Good afternoon! Steak ‘n Shake just dropped a Bitcoin bomb at the Bitcoin 2025 Conference, announcing that its global Bitcoin payment launch is smashing expectations. Since May 16, the burger chain has handled a surprising share of global Bitcoin transactions, all while slashing processing fees by 50% compared to credit cards — a win-win for both the company and its crypto-loving customers

But this isn’t just a flashy gimmick. Exec Dan Edwards says the company is doubling down on innovation, teasing upcoming moves into AI, autonomous tech, and blockchain-powered projects. Oh, and if you’re in Vegas, you can celebrate the rollout with limited-edition Bitcoin burgers and milkshakes — because nothing says “future of finance” like a crypto-themed snack.

MARKETS

• The S&P 500 wrapped up its best May since 1990, soaring over 6%, while the Nasdaq jumped nearly 10%. Friday, though, was a mixed bag, with the Dow up 0.1% and the Nasdaq slipping 0.3%.

• Trump doubled steel tariffs and hinted at aluminum hikes, sparking fresh China tensions. While chip sanctions loom, the Dow still eked out a tiny gain — but the calm may not last.

STOCKS
Winners & Losers

What’s up 📈

• Ulta Beauty soared 11.78% after crushing earnings expectations and raising fiscal guidance. ($ULTA)

• Zscaler climbed 9.79% on strong third-quarter earnings and revenue growth. ($ZS)

• Palantir Technologies popped 7.73% after reports the Trump administration tapped it for U.S. citizen data projects. ($PLTR)

• Costco rose 3.12% after beating Wall Street’s Q3 expectations despite slight same-store sales pressure. ($COST)

What’s down 📉

• Gap plunged 20.18% after revealing tariffs will cost $100–150 million and guiding to flat sales. ($GPS)

• Regeneron Pharmaceuticals tumbled 19.01% on mixed late-stage trial results for its respiratory drug, dragging down Sanofi too. ($REGN)

• Elastic NV fell 12.13% despite beating last quarter, due to weaker forward guidance. ($ESTC)

• PagerDuty lost 11.43% after issuing lower-than-expected second-quarter guidance. ($PD)

• Marvell Technology slipped 5.55% after a lukewarm earnings report that narrowly beat estimates. ($MRVL)

• Sanofi dropped 5.69% alongside Regeneron after trial results disappointment. ($SNY)

• Dell Technologies slid 2.08% after missing earnings, even as revenue topped expectations. ($DELL)

FEDERAL RESERVE
The Fed’s Targeted Inflation Rate Eased in April

April painted a clear picture: U.S. shoppers are cooling off. Inflation-adjusted personal spending inched up just 0.1%, down sharply from March’s 0.7% bump, while goods imports collapsed nearly 20% — the biggest monthly drop on record. Companies rushed to dodge Trump’s tariff hikes, only to pull back hard once the duties hit. The result? A sharply narrowed trade deficit and a short-term GDP boost… but not the kind of momentum you throw a parade for.

Inflation Softens, But Trouble Brews

On paper, inflation looks tame: the Fed’s preferred PCE price index rose just 0.1% in April, with annual core inflation slipping to 2.5%, the lowest in four years. But don’t pop the champagne yet. Retail giants like Walmart and Macy’s are already hinting that higher prices are coming as tariff costs roll downstream. And while households still have some spending power, the shift from “buy now” to “wait and see” is starting to show.

Cut Rates Now

The political drama? Trump summoned Fed Chair Jerome Powell this week and not-so-gently demanded rate cuts, claiming high rates are hamstringing the U.S. against China. Powell’s response: cool your jets. The Fed’s holding steady, insisting it’ll follow the data, not Oval Office talking points. With markets betting big that rates stay unchanged in June, it’s clear Powell’s not eager to dance to Trump’s tune just yet.

What to Watch Next: While the headlines focus on tariffs and inflation, the real question is whether consumer confidence holds up through the summer. Savings are rising, wages are still growing, but uncertainty is creeping in. And if the economy starts wobbling harder? The Fed may have no choice but to jump in — though history shows, rate cuts aren’t always the silver bullet everyone hopes for. For now, Powell’s Fed is playing the long game, even as the White House tries to speed-run the plot.

