Daily US Equity Opening News - NKE to raise prices; CMS expands Medicare Advantage audits; SNOW rises after earnings

TODAY'S AGENDA:

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  US INDEX FUTURES: ES -0.1%, NQ unch, YM -0.3%, RTY -0.6%.


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  DAY AHEAD: US existing home sales are seen edging higher in April. Elsewhere, the KC Fed index is due. On the speakers’ slate, Fed’s Williams (voter) is scheduled to speak; from the ECB, de Guindos and Elderson are scheduled. Today’s supply comes via the US selling USD 18bln of 10yr TIPS, and the announcement of the sizes for next week’s 2s, 5s, 7s issuance (no changes expected). In energy, the EIA will report weekly natgas inventories (expected to build by 115bcf). Notable US corporate earnings due today include ROST, INTU, WDAY, ADSK, DECK, CPRT.


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  BROKER MOVES: ZM upgraded at Needham; MRVL downgraded at Melius Research. To see the full list, please click here.
  


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  MAJOR MORNING MOVES RECAP: MANU, SNOW, NVTS, LUMN, NKE, URBN, HUM/CVS/UNH, WMT. To see the full list, click here.
  


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

EQUITY NEWS:

MACRO

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  Megabill - The US Tax/Spending Reconciliation Bill passed in the House vote. 215-214, Republicans Massie & Davidson voted No, HFC Chair Harris voted Present (i.e. he abstained). Last-minute amendments, including earlier Medicaid work requirements, helped secure GOP support amid President Trump’s push. The bill was revised and will accelerate Medicaid work requirements to December 2026 from 2029, ending wind and solar tax credits by 2028 instead of 2031, and raising the SALT deduction cap to USD 40,000 (from USD 30,000) to appease members from high-tax states. The bill would add USD 2.3tln to the US deficit over 10 years, the CBO said. Now the bill is to head to the Senate for further approval, where they are expected to remake the bill, particuarly the tax-cut package.


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  US Economy - JPMorgan (JPM) CEO Jamie Dimon warned that the US risks stagflation amid geopolitical tensions, high deficits, and persistent price pressures. He supports the Fed's cautious approach to monetary policy, advising patience before making further decisions.


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  US-Canada - US Treasury Secretary Bessent and Canadian Finance Minister Champagne held productive talks on the sidelines of the G7 meeting, aiming to ease months-long trade tensions between the two countries. Both expressed satisfaction with progress and unity among G7 members.

TECH

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  Apple (AAPL) - Goldman Sachs maintained a 'Buy' rating and USD 253 PT on Apple ahead of WWDC 2025 on June 9th. The bank expects progress in AI integration with developer access to AI models and potential Gemini AI (GOOG) integration on iPhones, but notes that Apple must prove Apple Intelligence’s success to become a clear demand driver.


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  Snowflake (SNOW) Q1 2025 (USD): Adj. EPS 0.24 (exp. 0.21), Revenue 1.04bln (exp. 1.00bln). Product revenue +26% Y/Y to 996.8mln, RPO 6.7bln. CEO highlighted strength in analytics and AI opportunities. Outlook: Sees Q2 product revenue 1.035-1.04bln (+25% Y/Y), and raises its FY25 product revenue view to USD 4.325bln (prev. 4.28bln).


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  Analog Devices Inc (ADI) Q2 2025 (USD): Adj. EPS 1.85 (exp. 1.68), Revenue 2.64bln (exp. 2.50bln). Outlook: Q3 adj. EPS 1.92 (exp. 1.81), Q3 revenue 2.65-2.85bln (exp. 2.61bln).


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  Lenovo (LNVGY) - Reported a 23% revenue increase to about USD 17bln, its fourth consecutive quarter of double-digit growth, driven by PC market share gains and AI server demand. However, net income fell 64% to roughly USD 90mln due to derivative losses and pricing pressures in a stagnant PC market.


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  Navitas Semiconductor (NVTS), Nvidia (NVDA) - Navitas shares rose by almost 200% afterhours following news that it will partner with Nvidia on its next-generation 800 V HVDC architecture for Kyber rack-scale systems.


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  Synaptics (SYNA) - Appointed Rahul Patel as president, CEO, and director, succeeding interim CEO and CFO Ken Rizvi. Rizvi, who served as interim CEO since February 2025, will remain CFO. Patel previously spent a decade at Qualcomm (QCOM).


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  Palantir (PLTR) - Awarded a USD 795mln US Army contract modification for Maven Smart System software licenses.


