Daily US Equity Opening News - GS drops on FICC sales & trading rev. miss; SNDK to join Nasdaq 100, replacing TEAM

TODAY’S AGENDA:

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  US INDEX FUTURES: ES -0.6%, NQ -0.5%, YM -1.0%, RUT -0.6%


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  DAY AHEAD: In data releases, US existing home sales for March are expected to print 4.01mln (from 4.09mln). On the speakers’ slate, Fed’s Miran (voter, dovish dissenter) will speak at the Symposium on Building the Financial System after the US close. Notable corporates reporting today include: LVMH (MC FP).


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  BROKER MOVES: ON upgraded at BofA; BBY double downgraded at Goldman Sachs. For the full list, click here.
  


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  MAJOR MORNING MOVES RECAP: GS, LEG, TLX, ON, BX, SNDK, BKR, CSGP, BBY, GFL, REPL. For the full list, click here.
  


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  WEEK AHEAD: Highlights include: US earnings season, US PPI, Chinese GDP, Australian Jobs, UK GDP, ECB minutes. Earnings season kicks off; major corporates reporting this week includes: TSMC (TSM), JPMorgan (JPM), Johnson & Johnson (JNJ), ASML (ASML), Netflix (NFLX), Bank of America (BAC), Morgan Stanley (MS), Goldman Sachs (GS), Wells Fargo (WFC), BlackRock (BLK), PepsiCo (PEP), Citigroup (C), Abbott (ABT), Bank of New York Mellon (BK), US Bancorp (USB), Travelers (TRV), PNC (PNC), Fastenal (FAST), Truist (TFC), Infosys (INFY), Citizens (CFG), M&T (MTB), State Street (STT), J.B. Hunt (JBHT), Alcoa (AA), Snap (SNAP), Autoliv (ALV).


• Click here for Newsquawk’s full week ahead preview.


• Click here for weekly US earnings estimates.

NEWS:

IRAN

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  US Blockade - Washington announced a naval blockade of the Strait of Hormuz, effective 10:00EDT/15:00BST on Monday, applying to all vessels entering or departing Iranian ports. US Central Command said the blockade would be enforced against vessels of all nations entering or departing Iranian ports and coastal areas, including all Iranian ports on the Arabian Gulf and Gulf of Oman. Trump said the Strait of Hormuz would be cleared quickly, predicted Iran would concede to US demands, and forecast oil and gas prices would fall once the conflict concludes, potentially before the midterm elections. Iran’s military adviser to the supreme leader, Mohsen Rezaee, said Iran “will not allow” the embargo and cited unspecified leverage to counter it; meanwhile, Iranian armed forces warned that if Iran’s ports are threatened, no ports in the region would remain safe, according to IRIB, while Tasnim reported that sources said the US will lose the Bab al-Mandab Strait should he decide to take action against the Strait of Hormuz.


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  Peace Talks - US red lines in the Islamabad talks included a full end to uranium enrichment, dismantling of major enrichment facilities, removal of highly enriched uranium stockpiles, cessation of funding for allied militant groups, and full opening of the Strait of Hormuz without tolls; Iran’s parliament speaker said the US “failed to gain the trust” of the Iranian delegation, while Pakistani mediators are expected to continue passing messages between the two sides. After the talks collapsed, Trump said he was not pressing Iran for another round of talks, telling reporters, “I don’t care if they come back or not. If they don’t come back, I’m fine.” Trump cited Iran’s depleted military, missiles and manufacturing capability for missiles and drones as key victories. On Monday, reports in Pakistani media suggested that US and Iranian delegations have reportedly agreed to hold another round of talks after their recent meeting, with the time and venue to be decided later.


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  NATO - President Trump said NATO “wasn’t there” for the US, but expected allied support, adding that the blockade would be highly effective. The UK will not participate in the US blockade of the Strait of Hormuz, with the government calling for freedom of navigation and the opening of the strait, adding to tensions between PM Starmer and President Trump over the Iran conflict.


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  Hormuz Passage - Two fuel tankers, the New Future and US-sanctioned Auroura, attempted to exit the Persian Gulf through the Strait of Hormuz via a route close to Iran’s Larak island, becoming the first vessels to attempt passage since the US announced its blockade, according to ship-tracking data cited by Bloomberg.


