What Moved The Markets This Week 📈
U.S. Home Listings Surge 35%, Inflation Cools Off In May, EU Sues Microsoft For Antitrust Violations, Rivian Gets $5B Investment From Volkswagen, and NKE + FDX + MU Earnings
Sunday Morning Markets
Trading Week 26, covering Monday, Jun 24 through Friday, Jun 28. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
US Markets 🇺🇸
Core PCE shows inflation cooling
Home listings surge 35% from last year
Earnings from FedEx, Micron, Nike
Global Markets 🌏
EU regulators go after Apple and Microsoft
Bytedance to build AI chip with Broadcom
China’s iPhone sales surge 40%
Tech ⚡
Amazon to launch Temu-like discount section
Rivian receives $5B investment from Volkswagen
Record labels sue AI music generation startups
US Markets 🇺🇸
Fed’s preferred inflation gauge slowed in May to its lowest level in three years. The Core PCE Index increased 2.6% from a year ago, matching estimates. Consumer spending, however, increased 0.2%, weaker than forecasted.
Home prices cool off as active listings jump 35% from last year. The increasing inventory is expected to balance supply and demand, potentially leading to more favorable conditions for buyers in the future.
US judge rejects Visa and Mastercard’s $30B settlement, citing insufficient relief for merchants. The decision could force Visa and Mastercard to negotiate a settlement more favorable to merchants or go to trial.
Southwest Airlines cuts revenue forecast citing changes in customer booking patterns. It expects revenue per available seat mile (RPASM) to fall 4 to 4.5% this quarter, while unit expenses will rise 7.5%.
Paramount+ to increase prices for its streaming plans as the company looks to turn around its business. Its Paramount+ with Showtime plan will jump to $12.99/month, while the Essential plan will increase to $7.99/month.
NFL ordered to pay $4.7 billion in damages in its legal battle over Sunday Ticket. A jury ruled the league violated antitrust laws by exclusively offering the package through DirecTV, inflating prices, and limiting competition.
Prosecutors recommend criminal charges against Boeing to the Department of Justice over allegations that the plane manufacturer violated a settlement related to two fatal crashes involving its 737 Max aircraft.
Novo Nordisk plots $4.1 billion in U.S. factory to boost production of Wegovy and Ozempic. Demand for Wegovy and Ozempic has outstripped supply over the last year, spurring intermittent shortages in the U.S.
Global Markets 🌏
EU charges Microsoft with antitrust violations over its bundling of Teams and Office. Microsoft unbundled the two products last year in hopes of avoiding fines, but the EU said the changes were “insufficient to address its concerns.”
Apple's iPhone shipments in China surged 40% last month, extending the rebound seen in April. The sales boost comes after Apple launched an aggressive discounting campaign, offering price cuts of up to 2,300 yuan.
ByteDance to develop an advanced AI chip with Broadcom, ensuring stable high-end chip supply amid US-China tensions. The 5nm ASIC chip will be made by Taiwan's TSMC, adhering to US export rules.
Canada's inflation reaccelerates to 2.9%, complicating the Bank of Canada's plans for a rate cut in July. This uptick indicates persistent inflationary pressures and will prompt the BOC to reconsider its monetary policy.
EU regulators accuse Apple of breaching its tech rules as the company does not allow customers of its App Store to be steered to alternatives. This could lead to fines of up to 10% of Apple's global revenue.
Shein confidentially files for London IPO as its U.S. listing stalls amid mounting backlash tied to allegations of forced labor in its supply chain. Shein brought in well over $30 billion of revenue last year.
Tech ⚡
Amazon to launch Temu-like discount section with direct shipping from China. The new marketplace will sell unbranded products that will take 9 to 11 days to deliver to customers.
Volkswagen to invest $5 billion into Rivian starting with an initial investment of $1 billion. The partnership aims to develop a joint EV platform, enhancing Rivian's financial stability while leveraging Volkswagen's automotive expertise.
OpenAI acquires Multi, a remote collaboration platform, just days after acquiring database analytics firm Rockset. One source says the deal is an acqui-hire and most of Multi’s team will join OpenAI.
SpaceX secures major NASA contract to deorbit ISS in 2030. The contract is worth up to $843 million. SpaceX will build the ‘Deorbit Vehicle’ but NASA will operate it throughout the mission.
Major record labels sue AI music generator startups accusing them of copyright infringement. Sony, Universal, and Warner Records have come together to go after Udio and Suno.
Uber and Lyft will provide drivers with a minimum wage in the state of Massachusetts. Under the settlement, drivers will receive guaranteed minimum earnings of $32.50 per active hour spent on a trip.
TikTok to compete with Amazon Prime Day through its own major sale. Starting July 9, TikTok Shop will offer sales on thousands of items, including clothing, beauty products, books, and decor.
Amazon doubles value of AWS startup credits to $200K as Microsoft’s Azure continues to gain market share. This should help lock startups into using their cloud infrastructure but may hurt margins moving forward.
Earnings Reports 💰
See other breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - ISM Manufacturing PMI 🇺🇸
UK - BOE Consumer Credit 🇬🇧
EU - ECB Pres. Lagarde Speech 🇪🇺
DE - Inflation Rate 🇩🇪
Tuesday
US - Fed Chair Powell Speech 🇺🇸
US - JOLTs Job Openings 🇺🇸
EU - Inflation Rate 🇪🇺
Wednesday
US - ISM Services PMI 🇺🇸
US - FOMC Meeting Minutes 🇺🇸
Earnings: Constellation💰
Thursday
US - Markets Closed 🇺🇸
Friday
US - Nonfarm Payrolls 🇺🇸
US - Unemployment Rate 🇺🇸
CA - Ivey PMI 🇨🇦
EU - Retail Sales 🇪🇺
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