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Adobe Soars 15% Pre-Market; Visa and Mastercard Encounter Hurdles in $30 Billion Agreement, and More

Fernanda T
Latest News
June 14 2024 7:21AM

Adobe (NASDAQ:ADBE) – Adobe exceeded expectations in the last quarter with revenue of $5.31 billion, above analysts’ consensus polled by FactSet of $5.29 billion. Adjusted earnings were $4.48 per share, surpassing estimates of $4.39. The company raised its revenue outlook to $21.4 billion to $21.5 billion and adjusted earnings to $18 to $18.20 per share for the fiscal year. Shares jumped 14.9% in pre-market trading.

Visa (NYSE:V), Mastercard (NYSE:MA) – The $30 billion antitrust agreement proposed by Visa and Mastercard, aimed at reducing card fees for merchants, is at risk of rejection. New York judge Margo Brodie indicated she’s unlikely to approve it, citing significant concerns in the nearly 19-year-old case. The proposed agreement sought to settle a long-standing dispute over the high fees merchants pay to accept credit card payments. It would have allowed merchants to charge consumers extra fees on card transactions and use pricing strategies to incentivize the use of cheaper cards.

Microsoft (NASDAQ:MSFT) – Microsoft has postponed the launch of “Recall,” an AI tool that monitors computer activities, originally scheduled for next week. Instead, the technology will be tested in a smaller group through the Windows Insider Program due to privacy concerns.

Apple (NASDAQ:AAPL) – On Thursday, a class-action proposal was filed against Apple, accusing it of underpaying over 12,000 female employees in California compared to men in similar roles, alleging systematic wage discrimination in its engineering, marketing, and AppleCare divisions.

Alphabet (NASDAQ:GOOGL) – Alphabet’s Waymo unit announced the recall of 672 autonomous vehicles due to incidents including collisions and erratic driving behavior. Following a May crash, NHTSA investigated 22 reports of issues. Waymo has implemented software and mapping updates to improve detection and safety. In other news, Google partnered with NV Energy and startup Fervo Energy to operate data centers using geothermal electricity. This energy, derived from underground heat, offers a stable, carbon-free source unlike solar and wind, supporting Google’s climate goals by 2030.

Snowflake (NYSE:SNOW) – Snowflake is wrapping up its investigation into a hacker attack affecting up to 165 customers. The incident involved the use of stolen credentials, highlighting the importance of multi-factor authentication. The company is collaborating with Mandiant and CrowdStrike to mitigate damage and enhance security measures.

Arm Holdings (NASDAQ:ARM), Sirius XM Holdings (NASDAQ:SIRI) – Arm Holdings will replace Sirius XM Holdings in the Nasdaq 100 Index on June 24 due to its higher market value. The change, announced by Nasdaq, reflects minimum market capitalization criteria for the index. Inclusion could boost demand for Arm’s shares among index-linked investors.

Tesla (NASDAQ:TSLA) – Tesla shareholders approved a $56 billion pay package for CEO Elon Musk, reinforcing support for his leadership. Despite opposition from some institutional investors and proxy firms, retail investors—often Musk enthusiasts—backed the proposal. Norway’s wealth fund, Tesla’s largest shareholder with a significant stake, will continue constructive dialogue despite voting against the pay package. Approval comes amid ongoing litigation in Delaware, where a judge criticized the board for being overly tied to Musk. In other news, China’s market regulator announced on Friday that Tesla will update the software of 5,836 imported Model 3, S, and X cars starting July due to safety issues. Additionally, Canadian Klaus Pflugbeil pleaded guilty in New York to stealing Tesla’s trade secrets on electric vehicle battery manufacturing and attempting to sell them to undercover FBI agents. He faces up to 10 years in prison.

Ford Motor (NYSE:F) – Ford Motor will allow all its dealers to sell electric vehicles starting July 1, removing previous requirements for investment in training and infrastructure. The move aims to boost sales after slower-than-expected adoption, easing access to models like the F-150 Lightning and Mustang Mach-E. According to Reuters, the automaker had introduced rules in 2022 requiring dealers to spend between $500,000 to about $1 million on charging equipment and other programs. Approximately half of its 2,800 dealerships have joined the program since then.

Stellantis NV (NYSE:STLA) – Stellantis is considering shifting production of Leapmotor vehicles from China to Europe due to new tariffs on EV imports by the European Union. CEO Carlos Tavares indicated that extra costs could accelerate this move as they seek to avoid growing global trade tensions.

Boeing (NYSE:BA) – Boeing is investigating a quality issue on the 787 Dreamliner after discovering hundreds of fasteners were improperly installed on some undelivered jet fuselages. This is the latest in a series of manufacturing issues involving improperly torqued fasteners, which do not pose an immediate safety concern for flight. The head of the Federal Aviation Administration (FAA) admitted the agency failed in overseeing Boeing before a serious incident involving an Alaska Airlines 737 MAX 9 in January. The FAA is now ramping up on-site inspections and investigations into Boeing, seeking accountability for violations and improving safety culture.