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  Fair Isaac (FICO) - Following the stock's recent selloff of over 20% due to FHFA Director Pulte's noting he's actively looking at shifting to a bi-merge credit score from a tri-merge credit score, BofA maintained their 'Buy' rating. The firm notes that Pulte's stance presents a sentiment headwind and multiple compression in the near term, but "does not fundamentally change" the medium-to-long-term story for FICO; FICO historically has leaned into share selloffs by ramping up buybacks. At Raymond James, they noted the FHFA could direct Fannie and Freddie to no longer require the FICO score at all, potentially in favour of the VantageScore alternative which is co-owned by the three credit bureaus, but this is a "low probability nuclear option" by the FHFA that would threaten to disrupt the entire mortgage-backed security ecosystem and would be poorly received by owners of Fannie and Freddie mortgages


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  Marvell Technology (MRVL) - Downgraded to 'Hold' from 'Buy' at Melius Research noting there is a risk that shares stay rangebound and/or do not perform as well as the bulk of its semis and hardware coverage for the rest of 2025 and 2026; there is not much revenue upside in calendar 2025 due to a slower ramp of Amazon's (AMZN) Tranium, and the case for upside in 2026-2028 is clouded by Marvell's roles associated with AWS' Trainium 3 and Trainium 4 accelerators.


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  Strategy (MSTR) - Filed for offering of up to USD 2.1bln of 10% Series A Perpetual Strife Preferred Stock (STRF), via SEC filing.


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  Seagate (STX) - Board approved USD 5bln share buyback programme.

COMMUNICATIONS

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  Comcast (CMCSA), Disney (DIS) - Comcast's NBCUniversal has made a bid to Major League Baseball to acquire the package of regular-season and postseason games that ESPN is exiting, offering significantly less than ESPN’s (DIS) current USD 550mln/yr deal, WSJ reports. ESPN ended its 35-year MLB partnership by opting out of the final three years of its contract after the 2025 season.


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  Lumen Technologies (LUMN), AT&T (T) - AT&T will acquire Lumen’s consumer fibre business for USD 5.75bln in cash, adding 1mln customers and expanding coverage across eight US cities, Reuters reports. The deal is expected to close in H1 2026 and will help Lumen cut USD 4.8bln in debt, and shift its focus to enterprise fibre and AI infrastructure. AT&T reiterated its FY25 financial and operational guidance, and share repurchase plans.


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  Zoom Communications (ZM) - Lifted its annual revenue forecast on strong hybrid work demand and AI integration, boosted by AI Companion upgrades and an expanded buyback programme. Q1 2025 (USD): EPS 1.43 (exp. 1.31), Revenue 1.17bln (exp. 1.17bln). Online average monthly churn of 2.8%. Exec highlighted AI innovation momentum and stable customer buying behaviour. Outlook: Q2 EPS 1.36-1.37 (exp. 1.34), Q2 revenue 1.195-1.2bln (exp. 1.19bln), FY26 EPS 5.56-5.59 (exp. 5.37), FY26 revenue 4.81-4.82bln (exp. 4.79bln). Post earnings, Needham upgraded ZM to 'Buy' from 'Hold' believing the company is at an "interesting inflection point" where revenue headwinds from Online are easing, dilution from stock-based compensation has peaked and the share count can decrease with buybacks moving forward.


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  Manchester United (MANU) - Shares slide in premarket following Manchester United's defeat against Tottenham in the Europa League final, missing out on both the winner's prize and place in the Champions League next season.


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  Millicom (TIGO), Telefonica (TEF) - Millicom will acquire Telefonica Uruguay for USD 440mln, expanding its South American footprint. The deal is expected to be accretive from 2026, driven by operational synergies and a strong 76% gross profit margin. Millicom reaffirmed its 2025 targets despite a Q1 revenue miss and approved a USD 3.00/shr dividend.

FINANCIALS

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  JPMorgan (JPM) - CEO Jamie Dimon affirmed the bank’s long-term commitment to investing in China despite tensions between the US and Chinese governments, stating they will continue to grow by dealing with the current global realities rather than an ideal world.


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  Dun & Bradstreet (DNB) - Clearlake Capital has secured USD 5.5bln in private debt to acquire Dun & Bradstreet. The deal includes a USD 5bln term loan and a USD 500mln revolver, with the loan priced at SOFR +5.5% and issued at 99c on the dollar, marking one of the largest private credit deals to date.


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  Fannie Mae, Freddie Mac - US President Trump said he is giving "very serious consideration" to taking Fannie Mae and Freddie Mac public after over a decade under government control, citing strong cash generation and timing as favourable.


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  Goldman Sachs (GS) - Merging three Asian investment banking businesses it previously managed separately into a single unit to integrate its regional deals advisory and capital market capabilities, according to a memo reviewed by Reuters.


