Welcome Back,

The next bank to fall is…

Let’s keep it concise.

Market Headlines 👀

• PacWest Bancorp (PACW) becomes the latest regional bank to consider strategic options, including a sale.

• Toronto-Dominion Bank (TD) terminates its merger agreement with First Horizon Bank (FHN).

• US debt ceiling default could affect up to 8.3m jobs and a 6.1% reduction in economic output per latest report by the White House Council of Economic Advisors.

• US jobless claims come in at 242k; est 240k.

• US Treasury department announced today US Banks have ‘substantial” liquidity and believe deposits are stable.

• US 30y Mortgage rates tick down after two weeks coming in at 6.39%.

• European Central Bank raises rates by 25bps.

• Union Bank of Switzerland (UBS) is weighing options to sell Credit Suisse’s Swiss bank arm.

• Shopify (SHOP) announces they will layoff 20% of its staff.

• Shopify (SHOP) will sell their logistics arm to their logistics partner Flexport.

• Salesforce (CRM) announces conversational AI assistant Slack GPT.

• Goldman Sachs (GS) is being looked into by government agencies in their role of a failed takeover for Silicon Valley Bank.

• Johnson & Johnson (JNJ) consumer arm Kenvue raises $3.8b at $22 a share in a US IPO.

• Apollo Global Management is acquiring aluminum-products company Arconic (ARNC).

Earnings 💸

• Apple (AAPL)

  • EPS: $1.52 beats (exp. $1.43)

  • Revenue: $94.8b beats (exp. $92.8b)

• Shopify (SHOP)

  • EPS: $0.01 beats (exp. $-0.04)

  • Revenue: $1.51b beats (exp. $1.43b)

• Datadog (DDOG)

  • EPS: $0.28 beats (exp. $0.24)

  • Revenue: $482m beats (exp. $470.46m)

• Block (SQ)

  • EPS: $0.40 beats (exp. $0.35)

  • Revenue: $4.99b beats (exp. $4.6b)

• Booking Holdings (BKNG)

  • EPS: $11.60 beats (exp. $10.67)

  • Revenue: $3.8b beats (exp. $3.76b)

• Expedia (EXPE)

  • EPS: $-0.20 misses (exp. $0.05)

  • Revenue: $2.67b meets (exp. $2.67b)

• Redfin (RDFN)

  • EPS: $-0.55 beats (exp. $-1.01)

  • Revenue: $325.7m beats (exp. $314.18m)

• Lyft (LYFT)

  • EPS: $0.50 beats (exp. $0.57)

  • Revenue: $1b beats (exp. $977m)

• Doordash (DASH)

  • EPS: $-0.41 beats (exp. $-0.58)

  • Revenue: $2.04b beats (exp. $1.93b)

• Atlassian (TEAM)

  • EPS: $0.54 beats (exp. $0.42)

  • Revenue: $915.45m misses (exp. $938.75m)

• Moderna (MRNA)

  • EPS: $0.19 beats (exp. $-1.66)

  • Revenue: $1.86b beats (exp. $1.18b)

• Coinbase (COIN)

  • EPS: $-0.34 beats (exp. $-0.87)

  • Revenue: $772.5m beats (exp. $653m)

• Fortinet (FTNT)

  • EPS: $0.34 beats (exp. $0.29)

  • Revenue: $1.26b beats (exp. $1.2b)

• DraftKings (DKNG)

  • EPS: $-0.87 misses (exp. $-0.85)

  • Revenue: $770m beats (exp. $700m)

• Royal Caribbean Cruises (RCL)

  • EPS: $_ beats (exp. $_)

  • Revenue: $_ beats (exp. $_)

• Peloton (PTON)

  • EPS: $-0.78 misses (exp. $-0.45)

  • Revenue: $748.9m beats (exp. $711.73m)

• ConoccoPhillips (COP)

  • EPS: $2.38 beats (exp. $2.06)

  • Revenue: $15.51b misses (exp. $15.87b)

S&P 500 Heap Map

Recap Around the Street 🧠

Which bank might go next? (meme of the day)…

Unless the Fed sells securities outright to hit QT targets, balance sheet roll off will move like molasses. (contributed by Benjamin Lavine, CIO at 3D/L Capital)

Sentiment cools off as economy cools off and we enter weaker seasonality. (contributed by Benjamin Lavine, CIO at 3D/L Capital)

Newsletter shoutout 🔎

If you enjoy investing in stocks, want help navigating today's volatile markets, and/or like reading others stock analysis to get different points of view, Stock Market Nerd is definitely worth the read.

Weekly issues insightfully cover & contextualize relevant news from popular companies like CrowdStrike, SoFi and Shopify with some macro and market commentary sprinkled in.

The Nerd’s Deep Dives (they’re actually deep dives) are extensive reports on a single company detailing business model, investment case, risks and every other important detail that investors should know.

And the best part? It’s 100% FREE. Good luck finding this quality of free research on public companies elsewhere. Check it out and subscribe now!

Market Preview 🎞️

• Friday, May 5th: Non-farm payrolls; Consumer credit

• Friday earnings: AMC Networks (AMC)

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

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