decision. Lots of traders expect a quarter-point bump, but anticipate a breather next month. | |
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From curfews to bans, US lawmakers set their sights on new social-media rules for kids | Getting your posting permit… could soon be a new rite of passage. Last week federal lawmakers introduced a bipartisan bill that seeks to establish a national minimum age for posting on social. The "Protecting Kids on Social Media Act'' would bar platforms like TikTok, Snap, and Instagram from letting kids younger than 13 create accounts — and require platforms to get parental consent to open accounts for users under 18. Studies have linked social media use to anxiety and depression in teens. Social-media security #? The bill aims to create a government-run age-verification system based on identity-validating documents (though companies could use in-house tech to perform the check). Not recommended for you: Social platforms would be barred from surfacing targeted content to minors. Not included: tween-fave gaming services like Roblox and Fortnite. Comments section: Supporters want to limit platforms' ability to keep kids scrolling endlessly, but critics say enforcement would require massive data collection and could infringe on free-speech rights.
Sweet 16 FOMO… This year intensifying scrutiny of social media's effect on kids has led to new legislation. The bipartisan "Kids' Online Safety Act" is set to be reintroduced in the Senate, and another bill, proposed in February, would set a social age threshold of 16. Age-verification laws were passed in Arkansas and Utah recently, with Utah adding a 10:30 p.m. social curfew for kids. This year dozens of US school districts have sued platforms like TikTok, Meta, and YouTube, alleging they're "knowingly creating this unprecedented mental-health crisis." |  | THE TAKEAWAY |
| Time (online) is money… Engagement = $$ in the form of ads served. Half of US teens say they're online "almost constantly." They're the most engaged demographic, and the most susceptible to negative mental-health effects. Platforms might see their revenue threatened by rules for minors. The bill's cosponsor Sen. Brian Schatz predicted an "army of lobbyists" would fight it from becoming law. | |
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| Big Macs and barbacoa… Fast-food chains have posted tasty results as Americans splurge on affordable treats. Last week McDonald's delivered a 63% profit surge as more folks hit the Golden Arches despite pricier burgers and nuggets. Domino's and Chipotle also topped estimates as consumers stomached higher prices. Quick-serve joints have benefited as inflation curbs appetites for full-service restaurants. We'll see whether the deep-fried frenzy is still sizzling when Taco Bell and KFC parent Yum Brands reports along with Papa John's and Shake Shack. Wave szn buffet… Cruise companies Royal Caribbean and Norwegian Cruise Line are on deck to report. If rival Carnival's earnings are any indication, the industry's January-through-March "wave season" was hot. Carnival said it achieved record quarterly booking volumes during a "phenomenal" season, with sales at 95% of 2019 levels. Still, its bottom line was sunk by a nearly $700M loss. While cruise demand has rebounded as Americans splurge on experiences, higher costs (think: fuel) could weigh down profits. | |
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| Raise the roof… The debt-ceiling clock is ticking. The US hit its $31.4T debt limit in January, prompting Treasury Secretary Yellen to deploy "extraordinary measures" to keep the economy running. Last week the GOP-led House passed a bill to raise the ceiling. While the Biden admin said it has "no chance" of becoming law, it could spark negotiations as the default deadline looms. The stakes are high: if the US defaults on its debt (read: can't pay its bills), one-tenth of all economic activity could grind to a halt, Goldman Sachs estimates. Jet not set… Summer vacays just got complicated. Boeing is pausing some jet deliveries after an eagle-eyed worker spotted a "gnarly" flaw in nearly three-quarters of its stored 737 Max jets. Southwest now expects fewer of the popular jets than promised, and plans to cut hiring because of Boeing's delays, even as the industry faces a labor shortage. It's bad timing: airlines like Delta are seeing record summer bookings as travel demand takes off. American Airlines CEO said that delivery issues force it to cancel flights. | |
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| Recap: Investors sighed after Amazon, Alphabet, Microsoft, and Meta delivered better-than-anticipated earnings last week, showing how low expectations have fallen. Also: tech execs could not stop saying "AI." K-Flix: More "Squid Game" please. Netflix plans to splurge $2.5B to produce South Korean content, which was watched by over half of subscribers last year. From K-pop to K-drama, Korea has become an entertainment powerhouse. Cleanup: Norfolk Southern said the derailment of one of its trains — which spilled toxic chemicals into an Ohio town — would cost it nearly $400M. The disaster has led to broader scrutiny of the rail industry's safety practices.
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What else we're Snackin' | ChinaGPT: Chinese tech companies like Baidu and Alibaba are racing to build government-approved versions of AI bots like ChatGPT. But they'll need to uphold strict censorship rules laid out this month. Dupes: #Bougie-on-a-budget TikTokers are sharing cheaper replicas of high-end apparel. Buyer, beware: TikTok has rules against selling counterfeits, and luxury brands are mama bears when it comes to their logos. Tactile: Carmakers like Porsche and Hyundai have heard customers' complaints (and safety concerns) about touchscreens and are bringing back old-school buttons and dials. Your move, huge Tesla screens.
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Snack Fact Of the Day | This year EVs are expected to account for nearly one-fifth of global car sales | | |
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Monday | Monday: International Workers' Day. Met Gala. Earnings expected from SoFi and Norwegian Cruise Line Tuesday: Fed rate meeting. Earnings expected from Pfizer, BP, Marathon Petroleum, Marriott, and Molson Coors Wednesday: Earnings expected from CVS, Wingstop, Kraft, EstÃĐe Lauder, Yum Brands, Philips, and Barrick Gold Thursday: Earnings expected from Moderna, Royal Caribbean, Peloton, ConocoPhillips, Shell, Planet Fitness, Wayfair, Kellogg, AB InBev, PG&E, Hyatt, Papa Johns, and Shake Shack Friday: Earnings expected from AMC, Warner Bros. Discovery, Dominion Energy, and Cinemark
Authors of this Snacks own shares of: Amazon, Barrick Gold, CVS, Delta, Google, Kraft, Microsoft, Moderna, Norwegian Cruise Line, Snap, and Tesla | |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more | |
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