What Moved The Markets This Week 📈
Senate Repeals Student Loan Forgiveness, Biden Signs Debt Ceiling Bill, Meta's New Virtual Reality Headset, Binance Cuts 20% Of Staff, US Economy Adds 339K Jobs, and LULU + CRM + CRWD Earnings
Sunday Morning Markets
Trading Week 22, covering Monday, May 29 through Friday, June 2. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
The labor market remains red hot.
Nonfarm payrolls +339K (exp +190K)
Job openings 10.1M (exp 9.5M)
Senate repeals Biden’s student debt forgiveness
Amazon sued by FTC over privacy violations
Meta unveils their new Quest 3 VR headset
Microsoft inks billion-dollar deal with CoreWeave
Lucid to raise $3B from Saudi fund and stock offering
Binance cuts 20% of its workforce
Earnings from Salesforce, Crowdstrike, Lululemon — see breakdowns below
US Markets 🇺🇸
The U.S. economy adds 339,000 jobs in May, nearly double what was expected as the labor market remains hot. Average hourly earnings, a key inflation indicator, rose 0.3% for the month, in line with expectations.
The number of job openings surged in April according to JOLTs. The report showed openings increased 358K during the month to 10.1 million, as the labor market remains tight. There were 1.8 job openings for every unemployed person.
U.S. manufacturing slumps further in May as the closely followed ISM PMI fell to 46.9 (prev. 47.1). It was the seventh straight month that the PMI stayed below the 50 threshold, the longest such stretch since the Great Recession.
Congress agrees to raise the debt ceiling with the passing of the Fiscal Responsibility Act in both the House & Senate. Biden then signed the bill into law yesterday, averting a catastrophic default.
Senate votes to repeal Biden’s student loan forgiveness after the bill passed by a 52-46 vote, with two Democrats and one independent senator voting with Republicans. Biden warns he will veto the measure.
Amazon to pay over $30 million in FTC settlements related to privacy violations from the Ring and Alexa divisions. Ring will be required to delete any data collected from users’ faces before 2018 and any derivative work.
Meta unveils the new Quest 3 VR headset just days before Apple plans to release their own. The Quest 3 will ship with a next-generation Qualcomm chipset, and be priced at $499, as the Quest 2 drops to a starting price of $299.
Microsoft signs deal for A.I. computing power with CoreWeave, a Nvidia-backed startup that offers GPUs for companies to rent out. The deal aims to ensure that OpenAI will have adequate computing power going forward.
Rest of World 🌏
Eurozone inflation falls more than expected to 6.1% in May (prev 7.0%), below estimates of 6.3%. Core inflation eased to 5.3% from 5.6%. Markets are pricing two more rate hikes from the ECB at their upcoming meetings.
Elon Musk meets with China’s foreign minister as the Tesla CEO reportedly signaled further expansion in China. The meeting comes at a time of continued tensions between the U.S. and China over technology.
Lucid raises $3B from Saudi Public Wealth Fund and a new stock offering. Approximately $1.8B of the raise will come from the Saudi fund, which owns ~60% of the automaker. LCID 0.00%↑ shares are down 65% in the last year.
Crypto ⚡
USDC issuer Circle has ditched all U.S. treasuries from its $24B reserve fund amid the debt ceiling debacle. They now only hold cash and overnight repurchase (repo) agreements to back its USDC stablecoin’s value.
Binance plans to cut 20% of its workforce in a new round of layoffs amid regulator pressures and lower trading volumes. During the latest bull market, Binance's headcount grew from approximately 3,000 to nearly 8,000.
Earnings Reports 💰
See more breakdowns for MongoDB, Okta, Zscaler, NetApp, Box, SentinelOne on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - ISM Non-Manufacturing PMI (MAY)🇺🇸
UK - S&P Composite PMI (MAY)🇬🇧
Europe - S&P Composite PMI (MAY)🇪🇺
Tuesday
Canada - Ivey PMI (MAY)🇨🇦
Australia - RBA Interest Rate Decision🇦🇺
Earnings Reports: GitLab, Couchbase, Yext💰
Wednesday
US - Balance of Trade (APR)🇺🇸
Canada - BoC Interest Rate Decision🇨🇦
Earnings Reports: Trip.com, Smartsheet, Hashicorp💰
Thursday
China - CPI Inflation (MAY)🇨🇳
Earnings Reports: Docusign💰
Friday
Canada - Employment Report (MAY)🇨🇦
Earnings Reports: Nio, Docusign💰
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