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Snacks / Monday, April 19, 2021

"Revenge spending"... US retail sales soared 10% in March from February, the largest jump since May. As $1.4K stimulus checks hit bank accounts and vaccines hit arms, Americans splurged on (non-stretchy) clothes, restaurants, and travel. A whopping ~1M jobs were added last month. Now, consumer spending is expected to propel economic growth to +6.4% this year, the best rate in decades.

Shell's environmental vote... Just in time for Earth Day (on Thursday): Shell asked shareholders to endorse its clean energy transition strategy, with a vote set for May 18. Shell is the first oil giant to seek investor approval on a pivot away from oil (it's leaning into electricity). If investors ship Shell's strategy, it could push others to do the same.

Johnson & Johnson earnings... Last week, the FDA asked states to halt J&J's one-shot Covid vax, after six people developed rare blood clotting. It could be a blow to the rollout — but Dr. Fauci predicts J&J's shot will return by Friday. Earnings drop tomorrow, but don't expect a major boost from vax sales: unlike Moderna and Pfizer, J&J pledged to sell its vaccine "at cost" (read: no profit).

Snap drops earnings... Thursday. In February, Snap excited investors by saying it expects 50% annual sales growth for the next few years. But it's still unprofitable (and earns 10X less revenue per user than Facebook). Snap has been focused on growing ad revenue in non-messaging features. We'll see if it grew ads in Snap Maps, Discover, and its TikTok copycat “Spotlight."

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