Daily Game Plan

TODAY’S GAME PLAN:  from the trading
desk, this is not research

TODAY’S ECONOMIC DATA:  8:30ET Chicago Fed Nat Activity Index, Initial Jobless Claims;  9:45ET S&P Global US Manufacturing
PMI, S&P Global US Services PMI; 10:00ET New Home Sales; 11:00ET Kansas City Fed Manf. Activity; 1:00ET 10-year TIPS Auction; 3:00ET Fed’s Bostic speaks

HIGHLIGHTS and News:  

• UK General Election Called for July 4th
  
• NVDA technical breakout target $1194 area
• RBOB Gasoline holds key 200 day mvg avg

Global stocks edged up after results from Nvidia ignited a rally across tech stocks, although the prospect that interest rates could stay higher for longer tempered
investor optimism. Businesses activity across the globe broadly improved this month with activity picking up across parts of Asia and Europe, surveys showed, giving central banks room to potentially defer cutting interest rates. Meanwhile, geopolitical tensions
persisted as China’s military started two days of “punishment” drills were held in areas around Taiwan just days after new Taiwan President Lai Ching-te took office.

EQUITIES: 

US equity futures are higher after blowout earnings from Nvidia Corp. reinforced belief that the global artificial-intelligence boom will keep powering equity markets. Nvidia gained over
6% post-market after posting stronger-than-expected fiscal first-quarter results and announcing a 10-for-1 stock split. The optimism also lifted peers such as Super Micro Computer and Advanced Micro Devices. The Nvidia result overshadowed Wednesday’s release
of Federal Reserve minutes, which confirmed officials are in no rush to cut interest rates. On the economic front, investors await weekly jobless claims and new home sales data for April.

Futures ahead of the bell: E-Mini S&P +0.7%, Nasdaq +1.1%, Russell 2000 +0.4%, DJI +0.2%

In pre-market trading, Nvidia (NVDA) jumps 7% after a bullish sales forecast showed that AI computing spending remains strong. AMD (AMD) +3%, Dell (DELL) +6%.  Live Nation (LYV) falls
6% after Bloomberg reported that the US Justice Department and a group of states will sue the entertainment company for antitrust violations related to Ticketmaster’s unrivaled control of concert ticket sales. Alibaba (BABA) slips 1.8% as the company is considering
selling convertible bonds to raise about $5 billion. DuPont (DD) climbs 5% after the chemical company announced plans to split into three publicly traded companies. Greenwave (GWAV) soars 60% after the metal recycling facilities operator announced that it
had eliminated all convertible debt. LiveRamp (RAMP) rises 14% after the marketing technology company reported fourth-quarter results that beat. Snowflake (SNOW) rises 3% after the software company reported results that beat expectations and raised its full-year
guidance. VF Corp. (VFC) shares plummet 13% after the owner of the Vans and North Face brands reported a loss and a seventh consecutive quarter of falling sales. Zuora (ZUO) gains 9% after the cloud-based software developer reported first-quarter results that
beat.

Once the breakout has occurred, the price projection is found by measuring the widest distance of the pattern and applying it to the resistance breakout.

In 2023, the Technology, Communications Services and Consumer Discretionary sectors surged by 56%, 53% and 40%, respectively, powered by AI enthusiasm. However, this year the rally has
been much broader with Utilities the best performing sector while Consumer Discretionary is negative YTD.

European gauges are moderately higher, with technology shares leading gains after Nvidia delivered on the market’s AI hopes in the US and boosted the outlook for the region’s sector.
Germany’s headline PMI was above 50 for a second consecutive month, driven by strong services activity. But in France, the private sector unexpectedly shrank this month. Growth across British businesses cooled noticeably in May and by more than economists
had predicted, its PMI showed. UK stocks underperform after Rishi Sunak called a surprise general election for July 4.  Utilities dropped more than 2% as UK electricity and gas company National Grid slid 7% after announcing a £7 billion ($8.9 billion) equity
raise in its full-year results. In M&A news, UK investment platform Hargreaves Lansdown surged after it rebuffed a $6 billion private equity offer. Stoxx 600 +0.4%, DAX +0.3%, CAC +0.4%, FTSE 100 is flat. Technology +1.6%, Media +0.8%, Financial Services +0.8%.
REITs -1.4%, Utilities -2%.

Asian equities were mixed as a selloff in Chinese and Hong Kong shares offset gains in regional semiconductor stocks following Nvidia’s latest bullish sales forecast. The MSCI Asia Pacific
Index was little changed. Chinese tech shares bucked the broader rally in the sector amid concerns about an intensifying price war in the local AI market. Alibaba fell over 5%.  Benchmarks in Japan and India lead gains in the region, while South Korea’s Kospi
fluctuated after central bank Governor Rhee Chang Yong said the potential for an interest-rate hike was limited. Sensex +1.6%, Nikkei 225 +1.25%, Vietnam +1.1%, Philippines +0.8%, Taiwan +0.25%. Kospi -0.05%, ASX 200 -0.5%, CSI 300 -1.2%, Hang Seng Index -1.7%.

FIXED INCOME: 
 

Treasuries little changed on the day, with yields trading within one basis point of Wednesday’s close following a rangebound overnight session.  European bond yields
inched higher after purchasing managers indexes revealed private-sector business activity at its highest in a year in the euro area. US session focus includes $16b 10-year TIPS reopening, which follows a decent 20-year bond sale on Wednesday.  US 10-year yields
around 4.42%.

