The S&P 500 futures are up three points, trading 0.1% above fair value. Nasdaq 100 futures are down 29 points, trading 0.1% below fair value. Dow Jones Industrial Average futures are up 100 points, trading 0.2% above fair value.
Early trading shows mixed results. There's no strong movement from buyers or sellers after a good run for major indices this month.
The 10-year note yield is up one basis point to 4.27%, and the 2-year note yield is up two basis points to 4.75%.
There's no significant US economic data today. Tuesday's calendar includes:
- 9:00 ET: April FHFA Housing Price Index (previous 0.1%) and April S&P Case-Shiller Home Price Index (expected 6.9%; previous 7.4%)
- 10:00 ET: June Consumer Confidence (expected 100.0; previous 102.0)
In corporate news:
- Apple (AAPL, Financial) is up 0.1% as the EU commission sends preliminary findings and opens another investigation under the Digital Markets Act.
- Meta (META) is up 0.4% after discussing an AI partnership with Apple and facing criticism for misleading the public about risks to young users.
- ResMed (RMD) shares are down 12% following Eli Lilly's (LLY) tirzepatide trial results. A Citigroup analyst says RMD's trial assumptions might be "optimistic" based on this data.
- Boeing (BA, Financial) is down 0.9% as US prosecutors recommend DOJ criminal charges against the company.
- Broadcom (AVGO, Financial) is up 0.5% after news of working with ByteDance to develop advanced AI chips.
Reviewing overnight developments:
Today's News
CrowdStrike (CRWD, Financial) has been added to the S&P 500 Index, marking a significant milestone for the cybersecurity company. CEO George Kurtz highlighted the company's AI-driven, cloud-native architecture as a key factor in its rapid growth. Analyst Justin Ward predicts that CrowdStrike's stock could reach $600 within the next 12 to 18 months, driven by increasing security needs in the sector.
Oppenheimer Asset Management released its top buy and sell recommendations for small/mid-cap stocks across various sectors. In the Energy sector, Texas Pacific Land Corp. (TPL, Financial) is the top buy, while RPC, Inc. (RES, Financial) is the top sell. For the Materials sector, Hawkins, Inc. (HWKN, Financial) is the top buy, and Greif, Inc. (GEF, Financial) is the top sell. In Industrials, BWX Technologies, Inc. (BWXT, Financial) is recommended as a top buy, whereas Hillenbrand, Inc. (HI, Financial) is a top sell.
Micron Technology (MU, Financial) received a price target boost from Wolfe Research, raising it to $200 from $150. The analysts cited strong industry conditions and optimism about high bandwidth memory (HBM) as key factors. They believe that all memory suppliers are working to constrain supply to avoid inventory build-up, which could lead to significant EPS growth in the coming years.
Eos Energy Enterprises (EOSE, Financial) announced a $315 million investment from Cerberus Capital Management to support its growth plans. The investment includes a $210.5 million delayed draw term loan and a $105 million revolver. The company plans to use part of the proceeds to retire its existing $100 million senior secured term loan on favorable terms.
The Food and Drug Administration (FDA) has authorized the marketing of the first non-tobacco flavored e-cigarette products in the U.S. The approval applies to four menthol vaping products from NJOY, owned by Altria (MO, Financial). The FDA's decision is based on rigorous scientific review, emphasizing the benefits to adult smokers who switch completely from traditional cigarettes.
Anheuser-Busch InBev (BUD, Financial) received an upgrade to a Buy rating from UBS, citing positive trends in growth, margins, and cash returns. Analyst Sanjeet Aujla noted that the company is expected to see consistent volume growth and pricing in line with inflation for the first time since before 2008. This is anticipated to result in higher margins and strong cash conversion.
Apple (AAPL, Financial) is poised to benefit from an "AI driven super cycle," according to analysts from Wedbush Securities. The tech giant is expected to integrate AI models and technology into its ecosystem, which could significantly enhance its product offerings. The analysts have set a price target of $275 for Apple, driven by its strong position in the AI revolution.
Bank of America analyzed the potential financial impact of a paid tier for Amazon's (AMZN, Financial) Alexa devices. The analysis suggests that a $5/month tier could generate $600 million in incremental revenue, translating to a 1.3 percentage point growth in 2025 subscription sales. This could significantly boost Amazon's revenue from its Alexa-enabled devices.
U.S. prosecutors are considering bringing criminal charges against Boeing (BA, Financial) for violating a settlement related to two fatal crashes. The Justice Department must decide by July 7 whether to prosecute Boeing for breaching a 2021 agreement that protected it from a criminal charge of conspiracy to commit fraud. The company is accused of defrauding the Federal Aviation Administration.
Efforts to build casinos in the United Arab Emirates (UAE, Financial) are gaining momentum, with Ras Al Khaimah and Abu Dhabi at the forefront. The potential economic benefits and the establishment of a regulatory framework are driving these developments. The UAE could become the next big gambling region, despite gambling being prohibited under Islam.
Target Corporation (TGT, Financial) announced a new partnership with Shopify (SHOP, Financial) to offer a selection of popular merchants and their products on Target Plus, the retailer's third-party digital marketplace. This partnership aims to provide consumers with more options and could boost Target's online sales by bringing select merchants' products into physical stores.
ByteDance (BDNCE, Financial), the owner of TikTok, is collaborating with Broadcom (AVGO, Financial) on an advanced AI chip. The 5-nanometer chip will be manufactured by Taiwan Semiconductor (TSM, Financial) and aims to secure a stable supply of high-end chips amid China-U.S. trade tensions. This partnership marks a significant move in the semiconductor industry.
Apple (AAPL, Financial) has added apps from Alibaba (BABA, Financial) and JD.com (JD, Financial) to its mixed-reality Vision Pro headset in China. The headset will feature virtual test drives and AI-supported product placements. This development is part of Apple's strategy to enhance its product offerings in the Chinese market.
TD Cowen upgraded Planet Fitness (PLNT, Financial) to a Buy rating, citing multiple catalysts that could drive the stock higher. These include a price increase in the company's standard membership and the appointment of a new CEO. The analysts believe these factors provide an attractive risk-reward proposition for investors.
Alimera Sciences (ALIM, Financial) saw its stock soar after ANI Pharmaceuticals (ANIP, Financial) announced it would acquire the firm for $5.50 per share in cash. The deal, valued at $381 million, includes a contingent value right of up to $0.50 per share based on revenue targets. The acquisition is expected to boost ANI's rare disease business and generate significant accretion in adjusted non-GAAP EPS by 2025.
