US Index Futures advanced in premarket trading on Monday. The FOMC announces its decision on Wednesday and derivatives this Monday point to a 75.9% chance that the interest rate will be maintained between 5% and 5.25% in the US, while the high bet of 0.25 percentage point is at 24.1%, according to the Chicago Mercantile Exchange’s Fed Watch tool. The European Central Bank and the Bank of Japan also release monetary policy decisions on Thursday and Friday, respectively.
At around 6:57 AM, Dow Jones (DOWI:DJI) futures were up 7 points, or 0.02%. S&P 500 futures were up 0.20%, while Nasdaq-100 futures were up 0.44%. The yield on the 10-year Treasury bond was at 3.745%.
The morning news is about the fall in commodities. The iron ore contract for September yielded 1.81%, to 785.50 yuan, the equivalent of US$110 on the Chinese Exchange in Dalian. Brent crude for August was down 1.68% to $72.95 a barrel. West Texas Intermediate crude fell 2.09% to settle at $68.70 a barrel.
George Soros, the legendary investor, is handing over control of his $25 billion empire to a youngest son – 37-year-old Alexander Soros. Alex said he was concerned about the prospect of Donald Trump’s return to the White House, hinting at a significant financial role for the Soros organization in the 2024 presidential race.
Former Italian Prime Minister Silvio Berlusconi has died aged 86. The tycoon had been suffering from leukemia for some time. Controlling shareholder of Mediaset, Italy’s biggest commercial broadcaster, Berlusconi was among the richest men on the peninsula with a fortune estimated by Forbes at around US$6.9 billion. current. Berlusconi was prime minister for nine years.
On Monday’s US Economic Calendar, the US Federal Budget Balance Sheet will be released at 2:00 pm.
Oracle (NYSE:ORCL) is scheduled to release its fiscal fourth-quarter results after market close on Monday. Shares of the renowned software company rose 3.24% in premarket trade. For the week, expected earnings reports are from Lennar (NYSE:LEN), Adobe (NASDAQ:ADBE) and Kroger (NYSE:KR).
At the close of Friday, US stock markets rose, with the S&P 500 surpassing 4,300,000 points. In the previous week, the S&P 500 was up 0.39%, marking the fourth straight weekly gain. The Nasdaq rose about 0.14%, posting its seventh consecutive weekly gain and its longest winning streak since November 2019. The Dow Jones added 0.34% weekly.
Wall Street Corporate Highlights for Today
Braskem (NYSE:BAK) – Unipar Carbocloro (BOV:UNIP3) has submitted a non-binding offer to acquire controlling interest in Braskem. The proposal was made to Novonor, together with Petrobras (NYSE:PBR) and creditor banks. Unipar plans to launch public offers to acquire common and preferred shares of Braskem, seeking to increase its participation in the Brazilian petrochemical market. The value of the transaction has not yet been disclosed.
Sacyr (USOTC:SYRVF) – Sacyr announced on Monday that it will sell its environmental services business to Morgan Stanley Infrastructure Partners for €425 million ($456.9 million), excluding minority stakes. The sale values the Valoriza Serviços Medioambientais unit at €734 million, including debt and equity. The transaction is part of Sacyr’s strategy to reduce debt and focus on public-private partnerships. Closing of the deal is expected in the fourth quarter, subject to regulatory approval, and Sacyr is expected to post a pre-tax gain of around €270 million.
Rio Tinto (NYSE:RIO) – Rio Tinto and China Baowu Steel have signed an agreement to collaborate on reducing carbon emissions in the steel industry. Initiatives include the creation of green steel facilities in China and Western Australia. The steel sector seeks to decarbonize and meet emission targets set by Beijing.
Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL) – French President Emmanuel Macron met with artificial intelligence experts from Meta Platforms and Google to discuss France’s role in AI research and regulation. Macron wants to play a key role in global and European regulation of AI, aimed at increasing rivalry with the UK. He will present a project on generative AI at the VivaTech conference in Paris. Elon Musk will also attend the event.
