Stocks capped off another quarter of gains, with some investors happy they chose to index, while others were left with the lackluster stocks they filled their portfolio with. The main question for the second half is whether the stocks that led so far will continue to lead or if a new group will finally emerge to lead the market higher. Let’s see what you missed. 👀

Today's issue covers debatable quarterly performance, SCOTUS kneecapping federal regulators, and more from the day. 📰

Here's today's heat map:

4 of 11 sectors closed green. Real estate (+0.81%) led, & utilities (-1.12%) lagged. 💚

Shares of Infinera soared 16% on news that Finnish telecom network equipment company Nokia will purchase it in a deal worth $2.30 billion. The acquisition will allow Nokia to compete in North America’s optical networking market, where Ciena and China’s Huawei are the major players. 📱

Kura Sushi USA’s shares plummeted 23% after its preliminary revenue figures of $63.10 million fell short of estimates. The company also lowered its full-year revenue outlook. 🍣

Synchrony Financial saw a 7% gain after Baird initiated the stock with an outperform rating. Its price target of $56 implies over 25% upside from Thursday’s closing prices. 🏦

Nike shares suffered their worst daily decline in decades because of the company’s disappointing outlook and management’s inability to communicate a clear turnaround plan for investors. 👟

Agriculture commodities came under pressure after the U.S. Department of Agriculture’s (USDA) report indicated that quarterly grain stocks were up sharply so far this year. Corn fell most as supply remained elevated following last year’s record crop. 🌽

Other active symbols: $SAVA (-34.83%), $FSLR (-9.79%), $NNE (+44.51%), $FFIE (-15.57%), $CHWY (-6.23%), and $WOOF (+13.17%). 🔥

Here are the closing prices: 

Last night’s presidential debate sparked a lot of conversation about the future of our country, economy, and stock market. Everyone has an opinion and are making sure we’re all aware of it. As for us, we will check on the market’s moves today to give us some clues about what’s changed.

Trump-linked stocks like $DJT, $PHUN, and $RUM ran ahead of the debate and into today’s opening bell but experienced selling throughout the day to close deeply red. Meanwhile, the New York Times editorial board is urging President Biden to drop out of the presidential race following his lackluster performance during the debate. 🫨

Betting markets also indicated a drop in Biden’s odds and even suggested bets being placed on a new democratic candidate being chosen. Overall, the market is pricing in increased uncertainty about the democratic party’s path forward, with or without President Biden. 😶‍🌫️

Moving onto economic data…all eyes were on the Fed’s preferred inflation metric, the core personal consumption expenditures price index (PCE).

The index rose just 0.10% MoM and 2.60% YoY during May, the lowest annual increase since March 2021 when inflation initially crossed the Fed’s 2% threshold. Headline inflation was MoM and also up 2.60% YoY as falling energy prices helped offset food gains. 🔺

Personal Income rose by 0.50% MoM, 10bps more than estimated, while consumer spending’s 0.20% increase was 10bps below consensus estimates. It’s the latest data to show that consumer spending is cooling alongside the labor market.

Housing prices remained a problem, rising 0.40% for the fourth straight month. The imbalance between housing demand and supply will continue to put upward pressure on shelter prices, something the Fed can only help by raising financing costs and weakening the economy enough to pressure moves by existing homeowners. 🏘️

Meanwhile, U.S. consumer sentiment fell less than initially anticipated during June, with respondents expecting inflation to be 3% over the next year (as well as the next 5-10 years). Inflation remains the key consumer for consumers who are anxiously waiting to see how much the economy and labor market slows in the coming quarters. 😐

As for major stock market index performance, large-cap tech helped the Nasdaq 100 and S&P 500 achieve gains. However, the other global stock market indexes that lacked tech exposure were slightly negative since other sectors’ performance lagged. 👎

Here, we can see a U.S. sector view, where technology and communications led to the upside, while defensive sectors like utilities and consumer staples also stayed positive. 😬

If you had tech exposure in your portfolio this quarter, you did pretty well. But with uncertainty around the economy, the path of interest rates, and now the presidential election, many investors are wondering how to position for the second half. So far, sticking with tech’s biggest winners has paid off, and it’s unclear what will change that going forward.

