What Moved The Markets This Week 📈
Apple Partners With OpenAI, Fed Sees Just One Rate Cut In 2024, Tesla Shareholders Approve Musk's $56B Pay Package, BOJ To Cut Bond Purchases, and ADBE + ORCL + AVGO Earnings
Sunday Morning Markets
Trading Week 24, covering Monday, Jun 10 through Friday, Jun 14. Your weekly financial markets update, in less than 5 minutes.
The Week In Review ⏪
US Markets 🇺🇸
Fed holds rates, sees just one rate cut in 2024
Inflation cools off, soft CPI & PPI reports
Earnings from Adobe, Broadcom, Oracle
Global Markets 🌏
Bank of Japan to reduce bond purchases
EU hikes tariffs on EVs as high as 38%
Macron dissolves France’s National Assembly
Tech ⚡
Apple unveils ‘Apple Intelligence’
OpenAI’s ARR doubles to $3.4 billion
Mistral AI raises $640 million in latest round
US Markets 🇺🇸
Fed projects just one interest rate cut this year, indicating they are in no hurry even after the soft inflation data this week. According to CME’s FedWatch tool, the market is pricing in two rate cuts by the end of the year.
Inflation cools off for the second straight month as energy prices dropped 2% in May. Headline CPI rose 3.3% on the year while Core CPI was up 3.4%, both coming in under expectations.
Wholesale prices unexpectedly dropped 0.2% in May, reversing April’s large 0.5% jump and well below consensus estimates of a 0.1% increase. On an annual basis, the PPI rose 2.2%.
GM’s board approves new $6 billion share buyback as the company’s existing $10 billion program is expected to be completed by the end of this month. Shares of GM are up 30% this year.
FDA panel votes in favor of Eli Lilly's Alzheimer's drug called Donanemab, noting that the trial data showed it was effective in early-stage patients. The FDA is not obligated to follow the panel’s vote but typically does.
Oracle shares jump on new cloud deals with OpenAI and Google to train AI models. The company reported $98 billion of RPO, the revenue it expects to earn over future quarters, up 44% versus last year.
Tesla shareholders approve Musk’s $56 billion pay package five months after a Delaware judge ordered the company to rescind it. Tesla noted that 77% of voters were in favor of the compensation package.
Global Markets 🌏
Bank of Japan to reduce its bond purchases in a signal of monetary tightening, while leaving its policy rate unchanged. The Japanese Yen has depreciated significantly since COVID started, falling 44% against the USD.
EU hikes tariffs as high as 38% on Chinese EVs claiming they pose a “threat of economic injury” to EV producers in Europe. Shares of Chinese EV producers surged following the news as many called the tariffs “benign.”
Economic growth in the UK flatlines in April with many blaming heavy rainfall during the month hurting construction output. In contrast, the service sector grew slightly during the month.
France's Macron dissolves the National Assembly after Marine Le Pen's far-right party decisively outperformed his in the European Parliament elections. This shocking move will upend the nation's political sphere.
Consumer inflation in China remains low while factory-gate prices continue to fall, suggesting that underlying purchasing demand remains weak. Beijing continues to face pressure for more stimulus to spark the economy.
The average rent in Canada rose to $2,202 in May, up 9.3% compared to a year ago. The percentage of renters vs homeowners in Canada has climbed to 33%, the highest level on record.
Tech ⚡
Apple introduces ‘Apple Intelligence’ in its first major step towards bringing personalized AI to its 2.2 billion device users. For complex queries, Apple has partnered with OpenAI. Review some of the latest updates here.
Tempus AI goes public under the ticker “TEM” and rises 9% on its first trading day. The healthcare diagnostics company uses AI to interpret medical tests to help physicians provide more accurate treatments.
OpenAI doubles its annualized revenue to $3.4 billion following the release of its latest AI model, GPT 4o. CEO Sam Altman disclosed the figure during an all-hands meeting.
Mistral AI raises $640 million in a new fundraising round, bringing the startup's valuation to $6 billion. This round was led by General Catalyst and includes $500 million in equity and $140 million in debt.
Onsemi plans to slash 1,000 jobs as it looks to reduce costs and streamline operations. The decision comes in response to weak demand in the EV market and excess inventory.
Ethereum ETFs to be approved this summer, said SEC Chair Gary Gensler in his testimony at a Senate hearing. The news did little to move the crypto market, with the price of ETH falling 4% this week.
Musk drops suit against OpenAI and Sam Altman just one day after publicly criticizing their new partnership with Apple. The case’s legal foundation was questionable, with no signed formal written agreement.
Earnings Reports 💰
See other breakdowns on our Twitter page.
Weekly Poll 🗳️
Week Ahead 📅
Monday
US - NY Empire State 🇺🇸
CA - Housing Starts 🇨🇦
Earnings: Lennar 💰
Tuesday
US - Retail Sales 🇺🇸
US - Industrial Production 🇺🇸
EU - CPI Inflation 🇪🇺
AU - RBA Interest Rate 🇦🇺
Wednesday
US - Markets Closed (Juneteenth) 🇺🇸
UK - CPI Inflation 🇬🇧
CN - PBOC Prime Rate Decision 🇨🇳
Thursday
US - Housing Starts 🇺🇸
US - Building Permits 🇺🇸
US - Philly Fed Manufacturing PMI 🇺🇸
UK - BOE Interest Rate Decision 🇬🇧
CF - SNB Interest Rate Decision 🇨🇭
Earnings: Accenture, Kroger, Carnival💰
Friday
US - Existing Home Sales 🇺🇸
US - CB Leading Economic Index 🇺🇸
US - S&P Composite PMI 🇺🇸
CA - Retail Sales 🇨🇦
UK - Retail Sales 🇬🇧
EU - HCOB Composite PMI 🇪🇺
Earnings: FactSet, CarMax💰
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