Gas tax relief, Kellogg’s big split, and more 

M1 Team
M1 Team June 24, 2022
Close-up of person holding tablet with market data on screen

This week, we’re covering a potential gas tax holiday and Kellogg’s big organizational shakeup. Also in this edition: 

  • Apple’s first U.S. union  
  • The top 10 most trusted brands 
  • Pro athletes unite to promote Black wealth
Stock data performance:
Dow Jones: -2.343.48 (-7.26%)
Nasdaq: -1,108.13 (-9.43%)
S&P 500: -350.58 (-8.73%)
Russell 2000: -208.08 (-11.24%)
Bitcoin: -8,189.00 (-28.05%)
Ethereum: -572.35 (-34.11%)
Stock data reflects performance from 6/17/2022 to 6/23/2022 market close. Crypto data reflects performance from 6/16/2022 4 pm ET to 6/23/2022 4 pm ET.


Gas tax pause on the table 

National gas price averages sit just below $5.00, and President Biden may intervene. Biden asked Congress for a three-month suspension of the federal gas tax on Wednesday. Lawmakers in both parties are resistant to the suspension and worry that retailers, not consumers, will benefit.

July 4th weekend could be the start of this pause, just as millions of Americans hit the road to celebrate the holiday. “I hope to have a decision based on the data I’m looking for by the end the week,” Biden told reporters. 

A pause on the 18.3 cent-per-gallon tax would require approval from Congress, though the administration is exploring alternative routes like gas rebate cards. 

Snap, crackle, split 

After 116 years, Kellogg Company (K) is shaking up its food empire. The maker of familiar favorites (Cheez-Its, Pringles, Pop-Tarts, and more) is splitting into three companies focused on cereals, snacks, and plant-based foods. On an investor call, CEO Steve Cahillane said this move will make the companies more nimble and better able to win in the industry.  

“Cereal will be solely dedicated to winning in cereal and will not have to compete for resources against the high-growth snacking business,” said Cahillane. Kellogg has shifted more resources to its fast-growing snacks over the past few years, which now make up almost 80% of the company’s sales.   

Shareholders will receive shares in the two spinoffs on a pro-rata basis relative to their Kellogg holdings.

Bitcoin’s biggest backer calls for crypto reform 

MicroStrategy CEO Michael Saylor, the world’s largest public holder of Bitcoin, is calling on regulators to tackle what he calls risky and immature crypto industry practices. 

Saylor argues that more than 19,000 cryptocurrencies and tokens should be viewed as “unregistered securities” that can’t be linked to a more established commodity like Bitcoin. 

It’s estimated that MicroStrategy has lost more than $1 billion in crypto’s most recent dip. Bitcoin is beginning to rebound after dropping to $17,958 this past weekend, its lowest point since December 2020. 

Quick hits 


Owner’s (Fuel) Rewards  

Even with gas prices soaring, the Owner’s Rewards card is still delivering savings each time you fuel up! Earn 5% cash back at the pump when you buy at BP, Chevron, Texaco, Exxon, and Mobil.  

Learn more about the Owner’s Rewards card and the gas savings it could bring you.

This week in finance history

June 23, 1972 

Title IX of the Civil Rights Act of 1964 is amended to provide protections around sexual discrimination of any educational program receiving federal funds.  

Often talked about through the lens of women’s athletics, the amendment also provided a wide range of protections to help students, regardless of gender identity.

9 things to know about Title IX:
1. Title IX is a civil right that prohibits sex discrimination in education.
2. Title IX applies to all students regardless of gender identity.
3. Schools may not retaliate against someone filing a compliant and must keep complaints safe from other retaliatory harassment.
4. Schools should ensure that no student has to share campus spaces with their abuser.
5. Schools must be proactive in ensuring that your campus is free from sex discrimination.
6. Schools must have a procedure for handling complaints of sexual harassment and violence.
7. Schools cannot discourage you from continuing your education.
8. All schools receiving federal funding, including public K-12 schools and a majority of colleges, are subject to Title IX.
9. Schools can issue no-contact directives to prevent alleged perpetrators from approaching or interacting with you.
Image courtesy of New West High School 

Sign up for M1 and receive the Weekly Wrap Up newsletter every Friday.