—— Deadly Turbulence Hits Singapore Airlines Flight; Macy’s Beats Expectations as Operations Improve; S&P 500 Hits 24th Record High; Shareholders Oppose Musk’s $56B Package; Toll Brothers Sales Beat Forecast; Only 4% of NYC Rentals Are Affordable
1. Deadly Turbulence Hits Singapore Airlines Flight
ingapore Airlines issued a statement saying a flight from the UK to Singapore encountered extremely severe turbulence over Asia, resulting in the death of one passenger and injuries to many others. The plane was forced to make an emergency landing in Thailand.
The Boeing 777-300ER was carrying 211 passengers and 18 crew members. Photos on social media showed items and food scattered throughout the aisle.
Singapore Airlines reported that 18 passengers were hospitalized, and 12 others are being treated in a local hospital.
Turbulence-related fatalities are extremely rare in aviation history, as planes cruise at relatively stable altitudes for most of the journey.
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2. Macy’s Beats Expectations as Operations Improve
Department store Macy’s reported adjusted EPS of $0.27 for the first quarter, double the average analyst estimate. The company expects full-year EPS to reach $2.55, higher than its previous forecast.
However, same-store sales at Macy’s continue to decline, with revenue down 1.2% last quarter. The company needs to invest more in new merchandise, displays, and customer experience.
CEO Tony Spring said women’s shoes, men’s tailored clothing, and beauty products will be key focus areas.
The CEO believes that persistent inflation has made consumers more cautious about shopping, which is the main cause of revenue decline.
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3. S&P 500 Hits 24th Record High
On Wednesday, chip giant Nvidia—responsible for much of the U.S. stock market rally in recent months—will report earnings critical to market direction. Year-to-date, Nvidia stock is up over 90%, after tripling in 2023.
Today marked the 24th time the S&P 500 has hit a new record high. Multiple Fed officials are also scheduled to speak tomorrow, and inflation data over the next 3–5 months will be key. These events are expected to create major volatility.
Last week, Goldman Sachs’s market risk appetite index hit its highest level since 2021.
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4. Shareholders Oppose Musk’s $56B Package
Several Tesla shareholders—including Amalgamated Bank, SOC Investment Group, and six others—have urged fellow shareholders to vote down Elon Musk’s $56 billion compensation package.
They argue that Musk’s simultaneous leadership of five other companies is harmful to Tesla. They also plan to vote against keeping Musk’s brother, Kimbal Musk, as a company executive.
Tesla shareholders first approved Musk’s pay plan in 2018, based on market cap milestones. But this January, a judge rejected the deal, citing lack of shareholder understanding of key details.
Tesla will hold its annual meeting on June 13, where a second vote on Musk’s pay package will take place.
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5. 72% of Americans Feel Financially OK
A new Federal Reserve survey shows that as of October 2023, 72% of U.S. adults said their financial situation was at least “okay,” slightly below 73% in 2022 and lower than the 78% reported in 2021.
Two-thirds of Americans can cover a $400 emergency expense in cash, roughly the same as the prior year.
The survey also found that inflation and rising living costs are key reasons why many voters are switching support to Trump.
The share of Americans saying their financial situation has worsened dropped from 35% in 2022 to 31%.
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6. Toll Brothers Sales Beat Forecast
oday, U.S. homebuilder Toll Brothers announced that in the quarter ending April, new home orders rose 30% year-over-year to 3,041 units, beating expectations.
The company now expects to deliver 10,400 to 10,800 homes this fiscal year, up from prior guidance.
Adjusted home sales gross margin fell slightly to 28.2%, but still exceeded the expected 27.6%.
Toll Brothers properties target high-net-worth buyers who typically pay in cash, making them less affected by high interest rates. In the past 12 months, Toll’s stock has nearly doubled—outperforming the S&P Homebuilders Index’s 47% gain.
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7. Only 4% of NYC Rentals Are Affordable
A new report from Zillow shows that the average New Yorker earned less than $89,000 last year, meaning they could afford rent of up to $2,216/month under typical financial guidelines.
In 2023, upfront rental costs—including broker fees, deposits, and first month’s rent—reached $10,454. Based on average earnings, only 4.4% of available NYC rental units were considered affordable.
Median rent in NYC rose 8.6% to $3,475 last year, while average wages grew just 1.2%. The city faces a shortfall of 380,000 rental units—more than the combined deficits of San Francisco, Chicago, and Boston.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.