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UBS, along with many other firms continue cutting jobs. US new home sales, consumer confidence and durable goods orders all exceed expectations.

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Market Headlines 👀 

• US June Consumer conference board comes in at 109.7; est: 104, highest since January 2022.

• US May new home sales come in at 763k; est: 675k. 12.2% MoM increase.

• US May durable goods orders come in at +1.7%; est: -1.0%.

• US Federal chair Jerome Powell to speak at the ECB forum on central banking 2023 - policy panel discussion at 9:30 am tomorrow in Portugal.

• Snowflake (SNOW, NVDA) partner to help businesses harness their data for generative AI in the data cloud.

• UBS Group (UBS) plans to cut more than half of Credit Suisse’s staff in the coming months.

• European Central Bank ECB president Lagarde states ECB must keep rates high to fight off wage-price spiral.

• Amazon (AMZN) to launch a local business delivery network to enable small businesses to manage their own deliveries.

• Robinhood (HOOD) plans to layoff 7% of its full time staff.

• KPMG plans to layoff 5% of its workforce.

• Lordstown Motors (RIDE) EV maker and former SPAC officially files for bankruptcy.

• Ford (F) plans to layoff at least 1,000 contractors and salaried workers.

Earnings 💸

• Manchester United (MANU)

  • EPS: £-0.12 beats (exp. £-0.18)

  • Revenue: £118.45m misses (exp. £132.8m)

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.

Imperfect Replication Beats Single Manager Selection 9/10 Times: One of the commonly raised concerns about Hedge Fund replication strategies is the tracking error to its index. While any replication is bound to be imperfect, it is important to wrestle with the alternative that most investors are choosing today - the significant tracking error that comes from concentrated investments in single managers.

Working through the numbers, it looks like replication could be about 9x more likely to outperform single manager investments over time.

Further analysis — > Read more !

Recap Around the Street 🧠

Supply chain stress which surged through the pandemic has now reached pre pandemic levels. Companies aren’t looking to stockpile goods anymore, and staff shortages are not as high as they had once reached. All in all, inflation has show signs of cooling down, but the question remains has the increase in wages paired with disruptions across the globe in supply chain / energy prices volatility will this all lead to a wage-price spiral? Or is this the new normal and the Fed needs to adjust its inflation target?

Resilient housing demand, consumer spending and durable goods all come in higher, soft landing in the cards?

Market Preview 🎞️

• Wednesday, June 28th: MBA mortgage applications; Retail inventories;

• Thursday, June 29th: US initial weekly jobless claims; GDP report; Pending home sales

• Friday, June 30th: Personal income and spending (PCE); 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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