What You Need To Know for June 19th

Welcome back!

Reminder, markets are closed today for Juneteenth.

Btw - if you’re recruiting for Jobs in Finance - check out hundreds of roles on BuysideHub.com - we have a leading private credit firm based in Boston hiring.

Earnings Corner 📜 

Trending Up 📈 

Lennar (NEN) $LEN ( ▼ 1.15% ) The top U.S. homebuilder leaned into tech to offset housing headwinds, beating revenue by about $200M but missing EPS by $0.04. Gross margin fell to 18% as heavier incentives and lower ASPs weighed on profitability, but the company stayed committed to its volume-first strategy, delivering over 20K+ homes and selling 22K+ homes. Third quarter guide held steady: flat margins, 22K–23K deliveries, and EPS of $2.00–$2.20, signaling cautious optimism despite soft demand in key markets.

Remember that intern who formatted your Excel spreadsheets incorrectly, took days to build basic models, and still thought he deserved a glowing recommendation?

Good news: you don't need to rely on him anymore. Carousel is an AI assistant for Excel that builds spreadsheets & models for you.

With Carousel, you can:

🏭️ Build complex multi-tab models from scratch in minutes

✨ Turn messy tables into beautifully formatted outputs

🤖 Automate all of your data entry

🧩 Understand & repair even the most convoluted formulas

Unlike your last intern, Carousel is competent, doesn't complain when asked to fix spreadsheet formatting, and doesn't expect a return offer.

See Carousel in action: WATCH THE DEMO

Today’s Headlines 🍿 

• The Fed continues to wait, holding its target range steady between 4.25% and 4.5%. Powell wants to see how tariffs affect inflation and growth over the summer before making a decision. Two rate cuts this year remains the consensus estimate, but confidence in that is weakening

  • The FOMC also revised their annual estimates on inflation (up to 3% from 2.7% in March), GDP growth (down to 1.4% from 1.7%), and unemployment (up 0.1% to 4.5%)

  • Of course, Trump was not happy, saying “Am I allowed to appoint myself at the Fed? I’d do a much better job”

• Trump reverses course on ICE raids: Farms, hotels, and restaurants are no longer spared: Just days after exempting key industries, the Trump administration reinstated full-scale immigration raids, prompting backlash from business groups and fueling new protests. DHS says there will be “no safe spaces” for violating employers

• Israel Iran update: Trump says “I may do it, I may not” as Tehran rejects surrender. Missile fire continues as Israel hits key nuclear sites and Iran retaliates. Trump hasn’t ruled out U.S. military action, saying Iran was “weeks away” from a nuke.

• Consumer spending dropped sharply in May, marking two straight months with a decline. Retail sales fell 0.9% for the month, more than the estimated drop of 0.6%. Sales are up 3.3% y/y

• JetBlue cuts flights as break-even hopes fade: Citing weak demand and rising costs, JetBlue says break-even in 2025 is now “unlikely”. The carrier is cutting off-peak flights, pausing older planes, and streamlining leadership

• OpenAI lands a $200M Pentagon contract to boost national security AI: The one-year deal marks the launch of “OpenAI for Government,“ focused on cyber defense, health access, and military data workflows

• Homebuilder sentiment sinks near pandemic lows: Builder confidence fell to 32 in June, just shy of its lowest reading since COVID. High mortgage rates and broader economic uncertainty are scaring off buyers, despite recent tariff rollbacks

• AI will soon shrink Amazon’s workforce: CEO Andy Jassy said the company will have “fewer people doing some of the jobs that are being done today” as more generative AI tools continue to be adopted

  • Fully leaning into automation, Amazon also plans to utilize self-driving startup Zoox to manufacture up to 10k robotaxis a year, joining Elon in the autonomous race

• Nippon Steel finalizes purchase of U.S. Steel, days after getting Trump’s approval. The deal calls for $11B of investments into U.S. Steel over the next three years, a move that is projected to create over 100k jobs. Several other favorable provisions are included for U.S. Steel, including the preservation of its U.S. incorporation and Pittsburgh HQ

• Lakers to be sold at $10B valuation: The Buss family has agreed to sell a controlling interest in the team to the current owner of the LA Dodgers. $10B makes the Lakers the most valuable sports team in history, far above the $6.1B price the Celtics previously sold for

