- Asian Stocks Decline as Yen Rebounds After Plunge: Markets Wrap
(Bloomberg) — Shares in Asia opened lower after US tech companies fell in late trading while the yen rebounded after a Wednesday plunge that triggered fresh speculation officials may step in to support the currency. Stocks in Japan and Australia fell alongside Hong Kong equity futures, as regional shares slipped after two days of gains. - Japan Retail Sales Rise, Buoying Growth Amid Sticky Prices
(Bloomberg) — Japan’s retail sales gained in May from the previous month as consumer demand held steady in the face of persistent inflation. Spending rose 1.7% from April, according to the economy ministry on Thursday, compared with economists’ expectations of a 0.8% increase. Outlays increased 3% from a year earlier, also beating consensus. - Top Long-Bond ETF Snags Record Haul as Traders ‘Fight the Fed’
(Bloomberg) — The biggest long-duration bond ETF raked in record cash this week as a cohort of investors recalibrate bets on when the Federal Reserve will cut interest rates this year. BlackRock Inc.’s $54 billion iShares 20+ Year Treasury Bond ETF (ticker TLT) attracted a $2.7 billion inflow on Monday, its biggest one-day haul since its 2002 inception. - Yen’s Relentless Drop Showcases Fed’s Grip on Global Markets
(Bloomberg) — A grim reality is setting in for Japanese authorities as the yen plunges through milestone levels in rapid succession: The slide won’t stop until the Federal Reserve relents on its higher-for-longer policy path. And they have no control over that. - China’s Financial Elite Face $400,000 Pay Caps, Bonus Clawbacks
(Bloomberg) — The era of big pay checks for Chinese financiers is fast coming to an end as some of the industry’s biggest companies impose strict new limits to comply with President Xi Jinping’s “common prosperity” campaign. The nation’s largest financial conglomerates have asked senior staff to forgo deferred bonuses and, in some cases, return pay from previous years. - Starmer Denies Sunak Clear Win He Needed in UK Election Debate
(Bloomberg) — Keir Starmer accused Rishi Sunak of being “out of touch” with voters as the Labour leader promised to fix Britain’s stagnant economy and ailing public services, and the prime minister used the final televised debate to attack his poll-leading rival on taxes ahead of next week’s election. - Blackstone Is Said to Mull Options for $5 Billion Consultancy
(Bloomberg) — Blackstone Inc. is exploring options including a sale or an initial public offering of Legence, a company that specializes in sustainability consulting, according to people with knowledge of the matter. The asset-management giant is working with advisers to solicit interest in the company. - SM Energy Said to Near $3 Billion Deal for XCL Resources
(Bloomberg) — SM Energy is in advanced talks to acquire XCL Resources, a top oil and gas producer in Utah, according to people familiar with the matter. SM could announce a deal with XCL backers including EnCap Investments in the coming days, said the people, who asked to not be identified because the details aren’t public. - Ex-Two Sigma Researcher Becomes Big Winner of China Quant Quake
(Bloomberg) — A Chinese hedge fund founded by a Two Sigma Investments LP alumnus is emerging as one of the biggest winners from this year’s shakeup of the 1.6 trillion-yuan ($220 billion) industry. Thanks to its outperformance during what Man Group called a “Quant Quake” in February. - Eisler Imposes Bonus Clawbacks as Hedge Funds Face Talent Fight
(Bloomberg) — Eisler Capital, the $4 billion hedge fund that’s battling an industrywide talent war, is targeting traders where it hurts in a bid to keep them from leaving: their bonuses. The hedge fund, founded by former Goldman Sachs Group Inc. partner Edward Eisler, introduced a rule earlier this year that requires traders to potentially repay even the cash bonuses. - Yen Poised for Big Swings on Intervention Threat, Charts Show
(Bloomberg) — The market is jittery about a big increase in volatility in the yen as a slump in the currency to the lowest since 1986 raises the specter of Japanese intervention. Volatility spreads show that investors are demanding a premium to guard against sudden moves, bearish yen wagers are piling up, and a measure of active trader positioning is at its most negative. - Micron shares slide after revenue forecast fails to top estimates
Micron shares fell about 7% in extended trading on Wednesday as investors looked past better-than-expected results and focused instead on a revenue forecast that was in line with estimates.
Here’s how the company did versus LSEG consensus estimates for the fiscal third quarter ended May 30: Earnings per share: 62 cents adjusted vs. 51 cents expected Revenue: $6.81 billion vs. $6.67 billion expected Micron, which makes computer memory and storage, said it expects adjusted earnings per share of $1.08 on revenue of $7.6 billion in the current quarter. Analysts were expecting earnings per share of $1.05 on revenue of $7.6 billion. - Novo Nordisk fell 2% after it said it will take an impairment of about 5.7 billion Danish kroner ($820 million) after halting a late-stage study of an experimental heart drug it acquired last year.
The Danish drugmaker stopped the trial partway through, after an independent monitoring committee concluded that it hadn’t hit its main goal of changing blood pressure after 12 weeks. In a study of more than 600 patients, Clarion-CKD, had looked at the compound ocedurenone in patients with uncontrolled high blood pressure and advanced chronic kidney disease. Novo agreed last year to pay KBP Biosciences as much as $1.3 billion for ocedurenone, part of the Ozempic maker’s effort to expand from its core diabetes treatment portfolio into other serious diseases. The failed compound is part of a new class of pills called non-steroidal mineralocorticoid receptor antagonists, or nsMRAs, that includes Bayer AG’s predicted blockbuster Kerendia. - Tesla shares rose 4.8% Wednesday following a bullish initiation from Stifel. Stifel analyst Stephen Gengaro initiated coverage on Tesla with a Buy rating, setting a price target of $265.
