Indicators
Wake Up Call
- Hello ! US equity futures were mixed Thursday after Federal Reserve officials kept the benchmark lending rate unchanged.
- ON THE FED - UBS expects the Fed to begin cutting in December (prev. September). See less than a 50% chance that the Fed cuts in September. And Citigroup said "Softer inflation alone will likely be enough to convince the Fed to cut policy rates in September. And a significant weakening in the labor market has us expecting that the Fed will then continue to cut at each of the next seven meetings.". Swap traders are currently pricing in a 25bp rate cut by November, with a 75% likelihood of a similar reduction by year-end. That compares with a 50% chance of a second cut two days ago. US initial jobless claims and producer price data may offer more signals later on Thursday.
- LOOKIND AHEAD - US PPI, Comments from Fed’s Williams, Earnings from Adobe.
Wall Street Movers
- APPLE (flat)-OPENAI partnership isn’t expected to generate meaningful rev for either party. Apple isn’t paying OpenAI as part of the partnership, Co. believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments.
- BROADCOM +14.5% sees FY rev 4cst $51.0b, est $50.58b supported by strong demand for AI products. 2Q Adj EPS $10.96, est $10.80. Adj net rev $12.49b, est $12.06b. The company also announced a 10-for-1 stock split and $5.25/shr in quarterly div.
- DAVE & BUSTER’S -10% 1Q Rev $588.1m (est $615.5m). EPS 99c (est $1.76). Truist Securities said the results were “muted by stiff macro headwinds,” while noting that a turnaround is still in progress.
- JPMORGAN flat executive Rohrbaugh says trading rev in 2Q is trending slightly better than mid-single digit growth guidance, while investment banking rev could be up by 25%-30% Y/Y in 2Q.
- TESLA +5% after Elon Musk said shareholders, including VANGUARD and BLACKROCK, voted “by wide margins” in favor of re-approving his compensation package and moving the company’s state of incorporation to Texas. Co. also expects Model 3 prices to rise in Europe starting July 1.
At A Glance
- 3M will transfer about $2.5b of its defined benefit pension obligations and related plan assets for about 23,000 US retirees and beneficiaries, or about 60% of participants.
- ABBVIE and FutureGen Biopharmaceutical today announced a license agreement to develop FG-M701, a next generation TL1A antibody for the treatment of IBD currently in preclinical development.
- APPLIED MATERIALS announced qtr div 40c/shr, prior 40c/shr.
- ALPHABET’s Google has partnered with a Nevada utility and a geothermal energy startup to run data centers on electricity derived from the earth’s own heat.
- BOEING FAA will maintain its stepped-up oversight of Co. that the agency began after a fuselage panel blew off a 737 Max in January.
- LEIDOS was awarded a $738m U.S. Air Force cybersecurity and IT support contract.
- META was hit with a Norwegian complaint over its plans to use the images and posts of users on Facebook and Instagram to train AI models.
- MICROSTRATEGY to offer $500m of conv sr notes to buy more bitcoin.
- MODERNA announces Positive Phase 3 Efficacy Data for mRNA-1283, the Company’s Next Generation COVID-19 Vaccine.
- OPENAI is on pace for $3.4b of annual rev, CEO Sam Altman told the company’s staff. CEO also said OpenAI is on track to generate about $200m by offering access to its AI models through Microsoft Azure.
- PFIZER provides update on phase 3 study of investigational gene therapy for ambulatory boys with DMD; study did not meet primary endpoint
- PLANET FITNESS enters $280m accelerated share repurchase agreement with CITIBANK.
- REPLIGEN has designated Olivier Loeillot to succeed Tony Hunt as chief executive of the life-sciences company.
- SPOTIFY hit with FTC Complaint by The National Music Publishers’ Association about Co’s decision to provide audiobooks to subscribers. The audiobooks addition gave Spotify leeway to reclassify its premium subscription offering as a “bundle”.
Broker Moves
UPGRADES
- MID-AMERICA raised to buy at Janney Montgomery; PT $150
DOWNGRADES
- CARA THERAPEUTICS downgraded to hold at Stifel; PT $1
- CORNING downgraded to equal-weight at Morgan Stanley on Valuation
INITIATIONS
- CIVITAS RESOURCES rated new buy at TD Cowen; PT $90
- CNA FINANCIAL rated new hold at Baptista Research; PT $47.10
- GE VERNOVA rated new buy at Argus; PT $190
- SHAKE SHACK rated new buy at Goldman
Today's Key Events (UK Time)
Game Of Corporate Actions
DIV EX DATE
- Today : Intercontinental Exchange ($0.45); NXP Semiconductor ($1.014)
- Tomorrow : Albemarle ($0.4); Allegion ($0.48); Altria ($0.98); American International ($0.4); American Tower ($1.62); AMETEK ($0.28); Automatic Data Processing ($1.4); Broadridge Financial ($0.8); Chubb ($0.91); Coca-Cola ($0.485); Comerica ($0.71); Crown Castle ($1.565); Devon Energy ($0.35); Digital Realty ($1.22); Domino's Pizza ($1.51); Extra Space Storage ($1.62); Gilead Sciences ($0.77); Global Payments ($0.25); HCA Healthcare ($0.66); Hess ($0.4375); Leidos ($0.38); Meta ($0.5); Motorola Solutions ($0.98); Nasdaq ($0.24); Packaging of America($1.25); T Rowe ($1.24); Textron ($0.02); Thermo Fisher Scientific ($0.39); Verisk Analytics ($0.39); Xcel Energy ($0.5475)
EARNINGS
- Today aft mkt : Adobe