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  Crypto - Bitcoin surged past USD 111k for the first time amid growing institutional demand. Ether also jumped.


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  Citi (C) - Launched Citi AI, a suite of AI tools for its employees in Hong Kong. The tools support internal operations including information retrieval from Citi's policy library, document summarisation and creation of electronic communications drafts among others.


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  Banco BPM (BNNCY), UniCredit (UNCRY) - Italy’s market regulator Consob has suspended UniCredit's takeover bid for Banco BPM for 30 days amid ongoing talks with the government to clarify conditions tied to the deal, Bloomberg reports. The suspension aims to resolve uncertainties affecting investors’ ability to make informed decisions and to update the offer document.


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  Generali (ARZGY) Q1 2025 (EUR): Net profit 1.195bln (vs 1.26bln Y/Y) due to one-off gains in 2024, but adj. net profit rose 7.6% Y/Y. Is property-and-casualty division drove better-than-expected results.

CONSUMER DISCRETIONARY

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  Nike (NKE) - Will raise prices next week, increasing adult apparel and equipment by USD 2-10, with a USD 5.00 hike for items priced between USD 100-150; shoes over USD 150 may rise up to USD 10. Children’s products and Air Force 1 shoes are exempt. Nike also plans to resume selling directly on Amazon (AMZN) in the US after six years.


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  Ralph Lauren Corp (RL) Q4 2025 (USD): Adj. EPS 2.27 (exp. 1.99), Revenue 1.7bln (exp. 1.64bln); approved 10% dividend increase and 1.5bln expansion of share repurchase programme. Sees 2026 net revenue growth of low single digits on a constant-currency basis.


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  LVMH (LVMUY) - Bernard Arnault urged the EU to engage in constructive talks with the US, expressing concern that current negotiations are not progressing well. Speaking during a Senate hearing in Paris, he called for reciprocal concessions to resolve trade tensions effectively.


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  Walmart (WMT) - Plans to cut about 1,500 jobs as part of a restructuring to simplify operations, impacting global technology, US e-commerce fulfilment, and its advertising unit Walmart Connect, Reuters reports. The company will also eliminate some roles while creating new ones amid ongoing efforts to sharpen focus and improve efficiency.


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  Advanced Auto Pricing (AAP) Q1 2025 (USD): Adj. EPS -0.22 (exp. -0.69), Revenue 2.6bln (exp. 2.51bln). Outlook: FY25 adj. EPS 1.50-2.50 (exp. 1.54), FY25 revenue 8.4-8.6bln (exp. 8.5bln).


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  Estee Lauder (EL), L’Oreal (LRLCY) - Estee Lauder and L’Oreal are being hit by a 14-month slump in Hainan’s travel-retail sector, with duty-free sales down 10.8% YTD and both shopper numbers and product volumes falling over 25% amid weak post-Covid recovery in Chinese spending, Bloomberg reports.


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  Urban Outfitters (URBN) - Shares rose after Q1 results beat estimates, driven by a sales rebound at its stores. The company noted limited tariff impact so far and plans to “gently and sparingly” raise prices if needed to offset trade tensions. Q1 2025 (EUR): EPS 1.16 (exp. 0.83), Revenue 1.33bln (exp. 1.29bln). Total retail segment net sales rose 6.4%, with comparable retail segment net sales up 4.8%. Exec highlighted record revenues and profits, driven by broad sales growth and improved profitability.


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  Honda Motor (HMC) - To invest about INR 9.2bln to add a new production line at its fourth motorcycle plant in India. The new line, starting in 2027, will have an annual capacity of 650k units, increasing total plant capacity to 2.61mln units, the largest Honda motorcycle assembly plant globally.


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  MercadoLibre (MELI) - CEO Marcos Galperin will step down from the CEO role, becoming executive chairman in 2026 after leading the company for over 25 years. Ariel Szarfsztejn, current commerce president, will succeed him as CEO on January 1st, 2026.

MATERIALS

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  US Steel (X), Nippon Steel (NPSCY) - President Trump has 15 days to make a final decision on Nippon Steel’s USD 14.9bln acquisition of US Steel following a confidential 45-day national security review. Nippon Steel aims for full ownership and has proposed significant US investments to address security concerns.


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  Johnson Matthey (JMPLY), Honeywell (HON) - Honeywell is nearing a GBP 1.8bln deal to acquire Johnson Matthey’s catalyst unit, FT reports. Johnson Matthey, which is facing activist pressure and underperformance, confirmed talks were advanced. The move aligns with Honeywell’s automation focus and follows other recent US acquisitions of UK assets.