Gengaro believes Tesla’s revamped Model 3 and upcoming refresh of the Model Y should help boost sales in the near term. The analyst also noted that he expects Tesla’s next-gen Model 2 vehicle to drive very strong demand for the EV maker. “We also believe TSLA’s AI-based Full Self-Driving (FSD) initiative has the potential to generate significant value through sales of FSD, possible licensing agreements, and as a critical driver of longer-term RoboTaxi initiatives,” Gengaro said. Last quarter, Tesla missed estimates, but shares rallied as CEO Elon Musk reiterated his vision for the future around AI, Full Self-Driving and robotaxis. Gengaro believes Tesla’s upcoming report poses near-term risk as he is cautious on delivery numbers following the company’s “lackluster” first quarter. However, he noted that downward estimate revisions appear to be close to done. - Moderna fell 11% Wednesday, after the company said that its respiratory syncytial virus (RSV) shot called mResvia, showed 50% efficacy in preventing the illness after 18 months.
GSK’s vaccine, Arexvy, was 68% effective over 23.3 months in a clinical trial; and Pfizer Inc.’s Abrysvo was 78% effective after 16.4 months. mResvia showed about 81% efficacy in a primary analysis at 3.7 months. Moderna made the disclosure in a presentation to the Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices, or ACIP, which will vote later Wednesday on which patient groups should get RSV, flu, COVID-19 and other vaccines in the fall. - Rivian Automotive shares surged 23.2% on Wednesday, after Volkswagen said it plans to establish a joint venture and invest up to $5b until 2026 in the electric-car maker.
Analysts were positive about the investment and noted that the JV is a vote of confidence for Rivian’s business. Meanwhile, Aptiv shares dropped 7.9% as Piper Sandler downgraded the stock to underweight from neutral, saying that the Volkswagen-Rivian JV strikes at the core of the auto parts company’s strategy. Piper Sandler’s Alexander Potter says “Aptiv is still relevant, but the bull case seems unrealistic.” - General Mills Inc. shares fell 4.6% on Wednesday following a disappointing sales outlook as shoppers continue to pull back amid climbing supermarket prices.
The maker of Cheerios and Old El Paso taco shells sees organic sales ranging between flat and up 1%, below the average analyst estimate of 1.2%, for the current fiscal year. Volume is seen gradually improving in the period, but growth in dollar terms is expected to be below long-term projections.
Consumers have cut back on spending in recent months and are buying less packaged food. Some are replacing branded goods with cheaper, private label versions, while others are simply making do with less particularly for packaged foods. - FedEx shares surged 15.53%, after it reported its fourth quarter earnings and its forecast for the year ahead.
For the fourth quarter, adjusted earnings per share came in at $5.41, beating estimates of $5.34. Revenue was at $22.1 billion, +0.9% YoY, in line with estimates. For the year ahead, FedEx forecasted an adjusted earnings per share between $20.00 and $22.00, while estimates were at $20.85. FedEx also said that it would buy back $2.5 billion of its stock over the next year. - Nvidia CEO Jensen Huang addresses rising competition at shareholder meeting after historic stock surge
Nvidia CEO Jensen Huang answered questions at the company’s annual shareholder meeting after a more than 200% surge in the stock over the past year. The company passed a $3 trillion valuation and was briefly the most valuable public company. Without naming competitors, Huang laid out the company’s overall strategy to maintain its position. - Biden Cabinet officials roll out new plans to cut costs of living ahead of Trump debate
Biden Cabinet members have been on a 10-day tour around the U.S. to promote the president’s economic agenda with dozens of events including in key battleground states. The White House’s economic road show began last week, and runs until Thursday, when Biden will face Donald Trump in the first presidential debate. - Amazon reaches $2 trillion market cap for the first time
Amazon crossed $2 trillion in market cap during intraday trading on Wednesday. The company joins other tech heavyweights such as Nvidia, Apple, Alphabet and Microsoft, all of which have crossed a $2 trillion market capitalization. Shares of Amazon have surged 27.5% so far this year. - S&P 500 futures fall slightly after the broader index rises for a second day
U.S. S&P 500 futures fell Thursday morning after the S&P 500 rose for a second day. S&P 500 futures and Nasdaq 100 futures dipped 0.22% and 0.28%, respectively. Dow Jones Industrial Average futures fell 72 points, or 0.18%. - SpaceX is building a NASA craft to intentionally destroy the International Space Station after retiring NASA will have a spacecraft from Elon Musk’s SpaceX guide the International Space Station’s destruction after its retirement in 2030.
The agency awarded an $843 million contract to SpaceX to build the so-called “U.S. Deorbit Vehicle.” The SpaceX-built vehicle will effectively destroy the ISS by pushing the station into re-entry from orbit. - Gold prices lingers near two-week low as traders eye U.S. inflation data
Gold prices steadied on Thursday after falling to a two-week low in the previous session, while investors awaited U.S. inflation data for insights into how soon the Federal Reserve will cut interest rates. Spot gold unchanged at $2,299.55 per ounce, as of 0255 GMT. Bullion fell to its lowest since June 10 on Wednesday.
U.S. gold futures fell 0.1% to $2,310.20.
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