🦢 Black Swan Street Weekly Stock Market Summary (June 26th - June 30th 2023)

Merica! Merica! Merica!

It’s Friday, and (for our American readers) it also happens to be the weekend before the 4th of July…

Before we get into the weekend and celebrate our independence, let’s cover the news that happened this week in the stock market…

This is what we got for you this week:

• Stock Market Summary 🦢

• Bank’s Pass Stress Test With Ease 🏛

• Other News In The Stock Market 🌎

• Next Week In The Stock Market 🔮

Let’s gooo ↓

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Stock Market Summary 🦢 

Performance This Week:

Earnings Summary This Week:

Bank’s Pass Stress Test With Ease 🏛

This week we had the Federal Reserve’s Stress Test. What is this? For simplicity: It’s an annual economic analysis used to determine whether a bank has enough capital to survive extremely adverse economic or financial conditions. These tests began as a result of the 2008 financial crisis.

Per the Fed, “this year, the supervisory severely adverse scenario is characterized by a severe global recession accompanied by a period of heightened stress in commercial and residential real estate, as well as corporate debt markets”.

Here are the banks that participated this year ↓

Main Takeaway: All 23 of “the U.S. banks included in the Fed’s stress test weathered a severe recession scenario while continuing to lend to consumers and corporations.”

This is very good news.

Click here to read the full results.

News In The Stock Market This Week 🌎

Acquisitions/Merger This Week 🔀

🏭 Prologis buying $3.1 billion industrial property portfolio from Blackstone: The portfolio is mainly warehouses and distribution properties and is said to include nearly 14 million square feet in about 70 properties across the United States. This all-cash deal marks one of the largest commercial real-estate transactions of 2023.

💵 PacWest sells $3.5 billion loan portfolio to asset manager Ares: The lender finance portfolio is said to be consisted of high-quality, asset-backed loans from a variety of borrowers. The portfolio ranges from consumer and small business loans to auto and real estate loans.

🤖 IBM buys Apptio for nearly $5 billion: IBM is transforming into a company that’s focusing on the hybrid cloud and AI, which fueled the purchase of Apptio, a software company that provides tools to help companies track of software and services they use.

⛑ UnitedHealth acquires Amedisys for $3.3 billion cash offer: UnitedHealth is buying the company for $101/share and the acquisition is intended to expand UniteHealth’s presence in the home healthcare space.

💰 Brookfield has offered to acquire American Equity Investment Life for $4.3 billion: Brookfield is looking to expand in credit investing by adding retirement annuity and life insurances assets and would acquire AEL shares for cash and stock for $55/share.

🇧🇷 Visa acquires Brazilian payments provider Pismo for $1 billion: Visa said that by acquiring Pismo, it “will be positioned to provide core banking and issuer processing capabilities across debt, prepaid, credit and commercial cards for clients via cloud native APIs.”

⚡️ Monster close to acquiring Bang Energy for $362 million: Bang Energy says transaction is being held up by FTC review 

Layoffs This Week ❌

• KPMG cutting 5% of U.S. workforce - FB

• Robinhood lays off about 7% of full-time employees - WSJ

• New Relic to lay off more than 200 employees - NR

• Ford plans to lay off at least 1,000 workers - WSJ

• UBS preparing to cut over half of Credit Suisse Workforce - BBG

Earnings Forecasts From This Week 🔜

Walgreens lowers full-year earnings guidance

• New full-year guidance: $4.00 to $4.05 per share

• Previous forecast: $4.45 to $4.65 per share

Micron releases Q4 guidance

• Forecast for Q4: Loss of ($1.12) to ($1.26) per share on revenue of $3.7B to $4.1B

• CIQ analyst consensus: Loss of ($1.08) per share on revenue of $3.95B

General Mills forecasts fiscal 2024 organic net sales

• Forecasts organic net sales to rise 3% to 4%, compared with 10% growth in 2023

Delta raises Q2 EPS guidance

• Delta forecasts EPS of $2.25 to $2.50, compared to the previous range of $2 to $2.25

Other News 🗞

• SL Green Realty shares surge after selling half of NYC building at $2 billion valuation - RT

• Aston Martin turns to EV company Lucid for high-tech help - CNBC

• Unity stock soars 15% after new AI marketplace announced - MW

• Lordstown Motors files for bankruptcy - CNBC 

• Powell signals more ‘restriction’ is coming, including possibility of rate hikes at consecutive meeting - CNBC

• DoorDash, shifting business model, will offer drivers hourly pay - TSP

• Inflation gauge tracked by the Fed falls to its lowest point in 2 years - YF

• U.S. economic growth was actually 2%, up from 1.3% first reported in major GDP revision - CNBC

• Apple market cap hits $3 trillion

Next Week In The Stock Market 🔮

Earnings Next Week:

What The Swan Is Watching:

Thursday: Levi’s

Economic Calendar Next Week:

That’s all we got for this week!

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Have a great weekend, you earned it!