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Monday’s Wall Street Highlights: Palantir Technologies, Walmart, Yellow Corp, J&J, and more

Fernanda T
Latest News
July 31 2023 03:20AM

US Index Futures are trading mixed in the pre-market on Monday, awaiting a busy week of quarterly results, while European markets operate without defined direction reverberating economic indicators in the euro zone and in Germany.

By 6:54 AM, Dow Jones (DOWI:DJI) futures were up 44 points, or 0.12%. S&P 500 futures were up 0.09%, while Nasdaq-100 futures were down -0.01%. The 10-year Treasury yield is at 3.973%.

Investors in Europe reacted to the preliminary data of the Gross Domestic Product (GDP) of the euro zone, which registered a growth of 0.3% in the quarter and 0.60% in the year, beating expectations of 0.20% and 0.50 %, respectively. The consumer price index was also in line with forecasts, registering 5.3% in July.

These numbers are encouraging for the region, especially with regard to inflation, considering high energy costs due to the war in Ukraine and food prices due to supply uncertainties in the bloc.

However, retail sales in Germany disappointed analysts, falling by -0.8% in June, when an increase of 0.2% was expected. This drop indicates difficulties in the country’s recovery, still impacted by high inflation in the region.

In Asia, markets closed higher, boosted by the increase in China’s industrial purchasing manager index (PMI), reaching 49.3 in July, above expectations of 49. However, the services PMI fell to 51.5, below the forecast of 52.2. Despite the improvement in the manufacturing PMI, values ​​below 50 indicate a contraction in economic activity.

On Monday’s American economic agenda, investors will follow the Chicago PMI, at 09:45 am, for which the consensus expects a reading of 43. At 10:30 am, it will be the turn of the industrial activity index from the Federal Reserve of Dallas.

Elsewhere in commodities markets, West Texas Intermediate crude for September is up 0.94% at $81.34 a barrel. Brent crude for September is up 0.79% near $85.66 a barrel. Iron ore futures traded in Dalian, China, were up 0.54% at $117.67 a tonne. This appreciation occurred after a series of declines, which were motivated by uncertainties regarding the Chinese economy.

Stocks on Wall Street had a positive day on Friday, boosted by the upbeat tone about the economy and prospects for interest rates at the Fed. The Dow Jones closed with a gain of 176.55 points or 0.50%, at 35,459.29 points. The S&P 500 advanced 44.82 points or 0.99% to settle at 4,582.23 points, while the Nasdaq rose 266.55 points or 1.90% to 14,316.66 points. An easing of inflation was evidenced by the PCE deflator, while resilient household income figures reinforced the thesis of a soft landing in the US.

Ahead of Monday’s corporate results, traders are awaiting reports from SoFi Technologies (NASDAQ:SOFI), Symbotic (NASDAQ:SYM), Immungen (NASDAQ:IMGN), Aercap (NYSE:AER), CNA Financial (NYSE:CNA), Community Bank (NYSE:CBU), Apellis (NASDAQ:APLS), before the opening of the market. After closing, reports are expected from Arista Networks (NYSE:ANET), Avis Budget Group (NASDAQ:CAR), Diamondback Energy (NASDAQ:FANG), YumChina (NYSE:YUMC), Zoominfo (NASDAQ:ZI), Transocean (NYSE:RIG), among others.

Wall Street Corporate Highlights for Today

Apple  (NASDAQ:AAPL) – Apple is about to release the iPhone 15 and next generation watches. The changes will include an iPhone with the size of the bezel reduced around the screen to 1.5 millimeters. Pro models will have a new look with titanium and touch sensitive buttons. Apple will reveal its quarterly results on August 3rd.

Walmart  (NYSE:WMT) – According to the Wall Street Journal, on Sunday, Walmart acquired a major investor’s stake in Flipkart, the Indian e-commerce giant, for a reported $1.4 billion. This acquisition further consolidates the control of the American company over the e-commerce platform in India.

Novo Nordisk  (NYSE:NVO) – Novo Nordisk launched weight-loss drug Wegovy in Germany, its first major European market. Patients and doctors expect high demand for the weekly injections, despite public health plans not covering the drug due to a decades-old law. Wegovy has been successful in the US, where it sells at high prices.

