🛢️ Biden gets pumped up

…Lego’s billion-dollar brick factory [Disclosures](   Where Biden wants oil production to go (Chip Somodevilla/Getty Images)   Yesterday’s Market Moves   Dow Jones 30,669 (+1.00%) S&P 500 3,790 (+1.46%) Nasdaq 11,099 (+2.50%) Bitcoin $22,399 (+1.26%) Dow Jones 30,669 (+1.00%) S&P 500 3,790 (+1.46%) Nasdaq 11,099 (+2.50%) Bitcoin $22,399 (+1.26%) Hey Snackers, Cue the creepy doll song: after [announcing]( that “Squid Game” was returning for a second season, [Netflix]( gave the [green light]( to a “Squid”-themed reality show — with a record $4.5M cash prize. Honeycomb carvers, assemble. Stocks jumped after the Fed approved the largest interest-rate hike since 1994. The three-quarter-point hike was [higher]( than originally anticipated, but investors had mostly priced it in. Fed Chair Powell [said]( it’s becoming harder to cool the economy while avoiding a downturn. Slick Biden tells oil giants to stop pumping profits and to start pumping more oil — but he may be talking to voters Drill, baby, drill… President Biden wants oil giants to pump more oil and extract fewer profits. This week he [urged]( [Chevron]( [Exxon]( [Shell]( [BP]( and other oil biggies to ramp up supply and boost refining capacity — which is at its lowest in years. After imposing restrictions on fossil-fuel [development]( Biden appears to be backtracking from his clean-energy image. It may be necessary: - Prices. Are. Wild. In the US the average gas price hit $5/gallon, partly because Russia’s war on Ukraine has strained supply. But oil giants also crunched it by cutting production when demand sank mid-pandemic. Spoiler: they haven’t revived supply yet. - Profits are gushing, oil isn't. Profits at BP, Exxon, Shell, and Chevron more than [doubled]( from 2021 last quarter. And oil companies plan to spend billions on buybacks and dividends for shareholders. Biden said the soaring profits are “not acceptable.” #PumpAnxiety intensifies… High gas and utility bills hurt wallets. They also hurt public support for the president, who’s tried and failed to ease prices (think: [releasing]( record strategic oil reserves). Now Biden’s shifting the blame to oil companies, but Americans are divided: - Dems blame oil corporations for the high prices: some [want]( a 21% “windfall” tax on oil profit. - Republicans blame Biden and [want]( to reopen refineries that were closed for polluting. THE TAKEAWAY Pump pleas may be symbolic… Biden’s approval ratings have tanked ahead of midterms, and gas prices play a huge part in that. It’s unlikely Biden will get approval to impose taxes on oil profits (because: gridlocked Senate). But there may be petroleum-scented relief on the horizon: experts [expect]( US oil production to ramp up to pre-pandemic levels by next year. Stacked Lego’s splurgin’ $1B on its first US factory to keep up with toy demand from America’s kids — and adults Billion-dollar Lego factory… some assembly required. Lego [plans]( to drop $1B on its first US factory (in Virginia) as demand for its colorful blocks stacks up in one of its biggest markets. The family-owned Danish toy giant plans to spread the investment over the next decade, creating nearly 2K new American jobs. - Building blocks: Construction of the new carbon-neutral factory [begins]( this fall, with the digs expected to be operational in 2025. - Supply stacks: Lego says the factory will help simplify its US supply chain, which has mainly been served by its Mexico factory. “Go play with Lego, Elsa”… Despite inflation and the no-stimmy era, parents are still [splurging]( on new playthings — an extension of the pandemic toy frenzy. Last year, Lego’s revenue [jumped]( 27% to $8B as parents WFH’d with kids. Rivals [Mattel]( and [Hasbro]( also saw double-digit growth thanks to demand for iconic franchises like Hot Wheels and Barbie. Now: - Brick-flation: Lego plans to [hike]( prices on some toy sets by up to 25% starting in August and warned its growth boom might slow. - Fine print: US toy sales ticked up this year after a period of unprecedented growth. But pricier playthings could force parents to trade down or wait for discounts. THE TAKEAWAY Playing wide is a hedge… While Mattel and Hasbro have focused on their target customer (kids), Lego has expanded its portfolio to appeal to consumers of all ages. That’s helped it grow faster than rivals. From intricate builds like the “Star Wars” Death Star (4K pieces) to [nostalgic faves]( like the set of “Seinfeld” and James Bond’s Aston Martin, Lego’s adult offerings could help protect its biz — even if parents ditch kids’ sets. What else we're Snackin' - [Closed]( Home brokerage platforms [Redfin]( and [Compass]( laid off about 10% of their employees — yet another sign that the housing market is cooling as mortgage rates soar. - [Rekt]( [Tesla’s]( advanced driver-assistance features (think: Autopilot) are in the hot seat. Regulators found that the majority of reported crashes believed to involve similar tech happened in Teslas. - [Shift]( iPhone assembler Foxconn plans to build its first EV battery plant in Taiwan. Foxconn’s been moving from China into countries like Vietnam as China’s Covid lockdowns complicate production. - [Score]( After landing some MLB games, [Apple]( secured a 10-year exclusive partnership with Major League Soccer — which reportedly costs at least $250M/year. The Fruit is playing the sports-streaming long game. - [DeFried]( Embattled crypto lender Celsius hired restructuring lawyers after freezing billions worth of customers’ assets. It could be the company’s last-ditch effort to survive crypto winter. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day YouTube’s TikTok knockoff, dubbed “Shorts,” has 1.5B+ monthly viewers [Read more]( Thursday - Jobless claims - Golf’s US Open begins - Earnings expected from Adobe, Kroger, and Smith & Wesson Authors of this Snacks own: shares of Exxon, Shell, Apple, Tesla, and Netflix ID: 2248627 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 Robinhood 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, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. 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