📈 Verdict volatility

Wall Street braces for volatility after Trump verdict, Wall Street Billionaires are rushing to back Trump, TikTok preparing a US copy of the app’s core algorithm, S&P experiences pricing glitch, and Tesla shareholders advised to reject Musk’s pay package...

Author

Smart Owl
May 31, 2024

Good morning.

The Fast Five → Wall Street braces for volatility after Trump verdict, Wall St billionaires rushing to back Trump, TikTok is preparing a US copy of the app’s core algorithm, S&P experiences pricing glitch, and Tesla shareholders advised to reject Musk’s pay package…

Calendar: (all times ET)

  • Today: PCE Index, 8:30a

Your 5-minute briefing for Friday, May 31:

BEFORE THE OPEN

As of market close 5/30/2024.

PRE-MARKET

MARKETS

  • US stocks fell yesterday as investors reacted to economic data hinting at a slowing economy

  • Markets also braced for crucial inflation data due today

EARNINGS

  • Costco beat Q3 EPS and revenue estimate on a 6.5% jump in same-store sales driven by its growing international business (link)

  • Dell plummeted 20%+ despite reporting better-than-expected Q1 EPS and revenue as growth in its AI server business was not enough to please investors (link)

  • Dollar General fell ~8% despite beating Q1 earnings estimate due to a softer-than-expected profit forecast as customers remain price sensitive this year (link)

  • Kohl's plunged ~23% after posting a surprise Q1 loss, missing on revenue, and lowering guidance as its turnaround remains slow to materialize (link)

  • MongoDB plunged ~24% despite beating Q1 EPS estimates due to light Q2 guidance and a lowered FY forecast on low client demand (link)

  • Full calendar here

NEWS BRIEFING

Yardeni says stock market tends to tune out US political risk. Trump’s sentencing set for July 11, days before GOP Convention.

TikTok is working on a clone of its recommendation algorithm for its 170M US users resulting in a version that operates independently of its Chinese parent and be more palatable to American lawmakers who want to ban it.

  • Wall Street Billionaires are rushing to back Trump, verdict be damned (link)

    • Trump campaign donation page crashes after guilty verdict (link)

    • Trump could still run for president if given prison time, though such a sentence is unlikely (link)

  • Wall Street aces gig T+1 test with no rise in failed trades (link)

  • Traders say disruptions minimal during S&P 500 pricing glitch (link)

  • Global fund launches in China hit a record high (link)

  • China is weighing a record $138M fine for PwC (link)

  • BofA CEO expects 10%-15% jump in IB fees in Q2 (link)

  • Zero-down mortgages are making a comeback (link)

  • UBS shakes up management to prepare for CEO succession (link)

  • US GDP data was revised downwards on soft consumer spending (link)

  • Tesla shareholders advised by proxy adviser to reject Musk’s pay package (link)

  • US issued guidelines for voluntary carbon market (link)

  • US is slowing AI chip exports to Middle East (link)

  • Americans still prefer gas vehicles over hybrid or EVs (link)

  • US pending home sales see largest drop in three years (link)

  • Walmart managers are making over $500k/year (link)

CRYPTO

  • Terraform Labs and Do Kwon reached a ‘settlement in principle’ with SEC (link)

  • VC a16z donated $25M to crypto PAC Fairshake (link)

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BULLISH BITES

💡 Perspective: Pandemic puts Pioneer oil price-fixing accusations in a different light.

🤖 Full Circle: Google Zero is here — now what?

🤔 Second Thoughts: Why the UK’s richest plumber regrets selling out to KKR.

🐝 Brilliant: 12-year-old wins astonishing spell-off at Scripps National Spelling Bee.

DAILY SHARES

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