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Economists expect another 185,000 jobs to be added in May. (0:18) Nvidia stock will be split 10-for-1 on the way. (1:46) A deeper look at cryptocurrency ETFs. (5:35)
Below is an abbreviated version
The main event this week on Wall Street won’t happen until Friday when the government releases official jobs numbers for May.
Economists expect nonfarm payrolls to rise by 185,000 last month, with the unemployment rate holding steady at 3.9%. Average hourly earnings are expected to rise by 0.3%.
BNP Paribas warned that the sharp decline in the pace of job creation between March and April may have overstated the degree of vulnerability due to the Easter shift in the calendar not being fully taken into account and with education employment expected to rebound from a very low level in 2019. April.
But Ian Shepherdson, an economist at Pantheon Macro, noted that the S&P Global Composite Employment Index for May reflected only half of April’s unexpected decline, and that the composite “has recently been a relatively good indicator of payrolls in the sectors it covers.” “.
“It points to another weak private sector payrolls reading for May, making us a bit more confident in our below-average forecast of 150,000, driven by Homebase data,” he added.
This jobs report is the last before the Fed’s June meeting, with markets almost certainly pricing in no action.
But Steve Englander, a strategist at Standard Chartered, is going against the trend in the long term.
“Futures markets expect cuts of about 3 basis points at the FOMC meeting on July 31,” he said. “We think this is too low. In fact, the July cut is our baseline. There are two more PCE releases before the July meeting, so there is plenty of room for core PCE to slow.”
Also on Friday, Nvidia’s (NVDA) 10-for-1 stock split will go into effect after the closing bell.
Stock splits “were more important in the past when purchasing fractional shares was uncommon or even impossible,” says Jonathan Weber, who leads the Cash Flow Club Investing Group.
But he says an Nvidia split could result in the stock being included in the price-weighted Dow Jones Industrial Average.
“If Nvidia is included in the Dow Jones Index, there will be some forced buying by ETFs that replicate the index, which could have a positive impact on Nvidia’s stock price. But overall, I think the impact of a stock split should not be so.” “Over-explaining it – it’s not a game-changer for the company.”
Walmart (WMT) will be in the spotlight with its shareholder meeting on Wednesday and its traditional partner celebration on Friday.
Walmart recently announced plans to run a members-only Walmart+ shopping event earlier this year, starting June 17 and running through June 23, which is three days more than last year. The change in timing puts the event a few weeks before Amazon’s Prime Day.
Among the notable gains this week are GitLab (GTLB) and Science Applications (SAIC) report results on Monday.
Tuesday will see CrowdStrike (CRWD), PVH (PVH), Hewlett Packard Enterprise (HPE), and Bath & Body Works (BBWI) participating.
Shares of Lululemon (LULU), Dollar Tree (DLTR), Brown-Forman (BF.A), Campbell Soup (CPB), and Five Below (FIVE) rose on Wednesday.
Samsara (IOT), DocuSign (DOCU), JM Smucker (SJM), and NIO (NIO) are scheduled to report on Thursday.
For those looking to sharpen their investing skills before the second quarter earnings season kicks off, Seeking Alpha is holding its first investing summit on June 18 in New York.
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In the news this weekend, OPEC+ agreed to extend its agreement on crude oil production until 2025. Total production next year will reach 39.7 million barrels per day.
The group is reducing supplies by 5.86 million barrels per day until the end of June. Of this, two million barrels per day represent unanimous commitments under OPEC policy for this year. Part of the coalition is voluntarily cutting another 1.66 million barrels per day until the end of 2024, while the second set of 2.2 million barrels per day of voluntary cuts continues until the end of the second quarter.
The price of WTI (CL1:COM) (USO) is just above $77 per barrel and is up 7% year to date. Brent crude (CO1:COM) (BNO) is above $81, up 5.5% this year. Reuters says many OPEC+ members need oil to exceed $80 a barrel to balance budgets.
Elon Musk is facing a $7.5 billion insider trading lawsuit from a Tesla (TSLA) shareholder, according to legal documents filed in a Delaware court.
Technology investor Michael Burry filed the lawsuit alleging that Musk sold more than $7.5 billion in company stock in 2022 before announcing fourth-quarter results on January 2, 2023, disappointing shareholders.
Perry said Musk “improperly benefited” from $3 billion in profits from alleged sales made in November 2022 and December 2022.
He added: “Musk took advantage of his position at Tesla and violated his fiduciary duties to the company and its shareholders.”
In the cryptocurrency space, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Grayscale Bitcoin Trust (GBTC) in assets under management last week with $19.68 billion.
Alpha Seeker Rena Scherbel spoke with Crypto Waves expert Ryan Wildey about money.
rupee: What are your thoughts on ETFs in this space? We saw BlackRock outperform Grayscale this week. What are your overall thoughts on all the players in the Bitcoin ETF space? What are your thoughts specifically on BlackRock?
Ru: I have a little concern about all the institutions getting into the game. A lot of bitcoins are being pulled into these wallets – the nice thing about the ETF versus GBTC, GBTC as we call it, Hotel California.
Once Bitcoin goes into the GBTC fund, that is the trust that existed before the ETFs. There was no way out. She was stuck there. Well, the nice thing about ETFs is that they have to buy and sell Bitcoin to manage the stock trading and asset value.
I know we can’t get into the mechanics of that, but we’ve seen — we can now watch those wallets actually buy and sell Bitcoin. So it’s good that this is no longer — it’s no longer the Bitcoin Hotel California, so to speak. It’s neither logging in nor logging out.
But at the same time, I would rather see people in general, i.e. the general public, being able to freely acquire the same amount of Bitcoin, get it cheaply and keep it in wallets. Just because that’s kind of my – that’s just my rebellious state, my rebellious view on Bitcoin that its value lies outside of institutions and the ability to hold something without a third party.
Now, personally, what do I do with those ETFs? Of course, I trade them. I want to collect the returns from my stocks, and the returns from my stock brokerage account, of course. So there it is. I’m not going to stick to my theological views, if you will, for lack of a better term. And I’m going to use it because it’s there, there’s no doubt as we talk about those ETFs.
I didn’t keep charts on it because there are so many of them now. And so what I do in the service is just there, and this is the level of Bitcoin. This is a basic conversion to Bitcoin level, so each person has an approximate amount of Bitcoin per share. So I keep track of that as best I can. It’s hard to get a very precise number and say, okay, now if you want to trade against the 50,600 support level on Bitcoin, here’s the approximate level – here’s the approximate calculation of that level for an ETF.
So people can do that, and I manage it the same way, because I don’t keep my own chart in the ETF. There are so many.
You can catch a full interview about the cryptocurrency space on the Investing Experts podcast this week.
For income investors, Lockheed Martin (LMT) will go ex-dividend on Monday, with a payment date of June 28.
Cigna (CI) goes without earnings on Tuesday. Halliburton (HAL) and H&R Block (HRB) will go ex-dividend on Wednesday.
In Wall Street’s research corner, Société Générale says the next commodity trade is in stocks. Analysts recommend buying shares of global mining companies, which underperformed the rise in industrial metal prices.
SocGen Bank also suggested investors buy green inflation stocks, or stocks exposed to key metals needed to make the world sustainable as economies address climate change issues.
The demand for industrial metals has contributed to a jump in the prices of copper, aluminum and others. Investors are also flocking to utility stocks as companies ramp up their use of artificial intelligence, which requires large amounts of energy to run related data centers.
But global mining stocks over the past 12 months have underperformed energy stocks despite gains in industrial metals, Société Générale said.
