Market indicators reveal promising signs, with an increase in durable goods orders, new home sales, and consumer confidence... [The Daily Peel... ](=) June 28, 2023 | Peel #490 Silver banana goes to... [Everbloom. ](=) In this issue of the Peel: - Market indicators reveal promising signs, with an increase in durable goods orders, new home sales, and consumer confidence. The macroeconomic climate reflects buoyant consumer spending and robust business investments despite a 5.25% interest rate, signaling resilience in the US economy.
- Delta Airlines and Meta Platforms have shown remarkable performance, whereas Lordstown Motors and Regeneron struggle.
- The emerging psychedelic drugs industry is set for growth, with the potential market expected to double by 2029 to $12bn, despite current legal challenges. Market Snapshot Happy Wednesday, apes. Even if you werenât feeling great driving home from that dreaded Tuesday shift, your portfolio almost definitely was. Yeah, it was Tuesday, but at least your stocks were upâthereâs always a bright side, right? And the only way to describe the âsideâ of the equities trade yesterday was green. Markets ripped higher just about continuously throughout the session in the US. Only healthcare had a down day among the S&P sectors, losing just 0.2%, while riskier sectors like tech and discretionaries ripped 2% or higher. Meanwhile, treasuries had a far more muted day, just what we want to hear. The 2- and 10-year yields both saw moderate dips before spiking back up late in the session. The US Dollar had a similarly boring performance yesterday, but we promise thatâs not what youâll find below so⦠Letâs get into it. Revolutionizing the Creator Economy [image]() According to analysts at Goldman Sachs, the creator economy is poised for significant growth, with an anticipated increase of 345% reaching a value of $480bn by 2027. Everbloom provides a unique opportunity to engage with this industry, enabling you to invest in content creators and thereby be at the forefront of this paradigm shift. Everbloom allows you to invest in creators like startups. By using proprietary data models and detailed interview processes they identify the talent that can unlock new growth with additional funding. Once they make an investment in a creator themselves, they fractionalize the investment and offer parts to other investors on their platform. They open the opportunity to invest alongside them and you receive a quarterly payout based on revenue shares along with other perks! The creators can then leverage their growth potential through the expertise and services provided by Everbloom. Notably, Mario Joos, MrBeastâs retention director, serves as an advisor and mentor to Everbloomâs accelerator program. Co-founders Lukas and Brendan boast a wide range of accomplishments, including serial entrepreneurship, experience at Goldman Sachs, and recognition as Shark Tank alumni who secured a deal from Mark Cuban. These achievements have enabled them to raise over $3mn from venture capital investors, with key backers including Dapper Labs, Accomplice VC , Lattice Capital, and the creators of Candy Crush, King [Discover]() high-potential creators and [learn more](=) about this innovative new platform Banana Bits - How many export restrictions can there even be on chips and AI? One correct answer: [More](=)
- While weâre on the subject, it looks like global [confidence in the US economy]() is coming back harder than beers on the beach season
- Weâre really riding the US today already, but how could we not be as we begin to learn that our sh*tty inflation levels have been [less sh*tty on average]() than everyone elseâs? A win is a win
- Retailers are [going to war]() with a common enemy that you very well may be one of: shoplifters Macro Monkey Says Hot, Hot, Hot Everyone on Earth played the riveting game of âHot or Notâ at least once between the ages of 12-16 (donât even act like you didnât). But yesterday, the macroeconomic version of that game gave its own spin: Hot or Hot. After a slow start to the week, we had to back up the truck to load all the fresh macro data Tuesday gave us. I know youâre dying for it, so here are the headline numbers: - New Durable Goods orders jumped 1.7%, rising for a 3rd month straight
- New Home Sales rose 12.2% monthly and 20.0% annually
