Home showings see an unusual drop in April. The report, from showing management company ShowingTime, indicates that 103 U.S. markets experienced double-digit showings per listing in April. In March of this year, 121 markets saw double-digit showings per listing. These numbers ultimately represent a 10.7 percent year-over-year drop in showing activity, as well as a 12.1 percent dip compared to one month earlier. Read more here.
Binance raises a $500 million fund to invest in ‘Web3’. The company’s venture arm, Binance Labs, said Wednesday it has raised $500 million for its debut start-up fund, securing backing from venture capital firms DST Global and Breyer Capital as well as unnamed family offices and corporations. The launch of Binance’s new fund arrives at a time when bitcoin and other digital currencies are down sharply.
Salesforce sales jump 24%, easing concerns about business demand. The San Francisco-based company reported revenue of $7.41 billion, up from $5.96 billion in the year-ago quarter and above the estimates by the company and analysts. Salesforce said demand for its software has remained strong as businesses looked for ways to boost efficiency and sales amid inflation.
Mortgage demand falls to the lowest level since the end of 2018. Applications for a mortgage to purchase a home fell 1% last week compared with the previous week, according to the Mortgage Bankers Association. Volume was 14% lower than the same week one year ago. Prices continue to rise because there is still so little supply on the market, but different tiers of buyers are seeing different pictures. Read more here.
The latest ISM manufacturing index indicated expansion. The PMI® was at 56.1% in May, up from 55.4% in April. The employment index was at 49.6%, down from 50.9% last month, and the new orders index was at 55.1%, up from 53.5%. Economic activity in the manufacturing sector grew in May, with the overall economy achieving a 24th consecutive month of growth. Read more here.
The fastest-growing cities are in just 2 states. The nation’s fastest-growing cities are more like popular suburbs located just outside of the hottest real estate markets. And they are all clustered in just two states: Texas and Arizona. Movers are taking advantage of their newfound ability to work remotely, and we’re seeing more people relocate to the South and West.
WHAT TO WATCH
OPEC considers suspending Russia from the output deal. If Russia is exempted, other exporters such as Saudi Arabia would increase production, even more, to make up for the Russian shortfall. While that should ease supply concerns, the EU’s agreement to phase out most Russian imports by the end of the year, along with China opening up from Covid lockdowns, pushed prices higher. Read more here.
Pfizer to exit GSK consumer health venture after the spinoff. Pfizer will sell down its 32% stake in Haleon, its consumer health joint venture with GSK. Following the spin-off, at least 54.5% of Haleon’s total issued ordinary share capital would be held by GSK shareholders, and 6% would be held by GSK, the company said. The new GSK will “focus purely on biopharmaceuticals” and invest in new vaccines and medicines.
Supply challenges loom beyond 2023 for fertilizers. Barclays analyst Benjamin M. Theurer initiated research coverage of Corteva and Nutrien with overweight ratings, saying in a Wednesday note that demand will remain strong for agricultural products. The analysts see lasting supply/demand tightness beyond 2023, which bodes well for the broader group despite recent outperformance against major indexes. Read more here.
Things are looking up for AMD and Nvidia. On Monday, Advanced Micro Devices announced that Frontier, a supercomputer powered by AMD's CPUs and GPUs, is the world's fastest supercomputer. The announcement also highlighted the use of AMD's products by some of the world's strongest supercomputers. . On the same day, Nvidia announced that numerous companies are adopting its Grace Superchip, a product not expected to be released until early 2023. Read more here.
Investors warn of a “VC Winter”. According to CB Insights, funding for global startups is about 58 billion dollars in commitments midway through Q2 which is on pace to drop by 20% quarter-over-quarter. Investors at every stage are making the same warning about a VC winter. The central bank is raising rates and taking money out of the system making money more expensive. The market downturn impacts consumer behavior, labor markets, and supply chains. Source(21:49)
It's the time to invest in mining and materials companies. Mining and materials companies are trading at double-digit free cash flow yields, they're buying back stock, they have no leverage in their businesses, and then downstream everyone is reliant on them. The nickel industry is dominated by essentially Glencore and Vale S.A. Those two businesses at today's commodities prices are essentially going to free cash flow themselves out in three years. Source(14:23)