Indicators
Wake Up Call
- Hello ! Nasdaq 100 futures were under pressure on Monday morning, with NVIDIA set for a third day of losses as investors cooled on tech’s sky-high valuations.
- WHAT TO EXPECT THIS WEEK - Attention will be on tier 1 economic data, with the highlight coming at the end of the week in the form of PCE, whereby WSJ’s Fed watcher Nick Timiraos said that inflation modellers expect the core PCE index rose around 0.08-0.13% M/M in May (vs +0.2% M/M in April). In addition to this, last Tuesday Musalem said PCE price index should show welcome downshift of inflation in May. As a reminder, in the latest Fed meeting they noted "there has been modest further progress" on inflation, with the dot plot showing only one rate cut in 2024. Elsewhere, Fed officials, as they did last week, are expected to sing from the same hymn sheet as Chair Powell, continuing to highlight data dependency and wanting to see inflation abate, with attention also on whether we get any further read into individual dot plots. Nonetheless, ahead of the next Fed meeting (31st July) there is still another set of inflation metrics, a jobs report, and June's core PCE.
- ON TAP - US Dallas Fed Manufacturing Business Index, Comments from ECB’s Schnabel, BoC Governor Macklem, Fed’s Waller, Goolsbee & Daly
Wall Street Movers
- INDEX RESCHUFFLING (eff today ahead mkt open)
* CROWDSTRIKE, KKR, GODADDY will join S&P 500 replacing ROBERT HALF, COMERICA and ILLUMINA (the latter company plans to spin off cancer-test maker Grail this month.)
* HERTZ GLOBAL is among the companies leaving the S&P MidCap 400 for the S&P SmallCap 600. - ALNYLAM PHARMA +38% vutrisiran, which is sold as Amvuttra, helped patients with a serious heart condition known as ATTR amyloidosis with cardiomyopathy. Its drug achieved a 28% and 33% reduction in death and heart-related hospitalizations in those two groups of patients.
- APPLE flat has been charged by the EU for failing to comply with a new digital-competition law. The EU alleged that the company's App Store rules are in breach of the Digital Markets Act "as they prevent app developers from freely steering consumers to alternative channels for offers and content." Separately, META held talks with APPLE about integrating the Facebook parent’s generative AI model into the iPhone maker’s AI system, Apple Intelligence, WSJ reported.
- BOEING -1.20% US prosecutors have recommended to senior DOJ officials that Co. face criminal charges for violating a settlement related to the two fatal crashes. Charges could extend beyond the original 2021 fraud conspiracy charge, Reuters said.
- BROADCOM (flat) & China's BYTEDANCE are working on developing an advanced AI processor which would use 5nm technology and manufacturing would be outsourced to TSMC, while it would be compliant with US export restrictions, according to Reuters sources.
- CRYPTOCURRENCIES Bitcoin extended losses amid cooling demand and uncertainty over monetary policy >> COIN -3.9%, MARA -4.7%. RIOT -3.4%, HUT -5.6%, CLSK -4.5%, MSTR -5.1%
- PARAMOUNT flat Constructive mention in Barron's. Said Paramount faces uncertain days as potential buyers eye its valuable film library. But private equity suitors are interested despite challenges and recent bid rejections by controlling shareholder Shari Redstone. Paramount's assets include CBS, MTV, and Nickelodeon, but its financial woes may necessitate a saviour to secure its future.
At A Glance
- ALASKA AIR reached a tentative agreement with the airline for a “record contract”.
- AMAZON – Formula 1 plan to debut a new AI “Statbot”. It will trawl race archives and parse torrents of real-time racing data to feed context and trivia to broadcast presenters.
- BIONTECH and DualityBio have received FDA fast track designation for antibody-drug conjugate candidate BNT324/DB-1311 in prostate cancer
- CHEVRON subsidiary lost its bid for a new trial and must pay $120m for damaging an oil company’s field, a California appeals court ruled on Friday, emphasizing the importance of efficiency in the jury selection process.
- LINCOLN ELECTRIC completes $550m private placement of senior unsecured notes and related refinancing transactions.
- NIKE faces a securities class action alleging its chief executive and CFO deceived investors by exaggerating the success of its digital marketing strategy.
- PEPSICO agreed to waive the change of control clause in the soft drink maker’s bottling arrangements, which would come into effect if an acquisition of the British firm by Carlsberg proceeds to completion.
- PFIZER GSK has lost out to Co. on a contract to supplyms of doses of its blockbuster RSV vaccine to the UK in a setback for the local pharma giant. Pfizer will deliver over 4.5m doses to UK starting in July.
- RXO to buy UPS’s asset-light freight brokerage business Coyote Logistics for more than $1b in a deal that adds scale.
- SONOCO agrees to acquire Eviosys from KPS Capital Partners for about $3.9b, cash-free, debt-free basis.
- TARGET is partnering with e-commerce specialist SHOPIFY to expand its marketplace for third-party merchant.
- VISTA OUTDOOR has accepted a $2b takeover proposal for its ammo business from the Czechoslovak Group, New York Times’ DealBook reports.
Broker Moves
DOWNGRADES
- PAYPAL is downgraded to neutral at Goldman Sachs; PT $42
INITIATIONS
- ALLY FINANCIAL reinstated buy at Citi; PT $50
- COCA-COLA rated new outperform at BNPP Exane; PT $72
- COGNIZANT rated new neutral at Goldman Sachs; PT $72
- EPAM SYSTEMS rated new neutral at Goldmann Sachs; PT $200
- HUMANA rated new equal-weight at Morgan Stanley; PT $374
- IBM rated new buy at Goldman Sachs; PT $200
- RYDER rated new overweight at Morgan Stanley; PT $165
Today's Key Events (UK Time)
2pm : Bloomberg June United States Economic Survey
2.30pm : Fed's Goolsbee Interviewed on CNBC
3.30pm : Dallas Fed Manf. Activity
7pm : Fed's Daly Gives Remarks on Economy, Policy
Game Of Corporate Actions
DIV EX DATE
- Today : Broadcom ($5.25); FedEx ($1.38); Johnson Controls ($0.37); W R Berkley ($0.12 + Special $0.5)
EARNINGS
- Tomorrow bef mkt : Carnival
- Tomorrow aft mkt: Fedex