Exxon Mobil (NYSE:XOM) – The California Public Employees’ Retirement System (CalPERS) announced it will vote against Exxon’s 12 board nominees, citing the company’s legal action against activist investors. CalPERS warned in a letter that such legal action could diminish investors’ roles and rights in influencing the company’s financial outcomes. The vote will take place at Exxon’s shareholder meeting on May 29. Shares are down 0.4% in pre-market trading.
Microsoft (NASDAQ:MSFT) – Microsoft launched a new category of AI-focused PCs, called “Copilot+”, during an event in Redmond, Washington. These computers, to be sold in partnership with Acer and Asustek, are designed to run AI tasks directly on the device without relying on data centers. Shares rose 0.4% in pre-market trading.
Dell Technologies (NYSE:DELL), Qualcomm (NASDAQ:QCOM) – Dell Technologies revealed a line of AI PCs equipped with Qualcomm chips and announced a new server compatible with Nvidia, available in the second half of 2024. The launches aim to boost the AI server market and prepare for the expected recovery in the post-pandemic PC market. Dell’s shares rose 0.7% in pre-market trading.
Nvidia (NASDAQ:NVDA) – Jensen Huang, CEO of Nvidia, stated that the partnership with Dell will democratize the use of artificial intelligence, enabling more companies and organizations to develop their own “AI factories.” In an interview with Bloomberg Television in Las Vegas, he highlighted the complexity of the required infrastructure, involving a complete hardware and software solution. Additionally, traders expect significant volatility in Nvidia’s shares after earnings are released, but the expected volatility is lower than in previous periods, according to US options markets. Shares could vary by 8.7% until Friday, potentially impacting the market value by $200 billion. Despite the significance, the movement is below the 16.4% of the last earnings report and the 12% average of the last eight quarters.
Foxconn (USOTC:FXCOF), Apple (NASDAQ:AAPL) – Vietnamese authorities requested that Foxconn, Apple’s supplier, voluntarily reduce energy consumption by 30% at its northern Vietnam factories to avoid a repeat of last year’s power shortage, which led to over a billion dollars in production losses. Additionally, Apple is contesting a $1.9 billion fine imposed by the European Union, alleging obstruction of competition in the music streaming market. The company has appealed to the EU General Court in Luxembourg to annul the decision, which also includes restrictions on informing users of external offers.
IBM (NYSE:IBM) – IBM will launch AI models as open-source software and collaborate with Saudi Arabia to train an AI system in Arabic. Unlike companies like Microsoft, which protect their models, IBM opts for open access, allowing customizations through its paid tool, Watsonx.
ASML Holding NV (NASDAQ:ASML), Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) – ASML and TSMC have mechanisms to disable their advanced chip manufacturing machines in the event of a Chinese invasion of Taiwan. This capability is part of concerns expressed by US authorities in talks with Dutch and Taiwanese representatives about the potential consequences of a conflict. ASML can remotely shut down these machines, essential for producing advanced semiconductors used in technology and defense applications.
Trump Media and Technology Group (NASDAQ:DJT) – The TMTG, owner of Donald Trump’s Truth Social, confirmed cooperation with a FINRA investigation into its merger with SPAC. The volatility of TMTG’s shares reflects post-IPO speculation. Trump, the Republican candidate, holds a majority stake, promoting Truth Social as a defender of free speech.
JD.com (NASDAQ:JD) – JD.com is issuing $1.5 billion in convertible bonds maturing in 2029, which can be converted into company shares. With a coupon of up to 0.25%, the issuance, which can increase by $225 million, is the largest of its kind in Asia this year. The funds will be used for share buybacks, international expansion, and supply chain improvements.
Alibaba (NYSE:BABA) – Alibaba started a price war in China’s AI sector, cutting the prices of its services by up to 97%. Baidu (NASDAQ:BIDU) quickly responded by offering free services for its Ernie AI model, signaling intensified competition and pressuring other giants like Tencent and JD.com to follow suit.
Target (NYSE:TGT) – Target plans to reduce prices on over 5,000 essential products, from milk to diapers, aiming to attract budget-conscious customers. High food prices and borrowing costs have led consumers to seek more affordable products, pressuring retailers to adjust prices to maintain appeal.
