Welcome Back,

Debt ceiling deal finally in sight…

Market Headlines 👀 

• US Debt ceiling set for a vote in the House later today.

• US JOLTS job openings for the month of April come in at 10.103m; est 9.4m.

• US Banks see a record decline in deposits for the Q1 period.

• CrowdStrike (CRWD) partners with Amazon AWS to develop generative AI services in the cyber security space.

• JP Morgan (JPM) CEO Jamie Dimon visits China for the first time since 2021 and warns on uncertainty given decline in factory activity.

• Pershing Square Capital Ackman believes JP Morgan CEO Dimon should consider running for president in 2024.

• Telsa (TSLA) is planning to showcase a revamped model 3 in Musk’s first visit to its Shanghai factory.

• Lucid Motors (LCID) is raising about $3b in new capital, majority coming from the Saudis.

• Credit Suisse (CS) a group of bankers are suing Switzerland’s regulator as part of the UBS takeover turning some of their bond based bonuses become worthless.

• Twitter (TWTR) according to a report by Fidelity they believe Twitter is worth 1/3 the value of what it was purchased at ($44b purchase).

Earnings 💸

• CrowdStrike (CRWD)

  • EPS: $0.57 beats (exp. $0.51)

  • Revenue: $692.6m beats (exp. $677.4m)

• Salesforce (CRM)

  • EPS: $1.69 beats (exp. $1.61)

  • Revenue: $8.25b beats (exp. $8.18b)

• Okta (OKTA)

  • EPS: $0.22 beats (exp. $0.12)

  • Revenue: $518m beats (exp. $510.5m)

• C3 AI (AI)

  • EPS: $-0.13 beats (exp. $-0.17)

  • Revenue: $72.4m beats (exp. $71.29m)

S&P 500 Heap Map

Recap Around the Street 🧠

This highlights the level of concentration and narrow breadth characterizing US equities. Most of the systematic risk reflected in US indices could be captured by just investing in the top 10-15 stocks by market weight.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Event risk being priced out as liquidity funds (aka money market funds) feel more comfortable buying T-Bills around the X date of the debt ceiling. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Thursday, June 1st: Jobless claims; ISM manufacturing

• Thursday earnings: Broadcom (AVGO), Lulu Lemon (LULU), Zscaler (ZS), MongoDB (MDB), SentinelOne (S) and Asana (ASAN)

• Friday, June 2nd: Unemployment report and non-farm payrolls

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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