NEWS
Market Movements

• 💼 Jamie Dimon’s constant economic warnings contrast with JPMorgan’s record profits: Despite warning of crises for years, Dimon’s JPMorgan has posted record profits, doubling rival performance and transforming into the world’s most valuable publicly traded financial firm ($JPM).

• 🇺🇸 Trump Doubles Steel Tariffs in Nippon Deal Context: President Trump announced the U.S. will raise steel import tariffs from 25% to 50%, framing it as part of the Nippon partnership deal that keeps U.S. Steel’s headquarters in Pittsburgh while bringing in $14 billion of Japanese investment.

• 🧵 Gap sinks after warning tariffs could slash up to $150M in operating income: Although Gap topped Q1 estimates, its stock plunged over 19% after warning it may need price hikes to offset rising trade costs from new U.S. tariffs ($GPS).

• 🌿 Canopy Growth tumbles over 20% after missing Wall Street expectations: The Canadian cannabis company reported larger-than-expected losses and weaker revenues, reflecting struggles as domestic growth slows and European exports can’t fill the gap ($CGC).

• ⚡ Lucid and Rivian sink as Trump’s new bill slashes EV incentives and adds fees: Shares of Lucid and Rivian fell sharply as investors digested the potential impact of Trump’s legislation, which would cut subsidies, impose EV fees, and layer tariffs on imported parts ($LCID, $RIVN).

• 🧑‍⚖️ Google’s antitrust trial could force Chrome divestment and end Apple search deal: Closing arguments begin today in the DOJ’s case against Google, which may require splitting off Chrome and ending its $20B default search arrangement with Apple ($GOOGL, $AAPL).

• 💻 Dell lands Energy Department’s AI supercomputer contract using Nvidia chips: The Energy Department selected Dell to build its next flagship AI-optimized supercomputer, marking a major commercial win in a space dominated by HP ($DELL, $NVDA, $HPE).

• ✈️ Boeing to resume China jet deliveries and ramp up 737 Max production: Boeing will restart deliveries to China next month and could boost 737 Max output to 47 per month by year-end, as CEO Kelly Ortberg downplays tariff concerns ($BA).

• 🚫 Synopsys halts China sales and suspends forecasts after export restrictions: Synopsys stopped all sales and services in China following new U.S. export rules, forcing it to suspend its financial forecasts ($SNPS).

• 🎥 Disney+ launches subscriber perks program: Disney+ unveiled a Perks program offering discounts, free trials, and prize opportunities like Disney Cruises to boost subscriber engagement. A similar program for Hulu subscribers is planned for June.

• 💥 SEC drops lawsuit against Binance in landmark regulatory move: The SEC dismissed its case against Binance, a crypto exchange it sued under the Biden administration, which Binance called a major milestone.

EARNINGS
Costco Pops After Strong Q1 as Tariffs Drive Bulk Buyers

Costco shares rose nearly 4% Friday afternoon as investors warmed up to the warehouse retailer’s solid Q1 earnings report.

They just reminded Wall Street why it’s the king of the warehouse game. The company posted Q1 earnings of $4.28 per share, narrowly topping estimates, and pulled in $63.2 billion in revenue. Comparable sales jumped 8%, e-commerce surged 16%, and even with all the tariff chaos swirling, Costco’s members kept their carts (and their trunks) stuffed. Oh, and they rolled out a shiny new “Scan & Pay” app feature to help shoppers dodge those famously long checkout lines — Sam’s Club, you’ve been officially nudged.

Bulk Buys Beat Tariff Blues

While many retailers are sweating over Trump’s on-again, off-again tariff battles, Costco is playing the long game. About a third of its U.S. goods are imported, but executives say they’ve been pulling forward shipments, rerouting products, and leaning harder on local suppliers to soften the blow. Sure, some selective price hikes might land later this year, but Costco’s focus is clear: protect the value, protect the loyalty, and keep Kirkland moving off the shelves.

