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Market Moves Yesterday

S&P 500 @ 5,267.84 ( ⬇️ 0.27%)

Nasdaq Composite @ 16,736.03 ( ⬇️ 0.39%)

Bitcoin @ $67,146.90 ( ⬇️ 3.18%)

Hey Scoopers,

Happy Friday! The long weekend is here.

👉 Boeing slumps further

👉 Home sales decline

👉 SEC approves Ethereum ETFs

So, let’s go 🚀

Market Wrap 📉

Equities pulled back on Thursday, with the Dow Jones Industrial Average registering its worst day of 2024, while 80% of the stocks part of the S&P 500 index were in the red.

Alternatively, Nvidia was among the few bright spots, as the chip stock gained 9.3% to end trading over $1,000. Nvidia crushed Wall Street estimates in Q1, announced a 10-for-1 stock split, and raised dividends by 150%.

Stronger-than-expected economic data evaporated the rally yesterday as investors expect interest rate cuts to be delayed further. Services and manufacturing gauges for May were higher than expected and showed expansion in both sectors.

Now, traders are pricing a 51% chance the Fed will cut rates in September, down from 68% last week.

Trending Stocks 🔥

Ross Stores - Shares of the discount clothing store are up 8% in pre-market after it reported revenue of $4.86 billion and earnings per share of $1.46, above estimates of $4.83 billion and $1.35, respectively.

Workday- The entertainment management company slumped 12% after its fiscal Q2 subscription revenue guidance of $1.895 billion missed estimates of $1.9 billion.

Intuit - The owner of TurboTax fell 6.5% on soft fiscal Q4 guidance as it forecast earnings between $1.80 and $1.85 per share, below estimates of $1.92 per share.

Boeing Stock Is Under the Pump

Boeing shares fell 7.5% yesterday after the company confirmed it will burn through cash in 2024. The airplane manufacturer also stated that new plane deliveries won’t improve in Q2 compared to Q1 as it deals with a host of production challenges.

Last month, Boeing emphasized it would generate free cash flow “in the low single-digit billions.” The new forecast clearly indicates the mounting costs of Boeing’s latest crises.

Boeing’s cash burn was close to $4 billion in Q1, and the figure could be similar in Q2 or even worse, according to CFO Brian West. However, West expects the company to return to positive cash flows in the last two quarters of 2024.

Boeing’s aircraft deliveries in Q1 fell to the lowest level since COVID-19, driving shares lower by 31.6% in 2024. Investors should note that Boeing derives the majority of its revenue once the plane is handed over to a customer.

Boeing’s production issues surfaced after a door plug blew out midair from a new 737 Max 9 at the start of this year, even as the company was trying to repair years of reputational damage from two fatal Max crashes in 2018 and 2019.

The accident increased regulatory scrutiny on Boeing, whose executives have vowed to stamp out production flaws and regain the trust of stakeholders.

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Home Sales and Jobless Claims

A report from the Commerce Department showed sales of new single-family homes totaled 634,000 for April, a 4.7% drop from March and lower than estimates of 677,000.

The median sales price was $433,500, down $6,000 from March but 4% higher year over year. The average sales price was also higher at $505,700.

After a brief scare that layoffs could be on the rise, unemployment claims from the past week indicated that the labor market is still strong.

First-time claims for jobless benefits totaled 215,000 for the week ended on May 18, lower than estimates of 220,000.

SEC Approves Spot ETH ETFs

The U.S. Securities and Exchange Commission approved eight spot Ethereum ETFs (exchange-traded funds) from BlackRock, Fidelity, Bitwise, VanEck, Ark, Invesco Galaxy, Grayscale, and Franklin Templeton.

Since Bitcoin ETFs were approved in January, they have attracted over $50 billion in investments.

However, Ethereum ETFs are unlikely to attract a similar amount. In fact, analysts expect Ethereum ETFs to get between 10% and 15% of the assets their BTC counterparts received.

Coinbase is positioned to benefit from this development. The exchange offers a wide range of crypto services, such as custody and staking. It also operates a blockchain network called Base, which is built on Ethereum.

ETH prices have surged 17% in the last month and 103% in the past year.

Headlines You Can't Miss!

British retail sales fall 2.3% in April

Chinese EV makers eye European markets amid tariff threat

Alibaba bets on AI to fuel cloud growth

JPMorgan is positive about China stocks

DOGE meme coin Kabosu passes away

Chart of The Day

Nvidia’s monstrous gains since the start of 2023 have meant it currently has a market cap of $2.3 trillion.

Investors might think the chip giant is insanely overvalued at current prices. However, Nvidia’s growth story is far from over.

Analysts expect Nvidia’s earnings to more than double to $25.2 per share while sales are on track to grow 85.3% to $113 billion in fiscal 2025.

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.