Wake Up Call
- Hello ! Stocks hovered below this week’s record levels as dialed-down bets about Fed policy easing prompted a pull-back from riskier assets. REDDIT shares surged after announcing a content partnership with OpenAI, GAMESTOP and TAKE-TWO plunged on weak results.
- Eyes will be on comments from Fed officials Christopher Waller and Neel Kashkari today for further clues about the path of interest rates, after several of their peers said the central bank should keep borrowing costs high for longer.
Wall Street Movers
- APPLIED MATERIALS -1.2% Q2 adj EPS $2.09 ($1.99 exp) / Net sales $6.65bn ($6.52bn exp) / Sees Q3 adj EPS 4cst $1.83-$2.19 ($1.98 exp).
- BAIDU -0.4% is set for weak growth in advertising revenue for coming quarters, Morgan Stanley says in a note that downgrades the stock to equal weight from overweight.
- CHUBB +1% increasing quarterly dividend 5.8% to USD 3.64/shr.
- COREBRIDGE +11% after majority shareholder American International agreed to sell 20% of its stake in the life and annuity company to Nippon Life Insurance, for about $3.8bn in cash.
- DXC TECHNOLOGY -22% Cut FY25 adj EPS 4cst $2.50 to $3.00 ($3.49 exp) / rev $12.67bn to $12.95bn ($13.18bn exp) / Q4 adj EPS 97c (83c exp) / Organic revenue -4.9% (6.31% exp).
- GAMESTOP -20% preliminary Q1 net sales $872mn to $892mn ($1.05bn exp) / Company entered into an open market sale pact, may sell up to 45m shares of class A stock through “at the market offering”
- REDDIT +13.5% forged a partnership with OpenAI that will bring its content to the chatbot ChatGPT and other products, while also helping the social media company add new artificial intelligence features to its forums.
- SNOWFLAKE -0.5% is in talks to buy startup Reka AI for more than $1bn, according to BBG.
- TAKE-TWO INTERACTIVE -2% FY25 net bookings $5.55bn-$5.65bn ($6.92bn exp) / adj EPS $2.34-$2.59 ($5.86 ex) / Q1 net bookings 4cst $1.20bn-$1.25bn ($1.26bn exp) / Q4 Net bookings $1.35bn ($1.31bn exp) / Adj EPS 28c (7.1c exp) / GTA VI is now expected to release in fall 2025, which is in fiscal year 2026 rather than fiscal year 2025 as some analysts had exp.
At A Glance
- BANK OF AMERICA agreed to purchase about $3.2bn of multifamily loans from Washington Federal Bank at a discount.
- BOEING CalSTRS is voting against the election of Chairman Steve Mollenkopf, as well as directors David Joyce and Robert A. Bradway at the company’s AGM today.
- COINBASE Raised to Neutral at BofA
- CRACKER BARREL after Co. reduced its quarterly div to 25c/shr below $1.3/shr 4cst as the company increases investment in its business.
- DOXIMITY Q1 rev $119.5mn to $120.5mn ($118.7mn exp) / Q4 rev $118.1mn ($116.5mn exp) / Adj EPS 25c (20c exp).
- DR HORTON founder, Donald Horton, passed away.
- KKR backed software company OneStream has confidentially filed for an IPO to be valued at $6bn.
- MARVELL sees Vietnam as its 3rd largest iIC Design center.
- MICROSOFT’s partnership with AI firm Mistral AI will avoid a UK antitrust probe after the watchdog said it didn’t qualify for an investigation.
- OLD REPUBLIC declares Q2 regular cash div of 26.5c/shr.
- PROTEOLOGIX Inc. has entered into a definitive agreement to be acquired by JOHNSON & JOHNSON for $850mn in cash.
- TESLA is developing plans for a data center in China to train the algorithm for more fully autonomous vehicles.
- TRIMBLE gets expected notification of deficiency from NASDAQ.
- UBER passengers in Hong Kong dupe drivers into stopping next to police in an effort to report illegal ride services.
Key Events (UK Time)
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 : Bunge Global ($0.68); Cognizant Technology Solutions ($0.3); Evergy ($0.6425); Gen Digital ($0.125); Phillips 66($1.15); Snap-on ($1.86); Southern ($0.72); Wynn Resorts ($0.25)
- Monday : Johnson & Johnson ($1.24); Nordson ($0.68); Prudential Financial ($1.3); Skyworks Solutions ($0.68); Walgreens Boots Alliance ($0.25)
TODAY EARNINGS
- Results aft mkt : --
TOMORROW
- Results bef mkt : --
- Results aft mkt : Keysight Technologies ; Nordson ; Palo Alto Networks