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  Iran Crude Exports - Two sanctioned super tankers carrying Iranian crude have anchored off Indian ports in what would be the first such deliveries to the country in nearly seven years, following a US sanctions waiver last month permitting purchases of crude already at sea. India had not received Iranian oil since 2019, according to Bloomberg.


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  Trump vs the Pope - President Trump attacked Pope Leo XIV over his criticism of the US-Israeli war with Iran, calling him “weak on crime.” The pope, the first American-born leader of the Catholic Church, has rebuked the administration and challenged its claim that God supports the US in the conflict.

INDEX

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  Nasdaq 100 (NDX) - Sandisk (SNDK) will join the Nasdaq 100 index, replacing Atlassian (TEAM), prior to market open on 20th April.

FINANCIALS

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  Goldman Sachs (GS) Q1 2026 (USD): EPS 17.55 (exp. 16.41), Revenue 17.2bln (exp. 16.95bln). Shares in premarket are weighed by a miss in FICC sales and trading revenue, offsetting that in Equities sales and trading revenue. FICC sales and trading revenue 4.01bln (exp. 4.87bln), Equities sales and trading revenue 5.33bln (exp. 4.9bln). Global banking and markets net revenue 12.74bln (exp. 12.5bln). Advisory revenue 1.49bln (exp. 1.27bln). Provision for credit losses 315mln, +9.8% Y/Y (prev. net benefit of 2.12bln Q/Q). Provisions for the first quarter of 2026 primarily reflected growth and impairments related to wholesale loans. NII 3.56bln (exp. 3.52bln). Net revenues in Asset & Wealth Management 4.08bln, -14% Q/Q, +10% Y/Y. Operating expenses 10.43bln, +14% Y/Y, +7% Q/Q; increase primarily reflected significantly higher transaction-based expenses and higher compensation and benefits expenses (reflecting improved operating performance). Efficiency ratio 60.5% (prev. 60.6%).


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  Franklin Resources (BEN), Blue Owl (OWL) - Franklin Templeton’s credit arm, Benefit Street Partners, appointed Takeshi Yamamoto as head of capital formation for Japan, according to Bloomberg. Yamamoto joins from Blue Owl Capital, having previously led global credit and alternative investment distribution at Credit Suisse Securities Japan.


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  KKR & Co. (KKR) - KKR’s Japan real estate management subsidiary plans a significant expansion in purchases of non-core corporate real estate assets, in a market KKR estimates at JPY 450tln, according to sources cited by Bloomberg. KJRM’s real estate holdings rose 20% to approximately JPY 2.53tln in 2025, its President said.


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  Blackstone (BX) - Blackstone Digital Infrastructure Trust filed a registration statement with the SEC for a proposed IPO of common stock, with an intended NYSE listing under “BXDC.” The trust focuses on acquiring and owning stabilised data centres. Meanwhile, shares were upgraded at Oppenheimer to 'Outperform' from 'Perform'. Blackstone is a "high-quality company that is now relatively cheap on our 2027 earnings estimates," the firm said, and it believes the "current dislocation" in the shares is giving investors a chance to buy the industry's "premier franchise at a very attractive valuation.


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  Aon plc (AON) - Aon raised its quarterly cash dividend +10% to 0.82/shr.


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  UBP - Private Swiss bank Union Bancaire Privee is rebuilding gold exposure in discretionary client portfolios after cutting its position from around 10% to 3% following an Iran war-driven slump, and forecasts the metal will reach USD 6,000/oz by year-end, Bloomberg reports. The bank said it believes the long-term outlook remains intact.


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  Ping An Insurance (PNGAY) - Ping An Insurance Group is seeking to sell approximately USD 1bln in software-focused private equity fund stakes, and appointed advisors in in March for the sale, according to sources cited by Bloomberg.

TECH

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  Apple (AAPL) - Apple's AI chief John Giannandrea, who led the development of Apple Intelligence, is repoertedly set to step down next week.


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  OpenAI - OpenAI identified a security issue involving third-party developer tool Axios, part of what it described as a wider industry incident. The company said it found no evidence that user data, systems, intellectual property or software were compromised, and is taking precautionary steps to protect its macOS application certification process.


