Daily US Equity Opening News - GS raises SPX target; UNH CEO transition & suspends 2025 outlook; China lifts BA ban

TODAY'S AGENDA:

• 
  US INDEX FUTURES: ES unch, NQ +0.2%, YM -0.4%, RTY +0.5%.


• 
  DAY AHEAD: US President Trump will begin his visit to the Middle East. Today's speakers' docket includes BoE Governor Bailey, Chief Economist Pill, Norges Bank's Bache, and ECB's Rehn. Afterhours, the API will release its gauge of weekly energy inventories; this week, the street expects to see crude stocks draw down by a rate of -2mln bbls, distillates are expected to build by +0.4mln bbls, gasoline stocks are seen drawing by -0.7mln bbls.


• 
  BROKER MOVES: FSLR upgraded at Wolfe; CVX downgraded at HSBC. To see the full list, please click here.
  


• 
  MAJOR MORNING MOVES RECAP: COIN, BA, HTZ, HMC, ONON, UNH, UAA, AMZN/FDX. To see the full list, click here.
  


• 
  DAILY US CONFERENCE CALENDAR: To see the full calendar, click here.
  

EQUITY NEWS:

INDEX

• 
  S&P 500 (SPX) - Goldman Sachs (GS) raised its S&P 500 target to 6,500 (prev. 6,200), citing reduced trade tensions between the US and China, which have revived the “Buy America” trade. The new estimate suggests an 11% potential gain from the current level over the next 12 months. Meanwhile, BlackRock (BLK) CEO said it still sees global investors overweighting the US.


• 
  S&P 500 (SPX), Coinbase (COIN), Discover Financial (DFS) - Coinbase will replace Discover Financial in the S&P 500 before the open on May 19th, as Discover is set to be acquired by Capital One (COF), pending final conditions.

TECH

• 
  Semiconductors - The White House is considering a major AI chip sale to UAE-based G42 despite prior concerns over its China ties, NYT reports. A previous deal involved Microsoft (MSFT) managing chips used by G42. Separately, the Trump administration is expected to approve AI chip access for Saudi Arabia’s Humain with support from Nvidia (NVDA) and AMD (AMD).


• 
  SoftBank (SFTBY) Q4 2025 (JPY): Net profit 517.18bln (exp. -108.11bln), driven by resilient AI demand, which supported startup valuations and chip unit sales, bolstering its data centre investment plans, as well as strong performance in its telecom holdings. FY net income 1.15tln (exp. 709.69bln); FY net sales 7.24tln (exp. 7.16tln); its Vision Fund saw an FY loss of 115bln (vs profit of JPY 128bln Y/Y). Guidance: FY dividend of JPY 44.00 (exp. 48.55).


• 
  Samsung (SSNLF) - Launched the Galaxy S25 Edge, a slim, premium smartphone priced at USD 1,099. It's 30% thinner and 25% lighter than the S25 Ultra, features a titanium frame, and a 200MP rear camera, as well as advanced AI capabilities. It goes on sale in the US on May 30th.


• 
  Palantir Technologies (PLTR) - Former CAO Heather Planishek purchased 10K shares on May 8th for a total USD 1.16mln.


• 
  Corning (GLW) - Collaborates with Broadcom (AVGO) to accelerate AI data centre processing capacity.


• 
  MediaTek (MDTKF), Nvidia (NVDA) - Nvidia has partnered with MediaTek to launch an AI PC platform in 2025, marking a major milestone for MediaTek as it becomes a key ally of Nvidia, DigiTimes reports. However, concerns over talent migration between the two companies are growing as the collaboration progresses.


• 
  US Silicon Carbide - The US silicon carbide industry faces challenges despite tariff protections, especially from Chinese competition, DigiTimes reports. SiC is crucial for electric vehicle powertrains, and the US SiC industry has benefited initially from US trade restrictions, but struggles continue as China’s industry grows.


