Welcome Back,

Still no debt ceiling deal in sight…

Market Headlines 👀

• US debt ceiling talks still in progress with no resolution as of now.

• US Florida Governor DeSantis will be officially announcing his 2024 presidential run tomorrow live on Twitter with Elon Musk at 6 pm EST.

• US Manufacturing PMI comes in at 48.5; est: 50.2.

• US new homes sales come in at 683k; est: 663k.

• TikTok will grant Oracle access to its source algorithm.

• BlackRock and Pimco (BLK) are warning the recent volatility in treasuries will affect the stability of borrowing costs.

• Apple (AAPL) extends a multi-billion dollar deal with Broadcom over 5g parts and chips.

• Alibaba (BABA) will layoff about 7% of its cloud business staff.

• Alphabet + Uber (GOOGL, UBER) Google’s autonomous driving division Waymo partners with Uber to provide the product via Uber’s platform.

• Alphabet (GOOGL) search ads will soon adapt to queries using generative AI.

• Netflix (NFLX) alerted customers today that sharing passwords will now result in a new $7.99 fee per month.

• Peloton (PTON) revamps workout app with free tiers in a services push.

Earnings 💸

• Lowes (LOW)

  • EPS: $3.67 beats (exp. $3.45)

  • Revenue: $22.35b beats (exp. $21.68b)

• Toll Brothers (TOL)

  • EPS: $2.85 beats (exp. $1.91)

  • Revenue: $2.51b beats (exp. $2.06b)

• PaloAlto Networks (PANW)

  • EPS: $1.10 beats (exp. $0.93):

  • Revenue: $1.72b beats (exp. $1.70b)

S&P 500 Heap Map

Recap Around the Street 🧠

A breakout would be considered bullish as a lot of supply at 4200 would finally be cleared suggesting newfound optimism among marginal buyers.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Outperformance of equal weight would indicate wider breadth and broader participation outside the tech mega caps and could help sustain another up cycle in US stocks.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Wednesday, May 24th: MBA mortgage applications; May FOMC minutes

• Wednesday earnings: Nvidia (NVDA), Snowflake (SNOW), Digital Turbine (APPS), and UIPath (PATH)

• Thursday, May 25th: Jobless claims; US GDP 2nd revision; Interest rate decisions due in Turkey, South Africa, Indonesia; Pending home sales

• Thursday earnings: Costco Wholesale (COST), Ulta Beauty (ULTA), Workday (WDAY), Dollar Tree (DLTR), and Medtronic (MDT)

• Friday, May 26th: Personal income and spending (PCE); Durable goods orders; University of Michigan sentiment and inflation expectations

• Friday earnings: Booz Allen Hamilton (BAH)

Important Update

That’s all for this week, folks! The team will be out for the rest of this week on holiday. We’ll be back around the same time next week with a curated list of important news, economic data and market highlights. 

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