Welcome Back,

Will you try out Apple’s newest product ? Debt ceiling talks still stuck.

Let’s keep it concise.

Market Headlines 👀

• US President Biden is confident a debt ceiling deal with be reached as he prepares for a G7 meeting in Japan.

• US housing starts for April comes in at 2.2% up to 1.4m; est -1.4%.

• JP Morgan, Citigroup (JPM, C) Dimon and Fraser JP Mogan, Citigroup and other Bank CEOs to meet with Senate majority leader Chuck Schumer over debt ceiling.

• Apple (AAPL) is set to debut its first ever mixed reality headset at their developer conference on June 5th.

• Tesla (TSLA) Elon Musk says first Cybertruck will be delivered this year and Tesla will test out traditional advertising.

• Tesla (TSLA) is restarting conversations for a new factory in India.

• JP Morgan (JPM) believes we could see rate cuts as soon as September.

• Uber (UBER) is expanding its options for teen riders to add additional features and safety options.

• Western Alliance (WAL) stock is up after reporting over $2b in deposits another regional bank being watched closely.

• Shein Hong Kong fashion e-commerce giant raises $2b at a $66b valuation.

Earnings 💸

• Target (TGT)

  • EPS: $2.05 beats (exp. $1.76)

  • Revenue: $25.32b beats (exp. $25.3b)

• Dynatrace (DT)

  • EPS:$0.31 beats (exp. $0.22)

  • Revenue: $314m beats (exp. $304.9m)

• Doximity (DOCS)

  • EPS: $0.20 beats (exp. $0.17)

  • Revenue: $111m beats (exp. $110.09m)

• Cisco (CSCO)

  • EPS: $1 beats (exp. $0.97)

  • Revenue: $14.57b beats (exp. $14.4b)

S&P 500 Heap Map

Recap Around the Street 🧠

The pandemic effect of historically low mortgage rates has helped dampen existing home sale activity while new homes take up a larger share of overall sales amidst tight supply.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Depends on which income cohort lens you’re looking through. Higher income cohorts hold the bulk of excess savings now earning ~5%, buffering total income and discretionary spending.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Thursday, May 18th: Jobless claims; Philadelphia Fed business outlook; existing home sales; conference board leading index

• Thursday earnings: Alibaba Group (BABA), Walmart (WMT), Grab Holdings (GRAB), Applied Materials (AMAT), and Farfetch (FTCH)

• Friday, May 19th: Powell and Bernanke at Thomas Laubach research conference speech in D.C. ; Japan CPI

• Friday earnings: Foot Locker (FL) and John Deere (DE)

That’s all for today, folks! We’ll be back around the same time tomorrow with a curated list of important news, economic data and market highlights. 

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