Daily US Equity Opening News - NVDA & AVGO run mfg. tests with INTC's 18A; Crypto-exposed stocks gain on Trump announcement

TODAY'S AGENDA:

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  DAY AHEAD: The US Day sees the release of the February ISM manufacturing report, where the headline is seen easing slightly, but remaining above 50.0 (primer below). US construction spending is expected to be unchanged in January. On the speaker's slate, Fed's Musalem (2025 voter) will give remarks on monetary policy.


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  US ISM MANUFACTURING PMI (15:00GMT/10:00EST): The consensus expects the February ISM manufacturing survey to print 50.8 from 50.9 in January. As a basis of comparison, S&P Global’s PMI data series showed Flash US manufacturing PMI rose to 51.6 in February (vs 51.2 in January), an 8-month high, while the Manufacturing Output index rose to 53.8 in February (from 51.8), an 11-month high. The survey compiler said that US business activity growth came close to stalling in February, as a renewed fall in services output offset faster manufacturing growth. Input cost pressures spiked higher, notably in manufacturing, as suppliers passed on tariff-related price hikes and wage pressures persisted. Manufacturing output rose for a second successive month, buoyed by higher new orders; but new order growth slowed, caused in part by a steepening loss of export orders. S&P said that many manufacturers also reported that the rise in production and demand was in part linked to front-running potential cost increases or supply shortages linked to tariffs. “A concern is the sharp, tariff-related, jump in manufacturing input prices, which will likely either put further upward pressure on inflation in the coming months or further squeeze profit margins among US companies,” S&P warned.


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  BROKER MOVES: CMG upgraded at Morgan Stanley; LUV downgraded at JPM. For the full list, please click here.
  


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  US MAJOR MORNING MOVERS RECAP: SNPS/ANSS, BIDU, TSLA, SPR, SHEL, INTC/NVDA/AVGO, CPRI/Crypto Names. To see the US pre-market movers, please click here.
  


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  WEEK AHEAD: This week's major highlights include tariff deadline; US NFP, ISM; China Two Sessions; ECB policy announcement. Click here for the Newsquawk preview of the week ahead. Notable corporates due to report this week include TGT, CRWD on Tuesday; MRVL on Wednesday; KR, AVGO, COST on Thursday. Click here for the Newsquawk weekly US earnings estimates report.
  

MACRO

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  US Inflation - Treasury Secretary Bessent expressed confidence that US consumer price increases will slow this year, following a poll indicating Americans want President Trump to focus more on reducing inflation. Bessent defended Trump's economic strategy, which includes tariffs, regulatory cuts, and cheaper energy over time.

EQUITY NEWS:

TECH

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  NVIDIA (NVDA), Broadcom (AVGO) - Reportedly running manufacturing tests with Intel (INTC) advanced process called 18A, according to Reuters sources.


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  NVIDIA (NVDA) - Servers used in a fraud case that Singapore announced last week were supplied by US firms and may have contained NVIDIA's advanced chips, a government minister said on Monday.


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  Synopsys (SNPS) - Plans to sell about USD 10bln in bonds this week to help finance its USD 34bln acquisition of Ansys (ANSS). Bank of America (BAC), HSBC (HSBC), and JPMorgan (JPM) are arranging investor calls. If completed, it will be 2025’s largest non-financial debt sale, Bloomberg said.


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  Allegro MicroSystems (ALGM), ON Semiconductor (ON) - ON Semiconductor is reportedly considering acquiring Allegro Microsystems, with the Co. working with advisers in recent months on the potential deal, Bloomberg reports.


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  Super Micro Computer (SMCI) - Expanding with a third Silicon Valley campus, adding nearly 3mln sqft. The project supports AI, cloud, and 5G IT solutions, creating jobs and advancing liquid-cooled data centres. San Jose’s mayor and PG&E (PCG) back the initiative, with construction beginning in 2025.


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  Arm Holdings (ARM) - Set to establish a base in Malaysia, with the agreement expected to be signed this week. It follows a meeting between Malaysia's PM and Arm CEO, with SoftBank (SFTBY) CEO also participating.


