Indicators
Wake Up Call
- Hello ! Stock futures pointed to gains at the Wall Street open as shares of technology bellwether NVIDIA advanced in premarket trading.
- US TREASURY - Later Tuesday, the US Treasury kicks off this week’s trio of bond sales with an offering of $69 billion in two-year notes. Demand for the shorter, rates-sensitive debt is expected to be stronger than at last month’s sale, coming ahead of statistics on Friday that are forecast to show a slowdown in the Federal Reserve’s favored inflation gauge.
- TECH SHARES - Tech shares have been the focus of US markets this week with traders rebalancing their portfolios as the quarter draws to a close. They’ve been taking profits from the AI-driven frenzy for tech stocks and switched into value shares and other laggards.
- ON TAP - The Case-Shiller Home Price Index is scheduled for release at 2pm UK. Then, the Consumer Confidence index, due at 3pm, is expected to drop to 100.0 in June from 102.0 in May, acc. to estimates compiled by Bloomberg.
Wall Street Movers
- BIRKENSTOCK -5% Holder L. Catterton offers 14m shares, days after it hit its highest level since its initial public offering.
- MICROSOFT flat risks a hefty EU fine after regulators accused Co. of abusing its market power by bundling the Teams video-conferencing app to its other business software. EU said it fired off a so-called statement of objections alleging that Microsoft’s practice of tying Teams to its Office 365 and Microsoft 365 packages fell foul of the bloc’s competition rules.
- NVIDIA +2%, a correction territory on Monday, as an ongoing selloff erased a historic amount of value for the AI-focused chipmaker. Its 13% drop since last week put it into a technical correction, a drop of 10% or more from a recent peak. Despite recent gyrations, the tech giant has more than doubled its value this year.
- PFIZER flat is currently testing three new weight-loss drugs, Semafor reports, citing the drugmaker’s CEO Albert Bourla. Two of the drugs would use the same GLP-1 technology as rival Novo Nordisk’s brand Ozempic, while a third uses a different mechanism that is under wraps, Bourla said at a Semafor business event Monday.
- POOL CORP -12% cut FY EPS 4cst $11.04 to $11.44, saw $13.19 to $14.19 (est $13.11) citing challenges in the discretionary parts of its business amid cautious consumer spending.
- SOLAREDGE -13% announced plans for a private offering of $300m in convertible senior notes. Additionally, it noted that a customer had filed for bankrupcy, meaning it might fail to collect the $11.4m it is owed.
- SPIRIT AERO -3% after BOEING has offered to acquire Co. in a deal funded mostly by stock at about $35/shr (total deal of$4.1b). Stifel analyst noted this price as “reasonable outcome” for both parties.
At A Glance
- ABBVIE said it received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson’s disease.
- AMAZON Cos. 10th Prime Day event will return on July 16th and 17th.
- APPLE has spurned attempts by META to integrate the social media company's AI chatbot Llama into iPhones, Bloomberg reported late Monday, citing sources.
- AUTODESK was issued by Starboard to increase transparency improve governance and operations, and rebuild credibility with investors.
- CHEMOURS said it can resume normal operations at its Altamira facility after water intake restrictions imposed by the Mexican government were lifted.
- EXXON MOBIL was able to load fuel onto some trucks yesterday at the bigger of its two French refineries where deliveries have been hobbled in past days due to strikes.
- FOOT LOCKER has unveiled an enhanced FLX Rewards program and announced forthcoming upgrades to its mobile app.
- GOOGLE has been working on a product for creating and conversing with customizable chatbots, which could be modeled on celebrities or entirely user-created.
- JPMORGAN has attracted more than $15b in assets from clients to its tax strategy business and this business might be the bank’s fastest growing piece of asset management over the last 18-plus months.
- OPENAI has warned developers in China it will begin blocking their access to its tools and software from July
- TARGET announces a restructuration in leadership team.
- TD SYNNEX sees 3Q adj EPS 4cst $2.55 to $3.05 (est $2.88). Rev 4cst $13.3b to $14.9b (est $14.5b). 2Q Adj EPS $2.73 (est $2.82). Co. declared in line quarterly cash div of $0.40/shr.
- TEVA has entered an agreement with the Israel Tax Authority resolving all pending litigation with respect to taxes payable for the company’s taxable years 2008-2020, according to statement. Under the terms of the agreement, the company will pay a total of $750m in installments between 2024 to 2029.
- UBER Freight and Aurora Innovation are launching Premier Autonomy, a program providing early access to over 1b of Aurora’s driverless miles to Uber Freight carriers through 2030.
Broker Moves
UPGRADES
- BALL upgraded to buy at Truist Secs; PT $76
- CAPRI upgraded to overweight at Wells Fargo; PT $ 43
- GAP upgraded to buy at TD Cowen; PT $30
DOWNGRADES
- OLD DOMINION downgraded to inline at Evercore ISI; PT $196
INITIATIONS
- DISNEY (PT $125), COMCAST (PT $44), FOX (P $42) rated new buy at Goldman on Competitive Moats
- FISERV, EURONET WORLDWIDE added to Evercore tap outperform list.
- FTAI AVIATION rated new buy at Jefferies; PT $120
Today's Key Events (UK Time)
1.30pm : Chicago Fed Indice Activité nationale
2pm : Indice FHFA du prix des maisons GM
4pm : Conf. Board Consumer Confidence
5pm : Fed's Lisa Cook Speaks on Economic Outlook, Fed Richmond Manufacturing Index
7.10pm : Fed's Bowman Gives Recorded Opening Remarks
Game Of Corporate Actions
DIV EX DATE
- Tomorrow : Zimmer Biomet ($0.24)
EARNINGS
- Today aft mkt : Fedex