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- 📈 Constellation's 15% Meta Pop
📈 Constellation's 15% Meta Pop
Robinhood Buys Bitstamp for $200M, Neuralink Raises $650M for Trials, Applied Digital Signs $7B, CoreWeave Lease, Snowflake Acquires Crunchy Data $250M, Disney Cuts Hundreds Amid Struggles
Evelio Silvera
June 03, 2025
Good morning.
⚡ The Fast Five → Robinhood Buys Bitstamp for $200M, Neuralink Raises $650M for Trials, Applied Digital Signs $7B, CoreWeave Lease, Snowflake Acquires Crunchy Data $250M, Disney Cuts Hundreds Amid Struggles
🔎 Market Trends → S&P closes higher on trade hopes, Nvidia lifts Nasdaq; [HEADLINE 2]
And now…
⏱️ Your 5-minute briefing for Tuesday, June 3, 2025:
MARKET BRIEF
Before the Open
As of market close 06/02/2025.
Pre-Market
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Fear & Greed
Markets in Review
Steel Titans Surge as Trump and Xi Eye Trade Truce
Stocks closed higher Monday, buoyed by hopes for renewed U.S.-China dialogue. The Nasdaq gained 0.7%, while the S&P 500 added 0.4%. The Dow ticked up 0.1%. Energy led the way; industrials lagged.
The Big Picture:
Markets breathed easier on word that Trump and Xi could soon speak directly, raising hopes of easing tariff tensions. While both sides continue to trade accusations, investors are betting that talks beat tweets.
Metal stocks rocketed after Trump floated doubling tariffs on steel and aluminum imports, creating a bullish setup for domestic producers with idle capacity to spare.
Crude oil also rallied, up 3.6% to $62.98/bbl, as OPEC+ signaled stable production hikes, easing fears of oversupply. Precious metals glistened too—gold surged 2.8%, silver up 5.7%, riding investor demand for geopolitical hedges.
Market Movers:
Cleveland-Cliffs (CLF) soared +23% as tariffs revived prospects for U.S. steel mills. UBS says 78% utilization leaves room for more domestic output.
Steel Dynamics (STLD) and Nucor (NUE) jumped 10% each, with investors pricing in long-term production expansion.
Science Applications (SAIC) tumbled −13% after missing estimates and warning of government contract volatility.
Blueprint Medicines (BPMC) popped +26% on a $9.5B buyout offer from Sanofi (SAN), which seeks to beef up its immunology pipeline.
What They’re Saying:
“Sustained 50% tariffs open the door for the reintroduction of previously unprofitable idled capacity.”— UBS analysts on U.S. steel outlook
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Job Openings and Labor Turnover Survey (JOLTS) Opening - 10:00am
Why You Should Care: Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity
Earnings Reports
Today: Dollar General, Hewlett Packard Enterprise, Ollie’s Bargain Outlet, CrowdStrike, Asana
Tomorrow: Dollar Tree, Five Below, MongoDB, ChargePoint Holdings, Genesco
MARKET BRIEF
Leading News
Meta's Nuclear Gambit Sparks 15% Rally in Power Play Worth Watching
Photo Credit: Julio Lopez
Why it matters:
Big Tech's nuclear pivot is creating tangible value for utilities, turning existential threats into 20-year revenue streams with measurable market impact.
Zoom Out:
The behavioral finance textbooks warn us about herding, but sometimes the herd spots genuine value before the stragglers. Meta's (META) 20-year commitment to buy 1.1 gigawatts from Constellation Energy's (CEG) Clinton plant isn't just corporate virtue signaling—it's a calculated bet on AI's insatiable appetite for reliable power.
Constellation's 15% pop reflects more than momentum trading. The deal transforms a facility facing premature closure into a cash-generating asset with visibility through 2047. That's the kind of certainty that makes CFOs sleep better and dividend checks more predictable.
The nuclear renaissance isn't happening in a vacuum. Amazon, Google, and Microsoft have all inked similar deals, creating a new asset class where utilities become essential infrastructure for the digital economy rather than stodgy bond proxies.
Key Insights:
The Math Works: At current wholesale power prices, a 1.1-gigawatt output generates roughly $400-500 million annually—providing Constellation substantial cash flow certainty in an otherwise volatile commodity business
Regulatory Tailwinds: Trump's recent executive orders targeting nuclear deployment create a more favorable environment for plant extensions and new construction, potentially expanding this model industry-wide
SMR Optionality: Constellation's mention of small modular reactors at the Clinton site hints at future expansion opportunities that could multiply the initial investment thesis
Market Pulse:
"Sometimes the most important part of our journey forward is to stop taking steps backwards," said Constellation CEO Joe Dominguez—a refreshingly honest admission that preservation of existing assets often trumps flashy new ventures.
Bull’s Take:
Smart money follows predictable cash flows, and 20-year utility contracts backed by trillion-dollar tech giants represent exactly that kind of boring-but-beautiful investment stability. For patient investors, Constellation's transformation from potential closure candidate to essential AI infrastructure provider offers a compelling risk-adjusted return profile in an increasingly power-hungry economy.
Headlines
Robinhood Completes $200 Million Bitstamp Deal (link)
Musk's Neuralink raises $650 million in latest funding as clinical trials begin (link)
Applied Digital and CoreWeave ink 15-year lease worth $7 billion (link)
Universal, Warner and Sony Are Negotiating AI Licensing Rights for Music (link)
Snowflake to buy database startup Crunchy Data for about $250 million (link)
Disney lays off hundreds in film, TV as industry woes linger (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to wallstmemes
All content provided by Investor Lookout and Bull Street is for informational and educational purposes only and should not be taken as trading or investment recommendations.
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