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  Apple (AAPL) - Some in Apple's AI division believe that a true conversational "LLM Siri" won't be ready until iOS 20 at best in 2027, Bloomberg's Mark Gurman reports. Gurman wrote "everything I've heard suggests" that iOS 19 will not include any significant consumer-facing changes to Apple Intelligence, making Apple a "half-decade late to the game."


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  Samsung Electronics (SSNLF) - Unveiled its Galaxy A56 5G, A36 5G, and A26 5G smartphones, introducing "Awesome Intelligence" for enhanced durability, longevity, and robust security. The Galaxy A26 starts at USD 299.99, the A36 at USD 399.99, and the A56 at USD 499.99.


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  Xiaomi (XIACY) - Launched its USD 1,560 Xiaomi 15 Ultra flagship smartphone, targeting the premium market, traditionally dominated by Apple (AAPL). It features a quad-camera system with Sony (SONY) image sensors and Leica optics, marking Xiaomi's push beyond its budget-friendly roots into high-end, camera-focused handsets.


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  AppLovin (APP) - Board of Directors authorised changes to its share repurchase programme; USD 500mln is now immediately available for repurchases, and future limits will increase by the preceding quarter’s FCF. The aggregate repurchase amount remains capped at the existing limit.


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  Microchip Technology (MCHP) - Announced additional restructuring actions and is to shut down Tempe Fab 2 in May 2025; reducing headcount at multiple facilities. Estimates restructuring costs by USD 30-40mln.


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  Reddit (RDDT) - Co-founder Alexis Ohanian reportedly joined billionaire Frank McCourt in his bid for TikTok.


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  Nokia (NOK), Lockheed Martin (LMT), Verizon (VZ) - Nokia, Lockheed Martin, and Verizon have integrated Nokia's military-grade 5G solutions into Lockheed's 5G.MIL Hybrid Base Station; collab enhances military communications, providing real-time data and situational awareness. The technology will be further tested at Lockheed's 5G.MIL Experimental Network in Florida.


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  Verizon (VZ) - A growing number of US lawmakers are raising questions about the potential for SpaceX CEO Elon Musk to interfere or take over a USD 2.4bln FAA telecommunications contract with rival Verizon. "Elon Musk’s tweets suggest he’s trying to interfere in the Air Traffic Control system – including trying to cancel FAA's USD 2.4bln competitively awarded telecommunications upgrade contract in favour of a sole source installation of his Starlink services – and sure seem to raise serious red flags," Senator Maria Cantwell said late Friday, Reuters reports.


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  Ramp - The corporate payments start-up backed by Peter Thiel and Thrive Capital, has almost doubled its valuation to USD 13bn, FT reports.


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  Viavi Solutions (VIAV) - Announced it's to acquire Spirent Communications' high-speed ethernet and network security business lines from Keysight Technologies (KEYS) for USD 410mln base cash consideration and all additional USD 15mln contingent cash consideration to be paid at closing.

COMMUNICATIONS

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  Baidu (BIDU) - Plans to raise USD 1.4bln via the sale of offshore yuan bonds, with a 5yr note offering yields of 2.6-2.8%, and a 10yr note offering 2.8-3.0%, Bloomberg reports. The bond deal, increasing from the initial USD 570mln, may price on Wednesday.


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  Disney (DIS) - Disney's Hulu faced technical issues during the Oscars ceremony on Sunday night, preventing tens of thousands of paying customers from logging in. Separately, MLB is facing challenges in its television deals as ESPN (owned by Disney), once a key partner, has indicated a decline in the value of MLB's TV rights, WSJ reports.

FINANCIALS

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  Deutsche Bank (DB) - Clashed with the ECB in 2024 over concerns that it underestimated potential bad loan losses, FT reports. The ECB repeatedly raised issues with Deutsche’s credit risk management and models. The bank ultimately raised its provisions to EUR 1.8bln, 22% higher than in 2023.