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  Cisco (CSCO) - In talks to acquire AI security startup Astrix for at least USD 250mln, according to The Information.


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  IBM (IBM) - Agreed to pay the US government USD 17.1mln to resolve False Claims Act allegations that it discriminated against employees and job applicants on the basis of race, colour, national origin or sex via DEI practices, including a diversity bonus modifier tied to demographic targets and race- or sex-restricted training programmes, DoJ said.


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  HPE (HPE) - Downgraded at Raymond James to 'Outperform' from 'Strong Buy' with a USD 29 PT (prev. 30). The firm still sees to "significant" upside to the shares and considers it an "attractive value stock." It cites less certainty around HPE's growth and catalysts for the downgrade.


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  On Semiconductor (ON) - Upgraded at BofA to 'Buy' from 'Neutral' with a USD 85 PT (prev. 70). The slow auto and EV environment makes the upgrade "potentially a tad early," but the firm likes the company's pipeline, "solid" free cash flow generation, buyback commitment, and leverage.


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  NXP Semiconductors (NXPI) - Downgraded at BofA to 'Neutral' from 'Buy' with a USD 230 PT (prev. 245). While the firm likes NXP's strength in high-value advanced driver assist systems, radar, and zonal processors, it notes the company's lack of AI products, limited EV leverage, planned exit from high margin communications infrastructure/RF, and higher exposure to consumer phones that could be pressured by constrained memory supply.

COMMUNICATIONS

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  T-Mobile (TMUS) - KeyBanc upgraded TMUS to 'Overweight' from 'Sector Weight'. The firm sees accelerating organic EBITDA growth with "upside levers" for T-Mobile. The company has an "advantageous" network position, driving a competitive advantage for fixed wireless access. KeyBanc believes T-Mobile's balance sheet offers "optimal optionality." It views the stock's valuation as "compressed" relative to history and thinks the company's Q1 results will serve as a catalyst.


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  Advertising Companies - The FTC is in settlement talks with several major advertising companies including Publicis (PUBGY), WPP (WPP), Dentsu (DNTUY), Havas (HVNVY) and Horizon Media over a probe into whether they coordinated boycotts against platforms including X, in potential violation of federal antitrust laws, according to sources cited by the WSJ.


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  Paramount (PSKY), Warner (WBD) - The deal between the two companies is expected to face a UK competition probe, Bloomberg News reports.


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  Nexstar Media Group (NXST) - Seeking to counter national networks through its affiliate stations, Bloomberg reports, citing a regulatory document and sources. Begun preventing its stations from filling local newscasts with segments produced by national networks such as ABC, NBC and CBS and is asking them to use content from its NewsNation cable channel instead, the report said.

CONSUMER DISCRETIONARY

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  Amazon (AMZN) - Has quietly expanded its car sales business over the past year and a half, WSJ reports. Amazon has expanded its car sales programme from an initial partnership with Hyundai to include brands such as Kia, Mazda, Subaru, Chevrolet and Jeep, and is now active in more than 130 cities, allowing customers to buy new vehicles like a Corvette directly through its platform.


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  McDonald’s (MCD) - McDonald’s is set to add energy drinks to its US restaurant menus later this year, as part of a broader cold drinks overhaul, according to the WSJ. The new beverages, poised to roll out next month, include a Dirty Dr Pepper and a Mango Pineapple Refresher. McDonald's slate of energy drinks is expected to be sold starting in August.


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  Tesla (TSLA) - Tesla Europe said it has received approval to roll out FSD Supervised in the Netherlands, Middle East & Africa.


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  Legett & Platt (LEG) - Somnigroup (SGI) to acquire Leggett & Platt in ~USD 2.5bln all-stock deal (0.1455 shares per share). LEG holders to own ~9% of combined company; deal expected by end-2026, with EPS accretive and ~USD 50mln cost synergies targeted.


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  Best Buy (BBY) - Double downgraded at Goldman Sachs to 'Sell' from 'Buy' with a USD 59 PT (prev. 76). The firm sees risk the company's sales post the Q1 report as higher memory costs start to work their way into the price of laptops and computers. Best Buy faces margin compression risks as consumers potentially trade down to lower-priced models and volume declines as manufacturers prioritize fewer consumer electronic shipments. Goldman also believes the company continues to struggle in growing its appliance and consumer electronic categories.


