Wake Up Call
- Hello ! US equity futures edged higher Friday after the previous day’s losses that were triggered by expectations the Federal Reserve’s first interest rate cut will be delayed to December.
- STOCK MARKET - The S&P 500 Index can keep soaring to all-time highs even if the Federal Reserve forgoes interest-rate reductions this year, according to Deutsche Bank. Equities strength can persist in the face of the Fed’s higher-for-longer stance as long as the economy and earnings are growing, Binky Chadha, chief US equity and global strategist at the bank, said in an interview. Chadha lifted his S&P year-end forecast to 5,500 last week, about 4% above Thursday’s closing level.
- DATAS
* US April Durable Goods Orders Rose 0.7%, Above Est. down 0.8%
* Canadian Retail Sales MM* (Mar) -0.2% (Prev. -0.1%)
* Canadian Retail Sales Ex-Autos MM* (Mar) -0.6% vs. Exp. 0.1% (Prev. -0.3%, Rev. -0.2%)
- EQUITY MARKET CLOSURES :
- Monday, May 27th : US closed (Memorial Day)
Wall Street Movers
- DECKERS OUTDOOR +10% Q4 net sales $959.8mn ($884.4mn exp) / Sees FY25 net sales 4cst $4.7bn ($4.69bn exp) / EPS $29.50 to $30.00 ($30.11 exp).
- INTUIT -6% sees Q4 adj EPS $1.80 to $1.85 ($1.93 exp). Reported tax season revenue that exceeded est as more customers opted for higher-priced features. Still, the shares fell on investor concerns about a loss in the number of people who use the company’s TurboTax service for free.
- NVIDIA +1% cuts China prices as it competes with Huawei, according to Reuters citing sources. The lower prices underscore the recent challenges in China amid recent US sanctions.
- PARAMOUNT / CHARTER COMM announces new multi-year agreement for distribution of Paramount's linear networks, CBS owned-and-operated stations, and direct-to-consumer streaming services. Charter to make Paramount's direct-to-consumer products available for purchase by its internet-only customers. Financial terms of agreement were not disclosed. Ad-supported Paramount+ Essential and BET+ Essential will be included in Spectrum video packages at no additional cost to customers.
- ROSS STORES +7% boosts FY25 EPS 4cst $5.79 to $5.98, saw $5.64 to $5.89 ($5.95 exp) / Sees comparable sales +2% to +3% (+2.93% exp) / Q1 EPS $1.46 ($1.35 exp).
- SPACEX has initiated discussions about selling existing shares at a price that could value the closely held company at roughly $200bn. SpaceX is discussing a tender offer, a transaction that enables employees and insiders like investors to sell shares, that may kick off in June.
- SUMMIT THERAPEUTICS -15% after trial data on Akeso’s lung cancer drug was seen as disappointing. Summit acquired exclusive rights for development and commercialization of the drug in the US, Canada, EU and Japan from Akeso for $500mn in late 2022.
- TESLA flat to cut Model Y output at Shanghai plant by at least 20% during March-June 2024.
- WORKDAY -10% cut FY subscription revenue 4cst $7.70bn to $7.73bn, saw $7.73bn to $7.78bn / Q1 adj EPS $1.74 ($1.58 exp) / Revenue $1.99bn ($1.97bn exp) >> CRM 1.4%.
At A Glance
- APPLE raised to a Street-high view of $275 from $250 at Wedbush, a move that reflects “iPhone demand turning the corner into an AI driven iPhone 16 supercycle.”
- BOEING has again stopped delivering airplanes to customers in China, a fresh roadblock in the company’s push to restore its battered reputation.
- BOOZ ALLEN sees FY25 adj EBITDA $1.26bn to $1.30bn ($1.27bn exp) / Sees FY25 adj EPS $5.80 to $6.05 ($5.92 exp) / Q4 rev $2.77bn ($2.72bn exp)
- CITIGROUP is planning to expand its use of securitizations as part of the Wall Street bank’s strategy to scale up its climate finance business.
- DUPONT DE NEMOURS upgraded to overweight at Wells Fargo.
- EXXON Norway’s $1.6tn wealth fund said it will vote next week against the election of Exxon Mobil Director Joseph Hooley after the oil and gas giant filed a lawsuit against climate-focused shareholders.
- GUARDANT HEALTH’s +20% Shield blood test to screen for colorectal cancer received the support of an FDA advisory panel >> EXAS -4%
- JPMORGAN was ordered to pay $200mn for failing to capturebns of orders in its surveillance systems.
- LUCID GROUP will eliminate about 400 jobs in the coming months, the latest move by an electric-vehicle maker to cut costs in a dramatically slowing market for plug-in cars.
- LYONDELLBASELL qtr div $1.34 / shr, prior $1.25 regular cash.
- META PLATFORMS is considering charging users for a more advanced version of its AI-powered assistant, called Meta AI.
- META is working on a paid version of its AI-powered assistant, The Information said.
Key Events
Friday
14:35 Fed's Waller Gives Keynote Address on R*
15:00 U. of Mich. Sentiment
Game Of Corporate Actions
DIV EX DATE
- Today : 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)
- Tuesday : --
EARNINGS
- Today : --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)
- Tuesday : --