Cover:
-Barron's Top CEOs list has seen companies with attractive operating performance and stock returns edge out the S&P 500 by around a percentage point. The list focuses on leaders whose recent actions have put their companies in a better position. Companies like Duolingo, Brinker International, Casey's General Stores, Philip Morris International, Garmin, United Airlines Holdings, Palantir Technologies, Capital One Financial, and TJX Cos. have all made significant strides in their respective industries.
Luis von Ahn at Duolingo has used artificial intelligence and viral marketing to turn digital language lessons into the talk of Wall Street, resulting in shareholders making five times their money in three years. Some examples include AT&T stock, which is outperforming. And CEO John Stankey has moved the company out of show business and into broadband service. Kevin Hochman at Brinker International has turned Chili's into the envy of the casual-dining industry by taking aim at McDonald's. Darren Rebelez has turned fuel seller Casey's General Stores into a small-town pizza champ, boosting profit margins.
Interview:
-No update
Tech Trader:
-Microsoft and OpenAI, two of the world's most powerful artificial intelligence companies, have been reportedly in a heated debate over their relationship. Initially, the two companies were symbiotic, with Microsoft having access to all of OpenAI's intellectual property, including its catalog of models that underpin its Copilot products. However, OpenAI recently indicated it is willing to get down in the mud, indicating that it is willing to get down in the mud. OpenAI's reorganization in 2019 led to Microsoft investing $1 billion in OpenAI, which fueled the release of ChatGPT in November 2022. Since then, the bills have added up due to the high cost of scaling AI. The ongoing debate between the two companies could potentially lead to a messy and contentious outcome.
The Trader:
-The nuclear energy renaissance in the US is benefiting American companies that export their technology overseas. The Trump administration's goal to quadruple the nation's reactor fleet by 2050 is ambitious, but US nuclear companies are making significant profits on exports. Cameco, a uranium miner and nuclear tech company, announced a boost to its adjusted earnings due to plans for two new reactors in the Czech Republic. Other winners include Brookfield Asset Management, GE Vernova, and BWX Technologies. Cameco owns 49% of Westinghouse, a Pennsylvania company that designs the AP1000 reactor. In the Czech Republic, a Korean company is building two reactors based on the AP1000 technology and paying Westinghouse to use them.
-Coach parent Tapestry has seen a 25% rise in shares this year, reaching $82.76, a 2% gain on the S&P 500 index. Analyst Aneesha Sherman reiterated a $100 price target on Tapestry, citing its ability to attract and retain younger shoppers, such as Gen Z or millennials. She noted that 4 million new customers have shopped at Coach over the past six months, with half of them being Gen Z or millennials. Coach's average unit retail is much lower than European peers and has widened, giving the company room to boost its own Average Unit Sales (AURs) without pricing out consumers. This has allowed the company to boost its own AURs 18 out of the past 20 quarters without pricing out consumers.
Features:
-Federal Reserve Governor Christopher Waller has indicated that the economy is in a "good spot" for a summertime interest-rate cut, aligning with President Donald Trump's calls for lower rates. Trump is close to naming a successor for Fed Chair Jerome Powell, whose term ends in May 2026. Waller said he would be willing to reduce borrowing costs as early as July, despite uncertainty linked to tariffs and global oil prices. Inflation is running very close to the central bank's 2% target, allowing for a "good-news rate cut" this summer. However, the process would be gradual to monitor inflation. The Fed has been in "wait-and-see" mode since January, as officials continue to gauge the fallout from Trump's fluctuating tariff policy. The Fed unanimously voted to keep its benchmark lending rate steady at 4.375% for the fourth consecutive meeting on Wednesday, with Powell stressing the high levels of uncertainty clouding the central bank's projection.
-President Donald Trump has reaffirmed his commitment to immigration raids at work sites, but enforcement officials continue to target unauthorized immigrants at work. On Tuesday, the US Immigration and Customs Enforcement led an immigration raid at Delta Downs, a hotel, casino, and racetrack near Vinton, Louisiana. The operation targeted workers in the stables at the racetrack and those who cared for thoroughbred horses. Trump has acknowledged the potential labor and economic consequences of raids targeting workplaces and emphasized the need to protect farmers and leisure hotel owners. Delta Downs, owned by Boyd Gaming, complies fully with federal labor laws and has no Delta Downs team members involved in the matter. Boyd spokesman David Strow stated that the company will cooperate with law enforcement as requested.
Europe:
-European powers have urged Iran to revive diplomatic efforts with the US to find a solution in the standoff over its nuclear program. British, French, German, and EU top diplomats held talks in Geneva with Iranian Foreign Minister Abbas Araghchi, giving diplomacy a chance one week after Israel began its bombardment. German Foreign Minister Johann Wadephul expressed hope for further progress but did not mention a breakthrough. Araghchi, making his first trip outside Iran since the bombardment began, said Tehran was ready to "consider diplomacy" again only once Israel's aggression is stopped. He made it clear that Iran's defense capabilities are not negotiable.
Emerging Markets:
-No update
Commodities:
-The ongoing conflict between Israel and Iran has caused oil prices to rise, but the pressure on global energy costs is expected to fade soon. The risk of a sudden shortage of oil supply in the global market is usually exaggerated, as geopolitical events rarely create a shortage of crude. Iran accounts for 3% of global oil supply, but prices can jump significantly if only a small portion of what is expected to reach the market doesn't make it. A cutoff of the Strait of Hormuz would be an even bigger problem, as it passes through about a quarter of the world's oil. However, shipping would likely adjust as a result, much like when Houthi rebels in Yemen stepped up attacks on ships in the Red Sea a year ago. Despite a week of heightened hostilities, there is no evidence yet that any of Iran's oil industry has been seriously damaged. TD Securities analyst Daniel Ghali said that Brent crude at $75/bbl is already consistent with the risk premium historically required for the typical conflict in the Middle East, but tail risks remain elevated.
Streetwise:
-The ongoing conflict between Israel and Iran has caused oil prices to rise, but the pressure on global energy costs is expected to fade soon. The risk of a sudden shortage of oil supply in the global market is usually exaggerated, as geopolitical events rarely create a shortage of crude. Iran accounts for 3% of global oil supply, but prices can jump significantly if only a small portion of what is expected to reach the market doesn't make it. A cutoff of the Strait of Hormuz would be an even bigger problem, as it passes through about a quarter of the world's oil. However, shipping would likely adjust as a result, much like when Houthi rebels in Yemen stepped up attacks on ships in the Red Sea a year ago. Despite a week of heightened hostilities, there is no evidence yet that any of Iran's oil industry has been seriously damaged. TD Securities analyst Daniel Ghali said that Brent crude at $75/bbl is already consistent with the risk premium historically required for the typical conflict in the Middle East, but tail risks remain elevated