DHUnplugged #706: Beanstalk Market

Apple AI – Disappoints (or confuses)

NVDA – passes AAPL market cap

Treasury yields moving within a range

Beanstalk – what is that story again?

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Warm Up
- Apple AI - Disappoints (or confuses) - for a minute
- NVDA - passes AAPL market cap
- Treasury yields moving within a range
- Beanstalk - what is that story again?
- Fed in play

Market Update
- Large Caps dominate June (thus far) - Small-caps out of favor
- Buyers are hungry - any dip is bought
- Economic confusion - Jobs report
- NVDA - 10:1 completed (now what?)

Apple WWDC - Pins and Needles
- Features will go beyond artificial intelligence to personal intelligence.
- Will protect privacy at every step.
- Will enable iPhone to create language and images.Language understanding will be natural.
- New writing tools can summarize text when you are working on a blog post.
- Users can create new emojis for conversation.
- Images can be created in three styles.
- Will allow hundreds of "actions" such as "show me my photos from last week" or "show me the podcast my mom wanted me to listen to last week."
- Apple Intelligence is powered by large language models.
- Introduces Apple Private Cloud with personalized AI.
- Siri will be able to take AI enabled actions. It will allow for more natural language.
---- Market not impressed - was hoping for BIG AI announcement from Apple.
------ Stock down on this news - then POPS to ATH on Tuesday

Elon on Apple AI
- Elon Musk said he would ban Apple Inc. devices from his companies if OpenAI’s software is integrated into the products at the operating system level.
- The remarks followed a presentation Monday by Apple Inc., when it said that customers would have access to OpenAI’s ChatGPT chatbot through the Siri digital assistant. Apple plans to roll out the capabilities as part of a suite of new AI features later this year.

Jobs report
- May nonfarm payrolls increased by 272,000 (Briefing.com consensus 185,000).
- The 3-month average for total nonfarm payrolls increased to 249,000 from 237,000.
- April nonfarm payrolls revised to 165,000 from 175,000. March nonfarm payrolls revised to 310,000 from 315,000.
- May average hourly earnings were up 0.4%
- Unemployment rate moved up to 4%
--- YET - still HOPE for 1-2 rate cuts this year

- Toyota - company has lost %15B market cap after false data found
- Japan's transport ministry found false data used to certify certain models a week ago on Monday.
- Other companies too - Toyota, Mazda, Suzuki, Yamaha
-- Companies falsifying data used in safety tests.
- Toyota chairman: "tested using methods that differ from the standards defined by the national authorities."
--- Collusion????

Gold - Short Supply?
- According to the World Gold Council - Gold hard to find
- New gold deposits are becoming harder to find around the world as many prospective areas have already been explored
- Gold Strategist: "I think the overwhelming story there is: after 10 years of rapid growth from around 2008, the mining industry is struggling to report sustained growth in production," said Reade.
- Bottom Line: "It's getting harder to find gold, permit it, finance it, and operate it,"

Game-Stop Already
- Shares tank 40% after another big run up - Keith Gill live stream
- Continues to post cryptic messages now that he is back
- Must be bored

Panic Buttons
- Retail giant Walmart says it is against putting panic buttons in stores - a move that the New York legislature wants to require under a new law aimed at keeping retail workers safe.
- Walmart's top corporate affairs officer told Reuters that the company opposes the panic button idea because it believes there are likely to be many false alarms.
- The panic button provision of the New York law would go into effect in 2027 for retailers with more than 500 employees nationwide.

- Microsoft unveiled ALL- digital versions of XBOX
- No more need for disks (take that Gamestop)
- The hardware refresh could help Xbox boost sales of its consoles which compete with Sony's PlayStation 5

CPI and PPI due this week
- CPI - expected to rise 0.1% MoM
- PPI - see above
- FED - FOMC rate decision Wednesday - would seem like they would need to be more aggressive with setting appropriate expectations

It is Balloon!
- North and South Korea sending "spy" balloons
- North is sending with pamphlets that fall on South Korea
- South Korea is mad that North Korea sending their garbage
- Built using 3D printers and components sourced online and sometimes equipped with GPS-tracking, these so-called "smart balloons" can cost up to $1,000 each.
- Most balloons contain devices pre-programmed to scatter 1,500 leaflets, 25 at a time, taking into account the hoped-for flight path, wind and other weather conditions.
- - many are just people/activists sending propaganda

- Boeing received orders for only four new planes in May — and for the second straight month, none for its best-selling 737 Max, as fallout continues from the blowout of a side panel on a Max during a flight in January.
- The results released Tuesday compared unfavorably with Europe's Airbus, which reported orders for 27 new planes in May.
--- Is this BOEING or more related to travel slowdown?
---- BUT: Despite the slow pace of recent sales, Boeing still has a huge backlog of more than 5,600 orders.

General Odors
- GM Chief Financial Officer Paul Jacobson said the company now expects sales of 200,000 to 250,000 EVs this year, down from a previously announced range of 200,000 to 300,000.
- General Motors is trimming its expected sales of all-electric vehicles this year, as U.S. adoption of EVs occurs slower than expected.
- But initiating a new buyback and increase in dividend

- Buc-ee's opens largest store spanning 75,000 square feet with 120 gas pumps
- Luling Texas


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