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An Alternative To Money Market Funds

June 2026

MARKET OVERVIEW
The US stock market continues to drive higher even as the battle in Iran rages on. As of the close of trading on June 5, the Dow Jones Industrial Average is up 5.83% for 2026. Meanwhile, the S&P 500 is up 7.86% and the Nasdaq is up 10.62%, year to date. The impact has also been swiftly seen in the energy markets. Both Brent crude oil and WTI ended the week trading lower than $100 per barrel.

Some items of note: The Attorneys General of a number of states are planning to file a lawsuit to block the acquisition of Warner Brothers Discovery by Paramount Skydance, GM plans to lay off  hundreds of IT workers, Beazer Homes has rejected a takeover proposal by Dream Finders Homes, eBay rejected a takeover proposal by GameStop, spirits maker Brown-Forman has spurned a takeover offer by Sazerac, Walmart is planning a series of layoffs to streamline operations, JP Morgan plans to name new senior executives to its investment banking division,, Allegiant Air completed its merger with Sun Country Airlines, Next Era Energy will acquire Dominion Energy, Meta announced plans to cut 8,000 jobs, Intuit plans to cut 17% of its workforce,  Imax is reportedly exploring a sale, Mark Cuban has exited his stake in Bitcoin, Fedex Freight was spun off and joined the S&P 500 while Marvell Technology and Flex will be added to the S&P 500 on June 22 replacing Pool and Campbell’s Soup.

ECONOMIC SUMMARY
Friday’s Nonfarm Payroll report was much stronger than expected as 172,000 jobs were added. The Labor Participation Rate remained steady at 61.8% while the U-6 Unemployment rate fell slightly to 8.1%. The next unemployment report will be released on Thursday, July 2.

FEDERAL RESERVE
The next Federal Reserve meeting will be held June 16-17. Kevin Warsh will  host his first meeting as Fed Chairman at this meeting. Jerome Powell’s term ended on May 15.

STOCKS TO WATCH
In the coming days, the biggest IPO in history will take place as SpaceX goes public on the Nasdaq. In fact, SpaceX will be added to the Nasdaq 100 on its first day of trading. It will trade with the ticker SPCX..Later this year, AI darlings Anthropic and Open AI will debut as public companies.

Already, warning shots are being fired over the SpaceX IPO. At present, the company is not profitable but the IPO is heavily oversubscribed. Standard & Poors Index Committee rejected a proposal to add SpaceX to the S&P 500 because it fails to meet the profitability requirement. To be included in the S&P 500, a company must be profitable for the past year as well as the most recent quarter.

Famed investor Peter Lynch once remarked “...IPO stands for IT’S PROBABLY OVERVALUED”. Morningstar’s Chief Equity Strategist Michael Field recently told CNBC that the SpaceX IPO is highly overvalued. Thus, he recommended that investors wait until after it begins trading before acquiring a stake in the shares. Caveat Emptor!!

My weekly radio show is on holiday and should return soon on WWPR 1490 AM. My prior radio shows and columns are available here.

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