- Asian Stocks Rise After US Gains, China Support: Markets Wrap
(Bloomberg) — Asian stocks were mostly higher in early trading after US equities notched a fresh record amid resilient corporate earnings and as China took steps to shore up its property market. Equities in Australia and Japan rose, and futures for Hong Kong pointed to early gains on Monday. US stock futures also edged higher after the benchmark S&P 500 Index climbed. - Gold Hits Fresh Record as Fed Rate-Cut Optimism Fuels Demand
(Bloomberg) — Gold notched a fresh all-time high, as investor demand soared across the broader metals complex amid increasing optimism the US will cut rates this year. Bullion jumped as much as 1.1% to hit $2,440.59 an ounce in early Asian hours, surpassing a previous intraday record reached in April. - Oil Steadies After Weekly Advance as Geopolitical Risks Flare
(Bloomberg) — Oil steadied after a weekly gain as geopolitical risks in Russia and the Middle East came back into focus following attacks over the weekend. Brent futures traded near $84 a barrel after posting the first weekly advance this month, while West Texas Intermediate was below $80. A Ukrainian drone strike on a small Russian refinery halted operations on Sunday. - Copper Surges to Record as Investors Bet on Looming Shortage
(Bloomberg) — Copper surged to a fresh record, extending a months-long rally driven by financial investors who have piled into the market in anticipation of supply shortages. Copper futures on the London Metal Exchange jumped as much as 1.7% to $10,848 a ton, exceeding the previous record set in March 2022. - Iran’s President Missing After Helicopter Crash in Dense Fog
(Bloomberg) — Rescue teams are searching into the night to try to locate Iranian President Ebrahim Raisi after his helicopter crashed on his way back from a visit to the country’s northwest. There was dense fog in the region, making conditions difficult for search teams, state media said, without giving a direct cause for the incident on Sunday. - Israel’s War Cabinet in Turmoil But Netanyahu Seen as Secure
(Bloomberg) — It certainly appeared crucial. Benny Gantz, ramrod straight and facing the cameras with gravity, told Prime Minister Benjamin Netanyahu to shift course on the Gaza war or he’d quit the three-man war cabinet. Israel, he said, needs “a government that will win the people’s trust.”
7.Wall Street Trades Are Speeding Up and Global Finance Is On Edge
(Bloomberg) — When US markets reopen next Tuesday after the long weekend, everything will likely seem normal. It’s only after the close and in the following days that any cracks are expected to appear. A spike in the number of failed trades, operational glitches and additional costs are among industry fears as the trading process for American securities accelerates.
8. Western Asset Betting BOJ Policy Shift to Boost Ultra-Long Bonds
(Bloomberg) — Western Asset Management Co. is betting that 30-year Japanese government bond yields won’t rise as much as shorter maturities as the Bank of Japan is less likely to cut holdings of ultra long-term debt. Demand from life insurance companies and other institutions for super-long bonds should also keep yields from rising too much.
9. Daiwa Aims for 240 Billion Yen in Pretax Profit in New Plan
(Bloomberg) — Daiwa Securities Group Inc. aims to raise its pretax profit by 38% to at least 240 billion yen ($1.5 billion) for the year ending March 2027 in its midterm plan. Japan’s second-largest brokerage will also hire more bankers for its M&A business and aims to raise revenue at that unit to 70 billion yen in fiscal 2030 from 48.9 billion yen in fiscal 2023.
10. Indonesian Steam Coal Set to Keep Lights on Amid Anglo M&A Blaze
(Bloomberg Intelligence) — Thermal coal assets may remain wallflowers as the next round of steel coal M&A turns to a potential divestment by Anglo American. Despite a tepid outlook, however, Indonesian thermal coal producers could benefit from the region’s dependence on coal-fired power. Bukit Makmur Mandiri’s credit profile may strengthen on mixed exposure to steel and thermal coal.
11. Applied Materials edged lower by 0.91% on Friday after it reported its second quarter earnings and a third quarter forecast that failed to live up to high investor expectations.
For the second quarter, net sales came in at $6.65 billion, +0.2% YoY, beating estimates of $6.52 billion. The company also reported an adjusted earnings per share of $2.09 vs $2 YoY, beating estimates of $1.99. For the third quarter, Applied Materials forecasted an adjusted earnings per share of $1.83 to $2.19, while estimates are at $1.98. It also sees its third quarter net sales to be at $6.25 billion to $7.05 billion, while estimates are at $6.59 billion.