Netflix (NASDAQ:NFLX) – Daily subscriptions to Netflix in the US increased following the implementation of a crackdown on password sharing. The company registered nearly 100,000 new sign-ups in two days, surpassing levels during the initial pandemic lockdowns.
Intel (NASDAQ:INTC) – German Finance Minister Christian Lindner is rejecting Intel’s demands for additional subsidies for a €17 billion chip factory. Lindner says the country cannot afford the additional costs and is focused on consolidating the budget. Intel chose Magdeburg as the site for the chip manufacturing complex as part of an $88 billion European investment. Several chip makers are seeking government funding to build factories in Europe.
Salesforce (NYSE:CRM) – Marc Benioff, CEO of Salesforce (CRM), will lead the 90-minute “Salesforce AI” live stream event on Monday. Evercore ISI analyst Kirk Materne expects there will be an emphasis on data cloud and trust elements during the event. The company’s shares were up 0.78% in premarket trade.
Activision Blizzard (NASDAQ:ATVI) – Activision Blizzard, makers of “Call of Duty”, has been authorized to intervene in the legal battle between Microsoft (NASDAQ:MSFT) and the UK antitrust regulator regarding the blocking of the US transaction $69 billion. Microsoft is appealing against the Competition and Markets Authority (CMA) decision to veto the deal. Activision may bring its case to the Competition Court of Appeal. The US Federal Trade Commission has also blocked the deal, and Microsoft is seeking to address regulators’ concerns.
Broadcom (NASDAQ:AVGO), VMware (NYSE:VMW) – Broadcom is about to obtain conditional EU approval for its acquisition of VMware, with interoperability requirements as antitrust conditions. Proposed solutions include addressing competition concerns related to Fiber Channel host bus adapters. The final decision will be made by July 17th.
Okta (NASDAQ:OKTA) – Okta plans to invest around $40 million in artificial intelligence projects, representing 10% of its annual research and development budget. Its CEO, Todd McKinnon, believes in AI’s potential but warns of premature regulation. Okta projects revenues between $2.18 billion and $2.19 billion in 2024.
Oshkosh Corp (NYSE:OSK) – Oshkosh CEO John Pfeifer said artificial intelligence is already making the company’s products more efficient and has the potential to make vehicles like garbage trucks completely autonomous. He highlighted the use of AI to eliminate the need for an operator behind the truck. The company, which manufactures several types of vehicles, recorded sales above estimates and recently closed a large-value contract with JBT’s AeroTech Unit.
Rheinmetall (USOTC:RNMBF) – The CEO of Rheinmetall, the largest German defense contractor, expects an increase in the company’s market value due to the war in Ukraine and defense spending in Europe. It forecasts an operating income of €1.5 billion to €1.7 billion in 2025, resulting in a valuation of €17 billion over the medium term. The company currently has a market value of around €10.5 billion and entered Germany’s DAX index this year.
Essity (USOTC:ETTYF) – Swedish hygiene products group Essity has announced the sale of its Russian operations. The company stated that it does not expect a significant financial impact from this liquidation. The transaction, approved by the Russian authorities, is expected to close in the second quarter of 2023. Essity has decided to end its production and sales in Russia after writing down Kronor 1.7 billion on its assets in the country, representing around 2% of your total sales.
Epigenomics (USOTC:EPGNF) – Epigenomics has announced talks with an undisclosed US company to sell nearly all of its assets for around $11.5 million. Shares in the German medical diagnostics company rose to EUR 1.24. The potential settlement covers patents, rights to colon cancer blood tests and all blood samples owned by Epigenomics. Completion of the agreement is scheduled for December, subject to the payment of royalties and other costs related to the commercialization of a diagnostic test under development.
Goldman Sachs Group (NYSE:GS) – Stephanie Cohen, head of Goldman Sachs’ fintech unit, Platform Solutions, is taking a leave of absence for family reasons. Philip Berlinski and Ericka Leslie will assume their responsibilities during her absence. Cohen is the only female executive to lead one of Goldman’s major business units. In other news, Goldman Sachs lowered its oil price forecasts due to rising global supply and decreasing demand. Now they estimate Brent at $86 a barrel in December, down from $95 earlier. Increased supply from countries such as Russia, Iran and Venezuela, along with fears of recession and higher interest rates, are factors contributing to the drop in prices, according to Goldman Sachs.
