👍 Consumer sentiment jumps

Good morning investors! Stocks rallied on Tuesday thanks to the new EU-US tariff talk.

Today we cover:

• Consumer sentiment jumps for the first time since November

• Tesla in trouble

• Dividend investing

Reminder: We covered Nvidia in this week’s PRO issue specifically talking if it’s a buy before earning. It’s still not too late to check!

📊 Economy and News 

Consumer Confidence Surges in May on U.S.-China Trade Hopes

Consumer confidence jumped in May, driven by optimism over a U.S.-China trade truce.

The Consumer Confidence Index rose to 98.0, up 12.3 points from April, surpassing expectations of 86.0.

The rebound, spurred by President Trump’s May 12 tariff halt, followed five months of declines.

The present situation index climbed to 135.9, and the expectations index surged to 72.8.

Optimism about stocks and jobs also grew, with 44% expecting higher stock prices and 19.2% anticipating more jobs in the next six months.

Sentiment improved across all demographics, with Republicans showing the strongest gains.

Global hits:

• IMF nudges up UK’s 2025 growth forecast, sees ’significant risks’ to deficit goals.

• Dollar strengthens, yen slips as Japanese yields slump.

• UBS predicts ECB depo rate cut to 2% on June 5.

• China’s industrial profit growth accelerates in April as Beijing’s policy measures cushion tariff impact.

Check this: Japan’s Nippon expected to close acquisition of U.S. Steel at $55 per share. Elsewhere, U.S. iPhones shipped from India in April rose about 76% to reach 3,000,000. That’s a stark contrast to shipments from China over the same period, which fell about 76% from last year to just 900,000.

Also, 23andMe to delist from Nasdaq, deregister with SEC. Lastly, Trump administration moves to cancel all remaining federal contracts with Harvard.

We must mention that in a poll last week, about 60% of our subscribers sided with Harvard over the fiasco.

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📈 Stocks

S&P 500 5,921.54 (+2.05%)
DJIA 42,343.65 (+1.78%)
NASDAQ 19,199.16 (+2.47%)
BRENT CRUDE 64.29 (-0.70%)
* Prices as of May 28th, 12:20 AM UTC

Tesla Sales Plunge in Europe Amid Rising Competition and Brand Backlash

Tesla’s European vehicle sales dropped 49% in April year-over-year, falling to just 7,261 units, even as the region's overall battery EV market grew by 34%.

The company has been hit by rising competition—especially from Chinese automaker BYD, which outsold Tesla in Europe for the first time—and shifting consumer preferences toward hybrids, a segment Tesla doesn’t offer.

The sales slump follows ongoing reputational challenges linked to CEO Elon Musk’s political ties, which have sparked protests across Europe. From January to April, Tesla’s sales in the region fell nearly 40%.

Tesla recently updated its Model Y SUV, but lacks new mass-market models. Musk has pledged to stay committed to Tesla leadership, despite splitting time with political roles in the U.S. government.

Despite this, the stock went up 6%.

Check this: Salesforce to acquire data management company Informatica in $8 billion deal. In another news, Pornhub and other adult websites under EU investigation over lack of child safety measures.

Temu-owner PDD Holdings profit dives as it faces challenges amid trade war. Lastly, Gold extended declines as the dollar swung to a gain and demand for haven assets cooled.

Don’t forget: Apple acquires videogame studio behind hit Arcade title Sneaky Sasquatch.

Palantir won a $795 million contract modification from the U.S. Army for its Maven Smart System, boosting the total award to about $1.3 billion. The move also earned the company an upgrade.

🔐 Crypto

Bitcoin $108,937 (-0.54%)
Ether $2,663 (+1.43%)
Solana $176 (-0.66%)
Total market cap $3.48T (-0.52%)
* Prices as of May 28th, 12:20 AM UTC

Trump Media & Technology Group Bolsters Bitcoin Strategy

Trump Media & Technology Group (DJT) unveiled plans to amass one of the largest bitcoin treasuries held by a public company, backed by a $2.5 billion private funding round.

The funding includes $1.5 billion in common stock and $1 billion in convertible senior secured notes, with a closing expected around May 29.

The initiative will place bitcoin on the company’s balance sheet alongside $759 million in cash and equivalents reported in Q1 2025.

Trump Media CEO Devin Nunes called bitcoin a “crown jewel” asset. The news helped BTC cross the $111,000 mark before retreating; however, DJT fell -10% as a result.

💵 Personal Finance

7 Key Factors for Choosing Dividend Stocks

While market swings and uncertainty keep some investors up at night, dividend investors rest easy, collecting steady payouts from reliable companies. To build a portfolio that delivers consistent income and stability, here are seven key factors to consider when selecting dividend stocks, plus a strategy to weather turbulent times.

1. Dividend History: Seek companies with 5–10 years of consistent dividend payments, reflecting strong management and reliability. Compare sector trends for context.

2. Balance Sheet: A robust balance sheet with low debt and valuable assets ensures dividends remain sustainable, even in economic downturns.

3. Payout Ratio: A 40%–60% payout ratio strikes a balance between rewarding shareholders and reinvesting in growth. Avoid overly high ratios that risk unsustainability.

4. Dividend Yield: Look for yields above the S&P 500’s 1.2%—4% is decent, 5% or higher is strong. Compare yields within sectors to avoid risky high-yield traps.

5. Sustainable Growth: Companies with innovation, expansion plans, and consistent financials are poised for dividend growth. Use SWOT analysis to assess risks and potential.

6. Mature Sectors: Utilities, healthcare, and consumer staples offer reliable dividends due to steady demand and resilience to economic cycles.

7. Continuous Monitoring: Regularly review leverage, profit margins, and cash flow to ensure dividend reliability and spot undervalued opportunities.

Why Dividend Investing Works:

• ✅ Regular income, regardless of market volatility

• ✅ Exposure to stable, established companies

• ✅ A low-stress way to stay invested without timing the market

If market uncertainty has you worried, dividend investing could be your path to calm and consistent returns.

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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