- Asian Stocks Rise as Traders Await US Payrolls: Markets Wrap
(Bloomberg) — Asian stocks rose at the open on Friday as Wall Street wavered ahead of a key US jobs reading that’s likely to guide the Federal Reserve’s policy outlook. Australian and South Korean stocks rose and equities in Japan were steady, while futures in Hong Kong pointed higher. The S&P 500 closed little changed, having stalled near all-time highs. - Japan Likely Sold Treasuries to Fund Record Yen Intervention
(Bloomberg) — Japan’s holdings of foreign securities dropped sharply in May, indicating that the government likely financed most of its recent record currency market intervention by selling securities including Treasuries. The country’s holdings of foreign securities dropped by $50.4 billion in May to $928 billion, the finance ministry reported Friday. - China’s $2 Trillion Rally Lures Global Holdouts Despite Risks
(Bloomberg) — Global fund managers who’d been holding back on China are wading back in. The MSCI China Index has climbed 24% from a January low, when worries over the Chinese economy, an entrenched property crisis, seemingly futile stimulus efforts and simmering tensions between Beijing and Washington had prompted many investors to pull back, or entirely cut. - Wall Street Rally Takes a Breather Before US Jobs: Markets Wrap
(Bloomberg) — Stocks and bonds lost steam on the eve of a key US jobs reading that will help shape the outlook for the Federal Reserve’s next steps. Equities stalled near all-time highs as traders refrained from big bets ahead of the data. A 22V Research survey shows there’s no consensus about the market reaction — with 36% of investors betting on a “risk-off” move. - Oil Set for Weekly Loss After OPEC+ Supply Plan Rattles Market
(Bloomberg) — An unexpected plan by OPEC+ to return some supply this year has put oil on track for a weekly decline, prompting some members of the alliance to reassure the market they are committed to stability. OPEC+ ministers including from Saudi Arabia said the group can still react to any changes in the market and adjust supply. - GameStop Shares Soar as Keith Gill Schedules YouTube Return
(Bloomberg) — Keith Gill, whose Roaring Kitty online moniker has sent GameStop Corp. shares surging in the past week, sparked another rally in the video-game retailer after a YouTube post said he’d return to the platform Friday for the first time in three years. GameStop shares rose 47% to $46.55, triggering multiple volatility halts. - Tesla Investor Sues to Challenge Proxy on Texas Move, Musk Pay
(Bloomberg) — A Tesla Inc. shareholder sued to challenge an upcoming proxy vote about whether the electric-car maker should move its corporate home to Texas and re-approve a $56 billion pay package for co-founder Elon Musk that was thrown out by a Delaware judge. - Macron Pledges to Send Fighter Jets and Train Troops for Ukraine
(Bloomberg) — President Emmanuel Macron said France will send fighter jets to Ukraine and train thousands of soldiers to help the country repel Russia’s invasion. He added that he is working on a coalition to send instructors to the war-battered country in response to a request for support from Kyiv. “ - ECB Officials All But Rule Out July Cut With September Unclear
(Bloomberg) — European Central Bank officials are all but excluding a second interest-rate cut in July, and some also question if such a move would be wise at the following meeting in September, according to people familiar with the matter. The discussion on Thursday barely considered the possibility of a reduction next month. - San Francisco Fetes Trump on Post-Conviction Fundraising Tour
(Bloomberg) — Wealthy donors are converging at the stately home of technology investor David Sacks Thursday for a sold-out fundraiser for former President Donald Trump. Sacks is co-hosting the event at Broad cliff, his house in the Pacific Heights neighbourhood of San Francisco, along with investor Chamath Palihapitiya. - Jumbo Hybrid Yen Bond Deals Price Amid Jitters Into BOJ Meeting
(Bloomberg) — Two Japanese companies sold jumbo hybrid bonds at wide spreads as rates volatility kept investors on edge. Takeda Pharmaceutical Co. sold ¥460 billion ($3 billion) of subordinated bonds and Nippon Steel Corp. priced ¥167.5 billion of debt, according to underwriters. - JPMorgan, Citi Cling to July Rate-Cut Bets Ahead of Jobs Data
(Bloomberg) — Wall Street’s last holdouts for a US interest-rate cut in July are preparing for their clearest sign yet on whether they — or traders in the market — are correct about the likely path of Federal Reserve monetary policy. JPMorgan Chase & Co. and Citigroup Inc. are among the few banks still predicting that the Fed will ease next month. - Julius Baer Shares Drop Amid Heightened EFG Deal Speculation
