Good morning investors!

If this is your first time reading, welcome to The Stock Investor’s Edge — a thriving community of over 30,000 subscribers striving to be better investors with an edge in the market.

Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

Grab your coffee and let’s dive in.

Markets clawed back the early-week losses on the news of a US/Iran peace deal (again-maybe for real this time?) and a strong tailwind from the SpaceX IPO, with all three major indexes closing in the green.

These are some of the biggest stories from the second half of the week that had an influence on market action.

SpaceX began trading on the Nasdaq under the ticker $SPCX ( ▼ 4.51% ) on Friday, raising $75 billion in the largest initial public offering ever completed. The IPO priced Thursday night at $135 per share and opened Friday morning at $150, with shares running as high as $176.52 intraday before closing at $160.11. The listing also pushed Elon Musk's net worth past $1 trillion, making him the first person in history to reach that threshold.

🔑 Key Points

👀 What You Need to Know

SpaceX is now a publicly traded company, which means everyday investors can buy shares for the first time. The stock had a strong first day, but the company has never turned a profit and lost over $4 billion last year on roughly $19 billion in revenue. A $1.77 trillion valuation for a money-losing company is a big bet on future growth. Expect the stock to remain volatile as investors continue to figure out what it is actually worth.

Two major inflation reports were released this week covering May, painting a consistent picture of rising prices driven by energy costs. Consumer prices rose at their fastest annual pace since early 2023, while wholesale prices hit their highest annual rate since late 2022. Both reports arrive one week before the Federal Reserve meets to decide on interest rates.

🔑 Key Points

👀 What You Need to Know

The headline inflation numbers look alarming, but almost all of the pressure is coming from one place: energy. Gasoline is driving costs higher at both the consumer level and across the entire supply chain, largely tied to the ongoing US conflict with Iran disrupting oil markets. The silver lining is that prices for most other goods and services remain relatively contained. The concern going forward is whether sustained high energy prices begin bleeding into other parts of the economy, which would make inflation a much harder problem to solve.

📚 Edge-ucation: What is Guidance?

Guidance is a company's own forward-looking forecast for revenue and earnings, shared during earnings calls each quarter. Management sets a range for what they expect the business to deliver, giving investors a benchmark to measure future results against.

Understanding guidance helps investors recognize why a strong quarter can still send a stock lower. The forward outlook moves stocks more than the results themselves.

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Oracle $ORCL ( ▼ 2.14% ) reported a record quarter with beats on both EPS and revenue, though the stock sold off sharply on massive capex and capital raise disclosures. The stock was down roughly -14% this week.

For full breakdowns of all earnings, including graphics and all key takeaways. head to the earnings channel in our Discord.

In this section, we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.

Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed the massive sell-off last Friday, the SpaceX IPO, the upcoming inflation reports, and our thoughts on the state of the overall market. See the latest full report here:

Every month we break down 5 stocks that we believe are attractive from a valuation and momentum perspective right now. Here’s a look at the 5 stocks we are buying in June:

Next week we will get the first full trading week for SpaceX and get to see how markets react, plus more news regarding a potential deal between US/Iran, but all eyes will be on the Fed and how Warsh handles his first meeting as Fed chair.

Earnings season is coming to an end but there are still a handful of important names left to report. Here is the full calendar of scheduled earnings releases:

There are no stocks we cover scheduled to report next week.

Next week will be all about the Fed as we get the latest interest rate decision, as well as Kevin Warsh’s first press conference since becoming the Fed chair.

We also get retail sales, initial jobless claims, several housing reports, and manufacturing data.

Here is the full calendar of events we will be watching:

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🗨️ Chat rooms: Investors discussed the the huge moves from mega cap tech. Members also dove into the number of jobs reports and shared their views on the overall economy.

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Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!

Until next time investors!

Mark & Chris

The Investor’s Edge

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.