Morning Reads


Todays Open Interest Change




President Joe Biden said U.S.-China ties are on the "right trail", hailing the progress made during Secretary of State Antony Blinken's two-day Beijing trip at a time when geopolitical tensions are on the rise. "He (Blinken) did a hell of a job," Biden told reporters in California. "We're on the right trail here."

China's stance: Xi echoed Biden's views, saying good progress was made on diplomatic ties. "China respects U.S. interests and does not seek to challenge or displace the U.S. In the same vein, the U.S. needs to respect China and must not hurt China's legitimate rights and interests," said Xi. "China hopes that the U.S. will adopt an objective and rational perception of China, work with China in the same direction, and handle unexpected and sporadic events in a calm, professional and rational manner," the Chinese embassy in Singapore said in a statement.

Dig deeper: Blinken's trip included a surprise meeting with Chinese President Xi Jinping. Blinken had earlier met China's top diplomat Wang Yi and Foreign Minister Qin Gang. "The two sides had candid, substantive, and constructive discussions on key priorities in the bilateral relationship and on a range of global and regional issues," the U.S. State Department said. The issues discussed included the contentious Taiwan issue and China's actions against U.S. firms. Both sides agreed to meet further to continue open lines of communication.

SA commentary: Investment manager Neuberger Berman said U.S.-China ties are facing a potentially more challenging political environment, with elections in Taiwan and the U.S. slated for 2024. "More constructive engagement by both countries would be helpful, appreciating that competition between these two powerful economies will likely remain fierce." (8 comments)

Regulatory heat

Adobe's (ADBE) planned $20 billion purchase of Figma is expected to face an in-depth review by European antitrust regulators, sending its stock 1% lower in premarket trade today. The deal is already facing regulatory heat in the U.K. as well as the U.S., even as Adobe remains confident in the deal's merits. The acquisition was not welcomed by Wall Street as many believe Adobe overpaid for Figma. SA contributor Zen Analyst said the uncertainty over the deal creates a layer of ambiguity in Adobe's short-term trajectory.

Record order

Airbus (OTCPK:EADSY) (OTCPK:EADSF) received what it described as the biggest deal in civil-aviation history yesterday, with an order for 500 narrowbody jets from Indian budget carrier IndiGo. The European plane maker announced the deal, with an estimated value of $50 billion based on list prices and typical discounts, at the Paris Air Show. The planes will be delivered from 2030 to 2035. (23 comments)

Tech’s '95 moment?

It's becoming clearer to some that the recent AI wave is more akin to a moment for technology not seen since the mid-1990s, when the internet exploded in popularity and transformed the entire planet. "The massive $800 billion AI opportunity is now on the doorstep for the tech sector for the next decade," said Wedbush. It expects tech stocks to continue gaining this year, perhaps to the tune of 10% to 12%, especially as the Federal Reserve slows down its interest rate hikes and the integration of AI into everything is looking more like the next Industrial Revolution. (177 comments)

Today's Markets

In Asia, Japan +0.1%. Hong Kong -1.5%. China -0.5%. India +0.3%.
In Europe, at midday, London flat. Paris -0.2%. Frankfurt -0.5%.
Futures at 7:00, Dow -0.4%. S&P -0.4%. Nasdaq -0.4%. Crude +0.2% to $72.07. Gold -0.4% to $1,963.30. Bitcoin +1.5% to $26,768.
Ten-year Treasury Yield -5 bps to 3.77%.

Today's Economic Calendar

8:30 Housing Starts and Permits

Companies reporting earnings today »

What else is happening...

China central bank cuts two key lending rates to prop up slowing economy.

Fed says two more rate hikes likely this year, but markets are unconvinced.

May credit card data shows more delinquencies, verging on 'normal' rates.

Warren Buffett boosts stakes in Japanese trading houses to over 8.5%.

Intel's (INTC) €30B funding is largest foreign investment in Germany.

Alibaba (BABA) names Eddie Wu as new CEO in surprise shakeup.

Google (GOOG) eyes shifting Pixel manufacturing to India from China.

Archer Aviation (ACHR), Stellantis (STLA) deepen eVTOL partnership.

Civitas Resources (CIVI) nears $5B deal to expand into Permian.

U.S. Steel (X) guides for above-consensus Q2 earnings.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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