What Moved The Markets This Week 📈
Supreme Court Strikes Down Affirmative Action & Student Loan Relief, Lordstown Motor Files For Bankruptcy, New Home Sales Surge, Aston Martin Partners With Lucid, and NKE + PAYX Earnings
Sunday Morning Markets
Trading Week 26, covering Monday, June 26 through Friday, June 30. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
Core PCE inflation cools to 4.6%, from 4.7%
Supreme Court rejects affirmative action and student loan relief
US first quarter GDP growth gets revised up to +2%
Aspartame sweetener to be labeled as a carcinogen
Lordstown Motors files for bankruptcy
Core inflation in the Eurozone rose to 5.4%, from 5.3%
Aston Martin partners with Lucid for EV technology
Fidelity joins a slew of institutions to file for spot Bitcoin ETF
Earnings from Nike, Paychex — see breakdowns below
US Markets 🇺🇸
Fed’s key inflation gauge rose 0.3% in May and 4.6% for the year, marking only a slight deceleration for the Core PCE Index (4.7% in April). Spending rose just 0.1% for the month (0.6% in April).
Supreme Court strikes down affirmative action at colleges and says considering race during the admission process is unconstitutional. The majority said that the policy violated the Equal Protection Clause of the 14th Amendment.
Supreme Court rejects Biden’s student loan forgiveness plan. The court said the president didn’t have the authority to cancel such a large amount of consumer debt without authorization from Congress.
Biden announces $42B high-speed internet initiative as part of a plan to give every American household access to high-speed internet by 2030. Each state will receive a minimum of $107M, with 19 states receiving over $1B.
The US economy grew much faster than expected in the first quarter, as GDP increased 2% on an annualized rate, up from the 1.3% previously reported. The revision alleviates some concerns that the US is soon to enter a recession.
New home sales surge 12% in May to an annualized pace of 763K units, the highest level in over a year. The figure marked the third-straight monthly advance and beat all but one estimate in a Bloomberg survey of economists.
Aspartame sweetener to be labeled as a carcinogen next month by the International Agency for Research on Cancer (IARC). It is one of the most common artificial sweeteners and is heavily used in Coca-Cola’s diet sodas.
IBM to acquire software company Apptio for $4.6B from Vista Equity Partners. Apptio offers financial and operational IT management and serves more than 1,500 clients. The deal is expected to close in the latter half of this year.
Lordstown Motors files for bankruptcy and sues Taiwanese contract manufacturing giant, Foxconn, alleging that it breached a deal to provide the EV startup with additional funding. RIDE 0.00%↑ shares are down 87% YTD.
Rest of World 🌏
Eurozone inflation slows to 5.5% in June, coming in lower than analyst expectations. Core inflation, which excludes energy and food, remains stubbornly high and even rose to 5.4% (5.3% in May).
Aston Martin partners with Lucid to gain access to its EV technology. In the deal, Lucid acquires 3.7% of Aston Martin in return for access to its “high performance” technology. LCID 0.00%↑ shares rallied 15% this week.
Novo Nordisk says its obesity pill leads to 15% weight loss according to late-stage clinical trial results. The pill is an oral version of semaglutide, the ingredient in the company’s blockbuster weight loss injections Ozempic and Wegovy.
Crypto ⚡
FTX users have until September to submit a claim from the bankruptcy court. Every former customer will receive an email containing a link to the Customer Claims Portal and will have until September 29th to file.
Fidelity joins rush to file for a spot bitcoin ETF following the likes of BlackRock, WisdomTree, VanEck, Invesco, and Ark Invest. The SEC has so far rejected every spot bitcoin fund application on which it has made a decision.
Earnings Reports 💰
See more breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
Holiday - Independence Day (Early Close)🇺🇸
US - ISM Manufacturing PMI (JUN)🇺🇸
UK - Manufacturing PMI (JUN)🇬🇧
Germany - Manufacturing PMI (JUN)🇩🇪
Tuesday
Holiday - Independence Day (Early Close)🇺🇸
Australia - RBA Interest Rate Decision 🇦🇺
Wednesday
Europe - S&P Composite PMI (JUN)🇪🇺
Earnings Reports: Aeon💰
Thursday
US - Jobless Claims 🇺🇸
US - ISM Non-Manufacturing PMI (JUN)🇺🇸
US - ADP Employment Change (JUN)🇺🇸
US - JOLTS Job Openings (JUN)🇺🇸
Canada - Ivey PMI (JUN)🇨🇦
Earnings Reports: Levi Strauss, Tilray💰
Friday
US - Nonfarm Payrolls (JUN)🇺🇸
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