Relief for renters.

Alright so today we’ve got:

• CPI and hope are propping up the stock market.

• JP Morgan settles for $290 million.

• Rents are not growing as fast as last year.

  Let’s do a look-see.

The Big Picture

The S&P 500 reached its highest level in over a year, as investors anticipate a pause on Federal rate hikes and a good CPI report. The CPI(consumer price index) grew 4% over the past year, marking a drop from its previous high of 9% last June. The S&P 500, after four consecutive weeks of gains, closed at 4338.93, its highest since April 2022.

Technology giants like Meta Platforms, Alphabet, and Nvidia led the charge, with the recent rally broadening to include previously struggling stocks such as Carvana. This week presents important events including Federal Reserve's interest-rate decision and the European Central Bank's rate decision alongside U.S. retail sales data.

Despite the rally, some investors expressed caution due to its narrow focus on a few winners, highlighting the need for broader market strength. Monday's gains were driven by tech giants and rising stars like Carvana, while energy companies faced pressure due to declining oil prices. The bond market saw a slight increase in the yield on 10-year U.S. Treasury notes. Interest-rate futures indicated expectations of steady rates this week, but potential rate increases at the next meeting in July. Market participants closely monitored these developments, ready to respond to any shifts in the Federal Reserve's decisions.

Sector Sweep

Tech

• On Monday, the Federal Trade Commission sought a federal court injunction to halt Microsoft's $75 billion acquisition of Activision Blizzard, citing potential legal opposition in the U.S. and U.K., as it carries out a separate process to contest the deal, pending a judge's agreement post-hearing where the FTC would provide evidence against the legality of the deal.

• EU’s premier antitrust regulator European Commission is reportedly set to file a formal complaint against Google as early as Wednesday, alleging abuse of its prominent role in the digital ad market on third-party platforms, as part of an escalated effort to break up the tech giant's advertising business, according to people familiar with the matter.

• New Twitter CEO, Linda Yaccarino formulated the next steps for the social media company to become a source of accurate information “Twitter is on a mission to become the world’s most accurate real-time information source and a global town square for communication”

Automotive

• Toyota's boss Akio Toyoda is facing opposition from several shareholders such as the New York City comptroller’s office who have voiced their intentions to vote against several Toyota directors, including Toyoda, due to disagreements over his cautious electric-vehicle strategy and refusal to set a deadline for the carmaker's transition to a fully electric lineup.

• Car sales could be in for a major shift as General Motors is launching a digital sales platform for fully online, fully in-dealership, or hybrid purchasing experiences. Ford plans to implement fixed pricing for its F-150 Lightning and Mustang Mach-E EVs from next year onwards.

Real Estate

• San Francisco's hotel market is enduring its most challenging period in over 15 years, with room occupancy, rates, and revenue per available room still significantly lower than pre-pandemic levels, primarily due to crime and quality-of-life concerns deterring convention bookers, and the tech sector's adoption of remote work reducing business travel to the city.

• Apartment rent growth is rapidly declining, resulting in new-lease asking rents rising just under 2% in the year ending May 2023, the rental market is shifting in favor of tenants for the first time in years. This is significantly lower than the double-digit increases of the previous year, offering relief for millions of renters contending with a 25% national rent hike over less than two years, which could also help alleviate inflation.

Banks

• JPMorgan Chase has agreed to a $290 million settlement over its connections to convicted sex offender Jeffrey Epstein, according to lawyers representing Epstein's accusers, a decision announced shortly after senior executives were interrogated about the bank's long-standing association with Epstein.

That’s all for today folks. Do keep a lookout for our weekly email about stock deep dives and personal finance strategies this weekend.

BTW, do tell us how we did. Just hit us with a reply.

Cheers!

Memetic Universe

You live to die another day.

Inverse Cramer strikes.