Morning Market Feed, June 7th

I have been extremely busy yesterday, busy writing articles, and got a few good ones to refer to, so get ready because it will be a good one, let’s dive straight into it!

- lululemon Earnings

As I already told you my first thoughts about the lululemon earnings, I won’t go into it much further here, however, I did write an article in which I went into all my thoughts about it. This is quite the article as I listened to the earnings call twice, to pick the best parts from it and just to be sure that I had it all, went through the transcript as well. The article first goes into the operating metrics, what other parts stood out and my full opinion on the earnings. You can check that article here

- The Top Is Here, Honestly, This Time For Real

I see more and more people saying that the top is being made for Nvidia, this time it will be a blow-off-top. Just like it was too overvalued at $350, impossible to grow further at $500, and overdone at $900. I quite like that order if I may say so myself. Anyway, you might have guessed it, but I’m skeptical of those opinions, especially when I know these accounts are reporting on it since $500, $750, and $900. I wrote an article on this as well because I find it funny, because it’s not like I own or plan to own Nvidia, but it’s an obvious scream to be right. Not to upset too many people, but Nvidia simply doesn’t fall in my circle of competence. All I know about the sector is that it used to be cyclical, but with all the investments in AI it seems to have created some new dynamics. All I know is, I had a lot of fun writing this article

- PayPal has seen its bottom

I’m not one to make predictions in the market, however, what I have heard from the latest conference of BofA securities where Alex Chriss, the CEO of PayPal was a guest speaker was really impressive and exactly what the street was waiting for in my opinion. There were lots of gems dropped in the interview, one of them was the note Alex Chriss has received from a CEO of a mid-size airline. You can read the full article here, as well as what that exact gem was…

- Another “good” jobless report

The weekly jobless data that’s released on Thursday came out as scheduled yesterday. The expectation was for 220K initial jobless claims, and 1790k continuing jobless claims. The actual numbers came in at 229K initial jobless claims, and 1792K continuing jobless claims. This is another jobless report that is leaning towards the side of rate cuts.

- So what to look for today?

Today will brig us the average hourly earnings, non-farm payrolls, and the unemployment rate. These will move the market, so let’s look at what is expected, and how these numbers compare to last month.

Average hourly earnings:

• Expected to come in +0.3% month over month, compared to 0.2% last month. An acceleration in hourly earings

• Expected to come in at 3.9% year over year, compared to 3.9% last quarter

• Average weekly hours are expected to come in at 34.3 hours, same as last month. This is important because it can be an underlying explanation to earings directions

Non farm payrolls:

• Expected the addition of 185K jobs, compared to 175K last month. This number often misses expectations however as last month the expectation was 243K, and the month before the April expectation was 200K, with the actual number coming in at 303K. Remember, this number includes illegal immigrants, a fact that has been slightly controversial about the report.

Unemployment rate

• Expected to come in at 3.9%, compared to 3.9% last month. So no change on a percentage basis.

- For next Monday

Monday, I will give a short write-up about my holdings, why I own them, and the philosophy behind my portfolio. If you have any questions for me that you want answered about this topic, please e-mail me at info@growingquality.net and if I get a few of the same questions, I will answer them as well in the newsletter.

Let’s see if we can finish the week on a strong note and make an absolute push towards new highs on the S&P500, and Nasdaq

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