As always time will tell…🤷

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! 😎

The U.S. Supreme Court has delivered a one-two punch to regulatory overreach, dismantling the notorious Chevron deference and ending the SEC’s Judge Dredd-style in-house courts. 🔫

These rulings are a colossal win for the cryptocurrency industry and anyone sick of unelected bureaucrats running amok.

For decades, Chevron deference was the bureaucrats' trump card, allowing federal agencies to twist ambiguous laws to their advantage with minimal interference from the judiciary.

This doctrine, born from the 1984 case Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., gave agencies the kind of power that made even the most seasoned regulators salivate. 😋

But the Supreme Court had enough. In Loper Bright Enterprises et al. v. Raimondo, the justices declared that judges should actually interpret laws themselves (imagine that) rather than rubber-stamping whatever nonsense agencies cooked up. This decision reclaims the judiciary’s role in defining the law, cutting down the bloated power of regulatory agencies, and keeping them in their lane.

Chevron deference was like having an “I win” button in a game, letting agencies interpret vague rules however they pleased. This meant:

In another monumental decision, Securities and Exchange Commission v. Jarkesy et al., the Supreme Court obliterated the SEC’s creepy Judge Dredd-esque in-house court system. For too long, the SEC has been playing prosecutor, judge, and jury, handing out penalties like candy without giving defendants their constitutional right to a jury trial.

George Jarkesy and his firm, Patriot28, got slapped with a $300,000 fine for alleged securities fraud in one of these sham courts and fought back, claiming a Seventh Amendment violation. The Court sided with Jarkesy. 🥳

Chief Justice Roberts stated that when the SEC seeks civil penalties, defendants are entitled to a jury trial. He pointed out that such penalties are punitive and, historically, would have been decided by a jury in a common law court. This ruling puts an end to the SEC’s kangaroo court, ensuring that significant penalties face proper judicial review and jury trials. 🦘

As our resident crypto expert, Jonathan Morgan, pointed out, this is a major deal for many industries…but it’s especially big for the crypto market.

These Supreme Court rulings put the brakes on federal agency overreach by:

The Supreme Court’s rulings are a massive win for crypto. 👍

By clipping the wings of regulatory agencies and demanding more judicial oversight, these decisions protect the crypto sector, from unchecked bureaucratic power.

This marks the beginning of a new era where laws are clearer, and the balance of power is restored. Cheers to accountability and a fairer regulatory landscape! 🚀

🕵️ Amazon is reportedly investigating Perplexity AI over its scraping behavior. Amazon Web Services (AWS) has begun investigating whether Perplexity AI is breaking its rules. It comes as various media publications allege that the company is using a crawler to illegally scrape data and content for its generative AI models. The cloud provider’s decision here will significantly impact the fate of other AI companies allegedly bypassing the robot.tx files at scale. Engadget has more.

💾 TeamViewer is the latest company attacked by Russian hackers. The company that makes widely used remote access tools for companies is currently experiencing a cyberattack attributed to government-backed hackers working for Russian intelligence. It says the attack was contained to its corporate network and that it keeps its internal network and customer systems separate. There is no evidence that its product environment or customer data were accessed. More from TechCrunch.

💸 Rite Aid tries to right its ship as its bankruptcy plan is approved. A U.S. bankruptcy judge approved the pharmacy retailer’s restructuring plan, allowing it to cut its debt burden by $2 billion and turn over control to a group of lenders. Attorneys told the judge that 28,000 jobs could be lost if the restructuring was not approved. The company plans to exit from bankruptcy in about a month with 1,300 remaining locations and $2.55 billion in financing provided by lenders. Reuters has more.

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🪫 Bipartisan consensus in favor of renewable power is ending

🚕 Uber and Lyft drivers secure $32.50 an hour minimum wage in Massachusetts

🚜 Rural retailer Tractor Supply eliminates DEI roles, Pride support and carbon emissions goals

👀 Warren Buffett has finally revealed what will happen to his money after he dies

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