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  Barclays (BCS), Lloyds (LYG) - HMRC will end its 10-year contract with Barclays, awarding a GBP 99mln deal to Lloyds instead, FT reports. It follows environmental campaigns against Barclays over fossil fuel financing. The new GBP 334mln contract, spanning 12 years, will also include NatWest (NWG) and Citigroup (C).


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  Chubb (CB) - Agreed to acquire Liberty Mutual's insurance businesses in Thailand and Vietnam. The acquisition includes LMG Insurance in Thailand and Liberty Insurance in Vietnam, Bloomberg reports.


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  Blackstone (BX) - Adevinta ASA, the European online classifieds company backed by Blackstone and Permira, is close to finalizing a deal to sell its stake in the Austrian digital marketplace Willhaben. The transaction, valued at ~EUR 500mln, will involve JV partner Styria Media Group and European investor Sprints. The deal could be announced as soon as Monday, Bloomberg said.


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  American Express (AXP) - Executive VP Quinn Jessica Lieberman sold 3,028 shares on February 26th at USD 296.43/shr.


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  Crypto - Bitcoin surged on Sunday, surpassing USD 94,000, following US President Trump's comments about a strategic reserve of digital assets. Trump announced that XRP, Sol, ADA, BTC, and ETH would be included, with a White House cryptocurrency summit scheduled for March 7th.


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  Verizon (VZ), Accenture (ACN) - Announced a strategic partnership to accelerate the development and delivery of advanced cybersecurity solutions.

CONSUMER DISCRETIONARY

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  Prada SpA (PRDSY), Capri Holdings (CPRI) - Prada SpA is nearing a deal to acquire Versace from Capri Holdings for nearly EUR 1.5bln, Bloomberg reports. The agreement could be finalised this month after due diligence found no risks.


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  Tesla (TSLA) - Saw a 26% decline in sales in France in February, continuing its early-year slump. The EV maker registered only 2,395 cars, contrasting with a modest 0.7% drop in overall industry sales. Tesla's performance is attributed to challenges with model transitions and negative sentiment surrounding Elon Musk. Separately, Morgan Stanley reinstated Tesla as a "Top Pick" with nearly 50% upside to its target of USD 430, via Investing.


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  Volkswagen (VWAGY) - Volkswagen Group of America is recalling 60,490 vehicles, including 2021-2023 ID.4, 2022-2023 Audi Q4 e-Tron, and Q4 e-Tron Sportback models. The issue involves the instrument panel failing to display the transmission gear lever indicator correctly, violating Federal Motor Vehicle Safety Standard 102.


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  Honda (HMC) - Decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter.


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  BYD (BYDDY) - Continued its strong performance in February, with a +161% Y/Y increase in sales, reaching over 318,000 pure electric and hybrid vehicles. Co. also set a record for overseas sales, which totalled 67,025 units, maintaining the momentum from January.


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  XPeng (XPEV) - Delivered 30,453 Smart EVs in February (+570% Y/Y); XPENG MONA M03 deliveries surpassed 15,000 units for the third consecutive month; cumulative deliveries of the XPENG P7+ exceeded 30,000 within the first three months of launch.


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  Li Auto (LI) - Delivered 26,263 vehicles in February (+29.7% Y/Y).


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  Zeekr (ZK) - Announced 31,277 vehicle deliveries in February. Delivered 14,039 Zeekr brand vehicles (+86.9% Y/Y, and +17.6% M/M).


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  Chipotle Mexican Grill (CMG) - Upgraded to 'Overweight' from 'Equal Weight' at Morgan Stanley with a PT USD 70 (prev. 65). The bank notes CMG has continued to fade on weak sales data and growth stock pressures, which creates an opportunity if one thinks these are short term headwinds; Chipotle's drivers of product, marketing, and throughput should still be effective in delivering a "decent" 2025 and beyond.


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  Seven & i (SVNDY) - Set to finalise the resignation plan for President Isaka at its board meeting on Thursday. Co. is reportedly considering external director and special committee chair Dacus as his replacement.


