Early Look

Monday, June 3, 2024

U.S. futures are looking mixed, as Nasdaq futures point to a higher open following a rebound in semiconductors, while the S&P looks flat and the Dow futures down slightly. U.S. stocks are coming off weekly losses where the S&P 500 fell 0.48%, the Nasdaq declined 1.1%, the Dow fell 0.93% and the Russell 2000 small cap index fell 0.37%. For the month of May, the S&P 500 gained 4.84%, the Nasdaq climbed 6.88%, the Dow climbed 2.36% and the Russell 2000 small cap index climbed 4.46%. The Top sectors in May included: Utilities (XLU) +8.96%, Technology (XLK) +7.04%, Communications (XLC) +6.94%, REITs (XLRE) +5.14% and Materials (XLB) +3.27% as only Energy (XLE) fell -0.34% on month. Markets get a heavy dose of jobs related data (Nonfarm, ADP, JOLTs, and weekly jobless claims) after in-line PCE inflation data last week (not rising, but also still not falling). A few top headlines coming out of the biggest cancer conference of the year (ASCO), along with monthly Chona delivery data, few M&A headlines, but overall light week of earnings results and no Fed speakers (blackout period) ahead of next week’s FOMC meeting. There is also renewed activity in “meme” stocks following a Reddit post this weekend from “Roaring Kitty” showing a $GME position, which has shares rising over 70% this morning (and lifting other high short interest related stocks). In Asian markets, The Nikkei Index surged 435 points to 38,923, the Shanghai Index fell -8 points to 3,078, and the Hang Seng Index jumped 323 points to 18,403. In Europe, the German DAX is jumping over 140 points this morning to 18,641, while the FTSE 100 rises 15 points to 8,291. This weekend OPEC+ agreed to extend most of its deep oil output cuts into 2025.

• The Dow Jones Industrial Average rose 574.84 points, or 1.51%, to 38,686.32.
• The Nasdaq Composite dipped -2.06 points, or 0.01%, to 16,735.02.
• The Russell 2000 Index advanced 13.53 points, or 0.66% to 2,070.13.

• 10:00 AM ET                Construction Spending M/M for April
• 10:00 AM ET                ISM Manufacturing PMI for May

• Earnings After the Close: BARK GTLB HQY

• Computex 2024, 6/3, CEOs of AMD & INTC to delivery keynote addresses

• OneWater Marine Inc. (ONEW) is in talks to acquire its larger rival MarineMax Inc. (HZO), Bloomberg reported citing people with knowledge of the matter said Sunday. OneWater has made an all-cash, $40-a-share offer for MarineMax following months of private discussions, the people said https://tinyurl.com/mr73put5
• Best Buy (BBY) was upgraded to buy from sell at Citi, which said the catalyst path looks positive for the stock from this point.
• Li Auto (LI) May Total Vehicle Sales rose 23.8% y/y to 35,020 Units: Jan-May Total Vehicle Sales 774,571 Units.
• NIO (NIO) said May Total Vehicle sales 20,544 Units; up 233.8% on Year and for Jan-May Total Vehicle Sales 66,217 Units; up 51.0% on Year.
• Toyota Motors (TM) temporarily halted shipments and sales of three car models made in Japan; ** Japan’s transport ministry found irregularities in applications to certify the models.
• Xpeng (XPEV) delivered 10,146 vehicles in May, up 35% on year as May deliveries rose 8% in month; January-May deliveries 41,360 vehicles, up 26% on year; 9 deliveries 1,625 units in May; cumulative deliveries 11,456 units.

• The International Air Transport Association (IATA) said it expected the worldwide industry to generate $30.5 billion of profit this year, higher than an upwardly revised $27.4 billion in 2023 as carriers keep a lid on underlying labor costs despite recent strikes. That comes just four years after the industry collapsed to a $140 billion loss in 2020 because of the pandemic and is above the $25.7 billion forecast for 2024 issued in December.
• WD-40 Co. (WDFC) mentioned positively in Barron’s noting the shares took a hit in April after reporting sales that were slightly lower than expectations in Q2. While shares trade at a pricey 40 times 12-month forward earnings, they may be worth buying because of the company’s consistent earnings and sales growth, Barron’s.

• Gilead Sciences (GILD) and Arcus Biosciences (RCUS) announced new data from Cohort B of ARC-9, a Phase 1b/2 study evaluating the safety and efficacy of etrumadenant, a dual A2a/b adenosine receptor antagonist, plus anti-PD-1 monoclonal antibody zimberelimab, FOLFOX chemotherapy and bevacizumab in third-line metastatic colorectal cancer.
• Glaxo (GSK), Sanofi (SNY), shares weak among other drugmakers must face trials in state court in Delaware after a judge found evidence backing up claims the companies’ former Zantac heartburn treatment causes cancer is legitimate and can be heard by juries.

• Autodesk (ADSK) said that no financial statements will be restated or adjusted following the results of an investigation by the board’s audit committee; also raised its adjusted earnings per share forecast for the full year.
• Live Nation Entertainment Inc. (LYV) said its Ticketmaster database may have been hacked by someone who’s now offering to sell customer data on the dark web. It first detected unauthorized activity on May 20 and launched an investigation.
• Paramount Global (PARA) shares were up 7% in premarket trading following a sweetened offer by David Ellison’s Skydance Media to buy family company National Amusements and merge with Paramount. Ellison made a sweetened offer last week to buy up to a certain number of nonvoting Paramount shares at roughly $15 each while also giving shareholders the option to roll into the new deal, The WSJ reported. https://tinyurl.com/3uhwss4b
• Spotify (SPOT) to increase premium pricing in the US to $11.99 per month – Techcrunch reports.