- Consumer Confidence jumped to a 17-month high of 109.7 All of those figures came in higher than economist expectations for May. Needless to say, dropping all three of these at once was like pouring out lines in front of Jesse Pinkmanâyou know theyâre gonna go crazy. And thatâs just what they did. After a recent few-day pullback, equities regained their rally yesterday on the back of all this news, as you saw above. Each one of these topics could very well get its own Macro Monkey, so letâs not waste any more time. What the hell does this mean? "... is a clear sign that businesses are confident to continue to invest ..." Well, starting with the start, durable goods orders 8:30 am drop got the early hours nice and pre-heated. Although US manufacturing remains outside of pre-pandemic trends, 3 straight months of rising new orders for durable goods is a clear sign that businesses are confident to continue to invest heavily in their short and long-term future. Itâs a vote of confidence from businesses that they, at the very least, donât expect even more sh*t to hit the fan. Oh, and by the way, economists had been expecting a 0.9% decline for the May period. That said, we know things that economists (along with everyone else) tend to get things like this wrong. For instance, no one expected a month in which weâd see the first annual decline in the S&P Case-Schiller home price index in over 11 years, contemporaneous with a massive jump in demand for new homes. Just take a look at this spike: [image] Somethingâs different in the water in 2023. Existing homes have been having a much tougher time rebounding in the face of rising rates and what-have-been rising prices, but it seems like weâre getting to the point where soon-to-be homebuyers are saying, âIf Iâm gonna buy a house, itâs gonna be expensive regardless, so might as well get the nicest, newest one I can.â "To the Average Joe, things are looking (mostly) good." With housing putting the team on its back, itâs constructive (no pun intended) to see prices fall alongside still rising demand in a sign of housing market normalization. And of course, last but not least, we just have to know whatâs on the consumersâ minds. These days, itâs a 6% inflation rate over the year (3x the 2% target and 1.33x last monthâs CPI), and about half the population recognizes job availability in the labor market as abundant. To the Average Joe, things are looking (mostly) good. As we know, Average Joes tend to know somehow even less than people like economists do. Nevertheless, these three readings give us one clearly defined fact about the US economy: businesses and consumers alike love spending money, even with 5.25% rates. Let the resilience reign! What's Ripe Delta Airlines (DAL) â 6.84% â - Comedian John Mulaney once famously quipped that Delta Airlines is âwhere life is a f*cking nightmare.â He definitely wasnât wrong, but that doesnât seem to spot us from handing them cash hand over fist.
- Delta put out new guidance for its fiscal year on Tuesday. The airline upped the ante a bit, driving shares higher as the firm now expects FYâ23 earnings to reach the upper bound of a previously guided for range now as a base case. âOne small shift in expectations can lead to giant leaps in share price,â thatâs how the quote goes, right?
- Now expecting $2.25-$2.50/sh for Q2 and $6/sh for the full year, Delta says the driver of this bump in expectations is simply the fact that consumers canât seem to spend enough time in the sky. Higher demand for travel also comes with travelers willing to pay up, creating a win-win Iâm personally jealous of. Meta Platforms (META) â 3.08% â - Was buying $META at $88.09/sh the trade of the century? Citi analysts sure seem to think so, reiterating their Buy rating and raising the firmâs PT to $360.
- The stock is already up well over 125% YTD and almost 225% from recent lows, but thatâs not enough for analysts at Citi. They say that shares can continue to rip higher, and surprisingly enough, the primary driver is the feature you make the most of.
- Citi expects Reels to take off in a similar-seeming way that IG stories became on par with Snap stories. If Reels can do half of that for TikTok, Mark Zuckerberg may as well just be crowned king of the world. What's Rotten Lordstown Motors (RIDE) â 17.18% â - It mightâve taken a bit longer than expected, but âEV startups declaring bankruptcyâ was definitely on the bingo card over the last few years. Finally, their number has been called.
- At least, itâs been called for one of them, Lordstown Motors. Founded in 2018 with a ~$50mn market cap at last weekâs close and a cumulative total of $0.00 of revenue earned over those 5 years in business, we canât think of a single reason how this couldâve happened.
