Early Look

Tuesday, May 28, 2024

U.S. stock futures look set for gains as investors return from the three-day holiday weekend, helped by shares of Apple (AAPL) amid reports of improved China iPhone sales. Apple Inc. (AAPL) smartphone shipments in China were 52% higher in April than a year ago to 3.495 million units from 2.301 million a year earlier, extending a rebound seen in the previous month, according to data. Stocks ended last week mixed as the Dow Jones Industrial Average declined -2.3%, the S&P 500 was flat, and the Nasdaq was up 1.4% extending weekly gain to 5-weeks. The U.S. dollar was down 0.3% at 104.72 against a basket of currencies on Friday, after advancing in five of the last six trading sessions. For the week the index was up 0.2%. U.S. stocks posted solid gains on Friday led by shares of NVDA which jumped last week after strong earnings and outlook for its AI chips and giving a boost to the wider sector. Mixed economic reports continue to keep the broader market in check on worries that the Fed will keep rates higher for longer. Today we got some more data points and Fed speakers. In Asian markets, The Nikkei Index dipped -44 points to 38,855, the Shanghai Index fell -14 points to 3,109, and the Hang Seng Index slipped -6 points to 18,821. In Europe, the German DAX is down -7 points to 18,766, while the FTSE 100 is down -21 points to 8,295.

• The Dow Jones Industrial Average edged higher 4.33 points, or 0.01%, to 39,069.59.
• The Nasdaq Composite jumped 184.76 points, or 1.10%, to 16,920.79.
• The Russell 2000 Index advanced 21.26 points, or 1.04% to 2,069.67.

• 7:45 AM ET                  ICSC Weekly Retail Sales
• 9:00 AM ET                  Monthly Home Prices M/M for March
• 9:00 AM ET                  CaseShiller 20-city index for March
• 9:55 AM ET                  Fed’s Kashkari Gives Panel Remarks
• 10:00 AM ET                Consumer Confidence for May
• 10:30 AM ET                Dallas Fed manufacturing for May
• 1:00 PM ET                   US Treasury to sell $69B of 2-year notes.
• 1:00 PM ET                   US Treasury to sell $70B in 5-year notes.

• Earnings After the Close: APPS BOX CAVA FFIE HEI OOMA

• Goldman Sachs Global Semiconductor Conference, 5/28-5/30, in New York
• Keybanc Industrials and Basic Materials Conference 5/28-5/30, in Boston, MA

• GameStop (GME) announced late Friday it completed the ATM offer first announced on 5/17, selling ~45M shares over the last several days for a total of $933.4MM. Those 45M incremental shares increased the total shares outstanding by about 15%.
• Toyota (TM) has unveiled plans for a new generation of internal combustion engines, betting on a continued need for older technologies even as car buyers shift towards Tesla (TSLA) and other electric-vehicle makers, Financial Times reports.

• BP (BP) and U.S. shale producer EOG Resources (EOG) are in discussions to jointly develop a natural gas field off the coast of Trinidad and Tobago, the British company said. The field holds just under 1 trillion cubic feet of natural gas but will eventually be tied back to another BP discovery, bringing the area to be developed closer to 1.5 tcf of gas.
• DuPont (DD) upgraded to Buy after spin announcement at Citigroup.
• Repsol (REPYY) plans to sell a stake in its renewable energy operations in the U.S.–valued at around 600 million euros ($651.15M), with an initial capacity of 800 megawatts of photovoltaic power, Spanish newspaper Expansion reports.

• PayPal (PYPL) hopes to boost its growth by starting an ad network juiced with something it already owns, data on its millions of users, the WSJ reported. PYPL plans to build an ad sales business around the reams of data it generates from tracking the purchases as well as the broader spending behaviors of millions of consumers who use its services.

• Insmed (INSM) shares surge 130% pre- mkt after announces positive topline results from landmark aspen study of brensocatib in patients with bronchiectasis; said phase 3 study achieves primary endpoint for both dosage strengths of brensocatib; said brensocatib well-tolerated at both dosage strengths.
• Merck (MRK) announces phase 3 keynote-522 trial met its overall survival (OS) endpoint in patients with high-risk early-stage triple negative breast cancer; Merck’s Keytruda consistent with past safety profile.
• Healthcare payments company Waystar said it was aiming to raise up to $1.04 billion in its initial public offering in the United States.