💃 Nvidia beats Apple

and prepare for a slow summer

Good morning investors! Yesterday was a great day with some companies hitting new highs and Bitcoin once again crossing the $71,000 mark.

Fun fact: America has lost half its public companies since the 1990s. Back in 1996, there were 8,000 companies on US exchanges. Today that count has dropped by more than 50% to just 3,700.

Today we cover:

  • A new stock exchange is coming. 💃 

  • Nvidia creates new records. 🕺 

  • Prepare for a slow summer. ☂

📊 Economy and News 

A new stock exchange is coming

A new national stock exchange, based in Dallas and supported by major Wall Street players like BlackRock and Citadel, is set to challenge the renowned New York Stock Exchange and Nasdaq.

The newly formed TXSE Group announced plans to file for registration with the US Securities and Exchange Commission later this year. With backing from over two dozen investors and $120 million in funding, it’s the most well-capitalized exchange entrant to ever file with the SEC.

The group aims to attract the more than 5,200 private equity-sponsored companies in the region that might be looking to go public.

Lee told The Wall Street Journal that the group hopes to officially launch the exchange in 2026.

Global hits:

More about payrolls: ADP reported that companies added 152,000 jobs in May, fewer than the downwardly revised 188,000 in April and below the Dow Jones consensus estimate for 175,000.

Nearly all the hiring came from the services sector, with goods producers contributing just a net 3,000 to the total.

Trade, transportation and utilities led with 55,000 new jobs, while education and health services added 46,000, and construction contributed 32,000.

Also check: Boeing Starliner launches for the first time carrying NASA astronauts to the ISS.

📈 Stocks

S&P 500 5,354.03 (+1.18%)
DJIA 38,807.33 (+0.25%)
NASDAQ 19,035.05 (+2.04%)
BRENT CRUDE 78.63 (-0.12%)
* Prices as of Jun 6th, 12:20 AM UTC

Nvidia now more valuable than Apple

Nvidia, Wall Street’s top pick in artificial intelligence, continues to reach impressive heights.

On Wednesday, the AI chipmaker's market value hit $3.019 trillion, just edging past Apple’s $2.99 trillion. This makes Nvidia the second-largest publicly traded company in the US, right behind Microsoft's $3.15 trillion market cap.

Nvidia is now the third US company, after Apple and Microsoft, to surpass the $3 trillion mark.

Shares of the Santa Clara-based company climbed 5.2% to about $1,224.4 each, while Apple shares rose 0.8% to $196.

These gains also pushed the S&P 500 and Nasdaq indexes to new record highs on Wednesday.

Nvidia's stock has surged 147% this year, following a 239% rise in 2023. Apple shares have gained about 1.7% year-to-date.

Nvidia dominates around 70% of AI semiconductor sales, and some analysts believe the stock has even more room to grow.

Lululemon earnings: Lululemon beat Wall Street’s earnings and revenue estimates, but issued weak second-quarter guidance as it contends with a slowdown in the Americas, its largest market.

Last quarter, the company fumbled when it did not have the right sizes or colors in U.S. stores, which hit sales.

CEO Calvin McDonald touted Lululemon’s international growth and signaled that it has more work to do in the Americas.

The news sent the company up +10%.

Interesting: Electric air taxi maker Archer Aviation gets key FAA sign-off.

Bit of a warning: The US stock market is shrinking, and investors are pulling their money out at a near-record pace as they prepare for summer holidays.

This isn’t new. “Sell in May and go away” is a popular Wall Street-ism that describes the trend of investors closing up shop and sorting out their portfolios ahead of vacations. It also alludes to the historical underperformance of stocks during the summer months.

But recent trading flows show that something larger is at play this year.

Bank of America analysts said on Tuesday that their clients have now been large net sellers of US stocks for five weeks in a row. Just last week, they sold off $5.7 billion more in stocks than they purchased, the highest outflow since last July.

“Summer 2024 may prove volatile, with momentum stalling amid policy uncertainty,” wrote Morgan Stanley Wealth Management Chief Investment Officer Lisa Shatlett in a note this week.

💵 Personal Finance

Get free stocks.- Part IV

Because you loved it, we’re here with another way to earn free stocks:

Robinhood

Robinhood is a name that needs no introduction. Considered a pioneer of commission-free trading, the platform offers a chance to win a free stock valued between $5 and $200.

You can get a free stock from some popular names like Apple and Amazon (fractional shares included).

Here’s how it works: Sign up and wait for approval. Once approved, you will have to link a funding source, which will earn you a specified dollar amount and be able to pick your gift stock from a list of 20 of America’s leading companies.

The best thing? You’re allowed to sell your gift stock three trading days after you claim it.

In addition, you can earn free stocks by inviting friends. Not just you, your friends will also earn some free stocks when they join using your link.

A reminder:

Don’t join a platform just to win the bonus unless you have read all terms and conditions. Most promotional offers have limitations, i.e.: you might not be able to withdraw the amount right away.

💰 Be a Better Investor

"We all have dreams. But in order to make dreams come into reality, it takes an awful lot of determination, dedication, self-discipline, and effort.”

Jesse Owens

What did you think of today's newsletter?

Login or Subscribe to participate in polls.

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

Join the conversation

or to participate.