• Chase reworks the Sapphire Reserve, adding a slew of benefits and perks while increasing the annual fee to $795

• AI startup Anysphere gets an $18B valuation: The fast-growing developer of Cursor, an AI code editor, is currently fielding VC offers after recently surpassing $500M in annualized revenue

• Microsoft planning job cuts aimed at salespeople: The company is looking to slim down as it continues to ramp up spending in AI. Several thousand employees are expected to be laid off in July - in addition to the 6k that were let go in May

  • Also of note, Microsoft is ready to end negotiations with OpenAI. The partnership may fall through if critical issues, namely Microsoft’s future stake in the company, can’t be resolved

• HIV shot gets FDA approval: Gilead Sciences’ drug Yeztugo was approved after performing well in clinical trials. The twice-yearly injection is expected to help prevent HIV

• Barclays calls on McKinsey to trim investment bank costs: The firm has hired McKinsey to identify savings across its investment banking arm, including tech, finance, and front office roles. Up to 200 jobs could be cut as Barclays pushes for greater efficiency after a strong Q1

• Goldman ends SPAC freeze as deal activity picks up: After a three-year pause, Goldman is jumping back into the SPAC market, pointing to renewed investor appetite and a slow IPO recovery

• Kraft Heinz and General Mills ditch artificial dyes: Both companies will phase out synthetic food colorings over the next two years, following pressure from the FDA and HHS. Kraft Heinz claims only 10% of its lineup still uses FDA-approved additives like Red 40. Whereas General Mills plans to strip certified colors from all foods by the end of 2027

• Social Security funding is running out faster than expected: New projections show the trust fund will be depleted by 2034, a year sooner than previously forecasted. Without a fix, retirees face a 23% benefit cut. Putting lawmakers under pressure to act, but no solution is in sight as the deadline gets closer

• Substack is in financing talks: The newsletter platform looks to build off strong financial results driven by a renewed interest in political newsletters

Join the waitlist for mainstreetX: AI-powered matchmaking for early stage founders and investors. Funds with $100M+ in committed capital currently in beta.

M&A Transactions💭 

Ultra PCS, manufacturer of compact on-board gas compressors, has reached a definitive agreement to be acquired for $1.55B by Eaton (NYS: ETN).

Synthon International Holding, operator of a pharmaceutical company, was acquired for EUR 2.1B by Goldman Sachs Asset Management. Barclays and Rothschild & Co. advised on the sale.

SAGE Therapeutics (NAS: SAGE), a clinical-stage biopharmaceutical company, has reached a definitive agreement to be acquired for $806.855M by Supernus Pharmaceuticals (NAS: SUPN). EV/Revenue was 17.02x. Goldman Sachs advised on the sale.

Preedlife, provider of funeral and wedding services, was acquired for KRW 887.9B by Woongjing (KRX: 016880). EV/Net Income was 11.65x and EV/Revenue was 3.19x.

FineMark National Bank & Trust (PINX: FNBT), operates as a bank holding company, has reached a definitive agreement to be acquired for $585.0M by Commerce Bank (NAS: CBSH). Piper Sandler advised on the sale.

Continental Disc Corporation, manufacturer of rupture discs, has reached a definitive agreement to be acquired for $540.0M by Baker Hughes (NAS: BKR). Robert W. Baird & Co. and William Blair & Company advised on the sale.

Cantaloupe (NAS: CTLP), operates in the small ticket electronic payments industry, has entered into a definitive agreement to be acquired for $848.0M by Retail Markets. EV/EBITDA was 22.6x and EV/Revenue was 2.9x. J.P. Morgan advised on the sale.

Verve Therapeutics (NAS: VERV), a clinical-stage company, has reached a definitive agreement to be acquired for $1.3B by Eli Lilly (NYS: LLY). EV/Revenue was 21.81x. Centerview Partners and Guggenheim Securities advised on the sale.

Profectus Capital, provider of non-banking financial services, has reached a definitive agreement to be acquired for INR 14.0B by U Gro Capital (BOM: 511742). EV/Net Income was 51.21x. Avendus Capital advised on the sale.

