If Only AI Meant “Actually Interesting”

Apple's lackluster event, the S&P index shakeup, and more from the day.

NEWS
If Only AI Meant “Actually Interesting”

Apple’s event failed to stun shareholders, while semiconductor stocks hit new highs as Nvidia split its shares. The major indexes began the week cautiously, closing slightly positive as defensive sectors like utilities and real estate saw buying. Let’s see what else you missed. 👀

Today's issue covers Apple’s WWDC event, the S&P index shakeup, and more from the day. 📰

Here's today's heat map:

8 of 11 sectors closed green. Utilities (+1.29%) led, & financials (-0.39%) lagged. 💚

Southwest Airlines rose 7% on news that activist Elliott Management has acquired a $1.90 billion stake and is pushing for leadership changes. ✈️

Krispy Kreme shares rebounded 6% after the company announced four new Doughnut Dot flavors, hoping to better compete with Dunkin’. 🍩

Cognizant Technologies jumped 2% on the news that it will acquire digital engineering firm Belcan for $1.30 billion in cash and stock, expanding its footprint in aerospace, defense, space, and autos. 💰

Abbott Labs was flat despite news that the U.S. Food & Drug Administration (FDA) approved two new over-the-counter continuous glucose monitors. 👍

GameStop shares continued to slide as the company’s 75 million share offering and lack of clarity from Roaring Kitty weighed on them. 😟

And several stocks jumped following analyst upgrades, including: ReNew Energy Global (+5%), Planet Fitness (+5%), and DraftKings (+3%). 🔺

Other active symbols: $JMIA (+17.07%), $CELH (-9.60%), $LPA (-27.55%), $HUDA (+11.74%), $SOUN (+2.58%), and $NVAX (-11.91%). 🔥

Here are the closing prices: 

S&P 500

5,361

+0.26%

Nasdaq

17,193

+0.35%

Russell 2000

2,032

+0.25%

Dow Jones

38,868

+0.18%

EARNINGS
Apple Awaits A Catalyst That’s Not A Calculator

Apple’s stock price has been pretty lackluster this year as its tech peers push onto new highs; it’s been waiting for its next catalyst. That’s why coming into today’s Worldwide Developers Conference (WWDC), hopes were high that it would reveal a plan for reigniting revenue growth via a “new frontier.” 🔮

And instead, we got a calculator app. 🤣

Ok, we’re being a bit facetious; here’s an actual list of announcements.

Obviously, the artificial intelligence (AI) segment was the most highly anticipated, but whether Apple delivered remains debatable.

Its announcement centered on Apple Intelligence, whose generative AI models will be available across iOS, iPadOS, and macOS. Some of its touted capabilities include context-driven notifications, writing improvements, image generation, cross-application tasking, focus on personal context, and private cloud computing. 🤖

Given the concerns around data and AI models, executives said privacy is a top priority for Apple, “extending the privacy and security of your iPhone into the cloud.”

That preceded a partnership announcement with OpenAI that will integrate ChatGPT with Siri. However, given OpenAI’s recent issues around data and privacy, the news drew some pushback from a familiar critic…Elon Musk.

Despite that, the Stocktwits community pushed sentiment into “extremely bullish” territory as they look past the headlines and towards these announcements’ longer-term potential. As for technical analysts, Apple shares are stuck below resistance in the 195-200 region and lack a clear catalyst to break through. As always, time will tell which side is right. 🤷

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STOCKS
S&P Announces Latest Index Shakeup

It’s that time of the quarter again when the S&P 500 index kicks out the losers and adds the latest market darlings.

As of June 24th, KKR, CrowdStrike, and GoDaddy will replace Robert Half, Comerica, and Illumina in the index. As the 3-year total return chart below shows, the performance difference has been stark and persistent. 😮

The three stocks being added saw jumps today as market participants attempted to front-run the indexes for a short-term gain. 💸

Meanwhile, Dell Technologies and Palantir Technologies fell on the news they would not be included, despite their strong recent performance. Maybe next quarter, guys. ☹️

P.S. You can check out the full list of changes for the other S&P indexes here.

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Bullets From The Day

 Shipping could be stalled in the U.S. as the largest ports union suspends labor talks. Talks between the union and management for East Coast and Gulf Coast ports have broken down, as the International Longshoremen’s Association alleges that Maersk is using automation to displace workers. This is notable since East Coast ports have historically worked through labor issues, with the last strike occurring in 1977. However, port labor battles have intensified since the pandemic, particularly regarding inflation and automation. More from CNBC.

☢️ Bill Gates moves ahead with Wyoming nuclear project. The Microsoft co-founder and chairman of TerraPower was in Wyoming today to break ground on its advanced nuclear reactor that will use sodium, not water, for cooling. With that said, it’s awaiting permits from the Nuclear Regulatory Commission and is breaking ground to ready the site for construction as they expect the approval to come eventually. AP News has more.

🧑‍⚖️ U.S. appeals court upholds California gig work law. The court rejected a bid by Uber and its subsidiary, Postmates, to revive a challenge to the California law that could force the companies to treat drivers as employers instead of independent contractors. The fate of Prop 22 is being determined in a separate case at the state’s top court, where a labor union and multiple drivers argue the ballot measure is unconstitutional. More from Reuters.

📝 Trump Media falls after releasing re-audited financial statements. The company submitted an updated inspection of its finances by a newly hired public accounting firm since its last auditor was charged with fraud. Semple, Marchal & Cooper, LLP will be replacing BF Borgers CPA after it was charged by the Securities and Exchange Commission (SEC) for massive fraud impacting more than 1,500 filings it was involved in. CNBC has more.

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