Welcome Back,

US debt ceiling talks commence and we have inflation data due tomorrow!

Let’s keep it concise.

Market Headlines 👀

• US President Biden meets with the GOP and other officials over the debt ceiling today.

• US House Speaker McCarthy rejects a short-term debt limit extension.

• US Small Business optimism comes in at 89; est 89.6, marks lowest since March 2013.

• Boeing (BA) wins a landmark order worth up to $40b from RyanAir.

• Facebook (META) announces it is expanding its Ads on reels to help creators earn more.

• Palantir (PLTR) sees record demand for its new AI product called AIP.

• Microsoft, Goldman Sachs and CBOE (MSFT, GS) are teaming up to launch their own blockchain network.

• Druckenmiller believes the US is on the brink of a recession and predicts a hard landing.

• Wendys (WEN) is looking to automate its drive-through service using software and AI built by Google.

• Eventbrite the event planning platform is integrating AI capabilities into their event planning process.

• Amazon (AMZN) is offering customers $10 to pick up package instead of opting for delivery.

• Microsoft (MSFT) LinkedIn is laying off 716 employees and shutting down its China version of their app.

• Goldman Sachs (GS) Marcus high yield savings account increases its interest rate to 4.15% and is now matching Apple’s saving account.

Earnings 💸

• Airbnb (ABNB)

  • EPS: $0.18 beats (exp. $0.16)

  • Revenue: $1.82b beats (exp. $1.79b)

• Twilio (TWLO)

  • EPS: $0.47 beats (exp. $0.21)

  • Revenue: $1.1b beats (exp. $1b)

• Digital Ocean (DOCN)

  • EPS: $0.28 misses (exp. $0.29)

  • Revenue: $165.13m beats (exp. $164.13m)

• Rivian (RIVN)

  • EPS: $-1.25 beats (exp. $-1.59)

  • Revenue: $661m beats (exp. $660m)

• Affirm (AFRM)

  • EPS: $-0.69 beats (exp. $-0.92)

  • Revenue: $381m misses (exp. $390m)

• Upstart (UPST)

  • Revenue: $103m beats (exp. $99.72m)

• Under Armour (UAA)

  • EPS: $0.18 beats (exp. $0.15)

  • Revenue: $1.40b beats (exp. $1.36b)

S&P 500 Heap Map

Recap Around the Street 🧠

Inflation estimates for tomorrows CPI print which is due at 8:30 est.

Investors and fed focused on super core (core ex shelter) which continues to trend lower despite wages still tracking 4%. Medical services have helped slow down super core over the last several months along with goods, especially durables. The upside risk is that demand for services will remain elevated as long as the labor market remains strong. This could force the Fed to more directly target labor, resulting in a major spike in unemployment and a deeper recession.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Wednesday, May 10th: MBA mortgage applications; Consumer Price Index (CPI)

• Wednesday earnings: Walt Disney (DIS), Roblox (RBLX), The Trade Desk (TTD), Unity (U), BlackStone (BX), Robinhood (HOOD)and Beyond Meat (BYND)

• Thursday, May 11th: Price Producer Index (PPI); Jobless claims

• Thursday earnings: Jd.com (JD), and Fiverr (FVRR)

• Friday, May 12th: University of Michigan sentiment survey

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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