Indicators
Wake Up Call
- Hello ! US stock futures were trending lower in recent premarket activity Tuesday as investors await the Federal Reserve's interest rate decision and key inflation data coming out Wednesday. Investor demand for haven assets rose as jitters over political upheaval in Europe intensified.
- FED & INFLATION - The Fed, which kicks off its June meeting later in the day, is expected to keep rates unchanged when it announces its decision Wednesday. And inflation data, which is also scheduled to be released on Wednesday, is expected to show that consumer prices rose 0.1% in May from April, when it increased 0.3% from the previous month, according to Investing.com. Annual rates are expected to remain unchanged at 3.4%.
- MEDICAL - The Biden administration Tuesday will announce rules to block medical debt from being used to evaluate borrowers' fitness for mortgages & other types of loans, sources told The Washington Post. The rules would ban credit reporting agencies from incorporating medical debt when calculating credit scores. The rules would also bar lenders from using medical debt to determine loan eligibility.
- TRUMP WINNER ? The market’s consensus view is for Trump to win the White House, the GOP to win the Senate, and for Democrats to win the House, JPMorgan says in a note to clients. Investors remain sanguine about the market implications for the US elections. Only 12% of a JPM survey respondents see the election as the biggest threat to markets. Investors looking to manage exposure to escalating US-China tariffs, should watch US companies with high direct revenue exposure to China, and US importers.
Wall Street Movers
- APPLE -0.4% took the wraps off long-awaited new artificial intelligence features, including a partnership with ChatGPT maker OpenAI + Announces Vision OS2, expands Apple Vision Pro to eight new countries, announces Apple Tap to Pay. In the meantime, Elon Musk said he would ban Apple devices from his companies if OpenAI’s software is integrated at the operating system level, calling the tie-up a security risk.
- AT&T flat still sees FY capex 4cst $21b to $22 (est $18.67b). AT&T remains focused on driving incremental efficiencies through its goal of $2b+ in run-rate cost savings by mid-2026.
- CRYPTO Shares of cryptocurrency-linked companies are slumping in premarket trading Tuesday, as Bitcoin drops to a one-week low >> BTBT -4%, MARA -3.60%, COIN -3.5%...
- ELI LILLY +2% after an FDA advisory panel recommended the firm’s Alzheimer’s drug for regulatory approval. Recalled CVS-brand drugs expose links to tainted factories. Separately, co. exec says mid-single digit percentage of patients paid full list price out of pocket for Zepbound in 1Q.
- GENERAL MOTORS +1.2% authorized a new $6b share buyback plan and raised its dividend from $0.09 to 0$.12 as the automaker said improving profitability in its electric vehicle operations allowed it to return cash to investors. Co. increased its common stock dividend 33% from 9c/shr to 12c/shr in 1Q.
- SPOTIFY +2.90% is to introduce more expensive subscription tier; will cost at least $5 more per month, according to Bloomberg.
At A Glance
- ADM expanded a recall of several livestock-feed products that may contain high levels of magnesium, sodium, calcium, chloride or phosphorus.
- BOOZ ALLEN still sees FY25 rev +8% to +11%. Maintains adj EPS $5.80 to $6.05 (est $6.02).
- DELL, BROADCOM extend commitment to serving customers and partners with broad jointly engineered hyperconverged solutions portfolio.
- DXC TECHNOLOGY rising after Reuters reported Apollo Global and Kyndryl Holdings are in talks for a joint bid for the information technology services company. The acquisition offer for DXC is between $22/shr and $25/shr. DXC is separately running a process to sell its insurance software business for more than $2b, and may opt to remain an independent company under Raul Fernandez.
- MARSH & MCLENNAN's Mercer has agreet to buy pension manager Cardano, which oversees over GBP 50bn in assets, deal to be announced as early as this afternoon, according to FT citing sources.
- NEXTERA ENERGY reaffirms its adj. EPS for 2024, 2025, 2026 ; now expects 2027 EPS to be in the range of $3.85-4.32.
- REGENERON anticipates obesity drug trial data by 2025
- TARGET HOSPITALITY plunged 32% after it said late Monday that it has received notice that the US government will terminate the existing South Texas Family Residential Center services deal with the company's migrant programming partner.
- WELLS FARGO CFO says underlying consumer deposits have been pretty stable
- ZSCALER announced a collaboration with NVIDIA to accelerate AI powered co-pilot technologies
- ZIMMER BIOMET enters distribution agreement with THINK surgical to offer TMINI® miniature handheld robotic system for total Knee Arthroplasty.
Broker Moves
DOWNGRADES
- CLEVELAND-CLIFFS downgraded to neutral at JPMorgan
- COMCAST downgraded to underperform at BNPP.
INITIATIONS
- GE VERNOVA rated new neutral at Citi; PT $183
- ROCKET LAB rated new neutral at Goldman; PT $4.50
Today's Key Events (UK Time)
15:00 FOMC Begins Two-Day Meeting, ECB's Makhlouf Speaks in Dublin
Game Of Corporate Actions
DIV EX DATE
- Today : Nvidia ($0.01); Ross Stores ($0.3675)
- Tomorrow : Ameren Corp($0.67); HP ($0.2756); Public Storage($3); Regency Centers ($0.67); STERIS ($0.52)
EARNINGS
- Today aft mkt : Oracle
- Tomorrow aft mkt : Broadcom