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Public.com presents the rundown. Your daily market update in 10 minutes. My name is Zaydadmani, and today is Tuesday, June 9th. In today's episode, we'll talk about OpenAI filing for an IPO and what it means for the AI hype cycle. We'll also recap Apple's WWDC keynote and why investors weren't impressed with the new series. Then stick around to the end of the show to find out why some universities are about to cash in big on the SpaceX IPO. We got a great show for you today. Let's go. Markets bounce back. To start the week, The S&P 500 was up 3% while the Nasdaq was up nearly 1%. So the headline numbers were pretty decent. But under the hood, though, it was a mixed bag. Eight of the 11 sectors finished in the red. In fact, more than 300 stocks in the S P 500 closed lower yesterday, but the overall index still finished higher because tech and chip stocks were up big. Names like Intel, Micron and Marvell were up around 10%, making up for the big losses from Friday. And speaking of Marvell, they're going to be added to the S&P 500 later this month. Now zooming out, the big thing to watch moving forward is if the market rally will broaden out or will investors keep piling into chip stocks and other AI companies? Switching gears a bit, a quick update on the Iran situation. The war has now crossed 100 days and things are still in limbo. On one hand, you have President Trump saying last night that a peace deal with Iran could come in two or three days and that the Strait of Hormuz would reopen immediately after. But then, on the other hand, Iran and Israel literally attacked each other over the weekend. So who knows how much longer this is going to drag on for oil prices have settled in the low $90 range, which if I bet if you told someone two months ago that the Strait of Hormuz would still be closed in June, they'd probably expect prices to be much higher. At least I thought it would have. But still, oil prices are higher than what they were before the war started in late February. And, and that's led to inflation creeping back up. The April CPI report showed that inflation was running at 3.8%, which was the hottest inflation reading since 2023. And energy prices were a big reason for that. Now, tomorrow we're getting the May CPI report and then on Thursday, we get the PPI report, which measures wholesale inflation. So we'll get a fresh set of inflation data for the market to react to. We'll break down the CPI report on tomorrow's show, so make sure you guys are locked into the podcast and and tuning in every day to stay in the loop. Let's run through some headlines, starting with OpenAI. OpenAI has officially filed for an IPO. The company confidentially submitted its paperwork with the SEC on Monday and since it was a confidential filing, we won't get our hands on their financials until a bit later. Also, OpenAI didn't give a timing for when they planned to actually ipo. I got to imagine though, it's going to be pretty soon because they want to take advantage of the AI hype in the market right now before the music stops. You know, we now have three of the most valuable private companies in the world all racing to go public. SpaceX is IPOing this Friday at a valuation of around $1.8 trillion. Anthropic files to go public last week and now OpenAI this week. You know, I really wonder how the OpenAI IPO will go because this year Anthropic really stole OpenAI's thunder and overtook them in revenue and valuation. Not to mention, according to a report from the Wall street journal weeks ago, OpenAI missed their internal revenue targets as well. But you know, despite OpenAI's recent struggles, they seem to be making a comeback. I've heard a lot of good things about their Codex tool, which seems to be seeing enterprise adoption. And OpenAI is still by far the leader in consumer AI, with over 900 million weekly active users on ChatGPT. In fact, I think many people just know AI as Chat GPT and they aren't even aware of Claude or Gemini. So OpenAI is still in a pretty strong spot and I'm really looking forward to seeing what their financials look like with when the S1 drops, which hopefully will be soon. Big picture though, I do wonder how the Dynamics of the AI hype cycle will change once OpenAI and anthropic become publicly traded companies and they have to start reporting quarterly earnings now. Part of me is worried that it could mark the top of this cycle. I'm hoping I'm wrong though. We'll see what happens. First up though, we had to get through the SpaceX IPO Friday and depending on how that goes, that could set the mood for the rest of the summer. Let's shift gears and talk about another multi trillion dollar company, Apple. Apple kicked off WWDC yesterday and the big headline from the keynote was all the AI features coming to Siri. Apple's actually rebranding Siri to be called Siri AI and it's supposed to be way smarter. Now, I watched the keynote and they gave some decent demos that showed Siri doing things like identifying things in photos and having a back and forth conversation. Basically stuff that Google and Chat GPT have been doing for a while now. But the thing is, Siri is deeply integrated into the iPhone and it has access to all the data on your iPhone. So with these AI features, it can pull up a specific picture that you asked for or resurface a relevant text conversation or a relevant email. All the things that Chad, CBT and Claude and Gemini can't do because they don't have access to that information on your phone. Now, Apple did confirm that some of its new