Indicators
Wake Up Call
- Hello ! US equities were poised for modest gains Monday, with tech stocks outperforming amid renewed optimism about monetary easing.
- TECH REBOUND - Big tech was primed for gains after a three-day slump as new artificial intelligence chips boosted NVIDIA and ADM. GAMESTOP doubled in a return of the meme-stock craze.
- TRUMP RISK - If Donald Trump is elected president again, the Federal Reserve will face a significant risk of losing its independence to ramped-up political interference. That’s according to the latest Bloomberg Markets Live Pulse survey. About 24% of 484 survey participants said a Trump win would immediately cause the 10-year Treasury yields to rise more than 25 basis points. In the meantime, Trump joined TikTok, the Chinese-owned platform he tried to ban in the US, as the presumptive 2024 Republican nominee steps up efforts to reach young voters.
Wall Street Movers
- AUTODESK +6.6% reassigned its CFO after an internal investigation into accounting practices delayed financial filings for weeks. Company also raised 2Q rev view $1.48bn to $1.49bn (1.48bn exp) & adj EPS $1.98 to $2.04 (1.98 exp).
- CHIP NVIDIA +3% CEO Huang stated to upgrade its AI accelerators every year. The CEO said on Sunday that the next-generation AI intelligence chip platform, called Rubin, would be rolled out in 2026, according to Reuters. Analysts at BofA Global Research raised their price target for the chip giant’s stock to a Street-high. AMD +1.4% is also speeding up the introduction of new Ai processors as it seeks to dent Nvidia’s domination of that lucrative market.
- EDWARDS LIFESCIENCE flat Critical Care product group to be acquired by BECTON DICKINSON for $4.2bn in cash. Edwards will no longer pursue the previously announced spin-off of Critical Care and will use the after-tax cash proceeds to fund strategic growth investments. BD expects to fund the all-cash transaction with approximately $1bn of cash and $3.2bn of new debt.
- GAMESTOP +72% after the REDDIT account that drove the meme-stock mania of 2021 posted what appeared to be a $116m position in the stock.
- HONEYWELL +1.20% sees FY sales $38.5bn to $39.3bn, saw $38.1bn to $38.9bn.Separately, CARRIER GLOBAL announced it has completed the sale of its security business, Global Access Solutions, to HONEYWELL for an enterprise value of $4.95bn.
- HUMANA -2.70% still sees FY adj EPS about $16, missing est $16.27
- PARAMOUNT +7% SKYDANCE agreed to put in a minimum of $1.5bn to pay down debt on Paramount’s balance sheet as part of a sweetened offer, The New York Times reports, citing sources. Paramount parent National Amusements wants Skydance to provide legal protection in the event of an investor lawsuit; Skydance has not yet signed off. Firms are still settling the issue of whether Paramount will be given a go-shop period to get a superior offer or submit the deal to a shareholder vote.
- PFIZER flat and other drugmakers must face trials in state court in Delaware after a judge found the evidence backing up claims the companies’ former Zantac heartburn treatment causes cancer is legitimate and can be heard by juries.
- STERICYCLE +10% to be acquired by WASTE MANAGEMENT for a total enterprise value of about $7.2bn when including about $1.4bn of Stericycle’s net debt (Purchase price of $62/shr in cash). Both WM and Stericycle expect to achieve previously announced full-year guidance, excluding the impact of any transaction-related costs.
At A Glance
- AMERICAN AIRLINES The union for the airline’s flight attendants said its members should prepare for a strike after federal mediators overseeing intense negotiations ordered both sides to continue talks in an effort to reach a contract agreement.
- BLACKSTONE is exploring the sale of Alinamin Pharmaceutical, a Japanese consumer healthcare firm previously owned by Takeda Pharma for around $1.9bn, Bloomberg reported on Monday, citing sources. Interest in Alinamin has been expressed by investment firms such as CVC Capital Partners Plc, EQT AB, and MBK Partners, according to the report. Additionally, an IPO remains a viable option, it added.
- BOEING has resumed deliveries of new aircraft to China, including 737 Max and 787 Dreamliner planes, Shenzhen TV reported on Sunday, citing President of Boeing China Liu Qing, as saying in an interview.
- DEERE will cut an undisclosed number of employees in its global production and salaried workforce.
- GOOGLE's Cloud unit made sweeping job cuts this week.
- HERTZ Names Scott Haralson New CFO
- JETBLUE still sees 2Q capex of about $550m ($550.6m exp). Sees rev -6.5% to -9.5%, saw -6.5% to -10.5%. Co. continues to experience healthy overall demand trends.
- LIVE NATION ENTERTAINMENT said its Ticketmaster database may have been hacked by someone who’s now offering to sell customer data on the dark web.
- MODERNA & MERCK announce 3 year follow-up data for MRNA-4157 in combination with Keytruda ; continues to show clinically meaningful and durable improvement in recurrence-free survival
- TESLA faces the prospect of tens of thousands of its international
- retail shareholders, with around $17bn of stock, being unable to vote at its annual meeting because investment platforms have failed to put adequate cross-border systems in place.
- UNITED AIRLINES CEO says demand is steady at the moment but industry seat growth is expected to moderate in H2, noting that some low cost carriers will struggle to survive.
Broker Moves
UPGRADES
- BEST BUY upgraded to buy from sell at Citi.
DOWNGRADES
- CAVA GROUP Cut to Neutral at JPMorgan; PT $77.
- DELL TECHNOLOGIES to hold from buy at Citic Securities.
- MARATHON OIL to neutral from buy at Citi.
INITIATIONS
- TARGET Rated New Underperform at BNPP Exane; PT $116.
Today's Key Events
14:45 US S&P Global PMI Manufacturing US
15:00 US ISM Manufactuing, Prices Paid, New Orders and Empoyment ; US Construction Spending MoM
Game Of Corporate Actions
DIV EX DATE
- Today : Ball ($0.2); BorgWarner ($0.11); Expeditors ($0.73); The Hartford ($0.47); Juniper Networks ($0.22); Kellanova($0.56); Lockheed Martin ($3.15); LyondellBasell Industries ($1.34); M&T Bank ($1.35); Martin Marietta Materials ($0.74); McDonald's ($1.67); McKesson ($0.62); NextEra Energy ($0.515); NIKE ($0.37); Pripal Financial ($0.71); Realty ome ($0.2625); Regions Financial ($0.24); UHS ($0.2)
- Tomorrrow : Analog Devices ($0.92); Cigna Group($1.4); Corteva ($0.16); Interpublic of Cos ($0.33); L3Harris ($1.16); Linde ($1.39); Newmont ($0.25); Stanley Black & Decker ($0.81)
EARNINGS
Today aft mkt : Gitlab
Tomorrow bef mkt : Bath & Body Works ; Core & Main
Tomorow aft mkt : Crowdstrike ; Guidewire Software ; Hewlett Packard