Indicators
Wake Up Call
- Hello ! Stock futures remained higher as traders sifted through a batch of economic data for clues on the outlook for Federal Reserve policy.
- DATAS
* US Weekly Jobless Claims Fell 5K to 238K, median est. 235k.
* US May Housing Starts Fell to 1,277k Annualized, est. 1,370k
* June Philadelphia Fed Index Fell to 1.3, Below Est. 5
* US Continued Jobless Claims w/e 1.828m vs. Exp. 1.805m
Wall Street Movers
- ACCENTURE +7.8% 3Q Bookings $21.1b, +23% y/y, est $17.69b, including a surge in its generative AI offering to more than $900m. Sees 4Q rev $16.05b to $16.65b (est $16.59b). Cut FY adj EPS 4cst $11.85 to $12.00, saw $11.97 to $12.20 (est $12.08). 3Q Rev $16.47b (est $16.56b). 3Q Adj EPS $3.13 (est $3.14).
- AMD +1% believes a limited amount of information related to specifications used to assemble certain AMD products was accessed on a third-party site but does not believe this data breach will have a material impact on its business.
- DELL +3% – SMCI +4.6% CEO Michael Dell said the company is building a “Dell AI factory” for Elon Musk’s startup xAI alongside NVIDIA +3%.
- DISCOVER FINANCIAL flat Carlyle and KKR are among the final bidders for a $10b US student loan portfolio from Co.
- HONEYWELL flat has struck a roughly $2b deal to buy aerospace and defense technology company CAES Systems from ADVENT INTERNATIONAL.Acquisition will enhance Honeywell’s defense technology solutions across land, sea, air and space. Deal is expected to close H2.
- JABIL +2.20% reports preliminary 3Q revenue $6.8b, consensus $6.53b. 3Q core EPS $1.89, consensus $1.85.
- JAZZ PHARMA -3.8% after saying its experimental therapy suvecaltamide to treat essential tremor didn’t achieve statistical significance in a mid-stage trial.
- JPMORGAN flat joined rival GOLDMAN SACHS in scrapping a cap on London bankers’ bonuses. The move will allow JPMorgan’s bankers to earn a bonus that’s as much as 10 times their base salary.
- KROGER +3.40% 1Q Sales $45.27b, est $44.98b. Adj EPS $1.43, est $1.35. Still sees FY25 adj EPS $4.30 to $4.50, est $4.43. Expects to continue to pay its quarterly dividend and expects this to increase over time.
- TRUMP MEDIA & TECHNOLOGY -10% in premarket trading after the US SEC declared effective a regulatory filing that could dilute shareholders.
At A Glance
- ABBVIE’s Skyrizi wins FDA approval for adults with moderately to severely active ulcerative colitis.
- AMAZON says it has already eliminated some 95% of the thin plastic cushions in its largest market and anticipates removing the rest by year-end.
- APPLE in talks w/ FIFA for worldwide television rights this year, which would help FIFA to pay fees to participating teams. New York Times first reported the value of the Apple deal might be about $1b , a quarter of the value FIFA was initially targeting.
- AUTOZONE authorizes repurchase of additional $1.5b of common stock
- BLACKSTONE / KKR A group of private credit lenders has provided $1.4 billion to DuBois Chemicals to refinance existing debt, acc. to sources. Blackstone Inc., KKR & Co. and Antares Capital are among the firms that participated in the financing, said the people, asking not to be named discussing a private transaction
- BOEING Families of the victims of two fatal 737 Max crashes are asking DOJ to seek to fine Co. nearly $25b.
- BUNGE BP is taking full control of its Brazilian biofuels joint venture, BP Bunge Bioenergia, with the acquisition of its partner's 50% shareholding valued at $1.4bn, as part of its plan to focus on new biofuels projects.
- DARDEN sees FY25 sales 4cst $11.8b to $11.9b (est $11.93b). Comparable sales +1% to +2% (est +1.85%). 4Q sales $2.96b (est $2.97b). Adj EPS from continuing operations $2.65 (est $2.62). Co. declares Qtr Div $1.40 / Shr, Prior $1.31 Regular Cash.
- ELI LILLY is cracking down further on fake and compounded versions of its obesity drug, Zepbound, while the weight-loss drug frenzy is luring rich Indians to turn to the flourishing gray market.
- GENERAL ELECTRIC, operating as GE Aerospace to delist from LSE, Euronext and SIX. A decision is part of a simplification project across multiple jurisdictions.
- HERTZ is looking to raise $750m in a two-part junk bond offering as it works to bolster its balance sheet after a misstep on its electric vehicle fleet.
- HPE’s acquisition of Juniper was imposed a deadline of August 14 for its phase 1 by the UK CMA.
- KB HOME 2Q revenue $1.71b, consensus $1.65b. 2Q EPS $2.15, consensus $1.80. 2Q deliveries 3,523, -3.9% y/y, est 3,416. Sees FY Housing revenue $6.7b to $6.9b, saw $6.50b to $6.90b, est $6.71b.
- MCDONALD’S will kick off a marketing blitz and a new $5 meal deal on June 25, raising the stakes of what’s shaping up to be an all-out battle among US restaurants desperate to lure back inflation-battered diners.
- META restructured its Reality Labs hardware division today into two groups: Wearables and MetaverseI've heard that a small number of employees were laid off as a result.
Broker Moves
DOWNGRADES
- NIKE downgraded to a joint Street low at Williams Trading; PT $75.
- SPIRIT AERO downgraded to hold at Benchmark; PT 35
- TESLA Target Cut as RBC Lowers Estimates For Robotaxi Business
UPGRADES
- ESAB rated new outperform at Oppenheimer; PT $115
- ROBINHOOD rated new buy at Sealand Securities
Today's Key Events (UK Time)
1.30pm : US Current Account Balance, Initial Jobless Claims and Philadelphia Fed Business Outlook
1.45pm : Fed’s Kashkari (2026 voter) speaking at a banking conference
9pm : Fed’s Barkin (2024 voter) to speak on the economic outlook
Game Of Corporate Actions
DIV EX DATE
- Today : Best Buy ($0.94); Seagate Technology ($0.7)
- Tomorrow : Carrier Global ($0.19); Federal Realty Investment ($1.09); International Flavors & Fragrances ($0.4); Philip Morris ($1.3)
EARNINGS
- Tomorrow bef mkt : CarMax Inc; FactSet