📈 Apple's $6.4B Design Defection

Good morning.

⚡ The Fast Five → Hinge Health IPO Hits Range, Nike Returns to Amazon Sales, AT&T Buys Lumen for $5.75B, Cigna Caps Weight-Loss Drug Costs, Walmart's AI Secrets Accidentally Leaked

🔎 Market Trends → Wall Street stocks tumble as worries mount about US debt; U.S. Futures Dip as Rally Fades

🚨 Start Your Day with Market Movers: Opening Bell LIVE on FinTech.tv from 9-10AM EST

And now…

⏱️ Your 5-minute briefing for Thursday, May 22, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Markets Flinch at Tax Jitters, But Tech Keeps Its Cool

The S&P 500 dropped 1.6%, snapping a modest rally, while the Nasdaq fell 1.4% and the Dow shed 1.9%. Rising bond yields and a contested tax bill shook sentiment across nearly all sectors.

The Big Picture:

Wall Street stumbled Wednesday as fiscal alarm bells rang louder. President Trump's proposed tax-and-immigration bill stirred concern it could inflate the deficit by $2.3 trillion over the next decade, according to the CBO.

Yields surged: the 10-year Treasury hit 4.60%, its highest level since March. Investors are betting that if fiscal restraint doesn’t show up in Washington, the bond market will force the conversation.

Despite the noise, tech offered a calming hand. Alphabet (GOOG) led the S&P 500, proving once again that product innovation can steady nerves when macro worries rattle the board.

Market Movers:

• Alphabet (GOOG) rose 2.9% after unveiling "AI Mode" — a conversational, chatbot-style search feature poised to drive fresh engagement and possibly ad revenue.

• Target (TGT) slid 5.2% as earnings fell short and the retailer cut its full-year guidance, citing tariff headwinds and hesitant consumers.

• VF Corp (VFC) tumbled 15.8% on a weak quarter, largely driven by fading demand for Vans. Even stable brands stumble in shaky macro environments.

• UnitedHealth (UNH) dropped 5.8% amid resurfaced allegations over care practices. The DOJ previously declined to pursue the matter.

What They’re Saying:

“This tax package is unlikely to pass the Senate absent big modifications.”
— Derek Holt, Head of Capital Markets Economics, Scotiabank

WHAT WE’RE WATCHING
Events

• Today: Department of Labor - Unemployment Claims - 8:30am

  Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

• Today: S&P Global - Flash Manufacturing Purchasing Managers' Index (PMI); Flash Services Purchasing Managers' Index (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: Intuit, Ross Stores, Ralph Lauren Corporation, BJ’s Wholesale Club, Autodesk, Copart, Workday, Lionsgate Studios

• Tomorrow: Booz Allen Hamilton, Vroom, Toro, Coca-Cola, MINISO

MARKET BRIEF
Leading News

Apple's Design Exodus Signals the Next Tech Revolution

Why it matters:

When your star designer defects to the competition with a $6.4 billion war chest, it's time to reassess your moat—and your stock allocation.

Zoom Out:

Jony Ive's move from Apple's (AAPL) inner circle to OpenAI's hardware division represents more than corporate musical chairs. It's a seismic shift that echoes the smartphone revolution of 2007, when established players like BlackBerry learned too late that disruption doesn't knock politely.

The math is sobering: Apple's own services chief, Eddy Cue, admits AI devices could replace the iPhone within 10 years. Meanwhile, Apple Intelligence remains dependent on OpenAI's ChatGPT for queries it can't handle—a dependency that now looks increasingly precarious.

Historical precedent suggests that when iconic designers jump ship with this much backing, they're not chasing fool's gold. Remember: Ive didn't just design pretty gadgets; he architected the hardware foundation for Apple's $3 trillion market cap.

Key Insights:

• The talent drain is real: Three key Apple design veterans (Scott Cannon, Tang Tan, Evans Hankey) are joining OpenAI full-time, bringing institutional knowledge that money can't buy.

• First-mover advantage matters: While early AI hardware attempts (Humane's $700 pin, Rabbit's $199 device) flopped spectacularly, Meta's Ray-Ban glasses have moved 2 million units—proving consumer appetite exists for the right execution.

• Apple's window is narrowing: Google's Android XR and partnership with Warby Parker (WRBY) signals the race is accelerating, while Apple's major Siri upgrades remain delayed.

Market Pulse:

"AI is a new technology shift, and it's creating new opportunities for new entrants." —Eddy Cue, Apple Services Chief

Bull’s Take:

Smart money recognizes that Apple's $200 billion cash hoard and ecosystem lock-in provide formidable defensive moats, but this Ive defection demands portfolio recalibration. Consider trimming overweight AAPL positions while adding exposure to AI infrastructure plays—disruption creates winners and losers, and the scoreboard is still blank.

Headlines

• Hinge Health prices IPO at $32, the top end of expected range (link)

• Nike to resume selling directly on Amazon for first time since 2019 (link)

• AT&T agrees to buy Lumen's consumer fiber business for $5.75 billion (link)

• Cigna announces new deal for copay caps on Eli Lilly and Novo Nordisk weight loss drugs (link)

• Walmart AI details leaked during Microsoft Build conference (link)

• CoreWeave shares soar 19% after $2 billion debt offering (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin Hits New Record High, Surging to $109.4K (link)

• Solana's Seeker Phone Coming in Early August Along With SKR Token (link)

• White House crypto czar David Sacks says stablecoin bill will unlock ‘trillions’ for U.S. Treasury (link)

DAILY SHARE
On the Socials