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A Short End To A Long Week

It’s the Friday before a three-day weekend  — here’s what you missed. 📰

U.S. stock and bond markets will be closed Monday for Independence Day, as Americans celebrate their freedoms. 🥳

I personally will be celebrating freedom from looking at my portfolio losses for a few days…but let’s not get into that. 😆

Stocks started the quarter on a green note but still ended the week well in the red. 🔻

Here’s today’s heat map.

Every sector was green today. Utilities (+2.09%) were the top gainer, while tech (+0.23%) lagged.

Our main article below recaps some economic updates from around the globe and poses an interesting question about our behavior as economic participants. 👇

There were no earnings today, but $GM did warn that supply chain issues would materially impact its second-quarter earnings. Despite the disruptions overseas, the company is maintaining its 2022 full-year guidance. 🚗

Semiconductor stocks traded lower today, $SOXX (-3.54%) as investors try to decide what Micron’s weak outlook means for the industry. 🤔

$KSS shares plummeted 20% after the company said it was shelving its sale after months of negotiations. 📉

And in lol news of the day, Apple’s former securities lawyer pled guilty to insider trading. Come on, guy, you had one job…literally. 🤦‍♂️

June was Bitcoin’s worst month in 11 years, and the wreckage continues across the entire crypto space. Today’s edition of the Litepaper is a beefy one and will get you up to speed on all of the latest crypto happenings. ₿

Other symbols active on the streams included: $RDBX (-17.43%), $BBIG (-7.97%), $ENDP (+22.42%), $CPNG (+17.96%), $LYT (+23.08%), $AUPH (+13.33%), and $MULN (+5.88%). 🔥

Here are the closing prices: 

S&P 500 3,825 +1.06%
Nasdaq 11,128 +0.90%
Russell 2000 1,728 +1.16%
Dow Jones 31,097 +1.05%

Manufacturing A Slowdown Featured Image

It’s a holiday weekend, so we’ll keep this glum economic update short. 🩳

Essentially, it boils down to what we’ve been talking about in the Rip for a long time. 

Inflation remains too high around the globe, with the Eurozone reporting a new record high of 8.6% today. 🔥

As a result, most central banks are raising rates and taking other aggressive measures to combat inflation. Norway and Sweden joined the party this week. ⬆️

Meanwhile, record-high prices and rising interest rates are causing consumer and business sentiment to push multi-year lows (or, by some measures, record lows). 👎

And manufacturing activity is softening as more and more businesses act defensively to prepare for a potential recession. 🏭

So, the question is, is it possible that we all are “manufacturing” a recession by changing our behavior in anticipation of a recession? 🤔

That seems to be a theory many people are throwing around these days.

We’ll have to wait and see, but the Atlanta Fed’s GDPNow gauge is now forecasting Q2 GDP at -2.10%. If it does come in anywhere near that forecast, then we’ll have a real recession on our hands (2 consecutive quarters of negative GDP growth). 🔻

For now, though, let’s all forget the bad vibes and enjoy our three-day weekend with too much food/drink, fireworks, and whatever else we enjoy on our days off. 🏖️

The existential crisis about the economy (and the rest of the work we skipped this week) will be waiting for us on Tuesday when we return… 📅


Bullets

Bullets From The Day:

Amazon lands U.K Champions League soccer rights. In a groundbreaking development, Amazon will begin showing European Champions League soccer in Britain in 2024, joining current rights holder BT, which landed a lower-priced deal to show most matches. The deal is one of many high-profile media buys Amazon has been part of as the streaming/content wars rage on. Read more from Reuters.

CFTC Cites $1.7 billion MLM in the most prominent bitcoin fraud scheme. The Commodity Futures Trading Commission is accusing a firm of engaging in an international fraudulent multilevel marketing (MLM) scheme that brought in over $1.7 billion worth of Bitcoin. The lawsuit comes as the CFTF and other regulators step up their monitoring and enforcement in the crypto space. Decrypt has more.

🤝 Atlantic City casinos strike a deal with workers. As striking continues across industries and countries, Atlantic City casino workers have agreed to a new contract with four casinos ahead of the busy July 4th holiday weekend. The union president called the result “the best contract we’ve ever had.” Unions in many service-based industries are using the tight labor market and high demand to leverage better contracts for their workers, and that strategy appears to be working. More from ABC News.

Panera Bread terminates its SPAC deal. Market conditions have taken a bite out of yet another deal, this time as Danny Meyer’s SPAC and Panera Bread call off their investment deal. The parties had until Thursday to complete the merger; otherwise, either party could walk away, which Panera promptly did on Friday. CNBC has more.

👎 Fintech Klarna is eyeing a massive down round. The Swedish buy now, pay later company is reportedly close to closing a new funding round of roughly $650 million that values the company at $6.5 billion. The deal would be a massive ‘down round’ for the company, which was most recently valued at $45.6 billion in June 2021 when it raised $639 million in a round led by SoftBank’s Vision Fund. Too bad the company can’t buy what it needs now and pay later when market conditions are better… More from Tech Crunch.