Indicators
Wake Up Call
- Hello ! Beyond Europe, US equity futures rose by about 0.2%. and Treasury yields ticked higher. European stocks snapped a four-day losing streak and the euro rose as French election results suggested there’s a smaller probability of extreme policies coming from the far-right.
- ON TAP - Final S&P Global manufacturing PMI data for June will be released. The US will release ISM manufacturing data for June, where the headline is seen improving to 49.1 from 48.7. Also, traders will note that the US Supreme Court's decision on Trump immunity is due today at 3pm UK
- EQUITY MARKET CLOSURE
* CANADA closed Today (Canada day)
* Half Session in the US on Wednesday (closing @ 7pm UK - Independence day observed)
* US closed on Thursday (Independence day)
Wall Street Movers
- APPLE +0.3% WSJ writes that the Apple Watch is becoming a preferred medical device for doctors, who recommend it to patients for managing conditions. Researchers are studying its applications for heart disease, post-surgery recovery, and other conditions. Despite not being specifically approved by the FDA for these uses, it is increasingly integrated into patient care and diagnostics. Elsewhere, JPM said May data continued to show an improving trajectory for iPhone shipments in China, supported by the recovery in the broader China smartphone market. China Academy of Information and Communications Technology data for May suggetss iPhone shipments +40% Y/Y, and +44% M/M (vs normal seasonality of +55% M/M) ; JPM sees May monthly data putting the YTD decline for iPhone units in China -8% Y/Y (vs prev. -17% Y/Y in April).
- BANKS The biggest US banks took turns announcing higher payouts to investors Friday after easily passing the Federal Reserve’s annual stress test earlier this week. New quarterly div : BAC new div 26c vs 24c. CITI 56c vs 53c. GS $3.00 vs $2.75. JPM $1.25 vs $1.15. MS 92.5c vs 85c. WFC 40c vs 35c. In addition, JPMorgan and Morgan Stanley approved stock repurchase programs of as much as $30bn and $20bn, respectively.
- BLACKROCK will acquire private capital database provider Preqin for $3.2bn in cash.
- BOEING -1% agreed to buy back SPIRIT AEROSYSTEMS (+4.2%) for $37.25 a share in an all-stock deal that values the supplier at $4.7 billion, unwinding a two-decade separation as the embattled US planemaker tries to fix is manufacturing defects. Else, the US Justice Department will charge the company with criminal fraud, leaving the firm to choose between pleading guilty or taking the risk of going to trial, acc. to sources.
- CHEWY +11% after the influential retail trader known by his online moniker "Roaring Kitty" disclosed a 6.6% stake in the online pet-products retailer.
- META +0.5% has been slapped with a warning over its subscription model for ad-free services on Instagram and Facebook, risking potentially heavy fines in the European Union’s latest attack on Big Tech under tough new rules.
- NIO +4% after the Chinese EV maker reported deliveries for June of 21,209 vs. 20,544 m/m
- OIL STOCKS Positive mention in Barron's - Said oil stocks were the antidote to NVIDIA and Big Tech, as the sector makes up a third of the market and trades near its highest valuations in more than 20 years, suggesting investors should 'spread' their bets, and oil stocks may be the perfect complement.
- WALT DISNEY "Inside Out 2" crossed the USD 1bln mark in global ticket sales, the first to top that mark since Warner's "Barbie."
At A Glance
- FORD plans to launch a USD 30k all-electric vehicle that will be profitable in about two and a half years, the CEO said at the Aspen Ideas Festival.
- LOCKHEED MARTIN wins $5.28bn contract to deliver missiles for US Army
- MASTERCARD / VISA A federal Judge indicated that Visa and Mastercard could likely endure a significantly larger settlement with merchants over swipe fees than the $30b accord she recently rejected, Reuters reports. Else, both Co. lowered their bank card transaction fees in China on June 15, the central bank-run Financial News reports.
- SMALL CAPS Positive mention for some small cap stocks in Barron's; the newspaper cites YELP, POWELL, SIMPLY GOOD FOODS, EURONET, GMS, Commvault as some of the high-growth, small-market-cap stocks as "promising".
Broker Moves
UPGRADES
- BIRKENSTOCK upgraded to Buy at UBS on stronger sales potential
- INTERCONTINENTAL EXCHANGE upgraded to Buy at Goldman
- TESLA is added to Wells Fargo’s Tactical Ideas List for 3Q, in note saying the carmaker’s delivery growth looks set to decline. Stays underweight.
DOWNGRADES
- ZIMMER BIOMET Cut to Neutral at Piper Sandler; PT $115
INITIATIONS
- AMERICAN TOWER Rated New Buy at Goldman; PT $230
- AT&T Rated New Buy at Goldman; PT $22
- VERIZON Rated New Buy at Goldman
- T-MOBILE Rated New Buy at Goldman; PT $200
Today's Key Events (UK Time)
2.45pm : US S&P Global US Manufacturing PMI
3.00pm : Construction Spending MoM
3.00pm : ISM Manufacturing ; ISM New Orders
Game Of Corporate Actions
DIV EX DATE
- Today : Air Products & Chemicals ($1.77), Raymond James ($0.45), Ventas ($0.45), Cardinal Health ($0.5056), State Street ($0.69), Equity Residential ($0.675), Realty Income 9$0.263), Quanta Services 9$0.09).
- Tomorrow : Republic Services ($0.535), Agilent Techologies ($0.236).