12. DXC Technology shares dropped 16.90% following the company’s fourth quarter earnings results and a weaker than expected full-year forecast.
For the fourth quarter, revenue came in at $3.39 billion, -5.7% YoY, beating estimates of $3.37 billion. It also reported an adjusted earnings per share at 97 cents vs $1.02 YoY, beating estimates of 83 cents. in 2025, DXC Technology forecasts its revenue to be at $12.67 billion to $12.95 billion, below estimates of $13.18 billion. It also expects to see adjusted earnings per share to be at $2.50 to $3.00, below estimates of $3.49.
13. Take-Two Interactive Software shares rose 1.2% after the video-game company announced a fall 2025 release date for the highly-anticipated Grand Theft Auto VI video game. The release falls outside of the expected fiscal year 2025 window. Morgan Stanley said it removed a “major overhang” for the shares, while Wedbush found the firmer release date to be encouraging. However, HSBC downgraded their rating on the stock to hold from buy, seeing the delay of the game weighing on revenues and investor sentiment.
FOURTH QUARTER RESULTS: Net bookings $1.35 billion, -2.9% y/y, estimate $1.31 billion. Adjusted EPS 28c, estimate 7.1c. Adjusted Ebitda $110.2 million, estimate $91.1 million. Total net revenue $1.40 billion, -3.2% y/y, estimate $1.35 billion. Operating loss $2.71 billion vs. loss $702.4 million y/y. FIRST QUARTER FORECAST: Sees net bookings $1.20 billion to $1.25 billion, estimate $1.26 billion. Sees adjusted loss per share 5.0c to EPS 5.0c, estimate EPS 45c. Sees adjusted Ebitda $49 million to $70 million, estimate $129.1 million. 2025 YEAR FORECAST: Sees net bookings $5.55 billion to $5.65 billion, estimate $6.92 billion. Sees adjusted EPS $2.34 to $2.59, estimate $5.86. Sees adjusted Ebitda $746 million to $800 million, estimate $1.23 billion.
14. Coinbase’s shares rose 4.2% on Friday after BofA Global Research analyst Mark McLaughlin raised the recommendation to neutral from underperform, citing a re-engagement of retail crypto traders and the company’s operating leverage.
“The current macro environment has been a positive for cryptocurrency market cap appreciation and trading volumes,” the analyst writes. “COIN’s expense discipline and ability to benefit from operating leverage following large expense cuts in 2022 will help it maintain profitability going forward.”
15. Advanced Micro Devices shares rose 1.1% Friday on a report that Microsoft plans to offer its cloud computing customers a platform on AMD artificial intelligence chips as an alternative to systems running Nvidia chips.
Reuters reported that Microsoft plans to offer AMD processors on its Azure cloud computing service. The software giant intends to detail the arrangement at its Build conference next week. Microsoft also will preview its new Cobalt 100 custom processors at the conference, which runs May 21-23 in Seattle, Reuters said. Microsoft will offer clusters of AMDs MI300X AI chips on Azure, Reuters said. Azure customers will have a choice of using either AMD, Nvidia or Microsoft’s Maia chips to run AI workloads.
16. Stock futures tick higher after Dow closes above 40,000 for the first time
U.S. stock futures ticked higher on Sunday night, after the Dow Jones Industrial Average closed above the key 40,000 level for the first time ever on Friday. Futures tied to the 30-stock index rose by less than 0.1%. S&P 500 futures and Nasdaq 100 futures were also marginally higher. The Dow first hit the 40,000 level during Thursday’s trading session, but cinched its first close over the threshold a day later when it added 134.21 points, or 0.3%, to end Friday at 40,003.59. The S&P 500 inched 0.1% higher Friday, while the Nasdaq Composite slipped by less than 0.1%.
17. Hedge fund manager known for M&A picks reveals a new takeover target
(CNBC Pro) Oil services company Weatherford International is a ripe takeover target, according to Alexander Roepers, founder and chief investment officer at Atlantic Investment, who said the stock is set to soar.
18. Chinese Banks Keep Lending Rate Unchanged After PBOC Hold
(Bloomberg) — Chinese banks left their benchmark lending rates unchanged following the central bank’s decision last week to hold a key rate on loans it offers to lenders. The one-year loan prime rate was held at 3.45% on Monday as expected by economists surveyed by Bloomberg. The five-year rate, a reference for mortgages, was kept at 3.95%.
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