Wake Up Call
- Hello ! Stocks advanced, with the S&P 500 poised to extend last week’s rally, as traders grew increasingly confident in the likelihood that Fed will cut interest rates this year.
- “This week is expected to be calmer on the economic front: few economic data releases and limited central bankers’ intervention,” wrote Crédit Agricole strategists. In fact, with a light US economic calendar this week, the market’s direction may come from central bank officials. New York Fed President John Williams and the Richmond Fed’s Thomas Barkin are due to make remarks today, followed by Neel Kashkari of Minneapolis tomorrow.
Wall Street Movers
- ADOBE +0.6% Some investors expect that company’s own AI-powered tools for consumers and professional designers will eventually be worth the investment, Barron’s writes even though shares of the company have fallen as investors bet AI will erode the market for content creation software.
- APPLE -0.5% after rising strongly over the past two sessions and as Berkshire Hathaway reported it had trimmed its stake in the company even though Warren Buffett said the stock will remain Berkshire’s largest investment.
- BERKSHIRE HATHAWAY +1% cash pile hit yet another record as billionaire investor Warren Buffett confronted a dearth of big-ticket deals. Operating earnings also rose, buoyed by his collection of insurance businesses. Buffett said Apple is “even better” than AmEx and Coca-Cola, adding that the stock will remain Berkshire’s largest investment despite selling a large chunk. That sale helped bolster Berkshire’s cash pile to a record $189bn. A succession plan is top of mind, however, as the CEO approaches 94.
- CRYPTOCURRENCIES Rally on Bitcoin nears the $65,000 level after adding around 10% in the last four sessions >> MARA +5.6%, RIOT +2.7%
- PARAMOUNT +3.2% as it weighs Apollo and Sony’s $26bn offer to buy the company. Separately, Warren Buffett said Berkshire Hathaway also sold its position in the company at a loss.
- PERFICIENT +55% after EQT agreed to buy the technology consultant in a deal valued at about $3bn so Perficient stockholders will receive $76.00/shr in cash. The deal is expected to close by the end of 2024.
- TYSON FOODS +1.8% recorded Q2 adj EPS 62c above est 40c despite less than est sales $13.07bn, est $13.15bn. The company sees FY24 capex $1.2bn to $1.4bn matching est $1.3bn and expect sales to be relatively flat in fiscal 2024.
- US STEEL +2.5% as Morgan Stanley raised the company to overweight from equal weight, based on prospects for “transformational” investments. EU clears acquisition of US Steel by Nippon Steel.
- VISTRA replaces Pioneer Natural Resources in the S&P 500 Index effective prior to the opening of trading May 8.
At A Glance
- ALLETE enters pact to be acquired by a partnership led by CPPIB for $67/shr in cash or $6.2bn including the assumption of debt.
- ALPHABET Cyberproof announced partnership with Google Cloud to extend the capabilities of CyberProof's managed XDR services
- AMERICAN AIRLINES along with UNITED AIRLINES reached an agreement to press ahead with an $8.5bn revamp of Chicago’s O’Hare International Airport
- BOEING Institutional Shareholder Services urged the planemaker’s investors to vote against a $32.8mn pay package for its CEO citing concerns over a special equity award and a “sizable increase” in his long-term incentive grant.
- BLOCK reports $1.5bn offering of Senior Notes.
- CITIGROUP said government and regulatory agencies in the UK and Europe are investigating what happened two years after a Citigroup trader’s fat-finger error briefly sent European stocks swooning.
- CNA FINANCIAL recorded a Q1 book value/shr $35.62 higher than est stimate $34.91 driven by stellar results at CNA and Boardwalk; Core EPS $1.30 below est $1.39.
- HEALTHCARE REALLY TRUST announced a joint venture relationship with KKR and expects to receive about $300mn in proceeds. KKR will provide additional capital commitments of as much as $600mn, increasing the potential value of the joint venture to more than $1bn.
- LOEWS recorded Q1 rev $4.23bn and EPS $2.05 in Q1, partly driven by growth in its insurance business.
- NEXTERA ENERGY appoints Brian Bolster as CFO, succeeding Kirk Crews, effective immediately.
- NORFOLK SOUTHERN Ancora issues letter to co.’s board to refute false and unsupported claims, including those regarding railway labor act violations and “vote buying” from labor.
- PFIZER names Citi's Andrew Baum as strategy & innovation chief.
- STARBUCKS CEO Howard Schultz urged the coffee chain to own its shortcomings and fix operations following its biggest sales miss in years.
- TARGET said it’s expanding sales of the in-house Cat & Jack children’s brand at department-store chain Hudson’s Bay in Canada to include swims, outerwear and shoes.
- TESLA Elon Musk is working on regulatory approvals to enable customers who own 260-mile model Ys to unlock more range for their cars, he said in a post on social media platform X. Company has also stopped posting for jobs in the Mexican state of Nuevo Leon
- US BANCORP sees FY adj noninterest expense about $16.8bn or less and NII $16.1bn to $16.4bn
Key Events (UK Time)
Monday
17:50 Fed's Barkin Speaks on Economic Outlook
18:00 Fed's Williams Participates in Fireside Chat
19:00 Senior Loan Officer Opinion Survey on Bank Lending Practices
Tuesday
16:30 Fed's Kashkari Participates in Fireside Chat
20:00 US Consumer Credit
Wednesday
12:00 US MBA Mortgage Application
15:00 US Wholesale Trade Sales & Inventories
16:00 Fed's Jefferson Speaks About Careers in Economics
16:45 Fed's Collins Speaks to MIT Students
17:30 Fed's Cook Speaks on Financial Stability
Thursday
13:30 US Initial Jobless Claims
19:00 Fed's Daly Participates in Fireside Chat
Friday
14:00 Fed's Bowman Speaks on Financial Stability Risks
15:00 Fed's Logan Participates in Moderated Q&A, U. of Michigan Sentiment & 1Yr and 5-10Yr Inflation
17:45 Fed's Goolsbee Speaks in Moderated Q&A
18:30 Fed's Barr Gives Commencement Speech
Game Of Corporate Actions
DIV EX DATE
- Today : Intel ($0.125) ; FirstEnergy ($0.425) ; Las Vegas Sands ($0.2) ; MetLife ($0.545)
- Tomorrow : EQT ($0.1575) ; Ford ($0.15) ; Kenvue ($0.20) ; Texas Instrument ($1.30) ; United Rentals ($1.63)
TODAY EARNINGS
- Results aft mkt : Axon ; FIS ; FMC ; International Flavors ; Microchip Technology ; Realty Income ; Simon Property ; Vertex Pharmaceuticals ; Williams Cos
TOMORROW
- Results bef mkt : Builders FirstSource ; Datadog ; Duke Energy ; Expeditors International ; Henry Schein ; Jacobs Solutions ; Kenvue ; MarketAxess ; NRG Energy ; Rockwell Automation ; Sempra; TransDigm ; Walt Disney ; Waters
- Results aft mkt : Arista Networks ; Assurant ; Bio-Rad Laboratories ; EA ; Jack Henry & Associates ; Match ; McKesson ; Occidental Petroleum ; Wynn Resorts