MRKT MATRIX: June 12, 2024

Today’s Top Stories:

• S&P 500 closes above 5,400 for the first time as Fed notes ‘modest’ inflation progress (CNBC)

• Fed recap: Chair Powell explains why the central bank isn’t ready yet to cut rates (CNBC)

• Apple’s stock is about to achieve a feat not seen in 16 years (MarketWatch)

• After Apple Surge, Market Concentration Is Only Getting Worse. It’s Not a Problem—Yet. (Barron’s)

• Tesla Investors to Decide if Musk Deserves $45 Billion Payday (NYTimes)

• Oil’s last ‘hurrah’ is coming. Here’s the commodity investors should be buying instead, says Citi (MarketWatch)

• Caterpillar Hikes Quarterly Payout and Boosts Share Buyback Plan (Bloomberg)

• GitLab, DocuSign: Two Software Companies That May Not Stay Public for Long (The Information)

• U.S. Travelers Can Renew Their Passports Online Starting Today (WSJ)

Today’s MRKT Call is Presented by SoFi

Live Market Analysis Ahead of Fed Interest Rate Decision

Guy Adami and Liz Young break down the top market headlines and bring you stock market trade ideas for Wednesday, June 5th.

Click here to access all of the charts mentioned in today’s MRKT Call.

Buy July / Sept 50 call calendar

• Sell to open 1 July 50 call at ~$1

• Buy to open 1 Sept 50 call for ~$3.70

Break-even on July expiration:

• If the stock is 50 or below, the short July call expires worthless, and you are left owning the Sept 50 call for ~$2.70

• The ideal scenario is that the stock rallies near $50 by July expiration, the Sept call appreciates, but the July continues to decay.

• Max risk is the $2.70 premium or about 6% of the stock price.

• Before or on July expiration, I would look to cover the short call and sell a higher strike call in September to create a vertical call spread and further reduce the premium outlay.

Sign up below to receive daily MRKT Call reminders and early access to the charts featured in the show.

Today’s Okay, Computer. is Presented by RBC and Current

OnlyDans Redux

Dan Nathan and Dan Niles of Niles Investment Management discuss key financial and tech topics. They explore expectations for the upcoming Apple Worldwide Developers Conference and its potential impact on Apple's stock. The conversation covers Google, Microsoft, and their advancements in AI, along with Nvidia's future prospects amid expected spending digestion. They touch on Tesla's market challenges and job cuts in the tech industry. Additionally, they consider the implications of elections and geopolitical events on the economy, projecting potential market shifts and stressing the importance of data dependency and adapting to changing scenarios.

Timecodes

• 0:00 - Intro

• 4:00 - Dan's Macro Outlook

• 14:00 - Apple's AI Plan

• 28:30 - Enterprise Software

• 39:00 - Is Tesla Screwed?

Subscribe to the RiskReversal YouTube Channel and drop a comment/like to show your support

Want to check out past episodes? Search for “On The Tape,” “MRKT Call,” or “Okay, Computer.” wherever you listen to podcasts

We want to hear your feedback! Reply to this email with any comments or questions