Wake Up Call
- Hello ! US equity futures were higher Thursday premarket, buoyed by a jump in NVIDIA shares following the company's latest quarterly results.
- US EQUITIES - The US stock market has powered higher in May, reversing the losses of last month’s slump, thanks in large part to a strong earnings scorecard from Corporate America. But as the reporting season winds down after another bumper report from NVIDIA already out, the equity rally will soon see an important engine for gains temporarily disappear. Earnings season’s arrival has historically given equities a boost, with the S&P 500 rising 80% of the time over the period at a median gain of 2%, per data from Deutsche Bank going back to 2013 — making it a big upside catalyst for share prices. Nearly 80% of S&P 500 companies have beat analyst est. this earnings season, while earnings have grown roughly 7% from the year-ago period. That’s boded well for equities, with the US stock benchmark up roughly 5% so far in May.
- ON TAP - The manufacturing Purchasing Managers' index, slated for 2.45pm UK, is seen unchanged at 50.0 in May. New home sales, due at 3pm, are expected to fall to a 677,000 annual rate in April from 693,000 in March.
- EQUITY MARKET CLOSURES :
- Monday, May 27th : US closed (Memorial Day)
Wall Street Movers
- NVIDIA +6.8% sees Q2 rev 4cst $28bn +/-2% ($26.82bn exp) / Adj gross margin 75% to 76% (75.6% exp) / Adj operating expenses about $2.8bn ($2.64bn exp) / Q1 Rev $26.04bn ($24.69bn exp) / Adj EPS $6.12 ($5.65 exp) / R&D expenses $2.72bn ($2.73bn exp) / Also announced a 10 for 1 forward stock split of Co.’s issued common stock to make stock ownership more accessible to employees and investors / Boosts its quarterly cash div amount to 10c/shr from 4c/shr. The increased dividend is equivalent to $0.01/sh on a post-split basis and will be paid on Friday, June 28 to all shareholders of record on June 11, 2024 >> AMD +3%, DELL +6%, SMCI +5.4%, INTC +0.5%
- DUPONT DE NEMOUR +6% after announcing plans to break apart into three publicly traded companies, joining a list of industrial conglomerates seeking to boost returns by splitting into smaller, more focused businesses. The company will separate its electronics and water units through tax-free transactions. The remaining operations will be focused on industries such as biopharma and medical devices, with products including Tyvek and Kevlar.
- JPMORGAN is on the hunt to buy a private credit firm to augment its $3.6 trillion asset management arm and bolster its private capital business. Co. held talks to buy Chicago-based Monroe Capital this year, but the two firms ultimately decided not to pursue a deal. Separately, Jamie Dimon said on Thursday that parts of JPMorgan’s business in China had “fallen off a cliff” in recent years, Financial Times reports, citing private comments from Dimon to attendees at the bank’s flagship conference in Shanghai.
- LIVE NATION -5% after Bbg reported that the US Justice Department and a group of states will sue Co. for antitrust violations related to Ticketmaster’s unrivaled control of concert ticket sales.
- LIVE NATION -8.3% after Bbg reported that the US Justice Department and a group of states will sue Co. for antitrust violations related to Ticketmaster’s unrivaled control of concert ticket sales.
- MEDTRONIC flat Q4 adj EPS $1.46 ($1.45 exp) / Rev $8.59bn ($8.44bn exp) / Sees FY25 adj EPS $5.40 to $5.50 ($5.44 exp).
- RALPH LAUREN -4.80% better than exp Q4 earnings weighted against soft guidance for FY25. Company names Justin Picicci as CFO, eff May 23, following multi-year succession plan ; Jane Nielsen to remain in COO role through FY25.
- SNOWFLAKE +4% Q1 rev $829mn ($786mn exp) / Raise FY25 product rev $3.30bn, saw $3.25bn ($3.26bn exp) / Sees product rev $805mn to $810mn ($787.5mn exp).
- VF CORP -15% Q4 Rev $2.37bn ($2.41bn exp), a seventh consecutive quarter of falling sales / Adjusted gross margin 48.4% (50.3% exp) / Declared a quarterly div of $0.09/shr.
At A Glance
- ELF BEAUTY reported Q4 ad. EPS & net sales that topped est. Annual projections for sales and profit failed to meet exp, but still, analysts are generally positive on the print. Truist sees the conservative guidance as “par for the course” for the company, setting it up to continue its run of top- and bottom-line estimate beats.
- EQT expects EQUITRANS MIDSTREAM merger to close in Q3.
- GOLDMAN SACHS becomes the first Wall Street bank to take a step toward complying with Saudi Arabia’s ultimatum for foreign firms to set up their Middle Eastern base there.
- GOOGLE and TELEFÓNICA extends pstrategic partnership to include the expansion of Google Cloud services offered by Telefónica Tech for the B2B market, cloud adoption by Telefónica for its own business, and the strengthening of collaboration in key areas of innovation, such as AI and Gen AI.
- HASBRO +3.4% after an upgrade to overweight at JPMorgan
- PHILIP MORRIS buys 14.7% stake in egypt-based EASTERN.
- SYNOPSYS sees Q3 rev 4cst $1.51bn to $1.54bn ($1.54bn exp) / Sees Q3 adj EPS $3.25-$3.30 ($3.20 exp) / Cut FY rev 4cst $6.09bn to $6.15bn ($6.09bn exp) / Q2 adj EPS $3.00 ($2.95 exp) / Rev $1.45bn ($1.44bn exp) / Acquired ANSYS for $35bn : Ansys stockholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock.
- TESLA has told suppliers to start building components and parts outside of both China and Taiwan by as early as next year due to rising geopolitical uncertainties.
- UBER Direct and Uber Eats in partnership w/ LIGHTSPEED which will have built-in integrations with delivery company services in its platform.
- UNDER ARMOUR downgraded by Oppenheimer to market perform to await clearer signs of improvements.
- WARNER BROS announces early results and upsize of previously announced cash tender offer.
- WENDY'S added to tactical outperform list at Evercore ISI
Key Events
Thursday
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 : 3M ($0.7); CDW ($0.62); Cummins ($1.68); Equifax ($0.39); International Paper ($0.4625); Jacobs Solutions ($0.29); Marriott International ($0.63); Masco ($0.29); Robert Half ($0.53); TE Connectivity ($0.65); Viatris ($0.12); Vulcan Materials ($0.46)
- Tomorrow : Atmos ($0.805); Jack Henry & Associates ($0.55); KeyCorp ($0.205); Labcorp ($0.72); Northrop Grumman ($2.06); Paycom ($0.375); Tractor Supply ($1.1); WABT ($0.2); Yum! ($0.67)
TODAY EARNINGS
- Results aft mkt : Deckers Outdoor; Intuit ; Ross Stores ; Workday
TOMORROW
Results bef mkt : --
Results aft mkt : Autodesk