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  Domino’s (DPZ) - DPC Dash, Domino’s exclusive master franchisee for Chinese mainland, Hong Kong and Macau, said it grew its total store count to 1,462 across 72 cities as of 31st March, a net increase of 147 stores, and entry into 12 new cities vs end-2025. The Chinese mainland remains the third-largest international market within Domino’s global system.

ENERGY

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  Asia LNG Imports - Asian LNG imports have fallen to a 6yr low, with the 30-day moving average of net shipments dropping below 600K tons over the weekend, the lowest since June 2020, as Middle East conflict chokes supplies and forces buyers to curb consumption, according to ship-tracking data cited by Bloomberg. Analysts see Asian spot LNG prices rising further after the US moved to blockade the Strait of Hormuz following the collapse of peace talks.


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  Baker Hughes (BKR) - Will sell Waygate Technologies to Sweden’s Hexagon for about USD 1.45bln, WSJ reports.


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  Halliburton (HAL) - YPF awarded Halliburton a multibillion-dollar long-term unconventional completions contract in Argentina.


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  Viper Energy (VNOM) - Upgraded at Jefferies to 'Buy' from 'Hold' with a USD 55 PT (prev. 43). The firm said the company is well positioned to take advantage of higher oil prices and with the higher price environment "here to stay," Viper will post its largest annual buyback in 2026. Jefferies views the shares as "cheap" following the recent multiple compression. Jefferies cites its higher long-term oil price outlook and an environment "looking increasingly inflationary" for the upgrade.


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  Saudi Aramco - Saudi Arabia’s crude shipments to China are set to halve in May to approximately 20mln bbls, down from roughly 40mln bbls allocated for April, as Middle East war disruptions upend flows and lift prices, according to Bloomberg.


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  BP (BP) - Agreed to acquire a 60% interest in three offshore exploration blocks in Namibia from Eco Atlantic Oil & Gas.

INDUSTRIALS

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  Fastenal Company (FAST) Q1 2026 (USD): EPS 0.30 (exp. 0.30), Revenue 2.2bln (exp. 2.20bln). Continues to expect investment in Property & Equipment, net of proceeds from sales, to be between 310-330mln.


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  Lockheed Martin (LMT) - Lockheed Martin’s Orion spacecraft has successfully returned to Earth, splashing down in the Pacific Ocean after travelling to the Moon and back to complete NASA’s Artemis II mission. It was the company’s first crewed deep-space mission in over five decades.


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  Textron (TXT) - Awarded a USD 150.2mln Air Force contract modification for sustaining engineering and programme management services for the T-6, bringing the total cumulative contract value to USD 510mln from USD 240mln.


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  Boeing (BA) - Boeing was awarded an USD 157mln contract to supply ten Nacelle Improvement Kits and three shipsets of Pylon Support Assemblies for MV-22 and CMV-22 aircraft retrofit for the Navy and Marine Corps.


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  GFL Environmental (GFL), Secure Waste Infrastructure (SECYF) - GFL Environmental is nearing a deal to acquire Canada’s Secure Waste Infrastructure Corp. for more than CAD 6bln including debt, implying a valuation of approximately 11x EBITDA, Bloomberg reports. The transaction is expected to be structured as roughly 20% cash and 80% stock.


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  Deutsche Lufthansa (DLAKY) - Pilot union Vereinigung Cockpit has called a two-day strike at Lufthansa on 13th April to midnight 14th April, affecting Lufthansa passenger and cargo flights as well as Eurowings departures, according to Bloomberg.

HEALTHCARE

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  Eli Lilly (LLY) - Jaypirca significantly continued progression-free survival when added to a venetoclax time-limited regimen in patients with previously treated CLL/SLL. BRUIN CLL-322 is the first Phase 3 readout in CLL to utilise and outperform a venetoclax-containing control arm.


