Welcome Back,

A lot on Congress’s plate from AI regulation pressure to debt ceiling approaching.

Let’s keep it concise.

Market Headlines 👀

• US President Biden meets with House Speaker McCarthy today to continue debt ceiling discussion.

• US is planning to buy 3m barrels of oil for its strategic reserves in August.

• US retail sales come in at 0.4%; est 0.8%.

• OpenAI and IBM met with Congress today and are urging to act on AI regulation.

• United Nations forecasts world economic growth of 2.3% in 2023 and 2.5% in 2024.

• JP Morgan (JPM) Dimon says the bank is unlikely to acquire any other struggling regional bank.

• Federal trade commission (FTC) is looking to block Amgen’s deal of $27.8b to acquire Horizon Therapeutics.

• Twitter (TWTR) acquires a job matching tech startup, Laskie.

• Morgan Stanley (MS) plans to layoff 7% of its investment banking unit in the Asia-Pacific region.

• Pfizer (PFE) is issuing $31b worth of bonds in the fourth largest deal ever.

• Canada reports cpi of 4.4% for April YoY; est 4.1%.

Earnings 💸

• Sea Limited (SE)

  • EPS: $0.15 misses (exp. $0.68)

  • Revenue: $3b misses (exp. $3.06b)

• Home Depot (HD)

  • EPS: $3.82 beats (exp. $3.79)

  • Revenue: $37.3b misses (exp. $38.4b)

S&P 500 Heap Map

Recap Around the Street 🧠

This highlights how much a smaller portion other debt payments outside of housing comprise total debt burden. End of student loan moratoriums will result in a pickup in annual change and could crimp other debt sources such as auto and credit. Barring another housing crash, overall consumer debt burden should remain stable due to pandemic era low rates locked in with majority of current vintage mortgages. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Yellen’s comments on debt ceiling default consequences…

Market Preview 🎞️

• Wednesday, May 17th: MBA mortgage applications; Housing starts and building permits; Japan GDP; Eurozone CPI

• Wednesday earnings: Target (TGT), Dynatrace (DT), D-Local (DLO), Cisco (CSCO), TJX Companies (TJX), and Wix.com (WIX)

• 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. 

🔔 Be the first to know. Ensure you never do more than one read if you:

• Move our emails (especially your subscriber introduction) to your primary inbox (Quick instructions).

• 👋 Say hi. Responding to our emails (if any) lets your email provider know to not block us from your main inbox.