S&P futures vs fair value: +23.00. Nasdaq futures vs fair value: +94.00.
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 rise. The rally follows an assassination attempt on former President Trump at a rally in Butler, Pennsylvania, on Saturday that has implications for the November election. Gains in mega-cap stocks are also supporting the market.
The 10-year bond yield is up five basis points to 4.24%.
Investors are also looking at earnings from Goldman Sachs (GS) and BlackRock (BLK), which were received positively.
In company news:
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Goldman Sachs (GS 480.09, +2.21, +0.5%): Beat earnings estimates by $0.27, and also topped revenue expectations.
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BlackRock (BLK 834.12, +6.15, +0.7%): Beats earnings estimates by $0.40, revenue in line with expectations.
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Apple (AAPL 234.67, +4.10, +1.8%): India sales hit $8 billion; recommendation upgraded from Hold to Buy at Loop Capital.
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Google (GOOG 186.55, -0.23, -0.1%): In talks to acquire cybersecurity startup Wiz for $23 billion.
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Boeing (BA 182.85, +0.54, +0.3%): start of 777X certification tests.
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NVIDIA (NVDA 130.80, +1.56, +1.2%): TD Cowen raised its price target to $165 from $140.
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TSMC (TSM 189.14, +1.79, +1.0%): Buy rating reiterated; price target raised to $210 from $168.
Review of the night’s developments:
Today’s news
You’re here (TSLA, Financial) rose Monday as investors prepared for the electric-vehicle maker’s second-quarter earnings release and waited to hear whether its Aug. 8 robotaxi event would be postponed. Morgan Stanley analysts said a delay wouldn’t be a bad thing, as it could highlight Tesla’s AI capabilities beyond self-driving cars. The company’s Master Plan 4 is expected to focus on AI, robotics and hybrid computing. Elon Musk also made headlines over the weekend for his endorsement of Donald Trump.
Wedbush Securities highlighted several technology stocks, including Microsoft (MSFT, Financial), Alphabet (GOOG) (GOOGLE, Financial), Amazon (AMZN, Financial), Palantir (PLTR) and Meta Platforms (META, Financial), which are expected to be among the top stocks in the upcoming earnings season. Analyst Dan Ives expects tech stocks to rise another 15% this year, driven by the “AI revolution,” large cloud deployments and enterprise AI spending.
Google (GOOG) (GOOGLE, Financial) is reportedly in advanced talks to acquire cybersecurity startup Wiz for about $23 billion, according to sources. The move could significantly enhance Google’s cloud division and potentially lead to more cybersecurity deals. 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 up 0.5% in premarket trading. Analyst Atif Malik raised the price target to $980 from $760, citing confidence in the company’s growth in advanced wafer manufacturing equipment. Applied Materials (AMAT) and Lam Research (LRCX) were also highlighted as beneficiaries of increased deposition/etching spending intensity.
Plug hole (SOCKET, Financial) and Renault SAS (RNSDF) have received approval from the European Commission for their joint acquisition of HyVia. The company 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 restaurants to its Texas, Louisiana, Oklahoma and Kentucky locations, starting in the fourth quarter. The expansion strategy will double Mr. Gatti’s national footprint and increase competition from Domino’s Pizza (DPZ) and Papa John’s International (PZZA). Walmart shares are up nearly 5% over the past six weeks.
Microsoft (MSFT, Financial) is seeing “strong 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 significant improvement across all key segments, but notes that the stock’s high valuation requires continued earnings growth.
Adobe has released its online shopping forecast for Prime Day 2024, predicting a total of $14 billion in online spending, up 10.5% from the previous year. The first day is expected to generate $7.1 billion, with deep discounts expected on electronics, apparel, home/furniture, toys, TVs and sporting goods.
Cleveland-Cliffs (CLF, Financial) announced the acquisition of Stelco Holdings (STZHF) for $2.5 billion. The deal includes a mix of cash and stock and is expected to deliver annual cost savings of $120 million. The acquisition will expand Cleveland-Cliffs’ presence in the steel manufacturing sector 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 Cascabel copper-gold project (SLGGF) in Ecuador. The companies will initially contribute $100 million for pre-construction costs, followed by $650 million for construction once the project is fully funded.
Apple Inc. (AAPL, Financial) reported record annual revenue of nearly $8 billion in India, driven by strong iPhone sales. The company’s revenue in India jumped about 33% from a year earlier. Apple is expanding 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) has received a second request for information from the Federal Trade Commission regarding their merger. This will extend the approval period. IBM’s acquisition of HashiCorp is aimed at strengthening its hybrid cloud and software management capabilities.
