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Visa Faces Monopoly Lawsuit; Meta Introduces Celebrity Voices for Chatbot; Stellantis on the Hunt for New CEO

Fernanda T
Latest News
September 24 2024 6:15AM

Visa (NYSE:V) – The US Department of Justice is suing Visa, accusing the company of illegally monopolizing the debit card market. The lawsuit, which will take place in federal court, is based on the company’s anti-competitive behavior. The investigation began in 2021 to determine whether Visa prevents competition. Shares fell 1.8% in pre-market trading after closing up 1.4% on Monday.

Meta Platforms (NASDAQ:META) – Meta plans to announce deals with celebrities like Judi Dench, Kristen Bell, and John Cena to voice its Meta AI chatbot. The announcement will be made during the Connect conference, where the company will also unveil new augmented reality glasses. Celebrity voices will begin rolling out this week. Shares rose 0.7% in pre-market trading after closing up 0.6% on Monday.

Stellantis (NYSE:STLA) – Stellantis has begun the search for a successor to CEO Carlos Tavares, whose contract ends in January 2026. Tavares, who has led the company since its inception, faces pressure to improve operations in North America, where the automaker is experiencing significant drops in sales and profits. The company plans to cut vehicle inventories and prices. Stellantis also denied breaching commitments with the United Auto Workers (UAW) regarding a 2023 agreement, as the union prepares for a strike. UAW President Shawn Fain accused the company of delays in investments, especially in a new battery plant in Illinois and production of the Dodge Durango SUV. Additionally, Stellantis partnered with Leapmotor to start taking orders in Europe for an urban car and SUV, expanding its low-cost electric vehicle lineup. The T03 model will launch from €18,900, while the C10 SUV will be available in October at €36,400. Shares rose 1.2% in pre-market trading after closing up 3.0% on Monday.

Apple (NASDAQ:AAPL) – Last Friday, Apple’s stock initially looked promising but dropped more than 2% before the close, surprising the market. A large imbalance of sell orders indicated the disposal of 30 million shares, possibly due to funds taking advantage of the quarterly adjustment to sell. Shares rose 0.6% in pre-market trading after closing down -0.8% on Monday.

Constellation Energy (NASDAQ:CEG) – Jefferies analysts provided estimates on Microsoft’s payment to Constellation Energy, highlighting the growing demand for clean energy to power data centers and AI technologies. They estimated that Microsoft will pay Constellation between $110 and $115 per MWh in a 20-year PPA related to the Three Mile Island plant. Joe Dominguez, CEO of Constellation Energy, stated that to meet the growing electricity demand for AI, the US must adopt a similar approach to China, building data centers near power plants to avoid long transmission lines due to infrastructure shortages.

Vistra Corp. (NYSE:VST) – Vistra’s shares have outperformed Nvidia in the S&P 500, up 180% this year. Interest focuses on the potential of nuclear energy to meet the growing demands of data centers, especially after Constellation signed a 20-year deal with Microsoft. Shares rose 3.5% on Monday.

Microsoft (NASDAQ:MSFT) – Microsoft hired new cybersecurity executives after a series of breaches, including US government veterans, according to Bloomberg. The company holds weekly meetings to reinforce its Secure Future Initiative, aiming to improve software security. CEO Satya Nadella emphasized the importance of prioritizing security across all products, despite pressure for rapid innovations. Shares were stable in pre-market trading after closing down -0.4% on Monday.

Ciena (NYSE:CIEN) – Ciena shares closed up 5.0% on Monday after Citi upgraded its rating from “Sell” to “Buy,” forecasting a return to growth. The stock’s price target was raised from $44 to $68. Analysts expect demand in the telecommunications sector to improve, benefiting the company. Shares rose 0.2% in pre-market trading.

OpenAI – OpenAI reported that its X account was compromised on Monday when a hacker posted fraudulent messages about a fake cryptocurrency token linked to the company. OpenAI’s security team had already warned internally about a rise in employee account breaches.

Cloudflare (NYSE:NET) – Cloudflare CEO Matthew Prince stated that the company did not help Elon Musk’s X evade a ban in Brazil nor supported regulators in restoring the block. X briefly went back online after a technical change, but Prince denied any collaboration with Brazilian authorities. Shares closed up 3.8% on Monday.

Trump Media & Technology Group (NASDAQ:DJT) – Trump Media & Technology Group’s shares fell 10.3% on Monday, hitting a new low after insider trading restrictions ended. With six consecutive days of decline, the company’s market capitalization is $2.38 billion, reflecting significant losses since its March debut. Shares rose 1.2% in pre-market trading.