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  Adtalem Global (ATGE) - CEO is focused on organic growth in 2025, especially in nursing education, the company’s largest sector, WSJ reports. Despite political and economic uncertainties, CEO emphasised preferring to expand Adtalem’s existing business rather than acquiring new companies.


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  Bunzl (BZLFY) - FY24 revenue fell slightly, statutory profit before tax dropped 3.6% due to a currency loss from its Argentina business sale, but adj. operating profit grew +7.2% and it raised its dividend +8.2%. FY revenue GBP 11.8bln (exp. 11.75bln), EBIT GBP 799.3mln (exp. 922mln). Further GBP 200mln share buyback for 2025 is underway.

CONSUMER STAPLES

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  US Ags - China is considering retaliatory measures, including tariffs and non-tariff actions, on US agriculture and food products in response to tariffs imposed by the Trump administration, set to take effect on Tuesday, China's Global Times reported citing an anonymous source. Separately, US farmers are set to receive the first USD 10bln of a UDS 30bln fund approved by Congress to support them during a market downturn; Agriculture Secretary Rollins confirmed that funds would start being distributed in the next few weeks.


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  Philip Morris International (PM) - Considering selling its US cigar business for over USD 1bln as part of its shift toward smoke-free products, Bloomberg reports. The company is working with advisers to assess buyer interest.


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  Kroger (KR) - CEO McMullen resigned. Ronald Sargent was appointed interim CEO and Chairman. Expects FY adj. EPS slightly above the upper-end of guidance.

ENERGY

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  Shell plc (SHEL) - Exploring the sale of its chemicals assets in the US and Europe, as part of its strategy to focus on more profitable operations, WSJ reports. Co. is working with Morgan Stanley (MS) on a review of its chemicals division, though no final decisions have been made.


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  BP (BP) - Elliott Management is pressuring BP to abandon all renewable energy projects and focus entirely on oil and gas, The Times reports. Despite BP's decision to reduce renewable investments by over GBP 5bln and increase oil and gas spending to GBP 10bln, Elliott believes the shift does not go far enough.


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  Occidental Petroleum (OXY) - Announced offer to exercise warrants at a temporarily reduced price of USD 21.30/shr and would get net proceeds of about USD 1.6bln.


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  Saudi Aramco - Set to announce changes to its USD 124bln annual dividend this week, Bloomberg reports. The decision will impact Saudi Arabia’s finances, as Aramco may either maintain elevated payments which would worsen its balance sheet, or cut the payout, risking a larger budget deficit.


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  China LNG - China's LNG imports fell to a five-year low in February, reaching 4.5mln tons, as weak domestic demand and high European prices drew cargoes away. For the second straight month, Japan overtook China as the largest importer of LNG.


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  Range Resources (RRC) - Raised quarterly dividend 12.5% to USD 0.09/shr.


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  Cheniere Energy (LNG) - Director Andrea Botta sold 9,000 shares on February 27th at USD 219.5101/shr.

INDUSTRIALS

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  Caterpillar (CAT) - The US State Department has approved the potential sale of nearly USD 3bln worth of bombs, demolition kits and other weaponry to Israel, the Pentagon announced on Friday.


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  Spirit AeroSystems (SPR) - Reported higher-than-expected fourth-quarter losses and warned it requires additional funding to maintain operations. Q4 2024 (USD): Adj. EPS -4.22 (exp. -3.01), Revenue 1.7bln (exp. 1.94bln). It posted a 2.1bln net loss for 2024, and said it requires additional funding; Boeing (BA) and Airbus (EADSY) have provided financial support, but ongoing losses and production challenges persist, reports added. CEO sees a smooth transition ahead of its anticipated mid-2025 acquisition by Boeing.


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  Airbus (EADSY) - Saw an improvement in its February aircraft deliveries, reaching between 35-39 jetliners (vs 25 in January). This rebound indicates progress in addressing supply chain issues that have impacted its production, after losing out to Boeing in January for the first time in recent history, Bloomberg adds.


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  Air France-KLM (AFLYY) - Plans to participate in the privatization of Portugal’s state-owned airline TAP SA, BBG reports. CEO confirmed that Air France-KLM is ready to submit its candidacy for the TAP privatisation process, highlighting the airline's strong hub in Lisbon.


