Today's Scoop:

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Hey friends, hope you caught our new Weekly Scoop series on Friday and our startup investing piece yesterday, answering all your questions about investing in our round before the 24th.

Here's what you need to know today...

1. Big banks are feeling good despite last month's panic.

2. The real estate market might be turning a corner.

3. High prices have started eating into consumer spending.

S&P 500: 4,151.321Mo: +5% | 1Yr: -5% | 5Yr: +55%

The market floated upward today as investors found hope in the first corporate financial reports of the quarter.

Big banks are healthy. While they cited some looming clouds, they see resilience among consumers and small businesses. Don't miss the scoops below.

Inflation's making people spend less. The Commerce Department reported retail spending broadly fell 1% in March, though shoppers still spent more than they did a year ago. The University of Michigan's April consumer sentiment index increased in April, but respondents said they expect inflation to increase this year. Consumer spending accounts for 70% of the economy, so everyone's watching to see when rising prices truly stall spending.

The real estate market might be turning a corner. Confidence among homebuilders improved for a second straight month in February after twelve months of declines. The National Association of Home Builders reported the highest jump in contractor sentiment since the pandemic. Low construction enthusiasm slows construction, leading to fewer homes on the market and higher prices.

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• Moderna's breakthrough cancer vaccine

• Walmart dumps Bonobos on discount

• JPMorgan Chase earns record revenue [🤓]

• Wells Fargo worries about commercial real estate

• Boeing suffers another production freeze

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Bank Business Models

Wall Street bank business models can be opaque and confusing. They mainly earn revenue from lending, managing investments, executing trades, and brokering corporate deals.

The traditional banking business model entails taking deposits, paying some interest to the depositor, then lending that money to someone else at some higher interest rate. Banks profit from the spread between the rate they pay the depositor and what they earn from their loans.

Investment banking isn't the investing arm of the bank. Investment banks assist companies with large transactions, earning fees for their advice. In the same way that a real estate broker earns a commission for helping sell your house. Investment banks earn a hefty commission for helping you value and sell your company to other companies or the public (IPO).