Telegram – Telegram CEO Pavel Durov announced that the platform will begin providing users’ IP addresses and phone numbers to authorities in response to valid legal requests. This change, following his arrest in France, represents a new approach to avoid abuses and improve content moderation.

Qualcomm (NASDAQ:QCOM) – Analysts from TECHnalysis Research and Bernstein expressed skepticism about Qualcomm’s acquisition of Intel, suggesting the acquisition could accelerate its diversification but also burden the company with an underperforming manufacturing unit. Furthermore, the merger would face stringent global antitrust scrutiny as it would combine two large chipmakers, complicating the sector’s current crisis. Shares rose 0.9% in pre-market trading after closing down -1.75% on Monday.

Boeing (NYSE:BA) – Boeing made a final wage offer to striking workers, offering to reinstate a performance bonus, improve retirement benefits, and double the ratification bonus to $6,000. The union refused to put it to a vote, stating the proposal was not negotiated and did not meet members’ demands for a 40% wage increase. Shares fell 0.2% in pre-market trading after closing up 2.0% on Monday.

Spirit AeroSystems (NYSE:SPR) – Spirit AeroSystems is investigating its parts record-keeping after discovering missing and duplicate documents, representing 4% of all records since 2010, measured by coordinate measuring machines (CMM). So far, no safety issues have been identified. The company notified affected customers and plans to automate production and report storage to avoid human error.

StandardAero – StandardAero, backed by the Carlyle Group and Singapore’s sovereign wealth fund GIC, seeks a valuation of up to $7.54 billion in its US initial public offering (IPO). The company, which provides maintenance services for aerospace engines, plans to sell 46.5 million shares between $20 and $23.

Toyota Motor (NYSE:TM) – Toyota faces a proposed class-action lawsuit in the US, accused of emissions fraud in nine forklift engines. Buyers claim the automaker altered software and swapped engines during emissions testing, resulting in misleading performance. Additionally, Toyota increased its share buyback to ¥1.2 trillion ($8.3 billion), driven by strong demand in its core markets. The automaker added ¥200 billion to the original plan, anticipating repurchasing up to 3.93% of its shares. Shares fell 0.9% in pre-market trading after closing up 0.7% on Monday.

Tesla (NASDAQ:TSLA) – Next week, Tesla’s delivery numbers could bring an optimistic dynamic to Wall Street, with bullish investors more positive. Outperforming deliveries could boost the stock, which has risen 36% in the last three months. Despite challenges in Europe, performance in China and the introduction of the Cybertruck are promising. Investors are also eyeing Robotaxi Day in October. Shares rose 1.8% in pre-market trading after closing up 4.9% on Monday.

Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Hess (NYSE:HES), BP plc (NYSE:BP), Shell (NYSE:SHEL) – US oil producers began evacuating employees from platforms in the Gulf of Mexico due to the forecast of a second major hurricane in two weeks. The National Hurricane Center warned that a tropical cyclone in the Caribbean could intensify, bringing winds up to 185 km/h. Companies like BP, Chevron, and Shell have already halted some production and evacuated personnel. Meanwhile, the US Federal Trade Commission is expected to approve Chevron’s $53 billion acquisition of Hess this week, a deal facing resistance from Exxon Mobil. Exxon is contesting the deal, claiming preference rights over assets in Guyana, with a decision expected in August 2025. Additionally, California and environmental groups sued Exxon Mobil, accusing the company of contributing to global plastic pollution and misleading the public about recycling efficacy. Hess shares rose 3.2% in pre-market trading, while Exxon shares rose 0.6%.

Petrobras (NYSE:PBR) – Petrobras plans to invest in converting corn or sugarcane ethanol into sustainable aviation fuel. The company is seeking a location for a new plant that will serve both domestic and international markets. Additionally, Petrobras is retrofitting its refineries to produce biofuels as part of a $16.7 billion investment through 2028. Shares rose 0.8% in pre-market trading after closing up 1.2% on Monday.

Equinor ASA (NYSE:EQNR) – Equinor ASA secured all major contracts for a large natural gas project off Brazil’s coast, with production expected by 2028. CEO Anders Opedal said suppliers have been secured to build a floating production vessel and install subsea infrastructure. The project, named Raia, will cost around $9 billion and could meet 15% of Brazil’s demand. Shares rose 1.7% in pre-market trading after closing up 1.6% on Monday.

JPMorgan Chase (NYSE:JPM) – JPMorgan is optimistic about India, highlighting its broad growth and business opportunities, especially in the commercial banking sector, with expectations of up to a 30% increase. The bank also sees potential in Japan, due to positive interest rates, and in Southeast Asia, benefiting from the “China Plus One” strategy, diversifying investments and supply chains.

