Wake Up Call
- Hello ! Stock futures rose, and bond yields fell after the latest inflation data reinforced bets the Federal Reserve will cut rates this year. BOEING shares edged lower, GAMESTOP and AMC gave up most of their premarket gains.
- A measure of underlying US inflation cooled in April for just the first time in six months. The so-called core consumer price index, which excludes food and energy costs, increased 0.3% from March, according to government data out Wednesday. From a year ago, it advanced 3.6%. Retail sales failed to impress (unchanged vs +0.4% exp)
Wall Street Movers
- ACCENTURE -1% after Deutsche Bank downgrades the stock to hold from buy, saying the company’s organic revenue contraction in the fiscal second quarter signals it’s losing market share to peers in a pressured IT services industry.
- BOEING -0.5% breached the $2.5bn settlement “by failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of US fraud laws throughout its operations”.
- EXXON MOBIL Morgan Stanley resumed coverage on the oil producer with an overweight recommendation following the close of the PIONEER NATURAL RESSOURCES acquisition.
- MEME STOCK GAMESTOP (-12%) in volatile trade, off strong overnight highs. AMC (-11%) announces a new debt-for-equity swap plan. The company will issue 23.3mn shares of Class A common stock in exchange for $163.9mn aggregate.
- MONDAY +18% Q1 rev $216.9mn ($210.5mn exp) / Cash and cash equivalents $1.22bn ($1.18bn exp).
- NEXTRACKER +13% FY25 adj EBITDA 4cst $600mn to $650mn ($596.5mn exp) / Given the backlog-driven nature of the business, the growing +$4bn in backlog “should substantially de-risk 2025 outlooks,” according to analysts at KeyBanc.
- MSCI said 42 securities would be added to and 121 securities deleted from the ACWI Index, effective as of the close of May 31. Part of the moves : MSCI World Index: Additions : Microstrategy, Pure Storage, Emcor Group ; MSCI Emerging Markets Index Additions : Chandra Asri Pacific, JSW Energy, Canara Bank
- NU HOLDINGS +6.49% Q1 net rev $2.70bn ($2.35bn exp) / Net income $378.8mn ($336.1mn exp). Nubank has “open-ended growth opportunity” with a large addressable market, according to KeyBanc analysts.
- NYCB +4% after the company agreed to sell about $5bn in mortgage warehouse loans to JPMorgan. Analysts say it will boost capital and liquidity and is in keeping with management’s new strategy.
At A Glance
- ALPHABET ’s YouTube blocked videos of a Hong Kong protest song in the city, days after a local court approved an injunction order to ban the song.
- AMAZON has subscribed 224,537 shares at NT$2,382 each in an Alchip private placement, Tawainese chip designer.
- BIOMARIN PHARMACEUTICALS said it plans to cut approximately 170 employees to align with its “strategic portfolio assessment” of R&D programs announced in Q1. Sees 2Q charges of $15mN to $20mn in severance and termination benefits.
- GENERAL MOTORS ’s autonomous-car unit reached an $8mn to $12mn settlement with a pedestrian who was dragged by one of its vehicles in San Francisco.
- JPMORGAN CEO Jamie Dimon called for full and thoughtful engagement with China, despite the country posing “tough competition” for the West.
- MONDELEZ INTERNATIONAL shareholder proposal on Russia and China to implement human rights policy gets key backer from an influential advisory firm.
- NORTHROP GRUMMAN increased its regular quarterly cash div to $2.06/shr from the previous $1.87/shr.
- OPENAI Co-founder and Chief Scientist Ilya Sutskever said he would leave the company after almost a decade in a post on X.
Key Events (UK Time)
Wednesday
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 : 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)
- Tomorrow : Amgen ($2.25); Chevron ($1.63); Duke Energy ($1.025); Emerson Electric ($0.525); Hershey ($1.37); Hilton Worldwide ($0.15); Honeywell International ($1.08); IDEX ($0.69); J M Smucker ($1.06); Moody's ($0.85); MSCI ($1.6); Otis Worldwide ($0.39); RTX ($0.63); Sherwin-Williams ($0.715); Starbucks ($0.57); Visa ($0.52)
TODAY EARNINGS
- Results aft mkt : Cisco Systems
TOMORROW
- Results bef mkt : Deere
- Results aft mkt : Applied Materials; Copart ; Take-Two Interactive