Wake Up Call
- Hello ! US equity futures pointed to a pause for Wall Street’s rally fueled by optimism that the Federal Reserve will start cutting interest rates this year.
- In a week light on data but heavy on Fedspeak, Minneapolis Fed President Neel Kashkari is set to appear today. Federal Reserve Bank of Richmond President Thomas Barkin said Monday said he expects high interest rates to eventually cool US inflation to the central bank’s 2% target.
- Swaps traders are betting on about 45bps of Fed rate cuts by December. US central bankers left their benchmark rate unchanged last week at a more than two-decade high of 5.5%, where it’s been since July of last year.
Wall Street Movers
- APPLE +1% has been developing a homegrown chip to run AI tools in data centers, though it’s unclear if the semiconductor will ever be deployed, the WSJ reported.
- DATADOG -10% Q1 adj EPS 44c (est 35c) / rev $611mn (est $591mn) / Raise its FY outlook on rev and adj EPS / Amit Agarwal will be stepping down as president. Analysts are broadly positive on the report, but said they may have missed high exp.
- DISNEY -5% Q2 adj EPS $1.21 (est $1.12) / rev $22.08bn (est $22.1bn) due to goodwill impairments in the quarter, partially offset by higher operating income at Entertainment and Experiences / Fewer subscribers to its Disney+ streaming service in Q2 than analysts had projected
- GAP +2.9% after Citi raised its rating on the retailer to buy from neutral on positive momentum and margin upside.
- GLOBALFOUNDRIES +4.20% Q1 adj EPS 31c (est 21c) / net rev $1.55bn (est $1.52bn)
- INSTACART +2.70% is partnering with UBER (flat) to offer restaurant delivery through the Instacart app — taking on the top US food delivery app, DOORDASH (-3%)
- KENVUE +3% FY adj EPS 4cst $1.10 to $1.20 above est $1.14 as well as organic rev +2% to +4%, est +2.07% after company recorded good results in Q1. Plans net global workforce reduction of about 4%.
- LUCID GROUP -7.8% Q1 rev $172.7mn ($158.9mn exp) / Loss Per Share -$0.30 (Loss Per Share -$0.25 exp) / adj Ebitda Loss -$598.4mn (Loss -$505.1Mmn exp) / vehicles delivered 1,967 (1,698 exp) / Sees FY production about 9,000 vehicles.
- MICROCHIP TECHNOLOGY -4.6% Q1 rev $1.33bn ($1.33bn exp) / EPS $0.57 ($0.57 exp) / Sees Q1 net sales $1.22bn - $1.26bn ($1.34bn exp) / Sees Q1 adj EPS $0.48 - $0.56 ($0.58 exp) / Company declared a 45.20c/shr quarterly div up from prior 45.00c/shr.
- PALANTIR TECHNOLOGIES -8.4% Q1 rev $634mn ($615.8mn exp) / EPS $0.08 ($0.08 exp) / Sees Q2 rev $649mn - $653mn ($641.2mn exp) / Company raises its FY rev $2.68bn-$2.69bn (saw $2.65bn - $2.67bn, $2.68bn exp)
- TARGET +1.6% as Citi raised its recommendation to buy from neutral, saying the department store operator “is on the right track with inventory well-controlled”.
- TESLA -2.1% after preliminary data from China’s Passenger Car Association showed shipments from its Shanghai factory dropped 18% Yoy in April even as the broader market for new-energy cars grew. Company is also facing a July 1 deadline to furnish US regulators with information about its biggest ever recall because drivers using Autopilot keep crashing while using the system.
- VIMEO +7.40% Q1 rev $105mn (est 100mn) / adj Ebitda $12.2mn (est 7.46mn) / Sees Q2 rev below $100mn (est 97.7mn) / Analysts touted strength in the company’s enterprise business.
At A Glance
- AMAZON plans to spend $9bn expanding its cloud computing infrastructure in Singapore. The outlay, to be done over the next four years, doubles Amazon Web Services’ investment in Singapore and helps it meet growing customer demand for cloud services and accelerate the adoption of AI.
- DUKE ENERGY recorded a Q1 op rev $7.67bn above est $7.33bn w/ adj EPS $1.44 , est $1.38. Still sees adj EPS $5.85 to $6.10, est $5.97.
- FIDELITY NATIONAL raised FY outlook adj $4.88 to $4.98, saw $4.66 to $4.76, a standout in the fintech’s results, with analysts noting a boost from lower taxes, spurring hopes for an acceleration in growth. SEES 9-12% annual adj eps growth in medium-term.
- GROUPON announces Dusan Senkypl as permanent CEO
- HENRY SCHEIN Q1 net sales $3.17bn misses est $3.19bn while adj EPS attributable to the company, est $1.01.
- JACOBS SOLUTIONS narrows its FY adj EPS 4cst $7.80 to $8.10, saw $7.70 to $8.20, est $8.05; Recorded Q2 rev $4.27bn higher than est $4.05bn. Company expects to fulfill the remaining closing conditions on CMS deal, transaction could be closed in Q4 of 2024.
- KKR is set to buy Perpetual’s name, along with its corporate trust and wealth management businesses in deal worth over A$1.5bn
- MARKETAXESS recorded mixed Q2 results (EPS $1.92, est $1.87; Rev $210.3mn, est $212.9mn).
- NRG ENERGY Q1 adj EBITDA $849mn beats est $677.8mn as well as adj EPS $2.31, est $0.92.
- PELOTON Private equity firms circle PELOTON for potential buyout (CNBC)
- ROCKWELL AUTONATION cut its FY reported sales change -4% to -6%, saw +0.5% to +6.5% as well as its adj EPS $10.00 to $11.00, saw $12 to $13.50, est $11.90 even it reported higher than est results in Q1.
- SERVICENOW’s new generative AI-focused product tier will take time to boost financial results.
- TRANSDIGM boosts its FY adj EPS $31.75 to $33.09, saw $29.97 to $31.73, est $31.72 to reflect strong second quarter results (Adj EPS $7.99, est $7.38; net sales $1.92bn, est $1.88bn).
Key Events (UK Time)
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 : EQT ($0.1575) ; Ford ($0.15) ; Kenvue ($0.20) ; Texas Instrument ($1.30) ; United Rentals ($1.63)
- Tomorrow : Resmed ($0.48)
TODAY EARNINGS
- Results aft mkt : Arista Networks ; Assurant ; Bio-Rad Laboratories ; EA ; Jack Henry & Associates ; Match ; McKesson ; Occidental Petroleum ; Wynn Resorts
TOMORROW
- Results bef mkt : Affirm ; Alight ; EchoStar ; Elanco Animal Health ; Emerson Electric ; Liberty Media ; Marinus Pharmaceuticals ; New Fortress Energy ; Sunoco ; TripAdvisor ; Uber ; Vertex ; Vistra
- Results aft mkt : Airbnb ; AMC Entertainment ; AppLovin ; Beyond Meat ; Core Scientific ; Corpay ; Cytokinetics ; CytomX Therapeutics ; Duolingo ; Energy Transfer ; Exact Sciences ; Fluence Energy ; Forward Air Corp; Hecla Mining ; HubSpot ; Maplebear ; QuidelOrtho ; Robinhood Markets ; StoneX ; Sunrun ; TKO ; Trade Desk; Vanda Pharmaceuticals ; Vista Outdoor ; Vizio