HSBC Holdings Plc (NYSE:HSBC) – HSBC aims to increase its participation in infrastructure financing to support AI implementation, according to Gerry Keefe, co-head of global banking coverage. The bank will focus on this area over the next two years, aligning with initiatives from major companies like BlackRock and Microsoft. Shares rose 1.1% in pre-market trading after closing up 2.0% on Monday.

Bank of America (NYSE:BAC) – Bank of America plans to open more than 165 branches in the US by 2026, focusing on in-person sales of products like mortgages and investments. Although the bank has reduced its total number of branches, it invested $5 billion in renovations, with 40 new branches planned for this year. Shares rose 0.1% in pre-market trading after closing down 1.0% on Monday.

Morgan Stanley (NYSE:MS) – Morgan Stanley advised investors to shift from a defensive stance to focus on large-cap companies with solid fundamentals. Although defensive stocks have appreciated, they are expensive compared to earnings. The bank recommends quality stocks, including members of the Magnificent Seven.

BlackRock (NYSE:BLK) – Italy approved BlackRock as a shareholder with over 3% in defense group Leonardo, according to a document submitted by Prime Minister Giorgia Meloni’s office to parliament. The government imposed unspecified conditions, but BlackRock may need to reduce its stake due to the company’s internal rules limiting external investors, according to Reuters.

Blackstone (NYSE:BX), Smartsheet (NYSE:SMAR) – Vista Equity Partners and Blackstone are nearing a deal to acquire Smartsheet, making concessions to private creditors. They will include safeguards in a $3.2 billion debt package to address concerns over controversial asset transfers. The transaction could value Smartsheet at around $8 billion.

Brookfield Asset Management (NYSE:BAM) – The UAE’s Masdar announced its acquisition of Spain’s Saeta Yield SA from Brookfield Asset Management for around $1.3 billion. This is Masdar’s second clean energy deal in Spain in months, aiming to expand its investments in renewable projects. Saeta has 745 megawatts of assets and projects under development in Spain and Portugal.

Coinbase Global (NASDAQ:COIN) – Coinbase and the SEC clashed in a federal appeals court in Philadelphia, with Coinbase pushing for new digital asset rules. The exchange sued the SEC after its regulatory petition was denied, arguing that the agency doesn’t provide clarity on how to operate legally. The SEC defends that current regulations are adequate. Shares rose 1.1% in pre-market trading after closing up 0.1% on Monday.

Nike (NYSE:NKE) – Nike shares fell 0.4% on Monday after JPMorgan warned of potentially weak quarterly results. Analyst Matthew Boss placed the stock under “negative catalyst watch” and cut the earnings estimate to 48 cents, below consensus, while the revenue forecast was also reduced. Shares, down 21% this year, rose 0.8% in pre-market trading.

PVH Corp (NYSE:PVH) – China will open an investigation into PVH, the parent company of Calvin Klein and Tommy Hilfiger, over potential market-related violations concerning Xinjiang products. The company has 30 days to submit documents on any “discriminatory measures” taken over the past three years. The ministry also accuses PVH of “unjustly boycotting” cotton from the region.

Levi Strauss (NYSE:LEVI) – According to the Financial Times, Levi Strauss’s current target of reaching $9 billion to $10 billion in revenue by 2027 is likely to be delayed.

Ulta Beauty (NASDAQ:ULTA) – Ulta Beauty was downgraded by TD Cowen due to increasing competition and lack of execution. While the company continues to lead the sector, investments in exclusives and in-store experiences are necessary, which could pressure its margins in the short term. Shares closed down 2.0% on Monday.

Tempur Sealy International (NYSE:TPX) – Tempur Sealy announced plans to sell stores to gain regulatory approval for its $4 billion merger with Mattress Firm. The company plans to sell 73 Mattress Firm stores and 103 Sleep Outfitters locations, along with seven distribution centers, in response to concerns over prices and jobs.

Novo Nordisk (NYSE:NVO) – Novo Nordisk CEO Lars Fruergaard Jorgensen said that the diabetes drug Ozempic will be available for price negotiations with the US government in less than a year. During a Senate hearing, he noted that net prices of Ozempic and Wegovy have fallen by about 40% since their launches, with further reductions expected. Shares rose 0.8% in pre-market trading after closing down -3.0% on Monday.

Biohaven (NYSE:BHVN) – Biohaven shares closed up 13.7% on Monday after the company reported that its treatment, troriluzole, slowed the progression of spinocerebellar ataxia by 50% to 70% during a clinical trial. Biohaven plans to file for US regulatory approval in Q4, aiming to treat a condition currently without approved options.