Even as Nvidia’s short-term trend unravels, stocks were able to close out the shortened holiday week in the green. Traders continue to debate whether we’ll see a meaningful correction or if this pullback in tech is the start of a much-needed rotation into other market areas. Let’s see what you missed. 👀

Today's issue covers CarMax’s profits falling 33%, AMC’s latest financing scheme, and which “boring” stocks are breaking out. 📰

Here's today's heat map:

6 of 11 sectors closed green. Consumer discretionary (+0.84%) led, & utilities (-0.59%) lagged. 💚

The median price of an existing home sale in the U.S. was $419,300 during May, up 5.8% YoY to a new all-time high. Still, low inventories and unaffordability have caused the number of homes sold to reach a 30-year low. 🏘️

The S&P Global PMI data showed U.S. business activity continued to grow, with the composite index hitting a 26-month high. Meanwhile, Europe’s composite index fell, with France’s election uncertainty weighing on activity. 🏭

Meanwhile, the Conference Board-leading economic index fell again in May, continuing its two-year downtrend after briefly turning positive in February. While the index doesn’t signal a recession ahead, it points toward slower growth over the coming six months. 🔻

Hertz Global jumped 16% after increasing its planned bond offering from $750 to $1 billion, giving it more funds to refresh its vehicle fleet. 🤑

Boeing supplier Spirit AeroSystems rose another 6% on news that the aerospace and defense giant is nearing a deal to purchase it. ✈️

Semiconductor stocks slumped despite proponents like SoftBank CEO Masayoshi Son talking up the sector. Son said artificial intelligence (AI) that is 10,000 times smarter than humans will be here in 10 years. 🤖

And Zealand Pharma shares soared by 18% after showing positive weight loss drugs from its drug contender, offering similar weight loss results and a “better patient experience” than GLP-1RA-based treatments. 💊

Other active symbols: $GME (-6.49%), $IBRX (+11.69%), $OXY (-2.43%), $CLOV (+21.36%), $CDZI (+2.03%), and $FUFU (+31.21%). 🔥

Here are the closing prices: 

As outlined in the section above, the housing market’s affordability crisis is weighing on Americans heavily. However, used car retailers like CarMax continue to signal similar issues in the automobile market. ⚠️

The used car retailer’s adjusted earnings of $0.97 per share topped the $0.95 expected, but revenues of $7.11 billion were $0.05 billion shy of analyst estimates. Retail used-unit sales fell 3.10% YoY, with average retail selling prices falling 2.70% ($700) per unit. 🔻

Used car prices continue to fall, down about 9% YoY and 25% from their late 2021 peak. However, higher financing costs and low inventory are keeping a lid on demand. Hmmm, that sounds a lot like the housing market. 🤔

CEO Bill Nash said he was encouraged by trends during the first quarter, but ongoing headwinds of widespread inflationary pressures, higher interest rates, and tightened lending standards remain.

As a result, the company remains focused on preserving profitability through operational improvements, positioning itself as a leader for the eventual turnaround in the used car market.

Speaking of turnaround, CarMax shares have been trying to carve out a bottom over the last few months. With Stocktwits sentiment pushing into “extremely bullish” territory, we’ll have to see if today’s news was enough of a catalyst to get the stock back on the right track. 🐂

Stocktoberfest is back with an intimate event for executives, influencers, and the most active investors in financial markets. 🤝

Network with industry thought leaders like Howard Lindzon, Michael Batnick, Brian Shannon, Michael Parekh, and many more during the 2-day palooza.

Space is going quickly so grab your seat now, and we'll see you in beautiful Coronado, CA! 😎

While its recent short squeeze allowed AMC Entertainment to raise about $250 million in equity capital, it’s not nearly enough to put the company back in a solid financial position. ☹️

As a result, it's reportedly holding confidential talks with some of its lenders about ways to reduce its $4.50 billion of long-term debt and/or extend near-term maturities. 📝

With over $2.80 billion of notes maturing in 2026 and its operations still not producing a consistent profit, it will need more capital somewhere. However, CEO Adam Aron said during the company’s most recent earnings call that he’s “hopeful that AMC can refinance our debt at attractive terms.”

While this may give the company more time to resolve its fundamental issues, the fact that attendance remains significantly below pre-pandemic levels continues to weigh on its core business.

As the chart below of annual revenues and adjusted EBITDA shows, revenues have stalled below their pre-pandemic peak, and adjusted EBITDA is less than half of what it was before the company piled on significant debt. 😬

Like other “meme stocks,” management has failed to develop a clear plan for closing the gap between current operations and profitability.

As a result, the “meme stock” surge has slowly been wearing off here, with Stocktwits sentiment reaching a “post-Roaring Kitty” tweet low and entering bearish territory (39/100). 🧸

Although they’re not the “growth” parts of the stock market, certain names in areas like consumer staples, utilities, and telecom are seeing meaningful breakouts these days.

Stocktwits user @SilverEagle pointed to Proctor & Gamble’s highest weekly close ever today, marking the potential start of a longer-term breakout from its 2.5-year base. We’ll have to wait and see if it sticks the landing, but for right now, soap is sexy again. 🤩

Another user highlighted boring ol’ AT&T shares closing at 14-month highs. You can check it out in today’s issue of Chart Art, linked below.

If you like this chart and commentary, you’ll love our “Chart Art” newsletter. We’ll deliver you the best trade ideas and analysis from the Stocktwits community every evening by 8 pm ET.

And if you need another reason to join, you’ll receive a welcome email with a list of the top Stocktwits chartists to follow for real-time posts like this.

🕹️ Retro game lovers rejoice as the first iPhone game streaming service launches next week. Antstream will launch in the App Store on June 27th, with over 1,300 retro titles from the Atari, Amiga, and Nintendo consoles. The best part is that it’s all legal now, thanks to the European Union’s Digital Markets Act (DMA), which caused Apple to finally change its policy. The Verge has more.

👍 Cruise clears another hurdle in getting its robotaxis back on the roads. General Motors’ self-driving subsidiary has agreed to pay a $112,500 fine regarding the failed disclosure of information related to last year’s accident involving one of its vehicles. The settlement with the California Public Utilities Commission (CPUC) allows it to avoid litigation and puts it in a closer position to restart operations in California. More from TechCrunch.

📝 Regulators target big banks over their living will plans. The Federal Reserve and the Federal Deposit Insurance Corp. said the living wills Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America filed last year were insufficient. Regulators identified issues with how the banks planned to unwind their massive derivatives portfolios, which they will need to address in the next wave of living will submissions due during 2025. CNBC has more.

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🤯 Bugatti's new $4 million Tourbillon has the wildest steering wheel ever

😦 This San Francisco home is priced at a low $488K, but there's a catch

🚬 FDA sign-off on menthol e-cigarettes ‘flies in the face of public health,’ anti-tobacco groups say

🚗 Car dealerships are being disrupted by a multi-day outage after cyberattacks on software supplier

🕵️ Trends With No Friends — find stocks with high relative strength and a low social following

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