US stock and bond markets will be closed on Monday (29th) for Memorial Day. US debt deal talks have entered the final stages, but last-minute changes are likely to continue until the June 1 deadline. The week will remain busy with earnings reports and labor market data.
Earnings highlights will include results from Hewlett Packard Enterprise and HP Inc. on Tuesday, and Advance Auto Parts, Chewy, CrowdStrike, NetApp, Okta and Salesforce on Wednesday. Chevron, Exxon Mobil, Meta Platforms and Walmart also hold their annual shareholder meetings on Wednesday. Broadcom, Dell Technologies, MongoDB, Hormel Foods, Dollar General and Lululemon Athletica hold conference calls to discuss quarterly results on Thursday.
On Tuesday, S&P CoreLogic will release the Case-Shiller National Home Price Index for March. The consensus estimate is for a 1.5% year-on-year decline, after February’s 2% increase. After seven consecutive months of falling house prices, there was a small increase of 0.2% in February. Currently, the index is 4.9% below the record registered in June last year. The Conference Board will be ready to release the Consumer Confidence Index for May. Expectations are for a reading around 100, roughly one point below the April number. The index is at its lowest level since last summer.
On Wednesday, the Bureau of Labor Statistics is scheduled to release its job openings and workforce turnover survey. According to economists’ estimates, on the last working day of April, there were around 9.44 million unfilled jobs, representing a decrease of 150,000 compared to March. For the first time since May 2021, job openings fell below 10 million in February, signaling a loosening in the historically tight job market. At the same time, the Institute for Supply Management will release the May Chicago Business Barometer. The general expectation is for a reading of 47, almost two points below the registered in April. The Index has remained below the expansionary 50 level for eight consecutive months.
On Thursday, ADP is scheduled to release the National Employment Report for May. The economy is expected to create around 170,000 jobs in the private sector, following April’s 296,000 job increase. It is important to highlight that the services sector continues to be responsible for most of the employment gains. At the same time, ISM will release its Manufacturing Purchasing Managers’ Index for May. The consensus estimate indicates a reading of 47.1, remaining unchanged from April.
On Friday, the Bureau of Labor Statistics (BLS) will release its jobs report for the month of May. According to economists’ forecasts, a gain of 200,000 jobs in non-farm payrolls is expected, following the increase of 253,000 jobs in April. It is important to note that the unemployment rate is expected to rise from 3.4% to 3.5%, still remaining at the lowest rate since 1969. In addition, the average hourly wage is expected to increase of 4.3% compared to the previous year, representing a reduction of one tenth of a percentage point compared to the previous count. These are significant indicators of the country’s economic scenario and labor market.
Wall Street Corporate Highlights for Today
Micron Technology (NASDAQ:MU) – The United States is determined not to tolerate China’s ban on purchases of Micron Technology chips and is working with allies to address this economic coercion, said U.S. Commerce Secretary Gina Raimondo . She highlighted US opposition to China’s actions against Micron as pure economic coercion, and highlighted the importance of partnerships to address this particular challenge. Raimondo also mentioned that the IPEF deal would be consistent with US investments in domestic semiconductor production.
Softbank (USOTC:SFTBY) – SoftBank-owned Arm has launched a new chip technology for mobile devices, and MediaTek, a Taiwanese smartphone chip maker, will use this technology in its upcoming products. Investors reacted positively to the news, boosting SoftBank shares. Arm clarified that it is not in the business of selling chips, but has undertaken the engraving of one of its chips to test new manufacturing technologies.
Nvidia (NASDAQ:NVDA) – Nvidia and MediaTek have announced a collaboration to drive advanced in-vehicle infotainment systems with video streaming, gaming and artificial intelligence interaction. MediaTek will integrate a chiplet from Nvidia’s graphics processing unit and its software into system chips for automakers’ infotainment displays. The partnership aims to provide chips for all car segments and strengthen Nvidia’s access to the $12 billion infotainment chip market. Nvidia CEO Jensen Huang also unveiled a broad line of artificial intelligence (AI) products and services, including an AI supercomputer platform called DGX GH200. Nvidia is betting on the power of generative AI and is developing solutions to improve interaction in video games. In addition, the company is focused on solving speed and performance challenges in data centers with Spectrum X and is collaborating with WPP to optimize the production of advertising content.
Microsoft (NASDAQ:MSFT), Actvision Blizzard (NASDAQ:ATVI) – Microsoft is contesting the UK’s decision to block its acquisition of Activision Blizzard, citing errors in its valuation of cloud gaming services. The company filed an appeal with the Competition Appeal Court, arguing against the Markets and Competition Authority’s conclusion that the agreement would harm competition. EU competition authorities have already approved the deal, while the US Federal Trade Commission is seeking to block it.
