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NEWS
Smalls Take The Ball From Big Tech

Rotation remains the name of the game as rate-cut hopes push investors and traders into small-caps and other rate-sensitive areas of the market. Large caps were not totally left out, as sectors like financials made new all-time highs as major players reported earnings. Let’s see what else you missed. 👀

Today's issue covers M&A activity from the day, Goldman jumping as financials pump, and Celsius struggling amid demand concerns. 📰

Here's today's heat map:

6 of 11 sectors closed green. Energy (+1.51%) led, & utilities (-2.43%) lagged. 💚

Fed Chairman Jerome Powell indicated that the Fed won’t wait until inflation hits 2% before cutting interest rates, saying that would mean the Fed has “probably waited too long.” He reiterated that he’s looking for “greater confidence” that inflation will return to the 2% level before acting. 🔻

Trump-related stocks like Trump Media & Technology, Phunware, Rumble, and more jumped following this weekend’s failed assassination attempt. Additionally, he officially announced J.D. Vance as his VP running mate. 📈

Cryptocurrencies and their related stocks surged as the market continues to increase its odds of a pro-crypto candidate (Trump) winning the election. Firearm manufacturers like Sturm, Ruger & Company, and Smith & Wesson also rose. ₿

Tesla popped and dropped after CEO Elon Musk signaled that the automaker’s August robotaxi event would need to be delayed, with Bloomberg suggesting October as the next probable date. 🗓️

SolarEdge Technologies fell another 16% after announcing plans to lay off 400 employees amid declining revenues, pulling the sector lower too. 🪫

Apple shares rose again after Loop Capital upgraded the consumer tech giant to a buy rating, citing upcoming and future artificial intelligence integrations. Reports also indicated sales in India grew 33% YoY during the March quarter. 🍏

Other active symbols: $DJT (+31.37%), $PHUN (+0.94%), $GME (+3.65%), $MAXN (-4.42%), $SOFI (+5.17%), and $BTC.X (+5.90%). 🔥

Here are the closing prices: 

M&A
Just Another M&A Monday

The deal news of the day starts with a deal that’s NOT happening. 🙃

Struggling retailer Macy’s shares plummeted 12% after ending takeover talks with Arkhouse and Brigade, citing financing concerns and a low valuation.

Management said that the investment firms delivered a “check-in” letter one day after the June 25th deadline to express interest in acquiring the entire company for $24.80 per share in cash. That valuation was within a range the board had previously indicated was “not compelling” and their proposal offered no long-term vision. 👎

Instead, the investment firms are looking to monetize Macy’s real estate assets, leaving its core business in shambles and threatening its ability to survive as a retail operation.

Macy’s has decided instead to focus on its turnaround plan, which includes closing 150 Macy’s stores and upgrading its remaining 350 locations. It’ll pivot to more luxury sales, add more salespeople to stores to help drive demand, and keep costs low by focusing on small-format locations.

Investors remain skeptical about management’s ability to execute this vision, so shares plunged as the “easy money” was removed from the table. 😐

Meanwhile, Alphabet is close to closing its largest startup acquisition ever, $23 billion for cybersecurity firm Wiz. The news comes shortly after reports that it was no longer considering a $25 billion acquisition of marketing software company Hubspot. 🤑

The deal would be double the size of Motorola Mobility's acquisition of $12.50 billion over a decade ago and add to its cybersecurity push just two years after it acquired Mandiant for $5.40 billion. The deal is weeks away from completion, with regulatory scrutiny also anticipated.

Lastly, mining stocks are making moves while the going is good. Cleveland Cliffs is buying Canada’s Stelco for $2.50 billion in cash and stock. The deal will expand Cliffs’ steelmaking footprint and double its exposure to the flat-rolled spot market. ⚒️

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