Investor's Paradise

For our beach investors… drink a Piña Colada and get paid.

These are the best rates you can find in the fixed-income markets:

• CDs (New Issues): 5.30% (1 year)

• U.S. Treasury: 5.31% (6 months)

• U.S. Treasury Zeros: 5.01% (6 months)

• Agency/GSE: 5.40% (2 years)

• Corporate (Aaa/AAA): 5.20% (10 years)

• Corporate (Aa/AA): 5.45% (6 months)

• Corporate (A/A): 7.54% (10 years)

• Corporate (Baa/BBB): 16.24% (3 months)

• Municipal (Aaa/AAA): 4.27% (20 years)

• Municipal (Aa/AA): 4.79% (20 years)

• Municipal (A/A): 4.50% (3 months)

• Taxable Municipal: 5.88% (30 years)

For our street investors… face the wall with sentiment analysi/s and adjust your trading for Today (May 19th, 2023):

SPY: There's generally a positive tone in the market today, pointing to a potential uptick in the S&P 500 (SPY). This is primarily due to the news about investors having debt hopes, the markets rallying, and global equity funds posting outflows for the fifth week in a row. This may indicate an inflow of funds to the US markets, which could increase stock prices, leading to a rise in the SPY.

Significant News:

• Global: There is optimism about a potential resolution of the debt crisis. This may boost overall market sentiment and decrease market volatility.

• UAE Markets: They have extended their weekly loss, which might drive more investments into the US stock market.

• Tech: Technology stocks may experience some pressure, particularly if a debt-ceiling deal becomes likely, as this could affect the rally in tech stocks.

• Automotive: Volkswagen's sell-off of its Russia operations could have some impact on related sectors, given the size of the company and its importance in the automotive industry.

Tickers to Watch:

• CTLT (Catalent): The stock is down after a reduction in revenue and income outlook. It could experience more downward pressure today.

• DE (Deere & Company): Given its strong earnings report and raised outlook, this stock might see positive movement.

• FL (Foot Locker): After missing Q1 expectations and reducing outlook, the stock is expected to be negatively impacted.

• GSIT (GSI Technology): This stock is likely to rise as it has seen a 5.1% increase in pre-market trading.

Economic Events:

• Fed Action: There is news that the markets might be underestimating the Fed's next move. This could bring about volatility if the Fed decides to act more aggressively than expected.

• US Debt Deal: Continued progress on this front might ease market concerns, reducing volatility and potentially bolstering stocks.

Please remember that this advice should be used as a guide, and it is important to do your own research before making any financial decisions.

Today’s earning releases. What to expect?

1. CI&T Inc. (CINT): The news highlights a recent Q1 earnings report showcasing solid results and a substantial 33.9% Q/Q sales growth. However, this is weighed against a significant EPS Q/Q drop of -35.2%. Given the mixed financials and the fact that the stock has lost 72% over the past year, the sentiment appears negative. This might put pressure on the stock and could contribute to volatility in the technology sector.

2. Catalent, Inc. (CTLT): The sentiment is significantly negative. The company has recently cut its annual revenue forecast due to operational challenges and delayed the publication of its quarterly results. This has already caused downward pressure on the stock. Such news can raise concerns about the healthcare sector's stability, potentially affecting the S&P500 (SPY) and increasing the VIX.

3. Deere & Company (DE): Deere has a very positive sentiment. It reported Q2 earnings and revenue surpassing estimates and has raised its annual profit outlook due to strong equipment demand and improving supply chain conditions. This could boost confidence in the industrial sector and contribute positively to the SPY, while likely reducing the VIX.

4. Foot Locker, Inc. (FL): The sentiment for Foot Locker is quite negative. The company has drastically reduced its annual forecast due to weak demand and heavy discounting. This could negatively impact the retail sector and increase market volatility, contributing negatively to the SPY and increasing the VIX.

5. RBC Bearings Incorporated (RBC): The sentiment appears to be neutral to slightly positive. The company announced its fiscal 2023 fourth-quarter results, but the actual content is not given in the news provided. The massive Q/Q EPS growth of 677.3% is a positive signal, yet the high P/E ratio might concern some investors. More details would help determine the potential market impact.

Note: This is not financial advice but an analysis based on the data provided. Investors should do their own research before making any investment decisions.