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  Alaska Airlines (ALK) - Alaska Airlines flight attendants, represented by the Association of Flight Attendants, ratified a new three-year contract; the agreement includes higher pay, improved scheduling, better benefits, and more.


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  ADT (ADT) - Filed to sell 70mln shares of common stock for holders


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  Lockheed Martin (LMT) - Australia's opposition party has pledged AUD 3bln for the purchase of 28 new Lockheed Martin F-35 fighter jets if it wins the upcoming elections, which are expected by mid-May 2025, Bloomberg reports.


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  ATI (ATI) - Reached a tentative six-year Master Contract agreement with the United Steelworkers union. The agreement will be presented to the USW membership for ratification votes.


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  FedEx (FDX) - A FedEx Boeing 767 cargo plane struck a bird while departing Newark Airport, New Jersey, on Saturday and made an emergency landing with one engine on fire, Reuters reports.


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  Southwest Airlines (LUV) - Downgraded to 'Underweight' from 'Neutral' at JPMorgan, noting the stock's "valuation premium can't be ignored". JPM believes Southwest's best margin and return on invested capital "days lie in the past". Meanwhile, the WSJ reported, Southwest is now making changes it "once considered unthinkable,"; removing its open seating and egalitarian cabins to chase higher revenues, hiring and promotions were put on ice, and festive rallies for employees have been cancelled.

MATERIALS

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  US Lumber Imports - President Trump has ordered the Commerce Department to investigate the national security implications of lumber imports, potentially laying the groundwork for new tariffs. The probe will focus on whether countries like Canada, Germany, and Brazil are unfairly dumping lumber into the US market, undermining American economic interests.


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  Rio Tinto (RIO) - Added to Goldman Sachs' European Conviction List. Separately, Rio's East Intercourse Island (EII) facility at Dampier Port in Western Australia's Pilbara region has resumed operations following the disruption caused by Tropical Cyclone Sean.


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  Posco Holdings (PKX) - Plans to expand its LNG business to capitalise on the growing market and the US lifting a moratorium on new LNG export licenses. Co. aims to strengthen its supply chain, covering production, storage, transportation, and power generation.

HEALTHCARE

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  Johnson & Johnson (JNJ) - Urging a judge to approve its USD 9bln bankruptcy plan to settle thousands of lawsuits over talc-related cancer claims, BBG reports. Co. argues that the plan is the only viable option to resolve over 15 years of litigation, while opponents criticise the plan's support process as flawed.


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  Roche (RHHBY) - Genentech, part of Roche, shared positive results from Stage 2 and 3 of the NIH-sponsored Phase III OUtMATCH study. Xolair proved more effective with fewer side effects than multi-allergen oral immunotherapy (OIT), which had higher adverse event rates, causing more discontinuations in the OIT group.


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  Amgen (AMGN), AstraZeneca (AZN) - Amgen and AstraZeneca's Phase 3 WAYPOINT trial showed that TEZSPIRE significantly reduced nasal polyp severity, nasal congestion, and the need for surgery and corticosteroids in patients with chronic rhinosinusitis.


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  Canopy Growth (CGC) - Launched a USD 200mln at-the-market equity programme, enabling the company to issue and sell common shares in public offerings in the US and Canada.


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  Pfizer (PFE) - Abrysvo got a positive CHMP opinion for adults aged 18 to 59.


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  Boston Scientific (BSX) - To acquire the remaining 90% stake of SoniVie for USD 360mln.

REAL ESTATE

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  Welltower (WELL) - Revealed its acquisition of a CAD 4.6bln portfolio of 38 ultra-luxury senior housing communities and nine development parcels from Ontario Teachers' Pension Plan. The portfolio, valued at EUR 3.2bln, spans Toronto, Vancouver, and Victoria. Meanwhile, formed a long-term partnership with Amica Senior Lifestyles.

03 Mar 2025 - 13:50- CryptocurrencyData- Source: Newsquawk