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Market Moves Yesterday

S&P 500 @ 5,433.74 ( ⬆️ 0.23%)

Nasdaq Composite @ 17,667.56 ( ⬆️ 0.34%)

Bitcoin @ $66,917.16 ( ⬇️ 0.17%)

Hey Scoopers,

Happy Friday! Here’s what we’re covering today:

👉 Adobe’s blockbuster earnings

👉 Oil prices may fall, warns Citi

👉 Roaring Kitty increases GameStop position

So, let’s go 🚀

Market Wrap 📉

Equity indexes rose higher on Thursday to post a fourth consecutive record close as traders weighed additional data showing inflation pressures may be easing.

Indices like the S&P 500 and Nasdaq hit record levels this week, boosted by fresh data indicating inflation might be cooling off.

May’s producer price index fell 0.2% from April. Economists polled by Dow Jones expected an increase of 0.1%. The PPI report came a day after consumer price index data for May was also below estimates.

These data points eliminate the possibility of an interest rate hike in 2024. However, the Fed is also unlikely to cut rates multiple times in the second half of this year.

Trending Stocks 🔥

Tesla- Shares rose 2.9% after the EV maker’s shareholders approved Elon Musk’s $56 billion pay package.

Signet Jewelers - Shares tumbled close to 15% as investors analyzed the latest earnings report and commentary around softness in consumer spending.

Arista Networks - The stock climbed over 6% after Morgan Stanley raised its price target for the networking giant.

Adobe Crushes Wall Street Estimates

Adobe shares are up more than 15% in pre-market after the design and software maker reported revenue and earnings that topped estimates and lifted full-year guidance.

In fiscal Q2 of 2024 (ended in May), Adobe reported:

👉 Revenue of $5.31 billion vs. estimates of $5.29 billion

👉 Earnings per share of $4.48 vs. estimates of $4.39

Adobe increased sales by 10% in Q3 and forecast revenue between $5.33 billion and $5.38 billion in Q4, with earnings between $4.50 and $4.55 per share. Comparatively, analysts forecast sales at $5.4 billion and earnings at $4.48 per share in the current quarter.

Adobe continues to see Creative Cloud subscribers upgrading their plans to access Firefly capabilities. FireFly users can improve creative workflows using generative AI, allowing Adobe to gain traction in a rapidly expanding market.

Prior to its results, ADBE stock was down 23% year-to-date, compared to the S&P 500 gains of 14%.

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Crude Oil Prices Might Fall, Says Citi

According to Citi, the world could face a major surplus of oil that could push the price of global benchmark Brent down to $60 per barrel.

Citi expects oil supply to outpace demand in the next year as production grows in North America, Brazil, and Guyana while consumption softens due to energy efficiency gains and the adoption of electric vehicles.

Moreover, OPEC+ is planning to start rolling barrels back onto the market, which may drive prices lower.

Citi emphasized brent prices could fall below $50 per barrel by the end of 2025 as per its most bearish scenario.

Game Stop Remains Volatile

Meme stock champion Keith Gill, also known as “Roaring Kitty” on X, posted a new screenshot on a Reddit forum showing that he holds 9 million GameStop shares and more than $6 million in cash.

Gill first posted his position on June 2, in which he held five million shares and 120,000 call options against GameStop. A call option gives the right but not the obligation to buy shares at a specified price by a certain expiration date.

There is a chance that Gill would have liquidated his call options and used the proceeds to buy additional GME shares. He could also have sold some of the options position and exercised the rest early.

As of Thursday evening, Gill’s portfolio, including cash, stood at $268 million, up from $210 million on June 2.

The shares of the gaming retailer rose 14% yesterday and have almost tripled in the last two months.

Headlines You Can't Miss!

China’s automakers surpass the U.S. peers in sales for the first time

How to invest in India, the world’s fastest-growing major economy

China requires bond market reforms to rein in the debt crisis

India’s IPO boom looks to break new records

Long-term hodlers are buying Ethereum

Chart of The Day

Air passenger traffic is forecast to touch record highs in 2024. However, several airline stocks are trading significantly below all-time highs.

Airline companies were forced to take on massive debt amid the COVID-19 pandemic. Today, elevated interest rates and higher debt payments are eating into the profit margins of the top airline companies.

Moreover, the regulatory issues surrounding Boeing and delays in aircraft deliveries are hampering company expansion plans.

Meme of the Day

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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.