Kirkland Flex and Digital Play

Speaking of Kirkland — the house brand once again outpaced Costco’s overall sales growth, showing just how powerful the private-label play can be when shoppers start pinching pennies. Add to that a 15% e-commerce sales jump and the arrival of Scan & Pay tech, and Costco is proving it’s no dinosaur in the digital age. For a company built on $1.50 hot dogs and pallet-sized tubs of snacks, they’re showing they can adapt faster than you’d think.

The Road Ahead: Executives are steering cautiously, avoiding a full-year forecast as tariff rules keep shifting. But here’s the bottom line: when times get tough, shoppers don’t necessarily spend less — they spend smarter. And Costco, with its massive scale and fee-paying customer base, is perfectly positioned to catch that wallet shift. Tariffs or no tariffs, it’s still full steam ahead in the land of bulk buys and big loyalty — because when the economy wobbles, there’s nothing like the comfort of a 48-pack of toilet paper, Costco pizza , and perhaps add in a little Kirkland rotisserie chicken.

Calendar
On The Horizon

Next Week

The spotlight shifts to the job market next week, with a packed lineup of labor reports. It starts Tuesday with the JOLTS survey, rolls into Wednesday’s ADP numbers, Thursday’s jobless claims, and wraps with Friday’s headline U.S. employment report. A few extra data points like Monday’s manufacturing PMI and construction spending will round out the economic picture. While earnings season cools down sharply, that doesn’t mean the calendar goes quiet. Investors will still have a few key names and plenty of macro signals to keep them glued to the screens.

Earnings:

• Tuesday: Dollar General, Nio, Crowdstrike, Signet Jewelers, and Ollie’s Bargain Outlet

• Wednesday: Dollar Tree, Brown-Forman, MongoDB, Five Below, and Thor Industries

• Thursday: Broadcom, Lululemon Athletica, DocuSign, Vail Resorts, Ciena, Cracker Barrel, and Victoria’s Secret

NEWS
The Daily Rundown

•  📱 Apple to skip to iOS 26: Bloomberg reports Apple will rename its next OS updates—iOS, macOS, watchOS, etc.—to match the calendar year (iOS 26) instead of version numbers. The move, announced at June’s WWDC, aims to create consistency across Apple’s ecosystem and boost post-pandemic hardware sales.

• 🎓 Interest in U.S. degrees drops: Web traffic to U.S. university course pages fell over 20% in Q1, the lowest since the pandemic, as Trump’s international student restrictions chill demand. U.K. universities are positioned to benefit as elite American schools like Harvard and MIT fight policy challenges.

• 🥎 MLB invests in women’s softball league: Major League Baseball bought a 20% stake in Athletes Unlimited Softball League, debuting in June 2025, marking its first major investment in a women’s pro league. The partnership includes marketing support and broadcasting games on MLB platforms.

• 🛍 Victoria’s Secret restores website after cyberattack: Following a “security incident” that shut down its U.S. site and limited in-store services, Victoria’s Secret has fully restored online operations and is working with cybersecurity experts to investigate.

• 💻 Best Buy cuts outlook over tariffs: Best Buy lowered its annual profit and sales projections, blaming rising costs from U.S. tariffs on Chinese goods. The retailer is raising prices, cutting costs, and diversifying suppliers to manage the fallout.

• 💉 Trump cancels Moderna bird flu vaccine contract: The Trump administration scrapped a $766 million deal with Moderna despite strong early trial results, citing safety and testing concerns. Experts warn the move could leave the U.S. unprepared amid rising H5N1 risks.

• 🚀 DeepSeek unveils upgraded AI model: Chinese startup DeepSeek launched its R1-0528 model, claiming performance on par with OpenAI’s o3 and Google’s Gemini 2.5 Pro, with better reasoning and lower hallucination rates. The company now boasts 75 million downloads and 38 million monthly active users, cementing its status as a rising AI contender.

• 🏠 Housing market tips slightly toward buyers: Redfin reported a gap of ~500,000 more home sellers than buyers last month, the widest since 2013, but home prices remain high at $431,931. While more inventory is pushing prices slightly lower, 30-year mortgage rates near 7% are still sidelining many buyers.

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