🦢 Black Swan Street Weekly Stock Market Summary (May 29th - June 2nd 2023)

Good Afternoon!

Welcome back to Black Swan Street, the stock market coverage that makes you feel like Jimmy Butler in the NBA playoffs: It’s your time to shine.

It’s Friday, the weekend is almost here. Let’s boogie:

• Stock Market Summary 🦢

• United States Labor Market is Strong 💪🏼

• Debt Ceiling Bill Passed 💸

• Other News In The Stock Market 🌎

• Next Week In The Stock Market 🔮

Get the Black Swan Street newsletter sent directly to your inbox

Join for free here ↓

Let’s get into it ↓

Stock Market Summary 🦢 

Performance This Week:

Earnings Recap This Week:

United States Labor Market is Strong 💪🏼

This week we got 3 different economic reports that showed the United States labor market is still in a strong place.

1. U.S. JOLTs Job Openings: This is a monthly survey done by the U.S. Bureau of Labor Statistics to help measure job vacancies. For a job to be considered “open” it must meet all three conditions:

• A specific position exists and there is work available for that position

• The job could start within 30 days, whether or not the firm finds a suitable candidate during that time

• There is active recruiting for workers from outside the firm location that has the opening

Bullish: A reading that is stronger than the expectation is generally ‘good’.

2. U.S. ADP Nonfarm Employment Change: A measure of the monthly change in private employment based on the payroll data of approximately 400,000 U.S. business clients.

Bullish: A reading that is stronger than the expectation is generally ‘good’.

3. U.S. Unemployment Rate: Measures the percentage of the total work force that is unemployed and actively seeking employment.

Bearish: A reading that is higher than the expectation is generally ‘bad’.

Unemployment increased to 3.7%, above the expectations, but still remains near a 50-year low.

Also to note: U.S. employment report shows U.S. economy adds 339,000 jobs in May, blowing out expectations of 190,000.

Despite the fastest rising interest rates in history, the labor market remains incredibly strong.

Debt Ceiling Bill Passed 💸

The Senate has voted to approve a bill that raises the debt ceiling and avoids a United States default.

What’s in the debt ceiling deal?

• Suspends national debt ceiling through January 1st, 2025

• Cuts spending by $50 billion

• No new taxes or government programs

• Resumes pause of student loan repayments

• No budget caps after 2025

• Boost in defense and VA spending

• Domestic program spending frozen for one year

It’s bad. Like real bad. The United States essentially eliminated any restrictions on borrowing until January 1st, 2025. So let’s imagine a crazy and impossible scenario: There’s a recession during 2023-2024. The government has unlimited borrowing authority, which will re-inflate the bubble.

What does all this mean?

The United States government is short-term thinking. The economy will most likely pump until January 1st, 2025, as we have virtually unlimited borrowing power. Then when that day comes, we will most likely be at historic debt levels, and the United States economy will be in a not-so-good place.

We’ll be covering the progression of this debt ceiling bill live on our Twitter:

Click here to follow ↓

Other News In The Stock Market 🌎

• Saudi Arabia in talks to join ‘BRICS Bank’ - FT

• Tesla shares rise as Elon Musk meets with China’s foreign minister - CNBC

• Debt-ceiling deal reaches hardest part: Congressional approval - YF

• Nvidia market cap tops $1 trillion - FB

• Goldman Sachs cutting 250 jobs - CNBC

• Julia Brau Donnelly to become Pinterest’s new CFO - MW

• Debt deal would end freeze on student loan payment. SoFi stock jumps - B

• Bud Light sales down nearly 30% in latest data - OK

• Microsoft to appeal U.K. rejection of Activision deal at end of July - MW

• Target stock falls toward longest losing streak in 23 years - MW

• Lucid to raise about $3 bilion from Saudi’s PIF - RT

• Amazon to pay over $30 million in FTC settlements over Ring, Alexa privacy violations - CNBC

• NRG Energy to boost stock repurchase program by $650 million - MW

• JPMorgan will close 25% of First Republic branches by end of year - FB

• Constellation Energy to buy stake in Texas nuclear plant in $1.75 billion deal - RT

• Private sector job growth increases by 278,000 in May, easily beating expectations - FB

• Senate passes debt ceiling bill to avert U.S. default - YF

• Apple plans major retail push with new stores across China, U.S. - YF

• Jobs report shows a big 339,000 gain in may - MW

• Chemical makers Chemours Co, DuPont de Nemours Inc, and Corteva Inc to set up $1.19 billion fund to settle PFAS-related drinking water claims - RT

• Ford’s Lincoln issues recall of more than 140,000 vehicles for risk of fire - MW

• 3M reaches tentative pollution settlement of at least $10 billion - RT

We want to make the Black Swan Street newsletter the best possible newsletter for our readers (that’s you), so please answer this question to help us do that ↓

Next Week In The Stock Market 🔮

Earnings Next Week:

What the Swan is watching:

Tuesday: ABM Industries, Ferguson, Casey’s, Dave & Buster’s, Ciena

Wednesday: Gamestop, United Natural Foods, Campbell’s, Lovesac

Thursday: DocuSign, Signet

Friday: Nio

Economic Calendar Next Week:

The Swan’s Picks 🦢

🦢 The Building in Public of Black Swan Street. Go behind the scenes and see us grow Black Swan Street. We document our strategies, struggles, triumphs, everything.

🍞 Subway wants $10 billion sale. The world’s largest fast food sandwich chain, subway, is now up for sale. The company has been seeking a buyer since February and hopes to fetch a $10 billion price tag.

❌ Reddit’s valuation slice. Fidelity, the lead investor in Reddit’s most recent funding round in 2021, just slashed the estimated worth by 41%. Poor Reddit :(

That’s all we got for this week!

As always, please let us know what you thought about this week’s edition ↓

We love and really appreciate feedback. Please reply to this newsletter and let us know anything you liked, didn’t like, or would want to see in future editions.

We want to always be improving the newsletter for your experience!

Last chance to subscribe for free…

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research