• 
  China Solar Inverters - Europe is considering a ban on Chinese-made solar inverters due to growing cybersecurity concerns. The debate is similar to the 2019 US ban, and involves discussions about restricting high-risk suppliers from connecting to Europe's power systems, aiming to mitigate potential security risks, DigiTimes reports.


• 
  First Solar (FSLR) - Upgraded to 'Outperform' from 'Peer Perform' at Wolfe Research. The firm cites better clarity on 45X credits for the first time since election year politics started in early 2024 for the upgrade. Wolfe believes the company's "domestic moat remains well intact" as the only domestic solar module manufacturer of scale. "The House Ways & Means bill's proposed Foreign Entity of Concern restrictions are relatively strict and another good signal that it will be tough for Chinese manufacturers to compete in the US, further strengthening First Solar's competitive positioning".


• 
  Wolfspeed (WOLF) - Wolfspeed creditors offered ~ USD 600mln to refinance a large convertible bond coming due in 2026, to pre-empt a potential bankruptcy filing, FT reports. The offer comes after Wolfspeed announced last week that it was considering a bankruptcy filing after negotiations to restructure the bond reached an impasse.


• 
  Rigetti Computing (RGTI) Q1 2025 (USD): EPS 0.13 (exp. -0.04), Revenue 1.5mln (exp. 2.5mln).

INDUSTRIALS

• 
  Boeing (BA) - China has lifted its month-long ban on Boeing aircraft deliveries following a breakthrough in US-China trade talks that temporarily reduced tariffs, Bloomberg reports. Officials in Beijing informed domestic airlines and agencies this week that they can now resume taking delivery of US-made planes, with flexibility on timing and terms.


• 
  FedEx (FDX), Amazon (AMZN), UPS (UPS) - Amazon has signed a multi-year delivery deal with FedEx to cover capacity shortfalls after UPS announced plans to halve Amazon deliveries by end-2026. The agreement, reached in February, includes select large packages and offers Amazon cost advantages, Business Insider reports. FedEx said the deal will be a net positive for yields.


• 
  United Airlines (UAL), Boeing (BA) - United Airlines unveiled United elevated interior for new Boeing 787-9 aircraft; delivery of the first United 787-9 with elevated interior expected before 2025 end, first international flight is planned in 2026. At least 30 new Boeing 787 deliveries with United Polaris studio suites and elevated interiors to join the fleet by 2027; United Polaris studio will be priced differently than standard United Polaris.


• 
  Defence Contractors - The State Department approved approximately USD 1.4bln in arms sales to the UAE, including six CH-47F Chinook helicopters (BA) for USD 1.32bln, and F-16 warplane (GD) maintenance parts worth USD 130mln. The approval comes ahead of President Trump’s Middle East visit.


• 
  RTX (RTX) - Awarded a USD 2.13bln US Missile Defence Agency contract modification; the contract's value has risen from USD 1.20bln to USD 3.33bln, covering management, material, and services for sustaining engineering and product support of the Standard Missile-3 Block missile variants for the US and Foreign Military Sales partners.


• 
  3M (MMM) - Resolved PFAS-related claims with New Jersey, covering issues linked to the Chambers Works site. The agreement includes a 25-year payment plan, amounting to USD 285mln in a pre-tax charge, with USD 210mln for the site and USD 75mln for future state claims. The company remains on track to phase out PFAS production by 2025.


• 
  Plug Power (PLUG) Q1 2025 (USD): EPS -0.21 (exp. -0.20), Revenue 133.7mln (exp. 131.79mln). Outlook: Q2 revenue 140-180mln (exp. 158.1mln), with anticipated margin improvement and reduced third-party fuel costs. Will focus on leveraging infrastructure, including the Louisiana hydrogen plant, for enhanced performance.


• 
  Hertz Global (HTZ) Q1 2025 (USD): Adj. EPS -1.12 (exp. -0.98), Revenue 1.81bln (exp. 2.01bln). CEO noted progress with the "Back-to-Basics Roadmap," focusing on fleet management, revenue optimisation, and cost control. Despite economic uncertainty, the company is on track for positive adj. EBITDA by Q3 2025.


