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Coinbase is being sued by the SEC, and Merck is suing the US government. Keep reading!

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Market Headlines 👀 

• Coinbase (COIN) is being sued by the US SEC for operating as an unregistered broker.

• Merck (MRK) is suing the US government to halt a US medicare drug price negotiation.

• Tesla (TSLA) all Tesla Model 3’s will now qualify for the full $7,500 government tax credit.

• World Bank Group chief economist says global growth will dip to 2.1% this year, which is lower than the average over the last decade.

• Cava mediterranean restaurant is looking to raise $274m via a US IPO public offering.

• Intel Inc. (INTC)is looking to raise about $1.5b in its partial sale of Mobileye.

• Sequoia Capital venture capital firm announced they will split the company into three different units, citing growing complexity in its business.

• Twitter (TWTR) new CEO Linda Yaccarino officially took over the position as of yesterday.

• Boeing (BA) says it has found a new defect in its 787 Dreamliners and this will delay deliveries.

• Reddit is facing pushback from some of its forums as they plan to protest the company’s recent price increase for third party developers.

• Reserve Bank of Australia raised its benchmark rate .25bps.

Earnings 💸

• Dave & Busters (PLAY)

  • EPS: $1.45 beats (exp. $1.24

  • Revenue: $597.3m

• Stitch Fix (SFIX)

  • EPS: $-0.17 beats (exp. $-0.32)

  • Revenue: $394.9m beats (exp. $388.9m)

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.

A Simple Investment Gameplan: Many investors have only had careers during low, stable inflation and more recently extraordinarily monetary stimulation. Those dynamics meant that some version of 60/40 worked pretty well.

The challenge of creating an investing gameplan today is the significant uncertainty that lies ahead. Will it be a long-term period of stagflation, monetary stimulation, deflation, cyclical chop, or something else we haven’t thought about like global war? Crafting an investment gameplan requires building a portfolio that can withstand a wide range of possible outcomes.

Further analysis — > Read more !

Recap Around the Street 🧠

The S&P trades at 18.3x 12 month forward earnings based on Bloomberg consensus analyst estimates. Still below the 20+ multiple seen in 2021 and much of the recent upward revisions have been primarily focused in large cap technology and consumer stocks. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Wednesday, June 7th: Trade balance; MBA Mortgage applications; Bank of Canada rate decision; consumer credit

• Wednesday earnings: Gamestop (GME), HashiCorp (HCP), and Smartsheet (SMAR)

• Thursday, June 9th: US initial weekly jobless claims; Wholesale trade

• Thursday earnings: Docusign (DOCU)

• US Federal reserve in blackout period ahead of FOMC meeting next week

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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