Welcome Back,

$SPX is closing in on a 52 week high, in a week where we will see new CPI data, PPI and an update from the Fed on the benchmark rate!

Together with 🤝🏽

Market Headlines 👀 

• Federal Trade Commission is looking to block Microsoft’s deal with Activision Blizzard.

• Nasdaq (NDAQ) announces it will acquire Adenza for $10.5b a maker of software used by many banks and brokerages.

• Alphabet (GOOGL) will be hit with more EU antitrust charges regarding its ad tech business. Company has already faces over $8b in fines.

• Goldman Sachs (GS) CEO David Solomon believes interest rates will go higher as inflation remains sticky.

• Tesla, General Motors (TSLA, GM) GM will partner with Tesla to gain access to its 12,000 charger network for its EV vehicles.

• Reddit goes down for a while today as thousands of users protest the new API policy.

Earnings 💸

• Oracle (ORCL)

  • EPS: $1.67 beats (exp. $1.58)

  • Revenue: $13.8b beats (exp. $13.47b)

S&P 500 Heap Map

A Note From Unlimited Funds

Bob Elliott, a former investment committee executive from Bridgewater Associates, has moved into his newest venture - Unlimited Funds, a startup ETF issuer. The firm’s mission is to help investors access returns of sophisticated investment strategies. A prominent voice in the financial community on Twitter, Bob will provide research and insights through the month in this section daily.

Where Does All That Hedge Fund Alpha Go?: Many investors think that Hedge Fund strategies are poorly performing relative to index investing. Exactly the opposite is true. Excluding fees, the returns from the hedge fund industry as a whole over the last 20 years have been as good as stock returns with about 40% the risk. That's a great return stream.

The problem is that the vast majority of Hedge Fund’s alpha ends up in the managers’ pockets. Reduce the fees and these strategies are pretty compelling.

Further analysis — > Read more !

Recap Around the Street 🧠

US May inflation reading will be reported tomorrow at 8:30 am EST. Below are estimates from the street, consensus is 4.1%.

Market Preview 🎞️

• Tuesday, June 13th: May CPI inflation data

• Wednesday, June 14th: Price Producer Index (PPI); MBA mortgage applications; US Fed FOMC meeting

• Thursday, June 15th: US initial weekly jobless claims; Retail sales data; Philadelphia Business outlook

• Friday, June 16th: OPEX expirations; New York Fed services business activity; University of Michigan sentiment and inflation expectations

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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