Biogen  (NASDAQ:BIIB) – Biogen has agreed to acquire Reata Pharmaceuticals (NASDAQ:RETA) for nearly $6.5 billion to drive growth. Reata’s recently approved drug Skyclarys treats a rare genetic disorder. Biogen is also betting on the launch of the Alzheimer’s drug Leqembi. The deal values ​​Reata at about $7.3 billion.

Johnson & Johnson  (NYSE:JNJ) – A bankruptcy judge has rejected the second Chapter 11 filing filed by the healthcare giant. The company seeks to resolve numerous claims related to the talc in its products, with damage claims made by plaintiffs.

Yellow Corp  (NASDAQ:YELL) – Yellow Corp, a major trucking company, has closed its doors and is preparing to file for bankruptcy, according to the Wall Street Journal. The collapse puts around 30,000 jobs at risk. The company had struggled in recent years, and liquidation was widely expected.

Centene  (NYSE:CNC) – Centene is working to re-enroll people in Medicaid plans after the end of pandemic relief measures, resulting in members without coverage. The company lost about 260,000 Medicaid members in the second quarter, but it beat Wall Street estimates for profit for the period.

Chevron  (NYSE:CVX) – Goldman Sachs upgraded Chevron from “Neutral” to “Buy” with a price target of $187, although second-quarter profit was $6 billion, below the all-time high of US$ 11.6 billion from the previous year.

Ford Motor  (NYSE:F) – Ford Motor is recalling 870,000 F-150 trucks in the US due to the risk of unexpected activation of the electric parking brake caused by a possible wiring issue. The recall covers models from 2021 to 2023 and the automaker will carry out repairs to avoid the incident. There are no reports of accidents or related injuries.

Tesla  (NASDAQ:TSLA) – Tesla and Invest India are holding meetings with Indian officials that have been kept confidential, with discussions about creating a supply chain and allocating land for an electric vehicle factory. Many Indian states are keen to woo Tesla, but the automaker is focused on discussions with the federal government in New Delhi. These discussions represent a reversal after frustrations with efforts to reduce import taxes on electric vehicles. In other news, Texas police have investigated a fake call to 911 about an active shooter at the Tesla Gigafactory in Austin. Police checked the factory and found no threat or injuries. The origin of the call is under investigation.

Toyota  (NYSE:TM) – Toyota reported a 5.1% increase in global vehicle sales in the first half of 2023 compared to the same period in 2022. Japan sales were up 33.2%, US sales were down 0.7 % and Asia fell by 0.5%. Sales in China fell 2.8% from January to June. In June, global sales grew by 10%. Sales of hybrid electric vehicles increased by 37.6%. In June, Toyota sold 10,191 battery electric vehicles worldwide. Toyota will step up its electric vehicle technology development in China to face growing competition in the world’s largest auto market. The automaker will also seek to reduce manufacturing costs, develop local suppliers and achieve carbon neutrality.

Sigma Lithium  (NASDAQ:SGML) – Sigma Lithium is working with Bank of America  (NYSE:BAC) to coordinate negotiations with potential buyers. The company started production on a project in Brazil to meet demand, amid a shortage of lithium. Tesla  (NASDAQ:TSLA) has also been identified as a possible interest, but Sigma is looking for strategic alternatives to strengthen its environmentally competitive position .

Southwest Airlines  (NYSE:LUV) – Southwest Airlines has exercised options to take delivery of 30 Boeing 737 MAX 7 airplanes next year and has converted 24 MAX 7 orders to the MAX 8 following delivery delays from Boeing (NYSE:BA). The move seeks to mitigate the impact of delays and the company plans to fly the MAX 7 in 2024.

Signature Bank  (NASDAQ:SBNY) – The Federal Deposit Insurance Corporation (FDIC) of the United States has initiated the sale of an $18.5 billion loan portfolio of Signature Bank, consisting of 201 capital call loans linked to large private equity and investment, such as Starwood Capital Group, Carlyle Group, Blackstone, Thoma Bravo and Brookfield Asset Management. The sale was launched in July and is limited to FDIC-insured depository institutions.

Morgan Stanley  (NYSE:MS) – US equities are following a similar trajectory to 2019, the year of a strong rally in the S&P 500, driven by Fed policies, according to Michael Wilson of Morgan Stanley. The market is still waiting for more positive indicators before adjusting projections, considering the current high level of the market multiple and the Fed’s inflation targets. In other news, Morgan Stanley has tapped Gillian Sheldon into a leadership role at its British investment bank, amid notable departures from Credit Suisse since its emergency takeover by UBS Group AG (NYSE:UBS).