Paladin Pharma, operator of a specialty pharmaceutical company, was acquired for $135.0M by Knight Therapeutics (TSE: GUD). The company will receive a contingent payout of $15.0M upon the completion of certain future sales milestones. EV/Revenue was 1.93x.

MPM Products, manufacturer of pet food products, has entered into a definitive agreement to be acquired for EUR 400.0M by Partners Group. The transaction values the company at an estimated EUR 500.0M. Harris Williams advised on the sale.

Circular Energy Korea, provider of waste incineration services, has reached a definitive agreement to be acquired for KRW 400.0B by Affirma Capital.

CEC Facilitate Group, provider of integrated construction services, has reached a definitive agreement to be acquired for $505.0M by Sterling Infrastructure (NAS: STRL). EV/EBITDA as 10.74x and EV/Revenue was 1.41x.

Calibre Mining, a multi-asset gold producer, was acquired for CAD 3.204B by Equinox Gold (TSE: EQX). EV/EBITDA was 10.0x and EV/Revenue was 3.55x. Canaccord Genuity and Scotiabank advised on the sale.

Private Placement Transactions💭 

Ramp, developer of a financial operations platform, raised $200.0M of Series E venture funding led by Founders Fund at a pre-money valuation of $15.8B.

Juniper Square, developer of an integrated platform designed to streamline private partnership, raised $130.0M of Series D venture funding led by Ribbit Capital at a pre-money valuation of $970.0M.

Teamworks, developer of an athlete engagement application, raised $235.0M of Series F venture funding led by Dragoneer investment Group at a pre-money valuation of $1.0B.

Skild AI, developer of a robotics foundation model, raised $500.0M of Series B venture funding led by SoftBank Group at a pre-money valuation of $4.2B.

Mach Industries, operator of a defense manufacturing company, raised $100.0M of Series B venture funding led by Bedrock and Khosla Ventures.

Juvenescence, developer of innovative medicines, raised $150.0M of Series B1 venture funding led by M42.

Helsing, operator of a defense AI company, raised EUR 600.0M of Series D venture funding led by Prima Materia.

Coralogix, developer of observability and security analytics software, raised $115.0M of Series E venture funding led by NextEquity Partners and NewView Capital.

Applied Intuition, developer of an autonomous vehicle platform, raised $600.0M of Series F venture funding led by Kleiner Perkins and BlackRock at a pre-money valuation of $14.4B.

Draig Therapeutics, developer of a biotechnology platform, raised GBP 107.0M of Series A venture funding led by Access Industries.

Odds of the Day 🍒 

Kalshi traders are pricing in a 51% chance of the United States to meet with Iran before July

*New Traders on Kalshi receive a $20 bonus of trading credit when depositing $100+ with the code “HYH”.

Noteworthy Chart 🧭

Meme Cleanser 😆 

Until next time!

Housekeeping Items:

Our Weekly Poll:

Finance Jobs: Looking for a job in Finance? Join Buyside Hub to access the Job Board for free.

Access our Market Data: Our market data is sponsored by Koyfin, the best free financial analysis and visualization platform out there. Need premium analytics? Koyfin is offering Wall Street Rollup readers 15% off on any new sign-ups.  

Autopilot Portfolio Update: High Yield Harry recently launched 4 portfolios on Autopilot including The Golden Age of Private Credit portfolio and the Tariff Trade portfolio. You can autopilot my trades and strategies by signing up here.

Recruit for Investment Banking: High Yield Harry and a group of Investment Bankers put together a 248 page deck for those recruiting for Investment Banking - sign up for free here to learn more about our decks.

Join beehiiv: Looking to start your own newsletter? Join beehiiv through us and you’ll get 30 days free and 3 months of a 20% discount.

Finance Merch Referrals ☕️ 

Enjoyed the newsletter? Send it to a friend 🤝 

Obviously, none of this constitutes financial or investment advice. *Today’s Odds of the Day is in paid partnership with Kalshi Inc.

Investment advice provided by Autopilot Advisers, LLC (“Autopilot”), an SEC-registered investment adviser. Past performance does not guarantee future results. Investing carries risks, including loss of principal. As always be smart out there.