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  AbbVie (ABBV) - AbbVie said Phase 2 IMGN853-0420 results will be presented at the 2026 SGO Annual Meeting. The trial evaluated Elahere with carboplatin followed by Elahere maintenance in 125 patients with FRalpha-expressing, recurrent platinum-sensitive ovarian cancer after one prior platinum regimen. The primary endpoint was confirmed objective response rate in the >=50% FRalpha subgroup after six cycles.


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  Regeneron (REGN), Telix (TLX) - Companies are to co-develop and co-commercialise next-gen radiopharmaceutical Therapies in a 50/50 cost and profit-sharing model; Telix to receive USD 40mln upfront and up to USD 2.1bln in milestones.


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  Merck (MRK) - Ifinatamab deruxtecan in adults with extensive-stage small cell lung cancer has been accepted for FDA priority review,


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  GSK (GSK) - Planning five simultaneous late-stage trials for a cancer drug under new CEO Luke Miels, who has been tasked with overhauling the drugmaker’s pipeline, Bloomberg reports. GSK’s share price has risen nearly 50% since Miels’ appointment was announced in September, outpacing European pharmaceutical peers.


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  Sanofi (SNY), Regeneron (REGN) - Sanofi and Regeneron said the EU approved Dupixent for moderate-to-severe CSU in children aged two to 11 years with inadequate response to H1AH and naïve to IgE therapy.


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  IDEAYA Biosciences (IDYA) - The company and Servier said the Phase 2/3 OptimUM-02 trial met its primary endpoint, with darovasertib plus crizotinib reducing progression risk by 58% and improving median PFS to 6.9 months vs. 3.1 months, with ORR of 37.1% vs. 5.8%. The companies plan an FDA NDA submission in 2H26 based on the 313-patient study, with early OS improvement trends and a manageable safety profile.


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  Novo (NOVO) - Ozempic for Australians is expected to fall from about AUD 300 a month for private patients to a small fraction after Australian patents expire in late 2029 and 2031, according to WA Today.


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  BioNTech (BNTX) - Reported Phase 2 BNT323 (trastuzumab pamirtecan) met primary endpoint in advanced endometrial cancer. Showed ~49% response rate and ~8.1-month PFS, with manageable safety across subgroups.


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  Revolution Medicines (RVMD) - Reported Phase 3 RASolute 302 results showing daraxonrasib improved median overall survival to 13.2 months vs. 6.7 months for chemotherapy (HR 0.40) in metastatic pancreatic cancer, with significant PFS benefit and manageable safety. The company plans global regulatory filings, including an FDA NDA, based on these final interim results, company said.


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  Roche (RHHBY) - Roche said its Elecsys NfL test received CE mark approval for detecting neuroinflammation in patients diagnosed with RRMS.


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  Humana (HUM) - Elected Robert Field to its Board, effective immediately following the company’s 2026 AGM.


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  Spyre Therapeutics (SYRE) - Said SPY001 met the primary endpoint in the Phase 2 SKYLINE trial, showing a statistically significant 9.2-point reduction in RHI score at 12 weeks in ulcerative colitis patients. The company expects additional Part A data in mid-2026 and Q3, with Part B induction data in 2027, supporting ongoing development across monotherapy and combination cohorts.


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  Allogene Therapeutics (ALLO) - Reported interim Phase 2 ALPHA3 data showing 58.3% MRD negativity with cema-cel vs. 16.7% for observation, a 41.6% difference, with ctDNA dropping 97.7% vs. a 26.6% increase. The study remains ongoing toward a potential BLA, with interim EFS analysis expected mid-2027 and primary readout in mid-2028. TD Cowen said the data showed a 41.6% MRD clearance advantage exceeding the ~25% benchmark and supports potential for a 50% EFS benefit.


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  Replimune Group (REPL) - Received a Complete Response Letter from the US Food and Drug Administration on April 10 rejecting its BLA for RP1 plus nivolumab in advanced melanoma, citing insufficient evidence of effectiveness based on reanalysis of RPL-001-16 and RP1-104 data. The agency said the trial was not an adequate, well-controlled study and did not meet approval standards, representing a setback for the company’s lead oncology program. In response, Replimune said the FDA’s Complete Response Letter for RP1 in advanced melanoma was “disappointing” and “inconsistent,” arguing the agency contradicted prior guidance and ignored data showing a 34% response rate and 30.6-month median PFS for RP1 plus nivolumab versus 4.4 months on prior PD-1 therapy. The company warned RP1 development may no longer be viable without accelerated approval and plans job cuts and a scale-back of U.S. manufacturing.

