- Asian Stocks Rangebound at Open, Tech in Focus: Markets Wrap
(Bloomberg) — Asian stocks were mixed at the open after US shares extended their losing streak to the longest since January. Japanese stocks fell from the start of trade while Australian and South Korean equities rose. Equity futures in Hong Kong indicate early losses while similar contracts in China gained. - Iran Oil Sanctions Added to House Bill Tied to Ukraine Aid
(Bloomberg) — New sanctions on Iranian oil were included as part of a foreign aid package released by House Republicans Wednesday that is slated for a floor vote later this week. The bill, part of a broader package providing billions of dollars to Ukraine and Israel, includes a provision to broaden sanctions against entities that ship or process Iranian crude. - Berkshire Sells ¥263.3 Billion of Bonds With Tighter Spreads
(Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. priced ¥263.3 billion ($1.71 billion) of yen bonds at lower premiums than deals over the past two years as concern eases in the credit market that the Bank of Japan will raise interest rates again soon. It’s the veteran investor’s largest yen bond since Berkshire debuted in the market in 2019. - Micron Set to Get $6.1 Billion in Chips Act Grants Next Week
(Bloomberg) — Micron Technology Inc., the largest US maker of computer-memory chips, is poised to get $6.1 billion in grants from the Commerce Department to help pay for domestic factory projects, part of an effort to bring semiconductor production back to American soil. - Biden Calls China ‘Xenophobic,’ Ramping Up Campaign Rhetoric
(Bloomberg) — President Joe Biden called China “xenophobic” while highlighting the Asian nation’s economic woes, as he sought to make the case for US economic strength during a campaign stop in the swing state of Pennsylvania. “They’ve got a population that is more people in retirement than working. They’re not importing anything. - Inflation’s Stubborn Start to 2024 Blamed Partly on Powell Pivot
(Bloomberg) — This was supposed to be the year that US inflation rode the last mile down to 2%, letting the Federal Reserve steadily reduce interest rates from a two-decade high. Now those expectations have been dashed. Price gains have proven much stickier than anticipated a few months into 2024 amid a resilient economy and labour market. - BOE Governor Bailey Says UK Faces Less Inflation Risk Than US
(Bloomberg) — Bank of England Governor Andrew Bailey said the UK and the rest of Europe are facing less of an inflation threat than the US, opening the prospect of a rate cut for Britain before the Federal Reserve moves. Inflation in the UK will fall near its 2% target next month and has declined roughly in step with the BOE’s forecast in February. - US to Reinstate Venezuela Sanctions on Claim Maduro Broke Deal
(Bloomberg) — President Joe Biden’s administration reimposed oil sanctions on Venezuela, ending a six-month reprieve, after determining that Nicolas Maduro’s regime failed to honor an agreement to allow a fairer vote in elections scheduled for July. The Treasury Department license that permitted oil and gas production will expire, though companies will have until May 31 to wind down operations, according to a document posted Wednesday on the agency’s website. - Trump Advisers Want to Cut SALT Write-Off Limit to Below $10,000
(Bloomberg) — Economists advising Donald Trump are pushing to keep a cap on the state and local tax deduction, limiting a valuable tax break for many residents of New York, New Jersey and California. Economists Stephen Moore and Arthur Laffer, who are regularly meeting with Trump to pitch him on economic policy ideas, said they are staunchly opposed to any increase to the $10,000 write-off cap on state and local taxes, or SALT. - Ex-Balyasny London Office Head Irvine Shutters His Hedge Fund
(Bloomberg) — Stephen Irvine, who left Balyasny Asset Management to start his own hedge fund about four years ago, is returning capital to investors. His London-based Lijaro Asset Management is shutting its equity long/short hedge fund after two years of losses, according an investor document seen by Bloomberg. - Southwest Gas Unit Gets $314.8 Million From IPO, Icahn Deal
(Bloomberg) — Centuri Holdings Inc., the infrastructure services business of power company Southwest Gas Holdings Inc., raised about $314.8 million in an initial public offering and concurrent private placement priced at the top of a marketed range. Centuri sold 12.4 million shares for $21 each on Wednesday, according to a statement. - ASML shares slid 6.7% after the Dutch chip-equipment firm reported lower-than-expected bookings, especially for its flagship EUV lithography tools. Bearish analysts said the results dent optimism over the 2025 sales outlook, while bullish ones argued that the company sits on a strong order backlog, boosted by demand from memory chipmakers and Chinese clients.
FIRST-QUARTER RESULTS: Bookings EU3.61 billion, -61% q/q, estimate EU4.63 billion. Net sales EU5.29 billion, -27% q/q, estimate EU5.47 billion. Gross margin 51% vs. 51.4% q/q, estimate 48.8%. Net income EU1.22 billion, -40% q/q, estimate EU1.11 billion. Total lithography systems sold 70 units, -30% y/y, estimate 95.42. SECOND-QUARTER FORECAST: Sees net sales EU5.7 billion to EU6.2 billion, estimate EU6.46 billion. Sees gross margin 50% to 51%, estimate 50.1%. - Adidas shares advanced 8.6% after the sportswear company increased its full-year forecasts for currency-neutral revenue growth and operating profit. The company also posted better-than-expected preliminary first-quarter results.
