Wake Up Call
- Hello ! US equity futures were higher in premarket activity Friday, extending gains from the previous session following a stronger-than-expected jobless claims report. A raft of Federal Reserve speakers are slated for Friday.
- GOLDMAN ANALYST - 'We have spent a lot of time' talking with clients about AI, says Goldman's chief US equity strategist David Kostin. The US stock market's climb this year probably has stalled for the rest of 2024, even as investors remain optimistic that companies stand to benefit from the adoption of AI. There's basically "no return" left for the S&P 500 index from now on this year. Kostin has forecast the S&P 500 will finish 2024 at 5,200.
- ON TAP - Traders will be watching for hints on the timing of policy easing from Fed officials including Michelle Bowman and Neel Kashkari before next week’s CPI data. Also, Consumer sentiment, due at 3pm UK, is expected to come in at 76.0 in May following April's 77.2 level.
Wall Street Movers
- (+) 3M +1.2% after HSBC raised its recommendation to buy from hold as earnings showed nascent signs of an “inflection in growth and margin gains from restructuring”.
- (-) AKAMAI -8.8% launched a fresh share buy back but sees Q2 adj EPS forecast $1.51 to $1.56 ($1.63 exp) / Q2 Rev $967mn to $986mn ($996.7mn exp) / Q1 Rev $987.0mn ($989.2mn exp) / Analysts note weakness in the infrastructure software company’s content-delivery network business.
- (+) DROPBOX +2% Q1 rev $631mn (est 629mn) / adj EPS 58c (est 50c) / sees Q2 rev $628-$631mn (est 631mn)
- (-) MODERNA -2% says FDA won't complete review of MRNA-1345 by May 12 citing administrative constraints in delay.
- (+) NOVAVAX +121% as the company and Sanofi signed a licensing agreement that includes commercializing a combined Covid-19 and flu shot. Novavax will receive $500mn in upfront payments as well as $700mn in development, regulatory and launch milestones. Sanofi is also taking a minority equity stake of about 5% in Novavax. Also boosts FY rev forecast $970mn to $1.17bn ($845.5mn exp).
- (+) VICTORIA' S SECRET +10% preliminary sales & adj profit for the quarter were at the high end or above its prior projections. Net sales were down 3% to 4% in the period, compared with an expected decline of as much as 6%. The company said online sales are outpacing in-store results.
At A Glance
- BOEING A Boeing 737 operated by United Airlines made an emergency landing at Japan’s Fukuoka airport today. Authorities are investigating information about an issue with wing flaps.
- EXXON MOBIL Calpers is considering a vote against CEO Darren Woods’ re-election to the company board due to concern over a lawsuit Exxon filed against two climate-focused investors.
- INSULET Q1 adj EPS $0.73 ($0.39exp) / Rev $441.70mn ($423.3mn exp)
- MARATHON DIGITAL Q1 rotal revenue $165.2mn ($172.9mn exp) / EPS $1.26 (20c exp).
- MCDONALD’S suppliers Havi is considering selling its cold-chain logistics business in Asia in a deal that could fetch as much as $500mn.
- MICROSOFT will launch its own online store for mobile-game consumables in July, creating an alternative to Apple and Google’s app stores and their fees. The browser-based store will debut with Microsoft’s own games, offering discounts on in-game items associated with title.
- REDDIT plans to release new products related to the company’s marketplace efforts within the next few months, co-founder and CEO Steve Huffman
- T-MOBILE & VERIZON are in discussions to carve up US CELLULAR (+4.50%), one of the country's last major regional wireless carriers, in separate transactions that would give both buyers access to valuable airwaves, according to WSJ.
- TARGET won’t sell LGBTQ-themed merchandise in some stores during Pride Month in June, after a backlash dented revenue last year.
- TESLA will spend “well over” $500mn on growing its Supercharger network, said Elon Musk on X, just over a week after firing almost all of the roughly 500 people who ran the business.
- UNITY SOFTWARE reported an 8% drop in Q1 revenue. Analysts say the shares will remain rangebound until the company’s new CEO crystallizes his own strategy.
- YELP Q1 EPS 20c (est 6c) / Sees Q2 net rev $350-355mn (est 358mn) / Macro headwinds for restaurants and growing competition from delivery platforms could also pressure the online review company’s revenue, according to Jefferies
Key Events (UK Time)
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 : 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)
- Monday : American Water Works ($0.765); Delta Air Lines ($0.1); Invesco ($0.205); WEC Energy ($0.835); WestRock ($0.3025)
TODAY EARNINGS
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MONDAY
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