Indicators
Wake Up Call
- Hello ! US equity futures were steady on Tuesday as traders awaited data and Federal Reserve speakers for more colour on whether officials incorporated the soft May CPI data within their SEP projections, considering how close the split was between forecasting 1-2 rate cuts this year. Additionally, any guidance on the conditions the Fed would need to see before initiating rate reductions will be in focus.
- TODAY'S FED SPEAKERS :
* Barkin (2024 voter; no text due; in mid-May, Barkin said inflation was still not where it needed to be, though was on a downward trajectory)
* Collins (2025 voter; text due; in May, Collins noted uncertainty still remains and urged patience, adding that the neutral rate may be higher in the medium-term)
* Goolsbee (2025 voter; no text due; last week, Goolsbee said that the latest inflation data brought relief, but more data like that was needed for the Fed to cut rates)
* Kugler (voter; text due; Kugler has stayed clear of monpol remarks in recent addresses)
* Logan (2026 voter; no text due; towards the end of May, Logan said that it was too soon to cut rates, but inflation was heading to 2%)
* Musalem (2025 voter; text unconfirmed; Musalem has not given any policy comments yet since commencing his term as St Louis Fed President in April) are due to give remarks - ON TAP ALSO - Retail sales, scheduled for release at 1.30pm Uk, are expected to have gained 0.3% in May vs no change in April. Industrial production, slated for 2.15pm, is expected to have risen by 0.3% in May compared with no change in April. April business inventories are due at 3pm, with forecasters calling for a 0.3% uptick following a 0.1% decline in March.
- EQUITY MARKET CLOSURE :
- US closed tomorrow (Juneteenth)
Wall Street Movers
- BOEING flat CEO Dave Calhoun will address a US Senate committee on Tuesday, acknowledging concerns about Boeing's safety culture following a January mid-air emergency involving an Alaska Airlines 737 MAX 9. Calhoun will outline ongoing actions and improvements, admitting the culture isn't perfect. He plans to step down by year-end. Elsewhere, BA lost track of up to 400 bad 737 parts that may have been installed on other jets, a whistleblower says.
- CHENIERE ENERGY +1% increases share repurchase authorisation by an additional $4b through 2027 and plans to increase Q3 2024 div by about 2% to $2/shr annualised.
- LA-Z-BOY +9% 4Q sales $553.5m, est $520.5m. Adj EPS 95c, est 70c despite a "volatile" furniture industry hit by a largely frozen housing market. Sees 1Q sales 4cst $475m to $495m and adj operating margin 6% to 7%.
- LENNAR -2% 2Q rev $8.77b, est $8.57b. Adj EPS $3.38, est $3.24. Sees 3Q new orders 20,500 to 21,000, est 21,095. Barclays noted that the guidance implies a large ramp in gross margin in 4Q, and that investors could be skeptical about its achievability.
- NEXTERA ENERGY -4.6% announced it intends to sell $2b of equity units to raise money for new energy projects and to pay down its short-term debt. Each equity unit will be issued in a stated amount of $50.
- PHILIP MORRIS -2.90% stopped online sales of its popular nicotine pouch brand Zyn in the US after an affiliate received a subpoena in the District of Columbia.
- SILK ROAD MEDICAL +23% after BOSTON SCIENTIFICic agreed to acquire the medical device maker for $27.50 a share, reflecting an enterprise value of about $1.16b.
At A Glance
- ALTICE USA Altice is preparing to sign a cooperation agreement — a pact designed to prevent creditor brawls — amid concerns that the troubled company could move assets away from their reach.
- AMAZON’s union members ally with Teamsters, which could help pressure the e-commerce leader in staff contract negotiations. Co's RXPASS expands access to prime members on medicare.
- APPLE is ending its buy now, pay later service, barely more than a year after it entered the buzzy area of consumer finance.
- BEST BUY is training tens of thousands of its employees to sell and repair Microsoft Corp.’s Copilot+ PCs.
- BLACKSTONE offers to pay 6,060 yen/shr for e-comic company Infocom in a tender offer launching Wed
- BRISTOL MYERS declared a quarterly div of $0.60/shr, payable on August 1, 2024, to stockholders of record at the close of business on July 5, 2024.
- GOOGLE launched the Gemini Advanced and Gemini mobile app in India.
- HOME DEPOT sold $10b worth of bonds in the US investment-grade market to help finance its acquisition of building-products distributor SRS Distribution.
- MERCK Gets FDA Approval for Keytruda Plus Carboplatin and Paclitaxel for Endometrial Carcinoma Treatment
- OCCIDENTAL PETROLEUM Berkshire increases Occidental Petroleum stake to nearly 29%
- ROCKET LAB USA +8% signed the largest Electron launch agreement in the firm’s history, a 10 Electron launch deal with Japanese Earth observation company Synspective.
- TESLA CEO Elon Musk told employees on Monday that the electric vehicle maker is working on stock-based compensation for high-performing employees.
Broker Moves
UPGRADES
- KROGER upgraded to outperform at BMO Capital Markets; PT $60
- SUNOCO upgraded to buy at Citi; PT $65
DOWNGRADES
- APPLE cut to neutral at Phillip Secs; PT $220
Today's Key Events (UK Time)
1.30pm : US Retail Sales
2.15pm : US Industrial Production
3pm : Fed’s Barkin (2024 voter) discusses economic outlook
4.40pm : Fed’s Collins (2025 voter) delivers keynote address
6pm : Fed Governor Kugler speaking on the economic outlook and monetary policy, Fed’s Logan (2026 voter) to speak at Headliners Club in Austin
6.20pm : Fed’s Musalem (2025 voter) speaking on the economy and monetary policy
7pm : Fed’s Goolsbee (2025 voter) speaking on the economy and monetary policy
9pm : US Net Long-term TIC Flows
Game Of Corporate Actions
DIV EX DATE
- Today : Amphenol ($0.11); Cinnati Financial ($0.81); Ecolab ($0.57); Hewlett Packard Enterprise ($0.13); Lam Research ($2); Pulte($0.2); Southwest Airlines ($0.18); VICI Properties ($0.415); Vistra ($0.2175)
- Thursday : Best Buy ($0.94); Seagate Technology ($0.7)
EARNINGS
- Thursday bef mkt : Accenture; Darden Restaurants; Jabil ; Kroger