Today's Scoop:

Hey friends, hope you had an awesome weekend. Don’t miss last weekend’s Weekly Scoop or Stock Picking Explained.

Here’s what you need to know today…

1. Companies started the year better than expected.

2. The US manufacturing sector might be turning around.

3. An economic rebound might mean more inflation.

S&P 500: 4,167.87
1Mo: +1% | 1Yr: 0% | 5Yr: +56%

The market didn't move much today despite the 2nd-biggest bank failure in US history over the weekend. First Republic Bank suffered a massive bank run [🤓] when Silicon Valley went under, so it has been on crisis watch since. Over the weekend, the feds stepped in and sold it to JPMorgan Chase. First Republic clients have already become Chase clients today.

Corporate financial reports have been better than feared. We’re halfway through first quarter updates, and so far, 80% of the market has reported better profits than investors expected. Overall, corporations are on track to make 4% less profit than a year ago.

Manufacturing may be rebounding. The S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) indicated an expansion in business activity for the first time in six months in April.

The rebounding economy may be keeping inflation around longer. The Labor Department reported the core Personal Consumption Expenditures (PCE) Price Index, policymakers’ main inflation gauge, rose 0.3% in March. Food and energy prices declined, but other living costs kept creeping higher and slowed consumer spending.

Click to dig in & vote your reaction, see how others feel

• JPMorgan buys failed First Republic Bank after bank run [🤓]

• Exxon Mobil pumps record first-quarter profits

• Snapchat’s sales start disappearing

• Amazon slashes costs as cloud slows

• Pinterest partners with Amazon to boost shopping revenue

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Bank Runs

When too many people try to withdraw their money from the same bank at the same, that's called a bank run. Banks don't typically hold much cash on hand. They take your deposits and lend that money out to clients. They also often buy investment assets rather than keep the money in cash.

If the bank receives too many withdrawals too quickly, it must sell its investment assets to cover the withdrawals. If that doesn't cover the withdrawals, the bank may risk closure. No bank can survive a bank run, so customers must remain confident in the bank's financial stability.

The Federal Deposit Insurance Corporation (FDIC) insures all deposits up to $250,000 per banking institution to provide a baseline of trust for depositors.

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