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US debt ceiling talks set for tomorrow, will the discussion come down to the wire?

Let’s keep it concise.

Market Headlines 👀

• US Treasury Secretary Yellen says no other alternative other than raising debt limit.

• US President Biden is set to meet with House Speaker McCarthy and other senior officials regarding the US debt ceiling tomorrow.

• OpenAi losses doubled to $540m last year as it developed ChatGpt.

• Mastercard (MA) former CEO officially named president of the World Bank.

• Microsoft (MSFT) is teaming up with AMD to expand into AI processors.

• Qualcomm (QCOM) acquires Israel chipmaker Autotalks for about ~$350-400m to expand further into automative sector.

• Apple (AAPL) is issues a $5.25b bond offering in a five part bond sale.

• Coinbase (COIN) is considering UAE as a potential international hub.

• Google (GOOGL) plans to announce many updates to their generative AI features and capabilities at its developer conference on Wednesday.

• Binance halts Bitcoin withdrawals two times in a matter of hours citing volume concerns.

• Amazon (AMZN) will start a new division to distribute its movies and original tv shows to other sites.

• Twitter (TWTR) begins purging accounts which have been inactive for several years.

Earnings 💸

• Paypal (PYPL)

  • EPS: $1.17 beats (exp. $1.10)

  • Revenue: $7.04b beats (exp. $6.98b)

• Lucid Motors (LCID)

  • EPS: $-0.43 misses (exp. $0.41)

  • Revenue: $149.43m misses (exp. $209.88m)

• Palantir (PLTR)

  • EPS: $0.05 beats (exp. $0.04)

  • Revenue: $525m beats (exp. $506.1m)

• Kkr & Co (KKR)

  • EPS: $0.81 beats (exp. $0.74)

  • Revenue: $1.276b beats (exp. $1.21b)

S&P 500 Heap Map

Recap Around the Street 🧠

‘Yes, it seems as though I’m going nowhere really fast.’

The S&P has now been flat for 2 years. In May 2021, the S&P was trading at 21.6x earnings, with FY 21 EPS expected at $190/sh. Today, the S&P is trading at 18.7x earnings, with FY 23 EPS $220/sh. (Contributed by Cameron Dawson, CIO at NewEdge Wealth).

On debt ceiling, expect more 11th hour drama and can kicking into 2024. Path of least resistance. Labor market holds the key to everything at this point; everything unravels if employment unravels.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Tuesday, May 9th: NFIB Small Business optimism

• Tuesday earnings: Airbnb (ABNB), Rivian (RIVN), Twilio (TWLO), Affirm (AFRM), Upstart (UPST), Digital Ocean (DOCN) and Under Armour (UAA)

• Wednesday, May 10th: MBA mortgage applications; Consumer Price Index (CPI)

• Wednesday earnings: Walt Disney (DIS), Roblox (RBLX), The Trade Desk (TTD), Unity (U), BlackStone (BX), Robinhood (HOOD)and Beyond Meat (BYND)

• Thursday, May 11th: Price Producer Index (PPI); Jobless claims

• Thursday earnings: Jd.com (JD), and Fiverr (FVRR)

• Friday, May 12th: University of Michigan sentiment survey

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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