(Bloomberg) — EFG International AG shares spiked after a report on market speculation that Julius Baer Group Ltd. may soon announce a takeover of its rival. The private bank’s shares rose as much as 10% and were halted earlier on Thursday due to excessive volatility, after website Inside Parade Platz reported rumours that an announcement could come on Friday. - Deutsche Bank Plans to Sell SRT Linked to $2 Billion in Loans
(Bloomberg) — Deutsche Bank AG plans to sell a credit-linked note known as a significant risk transfer that’s tied to a pool of about $2 billion in leveraged loans, according to people familiar with the matter. The size of the transaction may be close to $400 million, according to the people, who asked not to be identified because the deal is private. - Waystar Said to Price IPO at Midpoint to Raise $968 Million
(Bloomberg) — Health-care payments software maker Waystar Holding Corp. priced its initial public offering at the midpoint of a marketed range to raise $968 million in one of 2024’s biggest listings. Waystar, whose backers include EQT AB and Canada Pension Plan Investment Board, sold 45 million shares for $21.50 each after offering them for $20 to $23. - U.S. economic engagement in Indo-Pacific ‘isn’t about China,’ Commerce Secretary Raimondo
President Joe Biden launched the Indo-Pacific Economic Framework for Prosperity, involving14 countries, about two years ago.
Raimondo said the Indo-Pacific is more secure and stable when the U.S. has a strong “active” presence in the region. She added the framework is more about solidifying ties in the region and not directed at China. “This isn’t about China. This is about the United States showing up in the region,” she said. - WBD: Warner Bros.’ TNT in talks for possible fourth NBA rights package, FOS reports
is in talks to secure a possible fourth NBA media-rights package, Front Office Sports’ Michael McCarthy reports, citing sources with knowledge of the negotiations.
Recent speculation and reporting had the TNT parent losing out on the rights in favour of three partners, namely Disney’s (DIS) ESPN, Comcast’s (CMCSA) NBC, and Amazon Prime Video (AMZN), the author notes. - Market Chatter: Hertz Considering Sale of At Least $700 Million of Debt Plus Convertibles
Hertz Global Holdings (HTZ) is mulling a sale of at least $700 million in secured debt as a convertible note offering, Bloomberg reported Thursday, citing people with knowledge of the matter. (Market Chatter news is derived from conversations with market professionals globally. - Meituan reported its first quarter earnings results on Thursday, which beat the average analyst estimates.
In the first quarter, it reported a revenue of RMB73.28 billion, +25% YoY, beating estimates of RMB 69 billion. Net income came in at RMB5.37 billion, +60% YoY, beating estimates of RMB 3.86 billion. The company attributes its upbeat results to its solid growth in its food-delivery business, despite increasingly stiff competition. - Lululemon shares rose 4.79%, after it reported its first quarter earnings and its forecast for the year.
In the first quarter, earnings per share came in at $2.54 vs $2.28 YoY, beating estimates of $2.39. Net revenue came in at $2.21 billion, +10% YoY, beating estimates of $2.2 billion. For the year ahead, Lululemon expects earnings per share to range between $14.27 to $14.47, while estimates are at $14.17. Net revenue is at $10.7 billion to $10.8 billion, while estimates are at $10.76 billion. - SAP shares rose 3.6% after the software firm maintained its near-term outlook while guiding for an acceleration in revenue growth beyond 2025.
The guidance and feedback at its annual Sapphire conference in Orlando signals persistent demand for SAP’s enterprise resource planning software, offering reassurance against recent warnings from peers including Salesforce. Bernstein, Mark Moerdler (outperform): SAP’s maintaining FY24 and FY25 targets are positive in light of recent concerns around macro. A discussion with SAP partners on the ground finds no significant change or worsening in demand despite recent warnings from Salesforce and Workday; Still, AI is yet to be considered as a key catalyst for upgrade. “We believe SAP delivers one of the best risk-reward profiles in software today.” JPMorgan, Toby Ogg (overweight): SAP’s management team delivered a solid message against warnings elsewhere in the software industry, which should come as a relief. - Salesforce moved 2.6% higher following news that Salesforce board member and co-CEO of activist investor Value Act, Mason Morfit, has increased his stake in the software company to just under $1 billion.