- Or, maybe investors facing a nearly 5% hurdle rate via the 2yr yield realized that setting money on fire isnât a great business model. But theyâre not going down alone, deciding to pull out a lawsuit against Foxconn at the buzzer. Stay tuned. Regeneron (REGN) â 8.71% â - Dammit, alright, everyone put on their science caps. Time to go nerd for a minute.
- Big dawg of biotech Regeneron saw shares eat dirt on the back of a decisively negative finger-wave from the FDA. Basically, Regeneron was seeking designation to sell an increased dosage of a wildly popular wet, age-related macular degeneration drug, Eylea.
- Needless to say, they did not get that approval. Apparently, markets had been pricing it in for a while now, but this news came in solely to crush all that hope.
- Believe it or not, but that word salad ending the two-above paragraph is actually the leading cause of elderly blindness. So, we may have some frustrated, visually impaired seniors out there, but who caresâitâs not like they could even read this news anyway. Thought Banana Change Your Mind No, like, literally, do you want a different brain? Because thatâs effectively what psychedelic drugs can offer. Now, whether that âdifferentâ is better or worse is up to you. But one thing we already know is that Silicon Valley and soon-to-be Wall Street (probably) are leaning hard into the âbetter camp.â Much of which is for obvious reasons. Despite being used for literally thousands of years, including involvement during religious ceremonies in ancient Greece and Rome for a longer period of time than Christianity has existed, we treat them like the devil. But, in recent years, bodacious and venturesome scientists, researchers, and the like have taken to these strange plants and compounds to find out what the actual f*ck is going on. "Well, believe it or not, you can already get industry exposure through a plethora of names ..." As the WSJ points out, a lot of big-name CEOs ingest some dosage of psychedelic drugs on a somewhat-regular basis, even the [biggest name of all](=). According to current projections, the size of the psychedelic drug industry is expected to more than double between 2022 and 2029, reaching values as high as $12bn. You might be wondering how the hell thatâs legal, given the staunch, Nixonian-type hatred towards psychedelics in Washington. Well, believe it or not, you can already get industry exposure through a plethora of names like: - ATAI Life Sciences
- Compass Pathways
- MindMedicine
- AdvisorShares Psychedelic ETF Yup, thereâs enough of them to make a damn ETF already. Despite the illegality, investor excitement around the sector is already sprouting, and for obvious reasons. Human beings love to alter their state of consciousness, and what better way to do so than taking the same stuff the Beatles took to write âYellow Submarine.â "Despite the illegality, investor excitement around the sector is already sprouting ... Human beings love to alter their state of consciousness ..." Like how we always cheer on smoking weed while buying weed stocks (aka, both you and your portfolio getting high), now weâll have to take that to a new level. Letâs trip while our portfolio goes on a tripâ¦to the moon! (sorry for that, I tried). The big question: Will psychedelic stocks follow a similar, legislatively-driven boom-bust cycle as cannabis stocks? Would Americans ever partake in these substances on a broad scale? How does the legality of the sector look by 2030 or even 2050? Banana Brain Teaser Yesterday â Mo was nine years old when he was taken from his home to a soft, dark place. A couple hours later, a fairy came and took him away, and he was never seen again. What happened? Mo was a molar. He fell out and was put under a pillow until the tooth fairy came and took him away. Today â What do you use from your head to your toes and the more it works the thinner it grows? Shoot us your guesses at vyomesh@wallstreetoasis.com with the subject line âBanana Brain Teaserâ. Wise Investor Says âInvesting is the intersection of economics and psychology.â â Seth Klarman How would you rate todayâs Peel? [All the bananas](=) [Decent](=) [Rotten AF](=) Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? [Be smart like your friend](. [ADVERTISE](=) // [WSO ALPHA]() // [COURSES]() // [LEGAL]( Don't want The Daily Peel? [Unsubscribe here](). Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. (aka "Wall Street Oasis")
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