Unpacking $SPY Optimism and $VIX Uncertainty

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

• CDs (New Issues): 5.30% (1-year term)

• U.S. Treasury Bonds: 5.37% (6-month term)

• U.S. Treasury Zeros: 5.03% (9-month term)

• Agency/GSE: 5.41% (2-year term)

• Corporate (Aaa/AAA): 4.93% (9-month term)

• Corporate (Aa/AA): 5.34% (1-year term)

• Corporate (A/A): 7.07% (9-month term)

• Corporate (Baa/BBB): 14.27% (3-month term)

• Municipal (Aaa/AAA): 4.30% (10-year term)

• Municipal (Aa/AA): 4.62% (30-year term)

• Municipal (A/A): 4.97% (30-year term)

• Taxable Municipal: 5.93% (30-year term)

For our street investors… face the wall with AI sentiment analysis and adjust your trading for Today (May 26, 2023):

Negative sentiment for US dollar, reported decline against major trading partners, data releases for April personal income, spending, and trade report in focus. Sentiment Index update and GDPNowcast measures from Atlanta and St. Louis Fed expected. No Fed officials appearances scheduled. Positive reports on foreign exchange activity.

Positive sentiment for exchange-traded funds and equity futures due to progress in debt talks. SPDR S&P 500 ETF Trust (SPY) 0.2% higher in premarket, Invesco QQQ Trust (QQQ) increased by 0.4%. S&P Index futures up by 0.3%. Anticipation for key inflation data, Personal Consumer Expenditures core index, Federal Reserve's preferred inflation gauge. Bitcoin slightly down. Healthcare sector on a positive trend.

Modest gains for US equity futures as a result of upcoming inflation metric and progress on debt ceiling. Dow Jones Industrial Average futures gained 0.2%, S&P 500 futures increased 0.3%, Nasdaq futures rose 0.5%. High expectations from Federal Reserve's preferred inflation metric, the core Personal Consumption Expenditures price index.

Analysts see potential resolution for debt ceiling impasse as positive. Positive sentiment out of Nvidia's earnings and Best Buy's upbeat results. Positive sentiment could lead to broader underpinning of the market. SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.13% in premarket, while Invesco QQQ ETF(NASDAQ:QQQ) edged up 0.33%.

Conclusion: Expectations for $SPY seem positive, given the progress in debt talks and the anticipation of key inflation data. For $VIX, the volatility index, and expectations could be mixed. If inflation data comes in as expected, we might see a decrease in volatility. However, unexpected data or any twists in the debt ceiling talks could cause volatility to increase. As always, monitor market trends and news closely for any sudden shifts.

Today’s company news. Anything to keep an eye out for? This is not financial advice, just a tracker for you to go into more details. Picks are selected using #AI models:

1. Coherent and Mitsubishi Electric's collaboration: This partnership to scale the manufacturing of silicon carbide (SiC) power electronics could signal significant potential growth for both companies. Given that SiC power devices are essential to global decarbonization efforts, this alliance might be considered a strategic long-term play for investors. However, the absence of disclosed financial terms might be a cause for caution.

2. Booz Allen Hamilton's Q4 results and outlook: The company posted solid Q4 results, exceeding expectations. Revenue, headcount growth, and future earnings projections indicate a positive trajectory. However, the potential financial risk linked to a US Department of Justice probe into past accounting practices might concern some investors.

3. Intercap Equity's acquisition of E Automotive shares: Intercap Equity's further investment in E Automotive signifies confidence in the company's future performance. However, E Automotive's recent share price decline could indicate potential short-term risk.

4. Altria's acquisition of NJOY Holdings: The imminent completion of Altria's acquisition of NJOY, without further regulatory hurdles, suggests potential expansion in the e-cigarette market. This could be a good long-term play, but regulatory risks associated with the vaping industry need to be considered.

5. Amaroq Minerals' Q1 loss: Despite reporting a loss, Amaroq appears confident, citing substantial working capital and available liquidity. Their forward-looking statements about trial mining could present a long-term investment opportunity if they can achieve their goals.

6. Syneos Health's collaboration with FivepHusion and Treehill Partners: Syneos is partnering to bring a new chemotherapeutic product to market. The lack of financial terms might leave some uncertainty, but the project could be promising, given the potential need for novel chemotherapeutic solutions.

7. Unisplendour's funding plan for H3C stake purchase: Unisplendour's intent to acquire a substantial stake in H3C suggests that they see high potential value in H3C's business.

8. Sigma Lithium's first payment for Lithium shipment: This shows that it is progressing in its agreement with Yahua, which could positively affect its earnings. Given the increasing demand for lithium in various industries, this could be a good long-term investment.

9. LightInTheBox's Q1 FY23 results: The reported growth and reduced losses indicate positive performance, and the projected future net revenues suggest that this trend might continue.

10. Onfolio's AI tool for MightyDeals.com: The launch of an AI-powered search tool is an indicator of Onfolio's intent to improve customer experience and potentially increase its revenue. However, the success of this new feature and its impact on the company's bottom line remains to be seen.

Please do your own research before making any investment decisions. This information is not financial advice.

Events

Earning reports: $BAH | $KT | $PDD

Economic events:

1. Personal Income: The percentage change in U.S. personal income from the previous month. This is significant as personal income affects consumer spending, contributing to economic growth.

2. Personal Spending: This is the percentage change in U.S. personal spending from the previous month. Increased consumer spending can be a sign of economic growth.

3. PCE Prices and PCE Prices - Core: The Personal Consumption Expenditures (PCE) price index measures household goods and services price changes. The Core PCE excludes food and energy prices, which are more volatile. These indices are used to assess inflation.

4. Durable Orders: This shows the percentage change in orders for long-lasting goods. Increases suggest improved business confidence and potential future economic growth.

5. Durable Goods -ex transportation: This represents the same as Durable Orders but excludes transportation.

6. Adv. Intl. Trade in Goods: The trade balance represents the difference between exports and imports of physical goods.

7. Adv. Retail inventories and Adv. Wholesale Inventories: These are early reports on the inventory levels in the retail and wholesale sectors, which can affect future production schedules and economic growth.

8. Univ. of Michigan Consumer Sentiment - Final: The final estimate of consumer sentiment for the month. High levels of consumer confidence can boost retail sales, while low levels may indicate decreased demand.