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Tuesday’s Wall Street Highlights: Amazon, Better Therapeutics, Blackstone, Microsoft and more

Fernanda T
Market Summary
July 11 2023 04:56AM

US Index Futures are trading slightly higher in premarket Tuesday. As Europe watches record wage increases in the UK and economic indicators in Germany, US futures are on the rise, awaiting the release of the country’s inflation data, scheduled for Wednesday.

By 6:56 AM, Dow Jones (DOWI:DJI) futures were up 7 points, or 0.02%. S&P 500 futures were up 0.09%, while Nasdaq-100 futures were up 0.13%. The 10-year Treasury yield is currently at 3.97%.

On the American economic agenda for Tuesday, the president of the Fed of NY, John Williams, will participate in an event at 11:00 am. At 4:30 pm, oil inventories for the week up to 6/30 will be released. Today, at 1 pm, the government will hold an auction of Treasury bonds maturing in three years. This auction aims to obtain financing for public expenses.

Elsewhere, the UK jobless rate rose to 4% in the quarter to May, while average weekly earnings, excluding bonuses, rose by 7.3% over the same period. The salary increase for the British highlights a prospect of rising inflation in the country, generating pressure on the stock market.

In Germany, the annual inflation rate increased by 6.4% in June, according to the final reading of the index, in line with expectations. However, the ZEW economic expectations index fell to 14.7 points in July, below expectations, which were -10.50 points.

In commodities markets, West Texas Intermediate crude for August was up 0.51% at $73.36 a barrel. Brent crudes for September are up 0.40% near $78.00 a barrel. Iron ore futures traded in Dalian, China, rebounded from the rout seen yesterday, rising 0.3% to $112.13 after China’s central bank extended a bailout package for the real estate sector.

At the close of Monday, stocks ended the day higher, despite few developments in the macroeconomic scenario. The Dow Jones closed with a gain of 209.52 points or 0.62%, at 33,944.40 points. The S&P 500 closed up 10.58 points, or 0.24%, at 4,409.53 points, while the Nasdaq rose 24.77 points, or 0.18%, to 13,685.48 points. FOMC directors continued to warn that the Fed may need to raise interest rates to fight inflation. However, investors seem to have temporarily ignored the risks posed by the inflation data due to be released this week, such as the CPI on Wednesday and the PPI on Thursday. If the data turns out to be stronger than expected, it could affect market sentiment in the near term. Futhermore, the earnings release season with banks could also pose a risk given the instability in the global banking system during the second quarter.

The second-quarter US corporate earnings season kicks off this week, with PepsiCo (NYSE:GM) and  Delta Air Lines  (NYSE:GM) on Thursday, and major banks such as JPMorgan Chase, Citigroup and Wells Fargo presenting its financial numbers on Friday. 

Wall Street Corporate Highlights for Today

Apple  (NYSE:GM) – On Tuesday, Apple launched an online store on Tencent’s WeChat messaging app in China as part of its efforts to expand its retail channels in a key market. Users can purchase Apple products including the iPhone 14 and enjoy services such as device switching. Apple has been looking to increase its presence on major Chinese online platforms, aiming to reach a wider audience.

Amazon  (NYSE:GM) – Amazon is offering bigger discounts during Prime Day this year in the US, including its first travel deals. Amazon has teamed up with travel booking site Priceline to offer discounts during Prime Day. Amazon is expanding its offerings to attract more sign-ups as travel companies look to fill up hotel rooms. Inflation and post-pandemic shopping fatigue are expected to affect sales, but the company is looking to entice consumers with discounts on a wide range of products and services. The Prime Day sales event is expected to generate a 12% year-on-year increase, reaching $12 billion in gross merchandise value for Amazon in the US.

Meta Platforms  (NYSE:GM) – Social media apps Instagram, Facebook, WhatsApp and Twitter rival Threads are back up and running after a brief outage that affected thousands of users on Monday. At the peak of the outage, over 14,000 users reported issues with Instagram, while Facebook, WhatsApp and Threads were also affected. Additionally, the Threads app reached over 100 million signups in just five days after launch, making it the fastest growing platform to reach this milestone. Meta plans to monetize Threads once it reaches 1 billion users.

Alphabet  (NYSE:GM) – Llion Jones, co-author of the influential Google article “Attention Is All You Need,” is leaving the company to launch his own startup. The article popularized the concept of transformers and its previous authors also founded startups. Jones is the latest of eight authors to leave Google.

Microsoft  (NYSE:GM) – Microsoft plans to cut more jobs in addition to the previously announced 10,000 layoffs. The new round of cuts will affect customer service, support and sales employees. While the exact number of layoffs has not been released, 276 workers in Seattle will lose their jobs. Microsoft stock has performed well this year.

Cisco Systems  (NYSE:GM) – Cisco Systems Inc. could face prosecution for allegedly aiding Chinese authorities in the religious persecution of Falun Gong followers, according to a US Court of Appeals ruling. The ruling heightens tensions between the US and China as the US Supreme Court considers the case.