UBS (NYSE:UBS), Credit Suisse (NYSE:CS) – UBS announced on Monday the completion of the acquisition of Credit Suisse AG, ending the crisis that has affected one of the main Swiss financial institutions in recent months. The deal was described as “the beginning of a new historic chapter”. UBS agreed to acquire its rival for 3 billion Swiss francs ($3.3 billion) after Credit Suisse faced customer outflows. In addition, UBS signed a loss protection agreement with the Swiss government of up to CHF 9 billion ($10 billion) following the completion of the Credit Suisse acquisition.
Westpac (ASX:WBCHAZ) – Australian bank Westpac has announced it will cut around 300 jobs across its consumer and business banking segments amid rising profit growth and pressures from interest rates and inflation. The financial sector union condemned the cuts, citing excessive workload demands. The bank recorded a 22% increase in its net profit in the first half of this year.
Tesla (NASDAQ:TSLA) – The White House has announced that Tesla electric vehicle charging stations that also have the US Standard Charging Connection, CCS, will be eligible for federal grants. This comes after announcements by Ford and General Motors that they will adopt Tesla’s charging model, shaking up the charging industry. The White House statement also mentioned that the goal is for all cars to be able to use government-funded chargers, including Tesla Superchargers.
Nio (NYSE:NIO) – Chinese electric vehicle manufacturer Nio has announced it will cut prices on all its models and eliminate free battery exchange services for new buyers, due to pressure on its profits and weak sales. Nio faces stiff competition from other car brands in China, including Tesla. Nio’s shares rose nearly 5% in response to the announcement.
Volkswagen (USOTC:VWAGY) – Volkswagen’s supervisory board will meet to discuss a savings program of at least €3 billion across the Volkswagen, Seat, Skoda and Cupra brands. The aim is to reduce duplicate work and optimize the use of factories. The detailed update will be released on Stock Market Day on June 21st.
Bunge (NYSE:BG) – Grain company Bunge is finalizing a merger agreement with Glencore partner Viterra to create an agricultural trading giant valued at over $30 billion. Bunge will pay for the bulk of the deal in equity, while Bunge’s management team will oversee the combined company. The agreement may be signed soon, but there is still a possibility of failure. The acquisition would boost Bunge’s grain export and oilseed processing business.
Glencore (USOTC:GLNCY), Teck Resources (NYSE:TECK) – Glencore has made a bid to buy Teck Resources’ steelmaking coal business as a stand-alone unit, following the rejection of its $22.5 billion merger offer. Glencore proposes to spin off the coal units and is seeking an intermediate solution for the sale of the metallurgical coal assets.
Dassault Systemes (USOTC:DASTY) – Dassault Systemes is forecast to double its earnings per share by 2028 and has announced a new CEO. The company plans to reach an EPS between 2.20 and 2.40 euros by 2028, driven by the implementation of its Horizon 2040 strategy. Pascal Daloz will take over as CEO from 2024.
BioNTech (NASDAQ:BNTX) – BioNTech will face a lawsuit filed by a German woman seeking compensation for alleged side effects of the Covid-19 vaccine. The case is the first of many that could arise in Germany. The company will contest the lawsuit, saying its vaccine has a positive benefit-risk profile.
Novartis (NYSE:NVS), Chinook Therapeutics (NASDAQ:KDNY) – Chinook Therapeutics, a biopharmaceutical company specializing in treatments for kidney disease, announced a $3.2 billion acquisition agreement by Novartis, equivalent to $40 per cash action. Chinook shares ended Friday at $23.99 and rose 68.82% in premarket trade to hit $40.50.
Biogen (NASDAQ:BIIB) – Shares in Biogen rose 3.28% in premarket trade after a Food and Drug Administration (FDA) advisory committee said the biotechnology company, in partnership with Eisai, proved the effectiveness of its drug Leqembi for Alzheimer’s. The committee voted unanimously, six to zero, recommending approval of the treatment.
