â¦and Costcoâs Netflix moment Not lovin' it (Selcuk Acar/Getty Images) Yesterdayâs Market Moves Dow Jones
33,853 (-0.22%) S&P 500
4,377 (-0.04%) Nasdaq
13,592 (+0.27%) Bitcoin
$30,126 (-1.85%) Dow Jones
33,853 (-0.22%) S&P 500
4,377 (-0.04%)
Nasdaq
13,592 (+0.27%) Bitcoin
$30,126 (-1.85%) Hey Snackers, Watch out, ketchup. Thereâs a new dip in town: [Pepsi]( said itâs [releasing]( a limited-edition condiment dubbed âColachupâ made with its flagship soft drink. Sounds like itâll go great with Sierra Mistard. Stocks were mixed yesterday, with chipmakers sliding on concerns of a possible US export ban. Meanwhile, Fed Chair Jay Powell said more rate hikes are likely as inflation remains sticky. Stormy Severe weather jolts the airline industry as expected record-breaking summer travel takes off 2 hours on the tarmac⦠$20 food voucher. As severe thunderstorms rip across the US, airlines are [feeling]( the heat. Since Friday, 15K+ US flights have been delayed and nearly 5K canceled. The disruptions affected flights headed to New York and New Jersey airports â with delays averaging 3+ hours. Additional snags popped up in hubs like DC, Chicago, and Atlanta. - Rough skies: [United]( said the FAA âfailedâ it after storm-related restrictions forced the airline to cancel nearly a fifth of its Monday flights. - Déjà blues: [JetBlue]( also saw a high # of delays, after which the airline told employees it had room to improve its response. A perfect storm⦠Summer is crucial for airlinesâ balance sheets as folks pack planes and splurge on tix. Delta boosted its earnings guidance this week, pointing to âoff the chainâ travel demand. Still, stormy skies could rain on the profit parade. As of February, weather cancellations were up nearly 20 percentage points compared to 2018. Whatâs more, airlines are still grappling with staff shortages after a pandemic exodus. And setbacks add up: [Southwest]( said it expected to lose up to $425M on its holiday meltdown last year. THE TAKEAWAY Itâs more than a passing storm⦠As travel szn takes off and extreme weather picks up, airlines plan on getting put to the test. Summer travel is already topping prepandemic levels, and the FAA said more delays are likely. This July Fourth weekend, nearly 4.2M travelers are estimated to fly â an 11% increase over last year. SLICE Costco comes for membership sharers as the subscription squeeze intensifies No free hot-dog lunch⦠[Costco]( said itâll [start checking]( membership cards and photo IDs at its self-checkout kiosks. The goal: keep nonmembers out. Similar to the [Walmart]( Samâs Club, Costco charges its 66M paying members a yearly subscription fee. In return, customers get access to the storeâs bulk-pricing deals via membership cards they show at checkout. At least in theory. The big-box behemoth said it noticed an uptick in people sneaking in with someone elseâs card. - Pay to shop: Members pay $60/year, with an âexecutive membershipâ costing $120. - Members only: Ensuring its shoppers are actual members matters because the chain makes most of its income from subs. Last year, membership fees raked in $4.2B. When sharing isnât caring⦠Costco isnât the only biz sick of subscribers sharing the bounty. After several delays, last month [Netflix]( said itâd start telling customers âyour Netflix account is for you and the people you live with â your household.â Despite years of tolerating (and sometimes encouraging) password sharing, the streamer put the kibosh on the free rides. The âFlix now charges sharers an extra $8/month for non-household accounts. THE TAKEAWAY More users doesnât always equal more profit⦠The sharing economyâs getting squeezed, and even companies that explicitly built sharing into membership perks have walked things back. This year [American Express]( said many cardholders could no longer bring guests into its airport Centurion Lounges for free (new charge: $50). While corporatesâ anti-sharing moves may come off as Grinch-like, they stand to benefit bottom lines. BTW: despite grumblings about its crackdown, Netflix reportedly saw a lift in paying subs. What else we're Snackin' - [Click]( [Google]( facing advertisersâ ire after a report said 80% of its video-ad placements (on third-party sites) were on unsavory webpages (picture: clickbait). Google disputed the findings, but some clients want a refund. - [Crunch]( [General Mills]( shares sank 5% after the cereal icon missed Wall Streetâs revenue expectations. The Cheerios parent struggled as inflation and declining consumer spending ate into sales and margins. - [Rosy]( US consumer confidence jumped to a 17-month high, with fewer people predicting a recession. The labor market remains historically strong, despite expected ongoing Fed rate hikes. - [Chipped]( President Biden may impose added export restrictions on AI chips, further limiting the techâs sale to China. It could hinder chipmakers like [Nvidia]( which have seen business boom with the genAI buzz. - [Sweat]( Texans are being asked to conserve electricity as 100+ temps tax its grid. 40M+ people in the US have been under a heat advisory this week, as record temps hit communities from Arizona to Florida. ðª Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Pickleball injuries may result in up to $500M in added healthcare costs this year [Read more]( Thursday - Initial jobless claims - Earnings expected from Nike Authors of this Snacks own shares of Walmart 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]( [Sherwood Terms and Conditions]( ⢠[Our Editorial Principles]( ⢠[Contact Us](mailto:hellosnacks@sherwoodmedia.com) ⢠[Privacy Policy]( ⢠[Advertise with us](mailto:advertising@sherwoodmedia.com)
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