😁 Earnings continue

and some are in trouble

Good morning investors! Big companies have announced earnings but some names like Disney and Uber are still to announce, and today all eyes will be on Disney that announces before the bell.

Today we cover:

  • Demand for loans is falling.

  • A look at stocks.

  • Boeing again in trouble.

📊 Economy and News 

US financial regulators restart work on long-delayed compensation rules

A trio of U.S. financial regulators have resumed work on a long-delayed rule-writing project to make executive compensation plans at financial firms more sensitive to risk.

The Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and Federal Housing Finance Agency jointly proposed the rule, which would bar incentive-based plans that do not account for risks or allow pay to be clawed back or forfeited.

The proposed rules are aimed at ensuring that leaders of financial institutions are not encouraged to take on excessive risk in a bid to boost their personal compensation.

Global hits:

Something about banks: U.S. banks reported renewed weakening in demand for industrial loans and a decline in household demand for credit in the first quarter of the year.

New AI: Microsoft is preparing new AI model to compete with Google, OpenAI. Plus, Apple is developing AI chip for data centers.

📈 Stocks

S&P 500 5,180.74 (+1.03%)
DJIA 38,852.27 (+0.46%)
NASDAQ 18,093.57 (+1.13%)
BRENT CRUDE 83.27 (-0.07%)
* Prices as of May 7th, 12:20 AM UTC

Possible rate cuts push stocks higher

Stocks advanced Monday, with Wall Street building on the previous session’s strong gains as traders lifted Federal Reserve rate cut expectations.

An announcement from Hamas on Monday that it accepted an Egyptian-Qatari cease-fire proposal to end the war with Israel gave stocks a boost in early afternoon trading.

Richmond Fed president Tom Barkin expressed optimism that current interest rates will eventually curb inflation. Barkin cited a strong job market and the Fed's deliberate approach to recent economic fluctuations. He reiterated the need for greater confidence in inflation returning to its target before considering rate cuts.

Micron gained 4.7% after Baird upgraded the stock to outperform from neutral and said it sees “meaningful opportunities ahead” for the chipmaker. American Airlines and Super Micro Computer were also among the top-performing S&P 500 stocks, gaining about 5.8% and 6.1%, respectively.

On the other hand, Palantir reported stronger-than-expected revenue and EPS in line with analyst estimates, but issued weaker-than-expected full-year guidance.

The company also posted a net profit for the sixth straight quarter.

It signed a $178 million contract with the U.S. Army earlier this year, to help develop a next-generation, field-deployable sensor station. The stock was down -6% after the bell.

More trouble for Boeing: Reports say that investigators are probing whether Boeing employees failed to perform some quality inspections on its 787 jets.

The investigation is to determine whether the inspections were conducted and “whether company employees may have falsified aircraft records,” the FAA said.

Games with GameStop: GameStop had a crazy week and this seems to be another confusing week. From +31.61% last Friday, GME opened yesterday lower by -8.99% and lost as much as -16.49%. However, by the end of the day, it had recovered nearly all of the losses and was only down -0.97% from Friday’s close. Truly a meme stock.

💵 Personal Finance

Invest in estate planning

Very few people pay attention to estate planning, which involves " mapping out how your property and assets will be divided in the event of your death."

Again, we understand that it can be difficult to think of your death but it’s important to ensure you can leave the legacy that you want and prevent fighting of those left behind.

Estate planning, however, can be complicated as it involves a number of components:

Furthermore, we suggest that you know about estate tax to ensure your loved ones do not have to pay hefty taxes on assets they inherit. Insurance is often used to cover this tax.

Tax limits and rates usually change from time to time. Here’s a table showing current taxes:

The process can be lengthy and involves several steps, including:

  • Making a list of all your assets. 

  • Making a list of all your debts.

  • Making copies of your lists. 

  • Reviewing your retirement accounts..

  • Reviewing your insurance and annuities. .

  • Setting up joint accounts or transfer of death designations. 

  • Choosing your estate administrator.

  • Writing your will

  • Reviewing your documents.

  • Sending a copy of your will to your administrator.

  • Seeing a financial professional.

  • Considering consolidating your accounts. 

  • Completing other financial documents such as a power of attorney.

Check this video for more on estate planning:

💰 Be a Better Investor

“While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.”

Seth Klarman

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👩🏽‍⚖️ Legal Stuff
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