Restocking Season is Coming

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• 💃 Market shimmies sideways!

• 📝 Micron is shrugged off like a weak flu

• 🎙️ The usual bits and pieces about debt ceiling and rates rising 🥱

 🎯 Market levels – The SPX may have been chilling with no change, but its cousin, the equal-weight version, did a little dance and jumped 16bp 🕺. Nasdaq played along, pumping up by 63 points/50bp and the R2K, oh boy, it spiked 122bp 🚀. While Micron's news could've been a party pooper, investors shook it off and instead celebrated potential peace between Washington and Beijing, causing the China HXC Index to jump a whopping 205bp 🎉. Bank stocks showed some stability, making way for Treasuries' sale and yield increases of 4-6bp across the curve. Predictions for the year-end Funds Rate now sit at a hopeful 4.7%, up ~6bp from Friday. The DXY ended in a "meh" state, basically flat, but Brent decided to join the party and rose 50bp. Meanwhile, US natural gas took a deep dive, tumbling 720bp, and gold too dropped 30bp. Bitcoin, like a Zen master, remained unruffled and flat 🧘‍♂️. 📉

🗞️ Monday's Gist – The SPX might've seemed like it was just lounging around on Monday, but under the hood, it was like a lively house party 🎈. Bank and small-cap stocks were jamming to their own tunes, rallying up, and the equal-weight version of the index was on the dance floor with healthy outperformance vibes 💃.

🎲 Stonks – Monday's news gave us hope that the "debt ceiling" drama could be resolved before its "X-date" deadline 🕑. But let's be real, it might not be the big party popper for the market. The Micron situation did signal some decoupling, but it's like a speed bump, not a roadblock. As the regional bank situation stabilizes, it might give the Fed some hawkish vibes 🦅. The valuation game might be making us think twice, but it's not a deal-breaker, especially as we look to the promising 2024 forecasts 📅. Chats with the management teams on Monday suggest that the earnings are still looking pretty chill, making us keep our party hats on 🥳. The tech outperformance, despite all the negative noise, has us feeling good about stocks. But remember, as rates rise, it's like the DJ increasing the volume, making valuations seem even louder 🎧.

Financials

🎭 AIG (American International Group) 🌐, a familiar name that's likely underpinning your car insurance or your mom's home policy, has taken to the business chessboard. They're strategizing a deal to sell off their Validus Re subsidiary to RenaissanceRe (RNR). This isn't small change we're talking about - it's a king's ransom of over $4.5B! AIG is set to receive $2.985B at close, with $2.735B coming in crisp cash and $250M in shiny new RNR shares. This is quite the impressive power move, strategically placing AIG in a strong position to reinforce its core businesses. 🎲

Industrials

🛫 HEI (HEICO Corp.) 🌉, the unsung hero that might just be manufacturing parts in the airplane you're Instagramming from, soared above expectations in its FQ2/April report. With an EPS of 76c, they didn't just clear the bar set by Wall Street's 72c forecast, they jetted past it. That extra 4c per share could be the fuel HEICO needs to further propel its growth in the bustling aerospace industry. Take note, travelers - HEICO is making moves! 🚀

📚 NDSN (Nordson) 🛠, the hidden genius behind the assembly of your favorite smartphone or gaming console, proved itself to be a true tech titan in its FQ2/April report. Pulling in a whopping $650MM in revenue, it managed to outdo the Wall Street estimate of $644MM. But here's the real kicker: it's EPS shot up to a robust 2.26, racing ahead of the Street's 2.12 forecast. So the next time you marvel at the sleek design of your latest gadget, remember Nordson may just be the unsung hero behind its creation. 🎮

Tech

🌌 ZM (Zoom Video) 📹, the lifeline that kept us connected through virtual happy hours, online classes, and endless business meetings during lockdown, continues to keep us on our toes! In its FQ1/April earnings, Zoom reported a revenue of $1.105B, a solid increase of 5% FXN, and surpassing the Street's estimate of $1.084B. Their EPS also had an impressive showing at 1.16, leaving the Street's 0.99 prediction in the dust. And with a substantial $5.6B in net cash to wrap up the quarter, Zoom is on a promising trajectory for future growth. So keep those virtual backgrounds handy, Zoom isn't going anywhere just yet! 🚀

Travel

🏨 PEB (Pebblebrook) 🏖, the folks possibly behind that dreamy boutique hotel you've been daydreaming of for your next vacation, are checking in with some interesting insights. The trends in their Q2 show overall demand and profitability keeping pace with expectations. Business and group bookings remain positive, while leisure travel, although not as vibrant as the suite upgrade craze last year, is still going strong. It's good news for wanderlust-stricken millennials - the hospitality industry is eagerly awaiting your return! 🌍

🌯 That's a wrap for the day. 🌯

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Fin-specto Revelio!