💰 Record markets and rising inequality

...and Big Tech demolishes earnings (again) [Disclosures](   Room service: deliver the hotel earnings [janiecbros/ E+ via GettyImages]   Last Week’s Market Moves   S&P 500 4,395 (-0.37%) Dow Jones 34,935 (-0.36%) Nasdaq 14,673 (-0.71%) Bitcoin $41,866 (+24.39%) S&P 500 4,395 (-0.37%) Dow Jones 34,935 (-0.36%) Nasdaq 14,673 (-0.71%) Bitcoin $41,866 (+24.39%) 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... Want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences [here](. Manatee Stocks are cruising at record highs: how that connects to your wallet and rising inequality 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? - Americans are getting richer. Last year, US household wealth surged to records as Americans accumulated a fresh [$12T](. In the first quarter of this year, wealth across all US households jumped [~4%](. - But the gains aren't even... A third of the total increase in Americans' net worth last year went to the top 1%, just 3M people — the same as went to the bottom 60%, or 199M people. - The second half of 2020 also brought the [sharpest]( rise in the US poverty rate since the '60s. It's expected to hit 14% by end-of-year, with poverty rates for Black and Hispanic Americans double those of white Americans. 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: - Key stat: About [half]( of the total increase in Americans' wealth last year came from rising stock prices (though soaring home values also played a role). - Break it down: The wealthiest 10% of Americans own 90% of stocks and mutual funds held in the US. The bottom half of households hold less than 1%. THE TAKEAWAY 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. Zoom Out Stories we're watching... 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. Events Coming up this week... 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. ICYMI Last week's highlights... - [Puff]( Marlboro-maker [Philip Morris International]( might stop selling cigarettes to go “smoke-free" — but it’s got plenty of other puffable tech. - [B(ad)]( As global sponsors shrug off these bummer Olympics, local sponsors like Asahi are feeling the hit. - [Sleek]( Tesla-lookalike [Lucid]( hasn’t delivered a single car yet, but the luxe EV-maker just went public in a $4.5B SPAC merger. What else we're Snackin' - [Focus]( A four-day week could be the future of work, as employers experiment during the pandemic. - [Feel]( How to stop "emotional contagion" from spreading, while still helping loved ones. - [Work]( Four creative side-hustles that can bring in passive income. - [Visualize]( GDP per capita, worldwide — it's a good indicator of how rich a country is. 🍪 Want to start Snacking daily? Sign up [here]( for our daily market newsletter. The Snacks Daily Podcast "The positive inspo moodboard can't fix this." Pinterest stock plunged 23% last week after the wholesome social platform said it lost users in its key US market. Enter: "Idea Pins." [Tune in to our snackable 15-minute pod]( to hear why Pinterest is shifting from search to scroll. Snack Fact Of the Day [The Big Tech Five — Google, Apple, Microsoft, Amazon, and Facebook — now make up a record 23% of the S&P 500 index's total value]( This Week - Monday: Earnings expected from Ferrari and Reynolds Consumer Products - Tuesday: Motor vehicle sales drop. Earnings expected from Activision Blizzard, Alibaba, Clorox, Coursera, Eli Lilly, Lyft, Marriott, Public Storage, and Warner Music - Wednesday: Earnings expected from Match Group, Uber, 10x Genomics, Booking Holdings, CVS, Hyatt, Kraft, MGM Resorts, Sony, Toyota, and Wynn - Thursday: Weekly jobless claims. Earnings expected from Moderna, Square, Allstate, Carvana, Expedia, Dropbox, Paylocity, Wayfair, and Zillow - Friday: Unemployment rate released. Earnings expected from DraftKings, Goodyear, and Norwegian Cruise Authors of this Snacks own shares of: Amazon, Google, Apple, and Microsoft ID: 1744439 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed Robinhood account or any other account, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. 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