Join Tematica Research's Chief Macro Strategist, Lenore Hawkins, and Chief Investment Officer, Chris Versace, as they discuss and debate what's driving the market and the economy this week.

Last Week's Market

Gold hit 4-month high
Bitcoin - found support post Elon Musk reversal on his crypto views

YTD returns

Nasdaq Composite 6.6%
S&P 500 11.8%
Dow 12.6% 
NYSE Composite 13.8%
VIX - 26.4%
TLT -12.1%
Gold flat
Bitcoin up 31.5%

Economic recap 

International


Germany Ifo biz sentiment smashed expectations, hitting 2-year high with entire euro area catching a material tailwind through Q2.
Europe catching up, China & US are in the process of hitting peak rates of growth and moderating


US


Univ Michigan Consumer Sentiment survey - sub indicator looks at the buying conditions subindices (largehousehold durable goods, autos and housing). In short, this measures when consumers are confident they will spend — this metric has now sunk to the lowest level since the depths of the financial crisis back in October 2008.
Seeing downward revisions in Q2 GDP estimates
There continue to be tremendous distortions in the data that will continue mostly through September.
Nearly 16m American still on at least one benefit program versus an average of 2m pre-pandemic. This will take a while to unwind and is a headwind to growth
Preliminary estimate for Q1 saw corporate profits fall -0.8% after a -3.3% decline in Q4.


Earnings of Note

Nvidia (NVDA)
Costco Wholesale (COST)
lululemon Athletica (LULU)
GAP (gPS) - Athleta!

Cleaner Living theme

Ford (F) has gained more than 25% since the start of last week, rising to its highest level since 2015. Thursday RBC upgraded shares to outperform from sector perform over the company’s updated business strategy that makes its EV plans more clear. The company reported that it received 20k preorders for its F-150 lightening truck in the first 12 hours after its reveal.  The company also announced a JV with South Korea’s SK Innovation on a facility capable of making enough batteries to power the equivalent of 600k all-electric vehicles per year. The company expected 40% of its sales to come from EVs by 2030.

Microsoft (MSFT) observed “This week we observed cyberattacks by the threat actor Nobelium targeting government agencies, think tanks, consultants, and non-governmental organizations. This wave of attacks targeted approximately 3,000 email accounts at more than 150 different organizations. While organizations in the United States received the largest share of attacks, targeted victims span at least 24 countries.” Nobelium, originating from Russia, is the same actor behind the attacks on SolarWinds (SWI) customers in 2020.

Next week

Tuesday, June 1


Ambarella (AMBA) - 
Zoom Video (ZM) - What does it see as employers re-open door and folks begin to work less from home?


Wednesday, May 26


Cloudera (CLDR) 
 PVH (PVH) - 
 Splunk (SPLK) - Cybersecurity!


 Thursday, June 3


Broadcom (AVGO) -  5G handsets and connective chips — timing of this report vs. June quarter reporting - will be watching for comments on chip shortages, supply chain issues
ChargePoint (CHPT) -  What are its plans to expand its charging station footprint and the EV landscape heats up? Miles per charge and time to recharge an EV battery are still someof the sticking points for EV holdouts.
lululemon Athletica (LULU) - Based on Gaps’ April quarter results with Athleta, LULU likely crushed it, but will that continue as folks head back to the office and need up update their business or biz casual wardrobe?


And as the pace of quarterly earnings reports ticks lower, investors will have a pickup in IB investment conferences including


Deutsche Bank dbaccess 11th Annual Global Financial Services Conference 2021
Jefferies Global Healthcare Conference 2021
William Blair 41st Annual Growth Stock Conference 2021
Cowen and Company 49th Annual Technology Media and Telecom Conference-TMT 2021





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Related: The Week Ahead: Is the Bitcoin Bubble Bursting?