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  Rio Tinto (RIO) - Announced that CEO Jakob Stausholm will step down later this year, but will remain in his role until a successor is appointed; it added that a search is underway for its next chief. Elsewhere, the miner is to start early works to increase Amrun mine's bauxite production, aiming for first output by 2029 with the Kangwinan project to nearly double Weipa Southern operations' capacity by +20mln tonnes.

INDUSTRIALS

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  CATL (300750 CH/3750 HK) - The largest electric-vehicle battery producer CATL is rewarding suppliers who reduce emissions as part of its plan to be carbon neutral in core operations by 2025 and throughout its supply chain by 2035, Bloomberg reports.


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  EnerSys (ENS) Q4 2025 (USD): EPS 2.97 (exp. 2.78), Revenue 974.8mln (exp. 973.5mln). Outlook: Q1 EPS 2.03-2.13 (exp. 2.40), Q1 revenue 830-870mln (exp. 906.9mln), citing seasonal softness and tariff headwinds; paused FY guidance, but expects adj. operating earnings growth to outpace revenue.


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  RTX (RTX) - Awarded a USD 379.78mln US Air Force contract modification for GPS next-generation operational control system support, extending the base period to 16 months plus a 12-month option; total contract value is now USD 4.51bln.


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  BAE Systems (BAESY) - Awarded a USD 423.35mln US Army contract for self-propelled howitzer systems production.


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  EasyJet (ESYJY) - Said strong demand for flights and holidays supports its confidence in meeting FY profit forecasts, with summer bookings tracking well.

ENERGY

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  OPEC - OPEC+ is discussing a potential super-sized output increase of +411k BPD for July, which would be three times the initially planned hike, marking a third consecutive month of added supply, Bloomberg reports. No final decision has been made ahead of the June 1st meeting.


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  US Energy Credits - The House GOP’s revised tax bill ends clean energy tax credits years earlier than initially planned, aiming to appease fiscal hardliners seeking deeper cuts to incentives from Biden’s climate law.


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  BP plc (BP) - Signed a long-term LNG sale and purchase agreement with Zhejiang Energy to supply up to 1mln tons per annum for over 10 years on a delivered ex-ship basis.


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  Venture Global (VG) - Poised to become the largest US LNG company by next year if it proceeds with its CP2 project in Louisiana and continues overproduction at its existing plants, according to Reuters citing LSEG data and company statements.


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  Sable Offshore (SOC) - Announced a USD 200mln common stock offered - 8.7mln share spot secondary priced at USD 29.50.

HEALTHCARE

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  Make America Healthy—The widely anticipated “Make America Healthy Again” report by the US HHS secretary is expected to criticise food additives, lobbyists, and vaccines but go easier than expected on pesticides in farming, according to the WSJ.


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  Medicare Advantage Audits - CMS announced a major expansion of Medicare Advantage audits, aiming to review all eligible contracts, speed up audits from 2018–2024, and recover past overpayments in coordination with HHS Office of Inspector General. Additional resources will be deployed to accelerate audit completion. Shares of Humana (HUM), UnitedHealth (UNH), CVS Health (CVS), and Elevance (ELV) are weighed by the news in premarket.


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  Vigil Neuroscience (VIGL), Sanofi (SNY) - Sanofi will acquire Vigil Neuroscience for USD 470mln, paying USD 8/shr plus a USD 2/shr contingent value linked to an Alzheimer's drug. The deal is expected to close in Q3 and aims to strengthen Sanofi’s neurological pipeline without affecting its 2025 outlook. Vigil’s antibody program will return to Amgen (AMGN).
  


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  Pfizer (PFE) - Failed to gain support from FDA advisers for a major expansion of its prostate cancer drug Talzenna, with the panel unanimously voting that the data was unconvincing, Bloomberg reports. The setback threatens Pfizer’s broader ambitions for the drug, though the FDA is not bound by the panel’s recommendation.


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  Cigna (CI) - Cigna’s drug benefits unit introduced a new pricing option for weight-loss drugs, allowing patients to pay less than cash prices for Zepbound (LLY) or Wegovy (NVO) but more than typical copays. The plan reduces costs for health insurers, aiming to expand employer coverage and increase access to high-demand obesity treatments, Bloomberg reports.


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  Eli Lilly (LLY) - Australia has approved Eli Lilly’s Kisunla (donanemab) for treating early Alzheimer’s in adults without two ApoE4 genes.

REAL ESTATE

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  Crown Castle (CCI) - Cut its quarterly dividend by 32% to USD 1.0625/shr.

22 May 2025 - 13:55- Geopolitical- Source: Newsquawk