What Moved The Markets This Week 📈
W19 - Alphabet's Major AI Launch, CPI Inflation Cools Off, Elon Musk Out As Twitter CEO, PacWest Sees Deposits Draining, Disney+ To Add Hulu Content, and Airbnb + PayPal + Palantir Earnings
Sunday Morning Markets
Trading Week 19, covering Monday, May 8 through Friday, May 12. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Latest inflation data
CPI +4.9%, core +5.5%
PPI +2.3%, core +3.2%
Alphabet’s new AI products, redesigns Google Search
Disney+ to add in Hulu content, raise prices
PacWest deposits plummet another 10% last week
Peloton recalls almost every bike sold since 2018
Uber UK to sell plane & train tickets in-app
Bittrex files for bankruptcy in the U.S.
Earnings from Airbnb, Palantir, and PayPal — see breakdowns below
US Markets 🇺🇸
Consumer prices rose 0.4% in April and 4.9% during the year, coming in slightly below estimates. Excluding volatile food and energy categories, core CPI rose 0.4% for the month and 5.5% for the year, both in line with expectations.
Wholesale inflation eases to 2.3% in April, the lowest level in two years. The Producer Price Index rose 2.3% (vs 2.7% previous, 2.4% estimate), while core-PPI rose 3.2% (vs 3.4% previous, 3.3% estimate).
Alphabet strikes back at Microsoft and announces major AI updates at their annual developer conference including unveiling its new ‘PaLM 2’ model, their most recent and advanced LLM. GOOG 0.00%↑ shares surged 11% this week.
Hindenburg targets Carl Icahn in latest short report alleging that Icahn Enterprises ($IEP) inflated asset valuations. Federal prosecutors are now seeking more information. IEP 0.00%↑ shares are down 31% this year.
Disney+ to add Hulu content to create a ‘one app experience’ and will also raise the price of its ad-free streaming service later this year. Disney+ lost 4m subs in its most recent quarter, causing DIS 0.00%↑ shares to fall 10% this week.
Peloton recalls 2 million bikes for injury concerns from seat failures. Peloton received 35 reports of unexpected seat breakages between January 2018 and today. PTON 0.00%↑ shares dropped on the news, falling 14% this week.
Elon Musk to leave his role as CEO of Twitter in the coming weeks as NBCUniversal ad chief, Linda Yaccarino, is likely to take his place. Elon would remain Twitter’s executive chairman & CTO.
PacWest loses another 10% of its deposit base just last week, causing PACW 0.00%↑ shares to plummet another 39%. PacWest outlined steps it took to deal with outflows, including taking new liquidity from Fed’s discount window.
Rest of World 🌏
Bank of England hikes rates again, marking the 12th consecutive increase, as inflation remains stubbornly above 10%. Over the next two years, the U.K. is projected to have lower growth and higher inflation relative to its peers.
Title 42 has officially expired which allowed authorities to swiftly turn away migrants, but gave no consequence. Under Title 8, processing times will take longer, but if deported, the individual would be barred from returning for 5 years.
Ryanair placed major order with Boeing for at least 150 of the 737-Max planes. The order is worth more than $20B at list prices, but airlines generally receive discounts for such big sales. BA 0.00%↑ shares are up 58% in the last year.
Uber app to offer plane ticket sales in UK as the next step towards becoming the "Amazon of transportation." It will also come with discounted car trips to the airport, as over 15% of its bookings are to/from the airport.
Crypto ⚡
Bittrex filed for bankruptcy in Delaware, months after announcing it would wind down operations in the country and weeks after being sued by the SEC. The crypto exchange believes it has more than 100,000 creditors.
Bitcoin’s ‘BRC-20’ explosion clogs up network, sending users scrambling for options. The rapid growth of BRC-20 tokens has pushed Bitcoin’s network to its operational limits, causing processing times and transaction fees to surge.
Earnings Reports 💰
See more breakdowns for Disney, TradeDesk, Twilio, Toast, Rivian, & Robinhood on our Twitter page. View our travel industry breakdown here.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - Empire State Manf Index (MAY)🇺🇸
China - Industrial Production (APR)🇨🇳
Earnings Reports: Nu Holdings, Monday💰
Tuesday
US - Retail Sales (APR)🇺🇸
Canada - CPI Inflation (APR)🇨🇦
UK - Jobs Report (APR)🇬🇧
Earnings Reports: Home Depot, Sea, Baidu💰
Wednesday
US - Building Permits (APR)🇺🇸
US - Housing Starts (APR)🇺🇸
Europe - CPI Inflation (APR)🇪🇺
Earnings Reports: Tencent, Cisco, TJX, Target, Take-Two, Wix💰
Thursday
US - Philly Fed Manf Index (MAY)🇺🇸
US - Existing Home Sales (APR)🇺🇸
Earnings Reports: Walmart, Applied Materials, Grab, BJs Wholesale, Manchester United💰
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