🥗 Inflation persists

and new airline orders

Good morning investors! Only a handful of major names are left to announce earnings this season and focus will once again be on economic reports this week.

Today we cover:

  • Inflation isn’t dying.

  • New plane orders.

  • Free stocks.

Why not check our Twitter handle for the latest, including a market recap every weekend?

📊 Economy and News 

Inflation isn’t really falling

Inflation in April remained at the same persistently high level as in March, indicating that costs continue to rise too quickly for consumers. This suggests that the Federal Reserve still has significant work ahead in its effort to combat rising prices.

According to Commerce Department data released on Friday, the Personal Consumption Expenditures (PCE) price index—a key inflation measure used by the Fed for its 2% target—increased by 0.3% from the previous month, resulting in an annual rate of 2.7%, consistent with March’s figures.

While food prices decreased for the month, gas prices increased by 1.2%. Prices for goods and services rose by 0.2% and 0.3%, respectively. Annually, services inflation stands at 3.9%, while goods inflation is nearly flat at 0.1%.

Excluding the more volatile categories of food and energy, the core PCE price index showed a slower monthly increase, rising by 0.2% compared to a 0.3% gain in March.

On an annual basis, the core PCE price index remained steady at 2.8% for the third consecutive month.

Global hits:

A new warning sign: The unemployment rate has stayed under 4% for more than two years, the longest stretch of time since the early 1960s. And there are more than 8 million jobs, which exceeds the number of openings before the pandemic.

But, not all is well. The unemployment rate for bachelor’s degree recipients aged 20 to 29 is above 12%, an almost four percentage point increase from a year ago.

This indicates that the economy isn’t as strong as it seems and the Fed might have some problems ahead.

Surprising: OPEC+ extends deep oil production cuts into 2025.

📈 Stocks

S&P 500 5,277.51 (+0.80%)
DJIA 38,686.32 (+1.51%)
NASDAQ 18,536.65 (-0.11%)
BRENT CRUDE 80.83 (-0.05%)
* Prices as of Jun 3rd, 12:20 AM UTC

New plane orders are coming

Qatar Airways is nearing a decision on a major widebody order split between Boeing and Airbus.

The Middle East carrier is looking at ordering about 200 jets, looking at a mix of Airbus A350s and Boeing 777X models, with a decision possible as soon as the Farnborough Air Show in Britain late next month.

This will be the first major order for Boeing since the company entered into a crisis earlier this year. It has reached a point where Emirates boss thinks Boeing needs strong CEO to end crisis.

There, however, is some hope for the company as even Pegasus is rumored to be planning a big order, which might benefit Boeing.

Good to know: Reports say that a hacker is trying to sell Ticketmaster data on the dark web. Also, Savings app CEO says 85,000 accounts locked in fintech meltdown.

Something about pharma: Pfizer’s drug for advanced lung cancer shows promising long-term trial results. On the other hand, FDA has approved Moderna’s RSV vaccine for seniors.

💵 Personal Finance

Get free stocks – part I

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This isn’t the only one, check tomorrow’s issue for some more ways to get free stocks.

💰 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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