Indicators
Wake Up Call
- Hello ! Stock futures rose after a private payrolls report pointed to a slowdown in the US labor market that would allow the Federal Reserve to start cutting interest rates. Equities pushed higher in early trading after data showed hiring at US companies grew in May at the slowest pace since the start of the year. Private payrolls increased 152,000 last month, according to the ADP Research Institute. The median estimate called for a 175,000 increase. Treasuries barely budged.
- UPCOMING - The final S&P Global US services sector purchasing managers’ index, due at 2.45pm UK, is expected to show a reading of 54.8 for May, up from 51.3 in April. The ISM’s non-manufacturing index for May will be released at 3pm. The PMI may have increased from 49.4 in April to 50.7 in May.
Wall Street Movers
- 3D SYSTEMS +18% after Co. announced a multi-year purchase agreement in support of the indirect manufacturing process for clear aligners.
- CAMPBELL SOUP +1.60% 3Q net sales $2.37b (est $2.34b). Adj EPS 75c (est 70c). Sees FY net sales +3% to +4%, saw -0.5% to +1.5%.
- CROWDSTRIKE +6.8% 1Q rev $921.0m (est $904.7m) despite a pullback in spending that has challenged its cybersecurity rivals. Adj EPS 93c (est 90c). Boosted FY25 rev 4cst $3.98b to $4.01b, saw $3.92b to $3.99b, est $3.97b.
- DOLLAR TREE -1% after WSJ reported that the retailer is exploring options for the Family Dollar unit, which may include a sale or spinoff. Co. has not set a deadline or definitive timetable for the process, and there can be no assurance it will result in any particular outcome. Maintains FY25 net sales 4cst $31.0b to $32.0b. 2Q adj EPS $1.43 (est $1.44). Co. has not set a deadline or definitive timetable for the process, and there can be no assurance it will result in any particular outcome.
- GUIDEWIRE +8% 3Q adj EPS 26c (est 13c). Rev $240.7m (est $231.3m). Boosts FY rev 4cst $968m to $976m, saw $957m to $967m (est $965.3m).
- HP +15% 2Q Net rev $7.20b (est $6.82b) w/ AI systems rev more than doubled sequentially. Adj EPS (est 39c). Boosted FY rev adj for currency from +1% to +3%, saw 0% to +2%. Sees adj EPS $1.85 to $1.95, saw $1.82 to $1.92 (est $1.87).
- INTEL +1% agreed to sell a 49% stake in a plant in Ireland to Apollo for $11bn as Co. seeks to bring in more external funding for an expansion in its factories.
- PSYCHEDELIC STOCKS fell after the drug MDMA failed to get backing from US regulatory advisers to treat post-traumatic stress disorder >> MNMD -12%, CMPS -12%, ATAI -5.8%
At A Glance
- ALPHABET named Anat Ashkenazi as its new CFO, replacing Ruth Porat who announced last year she would be stepping down from the role.
- AMAZON / COMCAST / DISNEY US NBA reportedly closing on a $76b TV deal ; is in advanced talks with NBC, Amazon and ESPN, according to WSJ.
- BOEING for the third time in roughly a month, will try to launch its long-delayed space taxi with the vehicle’s first human crew for NASA.
- BRISTOL MYERS in collaboration w/ I-Mab to evaluate Givastomig in a combination study for newly diagnosed.
- BROWN-FORMAN 4Q EPS $0.56 (exp. 0.42). Revenue $0.964b (exp. 1.03b). Gross margin 59% (exp. 61.6%), operating margin 38.9% (exp. 27.4%). FY25 organic net sales growth range in 2-4% (exp. +2.7%)
- CHEMOURS names Shane Hostetter new CFO.
- EBAY will drop American Express cards as a payment option on the online marketplace because of “unacceptably high fees”.
- GILEAD SCIENCES reports positive two-year interim results from the ongoing study of seladelpar.
- GOLDMAN SACHS-backed Starling says no plans to pursue EU bank license, expansion to come from software
- HANNESBRANDS signs agreement to sell the global Champion business to Authentic Brands group for $1.2b
- PFIZER says updated Covid vaccines targeting JN.1 and KP.2 variants confers a better immune response versus older vaccine against emerging variants
- SNOWFLAKE analysts are mostly positive on the infrastructure software company following its Summit 2024 user conference.
- UNITEDHEALTH boosts cash div to $2.10/shr from $1.88.
- WALKME SAP to acquire WalkMe for $14.00 per share in an all-cash transaction
Broker Moves
UPGRADES
- APPLIED MATERIALS upgraded to equal-weight at Barclays.
- KLA upgraded to equal-weight at Barclays; PT $765
- UNITEDHEALTH raised to buy at HSBC; PT $580
- META's PT raised to $550 from $525 at Raymond James
Today's Key Events (UK Time)
2.45pm S&P Global US Services PMI / Global US Composite PMI
3.00pm ISM Services Prices Paid / ISM Services Employment
Game Of Corporate Actions
DIV EX DATE
- Today : Avery Dennison ($0.88); Halliburton ($0.17); Old Dominion ($0.26); Schlumberger ($0.275)
- Tomorrrow : Kimco Realty ($0.24); Kraft Heinz ($0.4); Mosaic ($0.21)
EARNINGS
Today aft mkt : Lululemon Athletica, Victoria’s Secret, Five Below
Tomorrow bef mkt : J M Smucker
Stay Tuned