Wake Up Call
- Hello ! Wall Street was poised to open near record highs on Monday, as investors looked past the inflation implications of a commodity rally and wagered interest-rate cuts will remain on the cards this year. One of the biggest features of this week is Wednesday’s earnings release from artificial intelligence bellwether Nvidia which has driven a major chunk of the S&P 500’s gains in 2024 and comprises 5% of its market value.
- One of Wall Street’s most prominent bears has just turned positive on the outlook for US stocks. Morgan Stanley’s Michael Wilson now sees the S&P 500 rising 2% by June 2025, a major about turn from his view that the benchmark will tumble 15% by December. The strategist — whose bearish 2023 outlook failed to materialize as markets kept rallying — finally gave in and boosted his target for the S&P 500 to 5,400 points from 4,500. That catapults his forecast from among the lowest on Wall Street to one that projects a fresh record for the index
US earnings will need to post a sharp jump in the third and fourth quarters to meet analysts’ current estimates for the full year, a scenario that is “unlikely” if economic data remain weak, according to JPMorgan strategists.
Canada is closed today.
Wall Street Movers
- APPLE -0.3% has reportedly launched an aggressive discounting campaign on its official Tmall site in China, offering discounts of up to USD 318 on select iPhone models, according to Reuters. Else, COO Williams visited TSMC recently and discussed production of AI chips designed by Apple, Economic Daily News reports.
- JOHNSON CONTROLS +4.4% after Bloomberg reported that Elliott Investment Management had built up a large position in the company.
- JPMORGAN lifted its forecast for the amount of net interest income it expects to generate this year, a sign that the biggest US bank believes it will continue to benefit as the Federal Reserve holds off on interest-rate cuts. Sees NII about $91bn, saw about $90bn, ($90.64bn exp). “Our excess capital supports increased buybacks, but we remain cautious”
- LI AUTO -4.3% Q1 Revenue Yuan26.63bn (Yuan 25.58bn exp) / Vehicule deliveries 80.4k (85.8k exp) / Sees Q2 revenue Yuan 29.9bn-31.4bn (Yuan 38.6bn) / sees vehicle deliveries 105k-110k (130k exp)
- NORWEGIAN CRUISE +2.5% boosts FY adj. EPS forecast, sees FY EPS about $1.42, saw about $1.32 ($1.31 exp) / sees adj. EBITDA about $2.3bn, saw about $2.25bn ($2.25bn exp)
- NVIDIA +1.3% Ahead of earnings on Wednesday, Baird, Barclays, and Stifel raised PT of the Co to USD 1,200 (prev. 1,050), USD 1,100 (prev. 850), and USD 1,085 (prev. 910), respectively.
- PARAMOUNT +2.2% Sony and Apollo Global Management signed non-disclosure agreements with Paramount and formally expressed interest in acquiring Paramount for roughly USD 26bln
- PROGRESSIVE flat The valuation of Progressive is near an all-time high but still remains attractive, especially when compared with more well-known stocks, according to Morgan Stanley, which names the insurance company a “top pick” within its coverage.
- STEEL SECTOR CLEVELAND-CLIFFS +0.5% is named Jefferies’ top pick as the firm starts coverage of the US steel industry, saying the producer should have the greatest benefit from strong US demand in the near term given its relatively high leverage. US STEEL +0.8% also buy Rated, while Nucor and Steel Dynamics are hold
- US BANKS US federal regulators are mulling a new plan which would lower a nearly 20% proposed compulsory capital increase for the country’s biggest lenders, the Wall Street Journal reported on Sunday.
At A Glance
- ALPHABET Google plans $1.1bn expansion at data center in Finland
- ARM The chip designer could get a big boost from the rise of AI-enabled smartphones, as could chipmaker Qualcomm, Barron’s says.
- GLOBUS MEDICAL after Piper Sandler upgraded its rating on the stock, saying the merger with NuVasive has been “more good than bad at this point.”
- JOHNSON & JOHNSON Phase 3 study of Tremfya in UC meets primary endpoint
- MAREX GROUP Rated New Buy at Goldman; PT $33 ; New Buy at Jefferies; PT $24; New Outperform at KBW; PT $24; New Overweight at Barclays; PT $25 Rated New Overweight at Piper Sandler; PT $27 ; Rated New Buy at Citi; PT $24
- MEDTRONIC Reports 'positive' results from SPHERE Per-AF study.
- MICRON Raised to Equal-Weight at Morgan Stanley on AI Narrative
- MICROSOFT Plans to announce several consumer devices at upcoming events, including a new version of its Surface Pro tablet and Surface Laptop.
- OLD DOMINION maintains quarterly dividend at 26 cents/Shr
- TERADYNE Raised to Buy at Goldman; PT $161
- UBER Positive mention in Barron's; said investors should bet on Uber stock as company bets on Asia.
Key Events
Monday
12:30 Fed's Bostic on Bloomberg TV
13:45 Fed's Bostic Gives Welcome Remarks
14:00 Fed's Barr and Waller Gives Keynote Remarks, Q&A
15:30 Fed's Jefferson Speaks on Economic Outlook, Housing
19:00 Fed's Mester on Bloomberg TV
Tuesday
14:00 Fed's Barkin Gives Welcome Remarks, Fed's Waller Discusses US Economy
14:05 Fed's Williams Gives Opening Remarks
14:10 Fed's Bostic Offers Brief Welcome Remarks
13:30 US Philadelphia Fed Non-Manufacturing Activity
16:45 Fed's Barr Speaks in Fireside Chat
Wednesday
12:00 US MBA Mortgage Applications
14:40 Fed's Goolsbee Gives Opening Remarks
15:00 US Existing Home Sales
19:00 FOMC Meeting Minutes
Thursday
13:30 Initial Jobless Claims
14:45 S&P Global US Manufacturing & Services & Composites PMI
15:00 US New Home Sales
20:00 Fed's Bostic Participates in Student Q&A
Friday
13:30 US Durable Goods Orders, Cap Goods Orders & Ship Nondef Ex Air
14:35 Fed's Waller Gives Keynote Address on R*
15:00 U. of Mich. Sentiment
Game Of Corporate Actions
DIV EX DATE
- Today : Johnson & Johnson ($1.24); Nordson ($0.68); Prudential Financial ($1.3); Skyworks Solutions ($0.68); Walgreens Boots Alliance ($0.25)
- Tomorrow : Aflac ($0.5); Amcor ($0.125); Equinix ($4.26); MarketAxess ($0.74); Microchip Technology ($0.452); Teradyne ($0.12)
TODAY EARNINGS
- Results aft mkt : Keysight Technologies ; Nordson ; Palo Alto Networks
TOMORROW
Results bef mkt : AutoZone ; Lowe's
Results aft mkt : --