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Market Moves Yesterday
S&P 500 @ 5,473.17 ( ⬇️ 0.17%)
Nasdaq Composite @ 17,721.59 ( ⬇️ 0.79%)
Bitcoin @ $64,555.27 ( ⬇️ 0.23%)
Hey Scoopers,
Happy Friday! We have an exciting newsletter for you today:
👉 Dell and Super Micro partner with Elon Musk
👉 Gilead’s HIV breakthrough
👉 Housing starts fall below estimates
So, let’s go 🚀
Market Wrap 📉
The S&P 500 index pulled back on Thursday after briefly surpassing the 5,500 level for the first time ever as market bellwether Nvidia reversed early gains to end the day over 3% lower.
Despite the pullback, stocks are headed for a winning week, with the S&P 500 and Nasdaq notching new records.
The excitement surrounding AI is driving the markets even as analysts are concerned over a lack of market breadth outside Big Tech.
The 10-year Treasury Yield rose while oil prices traded above $82 a barrel and are on track for their second consecutive week of gains.
Today, investors will closely watch the manufacturing and services purchasing manager index reading for June. Existing home sales data for May is also due to be released today.
Trending Stocks 🔥
Accenture- The consulting company surged 7% after reporting over $900 million in generative AI bookings for Q3.
Asana - Shares are trading 4% higher in pre-market after it announced a $150 million stock buyback program.
Darden - The restaurant stock gained 1.5% after it reported revenue of $2.96 billion and earnings of $2.65 per share, compared to estimates of $2.97 billion and $2.61 per share in its last quarter.
Dell and Super Micro Are Suppliers to xAI
Source: CNBC
Yesterday, Elon Musk revealed that Dell Technologies and Super Micro Computer will provide servers to help his AI startup, xAI, develop a supercomputer.
In an X post, Musk said, “Dell is assembling half of the racks that are going into the supercomputer that xAI is building,” adding that Super Micro will also be involved.
Musk disclosed plans to build a $500 million “Dojo” supercomputer in New York and a “super dense, water-cooled supercomputer cluster” at the Tesla factory in Texas.
The technology would help Tesla develop the computer vision and large language models required to power robots and autonomous vehicles.
Mush founded xAI in 2023 as a challenger to Microsoft’s OpenAI and Google’s Gemini. Meanwhile, Michael Dell, the CEO of Dell, stated his firm is building a “Dell AI factory” with Nvidia to power Musk’s AI bot Grok.
Gilead’s HIV Trial
Source: CNBC
Gilead’s experimental bi-annual medicine to prevent HIV was 100% effective in a late-stage trial, the company said yesterday. The results drove Gilead shares higher by 8.5%.
Gilead is now one step closer to introducing a new form of pre-exposure prophylaxis, or PrEP, which should broaden its HIV business. Apparently, PrEP slashes the risk of getting HIV from sex by 99% and from injected drug use by 74% when taken correctly.
The company expects to share data from a Phase 3 study later this year. If the results are positive, Gilead could introduce lenacapavir for PrEP to the market by the end of 2025.
RBC Capital Markets analyst Brian Abrahams expects Gilead’s HIV shot will significantly increase the number of people interested in preventive HIV medicine and estimates peak sales of $2 billion.
Unemployment Claims Tick Higher
Initial unemployment claims were higher than expected, while housing and manufacturing data pointed to a slowdown, according to multiple economic reports.
First-time filings for jobless benefits totaled 238,000 for the week ended June 15, down from 5,000 from the previous week but above estimates of 235,000. Continuing claims rose 15,000 to 1.828 million.
Housing starts in May totaled 1.277 million, a 5.5% decrease and lower than estimates of 1.38 million. Building permits in the U.S. totaled 1.386 million, down 3.8% from last month and below estimates of 1.45 million.
The manufacturing index for June stood at 1.3, down from 4.5 in May and below the 5.0 estimate.
A slowdown in economic activity should lead to lower inflation and result in interest rate cuts in the second half of 2024.
Headlines You Can't Miss!
China’s 618 e-commerce sales fall for the first time in 8 years
Nvidia tops individual stock market values of Germany, France, and UK
Trump Media slumps 15% as sell-off deepens
Anthropic announces its most powerful AI yet
The SEC closes investigation into Ethereum
Chart of The Day
A Visual Capitalist report states that individuals in the top 11 most expensive U.S. states need to earn over $100,000 annually to live comfortably.
Here, “comfortable” is defined as the annual income required to cover a 50/30/20 budget, in which 50% of earnings are allocated to necessities such as housing and utilities, 30% to discretionary spending, and 20% to savings or investments.
Massachusetts is the most expensive state, where a single adult needs to make $116,002 a year or $55.78 per hour.
Alternatively, West Virginia is the least expensive state for a single adult, where one needs to make “just” $78,790 annually.
Meme of the Day
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.