US Equities On the Up 👆

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• 🕺Markets continue to be short-term bullish 🐂

• 🤝 Debt ceiling deal may mean more liquidity

• ⛵ Nvidia is, that stock

☀️ Morning Markets - First off, US equity futures are on a joy ride - S&P is zipping up with +24 points, Dow is tangoing with +99 points, and Nasdaq is soaring like a kite with +158 points. NVDA is up by over 3% in the pre-market and the SMH, our trusty semiconductor ETF, is hopping up by more than 2%.

🙃 Meanwhile, major Eurozone indices are like teenagers on a Saturday - mostly lying flat, with a bit of action in tech, insurance, media, real estate, luxury, and utilities. Asia stocks are playing a game of 'Red Rover': they can't decide whether they want to come over or stay put, with mixed price action all around.

Moving to the bond market, Treasuries are enjoying a little 'me-time' this morning, with yields chilling out by 3-5bp across the curve. Meanwhile, US CDS are taking a breather following the weekend's debt ceiling deal, and the DXY is lying in, not budging much. 🥱 Brent's acting like it found a spider in its bed, tumbling around 180bp to around $75.67.

Gold, however, is taking a 'mindfulness' moment, staying completely zen and trading flat.Bitcoin is looking pretty chuffed, sitting on a comfy cushion of over $1K gain from Friday at $27.82K. 📈Gold, however, is taking a 'mindfulness' moment, staying completely zen and trading flat.

🐝 Tuesday Buzz - On today's docket, we've got the US equity momentum carrying on like the Energizer Bunny, further propelled by news of a debt ceiling deal. The deal isn't seen as a major game-changer for markets, but its reception does tell us a bit about the mood of the party - which is cautiously optimistic, like someone trying their first wasabi pea.

In the tech world, the AI hype train is chugging along, with the SMH (semiconductor ETF) jumping by another 2% and NVDA climbing by more than 3%. Beyond that, things are fairly quiet this Tuesday morning.

🏛️ Stock Vibes - When it comes to stocks, we're keeping our eyes on the prize – earnings strength is our guiding star, the shiny bauble leading the SPX rally. Of course, we're keeping an eye out for any bumps on the road. We're a bit worried about the economy normalizing (and potential disinflation) weighing on earnings more than it eases yields, which could put a damper on stocks.

We're also a little antsy about the bears leaving their caves and diving into stocks for shaky reasons like "AI". Lastly, we're crossing our fingers but not expecting any miracles from SPX - even with a generous 19x multiple on the 2024 EPS forecast of $240, we're only looking at an 8.5% rise from here.

🗒️ More Macro Vibes - Over in Spain, the CPI has taken a chill pill and come down to +2.9%, which is lower than last month's +3.8% and beneath the Street's expectation of +3.3%. Meanwhile in the UK, food inflation has fallen for the first time in nearly two years. It's sitting at +15.4% in May, slightly lower than April's +15.7%.

Across the sea in Japan, the BOJ is not feeling the heat to change monetary policy just yet. They say there's still some room before the 2% inflation target is sustainably hit. Speaking of inflation, China seems to be on the upswing with manufacturing momentum gaining pace in May.

However, China's economic victory lap might be cut short as the post-reopening recovery slows down and structural imbalances start peeking out from under the rug. Not to mention, it seems China's not too keen on playing nice, brushing off a US request for defense chiefs to meet at a forum in Singapore.

⚡ In the energy sector, Longi Green Energy is heating things up by slashing wafer prices by a hefty 31%.

🎮 CD Projekt's CEO has made it clear that the company is not up for grabs.

🍵 Nestle and Unilever have both welcomed new finance chiefs.

🚬 Philip Morris Int'l is slowly but surely becoming an ESG stock as its revenue pivots towards vapor-based nicotine products.

🚗 Tesla's Musk is said to be making a trip to China this week, his first in three years.

🎶 And for all you music lovers, Universal Music Group might drop over $1B for the back catalogue of Queen, a record-breaking deal that would make some serious waves in the music rights business.

🌯 Wrap for earnings. Have a fantastic day! 🌯

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Fin-specto Revelio!