What Moved The Markets This Week 📈
W21 - Tesla's Major Partnership With Ford, Meta Sued $1.3B, Biden and GOP Agree On Debt Ceiling Terms, Inflation Bounces Higher, Apple Inks Chip Deal With Broadcom, and NVDA + SNOW + PANW Earnings
Sunday Morning Markets
Trading Week 21, covering Monday, May 22 through Friday, May 26. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
PCE inflation bounces higher to 4.7% in April (exp. 4.6%)
A tentative deal has been met to raise debt ceiling, avoid default
Apple inks multibillion-dollar deal with Broadcom
Ex-OpenAI execs raise $450M for AI startup Anthropic
Netflix password-sharing crackdown starts in the U.S.
Fed officials uncertain about future rate hikes, minutes show
Meta smacked with $1.3B fine from EU regulators
State-sponsored Chinese hackers hit critical U.S. infrastructure
Germany’s economy enters a recession
Earnings from Nvidia, Snowflake, Palo Alto Networks — see breakdowns below
US Markets 🇺🇸
Biden, McCarthy reach a tentative deal to avoid U.S. default after several negotiations on the debt ceiling. A senior Democratic aide has said a deal is “very close” and could be announced as soon as tonight or tomorrow morning.
Fed’s key inflation gauge jumps in April as the PCE index rose 4.7% for the year, above estimates and up from the 4.6% reading seen in March, giving the Fed ammo for more rate hikes. Consumer spending increased 0.8% for the month.
Apple inks a multibillion-dollar deal with Broadcom to make 5G components in the United States. Apple noted that this deal is part of its commitment to invest $430B in the U.S. economy. AVGO 0.00%↑ shares are up 47% this year.
Ex-OpenAI execs raise $450M for Anthropic, a rival AI company building a competitor to ChatGPT named Claude. Google, Salesforce, and Zoom Ventures led the fundraising round. Read more about Claude here.
Netflix cracks down on password-sharing in the US. The streamer has said over 100M households share accounts, which is about 43% of its global user base. Netflix added that this has affected its ability to invest in new content.
Fed officials not confident more rate hikes are needed in order to tame inflation, meeting minutes showed. CME’s FedWatch tool currently predicts a 36% chance of a pause at the next FOMC meeting.
Paramount+ to merge with Showtime on June 27 to create a larger content library. After the merger, the price of Paramount+ with Showtime will increase to $11.99 per month, up from $9.99. The Showtime app will be sunsetted this year.
Ford to use Tesla’s supercharger network in a surprising partnership between two major EV automakers. Under the agreement, Ford owners will be granted access to more than 12K Tesla Superchargers across the U.S. and Canada.
Rest of World 🌏
Meta fined a record $1.3B by EU regulator over issues with data transfers to the US. Ireland’s Data Protection Commission also told Meta to “suspend any future transfer of personal data to the US within the period of five months”.
China hackers hit critical US infrastructure in a variety of industries, including government and communications organizations, warned Microsoft. The state-sponsored hacking group is named “Volt Typhoon”.
German economy enters recession as Q1 GDP data is revised to a -0.3% decline. This comes after Germany recorded a 0.5% contraction in Q4’22. Two consecutive quarters of negative growth define a technical recession.
Crypto ⚡
Gemini says DCG missed a $630M payment but is working to provide forbearance in order to avoid a default. Gemini co-founder Cam Winklevoss has publicly accused DCG CEO Barry Silbert of engaging in “bad faith stall tactics.”
FTX’s legal billings continue to hint at a relaunch of the original FTX crypto exchange. Filings show that CEO John Ray spent 6.7 hours on items related to “2.0” which is thought to mean FTX 2.0.
Earnings Reports 💰
See more breakdowns for Costco, Zoom, Intuit, Splunk, Workday on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
Markets Closed - Memorial Day
Tuesday
US - CB Consumer Confidence (MAY)🇺🇸
China - Manufacturing PMI (MAY)🇨🇳
Earnings Reports: HP, Box💰
Wednesday
US - JOLTs Job Openings (APR)🇺🇸
Canada - GDP (MAR)🇨🇦
Germany - CPI Inflation (MAY)🇩🇪
Germany - Unemployment (MAY)🇩🇪
Earnings Reports: Salesforce, Crowdstrike, Veeva, NetApp, Okta, ChargePoint💰
Thursday
US - ISM Manufacturing PMI (MAY)🇺🇸
US - ADP Employment (MAY)🇺🇸
UK - Manufacturing PMI (MAY)🇬🇧
Europe - CPI Inflation (MAY)🇪🇺
Earnings Reports: Broadcom, Lululemon, MongoDB, VMWare, Zscaler, Elastic, SentinelOne💰
Friday
US - Nonfarm Payrolls (MAY)🇺🇸
US - Unemployment (MAY)🇺🇸
Earnings Reports: Samsara, Asana💰
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