METALS: 

Gold fell for a third straight after minutes from the most recent Federal Reserve meeting indicated that some officials were inclined to raise interest rates.
Minutes from the May Federal Open Market Committee meeting showed concern over “disappointing” price increases and discussions to hold rates for longer “should inflation not show signs of moving sustainably toward” the central bank’s 2% target. Spot gold -0.5%,
silver -0.3%.

ENERGY:   

Oil prices tick up after testing the lows on the month, though the market stays in wait-and-see mode ahead of the OPEC+ meeting on June 1. US crude stockpiles rose
last week, while inventories at the storage hub at Cushing, Oklahoma, swelled to the highest level since July, according to government data.  Russia said it exceeded its OPEC+ production quota in April for “technical reasons” and will soon present its plan
to compensate for the error, the Russian Energy Ministry said late on Wednesday. WTI +0.8%, Brent +0.8%, US Nat Gas +0.4%, RBOB +1.2%

CURRENCIES:   

In currency markets, the euro got a boost from a survey that showed German business activity grew for a second straight month in May, underpinning confidence that
the euro zone’s largest economy could be turning a corner. The dollar slipped from a one-week high following its best day this month after minutes of the last Federal Reserve meeting revealed a willingness to raise interest rates among some officials. Sterling
remained firm after jumping to a one-month peak following hotter-than-expected inflation, and also drew support from the announcement of a UK parliamentary election for July 4. The kiwi advanced after Reserve Bank Governor Adrian Orr said that the central
bank doesn’t want to risk a blowout in inflation expectations.  US$ Index -0.25%, GBPUSD +0.2%, EURUSD +0.3%, USDJPY -0.2%, AUDUSD +0.4%, USDCHF -0.3%, NZDUSD +0.5%, USDNOK -1%.

Spot Bitcoin +0.6%, Ethereum +5%. Ether continued to hover near Tuesday’s more than two-month peak amid speculation over the potential approval of US spot exchange-traded
funds

TECHNICAL LEVELS:  

Colors within the report:
Green is always the 200 period (day, week).
Red is always 21,
Blue = 50,
Brown =
100 *Stars have added importance 

• Upgrades
• Americold Realty Trust (COLD) Raised to Sector Outperform at Scotiabank
• Chubb (CB) Raised to Neutral at BofA; PT $266
• CI&T Inc (CINT) Raised to Buy at Canaccord; PT $6
• Freshpet (FRPT) Raised to Buy at Redburn; PT $168
• General Dynamics (GD) Raised to Buy at CFRA; PT $330
• GoodRx Holdings (GDRX) Raised to Outperform at RBC; PT $10
• Hasbro (HAS) Raised to Overweight at JPMorgan; PT $74
• HighPeak Energy (HPK) Raised to Hold at Truist Secs; PT $13
• International Paper (IP) Raised to Buy at Jefferies; PT $57
• Norfolk Southern (NSC) Raised to Outperform at RBC; PT $270
• Nvidia (NVDA) Raised to Buy at Punto Casa de Bolsa; PT $1,115
• Power of Canada (POW CN) Raised to Sector Outperform at Scotiabank
• Take-Two (TTWO) Raised to Buy at BofA
• Downgrades
• Banxa Holdings (BNXA CN) Cut to Neutral at HC Wainwright
• Best Buy (BBY) Cut to Market Perform at Telsey; PT $95
• Doma Holdings (DOMA) Cut to Market Perform at JMP
• Generac (GNRC) Cut to Neutral at JPMorgan; PT $149
• Netease (NTES) ADRs Cut to Equal-Weight at Morgan Stanley; PT $100
• NextEra Energy Partners (NEP) Cut to Underweight at JPMorgan; PT $25
• PlayAGS (AGS) Cut to Hold at Stifel; PT $12.50
• Under Armour (UAA) Cut to Market Perform at Oppenheimer
• VF Corp (VFC) Cut to Market Perform at Telsey; PT $13
• Cut to Sell at Williams Trading; PT $6
• Vipshop (VIPS) ADRs Cut to Hold at Benchmark
• Initiations
• Atlas Energy Solutions (AESI) Rated New Buy at Benchmark; PT $27
• ATRenew (RERE) ADRs Rated New Buy at Sealand Securities
• BellRing Brands (BRBR) Rated New Buy at Deutsche Bank; PT $67
• BNP Paribas (BNP FP) ADRs Rated New Buy at Berenberg; PT $44.50
• Broadcom (AVGO) Rated New Add at Citic Securities; PT $1,580
• Casella Waste (CWST) Rated New Hold at Deutsche Bank
• First Horizon (FHN) Rated New Overweight at Stephens; PT $19
• Freshpet (FRPT) Rated New Buy at Deutsche Bank; PT $150
• GE Vernova (GEV) Rated New Equal-Weight at Morgan Stanley; PT $167
• MoneyHero (MNY) Rated New Buy at Aletheia Capital; PT $4.95
• Myomo (MYO) Rated New Buy at Lake Street; PT $7
• Republic Services (RSG) Rated New Hold at Deutsche Bank
• Skye Bioscience (SKYE) Rated New Overweight at Cantor; PT $21
• Targa Resources (TRGP) Rated New Hold at Baptista Research; PT $125.20
• Waste Connections (WCN CN) Rated New Buy at Deutsche Bank; PT $241

Data sources: Bloomberg, Reuters, CQG