VIDEO: Why We're Nicely Ahead of the S&P 500

In today’s Daily Rundown video, Chris Versace recaps the stock market’s performance this week and discusses which Portfolio holdings are leading it to move nicely ahead of the S&P 500 on a year-to-date basis. While we enjoy that, Chris also reminds us why, with May inflation data coming next week, we will continue to walk the prudent path when it comes to the Portfolio.

We also share what we’ll be looking for during Apple’s AAPL 2025 WWDC event next week, and why we’ll be following the IPO lockup expiration for ServiceTitan (TTAN) shares as well as after-market performance for this week’s Circle CRCL and Omada Health (OMDA) IPOs. 

Transcript

CHRIS VERSACE: Hey, folks, Chris Versace here. It is Friday, June 6.

And as we barrel toward the close of this first full week of June trading, we are enjoying, by one way or another, another positive week in the markets, with the S&P 500 up nearly 1.5% and the NASDAQ composite just up over 2%, as I tape this, with a few hours to go in the trading week.

Fortunately, we are also enjoying another nice week in the portfolio, which so far is outpacing the weekly improvement, I just touched about, for those two market barometers. And the portfolio is really benefiting from, yes, an overall increase in the number of positions. But the real standouts, I have to share, are Marvell, which is up double-digits just over the last few days Elastic, as well.

So that really reaffirms, in my view, the portfolios decisions to pick up more shares of both Marvell and Elastic earlier this week. If you missed those notes, please, please take a look at them.

But we're also seeing very nice moves on a week-over-week basis from Axon, NVIDIA, Universal Display, and Meta. And of course, I have to mention our newest holding, SuRo Capital.

But that's this week, and I just want you to say, please remember that we've got another wave of investor conferences next week, as well as that May CPI and PPI data coming at us next week.

As I've shared with you, just given what we've seen in the various May PMI reports, even today's May Employment report and the wage data that it showed, there are reasons to think that the May CPI and PPI data will not, let's just say, cooperate with the market and its recent move higher.

I would also share that because today is Friday, we should also be mindful, potentially brace for any weekend shenanigans by President Trump on the trade front.

So as we sit here and see that and see what's potentially ahead with the May inflation data, as we move into the week, I think that our position is going to be to tread carefully, especially if we see the market continue to melt up at the early part of next week. If we do see that, it could lead us to make a couple prudent moves with the portfolio, locking in some big gains, modestly doing some trimming.

But again, we'll have to see, what the start of the week brings. But I can promise you that given that wave of investor conferences, we will continue to connect the dots and update our thinking on existing holdings as needed, just like we did this week with Universal Display, Costco, Axon, and, as you've probably seen by now, Palantir.

Now, on that front of connecting the dots and looking forward, I want to talk about a new IPO that priced last night. That is Omada Health. And it priced not only above its initial target range, but it's also moving higher.

That joins the ranks of Circle's IPO, which did exactly that yesterday yesterday. But it also builds on the recent track record we've had with CoreWeave and other recent IPOs.

Now, we are going to want to follow the after market performance for the Circle IPO and the Omada Health IPO. But should they continue to mimic what we've seen over the last few weeks-- And by that, I mean moving higher-- it would tell us that the IPO window is opening further. Now, you know that we watch this closely as it relates to Morgan Stanley and Bank of America, because the larger number of deals that we see getting priced, the better the prospects are for their investment banking business, and those are very high margin businesses for both companies.

Remember too, though, that we prefer Morgan Stanley over Bank of America whenever we talk about investment banking, just because it's a larger driver of its overall profit potential compared to Bank of America. Nothing against Bank of America. It's just that from a mixed perspective, a surge in investment banking activity has a greater impact at Morgan Stanley.

One of the things that we are going to do, just given this improving IPO market, is we are going to revisit the IPO calendar for the next few weeks, and see if there's been a pull forward in the number of transactions, as people look to tap the market sooner, just given this improving climate. If we see that and based on what we see in these coming weeks, in terms of pricing of deals, we will likely have to revisit our current price targets for Bank of America and Morgan Stanley.

Now, that's something that we'll be looking at as we move into next week. But as we also think about next week, let's remember that we will have Apple's 2025 WWDC event on tap. And typically, this is a big event for the company, where they take the wraps off and showcase their next iterations of their various software platforms for iOS, macOS, iPadOS, and the like.

Now, we do expect them to do that. Rumor has it there might be some rejiggering in the way that they're numbering these various platforms, switching to an annual year. So, for example, they could be talking about their 2026 platforms compared to some of the other numbering conventions that they've used.

All well and good, and we will be interested in what they have to say and show with these updates. But candidly, given all that we've been hearing on the AI front, from various companies, what we're seeing on the enterprise adoption, government adoption, even new aspects for some consumer-facing applications, what we really want to hear is, what is Apple doing on the AI front, both in and around Apple Intelligence, but also, under the hood of these various software platforms?

So that'll be our key focus. And rest assured, we'll have a lot of comments coming to you as we think about what is shared during the keynote address, which again, is where Apple usually takes all the wraps off of what it's bringing to its various devices in the coming months.

Just sticking with next week, quickly, we also have the June 10 IPO lockup expiration for ServiceTitan shares. Now, I know we're not involved with ServiceTitan, but remember, our newest position, SuRo Capital, is involved with ServiceTitan, and this is one of the positions that we are looking for it to start to unwind once we move past the ServiceTitan IPO lockup date. Again, that's June 10.

So from our perspective, once we pass that date, the clock is going to start to tick for SuRo to begin unwinding that position. And that lays the groundwork for an eventual dividend announcement, which we think is one of the next catalysts for SuRo Capital shares. So that's what we'll be watching.

But I have to say, folks, before we get to any of that, you're going to have the weekly roundup later today, our usual Saturday signals, and a fresh helping of Sunday soup to dig through. So you're going to have a lot of reading to do over the weekend. Consider it your homework.

And with that, I'll say, let me get back to writing the weekly roundup, and I hope you have a wonderful weekend. And yes, rest assured, we will see you back here on Monday.

At the time of publication, TheStreet Pro Portfolio was long APPL.