AI systems were built using Google's Gemini model. But Apple executives were very careful to say that they aren't using the same Gemini models that Google has released to the public. Apple used Gemini to then build their own custom AI models. Overall, though, I'd say it was a pretty lukewarm keynote. I mean, the market didn't love it either. Apple initially popped 3% during the keynote, but then faded, finishing the day down about 2%. I think one of the issues is that Apple didn't give a firm launch date for this new series. They just said fall of this year and it's going to be launching as beta. You know, keep in mind, Apple first showed off their AI features back in 2024 and they never shipped them. So I think investors are still skeptical and they probably expected something flashier from Apple this year. Personally, I think the best feature I saw from the keynote yesterday was their improved parental control that Apple was planning to roll out. As someone with two little kids, that was really nice to see and look as an Apple fanboy, I'm hoping that Siri gets good or at least usable. You know, let's talk about some stocks making moves today. Shares of the drug maker Neuvillent are surging this morning after the UK pharmaceutical giant G GSK agreed to acquire them for $10.6 billion. GSK is Britain's second largest drug maker and this deal is their largest in more than a decade. Usually GSK targets smaller acquisitions. Their last two oncology deals were for $1.9 billion in 2022 and then for $1.1 billion last year. But they're willing to spend over $10 billion to buy Nuvolent because Neuvillet is working on two drugs for late stage lung cancer treatments. And that could launch this year if approved by the FDA, which would be a big addition to GSK's portfolio, especially since they're about to lose exclusivity on their best selling HIV medication in 2028. So this deal is expected to offset a significant revenue drop for GSK while also accelerating their entry into the lung cancer space. Investors are loving this for Nuvoland, their shares are up more than 35% in reaction to this news, while GSK is flat today. Now, on the flip side, shares of Vail Resorts are moving lower after the ski resort operator cut its outlook for the second time this year. And they're blaming it on the weather. There was historically low snowfall levels across the west coast, which caused a lot of skiers to skip their ski trip this season. Industry wide visits to the Rockies region fell 24% from a year ago, which is the steepest drop in four decades. And not including the COVID shutdowns, of course. Total skier visits to the Vail resort locations fell 16% for the quarter and revenues fell 7% to $1.2 billion. And the guidance is just getting ugly. At the start of the year, Vail was expecting net income between 201 million and $276 million. Vail now expects full year net income between 128 million and $162 million. So that means the bottom end of the current forecast is nearly 4, 40% below where the top end started. So yeah, the lack of snow this season really put a dent in profitability. Now management says that ski visits usually bounce back after bad snow years, assuming the weather normalizes. So this might just be a one off year. Investors will have to keep an eye on the ski pass sales heading into next winter. Vail resort Stock is down about 4% today and down 17% over the past year. Let's wrap this the show with the fun fact. Some of the biggest winners of the upcoming SpaceX IPO will be university endowments. According to the Wall Street Journal, SpaceX is one of the most wildly held investments across universities in America. Now a quick explainer here. A university endowment is basically a school's giant investment portfolio. These endowments invest in things like stocks, bonds, private companies, real estate, venture funds, hedge funds, all that good stuff. And schools use the returns on that investment for things like scholarships, professor salaries, research buildings, and general operations. Well, it turns out many schools like the University of North Carolina and the University of Virginia and Stanford and many more have a sizable stake in SpaceX. Some of these schools invested early through venture funds like Peter Thiel's Founder Fund, which started backing SpaceX all the way back in 2008. And since SpaceX has been private for so long as and has seen its valuation skyrocket recently, no pun intended, these investments are now worth billions of dollars today. So these universities will see a huge return on their investment once SpaceX iPod later this week. And you know, the funniest part about all of this is that Elon Musk has spent the last few years dunking on universities and calling college overrated. And in some aspects I do agree with him, especially how expensive college has gotten. But yeah, it's those same universities that Elon has criticized are now about to cash in because of his rocket company. Anyways, we might have to do a deep dive on university endowments because, I mean, some of these are massive. Like Harvard has a over $50 billion endowment fund and my alma mater, University of Texas is also close to $50 billion. So yeah, these colleges are pretty much running a sizable hedge fund these days. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like five extra seconds, consider giving us a five star rating on Apple. So Spotify, YouTube, wherever you listen to your podcast, all that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike for all the work behind the scenes and we'll see you guys back here tomorrow.