The S&P 500 futures are up 23 points (0.4% above fair value), Nasdaq 100 futures are up 94 points (0.5% above fair value), and Dow Jones Industrial Average futures are up 209 points (0.5% above fair value).
Stock futures are rising as Treasury yields go up. This follows an assassination attempt on Former President Trump at a rally in Butler, PA on Saturday, which has implications for the November election. Gains in mega-cap stocks are also helping the market.
The 10-year note yield is up five basis points to 4.24%.
Investors are also looking at earnings from Goldman Sachs (GS) and BlackRock (BLK), which have been positively received.
In corporate news:
- Goldman Sachs (GS 480.09, +2.21, +0.5%): beat earnings estimates by $0.27, also beat revenue expectations.
- BlackRock (BLK 834.12, +6.15, +0.7%): beat earnings estimates by $0.40, revenue in line with expectations.
- Apple (AAPL 234.67, +4.10, +1.8%): sales in India reached $8 billion; upgraded to Buy from Hold at Loop Capital.
- Google (GOOG 186.55, -0.23, -0.1%): in talks to acquire cybersecurity startup Wiz for $23 billion.
- Boeing (BA 182.85, +0.54, +0.3%): started 777X certification testing.
- NVIDIA (NVDA 130.80, +1.56, +1.2%): TD Cowen raised price target to $165 from $140.
- TSMC (TSM 189.14, +1.79, +1.0%): reiterated Buy rating; price target raised to $210 from $168.
Reviewing overnight developments:
Today's News
Tesla (TSLA, Financial) traded higher on Monday as investors prepared for the electric vehicle maker's Q2 earnings report and awaited word on whether the August 8 robotaxi event would be postponed. Morgan Stanley analysts believe a delay wouldn't be negative, as it could highlight Tesla's AI capabilities beyond autonomous cars. The firm's Master Plan 4 is expected to focus on AI, robotics, and hybrid compute. Elon Musk also made headlines by endorsing Donald Trump over the weekend.
Wedbush Securities highlighted several technology stocks, including Microsoft (MSFT, Financial), Alphabet (GOOG) (GOOGL, Financial), Amazon (AMZN, Financial), Palantir (PLTR), and Meta Platforms (META, Financial), as standouts for the upcoming earnings season. Analyst Dan Ives expects tech stocks to rise another 15% this year, driven by the "AI Revolution" and strong cloud deployments and enterprise AI spending.
Google (GOOG) (GOOGL, Financial) is reportedly in advanced talks to acquire cybersecurity startup Wiz for approximately $23 billion, according to sources. This move could significantly enhance Google's cloud unit and potentially lead to more deals in the cybersecurity space. The acquisition would give Google an edge in cloud deployments and further monetize the cybersecurity cloud space.
KLA Corp. (KLAC, Financial) was named Citi's top pick in the semiconductor equipment sector, with shares rising 0.5% in premarket trading. Analyst Atif Malik raised the price target to $980 from $760, citing confidence in the company's growth in leading-edge wafer fab equipment. Applied Materials (AMAT) and Lam Research (LRCX) were also highlighted as beneficiaries of rising deposition/etch spend intensity.
Plug Power (PLUG, Financial) and Renault SAS (RNSDF) received European Commission approval for their joint acquisition of HyVia. The venture aims to manufacture fuel cell light commercial vehicles and supply hydrogen refueling stations. The companies plan to establish a vertically integrated manufacturing center in France and refueling stations across Europe.
Walmart (WMT, Financial) announced plans to add new Mr. Gatti's Pizza shops inside its locations across Texas, Louisiana, Oklahoma, and Kentucky, starting in Q4. This expansion strategy will double Mr. Gatti's national footprint and increase competition with Domino's Pizza (DPZ) and Papa John's International (PZZA). Walmart's shares have risen nearly 5% over the past six weeks.
Microsoft (MSFT, Financial) is experiencing "solid demand" ahead of its fiscal fourth-quarter results, driven by a "modest" acceleration in its Azure cloud service, according to Morgan Stanley. Analyst Keith Weiss expects a clean beat across key segments, but notes that the stock's high valuation requires continued earnings growth.
Adobe released its online shopping forecast for the 2024 Prime Day event, predicting a total of $14 billion in online spending, up 10.5% year-over-year. The first day is expected to generate $7.1 billion, with significant discounts anticipated across electronics, apparel, home/furniture, toys, televisions, and sporting goods.
Cleveland-Cliffs (CLF, Financial) announced a $2.5 billion acquisition of Canadian steel producer Stelco Holdings (STZHF). The deal includes a mix of cash and stock, and is expected to achieve $120 million in annual cost savings. The acquisition will expand Cleveland-Cliffs' steelmaking footprint and double its exposure to the flat-rolled spot market.
Franco-Nevada (FNV, Financial) and Osisko Gold Royalties (OR) are partnering to secure gold produced at SolGold's (SLGGF) Cascabel copper-gold project in Ecuador. The companies will provide $100 million initially for pre-construction costs, followed by $650 million for construction once the project is fully financed.
Apple Inc. (AAPL, Financial) reported record annual sales of nearly $8 billion in India, driven by strong iPhone sales. The company's revenue in India jumped about 33% year-over-year. Apple is increasing its presence in India as part of its strategy to diversify its manufacturing and revenue sources away from China.
HashiCorp (HCP) and IBM (IBM, Financial) received a second request for information from the Federal Trade Commission regarding their merger. This will extend the approval waiting period. IBM's acquisition of HashiCorp aims to boost its hybrid cloud and software management capabilities.
