🔥 Fiery ripple effects

…and the Fed’s next rate-hike decision   The Manhattan skyline on Thursday (Eduardo Munoz Alvarez/Getty Images)   [Sponsored by]( Last Week’s Market Moves   Dow Jones 33,877 (+0.34%) S&P 500 4,299 (+0.39%) Nasdaq 13,259 (+0.14%) Bitcoin $26,495 (-2.77%) Dow Jones 33,877 (+0.34%) S&P 500 4,299 (+0.39%) Nasdaq 13,259 (+0.14%) Bitcoin $26,495 (-2.77%) Hey Snackers, A Costa Rican crocodile was discovered to have made herself pregnant in the first known “[virgin birth]( of the reptile species. Call it Immaculate Croc-ception. Last week the S&P 500 ticked up to a fresh high for the year and entered a bull market. On Friday, the VIX (aka Wall Street’s “fear index”) fell to a three-year low. Now investors have eyes on tomorrow’s May inflation report and the Fed’s rate-hike meeting on Wednesday. Btw... Do you want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences [here](. Smoked From Canada to California, wildfires have increasingly costly economic fallouts The smoke seen ’round the world… As wildfires raged across Canada last week, 100M+ people in North America were put on health and safety alerts. In Canada, the fires forced the evacuation of at least 16K people, destroying 200 buildings (mostly homes). This year, wildfires in Canada have burned an area equal to 5M+ football fields. Stateside, the smoke led to the worst air quality on record for New York City, briefly making it the most polluted city on Earth. Disruptions were widespread: - Ground stop: The FAA delayed flights into NY and New Jersey airports. At one point cancellations and delays affected 11% of LaGuardia flights. - Drill down: Because it was too smoky to drill in Canada, [Chevron]( and Paramount Resources halted production of a combined [240K]( barrels of oil/day. - Curtains closed: Broadway hits like "Hamilton" and "Camelot" canceled shows, and sports events (including East Coast MLB games) were postponed. Insured destruction… Globally, natural disasters cost insurers $39B in the first half of last year alone — 18% higher than the annual average. As the costs of wildfires and hurricanes pile up, insurance cos are pulling back where they’re needed most: - State Farm and [Allstate]( said they’d [stop]( offering new homeowner policies to Californians, saying costly wildfires are hurting their biz. - [AIG]( which ditched California last year, plans to cut home-insurance sales in 200 more “disaster-prone” ZIP codes. - Home-insurance premiums are rising most in states that are at higher risk for extreme weather. Since 2015, average property coverage has surged 57% in Florida and 40% in Texas. THE TAKEAWAY Climate costs are stacking up… Natural disasters like wildfires are becoming not only more frequent but also costlier. Last year climate and weather disasters cost the US gov’t $165B+ (the third most expensive year ever). Inaction on the climate crisis could cost the global economy $178T by 2070, Deloitte estimates. Still, the world’s biggest polluters (China, US, EU, and India) have not made significant progress on emissions reductions. Events Coming up this week… Hopin’ for a Powse… a Powell pause. Traders expect the Fed will take a break from rate hikes at its meeting on Wednesday, pricing in a 70%+ chance of no bump this month (as of Friday). But the Powse may be short-lived: traders are betting on a 50% chance of a July hike, and no longer expect any rate cuts this year (the labor market = still stubbornly strong). Last week, Canada’s central bank unexpectedly resumed its rate-hiking campaign, raising worries in the US. Tomorrow’s May inflation report may influence hike expectations. BYOH (build your own home)… [Lennar]( one of America’s largest homebuilders, has benefited as existing inventory stays woefully low. Rising rates have made homeowners (who snagged “golden-handcuff” low rates mid-pandemic) less likely to move, boosting demand for new homes. Sales of new US homes rose in April, and last month builder confidence popped. When Lennar last reported, profits were up 18% on the year. But high mortgage could cool home building demand. We'll get a fresher look when Lennar reports Wednesday. Zoom Out Stories we’re watching… Mad meds… Pharma giant [Merck]( [sued]( the Biden admin over the power it gave Medicare to lower drug prices. Merck believes that its lucrative diabetes and cancer drugs will be subject to a “sham” price-negotiation program, which goes into effect in 2026 with a first round of 10 drugs. Merck expects at least three of its biggest drugs to be on the list, and said it could be forced to discount them up to 60%, risking billions in profits and disincentivizing research. Other pharma titans could follow Merck’s lead and head to court. Watchin’ the tiiiide roll away… An [ongoing]( labor dispute involving 22K+ dockworkers at critical West Coast ports could wreak havoc on the US supply chain. $440B in cargo moves through the Port of Los Angeles (the nation’s busiest) each year. Now, retail groups have urged the White House to mediate. Dock workers have been effectively shutting down ports (picture: walkouts) for over a week in a dispute over higher pay, after carriers reportedly hauled in about $500B in profits during the pandemic — more than in the previous decade. ICYMI Last week's highlights - [Match]( The PGA Tour agreed to merge with Saudi-backed LIV Golf, ending a heated rivalry and teeing up a new era for golf. But the controversial deal has some pros accusing the PGA of selling out. - [Super]( A former ByteDance exec said that the Chinese gov’t had a “god credential” that allowed it to monitor TikTok users’ personal data. The allegation could provide more fuel for a US ban. - [Backed]( Litigation funding, which lets investors back lawsuits and get a sizable % of the winnings, is on the rise in the US. Now states are cracking down on the practice, demanding more transparency. What else we're Snackin' - [Score]( Lionel Messi is headed to the 305 to join Inter Miami this summer. Profit-sharing agreements with [Apple]( and [Adidas]( may’ve helped the MLS team nab Messi over Saudi Arabia and Barcelona. - [TherAIpy]( An AI chatbot used by an eating-disorder help group started doling out weight-loss tips. The off-script fail highlights the potential dangers of using AI bots in therapy. - [Static]( Carmakers including [Tesla]( and [BMW]( have stopped putting AM radio tuners in their vehicles. Broadcast companies say AM is essential for emergency broadcasts, but few people tune in on the reg. Want your Snacks daily? The Daily Newsletter Get fresh takes on financial news every week day. Try a sample: 🎮 [Twitch’s rule reset]( • Jun 9, 2023 🏛 [The lawsuit-investing boom]( • Jun 8, 2023 🪙 [Crypto’s double trouble]( • Jun 7, 2023 [Subscribe to the Daily]( Snack Fact Of the Day Only 18% of US adults say they’re satisfied with how things are going in America [Read more]( This Week - Monday: Earnings expected from Oracle - Tuesday: May consumer-price index released. Fed meeting begins - Wednesday: Fed rate-hike decision. Earnings expected from Lennar - Thursday: Jobless claims. US Open Golf Championship begins. Earnings expected from Adobe and Kroger - Friday: Results of UPS strike-authorization vote expected Authors of this Snacks own shares of: Apple and Tesla 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) [Unsubscribe](