CONSUMER STAPLES

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  Conagra Brands (CAG) - Named John Brase as CEO effective June 1, succeeding Sean Connolly, who will step down May 31 after more than a decade. Brase, most recently COO of The J.M. Smucker Co, will also join the board as the company transitions leadership.


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  Dollar General (DG) - Plans to roll out an AI-enabled in-store audio network to ~6,000 stores via a partnership with QSIC, doubling its audio-enabled footprint to 12,000 locations by Q2 2026. The initiative aims to deliver localised, data-driven advertising and improved measurement capabilities across its US store base.


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  JBS NV (JBS) - Reached a new labour agreement with the local union representing 3,800 workers at its Colorado beef plant, a week after employees returned following a three-week strike that began 16th March, which was the largest at a US meat-processing plant in decades. Terms include pay increases through 2027, according to the WSJ.


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  Infant Formula - New Zealand’s A2 Milk lowered its revenue and earnings guidance after supply chain disruptions partly linked to the Iran war slowed shipments of China-label infant formula to distributors and retailers in China, the company said.

MATERIALS

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  Rare Earths - Shares in Chinese rare earth companies rallied overnight after China Northern Rare Earth and Baotou set Q2 concentrate prices at RMB 38,804/ton, up around +45% Q/Q. Separately, Australia and the US have offered potential financing of up to AUD 849mln for a rare earths refinery project by Tronox Holdings spanning Western Australia and the US, with Export Finance Australia and the US Export-Import Bank each issuing letters of support for as much as AUD 424mln.


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  Aussie Urea - Australia has established a government working group with the fertiliser industry to safeguard urea supplies; Ags minister Collins said around 60% of the country’s urea typically transits the Strait of Hormuz.


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  Rio Tinto (RIO) - - Rio Tinto has drawn interest from more than a dozen potential bidders for its US critical minerals assets that could be valued as much as USD 2bln, Bloomberg reports.

REAL ESTATE

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  CoStar Group (CSGP) - Third Point will not pursue a proxy fight at CoStar and has sold its entire stake, saying its original thesis no longer holds, Reuters reports. The hedge fund had pushed for board and operational changes as CoStar’s shares fell from about USD 66 in January to USD 36.48 on Friday, cutting market value to USD 15.3bln from USD 28bln.

GEOPOLITICS

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  China-Taiwan - Taiwan will conduct its first-ever joint exercise between the Interior Ministry and other departments to escort ships carrying natgas and oil during a naval blockade, a senior Taiwanese official said. The drills, planned for the coming weeks, aim to ensure access to critical supplies in the event of a Chinese blockade, Bloomberg reports. Separately, China announced policy incentives for Taiwan following a meeting between President Xi and Taiwanese opposition leader Cheng Li-wun, including facilitating sales of Taiwan’s agricultural and fishery products into China and promoting resumption of outbound travel to the island, aimed at advancing peaceful cross-strait relations.

MACRO

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  Rare Earths - Shares in Chinese rare earth companies rallied overnight after China Northern Rare Earth and Baotou set Q2 concentrate prices at RMB 38,804/ton, up around +45% Q/Q. Separately, Australia and the US have offered potential financing of up to AUD 849mln for a rare earths refinery project by Tronox Holdings spanning Western Australia and the US, with Export Finance Australia and the US Export-Import Bank each issuing letters of support for as much as AUD 424mln.


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  BoJ - Governor Ueda said Japan's economy is recovering moderately, albeit with some weakness, and that economic conditions and prices are moving broadly in line with BoJ forecasts, with underlying inflation gradually accelerating towards the central bank's target. Former BoJ executive director Kazuo Momma said the central bank’s typical response to high uncertainty would be to hold rates, making the outcome of this month’s meeting too close to call. Momma told Bloomberg that the Middle East developments are placing the BoJ in a very difficult situation.

13 Apr 2026 - 13:47- EquitiesGeopolitical- Source: Newsquawk