The move was made earlier this week and comes just days after the company reported its first revenue miss since 2006. Morfit disclosed a purchase of 428,000 shares at an average price of $233.17, valued at about $100 million that brings the investor’s stake to about 3.9 million shares, worth about $922 million. - DocuSign shares fell 6.2% in afterhours trading after the e-signature company forecast billings for the second quarter that fell short of the average analyst estimate.
FIRST QUARTER RESULTS: Adjusted EPS 82c vs. 72c y/y, estimate 79c. Revenue $709.6 million, +7.3% y/y, estimate $706.3 million. Subscription revenue $691.5 million, estimate $688.9 million. Billings $709.5 million, +5.1% y/y, estimate $690.1 million. Adjusted gross margin 82% vs. 83% y/y, estimate 81.7%. Free cash flow $232.1 million, estimate $210.4 million. SECOND QUARTER FORECAST: Sees revenue $725 million to $729 million, estimate $724.9 million. Sees subscription revenue $705 million to $709 million, estimate $707.7 million. Sees billings $715 million to $725 million, estimate $727.8 million. - Chinese electric-vehicle maker Nio’s ADRs fell 6.8% in US trading after the company reported first-quarter revenue and EPS below the average analyst estimate.
The manufacturer’s adjusted net loss widened to 4.9 billion yuan in the period, the EV maker said. Nio has had a slow start to the year and in March cut its vehicle delivery guidance. Nio is facing challenges including fiercer competition in China, where a price war is raging. Expansion in more profitable overseas markets is facing headwinds too, with tariff hikes in the US and the European Union on the horizon or already underway. - Old Dominion shares fell 3.3% after the company said revenue/day for the month of May increased 5.6% y/y, a deceleration from April. Last month, the company had said that revenue/day for April rose 6.3%.
Evercore ISI analyst Jonathan Chappell says the most important data point, for both Old Dominion and the less-than-truckload sector at large, was revenue per hundredweight ex-fuel, which increased at the same exact 4.7% pace in May as in April. With weight per shipment relatively flat across the two months, the read-through is that pricing is remaining steady even amid a softer macro backdrop and the reinstatement of some auctioned Yellow Corp. - Stock futures are little changed as investors brace for May jobs report
U.S. stock futures opened little changed on Thursday as investors geared up for Friday morning’s nonfarm payrolls report. Futures tied to the Dow Jones Industrial Average inched higher by 20 points, or 0.05%. Nasdaq 100 futures ticked up by less than 0.1%, while S&P 500 futures hovered near the flatline. - European Central Bank cuts interest rates for the first time since 2019
The European Central Bank on Thursday confirmed a widely anticipated reduction in interest rates at its meeting, despite lingering inflationary pressures in the 20-nation euro zone. It takes the central bank’s key rate to 3.75%, down from a record 4% where it has been since September 2023. ″Based on an updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it is now appropriate to moderate the degree of monetary policy restriction after nine months of holding rates steady,” the ECB Governing Council said in a statement. - China’s exports grow more than expected in May, up by 7.6%
Exports rose by 7.6% in May from a year ago in U.S. dollar terms, beating expectations for 6% growth, according to a Reuters poll. Imports, however, rose by 1.8% during that time, missing the Reuters’ forecast for 4.2% growth. China’s imports and exports to the U.S. and EU fell during that time, according to CNBC calculations of official data. - China’s Alibaba is courting European and U.S. small businesses as it goes global
Chinese e-commerce giant Alibaba is ramping up its global expansion with new services aimed at attracting small businesses in the U.S. and Europe. Alibaba.com the company’s business-to-business platform which sells to companies outside China announced Thursday it’s launching “Alibaba Guaranteed.” The new service will provide buyers with greater certainty on delivery, payments and dispute settlement.
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