🔥 Inflation under control

Good morning investors! After a not-so-exciting last week, investors are prepared for major movements this week.

Today we cover:

• Inflation under control

• A look at stocks

• Making money from home

📊 Economy and News 

The inflation report is here

A closely watched government report showed that prices were essentially unchanged in May, a welcome sign for those hoping for relief from inflation and the high interest rates designed to combat it.

The annual inflation rate as measured by the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred measure, also moved closer to the central bank's goal of 2%.

Housing prices continued to be a challenge, increasing by 0.40% for the fourth consecutive month. The ongoing imbalance between housing demand and supply is likely to keep driving shelter prices up. The Fed's only tool to address this is to raise financing costs and slow down the economy, putting pressure on current homeowners to make changes.

Friday's report was another piece of evidence supporting expectations among traders and economists that the Federal Reserve will cut interest rates in September.

Global hits:

• Financial crimes watchdog removes Turkey from money laundering ‘gray list’.

• Warren Buffett gives away another $5.3 billion, says his children will manage his estate.

• ‘Inside Out 2’ is the first movie of 2024 to top $1 billion at global box office.

Europe: Fed and European Central Bank could cut interest rates in September, Morgan Stanley strategist says. However, some experts think that France’s election has the ability to rock wider European stock.

📈 Stocks

S&P 500 5,460.48 (-0.41%)
DJIA 39,118.86 (-0.12%)
NASDAQ 17,732.60 (-0.71%)
BRENT CRUDE 85.22 (-0.01%)
* Prices as of Jul 1st, 12:20 AM UTC

A look at stocks

Here’s what happened over the weekend:

• Ford is recalling more than 550,000 F-150 pickups in the United States because of an issue that can cause the transmission to suddenly and unexpectedly, at any speed, shift down to first gear.

• Apple’s mixed-reality headset began deliveries in China with a retail price roughly 18% higher than in the U.S. The device starts at 29,999 yuan, or $4,128, in China, compared to a $3,500 retail price in the U.S.

• Nike posted dismal fiscal 2025 guidance that sent shock waves through Wall Street, leading at least six investment banks to downgrade the stock. Analysts at Morgan Stanley and Stifel called Nike’s management, including CEO John Donahoe, into question and said the athletic company is losing its once ironclad credibility.

• TSA forecasts a record-setting holiday screening period for flyers around July 4. Travelers must stay aware of in-flight traffic, erratic weather patterns, and cancellation and delay policies ahead of a booming summer travel season. But so far there’s encouraging news: “We have not seen the major meltdowns that we saw a couple of years ago,” says The Points Guy managing editor, Clint Henderson.

• Infinera's stock jumped 16% after the announcement that Nokia, the Finnish telecom network equipment giant, is buying the company for $2.3 billion. This acquisition will help Nokia strengthen its presence in North America's optical networking market, taking on big names like Ciena and China's Huawei.

🔐 Crypto

Bitcoin $62,874 (-0.11%)
Ethereum $3,478 (-0.34%)
Total market cap $2.33b (-0.24%)
* Prices as of Jul 1st, 12:20 AM UTC

The U.S. Supreme Court has made two major rulings against regulatory overreach, ending the notorious Chevron deference and dismantling the SEC's in-house courts.

End of Chevron Deference

For decades, Chevron deference let federal agencies interpret ambiguous laws with minimal judicial oversight. But in Loper Bright Enterprises et al. v. Raimondo, the Supreme Court decided that judges should interpret laws, not agencies. This limits regulatory power and reclaims the judiciary's role in defining the law.

SEC’s In-House Courts Terminated

In SEC v. Jarkesy et al., the Court ended the SEC’s practice of using in-house courts to impose penalties without jury trials. The ruling mandates that significant penalties must be decided by a jury, ensuring proper judicial review and fairness.

Implications for Crypto

These rulings are a game-changer for the crypto industry, curbing regulatory overreach and ensuring fairer oversight.

Agencies can no longer arbitrarily interpret laws or impose penalties without judicial scrutiny. This marks a new era of clearer laws and balanced power. Cheers to accountability and fairer regulations!

💵 Personal Finance

Make Money Online – Part VI

You wanted more, here we are with more ways to make money online. The series will continue this week.

Rent Out Your Space and Make Money Doing Nothing

You can rent out your room, parking space, and basement. Some people also make money by putting their backyard up for rent.

Even businesses have started to rent out rooms and conference halls to other businesses in need. Freelancers and startups are often on a lookout for furnished rooms to hold events and meetings.

The demand for space is very high in congested cities where homes are small. You can join a platform like Airbnb, JustPark, and RenttheBackyard to get started.

You can make a lot of money by renting out your space depending on what you’re renting, for how many hours you’re renting it, and what kind of amenities you offer.

Hosts on Airbnb, for example, make as little as $200 and as high as $20,000 per month.

Other than this, you can make between $10 and $20 per hour for putting your parking space, basement, or backyard up for rent.

💰 Be a Better Investor

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

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