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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.

Market Talk

It was a mixed week for the major indexes as a majority of stocks were in the red, but Nvidia was able to pull the Nasdaq higher after reporting strong earnings.

3 Stories Moving the Market

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

Nvidia shows no signs of AI slowdown after over 400% increase in data center business

Nvidia's recent surge in market performance is largely driven by its data center business, which experienced a significant growth of 427% in the latest quarter due to high demand for its AI processors.

Major cloud providers like Amazon Web Services, Microsoft Azure, Google Cloud, and Oracle Cloud account for around 45% of Nvidia's $22.56 billion in data center sales for the April quarter.

Nvidia also announced that its next-generation GPU, Blackwell, will be available in data centers by the fiscal fourth quarter, easing concerns about potential slowdowns.

Additionally, Nvidia revealed a 10-for-1 stock split and increased its dividend by 150% to $0.01 per share post-split, following a substantial 25-fold increase in its share price over the past five years.

📚 EDGE-UCATION: What is a stock split and how will it affect you if you own Nvidia stock?

A stock split is when a company divides its existing shares into multiple new shares. For example, in a 10-for-1 stock split, each existing share is divided into 10 new shares. This increases the total number of shares, but the overall value of the company remains the same.

Here’s how it affects a stock:

1. Share Price: The price of each share decreases proportionally. In a 10-for-1 split, a share that was $1000 would now be $100.

2. Number of Shares: Shareholders now own more shares. If they had 1 share before, they would have 10 shares after a 10-for-1 split.

3. Overall Value: The total value of a shareholder's investment remains the same. If they had 1 share worth $1000 before, they now have 10 shares worth $100 each, still totaling $1000.

Stock splits are often done to make shares more affordable and attractive to investors.

Federal Reserve minutes indicate worries over lack of progress on inflation

At their latest meeting, Federal Reserve officials expressed growing concern about persistent inflation and were not confident enough to proceed with interest rate reductions, the latest meeting minutes showed.

Despite targeting a 2% inflation rate, recent data showed inflation running higher than expected. The Fed noted that inflation had not shown significant improvement in recent months and indicated a willingness to tighten policy further if necessary.

The Federal Open Market Committee (FOMC) unanimously decided to maintain the short-term borrowing rate at 5.25%-5.5%, the highest level in 23 years, supported by data indicating continued solid economic growth.

Although there have been some signs of easing inflation, such as the April consumer price index showing a slight decrease, consumer sentiment surveys reveal increasing worries about inflation.

Market expectations for rate cuts this year have adjusted, with a 60% chance of the first cut in September and a slightly better than even chance for a second cut in December, down from earlier expectations of at least five rate cuts this year.

Justice Department sues to break up Live Nation, parent of Ticketmaster

The U.S. Department of Justice, backed by 30 states, is taking legal action against Live Nation, the parent company of Ticketmaster, for alleged antitrust violations.

The lawsuit, filed following an investigation into Live Nation's potential monopoly in the ticketing industry, accuses the company of engaging in anticompetitive practices that harm fans, artists, smaller promoters, and venue operators.

Live Nation's merger with Ticketmaster in 2010 created a dominant force in the live event industry, controlling a significant portion of concert promotions, ticket sales, and venue ownership.

The lawsuit alleges that Live Nation uses its market power to maintain a self-reinforcing business model, stifling competition and inflating prices for consumers. The company is accused of various tactics, including exclusive promotion deals, acquiring competitors, and threatening retaliation against rivals and venues.

Additionally, Live Nation's control over ticketing has led to inflated prices and disrupted ticket sales, prompting scrutiny from regulators and lawmakers.

The legal action marks a significant challenge for Live Nation, with its shares falling over 7% in response to the news.

IE+ Posts of the Week

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.

Edge Report

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 Nvidia and shared an options strategy to set up our portfolios for a potential huge move after earnings. See the latest full report here:

Earnings Recaps

Every week during earnings season we share a recap of the quarterly reports from stocks that we cover. You can see this week’s earnings recaps here:

The Week Ahead

Next week is all about inflation and retail earnings.

Earnings Reports

Earnings season is winding down but it will still be busy for us here at The Investor’s Edge as several major retail companies we cover are scheduled to report. Here is the list of names we will be covering:

• Monday 5/27: --

• Tuesday 5/28: --

• Wednesday 5/29: Salesforce and Dick’s Sporting Goods

• Thursday 5/30: Costco, Dollar General, and Ulta Beauty

• Friday 5/31: --

Here is the full calendar of scheduled earnings releases:

Economic Reports

Next week is all about the PCE report as investors look to see if the Fed’s preferred inflation metric shows any signs of cooling towards that 2% inflation target.

There’s also the GDP data, and a few housing reports on the schedule.

There will be several speeches from Fed members every day next week - all of which have the potential to move markets.

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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

Disclosure

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.