Succinct Summation of the Week's Events

Succinct Summation of the Week's Events:

Positives,

1)The May US manufacturing and services composite PMI rose to 52.1 from 50.6 with both components higher m/o/m with the former rising to 52.3 from 50.2 and the latter at 52.3 from 50.8. The bottom line from S&P Global, “Business confidence has improved in May from the worrying slump seen in April, with gloom about prospects for the year ahead lifting somewhat thanks largely to the pause on higher rate tariffs…However, both sentiment and output growth remain relatively subdued, and at least some of the upturn in May can be linked to companies and their customers seeking to front run further possible tariff related issues, most notably the potential for future tariff hikes after the 90 day pause lapses in July.” And to sum up on pricing, “The overall rise in prices charged for goods and services in May was the steepest since August 2022, which is indicative of consumer price inflation moving sharply higher.”

2)Initial claims fell to 227k from 229k and that was 3k below expectations. The 4 week average is now 232k vs 231k in the week before.

3)New home sales in April, measuring contract signings, totaled 743k, 48k above expectations but completely offset by a 54k downward revision to March to 670k.

4)From BJ's Wholesale: "The drivers of our business remain strong. Membership continues to grow nicely. Our continued improvements in merchandising and digital convenience are driving traffic, and we're gaining share in our clubs and gas stations."

5)From Williams Sonoma: Comps rose 3.4% y/o/y with all brands positive. "In the quarter, we saw an acceleration of the positive comp trend coming out of Q4, despite consumer distraction with tariffs, continued geopolitical uncertainty, and no material improvement in the housing market."

6)From Advance Auto Parts: "After a challenging start to the year for the industry, we began to see demand rebound in late February led by our Pro business. For the quarter, Pro grew in the low single digit range, including 8 consecutive weeks of positive comparable sales growth in the US. This positive momentum in Pro has continued during the first four weeks of Q2, driven by our focus on providing exceptional service."

7)From Ralph Lauren: Both top and bottom line exceeded their expectations. "This strong performance was broad based, driven by every geography and channel. For the full year, we delivered 8% top line growth, including record revenues for our international businesses, Europe and Asia, which together now comprise the majority of total company revenues."