Goldman Sachs Raises S&P 500 Forecast for 2024; Disney Secures Deadpool & Wolverine in Chinese Cinemas, and More

Walt Disney (NYSE:DIS) – Disney managed to secure the release of Deadpool & Wolverine in Chinese cinemas in July, after previous restrictions. This move increases Disney’s revenue potential as American films often generate more revenue in China than in the US. Additionally, Pixar’s Inside Out 2 grossed an impressive $155 million on its opening weekend in the US and Canada, surpassing Dune: Part Two as the year’s biggest opening. With a global total of $295 million, it marks the highest opening weekend for an animated film in history.

Goldman Sachs (NYSE:GS) – Goldman Sachs raised its forecast for the S&P 500 index in 2024 to 5,600, citing strong earnings growth from five major technology companies and a higher price-earnings multiple. Microsoft, Nvidia, Google, Amazon.com, and Meta Platforms, which now represent 25% of the S&P 500, drove this revision.

UBS Group AG (NYSE:UBS) – UBS expects to record a provision of around $900 million to address losses in Credit Suisse funds related to the bankrupt Greensill Capital. This move follows UBS’s acquisition of Credit Suisse after significant financial troubles for the latter.

Deutsche Bank AG (NYSE:DB) – Deutsche Bank agreed to acquire $1.8 billion in aviation loans from NordLB, part of NordLB’s strategic move to exit the sector and focus on renewable energy financing. The deal, following a bidding process, is expected to close by the second half of 2024.

Barclays (NYSE:BCS) – The UK’s Prudential Regulation Authority (PRA) is pressuring Barclays to review its exposure to leveraged finance as part of a comprehensive investigation into the risks associated with the private equity sector, valued at approximately $8 trillion globally in 2023, a significant increase from around $2 trillion in 2013. The review includes an independent report to examine this exposure in detail. Additionally, Barclays suspended its sponsorship of Live Nation’s music festivals in the UK, such as Latitude and Download, after protests related to the bank’s alleged ties to the Israel-Hamas conflict. This followed pressure from pro-Palestinian artists and activists for the bank to cut ties with defense companies linked to Israel.

Carlyle Group (NASDAQ:CG) – Carlyle has hired advisors to explore the sale of Cogentrix, valuing the power producer at up to $3 billion to $4 billion. This move is part of a broader strategy to divest energy assets while the public sector attracts increasing interest due to technological advances and energy demand. Additionally, Carlyle and KfW are negotiating to acquire a majority of Thyssenkrupp Marine Systems, reflecting growing interest in defense assets in post-war Ukraine Europe. The deal could strengthen Germany’s position in the military sector and spur future industry consolidations..

Apple (NASDAQ:AAPL) – Apple is taking a gradual approach to launching its new artificial intelligence service, avoiding past issues. Highlights include advances with the Vision Pro, a new iPad Pro that could influence future thinner iPhones, a partnership with OpenAI, and a satellite messaging service that will soon become paid.

Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META) – Apple and Meta are likely to face EU charges for failing to comply with the rules of the Digital Markets Act, which aims to limit their market power. The charges, prioritizing Apple, are expected to be presented before summer, highlighting practices deemed anticompetitive.

Meta Platforms (NASDAQ:META) – Meta delayed the launch of its Meta AI chatbot in Europe after regulators requested a halt to plans to train its language model with local user posts. The company argues that without local data, the experience would be subpar, affecting AI innovation and competition on the continent.

Microsoft (NASDAQ:MSFT) – Microsoft plans to invest $7.16 billion (approximately €6.69 billion) in new data centers in the Aragón region of Spain over 10 years. This expansion aims to leverage the region’s abundant renewable energy infrastructure, rivaling Amazon’s AWS plans in the same area. Wedbush analysts raised Microsoft’s price target from $500 to $550, citing positive customer reception to growing monetization of services like Copilot and Azure. Microsoft rose 0.3% to $443.84 in pre-market trading.

Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) – European industrial groups have warned that the EU’s cybersecurity certification scheme (EUCS) for cloud services should not discriminate against large companies like Amazon, Alphabet (Google), and Microsoft. Discussions are ongoing to amend the scheme, which aims to select secure and reliable cloud providers, promoting non-discriminatory practices.

Alphabet (NASDAQ:GOOGL) – Alphabet CEO Sundar Pichai testified that there was never any intention to buy Ozy Media for any amount. Ozy co-founder Carlos Watson is accused of fraud for lying about Google’s interest in the acquisition, resulting in fraudulent investments in the media startup. In other news, Google will face a trial over antitrust charges in the US, rejecting a motion to dismiss the case without trial. Judge Leonie Brinkema scheduled the trial for September 9, while Google seeks to clarify allegations of illegal monopolization in the digital advertising market.

Autodesk (NASDAQ:ADSK) – Activist investor Starboard Value acquired a stake of approximately $500 million in Autodesk, seeking changes at the software company. Starboard met with executives to propose board changes, criticizing Autodesk for not disclosing its internal investigation earlier. Autodesk shares have fallen 7% this year.

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) – According to Bloomberg, the strategy of arbitrage by buying TSMC shares in Taipei and short-selling its American Depositary Receipts (ADRs) in the US is becoming painful. ADRs are trading at a significant premium of about 21%, driven by global enthusiasm for artificial intelligence, complicating this arbitrage strategy.

