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The Weekend Rip: May 28, 2023

It was a turbulent week in markets as the debt ceiling deadline loomed, but U.S. tech stocks and foreign markets helped keep the major indices inching higher. πŸ‘€

Let’s recap and prep you for the four-day week ahead. πŸ“

What Happened?

πŸ“ˆ Technology stocks helped push the market to new heights, driven by artificial intelligence (AI) hype. Nvidia’s earnings outlook propelled the stock and its peers to new heights, with it nearing a $1 trillion market cap.Β 

🀩 This week’s Stocktwits Top 25 report showed outperformance relative to the indexes.

🌍 Foreign stocks continued to show strength, with Greece’s stock market breaking out. Speaking of Greece, global shipping companies signaled a continued slowdown in demand and pricing amid economic uncertainty.

🏘️ The median price of new homes sold in the U.S. declined YoY for the first time since April 2020. Constrained existing home inventories and low affordability continued to weigh on housing demand.

πŸ›οΈ Retailers across the spectrum continue to paint a cautious picture of U.S. consumers, though many expect a rebound in the year’s second half. We recapped Dollar Tree, Best Buy, Big Lots’, Gap, several mall retailers, and many others.

πŸ€– Many tech stocks reported earnings this week, including Snowflake and Intuit. Chinese tech giants showed mixed results.

🀝 It was a big Monday of mergers and acquisition news, which we recapped early in the week. 

πŸ”₯ Several names were on the Stocktwits trending tab for most of the week, including $HEPA, $OMH, $TRKA, $MULN, $IEP, $SPCE, and $PLTR.

Here are the closing prices:Β 

S&P 500 4,205 +0.32%
Nasdaq 12,976 +2.51%
Russell 2000 1,773 -0.04%
Dow Jones 33,093 -1.00%


Bullets From The Weekend

🚫 Meta’s making changes to avoid more U.K. antitrust troubles. Facebook’s parent company is giving assurances to the country’s regulators that it will allow advertisers to opt out of their advertising data being used to develop Facebook Marketplace. The change will come through new technical systems. Still, the company will also train staff to ensure that they don’t use advertiser data when developing new products for use in the U.K. market that may be in direct competition with advertisers. TechCrunch has more.

🏘️ Realtor numbers pull back amid market slump. Thousands of real estate agents are giving up on the profession, with over 60,000 exiting over the last six months. The number of U.S. realtors peaked at 1.6 million in October and began to trend lower after nearly a year of a significant slowdown in the housing market, where sales of existing single-family homes fell 43% from their 2021 peak. Additionally, average annualized realtor commissions fell from a peak of $84,355 in January 2021 to $56,632 in April 2023. More from Axios.

🀝 U.S. debt ceiling debate reaches “an agreement in principle.” U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative deal to suspend the federal government’s $31.4 trillion debt ceiling after a months-long debate. The deal would include suspending the debt limit through January 2025, capping spending in the 2024 and 2025 budgets, clawing back unused COVID funds, speeding up energy project permitting, and expanding work requirements for food aid programs. The compromises give the deal a slight majority in the Republic House and Democratic Senate, though we’ll have to wait and see if it’s finalized successfully before the June 5th deadline. Reuters has more.

The Brief

Need a concise summary of what’s going on this week? Look no further.Β Here’s an overview of important earnings and economic data for the trading week ahead.

Economic Calendar

It’s a short but busy week on the economic data front. Investors and the Fed will be watching U.S. employment data later in the week. In addition to the above, check out this week’s complete list of economic releases.

Earnings This Week

Earnings season is nearing its last legs, with 86 companies reporting. Some tickers you may recognize are $CRM, $AI, $AVGO, $CHPT, $EH, $TIGR, $LULU, $M, $DG, $JWN, $CHWY, and more.

Above is a quick summary. Check out the full Stocktwits earnings calendar for the other names reporting this week.