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📈 Meta's AI Dream Team
Northern Trust BNY Merger Talks, Tesla's Retail-Focused Robotaxi Theater, Ive-OpenAI Deal Hits Legal Snag, FedEx Founder Fred Smith Dies, Lilly's Obesity Pill Matches Injections
Evelio Silvera
June 23, 2025
Good morning.
⚡ The Fast Five → Northern Trust BNY Merger Talks, Tesla's Retail-Focused Robotaxi Theater, Ive-OpenAI Deal Hits Legal Snag, FedEx Founder Fred Smith Dies, Lilly's Obesity Pill Matches Injections
🔎 Market Trends → Stocks finished mixed; investors brace for more Middle East news; US Futures Waver
And now…
⏱️ Your 5-minute briefing for Monday, June 23, 2025:
MARKET BRIEF
Before the Open
As of market close 06/20/2025.
Pre-Market
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Fear & Greed
Markets in Review
Markets Split as Middle East Tensions Simmer and Fed Eyes Easing
The Nasdaq dropped 0.5%, the S&P 500 slipped 0.2%, and the Dow eked out a 0.1% gain. Weekly moves were muted, with the Nasdaq up 0.2% and the S&P down 0.2%.
The Big Picture:
Geopolitical tension in the Middle East held markets in check, as investors parsed President Trump’s two-week diplomacy window before potential strikes on Iran. Oil cooled to $75/bbl, but held onto a weekly gain, reflecting lingering supply fears.
Fed Governor Christopher Waller signaled potential rate cuts as early as July, citing muted inflation impact from tariffs. That gave a lift to rate-cut hopes, even as the broader market hesitated.
Meanwhile, bond yields ticked lower, with the 2-year falling to 3.92%, showing traders are beginning to price in more dovish Fed action.
Market Movers:
Kroger (KR) popped 9.8% after raising its 2025 sales outlook—proof that pricing discipline and food inflation management can still reward.
Accenture (ACN) fell 6.9%, despite raising earnings guidance. Bookings dropped year-over-year, spooking investors who wanted stronger forward momentum.
Couchbase (BASE) surged 29% after announcing a $1.5B all-cash acquisition by Haveli Investments. Private equity’s appetite for software remains strong.
What They’re Saying:
“The Fed may be in a position to ease monetary policy as early as July… tariffs are unlikely to increase inflation significantly.” — Fed Governor Christopher Waller, on CNBC
WHAT WE’RE WATCHING
Events
Today: S&P Global - Flash Manufacturing Purchasing Managers' Index (PMI); Flash Services PMI - 9:45am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy
Earnings Reports
Today: KB Home, FactSet Research Systems
Tomorrow: FedEx, Carnival Cruise Line, BlackBerry Limited
MARKET BRIEF
Leading News
Meta's AI Dream Team: Smart Money or Desperate Gamble?
Photo Credit: Maria Shalabeivia
Why it matters:
Zuckerberg's $14.3 billion AI talent acquisition spree signals either visionary leadership or panic buying—with Meta shareholders' future hanging in the balance.
Zoom Out:
History suggests betting against Zuckerberg's bold moves is unwise. His $1 billion Instagram acquisition in 2012 looked overpriced until mobile advertising exploded. The $19 billion WhatsApp purchase seemed insane until messaging became the internet's backbone.
Now he's deploying similar audacity in AI, where Meta's Llama 4 models flopped spectacularly. The company desperately needs credible competition against OpenAI and Google's dominance in foundational AI models.
The talent war is fierce: OpenAI's Sam Altman claims Meta offers $100 million signing bonuses to poach his engineers. That's venture capital-level compensation for individual contributors.
Key Insights:
Scale AI's Alexandr Wang brings proven data infrastructure expertise—exactly what Meta needs to fix its model training pipeline and compete with ChatGPT's sophistication
Former GitHub CEO Nat Friedman and Safe Superintelligence's Daniel Gross add enterprise credibility to Meta's consumer-focused AI efforts, potentially unlocking B2B revenue streams
Capital expenditures jumped to $64-72 billion for 2025, with most directed toward AI infrastructure—a massive bet that could either cement Meta's AI leadership or crater margins
Market Pulse:
"The market is setting a rate here for a level of talent which is really incredible," said Meta CTO Andrew Bosworth, acknowledging the unprecedented compensation arms race.
Bull’s Take:
Meta (META) trades at reasonable valuations despite AI uncertainty, and Zuckerberg's track record of transformative acquisitions suggests patient investors could benefit from this calculated desperation. The downside is already priced in; the upside remains unlimited.
Headlines
Northern Trust shares jump on report of BNY merger talks (link)
Tesla Taps Retail Investors for Stage-Managed Robotaxi Launch (link)
Jony Ive Deal Removed from OpenAI Site Over Trademark Suit (link)
‘Heart and soul of FedEx’ Fred Smith dies (link)
Eli Lilly’s Obesity Pill Appears to Work as Well as Injected GLP-1s (link)
US semiconductor maker Wolfspeed to file for bankruptcy(link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to alifarhat79