PRELIMINARY FIRST-QUARTER RESULTS: Prelim currency-neutral revenue growth 8%, estimate 3.47%. Prelim gross margin 51.2%, estimate 47.1%. Prelim operating profit EU336 million, estimate EU115.1 million. YEAR FORECAST: Sees operating profit about EU700 million, saw about EU500 million, estimate EU813.5 million. Sees currency-neutral revenue increasing at a mid- to high-single-digit rate, saw an increase at a mid-single-digit rate - Abbott Laboratories dropped 3% on the back of weak guidance for current-quarter earnings. Abbott said to expect between $1.08 and $1.12 per share, on the low end of the $1.12 consensus estimate. That overshadowed an otherwise strong first quarter, with the company beating forecasts on both lines.
FIRST QUARTER RESULTS: Adjusted EPS 98c vs. $1.03 y/y, estimate 95c. Organic sales growth (excluding COVID-19 testing-related sales) 10.8% vs. 10% y/y, estimate 9.45%. Net sales $9.96 billion, +2.2% y/y, estimate $9.89 billion. Nutrition sales $2.07 billion, +5.1% y/y, estimate $2.09 billion. Diagnostics sales $2.21 billion, -18% y/y, estimate $2.23 billion. Established pharmaceuticals sales $1.23 billion, +3.1% y/y, estimate $1.24 billion. Medical devices sales $4.45 billion, +14% y/y, estimate $4.33 billion. Diabetes care sales $1.57 billion, +19% y/y, estimate $1.54 billion. SECOND QUARTER FORECAST: Sees adjusted EPS $1.08 to $1.12, estimate $1.12. - Prologis fell 7.2% after the warehouse REIT cut its year outlook as management sees lower average occupancy for the year.
Management reduced full-year guidance ranges for occupancy, same-store growth and earnings.
“Customers remain focused on controlling costs, which is weighing on decision making and the pace of leasing,” CEO Hamid Moghadam said. “A volatile and persistently high interest rate environment, together with mounting geopolitical concerns, contribute to this indecision”. FIRST QUARTER RESULTS: Core FFO per share $1.28, estimate $1.28. Occupancy 96.8%, estimate 96.9%. Revenue $1.96 billion, estimate $1.94 billion. - United Airlines shares soared 17.4% after the carrier’s second-quarter adjusted earnings per share forecast beat consensus estimates. Additionally, the company reported first-quarter operating revenue that came ahead of expectations.
FIRST QUARTER RESULTS: Adjusted loss per share 15c vs. loss/shr 63c y/y, estimate loss/shr 57c. Operating revenue $12.54 billion, +9.7% y/y, estimate $12.44 billion. Average yield per revenue passenger mile 19.70c vs. 19.56c y/y, estimate 19.45c. Load factor 80.1% vs. 79.9% y/y, estimate 80.7%. Average price per fuel gallon $2.88, -14% y/y, estimate $2.93. SECOND QUARTER FORECAST: Sees adjusted EPS $3.75 to $4.25, estimate $3.73. YEAR FORECAST: Sees adjusted capital expenditures $6.5 billion, saw $9 billion, estimate $7.9 billion. Still sees adjusted EPS $9 to $11, estimate $9.43. - Las Vegas Sands’ (LVS) reported better-than-expected 1Q24 results with a profit of $494 million, 66 cents a share, surpassing its profits of $147 million, 19 cents a share in 1Q23.
It also reported a net revenue of $2.96 billion, +40% YoY, beating estimates of $2.93 billion and net income of $583 million. LVS’s consolidated adjusted property EBITDA came at $1.21 billion, +53% YoY, beating estimates of $1.19 billion. LVS CEO Robert Goldstein said that the company observed strong growth in Macao and Singapore, and LVS has benefited from a recovery in tourism and travel spending in Asia. - Rio Tinto rose 2.6% after the diversified miner reported its first quarter results, saying it expects steel exports out of China to remain historically elevated and to support iron ore demand. The company saw higher year-on-year copper output and a beat in alumina and aluminium production.
FIRST QUARTER RESULTS: Pilbara iron ore shipments on 100% basis 78.0 million tons, -5.5% y/y, estimate 79.1 million. Pilbara iron ore production on 100% basis 77.9 million tons, -1.8% y/y. Mined copper production 140,100 tons, estimate 155,151. Refined copper output 62,500 tons, +6.1% y/y. Bauxite production 13.4 million tons, estimate 13.43 million. Alumina production 1.86 million tons, +0.2% y/y, estimate 1.93 million. Aluminium production 826,000 tons, +5.2% y/y, estimate 826,793. IOC iron ore pellets and concentrate 2.6 million tons.
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