Meta Platforms (NASDAQ:META) – The social media giant has offered restrictions on the use of advertising data for Facebook Marketplace, in response to competition concerns from the UK regulator. Commitments include the option for advertisers not to allow their data to be used to improve the classified ads platform. The Competition and Markets Authority is consulting on these proposals until June 26.
Baidu (NASDAQ:BIDU) – Baidu founder Robin Li has announced the upcoming launch of a new version of his large language model, similar to ChatGPT. This boosted Baidu shares in Hong Kong. Li said the model will be used to upgrade the technology behind the company’s AI products. After earlier disappointments, this development could boost Baidu’s stock and strengthen the global AI momentum. Li also highlighted the importance of collaboration between countries and the need for regulation in the AI sector.
Boeing (NYSE:BA) – Boeing is in talks to sell at least 150 737 Max jets to startup Riyadh Air, owned by the Saudi Arabian Public Investment Fund. Airbus can also get part of the order. Boeing has already won another significant order from Saudia and Riyadh Air for the 787 Dreamliners.
Uber (NYSE:UBER) – Uber is attracting European taxi drivers to its platform, with double use of the app for them. Despite uncertainties about labor rules, the company sees solid performance in Europe, where it recorded growth of 10% to more than 50% in some regions. Uber adapts to regulations while businesses find solutions.
Apollo Global Management Inc (NYSE:APO) – An affiliate of Apollo Global provided a $68 million loan to support the acquisition of an apartment building on the Upper West Side of Manhattan. The deal, led by Slate Property Group, KABR Group and Avenue Realty Capital, involves the purchase of the 166-unit building for $120 million. This transaction is one of the largest New York apartment acquisitions this year and comes in a challenging commercial real estate market. Slate has a long partnership with Apollo on several real estate acquisitions.
Tesla (NASDAQ:TSLA) – For the first time, the Tesla Model Y, an all-electric vehicle, has become the world’s best-selling car. In the first quarter of 2023, it sold 267,200 units globally, surpassing Toyota’s RAV4 and Corolla. Tesla continues to dominate the electric vehicle market due to slower development by competing manufacturers. Although it is the best-selling vehicle, Tesla is not the biggest global automaker overall.
AMP Limited (NYSE:AMP) – Blair Vernon will replace Peter Fredricson as AMP’s chief financial officer as the company dissolves the structure of its local wealth management unit to streamline operations. Assets under management at the Australian unit fell 13% to A$124.2 billion due to lower markets and cash outflows. Scott Hartley will step down as CEO of the wealth management unit in six months.
UniCredit (USOTC:UNCFF), Mastercard (NYSE:MA) – UniCredit has entered into an expanded partnership agreement with Mastercard to deliver payment innovation and enhanced digital experiences. The partnership spans 13 banks across 12 markets and is the first multi-market single card strategy of this scale in Europe.
JPMorgan Chase (NYSE:JPM) – JPMorgan Chase is laying off approximately 500 employees across multiple departments including consumer, commercial banking, asset management, wealth, technology and operations. The bank currently has more than 13,000 job openings. Omar El Amine Fichtali has been named head of investment banking at JPMorgan Chase & Co. in Saudi Arabia. The hiring comes amid competition for banking talent in the country, as the importance of the Saudi market grows. This appointment comes as JPMorgan works on the biggest initial public offering of the year in Saudi Arabia.
Walgreens (NASDAQ:WBA) – Walgreens Boots Alliance announced cuts of about 10% in its corporate staff as it aims to streamline operations and focus on consumer health businesses. The cuts will not affect stores, service points or call centers. The company seeks to regain market share by the end of 2023, with a reduction in the wage gap and an increase in automation.
Moderna (NASDAQ:MRNA) – Moderna has registered a legal entity in China and is exploring opportunities to enter the Chinese market with its mRNA platform, as confirmed by the company. The US vaccine maker is looking to expand its presence in China after declining global demand for its Covid-19 vaccine.
Costco (NASDAQ:COST) – As shoppers seek bargains due to inflation, Costco has shown resistance to raising its subscription fees in the near term. Although the company believes it can do so without harming demand, they prefer to focus on other business levers to boost results. Higher prices also worry Walmart, with persistent inflation hurting demand in other product categories.
TotalEnergies (NYSE:TTE) – TotalEnergies announced the renewal of the production license in the OML130 block, in Nigeria, for 20 years. The block contains productive oil and gas fields, contributing to Europe’s energy security. TotalEnergies is committed to the sustainable and socio-economic development of Nigeria.
Axiata Group (USOTC:AXXTF) – Axiata disclosed prospects for expansion and high debt. A lower dividend announcement for 2023 and lower-than-expected first-quarter results also contributed to stock weakness on Friday.