Illumina (NASDAQ:ILMN) – Illumina CEO Francis deSouza has resigned following a battle with activist investor Carl Icahn. Charles Dadswell was named interim CEO. The company is in dispute with antitrust regulators over the Grail acquisition. Icahn considered the changes positive.
Novo Nordisk (NYSE:NVO) – Novo Nordisk will invest DKK 15.9 billion to expand its production facility in Denmark. The expansion does not include the production of the main ingredient of its popular medicines Ozempic and Wegovy, but aims to meet future demands for products to treat serious chronic diseases. The new facility will begin production in 2029.
Chase Corp (AMEX:CCF) – The WSJ reported that specialty chemicals company Chase Corp is pursuing a potential sale. The company is working with financial advisors and has attracted interest from private equity firms, including Pritzker Private Capital.
Blue Apron (NYSE:APRN) – After a significant gain during regular trading session last Friday, shares of Blue Apron, the meal kit company, fell in the aftermarket on Friday. The company transferred its operating infrastructure to FreshRealm as part of a deal valued at up to $50 million. Blue Apron will receive about $25 million upfront and FreshRealm will receive call centers, equipment and know-how, the companies said. Blue Apron is now focused on growing its direct-to-consumer business and has eliminated its debt.
Electra Battery Materials (NASDAQ:ELBM) – Effective July 1, Peter Park will take over as Chief Financial Officer of Electra Battery Materials, succeeding Craig Cunningham, who will resign June 30. Park is a senior finance professional with over 20 years of experience and is already part of Electra’s finance team. The company specializes in processing low-carbon and ethical battery materials.
Nabors Industries (NYSE:NBR) – Shareholders of Nabors Industries rejected a proposed “say-on-pay” advisory compensation proposal, a recurring result for the company since the implementation of the Dodd-Frank legislation in 2010. The oil services company recorded 3,3 million votes in favor and 5 million against the proposal. In response to the 2022 negative vote, Nabors took steps to address shareholder concerns, including significantly reducing the CEO’s total direct compensation.
Krispy Kreme (NASDAQ:DNUT) – BD Capital Partners reduced its stake in Krispy Kreme, selling 6,150,000 shares in a block trade, cutting its position by 43%. While no reason for the sale was cited, BD Capital now owns 4.8% of the company, below the 5% threshold that requires additional disclosure. Krispy Kreme stock has performed solidly, nearly doubling this year with a positive Q1 report. The JP Morgan analyst raised the stock price target to $17, citing favorable results in the US and developing new markets.
Mondelez (NASDAQ:MDLZ) – Mondelez International is facing a corporate boycott in the Nordic region due to its continued presence in Russia. Companies such as SAS, Norwegian Air and SJ have announced that they will stop selling Mondelez products. The company requested a meeting with the Norwegian government to protect its local business. Mondelez said it will comply with political decisions and sanctions and make necessary adjustments to its operations.
Cobra Resources (LSE:COBR) – Cobra Resources announced on Monday that drilling results at its Wudinna project in Australia indicate significant potential for resource growth. Drilling results showed drilling intervals of up to 25 meters and total rare earth oxide grades of up to 3,568 parts per million. The company plans to include these results in an update of rare earth mineral resources, which will be published after the completion of the update of existing gold mineral resources, expected in the second half of this year.
Savannah Resources (USOTC:SAVNF) – Savannah Resources revealed that its scoping study on the Barroso lithium project, Portugal, showed excellent financial potential, with a net present value of US$953 million. The project aims at an annual production of 1.5 million tons and intends to extract 20.5 million tons over 14 years. The company is now focusing on environmental licensing and the definitive feasibility study, with production expected to start in mid-2026.
Planet Fitness (NYSE:PLNT) – Planet Fitness stock has moderately performed in 2023, with a year-to-date loss of 15%. CEO Chris Rondeau purchased 10,000 shares of the company for $650,000 in an attempt to restore investor confidence. Planet Fitness’s inclusion in the S&P MidCap 400 Index also boosted the share price.