Vodafone Group Plc (NASDAQ:VOD) – Vodafone plans to sell its stake in Indus Towers Ltd., potentially raising over $2 billion. The sale could include all or part of its 21% stake in the Indian tower company, formed in partnership with Bharti Airtel Ltd. and Idea Cellular in 2007.

Toyota Motor (NYSE:TM) – At Toyota’s Annual General Meeting (AGM), Chairman Akio Toyoda faces governance challenges following certification scandals. Despite advisory firms like ISS and Glass Lewis recommending his non-reelection due to governance concerns, Toyoda is expected to be reelected due to shareholder support, according to Reuters.

General Motors (NYSE:GM) – General Motors leads the US auto stocks market in 2024, driven by profit improvements and a massive $16 billion share buyback strategy. While other companies like Tesla and Ford face challenges, GM stands out with projected profit growth and capital returns to shareholders.

Tesla (NASDAQ:TSLA) – Tesla will use the strong support received for CEO Elon Musk’s $56 billion pay package in a recent vote to argue in a Delaware court that the 2018 deal should be validated. This package is considered the largest corporate compensation in history. However, Tesla shares remain volatile, falling 27% this year due to intense competition and production challenges. The company seeks to maintain its position with new models and a focus on AI technology. In China, Shanghai is allowing 10 Tesla vehicles to test the company’s most advanced autonomous driving software, aiming for its release. Tesla will also conduct software repairs on 5,836 imported cars in China starting in July, addressing safety issues. In other news, Lindsay Short sued Neuralink, alleging she was forced to work with monkeys infected with the Herpes B virus without adequate protection. She accuses the company of gender discrimination, wrongful termination, and retaliation after reporting her pregnancy, highlighting a hostile work environment and dangerous conditions.

Stellantis NV (NYSE:STLA) – Stellantis NV reversed its remote work policy for automotive engineers, bringing them back to the office at least three days a week. CEO Carlos Tavares initially supported remote work to cut expenses but now sees the need for physical collaboration to accelerate new vehicle projects.

Boeing (NYSE:BA) – Boeing’s Starliner, after facing technical challenges during its mission to the International Space Station, is scheduled to return to Earth with NASA astronauts on June 22. This inaugural crewed flight is crucial to certify the spacecraft for future space missions, despite technical setbacks during its stay on the ISS. In other related news, Boeing informed suppliers of a three-month delay in a key production milestone for its 737 jets, from June to September, due to ongoing challenges affecting production, including regulatory scrutiny and supply constraints. Senator Chuck Grassley is launching a new inquiry into Boeing and the Federal Aviation Administration (FAA) following an emergency involving an Alaska Airlines Boeing 737 MAX 9. Grassley demands explanations for safety failures and corrective measures, while Boeing faces multiple investigations and pressures for management reforms. The FAA is also investigating the use of falsified documents to verify the authenticity of titanium in recently manufactured Boeing and Airbus aircraft. This led Boeing to issue a bulletin on vigilance against fake records, affecting a small number of parts with no impact on safety, while Spirit AeroSystems (NYSE:SPR) removed affected parts from its production.

Southwest Airlines (NYSE:LUV) – On Friday, it was reported that in April a Southwest Airlines flight nearly hit the ocean during a landing attempt in Hawaii, after adverse weather conditions caused a rapid descent. The Boeing 737 Max 8 was saved by a crew maneuver, reversing a sharp drop in altitude. Aviation safety authorities are also investigating a Southwest Airlines flight between Phoenix and Oakland that experienced an unusual pitch on May 25, possibly due to a damaged backup power control unit. The Boeing 737 Max 8 landed without incident after experiencing a movement known as “Dutch roll” at 34,000 feet. After the incident, damage was found in a backup power unit and structural components.

Novo Nordisk (NYSE:NVO) – Novo Nordisk CEO Lars Jorgensen will voluntarily testify at a US Senate hearing on the high prices of weight loss drugs Ozempic and Wegovy. The hearing, initially set to require a subpoena, will now proceed without this need, as announced by Senator Bernie Sanders.

Gilead Sciences (NASDAQ:GILD) – Gilead Sciences is advancing in the obesity drug market with its candidate GS-4571. Promising results in preclinical trials, including significant weight loss in monkeys, are eagerly awaited at the American Diabetes Association conference. This marks an important diversification beyond HIV, targeting a global market valued at over $100 billion by 2028.

Coca-Cola (NYSE:KO), Starbucks (NASDAQ:SBUX) – Coca-Cola and Starbucks are seeking new registrations of their trademarks in Russia to protect their intellectual property rights after exiting the country due to Moscow’s invasion of Ukraine in 2022. These measures aim to maintain brand protection while not operating commercially in the region.

Cava Group (NYSE:CAVA), Chipotle Mexican Grill (NYSE:CMG) – The IPO of Cava Group, a Mediterranean food restaurant operator, has surged more than 300% since June 2023, reaching a market valuation of over $10 billion, equivalent to about $33 million per restaurant. This significantly surpasses Chipotle’s initial per-restaurant valuation after its first year on the public market. Cava’s success reflects market demand for fast-casual concepts with rapid growth, although some analysts express concerns about overvaluation.

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