Good Morning US Marex Equities 4th June 2024

US stock futures slid on Tuesday as investors await more data that could elevate concerns about the health of the economy.

Indicators

Wake Up Call

• Hello ! US stock futures slid on Tuesday as investors await more data that could elevate concerns about the health of the economy. After figures Monday showed that factory output came close to stagnating in May, attention is now turning to a report due later today that is forecast to indicate a monthly drop in job openings. All that comes before Friday’s ever-crucial payrolls number.
  
  
• OIL - also extended losses from its lowest settlement in almost four months after OPEC+’s plan to return barrels to the market earlier than expected raised concerns about oversupply.
  
  
• LATER TODAY - Factory orders, scheduled for release at 3pm UK, are expected to rise 0.7% in April vs March's 1.6% gain. Job openings based on the Labor Department's Job Openings and Labor Turnover Survey, also due at 3pm, are expected to have slowed to an 8.37 million rate in April from March's 8.488 million.

Wall Street Movers

• BATH & BODY WORKS -7.6% sees 2Q EPS 4cst 31c to 36c (est 39c). Sees FY net sales down 2.5% to flat. 1Q Adj EPS 38c (est 33c). Net sales $1.38b (est $1.37b).
  
  
• ELI LILLY flat Mounjaro is being recommended for weight loss for some UK patients with obesity, in draft guidance that could see the National Health Service offer a rival drug to Novo Nordisk A/S’s hit treatment Wegovy.
  
  
• GAMESTOP -2.3% E*Trade may ban “Roaring Kitty” Keith Gill as the SEC explores possible stock manipulation around his posts on GameStop, the WSJ reported. Citron’s Andrew Left is shorting the video game retailer again.
  
  
• INTEL +1.5% showed its new Xeon 6 data center processors with more efficient cores that will allow operators to cut down the space required for a given task to a third of prior-generation hardware. CEO expects will help turn back the tide of share losses to peers, including AI leader Nvidia.
  
  
• META -0.8%/ SNAP -0.9% New York is said to plan to ban social media firms from using algorithms to steer content to children without parental consent under a tentative agreement reached by state lawmakers, WSJ sources said.
  
  
• PHILIP MORRIS flat raises FY24 adj diluted EPS 4cst to $6.26 to $6.38 due to strong momentum of IQOS and ZYN and resilience of the combustible business. Reiterates 2024 4cst adj diluted EPS ex-currency of 9% to 11% growth.
  
  
• TESLA’ flat upcoming shareholder vote is “all that matters” for the stock in the near term, Piper Sandler. if shareholders vote in favor of the board’s recommendations, then Tesla shares will likely trade sideways at worst.

At A Glance

• ALPHABET is reportedly laying off employees from several teams in Google’s cloud unit, one of its fastest-growing businesses, CNBC sources say.
• APPLE and TESLA have won two small but significant consumer-led lawsuits in China on a market dominance case, in a sign that Beijing is trying to project a "rule-of-law" message to foreign investors.
• BOEING and Turkish Airlines are in talks for the potential purchase of about 250 jetliners, months after locking down a major deal with European planemaker Airbus.
• CHARLES SCHWAB’s stocks can be used to invest in any of America’s leading companies in the S&P 500 for as little as $5, with no commission for online trades for UK investors.
• FERGUSON raised its FY adj op margin view 9.2% to 9.6%, saw 9.2% to 9.8%. 3Q rev $7.31b (est $7.32b). Adj operating profit $674m (est $671.2m). Adj EPS $2.32, est $2.30.
• GITLAB 2Q rev 4cst $176.0m to $177.0m (est $177.1m) despite good Q1 results. Raised FY25 rev 4cst $733.0m to $737.0m (est $729.2m). 
• HEALTHEQUITY raised FY adj EPS 4cst $2.93 to $3.10, saw $2.79 to $2.96, (est $2.89). Rev $1.16b to $1.18b, saw $1.14b to $1.16b, (est $1.16b). 1Q adj EPS 80c, est 66c.
• ILLUMINA’s Grail is anticipated to spin off from Illumina on June 24 and has applied to list on Nasdaq as “GRAL.”
• KKR and EQT are among shortlisted bidders for a stake in Cellnex’s Polish unit.
• MICROSOFT is cutting hundreds of jobs from its Azure business.
• NORTHROP GRUMMAN was awarded a U.S. Navy contract valued at up to $119.6m.
• NVIDIA is still working on the certification process for Samsung Electronics Co.’s high-bandwidth memory chips, a final required step before the Korean company can begin supplying a component essential to training AI platforms.
• TESLA’s upcoming shareholder vote is “all that matters” for the stock in the near term, Piper Sandler says. if shareholders vote in favor of the board’s recommendations, then Tesla shares will likely trade sideways at worst.
• VERTIV declares qtrly div of 2.5c/shr, it will be payable on June 26.
• Watch PSYCHEDELIC stocks such as Mind Medicine, Atai Life Sciences, on Tuesday when a panel of FDA advisers will review data for an experimental MDMA drug designed to treat post-traumatic stress disorder. 

Broker Moves

UPGRADES

• HEICO upgraded to equal weight at Morgan Stanley
• PAYPAL, ORACLE, CIGNA among MIZUHO's new June top picks
• WILLIAMS COS raised to Overweight at Wells Fargo
• ENPHASE, TERDAYNE added to Goldman conviction list

DOWNGRADES

• STANLEY BLACK & DECKER cut to equal-weight at Barclays; PT $86
• TARGET removed from Goldman Sachs conviction list

Today's Key Events (UK Time)

3pm US JOLTS Job Openings; US Factory Orders & Durable Goods Orders & Durables Ex Transportation. 

Game Of Corporate Actions

DIV EX DATE 

• Today : Analog Devices ($0.92); Cigna ($1.4); Corteva ($0.16); Interpublic of Cos ($0.33); L3Harris ($1.16); Linde ($1.39); Newmont ($0.25); Stanley Black & Decker ($0.81)
  
  
• Tomorrrow : Avery Dennison ($0.88); Halliburton ($0.17); Old Dominion ($0.26); Schlumberger ($0.275)
  
  

EARNINGS

Today aft mkt : Crowdstrike ; Hewlett Packard

Tomorrow bef mkt : Brown-Forman ; Campbell Soup ; Dollar Tree

Tomorow aft mkt : Lululemon Athletica

Stay Tuned