• 
  Honeywell (HON) - The CFO said he's confident about their FY guidance, there's hesitation about demand in H2 of the year, specifically businesses with more exposure to China.

CONSUMER DISCRETIONARY

• 
  Tesla (TSLA) - Sales of new Tesla vehicles in China dropped 58% W/W and 69% Y/Y during the week of May 5-11th, the lowest level since January, EV reports.


• 
  Nissan (NSANY) 2024/2025 (JPY): Operating profit 69.8bln (-87.7%), net -670.90bln (prev. 426.65bln), Revenue 12.63tln (prev. 12.69tln); withholded FY guidance due to tariffs, will consolidate production plants to 10 from 17. Nissan's impact on Renault Q1 net estimated at EUR 2.2bln loss. CEO said if tariffs were removed then Nissan would be around break-even for the FY. Meanwhile, Nissan will suspend operations at select domestic factories as part of a business restructuring, though details on which plants will be affected and whether they will face suspension or closure are yet to be finalised, according to Nikkei.


• 
  Honda Motor (HMC) - Forecasts FY operating profit will fall 59% to JPY 500bln, down from JPY 1.21tln previously; it cited US tariffs and a stronger JPY currency, despite solid demand for hybrids. Said tariffs will put a JPY 650bln drag on its FY profits. Honda sold 1.4mln cars in the US in 2024, of which around 40% of which were imported. Sees FY global car sales of 3.62mln (1.68mln in North America, and 1.09mln in Asia). Has also decided to postpone by 2 years its plans to build an EV value chain in Canada, due to a slowdown in EV demand.


• 
  McDonald's Corp. (MCD) - Set to hire up to 375k workers in the US this summer, marking its largest recruitment drive in years, Bloomberg reports. The push aims to accommodate increasing customer demand and support the expansion of new locations, with positions not being seasonal or temporary.


• 
  Bally's Corporation (BALY) Q1 2025 (USD): Revenue 589.2mln (exp. 594.5mln). Revenue breakdown: Casinos & Resorts revenue 351.2mln, +2.6% Y/Y; International Interactive 191.7mln, North America Interactive 44.5mln,+12.5% Y/Y. CEO highlighted growth from transactions with Queen Casino & Entertainment and Standard General, expanding scale and long-term growth opportunities.


• 
  Sea Ltd (SE) Q1 (USD): EPS 0.65 (exp. 0.91), Revenue 4.8bln (exp. 4.89bln), adj. EBITDA 0.95bln (exp. 0.69bln).


• 
  JD.com (JD) Q1 2025 (USD): EPS 1.16 (exp. 1.05), Revenue 41.5bln (exp. 40.2bln); Co. noted of improving consumer sentiment.


• 
  On Holding (ONON) Q1 2025 (CHF): EPS 0.17 (exp. 0.21), Revenue 726.6mln (exp. 682.35mln); raised FY25 net sales growth view to 28% on a constant currency basis (prev. 27%).


• 
  Under Armour (UAA) Q4 2025 (USD): Adj. EPS -0.08 (exp. -0.09), Revenue 1.2bln (exp. 1.17bln). Outlook: Q1 EPS 0.01-0.03 (exp. 0.00).


• 
  Clorox (CLX), Bath & Body Works (BBWI) - Clorox has appointed Gina Boswell, CEO of Bath & Body Works, to its Board of Directors, effective May 19th.


• 
  Topgolf Callaway (MODG) Q1 2025 (USD): EPS 0.11 (exp. -0.06), Revenue 1.09bln (exp. 1.08bln). CEO highlighted strong performance in Golf Equipment and cost reduction initiatives. Outlook: FY25 revenue 4.000-4.185bln (exp. 4.1bln), including Jack Wolfskin business, with adj. post-sale completion.


• 
  HNI Corporation (HNI) - Raised quarterly dividend to 0.34/shr (prev. 0.33).

