Widespread baby formula shortages have bolstered the profit margins of the product's manufacturers.

Why it matters: Families have been scrambling to find formula since a massive recall in February — and now they’re paying more for it too, Nathan writes.

Driving the news: The industry’s profit margin has jumped from 11.6% in 2021 to an estimated 14.2% in 2022, the highest point since 2015, according to new IBISWorld data provided to Axios.

• “While the COVID-19 pandemic disrupted supply chains and caused input costs to increase, high demand for formula and high market share concentration have allowed manufacturers to increase prices and maintain profit,” per IBISWorld.

State of play: Between March 2021 and May 2022, baby formula prices jumped by an average of 11%, according to an analysis of a dozen major retailers — including Kroger, Amazon and Costco — conducted by DataWeave.

Of note: Officials with the four major formula companies — Abbott Laboratories, Mead Johnson, Perrigo and Nestle — did not respond to requests seeking comment. But industry leaders have acknowledged that the mad rush to buy formula has boosted the bottom line.

Yes, but: Baby formula price increases had started before the Abbott recall, according to DataWeave.

• Manufacturers have been dealing with extra costs associated with raw materials, labor and distribution, all contributing to the industry’s broader inflation crisis.

Go deeper.

How much could the S&P gain or lose during a hypothetical recession? It depends on how long or severe it is, data from CFRA Research suggests.

Why it matters: Investors are anxious to know whether we're immersed in a recession, or about to enter one, Nathan writes.

• Investors "anticipate the start and end of recessions, causing the S&P 500 to top out before the start of these recessions and bottom before their conclusion," according to Sam Stovall, CFRA's chief investment strategist.

Yes, but: The stock market's performance during recessions since 1990 hasn't been quite as peachy. Since then, the S&P has averaged a decline of 8.8% during contractions.

🚀 SpaceX reportedly fired employees who wrote a letter assailing CEO Elon Musk. (New York Times)

🤼 WWE CEO Vince McMahon stepped down temporarily amid allegations he covered up an affair. (Yahoo)

🛏️ Walmart became the latest retailer to pull MyPillow products from its stores. (Axios)

✈️ FAA, wireless carriers reached a new 5G deal. (Axios)

The FBI is working closely with LinkedIn to combat crypto-related fraud on the platform, Hope writes.

Why it matters: Saying the scams pose a "significant threat," the FBI has opened investigations, a field office agent told CNBC, which first reported the story.

Driving the news: Criminal rings are exploiting people's trust in LinkedIn as a reliable place for networking.

• CNBC talked to a group of victims whose losses ranged from $200,000 to $1.6 million.

What to watch: "While our defenses catch the vast majority of abusive activity, our members can also help keep LinkedIn safe," Oscar Rodriguez, LinkedIn senior director of trust, privacy and equity, wrote in a blog post.

Go deeper.

To close out this week, we wanted to share some gifts that our fathers have given us through the years, as some of us (ahem, Hope) are still thinking about their Father’s Day gift for Sunday.

• Hope: My name — Xiwang, which means Hope. The idea came to him as he rode a train back from Shanghai, where he’d just gotten his U.S. student visa. My mother, unbeknownst to him, was on her way to the hospital to give birth to me.
• Nathan: Unrelenting support — no matter what I do, I know my dad has my back. He is ceaselessly supportive and always providing encouragement.
• Javier: Father's Day hits different when he's not around anymore. But my dad (RIP) epitomized stoicism and radiated calm, even when he shouldn't have. I am definitely his son.

“The history of African Americans is everybody’s.”