Vedanta  (NYSE:GM) – Foxconn (NYSE:GM) has pulled out of a semiconductor joint venture with Vedanta, a setback for India’s chip-making plans. The decision was motivated by delays in the approval of incentives by the Indian government. This affects India’s ambitions to attract foreign investors to manufacture chips locally.

Astra Space  (NYSE:GM) – Astra Space announced a 1-to-15 reverse stock split plan and an open market offering of up to $65 million. The rollout is expected to take place by October 2, subject to board approval. Astra shares rose 4.3% on Monday.

Uber  (NYSE:GM) – Uber’s CFO Nelson Chai is planning to leave the company. Chai briefed CEO Dara Khosrowshahi on his intentions, but a decision has yet to be made on the timing of his departure. Uber is looking to cut costs despite its business recovery.

Rivian  (NYSE:GM) – Investors are buying bullish options on Rivian Automotive’s stock, propelling the electric vehicle maker’s share price to a nine-day streak of record gains. Options activity, including buying short-term calls, has contributed to rising stock prices. This tendency, known as “gamma squeeze”, has already been observed in other companies, such as Tesla and AMC. Rivian was the third most traded company on the US options market on Monday.

Stellantis  (NYSE:GM) – Stellantis and the Italian government have agreed to increase annual automotive production in Italy to one million units, reversing a downward trend. The company plans to introduce production of a fifth model at its Melfi factory as part of that effort. The objective is to create conditions to increase production in the coming years and boost Italy’s competitiveness in the automotive sector.

Ford  (NYSE:GM) – South Korean battery maker SK On is investing in its future despite facing ongoing financial losses. The company is partnering with Ford to build battery plants for electric cars in the US and plans an initial public offering within the next four years. While facing profitability challenges, SK On is focused on ensuring the quality of its products.

Carvana  (NYSE:GM) – Carvana shares have seen sharp declines compared to other dealerships, falling more than 90% from their 2021 peaks. an increase of 786%. While the exact number of EVs sold was not disclosed, this growth illustrates Carvana’s progress in this segment.

Boeing  (NYSE:GM) – Godrej Aerospace is in talks to manufacture aircraft parts for suppliers to Airbus (EADSY) and Boeing as airlines place record orders for jets. The company hopes to increase its supply chain and provide airframe components as well as maintenance services. Godrej Aerospace already exports components to General Electric (GE, GEOO34) and Rolls-Royce and is looking to expand its civil aviation business in India.

Berkshire Hathaway  (NYSE:GM) – Berkshire Hathaway Energy, the utilities and energy division of Berkshire Hathaway, has acquired an additional 25% interest in the Cove Point, Maryland, liquefied natural gas facility for $3. 3 billion. With this, its total stake in the plant reaches 75%. The transaction reflects Berkshire’s investment strategy, which includes businesses associated with fossil fuels. Berkshire Hathaway Energy is one of the largest electric utilities in the country and has other relevant investments in the energy sector.

Blackstone  (NYSE:GM) – An Australian court has approved a $300 million fine on Crown Resorts, operator of Blackstone-owned casinos, for violations of money laundering laws. The fine closes a dark chapter in the company’s history, which has faced allegations of poor governance. Crown said the court’s approval puts an end to historic failures related to money laundering and terrorist financing. This is Australia’s third highest corporate fine.

KKR  (NYSE:GM) – KKR & Co. is considering selling its majority stake in NVC Lighting, a commercial lighting manufacturer in China. The strategic review could result in a deal worth around $1 billion. KKR can also choose to hold the assets longer.

HSBC  (NYSE:GM) – Finance Canada has extended the consultation period for the proposed acquisition of the Canadian unit of HSBC by the Royal Bank of Canada due to a technical error. The deadline has been extended by 15 days and interested parties can submit comments until July 21st. The deal is subject to the approval of the Financial Department and the Directorate of Competition, and seeks to assess its impact on consumers and the stability of the banking sector.

Morgan Stanley  (NYSE:GM) – Morgan Stanley has hired Marco Caggiano, a former senior investment banker at JPMorgan  (NYSE:GM), as vice president of mergers and acquisitions. Caggiano spent 23 years at JPMorgan and led the bank’s M&A business in North America.

Wells Fargo  (NYSE:GM) – Dawson Her Many Horses, head of Native American Banking, has been promoted to managing director at Wells Fargo, becoming one of the first enrolled tribal members to reach that role at a major US bank. Wells Fargo has been looking to diversify its staff and conducted a racial equity audit last year.

 UBS  (NYSE:GM) – UBS has suspended its plans to establish a new mutual fund unit in China, opting to retain ownership of its existing joint venture with ICBC. The decision was made due to Chinese regulations that limit the number of fund management companies that a company can own.