Peloton Interactive (NASDAQ:PTON) – Peloton Interactive announced plans on Monday to refinance its debt by issuing $275 million in senior convertible notes maturing in 2029 in a private offering. The company also signed a $1 billion loan and a $100 million revolving credit facility, seeking to stabilize its financial position.
BHP Group (NYSE:BHP) – BHP shares rose 0.5% in pre-market trading, boosted by positive news and expectations that it will not make a new offer for Anglo American, which rejected a $43 billion proposal. The deadline for a formal offer ends in 36 hours.
Chesapeake Energy (NASDAQ:CHK) – Chesapeake Energy, a major US natural gas producer, began layoffs after divesting its oil assets last year, focusing on gas. According to Reuters, the layoffs follow the sale of Eagle Ford assets, not affecting the imminent merger with Southwestern Energy. The company did not detail the extent of the layoffs.
VinFast (NASDAQ:VFS) – Vietnamese electric vehicle manufacturer VinFast faces a lawsuit in California for allegedly not paying rent for a store, according to allegations by SPG Center LLC. The company disputes the charge, claiming it paid until March 2024 and suspended payments due to negotiations to alter the lease agreement. Additionally, US automotive safety investigators have launched an investigation into a fatal accident involving a VinFast VF 8 electric vehicle in Pleasanton, California, where a family of four died. The investigation will examine the circumstances of the accident and the subsequent fire.
Li Auto (NASDAQ:LI) – China’s Li Auto delayed the launch of electric SUVs to next year due to a shortage of fast chargers. CEO Li Xiang cited the lack of adequate infrastructure as a critical obstacle. Additionally, the Mega electric model did not meet sales expectations, impacting the company’s strategy.
Tesla (NASDAQ:TSLA) – The NHTSA closed an investigation into 100,000 Tesla Model X vehicles after the automaker issued a recall to fix front seat belt issues. The agency considers future actions but praised Tesla’s efforts in recalls and updates, in an investigation that began in March 2023.
Ford Motor (NYSE:F) – Ford publicly supported the Biden administration’s new environmental regulations aimed at halving vehicle emissions by 2032. Contrary to Republican criticism, the company emphasized the importance of the regulations for stability and planning in the automotive sector, underscoring its commitment to stricter standards and the transition to electric vehicles.
Southwest Airlines (NYSE:LUV) – A group led by Edward Blum sued Southwest Airlines, claiming its program offering free flights to Hispanic undergraduate and graduate students is discriminatory for excluding non-Hispanics. The lawsuit, filed in Dallas, challenges the program’s compliance with federal civil rights laws.
Eli Lilly (NYSE:LLY), Novo Nordisk (NYSE:NVO) – Eli Lilly announced that its diabetes drug, tirzepatide, was approved by Chinese regulators, intensifying competition with Novo Nordisk in Asia. The drug, also used for weight loss as Zepbound, promises to boost sales in the global obesity treatment market, estimated at $100 billion. Novo Nordisk, with its drug Ozempic, also aims for expansion, highlighting the sector’s potential with growing demand.
Hims & Hers (NYSE:HIMS) – Hims & Hers is betting on the booming weight loss injection segment, planning to offer treatments with the same active ingredient as Wegovy for $199 per month, challenging big pharmaceuticals with discounts of up to 85%. Shares, which jumped on Monday, rose 3.7% in pre-market trading on Tuesday.
Sanofi (NASDAQ:SNY) – French pharmaceutical company Sanofi announced a partnership with OpenAI and Formation Bio to advance drug development using Artificial Intelligence. The collaboration will allow Sanofi to access exclusive data to create AI models and accelerate clinical trials, reducing costs and time in the process.
AstraZeneca (NASDAQ:AZN) – AstraZeneca plans to double its sales to $80 billion by 2030, driven by the launch of 20 new drugs. The company, which saw its shares rise 1% in pre-market trading, also aims to expand its portfolios in oncology, biopharmaceuticals, and rare diseases, targeting annual growth of 7%.
