Wake Up Call
- Hello ! US equity futures gained as investors awaited data due later this week on price pressures in the economy for clues on the Federal Reserve’s policy path. ALPHABET dropped 2.1% after Bloomberg reported that APPLE is closing in on an agreement with OpenAI to use the startup’s AI technology on the iPhone. Apple shares climbed 1.2%.
- This week, all eyes will be on US producer prices due Tuesday, ahead of April’s inflation print the next day. Data last week pointed to an economy that is slowing amid stubborn inflation, posing a challenge to the outlook for interest rates.
Wall Street Movers
- 3M +0.5% has faced years of headwinds, including legal challenges linked to “forever chemicals” in water supplies and potentially faulty earplugs sold to the US military. After a 34% drop over five years, changes at 3M signal it could now be a good investment, Barron’s says.
- APPLE +1.2% has closed in on an agreement with OpenAI to use the startup’s technology on the iPhone, part of a broader push to bring artificial intelligence features to its devices. The two sides have been finalizing terms for a pact to use ChatGPT features in Apple’s iOS 18, the next iPhone operating system >> GOOGL -2.1%
- CHEVRON Senate Chuck Schumer urged the FTC to pause Chevron-Hess $53bn deal arguing it would give the oil industry more power to raise gas prices.
- CISCO SYSTEMS flat loses its only negative analyst rating as BNP Paribas Exane upgrades to neutral from underperform, with limited downside now seen to consensus estimates for the networking equipment maker.
- GAMESTOP +33.4% following a cryptic post on X from Keith Gill, more popularly known by his social media alias “Roaring Kitty.”
- INTEL flat is in advanced talks for a transaction in which Apollo would supply more than $11bn to help the chip giant build a plant in Ireland.
- MICROSOFT flat plans to spend $4.3bn building cloud and AI infrastructure in France, announcing its latest major outlay on artificial intelligence technology. The company aims to help train a million people and support 2,500 startups by 2027 in the European country.
- NVIDIA flat announced it will accelerate quantum computing efforts at national supercomputing centres around the world with the open-source Nvidia CUDA-Q platform. Sites in Germany, Japan and Poland will use the platform to power the quantum processing units inside Nvidia-accelerated computing systems.
- SQUARESPACE +13% has entered into a definitive agreement to go private by Permira in an all-cash transaction valued at approximately $6.9bn.
- TESLA flat said it will invest over $500mn in expanding its charging network, with plans for new sites and thousands of additional chargers. It also faced further protests at its factory in Germany, where activists are trying to stop an expansion of the company’s facilities that would require razing part of the surrounding forest.
At A Glance
- ALIBABA is leveraging its computing resources to become a leading AI investor in China, according to FT citing source.
- AMAZON The top US auto-safety regulator has opened an investigation into Zoox, the autonomous-vehicle subsidiary of the company after two incidents in which its SUVs suddenly braked and were rear-ended.
- BOEING Lufthansa CEO told Switzerland's Neue Zuercher Zeitung newspaper that Boeing's aircraft delivery delays were "extremely annoying" and has cost Lufthansa lots of money but thinks that Boeing should be able to resolve its problems.
- BOOKING’s travel services platform became the latest technology business to be targeted by the EU’s crackdown on technology firms’ market power.
- BRISTOL MYERS SQUIBB ‘s phase 3 CheckMate-73L trial evaluating a combination therapy including Opdivo failed to meet its primary endpoint in patients with stage 3 lung cancer.
- CAPITAL ONE fails to properly investigate fraud claims and flips its legal burden to prove the inauthenticity of charges to consumers, a new proposed class action alleges.
- EXXON MOBIL A US judge ordered company to pay $725.5mn to a former mechanic who claimed toxic chemicals in the Cos. gasoline and solvents caused his cancer.
- INCYTE announces intention to buy back up to $2bn of its common stock.
- LIVE NATION bid to avoid US antitrust lawsuit is likely to fail, with its settlement offer not likely to forestall any case.
- KENVUE files for an offering of $182mn shares of common stock by selling shareholders; all shares that are being offered and sold in the offering are currently held by J&J.
- MERCK discontinues Vibostolimab and Pembrolizumab coformulation.
- NIKE Las Vegas Aces player A’ja Wilson will have a signature shoe, courtesy of Nike, released in 2025 along with an apparel collection.
- OPEN AI 's Altman Friday said it was working on some "new stuff”, but it was not GPT-5, and it was not a search engine. Late Friday, company announced its AI-powered search product on Today.
- PENN ENTERTAINMENT Bank of America downgrades its recommendation on the company from buy to neutral following disappointing results.
- QUEST DIAGNOSTIC nears deal to acquire LifeLabs, Canada’s biggest medical testing company, Globe and Mail Reported.
- REGENERON and Sanofi announced that FDA accepted for priority review for Dupixent as an add-on maintenance treatment for adolescents 12-17 years old with inadequately controlled chronic rhinosinusitis with nasal polyposis.
- TSMC reported a 60% jump in April sales, and a bigger-than-expected dividend payout. Also, Softbank is also already negotiating with the company and others over manufacturing.
Key Events (UK Time)
Monday
14:00 Fed's Mester, Jefferson Discuss Central Bank Communications
16:00 NY Fed 1-Yr Inflation Expectations
Tuesday
13:30 US PPI Final Demand MoM, PPI Ex Food and Energy MoM
14:10 Fed's Cook Speaks at NY Fed Event
15:00 Fed Chair Powell,
Wednesday
12:00 US MBA Mortgage Applications
13:30 US CPI MoM and YoY, Retail Sales Advance/Ex Auto MoM
17:00 Fed's Kashkari Speaks in Fireside Chat
16:05 Fed's Ben Bernanke testifies on BOE
20:20 Fed's Bowman Speaks on Financial Landscape
Thursday
13:00 US Initial Jobless Claims and Continuing Claims, Housing Starts, Philadelphia Fed Business Outlook
13:15 US Industrial Production MoM
15:00 Fed's Barr Testifies to Senate Banking
15:30 Fed's Harker Speaks on Higher Education, Healthcare
17:00 Fed's Mester Gives Remarks on Economic Outlook
20:50 Fed's Bostic Speaks in Moderated Chat on Economy
Wednesday
15:00 US Leading Index
15:15 Fed's Waller Speaks on Payments Innovation
17:15 Fed's Daly Gives Commencement Speech
Game Of Corporate Actions
DIV EX DATE
- Today : American Water Works ($0.765); Delta Air Lines ($0.1); Invesco ($0.205); WEC Energy ($0.835); WestRock ($0.3025)
- Tomorrow : CF Industries ($0.5); Church & Dwight ($0.28375); Cintas ($1.35); CMS Energy ($0.515); Consolidated Edison ($0.83); Diamondback Energy ($1.97); Exxon Mobil ($0.95); Jabil ($0.08); KLA ($1.45); Kroger ($0.29); Marathon Oil ($0.11); PACCAR ($0.3); Target ($1.1); Teleflex ($0.34)
TODAY EARNINGS
- Results aft mkt : --
TOMORROW
- Results bef mkt : Home Depot
- Results aft mkt : --