- __[Cashed](https://snacks.robinhood.com/newsletters/2Dx6BpeCelL6ERgFEQBzuf/articles/7FGQ9LWK0pYQ0cJrD5MQd9/):__ Big Banks like __[Chase](https://robinhood.com/stocks/JPM)__, __[Goldman](https://robinhood.com/stocks/GS)__, and __[Citi](https://robinhood.com/stocks/C)__ brought home booming profits last quarter — but their win is really about the economy. 
- __[Loose](https://snacks.robinhood.com/newsletters/YT38JsvnXohOf0FUMOuuu/articles/1QYBI5AuCj6KdCiF9yAt9a/):__ __[Levi's](https://robinhood.com/stocks/LEVI)__ sales more than doubled from last year, as the jean icon thrives on baggier fits and changed waistlines (RIP skinny jeans). 
- __[Juicy](https://snacks.robinhood.com/newsletters/4UfptC7RMAEOo0YSfMmIZm/articles/2F1XpjHeLwrURVe31KHxXi/):__ Korean conglomerate __LG__ is investing $5.2B in its battery biz, but it's juicing up for more than just electric cars. 

ICYMI

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Personal Finance

__Cue: Tokyo Drift from *Fast & Furious*...__ Except, not so fast.  After a year-long pandemic postponement, the 2020 Olympics kick off this Friday in Tokyo — and they're now called the 2021 Olympics. Some key numbers:

- __0:__ Number of fans attending. All spectators have been banned, after Japan declared another state of emergency amid rising Covid cases this month. 
- __$15.4B:__ Cost of the Tokyo Olympics, according to organizers. That's 22% [higher](https://apnews.com/article/tokyo-coronavirus-pandemic-2020-tokyo-olympics-japan-olympic-games-3c46bce81928865d9aae0832b5ddd9e3) than planned due to extra pandemic-related costs.
- __$3B:__ How much Tokyo has raised from 47 domestic sponsors, a record from host nation businesses at the Games. 
- __-90%:__ How much spending tied to the Games is [expected](https://www.japantimes.co.jp/news/2021/01/23/business/economy-business/tokyo-olympics-losses-cancel/) to drop with zero spectators — and that *doesn't* include spillover tourism spend (think: hotels).

__You don't have to bring home the gold...__ if it's already home. For decades, hosting the Olympics has been a source of national pride. But while the Olympics are touted as an engine of economic growth and urban revitalization, the economic benefits of hosting aren't clear. Evidence points to no real change in economic activity for host countries — but very real costs.

- __The Rio Olympics cost $13B__, paid for with tax dollars and corporate cash. After the Games, Rio had little to show for its investment (and an abandoned pool that turned [orange](https://news.sky.com/story/abandoned-rio-olympic-pool-turns-murky-orange-10761239)).
- __The LA Olympics in 1984__ marked the [first](https://www.cfr.org/backgrounder/economics-hosting-olympic-games) and [last time](https://www.sportscasting.com/the-1984-summer-olympics-marks-the-last-time-the-games-were-profitable/) the Olympics were profitable, mostly because planners avoided building new stadiums. 
- __Looking forward:__ The International Olympics Committee (IOC) is struggling to attract bidders for future Games. Poor economics for host countries and cities have caused many potential bids to be shot down by voters. 


Tokyo

__The Olympic economy is an unequal ecosystem...__ While Japan would've taken an even *bigger* financial hit by cancelling, it still stands to lose the most. The Japanese hospitality and transportation sector is expected to lose up to $1.4B. Meanwhile, the IOC is poised to make $4B in television rights income, despite zero attendees. Companies with broadcast rights will be fine, too: __[NBCUniversal](https://robinhood.com/stocks/CMCSA)__ has already beat the $1.2B it earned for Rio ads. But sponsors like __Asahi__ will get less bang for their buck without the ability to get stadiums of spectators chugging the “Tokyo 2020 Official Beer.”


The Olympic Economy: we're weighing the benefits of hosting vs. the massive costs

__Check the succulent receipts...__ Consumer prices [jumped](https://snacks.robinhood.com/newsletters/6MmYKB2qyTGOmgSv4zyTxs/articles/40UsGpKF29ntRtuFwc6KwT/) 5.4% in June from last year, accelerating at the fastest pace since 2008. A few examples: car and truck rental prices (+88%), women's dresses (+16%), and indoor plants (+5%). Fed Chairman Jerome Powell expects this inflation could be a one-time price increase as the economy rebounds. But for lower-income consumers, a spike in the price of meat, milk, or clothes can make a big difference.

__The "secret" stimulus...__ A super-charged child tax credit. Last week, the US government started [sending](https://snacks.robinhood.com/newsletters/4UfptC7RMAEOo0YSfMmIZm/articles/9MKQo3q2RW7laXpPvRaf6/) parents monthly checks for each child they have. Each month for the rest of 2021, eligible parents can expect $250 or $300 per kid, depending on their age. 39M households will receive payments, covering 88% of US children. Pandemic stimulus checks boosted spending at go-to chains like __[Walmart](https://robinhood.com/stocks/WMT)__, __[Costco](https://robinhood.com/stocks/COST)__, __[TJ Maxx](https://robinhood.com/stocks/TJX)__ and __[Target](https://robinhood.com/stocks/TGT)__. This monthly child "allowance" could provide a similar boost to family-favorite retailers.


Zoom Out

Stories we're watching...

__Shoot your shot...__ __[Johnson & Johnson](https://robinhood.com/stocks/JNJ)__ reports earnings on Wednesday, but don't expect a major boost from vax sales: unlike __[Moderna](https://robinhood.com/stocks/MRNA)__ and __[Pfizer](https://robinhood.com/stocks/PFE)__, J&J pledged to sell its vaccine "at cost" (read: no profit). Out of $22B+ in sales last quarter, Covid vaccines [made up](https://qz.com/1999082/jj-sold-100-million-worth-of-covid-19-vaccine-shots/) just $100M of J&J's revenue — or roughly 2%. The no-profit approach could help J&J from a PR perspective. *Not* helpful: last week J&J recalled several Neutrogena and Aveeno spray sunscreens over a possible cancer risk, and it's dealing with [lawsuits](https://www.businessinsider.com/baby-powder-cancer-lawsuits-johnson-johnson-j-j-asbestos-sec-2021-2) from its baby powder scandal. 

__Ghosted like a Fleet...__ __[Twitter](https://robinhood.com/stocks/TWTR)__ and __[Snap](https://robinhood.com/stocks/SNAP)__ kick off social media earnings on Thursday. In February, Snap got investors excited by [saying](https://snacks.robinhood.com/newsletters/6ayK3gl1rqepiw8vkFk0FE/articles/1w3MRpNTnNQjpGR8ALRL7z/) it expects 50% annual sales growth for the next several years. Meanwhile, Twitter's yearly sales growth [pales](https://snacks.robinhood.com/newsletters/7Diuno0ArouMGsyNQkshkC/articles/73dVpRGQ9Foe8OjLlbQg6e/) in comparison to Snap and __[Facebook](https://robinhood.com/stocks/FB)__'s. It's been struggling to gain users, and it just killed its Stories feature "Fleets." More broadly, social media platforms continue to face criticism from regulators and customers for failing to police hate speech and misinformation. TBD if that'll hurt the bottom line.

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