GSK (NYSE:GSK) – GSK announced that two final phase trials of its new asthma drug, depemokimab, met their goals, reducing the frequency of asthma attacks over a year. Designed for inflammation affecting 80% of patients with severe asthma, the drug could reach annual sales of over $3.8 billion. The results will be presented at a future scientific congress and used for global regulatory submissions. Additionally, GSK was sued by a Connecticut laboratory, alleging the company defrauded the US government and taxpayers by hiding cancer risks in the drug Zantac. Valisure, the laboratory, seeks billions in damages, while GSK denies the allegations, arguing against the validity of the tests.
JPMorgan Chase (NYSE:JPM) – JPMorgan CEO Jamie Dimon communicated that the bank’s succession plans are in progress and mentioned a shorter transition timeline than previously stated. During a meeting in New York, Dimon also expressed concerns about economic prospects and announced restrictions on share buybacks.
Deutsche Bank (NYSE:DB) – Deutsche Bank raised its year-end 2024 target for the S&P 500 index to 5,500 points, the highest among major brokerage firms, reflecting a bet on robust corporate earnings that should support elevated stock valuations. Previously, the forecast was 5,100 points.
BlackRock (NYSE:BLK) – BlackRock faces a $20 million lawsuit from a former vice president who claims wrongful termination after opposing internal deals and illegal client monitoring. The company denies the allegations, attributing the termination to poor performance. The case raises concerns about Chinese investments and reveals internal disputes at the asset management firm.
Earnings
Palo Alto Networks (NASDAQ:PANW) – Palo Alto Networks reported a disappointing fourth-quarter forecast, reflecting tightened corporate cybersecurity spending. The projection for the quarter is $3.43 billion to $3.48 billion, in line with analysts’ estimates of $3.45 billion. Annual revenue is expected between $10.13 billion and $10.18 billion, with little change from previous forecasts. Palo Alto Networks’ revenue in the last quarter increased by about 15%, reaching $1.98 billion, surpassing analysts’ forecast of $1.97 billion. Adjusted earnings per share for the quarter were $1.32, also above estimates of $1.25 per share. Shares fell 7.7% in pre-market trading.
Lowe’s (NYSE:LOW) – Lowe’s shares rose 2.2% in pre-market trading after the company reported better-than-expected first-quarter earnings. Despite a decline in higher-end spending, Lowe’s benefited from its DIY loyalty program and same-day delivery expansion. Net income was $1.8 billion, with sales totaling $21.364 billion, surpassing projections. The company forecasts annual sales between $84 billion and $85 billion and an EPS of $12.00 to $12.30.
XPeng (NYSE:XPEV) – XPeng reported a significant reduction in net loss for the first quarter, dropping to 1.37 billion yuan ($189.4 million) from a previous loss of 2.34 billion yuan, thanks to a 62% revenue increase, reaching 6.55 billion yuan. Boosted by the new X9 model, the company delivered 21,821 electric vehicles and expects to increase deliveries to 29,000-32,000 units next quarter, with projected revenue between 7.5 and 8.3 billion yuan. Shares rose 6.8% in pre-market trading.
Keysight Technologies (NYSE:KEYS) – Keysight Technologies reported a strong fiscal second quarter of 2024, with revenues of $1.2 billion and earnings per share of $1.41, exceeding analysts’ expectations. However, the company expects modest growth for the rest of the year, driven by strategic investments in R&D and acquisitions, including Spirent Communications and Riscure. The company expects third-quarter fiscal adjusted earnings between $1.30 and $1.36 per share on revenue of $1.18 billion to $1.2 billion, below analysts’ earnings projections of $1.45 per share and revenue of $1.21 billion.
Nordson (NASDAQ:NDSN) – Nordson revised its annual projection downward due to continued weakness in the electronics sector. The company, which had projected sales growth between 4% and 7%, now expects stability of 2%. Additionally, the adjusted earnings projection was reduced by 70 cents to $9.35 to $9.75 per share. Sales in the advanced technology solutions segment decreased by 22%.
Zoom Video Communications (NASDAQ:ZM) – Zoom Video Communications raised its annual revenue forecasts to about $4.61 billion to $4.62 billion, with adjusted earnings expected between $4.99 and $5.02 per share. In the first quarter, it reported revenue of $1.14 billion and adjusted quarterly earnings of $1.35 per share, above revenue estimates of $1.13 billion and earnings of $1.20 per share. Shares fell 2% in pre-market trading.