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Relief Rally Continues Into Weekend

It was a green-filled Friday โ€” here’s what you missed. ๐Ÿ’š

Stocks gapped up, paused, and charged higher to close at this week’s highs. ๐Ÿ“ˆ

To recap the week, we outline some market moves below that may have flown under your radar.

Here’s today’s heat map.

11/11 sectors closed green, with materials (+3.97%), discretionary (+3.84%), and communications (+3.79%) leading. ๐Ÿ’ช

In top news, the Supreme Court overturned Roe v. Wade, ending 50 years of federal abortion rights in a 5-4 landmark ruling. โš–๏ธ

Gunmaker $SWBI shares rose an additional 14.48% today following yesterday’s Supreme Court ruling on guns and its upbeat earnings report.ย 

It was a light earnings day, but two names stood out.

Carmax beat on the top and bottom lines, with EPS of $1.56 vs. $1.53 expected and revenues of $9.312 billion vs. $9.124 billion expected. $KMX shares rallied 6.09%. ๐Ÿ“ˆ

Carnival Cruise Lines missed on the top and bottom lines but showed that cash from operations turned positive in the quarter. $CCL shares cruised 12.59% higher. ๐Ÿšข

In airline news, United Airlines’ union agreed to a two-year pay deal that will hike pilot pay by 14%. Meanwhile, Ryanair cabin staff continue to strike as European labor unrest continues. โœˆ๏ธ

In macro news, new home sales rebounded 10.7% in May, with the median home price jumping 15% YoY to $449,000. Meanwhile, the Michigan consumer sentiment reading hit a fresh record low, with inflation expectations falling marginally. ๐Ÿ‘Ž

In crypto news, FTX is in talks to acquire a stake in BlockFi, right after extending the company a $250 million credit line this week. Additionally, hackers stole $100 million in crypto from Horizon, a blockchain bridge developed by crypto start-up Harmony. โ‚ฟ

Other symbols active on the streams included: $RDBX (-1.32%), $REV (+8.89%), $RCL (+15.83%), $PLTR (+7.72%), and $MULN (-0.34%). ๐Ÿ”ฅ

Here are the closing prices:ย 

S&P 500 3,912 +3.06%
Nasdaq 11,607 +3.34%
Russell 2000 1,763 +3.01%
Dow Jones 31,501 +2.68%

Commodities

Under The Radar Moves

Under The Radar Moves Featured Image

As we wrap up and head off to enjoy our weekend, it seems appropriate to highlight some big movers from the week that you may have missed.

The equally-weighted biotech ETF $XBI was up a cool 13.98% this week, buoyed by some M&A activity.ย 

Technical analysts are pointing to the ETF rebounding at the same level it has back to mid 2017. Meanwhile, fundamental analysts are pointing to measures that suggest the sector has gotten cheap overall given many companies’ major cash piles.

Additionally, while everyone in the commodity market is focused on oil and energy-related futures, there are some big moves happening elsewhere.

Copper was down 6.96%, its third week in a row of losses, and settled at 16-month lows.

Meanwhile, agricultural commodities like Wheat, Soybeans, Corn, and others are quietly coming off their highs.

Cotton had its second major down week, falling nearly 30% since the start of June.

The move lower in commodities may be coming as the market reassesses demand amid rising recession fears. As they like to say in the commodities markets, “the cure for higher prices is often higher prices.


Bullets

Bullets From The Day:

๐Ÿ’ฐ Zendesk is going private. In a $10.2 billion deal led by Hellman & Friedman and Permira, Zendesk will be taken private. Shareholders will receive $77.50 per share in cash, roughly a 34% premium to yesterday’s closing price but a significant discount from a prior offer that valued the firm at $16 billion in February. Read more from Reuters.

๐Ÿ  Barclays buys mortgage lender Kensington. Barclays is expanding its presence in Britain’s housing market by buying specialist lender Kensington Mortgage Company in a deal worth $2.8 billion. Private equity owners Blackstone and Sixth Street are the sellers, and the deal should close later this year or early next. Reuters has more.

โšก BMW’s new $2.2 billion EV plant in China. BMW’s new Shenyang, China, factory is officially opening as the carmaker looks to catch up with Tesla and other competitors. Jochen Gollder, president and CEO of BMW Group In China, said, “The expansion of our production footprint in China shows we are preparing for further growth in the world’s largest electric car market and are confident in China’s long-term perspectives.” More from CNBC.

โš’๏ธ Carmaker Stellantis takes stake in lithium supplier Vulcan. As the competition for metals heats up, Stellantis is buying an 8% stake in miner Vulcan Energy Resources and extending a 10-year supply agreement for lithium. The move will help support the carmaker’s vision of battery electric vehicles making up 100% of its European passenger car sales by 2030. Reuters has more.

๐Ÿฅก Zomato acquires Blinkit. Zomato continues its push into instant-grocery delivery with a $568.1 million all-stock acquisition of the 10-minute grocery delivery startup, Blinkit. More via TechCrunch.