Welcome Back,

TikTok faces a ban in Montana, ChatGPT is coming to the iOS and we might see a debt ceiling compromise by next week.

Let’s keep it concise.

Market Headlines 👀

• TikTok will be banned in the state of Montana, governor signs bill effective January 2024.

• US House Speaker McCarthy says a debt ceiling deal will hit the floor next week.

• Micron (MU) set to receive $1.5b in financial incentives from Japan to develop next-gen memory chips for the country.

• OpenAi will launch a official ChatGPT app for iOS.

• Goldman Sachs (GS) says AI could increase S&P500 profits by 30% over the next decade.

• US existing home sales fell -3.4% MoM, now at a 4.28m rate.

• US jobless claims come in at 242k; est 254k.

• Amazon (AMZN) says it will invest $12.7b in its cloud business in India by 2030.

• Charles Schwab (SCHW) will issue debt in order to raise $2.5b in capital.

• Nvdia and ServiceNow (NVDA, NOW) announce a partnership to develop generative AI across enterprise IT.

• Snowflake (SNOW) is advanced talks to acquire a search startup, Neeva in AI push.

• Netflix (NFLX) recently launched ad tier subscription reaches nearly 5 million monthly active users.

• Walt Disney (DIS) ESPN network is laying plans for internal project titled “Flagship” to sell its services directly to streaming services in the coming years.

• Walt Disney (DIS) to pull the plug on a $1b development of new office complex in Florida.

• Icahn Enterprises (IEP) Icahn says his short on the markets betting on a crash has costed him -$9b and he says he was wrong.

• Credit Suisse (CS) it was nearly out of cash before the bank was saved.

• Ford (F) is recalling 4,200 SUVs due to a rear camera issue.

Earnings 💸

• Alibaba Group (BABA)

  • EPS:$1.52 beats (exp. $1.34)

  • Revenue: $29.61b misses (exp. $29.75b)

• Walmart (WMT)

  • EPS:$1.47 beats (exp. $1.31)

  • Revenue: $152.30b beats (exp. $148.72b)

• Grab Holdings (GRAB)

  • EPS:$-0.05 beats (exp. $-0.07)

  • Revenue: $525m beats (exp. $507.50m)

• Applied Materials (AMAT)

  • EPS:$2 beats (exp. $1.83)

  • Revenue: $6.63b beats (exp. $6.38b)

S&P 500 Heap Map

Recap Around the Street 🧠

At some point, investors will look for actual monetization of AI initiatives where such monetization becomes more opaque as you move from upstream (hardware) to downstream (users). So far, the promises of AI are only limited by blue skies.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Largest annual drop in the month of April in 11 years for home prices.

Some of it is normalization of Covid surge, some of it due to lower affordability (high prices and high mortgage rates) despite limited supply. It also confirms how new home sales are increasingly a larger share of total transactions.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• 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 Monday with a curated list of important news, economic data and market highlights. 

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