- Asian Shares Decline After US Stock, Bond Selloff: Markets Wrap
(Bloomberg) — Equities in Asia opened Friday lower after declines on Wall Street as new data weakened the case for imminent Federal Reserve interest rate cuts. Shares in Australia, South Korea and equity futures for Hong Kong all fell, while Japanese shares nudged higher. The S&P 500 and Nasdaq 100 each slipped for a second session. - Platinum Equity’s Ingram Micro Seeks $8 Billion Valuation In IPO
(Bloomberg) — Platinum Equity-backed technology company Ingram Micro Inc. is considering seeking a valuation of about $8 billion in its upcoming US initial public offering, according to people familiar with the matter. The Irvine, California-based company is working with Goldman Sachs Group Inc. and Morgan Stanley on an IPO that could launch as soon as April, the people asking not to be identified because the information isn’t public. - China Holds Key Rate Steady in Cautious Approach to Stimulus
(Bloomberg) — China’s central bank left its key policy rate unchanged and drained cash from the banking system, extending its approach of drip-feed stimulus for the country’s economy amid pressure on the local currency. The People’s Bank of China kept the rate on its one-year policy loans steady at 2.5% on Friday, as expected by most economists surveyed by Bloomberg. - Big Take: Emboldened Putin Digs In for Russian Win in Ukraine
(Bloomberg) — Just before Russia’s presidential election six years ago, Vladimir Putin delighted lawmakers by showing off video simulations of the country’s newest strategic weapons. One was even aimed at a map of Florida. This time around, the muscle flexing has gone further. Last month, he took a test flight on Russia’s latest nuclear. - Fed Gets More Reasons to Delay Interest-Rate Cuts in Latest Data
(Bloomberg) — Fresh data on inflation and unemployment filings gave Federal Reserve officials more reasons to hold off on cutting interest rates, even as retail sales suggested a slowdown in consumer spending. Prices paid to US producers topped forecasts in February. - Trump Loses Bid to Get Judge to Toss Top-Secret Records Charges
(Bloomberg) — Former President Donald Trump lost his bid to have charges that he mishandled classified documents dropped on grounds that they’re too vague. US District Judge Aileen Cannon issued the ruling on Thursday after holding a hearing that Trump attended in person to consider motions by the former president to dismiss all charges against him. - US Steel Plunges for Second Day as Biden Comes Out Against Deal
(Bloomberg) — United States Steel Corp. plunged for a second day after President Joe Biden said the company should retain American ownership, coming out against a takeover by Japan’s Nippon Steel Corp. despite the risk of upsetting a key ally. The stock dropped as much as 11%, and has lost about a fifth of its value in the past two days. - BNP Paribas Is Said to Weigh Purchase of Fosun’s Ageas Stake
(Bloomberg) — BNP Paribas SA is considering a potential acquisition of Fosun International Ltd.’s stake in Belgian insurer Ageas, according to people with knowledge of the matter. The French lender has been holding discussions on a possible purchase of Fosun’s holding in Ageas, said the people, who asked not to be identified because the information is private. - Hedge Funds, PE Firms Aim to Temper SEC’s WhatsApp Probe
(Bloomberg) — Top hedge funds and private equity firms including Citadel, KKR & Co. and Blackstone Inc. are discussing ways to blunt any fallout from the Securities and Exchange Commission’s crackdown on the financial industry’s use of disappearing messaging apps. With the regulator stepping up efforts to police Wall Street’s electronic communications. - Adobe Inc.’s stock dipped 11% in extended trading Thursday after the company posted robust quarterly results that highlighted its AI push ahead of its annual developer’s conference. The company also announced a $25 billion share-buyback program.
“We’ve done an incredible job harnessing the power of generative AI to deliver groundbreaking innovation across our product portfolio,” Adobe Chief Executive Shantanu Narayen said in a statement announcing the results. Adobe Summit, the company’s annual confab that has sharpened its focus on generative AI, is scheduled for late March in Las Vegas. Adobe (ADBE) reported fiscal first-quarter net income of $620 million, or $1.36 a share, compared with net income of $1.25 billion, or $2.71 a share, in the same quarter a year ago. Adjusted earnings were $4.48 a share. - Shares of UiPath Inc. were up as much as 13.7% in Wednesday’s aftermarket action following the company’s upbeat financial results, but those gains largely evaporated as the company’s earnings call went on.
The stock ended the extended session up just 1.4%, as management called out that the second half of the new fiscal year is likely to be stronger than the first, consistent with past seasonal patterns.
The automation-software company posted fiscal fourth-quarter net income of $33.9 million, or 6 cents a share, whereas it notched a loss of $27.7 million, or 5 cents a share, in the year-earlier period. This marked the company’s first quarter of GAAP profitability. On an adjusted basis, UiPath (PATH) logged earnings per share of 22 cents, while analysts tracked by FactSet were modelling 16 cents. UiPath’s revenue rose to $405 million from $309 million, while analysts were looking for $384 million. Annual recurring revenue was $1.464 billion, up 22%. Don’t miss: How software investors should view the AI ‘tsunami’ as chip stocks outperform. - Macy’s Inc. is nominating a new director to its board to add real estate expertise as the company faces a takeover approach from a group led by Arkhouse Management Co.
The retailer put forward Douglas Sesler, founder and president of the real estate investment and development firm Fair Street Partner, to stand for an election as a director, it said in a statement Thursday. Sesler was head of real estate for Macy’s from 2016 to 2021. - Sentinel One shares tumble as much as 16% on Thursday, its biggest drop since June, after the security software company gave a full-year revenue forecast that was weaker than expected at the midpoint of the range.
ANALYST COMMENTARY: Citi analyst Fatima Boolani (neutral, PT $25): Sentinel One’s revenue outlook reinforces concerns that the company is in a “challenging state of insufficient topline momentum”. “Struggle to see how shares can circumnavigate the near-term growth/margin tug-of-war dynamics to outperform” Barclays analyst Saket Kalia (equal weight, PT $27): The stock is pressured as “buyside expectations were higher given the easier compare and strong peer results” Jefferies analyst Joseph Gallo (hold, PT $28): While Sentinel One reported steady 4Q revenue, M&A weighs on its margin forecast. - United Airlines Holdings is close to securing around three dozen of Airbus A321neo jets from aircraft lessors to replace Boeing Co 737 Max 10 orders that are at least five years behind schedule.
The company is in final negotiations for the planes that are due to be delivered between 2025 and 2027. Regulators have been rigorously assessing Boeing’s quality control and the certification for the Max 10 has been push back indefinitely until Boeing addresses issues in its factory. Chief Executive Offer Scott Kirby highlighted that while the company is in the market for A321s, the company would not overpay for an aircraft just to hit growth targets but instead will focus on the cost economics. - Lennar Corp. is weighing down homebuilding stocks on Thursday after the company gave a forecast for second quarter gross margin that fell short of consensus expectations. Separately, a measure of prices paid to US producers rose in February by the most in six months, reigniting inflation fears.
Lennar tumbles as much as 5.1%, the most intraday in a month, after the homebuilder reported revenue for the first quarter that missed the average analyst estimate. A gauge of homebuilding stocks is down 3.3%. Losses are led by LEN, followed by M/I Homes (-4.9%), KB Home (-3.8%) and Taylor Morrison Home (-3.7%). Meanwhile, the U.S. 10-year Treasury yield rose to 4.3% after hot inflation data reinforced speculation the Federal Reserve will be in no rush to cut rate.
Menu