Good morning!

I hope you enjoyed the long Memorial Day weekend and were able to spend time with friends and family. It may be a shortened week on Wall Street, but Wednesday's earnings report from NVIDIA is more than enough to make this week significant. Here's what's happening ...

• More than 350 companies report earnings this week, with one company ruling them all. Shares of NVIDIA jumped this morning as traders looked forward to the chipmaker's upcoming earnings report on Wednesday. The company has consistently surpassed earnings and revenue targets in recent quarters. However, investors' high expectations for the stock could lead to price volatility during after-hours trading. Other companies reporting Wednesday include Salesforce, Synopsys, and HP. Thursday numbers are expected from Costco, Dell Technologies, and Marvell, followed by a quiet Friday for earnings. *

• Tesla's struggling in Europe, with sales dropping 49% in April compared to last year, even though battery-electric car sales overall jumped by 27.8%. The company’s upgraded Model Y isn’t making much of a splash, and it's not helping Tesla regain ground in the region. Meanwhile, total car sales in Europe dipped slightly—down 0.3%—but electric and plug-in hybrid vehicles saw solid growth, according to data from the European Automobile Manufacturers Association (ACEA). This marks the fourth straight month of declining sales for Tesla in Europe, as the brand faces increased competition from local and Chinese automakers, along with some negative sentiment toward CEO Elon Musk’s political views. As a result, Tesla’s market share in the region shrank from 1.3% last year to just 0.7%. Not an easy road ahead for them. **

• The National Association of Home Builders’ pending-home-sales report drops this Thursday, tracking contracts signed but not yet finalized. April’s report showed some gains, though that might just be a rebound from winter weather. Wall Street is expecting a 1% dip, and the report will likely highlight interest rates as a major concern. Mortgage rates were hovering around 7% last Friday—up from 6.6% at the end of March—making affordability a huge challenge for buyers. It’s been a tough year for mortgage rates. Big homebuilders have had to offer subsidies to keep deals from falling apart, but even then, many sales haven’t made it to closing. In April alone, roughly 56,000 deals—one in seven home sales—fell through, according to Redfin. That’s the highest cancellation rate the real estate firm has reported since the pandemic in 2020. Definitely not smooth sailing for the housing market. ***

The financial advisors at Miramontes Capital diligently keep up with anything that can impact our clients' finances and tap into more than 175 years of combined investment experience. We do our all to keep your money protected and growing. If you think you might benefit from our financial experience and oversight, contact us today for a FREE, no-obligation consultation. Just call (800) 460-1595. Until next week...

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