Royal Caribbean (NYSE:RCL) – The cruise industry is recovering robustly post-pandemic, with high demand and higher prices. Some analysts highlight Royal Caribbean as a leader, expecting the sector as a whole to continue advancing.

JPMorgan Chase (NYSE:JPM) – JPMorgan and Greek fintech Viva Wallet, led by Haris Karonis, settled a London court dispute over the company’s valuation. The court dismissed claims of value manipulation by the bank, potentially allowing Viva to be sold based on a fair valuation before July 2025.

Wells Fargo (NYSE:WFC) – According to Bloomberg, Wells Fargo fired over a dozen employees for alleged keyboard activity simulation in its wealth and investment management unit, creating an impression of active remote work.

Goldman Sachs (NYSE:GS) – Goldman Sachs plans to increase lending to ultra-rich clients with over $10 million, aiming to double this area over the next five years. The strategy aims to offer financing for large purchases, from real estate to sports teams, bolstering its wealth management operations and leveraging growing deposits.

New York Community Bancorp (NYSE:NYCB) – On Thursday, New York Community Bancorp announced the acquisition of assets from bankrupt Signature Bank, valued at $37.8 billion. The transaction includes primarily cash, cash equivalents, and loans.

3M (NYSE:MMM) – 3M plans to transfer $2.5 billion in pension obligations to Metropolitan Tower Life Insurance, affecting 23,000 retirees in the US. This move, expected in October, will result in a pension settlement charge of up to $900 million next quarter.

Walmart (NYSE:WMT) – Walmart will relaunch ‘No Boundaries,’ its fashion brand for Generation Z, with affordable and sustainable products like a bra made from sugarcane. The goal is to attract young consumers with prices below $15 and a strong campaign on TikTok, Roblox, and Instagram to boost sales.

GameStop (NYSE:GME) – GameStop’s virtual annual shareholder meeting was postponed to June 17 due to technical difficulties with the third-party hosting site, with no business conducted. Keith Gill, known as “Roaring Kitty,” apparently liquidated his options position in GameStop, converting them into over nine million common shares. His Reddit screenshot showed a significant drop in his cash balance, suggesting reinvestment. The move impacted the market alongside GameStop’s postponed shareholder meeting.

Starbucks (NASDAQ:SBUX) – The US Supreme Court ruled in favor of Starbucks, overturning an order to rehire fired employees in Memphis during a unionization attempt. The court argued that the standard used to issue the injunction was inadequate, requiring stricter criteria for future decisions on contested labor practices.

Chipotle Mexican Grill (NYSE:CMG) – Chipotle’s shares are rising despite controversies over portion sizes. Consumers are using social media to complain about portion sizes, but the company denies any changes. Investors and analysts maintain confidence, reflected in a 42% rise in shares this year, outperforming the S&P 500. Additionally, positive outlook and planned stock split sustain market optimism.

Tyson Foods (NYSE:TSN) – On Thursday, Tyson Foods suspended its CFO, John R. Tyson, following his arrest for driving under the influence. Curt Calaway will assume the role temporarily. Tyson is the great-grandson of the company’s founder, and this was Tyson’s second arrest in less than two years.

Signet Jewelers (NYSE:SIG) – Signet Jewelers CEO Gina Drosos stated the company is confident in its second-half forecasts, dismissing concerns about excessive discounts that caused a drop in shares. She emphasized they are prepared to effectively compete in the market, maintaining competitive pricing and launching new designs. The company reported adjusted earnings per share of $1.11 and sales of $1.511 billion in the first quarter. EPS beat Wall Street’s forecast of 85 cents but fell short of revenue estimates of $1.516 billion. Same-store sales in the period declined 8.9%, missing forecasts.

RH (NYSE:RH) – In the first quarter, home décor retailer RH reported a loss of $3.6 million, or 20 cents per share, below analysts’ expectations of a 13-cent loss per share. Revenue reached $726.9 million, slightly above the $725 million expectation. For the second quarter, the company forecasts sales growth of 3% to 4%, against an expectation of 7.5%. RH maintains its annual growth forecast of 8% to 10%, despite a challenging real estate market. Shares fell 11.2% in pre-market trading.

Teva Pharmaceuticals (NYSE:TEVA) – Teva Pharmaceuticals sued Corcept Therapeutics and distributor Optime Care for monopolistic practices in the Korlym market, a drug for Cushing’s syndrome. Allegations include bribing doctors to maintain exclusive prescriptions, preventing more affordable generics from entering the market and affecting patients with the rare disease.

Pfizer (NYSE:PFE), Sarepta Therapeutics (NASDAQ:SRPT) – Pfizer’s failure in a gene therapy trial for DMD has devalued its prospects but may benefit Sarepta Therapeutics. Analysts note that unlike Pfizer, Sarepta already has accelerated approval for its treatment, Amondys, and expects to expand this approval. This contrast could enhance Sarepta’s market position.