HEALTHCARE

• 
  UnitedHealth (UNH) - Announced leadership transition and suspended 2025 outlook as medical expenditures are expected to be higher than anticipated. Andrew Witty steps down as UnitedHealth Group CEO, with Stephen J. Hemsley appointed as UnitedHealth Group CEO; will remain chairman of the board. Co. expects to return to growth in 2026. Co. is including higher cost expectations in its Medicare Advantage bid due in a few weeks


• 
  Drug Prices - US President Trump posted on Truth Social that his administration would cut prescription drug costs by eliminating middlemen and enabling direct sales to Americans at the “most favoured nation” price, pledging lower prices and increased fairness in the system.


• 
  Grail (GRAL) - Partnered with Athenahealth to integrate its Galleri multi-cancer early detection test into AthenaCoordinator Core via the athenaOne EHR system.


• 
  DaVita (DVA) Q1 2025 (USD): Adj. EPS 2.00 (exp. 2.02), Revenue 3.2bln (exp. 3.21bln); CEO cited operation stability. Outlook: Reaffirmed FY25 adj. EPS guidance at 10.20–11.30 (exp. 11.03), and FY25 FCF of 1.0–1.25bln.


• 
  AbbVie (ABBV) - Appointed Thomas J. Falk to its Board; board size expands to 15 directors.


• 
  Qiagen (QGEN) - Agreed to acquire Genoox for USD 70mln in cash, plus up to USD 10mln in milestones, adding a cloud-based genomics platform, which is expected to contribute USD 5mln in 2025 sales with neutral impact on adj. EPS.


• 
  Bayer (BAYRY) Q1 2025 (EUR): Adj. EBITDA 4.09bln (exp. 3.88bln), helped by strong demand for new cancer and kidney drugs, which offset weaker agricultural sales; it confirmed FY guidance despite a decline in its net profits. Sees 2025 Pharma sales and Adj. EBITDA margin at upper-end.

ENERGY

• 
  EV Credits, Clean Energy Credits - House Republicans are proposing to eliminate tax credits for electric vehicles and phase out clean-energy incentives as part of funding President Trump's tax cuts. These provisions, part of Biden's climate law, have been targeted by lawmakers looking to reduce costs while Trump criticises them as part of the "green new scam."


• 
  Phillips 66 (PSX) - ISS recommended that Phillips 66 shareholders vote for all four board candidates nominated by Elliott Investment Management. ISS praised the slate for its experience and independence, which it believes Phillips 66 needs.


• 
  Chevron (CVX) - Downgraded at HSBC to 'Hold' from 'Buy' with a USD 158 PT (prev. 176). HSBC notes the sharp fall in oil prices since early April has raised pressure on oil majors' financial frameworks, which were designed to work at USD 70/bbl.


• 
  Equinor (EQNR) - Considering cancelling its Empire Wind offshore wind project off New York due to growing political and regulatory challenges. The project, already under construction, is facing increased uncertainty amid shifting US policy and permitting pressures, continuing a trend of setbacks for European developers in the US offshore wind sector.


• 
  Exxon Mobil (XOM), Suncor Energy (SU) - Colorado's highest court on Monday rejected efforts by Exxon and Suncor to dismiss a lawsuit by the city of Boulder seeking to hold the fossil fuel companies responsible for climate change.


• 
  TotalEnergies SE (TTE) - Namibia expects TotalEnergies to take a final investment decision (FID) on its Venus discovery in the African country in the fourth quarter of 2026, the country's petroleum commissioner said.


• 
  Petrobras (PBR) - Will pay BRL 11.72bln (around USD 2.1bln) in Q1 dividends, slightly below the USD 2.2bln expected by analysts. This comes amid economic uncertainty from the trade war, which has pressured oil prices.


• 
  Venture Global (VG) Q1 2025 (USD): EPS 0.15 (exp. 0.28), Revenue 2.9bln (exp. 2.97bln). Guidance: Cut 2025 adj. EBITDA view to 6.4-6.8bln (exp. 6.54bln, prev. 6.8-7.4bln). The firm expects to export 145-150 cargos from the Calcasieu project (prev. 140-148) and 222-239 cargos (prev. 219-239) from the Plaquemines project this year.

