MARKET RECAP

Yesterday: Stocks finished mostly higher Wednesday, with the S&P 500 extending its winning streak to seven days, as easing trade tensions boosted investor sentiment despite weaker economic data. First quarter U.S. GDP unexpectedly contracted by 0.3%, the first decline since 2022, due to a surge in imports and softer consumer spending. Treasury yields fell as inflation data came in cooler than expected, supporting expectations for potential Fed rate cuts by summer. Oil prices dropped below $60 on signs of increased output from Saudi Arabia. Meanwhile, earnings season remained strong, with 76% of S&P 500 companies beating estimates, though cautious guidance and reduced full-year profit forecasts reflected ongoing economic uncertainty.

On Our Radar: Analysts will be watching construction spending and the ISM Manufacturing PMI today for signs of momentum in building demand and factory activity. On the earnings front, Amazon, Apple and Airbnb will headline a slate of major earnings reports after market close.

TOP STORY

'Sell In May And Go Away' Looks Outdated As May–July Data Signal Bullish S&P 500 Seasonality

The classic 'sell in May and go away' mantra may be losing its edge as new data shows the S&P 500 has consistently rallied from May to July — defying decades of market wisdom. Could this seasonal trend be the key to outsmarting the market in 2025?

Read the full story and see why this could be your next big opportunity!

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FIVE ZINGERS

Cloud Nine: Shares of Microsoft surged nearly 10% after beating analyst expectations on the top and bottom lines. Combined with upbeat guidance and Azure exceeding expectations, here are all the reasons why investors are on cloud nine.

Meta Gains: Shares of Meta jumped more than 5% after delivering strong Q1 results, topping analyst expectations for the ninth consecutive quarter. Here’s everything you need to know.

Tele-Drop: Teledoc, the telehealth company, saw its shares drop as much as 10% after hours before recovering most of it. Here’s what spooked investors and what it means going forward.

Brew Blues: Starbucks shares took a dive after earnings results missed analyst expectations. With consumer sentiment slipping and traffic down, could the coffee giant be losing its edge? Read on for all the details.

Chicken Run: Wingstop crushed analyst expectations and raised its global growth outlook, sending shares soaring! Discover why this fast-growing franchise is just heating up.

SPECIAL OFFER

Alpha Buying: Big Oil Becomes Ground Zero For Activist Investing In 2025

Editor’s Note: Every week, Tim Melvin releases Alpha Buying, a report detailing the insider buying that, unlike most, is actually worth paying attention to. Here’s a sneak peek at the report:

While prices have retreated to a degree, it’s not like stocks are suddenly super cheap and attractive either. The S&P 500 still trades with a PE ratio based on trailing earnings of 26 and a CAPE Ratio of 32.7. While off the highs of earlier this year, both are still extremely high by historical standards. Given the unattractive cocktail of valuation and uncertainty, insiders have pretty much kept their wallets in the desk drawer for much of the year.

Despite economic uncertainty and market volatility, activist campaigns have continued their upward trajectory. Global campaign activity reached 70 initiatives in Q1, representing a 17% increase year-over-year and running 25% above the four-year quarterly average. This suggests that periods of uncertainty often create fertile ground for activists to identify undervalued situations. Many are scoring major wins, with companies like Honeywell, Becton Dickinson, and Solventum, all announcing significant break-ups or divestitures in Q1 following activist pressure.

Elliott Management continues to lead the pack with four campaigns in Q1, including high-profile engagements at one energy giant. Elliott wants management to drive the renewables business and cut spending by several billion dollars and has also outlined steps it feels the company should take that would get free cash flow to rise to $20 billion a year, well above the current $8 billion.

That company was not Elliott’s only campaign in the oil fields. In the spring of 2024, Elliott revealed a $1 billion stake in this industry giant, and and wasted no time firing off a blistering indictment of the company’s lackluster operational performance. There has been a great deal of back and forth, but Elliott has not been appeased and has moved forward with a proxy fight.

This is another potential win-win for investors. The stock is cheap, and management just raised the dividend to yield 4.5%. Improved economic and market conditions could easily lead to a huge bump in the price of the stock. If Elliott wins the proxy battle and its changes are effective, the upside potential is again over 100%.

Click here to gain access to the full report!

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