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- 👉 Last Week + This Week
👉 Last Week + This Week
Insane news from Nvidia, Ethereum, Hims, and Live Nation...
We hope you had a great Memorial Day Weekend.
This past weekend served as an important reminded that we must remember our fallen heroes and be thankful for their sacrifices. The United States is a land of incredible opportunity and we couldn’t more appreciative of those that have paid the ultimate price for our freedom.
The breakdown below will be a consolidation of our typical Week in Review and Investing Week Ahead posts.
Let’s dive into Last Week + This Week!
👉 Last Week
Nvidia announces a 10-for-1 stock split, Target’s sales are slumping, Ethereum’s big ETF news, the new Ozempic weight-loss competition from HIMS, Live Nation’s lawsuit, consumer sentiment drops, rate cut odds sink, and existing home sales drop too.
Key Earnings Announcements:
Nvidia reaches new heights and Target needs to slash prices to compete with Walmart.
Nvidia (NVDA)
Nvidia shares surpassed $1,000 for the first time in extended trading following a robust fiscal Q1 earnings report — driven by strong demand for AI chips.
The company reported EPS of $6.12 (beating the expected $5.59) and revenue of $26.04 billion (surpassing the anticipated $24.65 billion).
Target (TGT)
Target missed Q1 earnings expectations due to inflation-battered shoppers avoiding discretionary purchases — resulting in an immediate -8% drop in TGT.
Investor Events / Global Affairs:
Ethereum’s big ETF news, the new Ozempic weight-loss competition from HIMS, and the Live Nation lawsuit.
Ethereum (ETH) ETFs Receive Initial Approval
The SEC approved rule changes allowing ether ETFs to be listed on stock exchanges, marking a significant step forward for crypto fund issuers like VanEck, BlackRock, and Fidelity.
This is something we’ve talked about numerous times over the past few months!
Although this approval is a win — the launch of these ETFs is not technically imminent as the SEC still needs to approve the issuers' S-1 registration statements.
This process, which could take weeks to months, involves the SEC's Division of Corporation Finance reviewing the S-1s and ensuring proper disclosures. The SEC's approval indicates that ETH may be considered a commodity, offering some regulatory clarity.
The next phase will involve amendments and further comments from the SEC before these ETFs can officially enter the market.
“The commission believes that it is appropriate to approve all of the proposals at the same time in order to foster competition by potentially providing investors with several spot ether-based ETPs from which to choose.”
Hims & Hers (HIMS) Reveals Ozempic Competitor
Hims & Hers Health's stock price surged nearly +37% immediately after announcing it will offer GLP-1 weight-loss drugs amid current shortages.
These drugs will be compounded versions of Ozempic and Wegovy, containing the same active ingredient, semaglutide, and will be available at significantly lower prices.
Customers can access these medications starting at $79 per month for oral kits and $199 per month for injections, with unlimited medical consultations included. The company's CEO highlighted their ability to secure a high-quality supply of these medications, ensuring affordability and accessibility for their customers.
Live Nation (LNY) Sinks From DOJ Antitrust Lawsuit
The Justice Department and over two dozen states have sued Live Nation, alleging the company used monopolistic practices to stifle competition and inflate ticket prices.
The lawsuit aims to break up Live Nation, potentially separating its concert promotion business from Ticketmaster.
Live Nation denies having a monopoly, asserting that Ticketmaster does not set prices and that most service fees benefit venues.
The government must demonstrate that Live Nation's practices violate antitrust laws and that breaking up the company is necessary to restore competition. If successful, the lawsuit could lower ticket prices by increasing market competition.
“This is about more than, ‘I hate Ticketmaster’ or ‘I hate ticket fees’…
This is a ticketing company that merged with a promotion company who also happens to own the largest artist-management firm in America.”
— WSJ
Major Economic Events:
Consumer sentiment, rate cut odds, and existing home sales all drop.
Consumer Sentiment
U.S. consumer sentiment ticked lower this month as concerns around inflation linger.
The final reading of the University of Michigan's consumer sentiment index was 69.1 in May, down from 77.2 in April, according to the survey released Friday.
Expectations for inflation edged up from a month earlier, staying above the average seen before the Covid-19 pandemic.
The sentiment reading was a little higher than economists' expectations. But consumers set out a more pessimistic view of current conditions and the coming months.
Inflation in April stood at 3.4%, the first time in months it hasn't come in higher than expected.
"Deteriorating expectations suggest that multiple factors pose downside risk for consumer spending”
Fed Meeting Minutes
The Fed meeting minutes from the April 30-May 1 meeting revealed increasing concerns among officials about persistent inflation, which remains above the 2% target.
Despite some recent easing, inflation showed little progress in recent months, leading policymakers to consider the possibility of further tightening if inflation risks worsen.
The Fed unanimously decided to maintain the current interest rate range of 5.25%-5.5%, reflecting cautious optimism about economic growth but uncertainty about inflation's trajectory.
Officials noted that inflationary pressures, particularly on low- and moderate-income households, and geopolitical events posed upside risks to inflation. Market expectations for rate cuts have adjusted, with a reduced likelihood of cuts in the near term.
“Many participants noted signs that the finances of low- and moderate-income households were increasingly coming under pressure, which these participants saw as a downside risk to the outlook for consumption… They pointed to increased usage of credit cards and buy-now-pay-later services, as well as increased delinquency rates for some types of consumer loans.”
Existing Home Sales
Sales of previously owned homes fell -1.9% in April from March, despite a +9% monthly increase in inventory.
The median home price rose to a record $407,600, up +5.7% year over year.
First-time buyers comprised 33% of sales, up from 29% the previous year.
High mortgage rates around 7% and tight supply have pressured prices and restrained home sales.
“When we see these mortgage rates, which is a 300 basis point increase from pre-Covid pace, we are in a new territory as to how the lock-in effect will restrain home sales…
Home prices reaching a record high for the month of April is very good news for homeowners… However, the pace of price increases should taper off since more housing inventory is becoming available.”
— Lawrence Yun, Chief Economist of the National Association of Realtors
👉 This Week
Below is an abbreviated version of our typical ‘Investing Week Ahead’ post.
Key Earnings Announcements:
Cava, Costco, Salesforce, and more.
Tuesday (5/28): Box, Cava, Futu, Scotiabank
Wednesday (5/29): Abercrombie & Fitch, Advanced Auto Parts, C3.ai, Chewy, Dick’s Sporting Goods, HP, Okta, Salesforce, UiPath
Thursday (5/30): Best Buy, Burlington, Canopy Growth, Costco, Dell, Dollar General, Elastic, Foot Locker, Hormel Foods, Kohl’s, Marvell, MongoDB, SentinelOne, Ulta Beauty, Veeva, ZScaler
Friday (5/31): BRP
Names We’re Watching Closely:
Investor Events / Global Affairs:
One of crypto’s biggest conferences, Google has questions to answer, and GameStop won’t go down without a fight.
Major Economic Events:
GDP, pending home sales, and the PCE Index.
Tuesday (5/28): Consumer Confidence, S&P Case-Shiller Home Price Index (20 Cities)
Wednesday (5/29): Fed Beige Book
Thursday (5/30): GDP, Pending Home Sales, Retail Inventories, U.S. Trade Balance,
Friday (5/31): Personal Income, Personal Spending, PCE Index
What We’re Watching:
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Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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