Citigroup  (NYSE:GM) – Citigroup has downgraded its US stock rating to “Neutral” from “Overweight,” predicting a pullback in growth stocks and a recession in the fourth quarter. In contrast, the brokerage sees opportunities in discounted European equities and in the materials sector, driven by China’s economic growth. Emerging markets also received an “Overweight” rating.

Payoneer Global  (NYSE:GM) – Payoneer Global announced that it is reducing its workforce by 9%, resulting in approximately 210 affected positions. The company expects to save $20 million a year from the move and is weighing the positive impact on its 2023 outlook. Analysts forecast earnings of 12 cents per share and revenue of $815.7 million in 2023.

ADT Inc  (NYSE:GM) – ADT, the home security and alarm monitoring company, has announced that it will have to restate some financial results. ADT has found errors in its financial statements and plans to make the necessary changes as soon as possible. Cash flow was not affected. ADT shares ended Monday’s regular session up 2.3%.

Starbucks  (NYSE:GM) – Baristas at pro-union Starbucks will hand out flyers to customers during a bus tour of 13 US cities, urging them to organize protests at non-union coffee shops. The company faces accusations of unfair labor practices and deadlocked negotiations.

Femsa  (NYSE:GM) – Daniel Rodriguez Cofre, CEO of Coca-Cola Femsa, is stepping down to focus on treating colon cancer. President and former CEO José Antonio Fernandez Carbajal will take over as interim boss. The company has undergone strategic divestments, including the sale of shares in the Heineken Group and Jetro Restaurant Depot.

Constellation Brands  (NYSE:GM),  Anheuser-Busch InBev  (NYSE:GM) – Constellation Brands’ Modelo Especial continued as the top-selling beer brand in the US in June, surpassing Bud Light. Modelo Especial had an 8.7% share of retail beer sales, while Bud Light had 7%.

Ralph Lauren  (NYSE:GM) – Shares in Ralph Lauren (RL) hit their highest close in over a year on Monday, boosted by news that the brand will return to New York Fashion Week after a four-year hiatus. years. The move is part of the company’s strategic redirection to focus on luxury products, and investors have responded positively, boosting the stock’s performance. Additionally, Ralph Lauren beat earnings and sales estimates in its latest quarterly report, underlining the resilience of luxury demand. Analysts see continued growth potential for the brand.

Surf Air Mobility – Surf Air Mobility stock will begin trading on the New York Stock Exchange during the week of July 24, according to the electric aviation and regional air travel company. The company had initially set a July 11 date, but postponed it due to market conditions. Surf Air ended a previous merger agreement and has now opted for a direct listing.

WD-40  (NYSE:GM) – WD-40, a manufacturer of cleaners and lubricants, reported positive results for the third fiscal quarter, with earnings and sales beating analysts’ expectations. In addition, the company reaffirmed its guidance for the fiscal year and saw its shares rise 4% in premarket trading.

Novavax  (NYSE:GM) – Shares of vaccine maker Novavax jumped 30% on Monday after it announced it will receive $350 million from Canada to make up for missed vaccine doses. Payment will be made in two installments this year. This news is a boost for investors after a period of financial difficulties and a reduced workforce. Novavax is also working on three promising vaccine candidates.

Viridian Therapeutics  (NYSE:GM) – Shares in Viridian Therapeutics fell about 14.4% in premarket Tuesday, following the announcement that the biotech drug maker was making changes to its study design for a chronic therapy of thyroid eye diseases.

Better Therapeutics  (NYSE:GM) – Shares in Better Therapeutics are up 46.7% in premarket Tuesday after the company gained Food and Drug Administration (FDA) approval for its smartphone-based behavioral therapy for diabetes. The approval was considered a milestone not only for Better Therapeutics, but also for digital therapeutic prescriptions in general. However, challenges ahead include driving adoption and achieving payment coverage. The company plans to launch its AspyreRx therapy in the fourth quarter.

Charter Communications  (NYSE:GM) – Charter Communications announced that it plans to launch a new two-tier cable package system, allowing customers to choose a cheaper sports TV option without regional sports channels. The company is pursuing a more flexible approach to meeting customer demands and adapting to changing viewing habits.

Market view

Zillow Group  (NYSE:GM) – The Zillow Group received a rating upgrade from “Neutral” to “Overweight” by Piper Sandler, and the real estate services company’s stock price target was increased from $42 to $62 As a result, shares of Zillow rose 3.8% in premarket trade to hit $49.74.

SunPower  (NYSE:GM) – SunPower was down -1.2% after Deutsche Bank issued a “Catalyst Call: Sell” on the stock as a short-term investment idea, while maintaining a rating of “ Hold”.

Ford  (NYSE:GM)General Motors (NYSE:GM) – Wall Street is adjusting price targets for Ford and General Motors stock after a strong quarter of car sales. On Monday, analysts Dan Levy of Barclays and Colin Langan of Wells Fargo raised price targets for Ford and GM shares. Langan raised Ford’s target from $10 per share to $11, and GM’s price target to $32 from $31. Levy raised Ford’s target to $14 per share, and the GM price to $46 per share.