Wake Up Call
- Hello ! US equity futures hit session lows early Tuesday after a key gauge of producer prices climbed more than expected in April, renewing concerns that the Federal Reserve may have to keep interest rates higher for longer to tame inflation.
- Meanwhile meme-stock traders again piled into GameStop and AMC during premarket trading, sending both firms higher in a revival of the retail frenzy.
- Fed Jerome Powell is also scheduled to speak at 3pm UK time, while the consumer price index due Wednesday is projected to show moderation while still remaining too high to advance the pace of rate cuts. Wagers on interest-rate cuts have sent investor optimism to a two-and-a-half-year high, but stocks will suffer if evidence of stagflation materializes, according to BoA strategist Michael Hartnett.
Wall Street Movers
- ALIBABA -4.5% Q4 rev ¥221.87bn (¥219.79bn exp) / Q4 adj Earning per ADS ¥10.14 (¥10.45 exp) / Adj EBITDA ¥30.81bn (¥30.38bn exp) / Board has approved a $4.0bn div for FY24.
- CHIP STOCKS and US-listed CHINESE ELECTRIC VEHICLE makers will be in focus again on Tuesday after the Biden administration officially announced that it was hiking tariffs on a wide range of Chinese imports — including semiconductors, batteries, solar cells, and critical minerals.
- HOME DEPOT flat Q1 comp sales -2.8% (-2.19% exp) / Net sales $36.42bn ($36.66bn exp) as quarter was impacted by a delayed start to spring and continued softness in certain larger discretionary projects.
- MEME STOCKS surge again, leading other high-risk and heavily shorted names higher. The latest rally was turbocharged on Monday following the return to social media of Keith Gill, who drove the meme-stock mania of 2021 under the moniker “Roaring Kitty.”. >> GME +156%, AMC +155%, BB +27%, SPWR +15%, SPCE +8.7%
- PLUG POWER +40% receives $1.66bn conditional commitment loan guarantee from department of energy for green hydrogen development
- TENCENT +2.6% Q1 rev ¥159.50bn (¥158.81bn exp) / Profit ¥52.56bn (¥45.28bn exp) / Net income ¥41.9bn (¥34.5bn exp)
- UBER +0.2% to buy Delivery Hero’s Foodpanda Taiwan business for $950mn, shoring up its control of a key Asian market as it seeks to expand in the region.
At A Glance
- ALPHABET’s Waymo probed by top US safety regulator after 22 incidents in which the company’s cars were involved in collisions or may have violated traffic laws.
- APPLE is preparing to start selling the Vision Pro in markets outside the US, testing whether the $3,499 mixed-reality headset has broader appeal. *
- BOSTON BEER has been upgraded to buy from hold by Jefferies on the back of the brewer’s hit Twisted Tea drink, a hard iced tea.
- COINBASE outage is now fully recovered.
- GOLDMAN SACHS plans to launch several investment strategies that will enable the company and its high-net-worth clients to deploy capital in the Gulf public markets.
- KKR’s offer values IQGeo at about £333mn on a fully diluted basis (enterprise value ~£316 min). Company is also in talks for a new loan with private credit lenders for MYOB.
- LOCKHEED MARTIN Terran Orbital has been selected to produce 18 satellite buses for the Space Development Agency Tranche 2 Tracking Layer contract.
- MERCHANTS BANCORP offers 2.4mn shares via Morgan Stanley, Piper Sandler, and Raymond James.
- REGENERON started at Outperform Evercore ISI.
- STONECO rev missed exp, with analysts saying that unchanged guidance was also a disappointment. Brokers pointed to a hit from higher selling expenses, though some said that the outlook for the firm remained positive.
- TSMC plans groundbreaking for its factory in Dresden, Germany in the second half of the year.
- VERIZON COMMUNICATIONS is interested in buying back US Cellular’s stake in its Los Angeles business if the companies can agree on a reasonable price.
- WESTERN DIGITAL Reinstated Buy at Citi; PT $90
Key Events (UK Time)
Tuesday
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
20:00 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
Friday
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 : 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)
- Tomorrow : ADM ($0.5); CenterPoint ($0.2); Coterra ($0.21); Eli Lilly ($1.3); Eversource ($0.715); Ingersoll Rand ($0.02); LKQ ($0.3); Marathon Petroleum ($0.825); Microsoft ($0.75); Pool ($1.2); TJX ($0.375)
TODAY EARNINGS
- Results aft mkt : --
TOMORROW
- Results bef mkt : --
- Results aft mkt : Cisco Systems