NEWS
Apple Puts The Haters In Their Place

Consumer tech giant Apple put the broader market on its back today, with its 7% gain contributing 42 bps of performance to the S&P 500 and 54 bps to the Nasdaq 100. Nearly every other sector closed in negative territory, with financials leading lower ahead of tomorrow’s inflation data and Fed meeting. Let’s see what else you missed. 👀

Today's issue covers analysts outlining Apple’s AI supercycle, Oracle’s AI earnings rescue, and more from the day. 📰

Here's today's heat map:

2 of 11 sectors closed green. Technology (+1.86%) led, & financials (-1.14%) lagged. 💚

The World Bank raised its 2024 global growth forecast from 2.40% to 2.60%, citing U.S. economic strength as a factor to partially offset many of the longer-term issues facing the world’s largest economies. 🔺

Meanwhile, France’s stock and bond prices continued to tumble over election uncertainty. President Emmanuel Macron called for parliamentary elections over the weekend following the far-right Rassemblement National Party's wins in the European Union elections. 😨

General Motors’ shares continued their recent buyback after the board of directors authorized another $6 billion stock repurchase authorization, adding to the $10 billion announced in November 2023 and finishing up this month. It also trimmed its 2024 EV forecast due to slow demand. 🤑

Avocado distributor Calavo Growers rose 9% after its second-quarter earnings and revenues topped expectations. Its CEO cited improving prices and margins in its core avocado business and “tomato” portfolio. 🥑

DXC Technology shares were volatile on reports that Apollo Global and Kyndryl Holdings are attempting to acquire the company, offering $22-$25 per share. 💰

FMC Corp. is the latest company to bring back its former CEO to help revive a struggling stock price. The agricultural sciences company reiterated its second-quarter forecasts while announcing the immediate transition. 👨‍💼

And Terminix-parent Rentokil rose 7% on news that Nelson Peltz’s Trian Partners has taken a significant stake in the company and is looking to engage management and the board to drive shareholder value. 🐜

Other active symbols: $JMIA (+2.62%), $DJT (-6.61%), $GME (+22.80%), $AMC (+10.83%), $KITT (+16.93%), & $AISP (+47.13%). 🔥

Here are the closing prices: 

STOCKS
How About Them Apples?

In less than 24 hours, Apple’s WWDC event has gone from the latest meme to the core reason Apple is set to reclaim its spot atop U.S. big tech giants. 👑

While consumers are still waiting to hear how AI will meaningfully impact their experience, analysts are ecstatic about its business potential.

D.A. David analyst Gil Luria upgraded the stock from neutral to buy, raising his price target from $200 to $230. He noted that Apple’s new backward-compatible AI features will help drive a much-needed iPhone upgrade cycle. 🛍️

Since only 5% of the company’s installed base is iPhone 15 Pro and Pro Max phones, the vast majority of users who want to access these features will have to pay up to get the latest features.

Other fundamental analysts agreed with the sentiment and believe AI will be the key driver for the iPhone’s next “supercycle.” As for technical analysts, today’s breakout to new all-time highs is enough to put the stock back in play. 🤩

While investors and traders may express their skepticism about artificial intelligence (AI) and its impact on a company’s business, they are still willing to pay a premium to gain exposure to the space. 💵

Whether in the public markets via Nvidia, Microsoft, Apple, and others…or in the private markets, where Paris-based AI startup Mistral AI raised another $640 million at a $6 billion valuation.

What people say and what they do is often different…and as we know, it’s easier to be wrong with the crowd (betting on AI) than wrong betting against it. And right now, the crowd is betting on AI being a game-changer. 🤷

Meanwhile, the electric vehicle space continues to struggle from a price and business fundamentals perspective. General Motors cut its 2024 EV production outlook on weaker-than-expected demand, weighing further on the space. ✂️

As for industry leader Tesla, shares broke downward from their recent consolidation as debate over CEO Elon Musk’s pay package rages on. Stocktwits community sentiment poked its head into bullish territory last week before retreating back into its neutral to bearish range. 🪫