"Owning stocks is like having children—don’t get involved with more than you can handle."- Peter Lynch
This memorable analogy by Peter Lynch reminds investors that each stock demands time and attention to truly understand its potential. Trying to oversee too many positions can lead poor decisions.
To succeed, focus on a handful of quality investments you can thoroughly research and monitor.
Market Wrap
Fiscal Bill Fears, Fed Tease and Bitcoin All-Time High
House Approves 2025 Reconciliation Package:
On May 22, the U.S. House narrowly passed the “One Big Beautiful Bill” reconciliation act—including roughly $4.5 trillion in tax cuts and new spending—which renewed investor anxiety over the federal deficit and helped push 10-year Treasury yields higher, putting pressure on equities.
Governor Waller Signals Potential Rate Cuts in H2 2025:
Fed Governor Christopher Waller told Fox Business on May 22 that if Trump-era tariffs ease to around 10% by July, the Fed could be in position to start cutting interest rates in the second half of 2025. He stressed that tariff developments will be a key input to the timing and pace of future policy easing.
Weekly Jobless Claims Fall:
The Labor Department reported that initial unemployment benefits fell by 2,000 to a seasonally adjusted 227,000 for the week ending May 17, below economists’ forecasts and signaling that firms are holding onto workers despite economic uncertainty.
Existing Home Sales Slip:
The National Association of Realtors said existing-home sales declined 0.5% in April to a 4.00 million annualized rate—the slowest April pace since 2009—as higher mortgage rates and rising inventory weighed on buyer activity.
Bitcoin Hits New High:
Bitcoin vaulted 3.4% to an all-time peak of $111,965.62 on renewed crypto optimism and strong institutional inflows.
Intuit Inc. shares rose 8% in after-hours trading after the company reported solid quarterly results and raised its full-year guidance, underscoring strong demand for its financial software products.
Snowflake Inc. shares surged after the company raised its product revenue outlook, signaling stronger-than-expected demand for its cloud data services.
Ross Stores, Inc. shares plunged 11% in extended trading after the off-price retailer withdrew its full-year forecast due to growing tariff pressures, despite reporting solid first-quarter results.
Deckers Brands shares tumbled 15% in extended trading despite beating EPS estimates, as the company’s full-year guidance fell short of analyst expectations.
First Solar, Inc. shares dropped 4.3% as investors reacted to provisions in the new tax bill that are expected to end several green-energy subsidies, weighing on solar sector profitability.
