S&P 500 futures are down three points, trading 0.1% below fair value. Nasdaq 100 futures are down seven points, also 0.1% below fair value. Dow Jones Industrial Average futures are down 40 points, trading 0.1% below fair value.
Stock futures suggest a lower open due to rising Treasury yields and political uncertainty abroad. The 10-year note yield has increased by three basis points to 4.46%.
European markets are down after weekend elections showed more support for right-leaning parties, and French President Macron called a snap election for late June or early July.
Commodity futures are on the rise:
- WTI crude oil futures up 1.0% to $76.26/bbl
- Natural gas futures up 4.2% to $3.04/mmbtu
- Copper futures up 1.0% to $4.53/lb
In corporate news:
- KKR (KKR) up 8.2% to $106.00, CrowdStrike (CRWD) up 6.0% to $369.95, and GoDaddy (GDDY) up 2.9% to $143.36: all to join S&P 500
- NVIDIA (NVDA) down 0.2% to $120.64: begins trading after a 10-for-1 stock split
- Apple (AAPL) up 0.4% to $197.64: will announce new AI features at WWDC today
- Tesla (TSLA, Financial) down 0.2% to $177.10: Norway's wealth fund to vote against CEO Elon Musk's pay package
- Southwest (LUV, Financial) up 8.5% to $30.11: Elliott aims to take a $2 billion stake
- Boeing (BA) down 0.4% to $189.49: will report aircraft deliveries this week, potential impact on credit outlook
Reviewing overnight developments:
Today's News
Advanced Micro Devices (AMD, Financial) took a hit on Monday as Morgan Stanley downgraded the semiconductor company, citing overly high investor expectations for its AI business. The downgrade led to a 2.3% drop in AMD shares during premarket trading. Analysts noted that AMD appears expensive relative to other large-cap AI plays like Nvidia (NVDA) and Broadcom (AVGO).
Nevada Copper (NEVDF, Financial) filed for Chapter 11 bankruptcy after failing to secure funding or a change of control transaction. The company received a $60M commitment in DIP financing to maintain liquidity through the restructuring period, while also appointing Tom Albanese as Chairman and announcing the resignation of CEO Randy Buffington.
Southwest Airlines (LUV, Financial) surged nearly 6% after activist investor Elliott Investment Management accumulated an almost $2B stake in the airline. Elliott Management plans to push for strategic changes within the company.
Diamond Offshore Drilling (DO, Financial) saw a 7% rise in its stock price following Noble's (NE) announcement of plans to acquire the firm in a cash and stock deal. The acquisition will create a fleet of 41 rigs, with Diamond shareholders receiving 0.2316 shares of Noble and $5.65 per share in cash.
AgriFORCE Growing Systems (AGRI, Financial) jumped 43% in early trade after securing a new U.S. patent for its innovative plant production technology. The patent covers moving multiple production lines within a growing facility using conveyor belts and other mechanisms.
Adobe (ADBE, Financial) shares fell 1.1% in premarket trading after Melius downgraded the company due to challenges in the broader enterprise software industry related to artificial intelligence. The downgrade reflects concerns over increased competition and pricing pressures in the AI space.
Royal Bank of Canada (RY, Financial) announced a normal course issuer bid to repurchase up to 30M shares for cancellation. The repurchases, approved by the Toronto Stock Exchange and OSFI, will begin on June 12 and continue until June 11, 2025.
Moderna (MRNA, Financial) reported positive results for its investigational combination vaccine targeting both COVID-19 and influenza. The vaccine showed higher immune responses in adults 50 years and older compared to existing vaccines in a Phase 3 trial.
Raytheon Technologies' (RTX, Financial) business unit, Raytheon, secured a $677M contract to produce AN/SPY-6(V) radars for the U.S. Navy. This is the third option exercised from a larger $3B contract awarded in March 2022, bringing the total number of radars under contract to 38.
Perion Network (PERI, Financial) saw a 20% drop in its stock price after updating its Q2 and FY 2024 financial guidance below estimates. The revised guidance follows Microsoft Bing's decision to exclude certain publishers from its search distribution marketplace.
Tesla (TSLA, Financial) CEO Elon Musk announced that there will be no refreshed Model Y this year, countering rumors about an imminent update. Musk emphasized that Tesla continually improves its cars, making even newer models slightly better.
Office Properties Income Trust (OPI, Financial) extended the expiration of its private exchange offer to June 17, 2024. The offer involves exchanging existing notes for new 9.000% senior secured notes due 2029, along with issuing 1.43M shares of OPI common stock to noteholders.
Five Japanese automakers, including Toyota (TM, Financial) and Honda (HMC, Financial), were accused of falsifying vehicle safety test data. The scandal has led to a suspension of shipments until compliance is confirmed by the Japanese transport ministry.
DraftKings (DKNG, Financial) was named a top pick by Morgan Stanley in the North America gaming and lodging sector. The firm sees positive catalysts for the sports betting giant, despite recent tax headlines from Illinois.
Cognizant Technologies (CTSH, Financial) is set to acquire digital engineering firm Belcan for nearly $1.3 billion. The acquisition aims to expand Cognizant's footprint in the aerospace, defense, space, and automotive sectors.
