Welcome Back,

Market Headlines 👀 

• US PPI comes in at 2.2% YoY in line with expectations; 0.5% MoM vs est 0.3% MoM.

• CPI data releases tomorrow at 8:30 am EST, consensus estimates are at 3.4% YoY.

• Nasdaq hits an all time high ahead of CPI data tomorrow.

• Alphabet (GOOGL) launches new AI models at its developer day conference Google I/O.

• OpenAI launches a new desktop version of ChatGPT.

• Amazon (AMZN) AWS CEO Adam Selipsky is stepping down according to an internal company memo.

• Tesla (TSLA) launches 0.99% financing option for its Model Y in an attempt to boost sales.

• Microsoft, Amazon (MSFT, AMZN) announce they will be investing $5.3b in total into France to expand cloud and AI operations in coming years.

• Gamestop (GME) stock surges after infamous ‘Roaring Kitty’ writes a tweet after a three year hiatus; short sellers lose >$5b.

• Walmart (WMT) lays off hundreds of corporate workers and starts telling employees to relocate if they want to keep their jobs.

• CNBC shares their 12th annual 50 disruptor companies list.

Earnings 💸

• Alibaba (BABA)

  • EPS: $1.40 misses (exp. $1.42)

  • Revenue: $30.7b beats (exp. $30.4b)

• Sea Limited (SE)

  • EPS: $-0.04 misses (exp. $0.03)

  • Revenue: $3.7b beats (exp. $3.6b)

• Home Depot (HD)

  • EPS: $3.63 beats (exp. $3.59)

  • Revenue: $36.4b misses (exp. $36.7b)

S&P 500 Heatmap 🔥 

Recap Around the Street 🧠

CPI YoY estimates for tomorrow and JP Morgan’s plan for CPI day:

Sea Limited earnings snapshot (contributed by Brad Freeman @Stockmarketnerd):

A strong week of trading propelled the S&P 500 close to its prior high from April. Watch how the index interacts with this level. The index isn’t overbought yet (as seen by the RSI index in the bottom pane), while breadth has improved with 30% of members now trading at 20 day highs. As we test prior highs, it is helpful to think about catalysts to the up/downside. Catalysts to the upside: abundant liquidity from Fed (tapering QT) and Treasury (bills issuance, TGA spend); share repurchases; EPS revisions higher Catalysts to the downside: signs of softening economic data (PMIs, sentiment, labor); cyclical sectors lagging; higher rates; a ceiling in valuations (Contributed by Cameron Dawson, CIO at NewEdge Wealth).

Market Preview 🎞️

• Wednesday, May 15th: MBA mortgage applications; Consumer Price Index (CPI); Retail sales

• Wednesday earnings: Grab holdings (GRAB), Monday.com (MNDY), Dynatrace (DT), and Cisco (CSCO)

• Thursday, May 16th: Weekly jobless claims; EIA natural gas inventories; Housing starts

• Thursday earnings: Walmart (WMT), Jd.com (JD), and John Deere (DE)

• Friday, May 17th: Monthly options expirations (OPEX)

Enjoy reading?👇

That’s all for today, folks! We’ll be back around the same time Thursday 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.