Good Morning! Roaring Kitty’s net worth has gone from $58k to nearly $300 million and could hit $1 billion soon. Job openings fell to the lowest level since February 2021. Instagram is testing unskippable ads. Elon Musk reportedly diverted thousands of AI chips from Tesla to X. And private equity says it has the data to make a push into sports. Plus the best day trips from NYC.

Reminder that the AI webinar by Harvard Business Review-AS, sponsored by Datasite, is tomorrow, June 6th. Register here.

_{SQUEEZ OF THE DAY}

New Stock Exchange Dropping Soon

On Monday morning, a "technical issue" at the New York Stock Exchange halted trading for over 40 major stocks, causing Berkshire Hathaway stock to drop by 99.997%.

By Tuesday evening, news emerged that a group backed by BlackRock and Citadel Securities is planning to launch a new national stock exchange in Texas.

The Texas Stock Exchange (TXSE) has raised ~$120 million and aims to begin operations in 2025, hosting its first listing in 2026.

The exchange seeks to attract listings of exchange-traded products and provide a cost-effective alternative amid rising compliance costs at NYSE and Nasdaq, particularly targeting newer regulations like Nasdaq's board diversity targets.

This initiative responds to growing dissatisfaction with the regulatory burdens imposed by existing exchanges. TXSE’s backers believe a new exchange can foster innovation and reduce costs for companies looking to go public.

Takeaway: Financial heavyweights BlackRock and Citadel are definitely striking the NYSE while the iron is hot. TXSE aims to challenge the dominance of NYSE and Nasdaq, which, let's be real, haven’t really innovated much over the past decade. BlackRock and Citadel have the resources and firepower to build a formidable competitor.

_{PRESENTED BY DATASITE}

Is Your Business Ready For Gen AI?

Market research. M&A acceleration. Content creation.

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_HEADLINES

Top Reads

• How Roaring Kitty’s wealth went to nearly $300 million (CNBC)

• Job openings fall to the lowest level since February 2021 (YF)

• Wall Street is having trouble getting too excited about the U.S. economy (YF)

• Here’s Jensen Huang signing a woman’s chest (Verge)

• Elon Musk ordered Nvidia to ship thousands of AI chips reserved for Tesla to X and xAI (CNBC)

• Private equity says it has the data to make a push into sports (YF)

• Instagram testing unskippable ads (BBC)

• Private equity putting breaks on healthcare roll-ups after government scrutiny (WSJ)

• Banks pump billions more into private credit as frenzy grows (YF)

• Paramount mulls joint venture, job cuts as merger talks progress (Axios)

• KKR weighs entering the private credit market in Japan to challenge banks (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks eked out a gain on Tuesday even after the jobs report dropped.

Movers & Shakers

• (+) Saia ($SAIA) +7% after the freight company became more efficient shipping-wise year-over-year.

• (+) Carnival ($CCL) +6% because the cruise line will fold its Australian brand into the parent company.

• (–) Bath & Body Works ($BBWI) -13% after the retailer offered disappointing second-quarter guidance.

Private Dealmaking

• Frontdoor bought 2-10 HBW, a home warranties provider, for $585 million 

• Curtiss-Wright bought Ultra Nuclear Limited and Weed Instrument for $200 million

• Xcimer, a nuclear fusion startup, raised $100 million

• Storyblok, a headless CMS, raised $80 million

• AcuityMD, a medical device platform, raised $45 million

• Hydrolix, a streaming data lake platform, raised $35 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Irrational Exuberance

In this revised, updated, and expanded edition of his New York Times bestseller, Nobel Prize–winning economist Robert Shiller, who warned of both the tech and housing bubbles, cautions that signs of irrational exuberance among investors have only increased since the 2008–9 financial crisis.

With high stock and bond prices and the rising cost of housing, the post-subprime boom may well turn out to be another illustration of Shiller's influential argument that psychologically driven volatility is an inherent characteristic of all asset markets. In other words, Irrational Exuberance is as relevant as ever.

Previous editions covered the stock and housing markets—and famously predicted their crashes. This edition expands its coverage to include the bond market, so that the book now addresses all of the major investment markets. It also includes updated data throughout, as well as Shiller's 2013 Nobel Prize lecture, which places the book in broader context.

In addition to diagnosing the causes of asset bubbles, Irrational Exuberance recommends urgent policy changes to lessen their likelihood and severity—and suggests ways that individuals can decrease their risk before the next bubble bursts.

No one whose future depends on a retirement account, a house, or other investments can afford not to read this book.

"Irrational Exuberance should be compulsory reading for anybody interested in Wall Street or financially exposed to it; at the moment, that would be roughly everybody in the United States."

_{DAILY VISUAL}

Fed Expectations Moving Around a Lot

_{PRESENTED BY PUCK}

Unveiling Wall Street's Black Box

What do CEOs and West Wing staffers have in common? They all read Puck, the platform for smart and engaging journalism.

Puck’s Bill Cohan is a former investment banker turned all-star journalist. Read his work—including an interview with disgraced billionaire Leon Black—and everything else Puck covers, from Wall Street to Washington + Hollywood, for free. Check ’em out.

_{DAILY ACUMEN}

That’s Random

In today's fast-paced world, we often strive to control every aspect of our lives, believing that hard work and preparation alone determine our destinies. But what if I told you that luck and chance play a profound role in shaping our experiences? In a thought-provoking piece, Mark R Rank challenges the notion that we can engineer our own fortunes, shedding light on the unpredictable nature of luck.

Rank delves into the "Monte Carlo fallacy," where individuals mistakenly believe that a string of bad luck must come to an end soon. He illustrates how our innate desire for justice and balance clashes with the randomness of the universe, leading us to seek explanations or assign blame where none may exist.

However, rather than viewing chance as a hindrance, Rank suggests that embracing its prevalence can lead to personal growth and societal change. By recognizing the role of luck, we can cultivate perseverance in pursuing our goals, foster gratitude for our blessings, and develop empathy for those facing adversity.

Moreover, Rank underscores the importance of social safety nets in mitigating the impact of bad luck on individuals and communities. By acknowledging the reality of chance, we can work towards creating a more equitable world where everyone has the opportunity to thrive.

So, as we navigate life's twists and turns, let's remember that while we can't control the outcome of every situation, we can choose how we respond to the randomness of the universe. Embracing chance allows us to find balance in a world where the only certainty is uncertainty.

_{ENLIGHTENMENT}

Short Squeez Picks

• The best day trips from NYC

• My 33 years of business mistakes in 11 minutes

• Discipline is underrated

• 10 principles of minimalist living 

• How to use Stoic principles to face life’s challenges

_{MEME-A-PALOOZA}

Memes of the Day

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