FINANCIALS

• 
  Crypto - SEC Chairman Atkins suggested that the framework allowing brokers to act as custodians for digital assets may need to be repealed and replaced. He also proposed giving hedge funds the authority to hold their own cryptocurrency, citing limited responses from firms due to restrictive regulations under the previous administration.


• 
  Coinbase (COIN), Discover Financial (DFS) - Coinbase will replace Discover Financial in the S&P 500 before the open on May 19th, as Discover is set to be acquired by Capital One (COF), pending final conditions.


• 
  Unicaja Banco (UNI), Banco Sabadell (BNDSY), BBVA (BBVA) - Banco Sabadell has approached Unicaja Banco's key shareholders to discuss a potential deal, aiming to avert a hostile takeover by BBVA, Bloomberg reports. The informal talks are still under consideration and may not lead to formal merger discussions, sources said.


• 
  Munich Re (MURGY) Q1 2025 (EUR): Net income fell to 1.09bln (vs 2.12bln Y/Y), hit by 1.1bln in claims from January’s LA wildfires (which was down slightly vs its earlier estimate of 1.2bln).


• 
  Hannover Re (HVRRY) Q1 2025 (EUR): Net profit fell 14% to 480mln (exp. 447mln), with 765mln in large losses led by California wildfires; revenue rose +4.5% to 6.97bln (exp. 7.15bln). It backed its FY net profit guidance.

COMMUNICATIONS

• 
  Alphabet (GOOG) - Google is reportedly developing a software-based AI agent and a Pinterest-like feature ahead of its I/O developer conference, The Information reports. Separately, an article in Bloomberg states that Google is facing at least EUR 12bln in damage claims from EU price comparison websites over allegations it harmed competition by prioritising its own shopping service; these suits stem from a 2017 European Commission ruling, which found Google guilty of antitrust violations.


• 
  Meta Platforms (META), Snap (SNAP), ByteDance - Governments in the APAC region are leading efforts to protect children from online harms, imposing some of the toughest regulations on social media platforms like TikTok, Instagram, and Snapchat, Bloomberg reports. These new laws present significant challenges for companies like ByteDance, Meta, and Snap in markets with large, young user bases.


• 
  AMC Entertainment (AMC) - AMC Theatres will introduce a "50% Off Wednesdays" offer for AMC Stubs members from July 9th, providing a 50% discount on adult-evening base ticket prices across US locations.


• 
  Live Nation Entertainment (LYV) - Agreed to join a planned stadium district in Atlanta, its latest bet demand for live events can power an entire real-estate sector, WSJ reports. The company committed to lease a 5,300-seat entertainment venue at Centennial Yards, a megaproject under construction, valued at USD 5bln.


• 
  Telefonica (TEF) - Hired Citigroup to manage the sale of its Chilean unit, Telefonica Chile, after facing multiple quarters of losses. The company is also working with Rothschild and Santander to divest from other Spanish-speaking Latin American markets.

REAL ESTATE

• 
  Simon Property Group (SPG) Q1 2025 (USD): FFO 2.67 (exp. 2.91), Revenue 1.47bln (exp. 1.34bln). CEO highlighted strong financial and operational performance, including acquisitions and openings. Reaffirmed FY25 Real Estate FFO guidance of 12.40–12.65 (exp. 12.54).


• 
  Landsea Homes (LSEA), Apollo (APO) - New Home Co. will acquire Landsea Homes for USD 11.30/shr in cash, valuing the deal at approximately USD 1.2bln, a 61% premium to Landsea’s May 12th close. The transaction, expected to close early in Q3 2025, will create a top-25 national homebuilder, with USD 650mln in new equity from Apollo Funds.

13 May 2025 - 13:53- CryptocurrencyResearch Sheet- Source: Newsquawk