Goldman Sachs  (NYSE:GS)Sixth Street (NYSE:TSLX) – Goldman Sachs executive Julian Salisbury will join Sixth Street as a partner and co-chief investment officer early next year. With over 25 years of experience, he has managed billions of dollars in Goldman assets. The move marks yet another notable exit from Goldman as the company looks to expand its asset management. In other news, Goldman Sachs has revised its global oil demand forecast, keeping its 12-month Brent price at $93 a barrel. They see solid demand leading to larger-than-expected deficits in the second half of this year and into 2024. Oil prices have remained near three-month highs on expectations of production cuts in Saudi Arabia. The bank forecasts higher prices next year, but idle OPEC capacity and US oil production could limit price increases.

Wells Fargo  (NYSE:WFC) – The Texas Attorney General’s Office is investigating Wells Fargo’s policies related to the firearms industry to determine whether it discriminates against gun business entities or associations. The decision will be taken by August 25th, and may affect the bank’s public bond offerings. Citigroup  (NYSE:C) has also previously faced similar allegations .

UBS Group AG   (NYSE:UBS) – Following the merger with Credit Suisse, UBS faces exits in its equity division in Hong Kong. At least six Credit Suisse bankers have left, including market chiefs. UBS announced a new leadership structure, leading to role changes and some departures.

Coinbase  (NASDAQ:COIN) – The U.S. Securities and Exchange Commission (SEC) requested that Coinbase suspend trading of all cryptocurrencies except bitcoin before prosecuting it in June, according to CEO Brian Armstrong. The SEC accused Coinbase of operating illegally for not registering as an exchange and for trading unregistered securities. Coinbase deemed it an “easy” choice to champion the crypto industry in the US.

MetLife  (NYSE:MET) – Singaporean insurer Great Eastern Holdings Ltd is in talks to acquire the Malaysian venture of MetLife Inc. The Oversea-Chinese Banking Corp subsidiary is conducting due diligence on AmMetLife Insurance Bhd. A transaction can be worth between $250 million and $300 million. Negotiations are still ongoing and could face delays or fall apart. AmMetLife offers life insurance and property protection services and reported approximately $68 million in gross premiums earned in the six months ended September 30. Great Eastern operates in several regions and has been interested in acquiring the unit since last year.

Fox  (NASDAQ:FOX) – Fox and Flutter Entertainment plan to shut down their sports betting business, Fox Bet, starting next month. Flutter will retain the customer database and market access agreements, while Fox will retain brand rights and the option to purchase a stake in FanDuel. An announcement about the closure can be made on July 31st. The relationship between the companies changed when Star Group, Fox’s partner in the launch of Fox Bet, was acquired by Flutter.

Vodafone  (NASDAQ:VOD) – Telefonica has approached Vodafone about a possible deal involving broadband networks in Spain, presenting several proposals in negotiations in recent months. The new CEO of Vodafone, Margherita Della Valle, has launched a strategic review for the Spanish operation, considering the total or partial sale of the business. Vodafone has been looking to shed assets in Spain due to strong competition, but would face antitrust hurdles due to its size in the country.

Pinterest  (NYSE:PINS) – Pinterest shares hit a year high in July, driven by improving advertising prospects. Analysts are bullish, with 45% giving Buy ratings. Co-founder Evan Sharp and other insiders profited by selling shares, raising some questions about the timing of the sales. Pinterest is due to report its second-quarter results on Tuesday.

Palantir Technologies  (NYSE:PLTR) – Shares in Palantir Technologies were up 5.2% in premarket Monday after a 10% gain on Friday when Wedbush began covering the software maker with a Outperform rating and $25 price target.

SoFi Technologies  (NASDAQ:SOFI) – On Monday, SoFi Technologies is expected to report a loss of 7 cents a share and adjusted net income of $474 million for the second quarter. Its shares have gained 69% since May, boosted by the prospect of student loan refinancing. Analysts have mixed opinions about the company, with some worried about refinancing expectations. SoFi, founded in 2011, started as a lender focused on student debt and is now a full-service bank.