CHRIS VERSACE: Good morning, Action Alerts Plus members. As we return from the long weekend, all eyes remain locked on Capitol Hill with the House expected to vote Wednesday night on the debt ceiling deal. Now, I expect there will be some blustering as the deal winds its way through Washington. But it appears there was enough support to pass it. Plus, I rather doubt the majority of Representatives in Washington want to be responsible for the US defaulting ahead of the 2024 election season.

So starting the week, the debt ceiling will be the driver of headlines and the market. But as we move through the coming days, exiting May, entering June, we're going to get a lot of May PMI data and the May Employment Report. In other words, we will have another round of data that brings the economy and what the Fed may do back into focus. We will also have another round of Fed speakers before the pre-monetary policy meeting blackout that goes into effect ahead of the Fed's June 13/14 policy meeting.

Now, the AAP team and I will be watching not only what those Fed heads have to say, but how they say it, adjusting our expectations for monetary policy as needed. As of now, however, we continue to see higher rates for longer ahead of us. On the earnings front this week, we'll be watching for results from ChargePoint on Thursday. Ahead of that report, ChargePoint shares were upgraded by Bank of America Securities to buy from hold earlier today.

Now when ChargePoint reports, the AAP team and I will be watching the quarters growth in active charging port counts, gross margin performance, and the mix of subscription revenue, as well as guidance for a stronger second half of the year. Now remember, folks, we are playing this one for the longer haul with the EV charging station buildout. I understand some members saw some recent Ford, Tesla news and may be wondering if that impacts how we're thinking about ChargePoint.

Now, if you missed that headline, here it is. Ford and Tesla inked a deal for Ford customers to gain access to 12,000 Tesla charging stations. It's a good headline, especially for Ford, don't get me wrong. But here's the context.

Consulting firm McKinsey Company finds the US needs 1.2 million public and 28 million private EV charging stations, roughly 20 times more than we currently have in the US. In other words, there is a long way to go. So let's not lose focus on the larger EV charging opportunity rather than read too much into that Ford, Tesla headline. And let's end today's rundown with a look at this morning's portfolio moves that added to our positions in Lockheed Martin and Elevance, as well as our plan to trim some shares of Marvell.

As I noted in my opening comments this morning, Marvell shares simply catapulted higher following its solid earnings report last week that also cleared up the company's AI exposure and prospects. Paired with today's debt ceiling news, we intend to do some prudent portfolio management and lock in a sliver of the more than 65% gain in our Marvell position. Again, a trim to lock in some gains. But our plan is to keep ample exposure to Marvell given what's developing on the AI front.

We also downgraded Marvell shares given that substantial move to a 3-rating. But we would look to revisit it either with the shares pulling back closer to the $50 level or on fresh AI developments for the company. That'll do it for today's rundown. We'll be back tomorrow to answer some of your biggest questions of the week.