Where US inflation is and where it isn’t 👀
Source: Yahoo Finance, Evan
The largest US banks are set to earn higher profits than expected this year
As the Federal Reserve looks likely to make only modest cuts to benchmark interest rates. Source: FT
CLS declines delaying FX cutoff as US stock changes loom
CLS Group, the largest currency settlement system, said on Tuesday it will not change its cut-off time for payment instructions for foreign exchange trades, dealing a blow to foreign asset managers hoping for some reprieve from a new U.S. rule putting them at risk of transaction failure. Beginning May 28, the U.S. Securities and Exchange Commission requires investors start settling U.S. equity transactions one day after the trade, or T+1, instead of the current two days. source : investing
US Small-Business Optimism Falls to a More Than 11-Year Low
source : Bloomberg
US stocks are expensive. That is true, but it is mainly due to tech.
If you look around you'll notice that areas like the cyclicals (energy, financials, materials, and industrials) are all fairly valued and in some cases outright cheap. Source: Carson Investment Research
Here’s what Wall Street is expecting for US CPI today
Source: WSJ
US breakeven inflation rates rising
Source: Win Smart; Goldman Sachs, Bloomberg
US smallcap stocks now account for less than 4% of the entire US equity market.
They now reflect the same percentage of the market as 1930 before the Great Depression. As AI-hype as spreads, small cap stocks have significantly underperformed large caps. Currently, more than one-third of the Russell 2000 index has negative earnings, down from ~45% in 2020. Small-cap stocks are now hated more than ever. Source: The Kobeissi Letter
