Wake Up Call
- Hello ! Stock futures pared losses after the latest jobless claims added to evidence the labor market is cooling, paving the way for the Federal Reserve to cut rates this year.
- JOBLESS CLAIMS came in higher than exp, adding to signs of weakening in the labor market. That’s good news for bonds and bad news for the dollar. Cracks in the jobs market would suggest that tight monetary policy is taking effect, and would open the way for interest rate cuts this year -- though the path ahead would be clearer if inflation were more clearly slowing. The yield on two-year Treasuries fell through 4.82%.
- DATAS
* US Initial Jobless Claims w/e 231.0k vs. Exp. 215.0k (Prev. 208.0k, Rev. 209k)
* US Continued Jobless Claims w/e 1.785M vs. Exp. 1.785M (Prev. 1.774M, Rev. 1.768M)
Wall Street Movers
- (-) AIRBNB -8.40% sees Q2 rev $2.68-2.74bn (est $2.74bn), but heavier European travel expected this summer / Q1 rev $2.14bn (est 2.06bn) / Gross booking value per nights and experiences booked $172.88 (est $169.38)
- (-) ARM -8% gave a lukewarm revenue forecast for the fiscal year, raising concerns that the tech industry’s AI spending spree is slowing. Quarterly sales & profit topped est. SOFTBANK also declined.
- (+) HUBSPOT +7.60% Alphabet Inc. has been progressing in talks to acquire marketing software provider HubSpot Inc., acc. to sources. Deliberations are ongoing and no agreement has been reached, the people said. There’s no certainty the companies will move forward with a deal, and it’s possible another suitor could emerge.
- (-) NEWS CORP -1.50% Q3 rev $2.42bn (est 2.45bn) / Subscription Video Services rev $455mn (est 467mn)
- (+) NUTRIEN +1% said demand has been strong in the US while expectations for better conditions later this year in Brazil will further aid sales — a potential turnaround for the crop-nutrients sector that’s been struggling with falling prices.
- (+) PARAMOUNT GLOBAL +1.20% is in talks about opening its books to a consortium of Sony Pictures and Apollo Global Management interested in acquiring the US media company, Reuters reports, citing sources. Advisers to both sides are discussing the terms of a confidentiality pact that allows the exchange of commercially sensitive information
- (+) ROBINHOOD +5% posted its second straight quarterly profit as higher interest rates and cryptocurrency trading fueled revenue growth.
- (-) ROBLOX -29% biggest drop ever if losses hold, after the gaming company gave Q2 bookings forecast that missed est $855-880mn (est 805mn)
- (-) WARNER BROS DISCOVERY -3.5% Q1 rev $9.96bn (est 10.27bn). Separately, Disney and Warner Bros. Discovery to launch Disney+, Hulu, Max Streaming bundle, Variety reports. Pricing and launch date are tbc. The bundle will be available on all three platforms' websites, with options for ad-supported and ad-free plans.
At A Glance
- BEYOND MEAT -13% Q1 net rev $75.6mn (est 75.9mn) / adj Ebitda loss $32.9mn (est loss $28.7mn) / Sluggish demand for plant-based meat products will slow the company’s growth, acc. to analysts at William Blair, and is “likely to be measured in quarters as opposed to months with the destination still uncertain.”
- CELANESE -2% posted lower revenue in the first quarter as demand for chemicals and materials remained below normalized levels.
- HYATT Q1 rev $1.71bn (est 1.7bn) / adj EPS 71c (est 77c) / cut FY adj Ebitda view $1.15-1.19bn (est 1.2bn)
- QUALCOMM not changing Q2'24 financial guidance
- TESLA job cuts are escalating in China, acc. to sources, as Elon Musk contends with growing pressure to win back share in the world’s biggest auto market.
- TRADE DESK said it accelerated growth in its latest quarter with an "outstanding performance to start the year".
- WARNER MUSIC Q2 diluted EPS 0.18 (est 0.24) / rev $1.494bn (est 1.48bn)
Key Events (UK Time)
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 : AEP ($0.88); Cencora ($0.51); Charles Schwab ($0.25); Howmet Aerospace ($0.05); IBM ($1.67); JB Hunt ($0.43); Parker-Hannifin ($1.63); Paychex ($0.98); Pfizer ($0.42); PPG Industries ($0.65); Rollins ($0.15); Truist Financial ($0.52); Walmart ($0.2075); Wells Fargo ($0.35)
- Tomorrow : Apple ($0.25) ; Bio-Techne ($0.08); Capital One Financial ($0.6); ConocoPhillips($0.78); Exelon ($0.38); Rockwell Automation ($1.25); UPS ($1.63); Welltower ($0.61); WW Grainger ($2.05)
TODAY EARNINGS
- Results aft mkt : Akamai ; Gen Digital ; Insulet ; Mettler-Toledo
TOMORROW
- Results bef mkt : --
- Results aft mkt : --