Daily US Equity Opening News - Stocks gain on geopolitical de-escalations; AMZN to invest USD 54bln in UK

TODAY'S AGENDA:

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  US INDEX FUTURES: ES +0.7%, NQ +1.0%, YM +0.7%, RTY +0.9%.


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  DAY AHEAD: In the US, Fed Chair Powell will deliver his semi-annual testimony to House lawmakers at 15:00BST/10:00EDT, under continuing pressure from US President Trump to shift policy in a dovish direction (see below for our preview). Prior to his appearance, his text release was published at 13:30BST/08:30EDT and he largely echoed his post-FOMC press conference remarks and reaffirmed his wait-and-see position on rate cuts. Bowman and Waller, for now, remain the outliers on the dovish side and Powell didn't echo any of their views of looking for a July rate cut, so of course, attention will now reside on the Q&A later today; other Fed officials speaking today include: Barr (voter), Collins (2025 voter), Schmid (2025 voter), Hammack (2026 voter), and Kashkari (2026 voter). On the supply front, the US will sell USD 69bln of 2yr notes. Elsewhere, BoE governor Bailey will deliver testimony to a Lord Committee; BoE's Ramsden will also speak. ECB President Lagarde and Lane are due to make remarks. Today's US corporate earnings slate includes FedEx (FDX).


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  BROKER MOVES: EA upgraded at Roth Capital; DG downgraded at Goldman Sachs. Click here for the full list.
  


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  MAJOR MORNING MOVES RECAP: Mag 7, KBH, NVO, GOOG, UBER, EA, AMZN, SBUX. For the full list, click here.
  


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  RECAP - Iran-Israel-US - US President Trump announced that a ceasefire between Israel and Iran is now in effect, urging both sides to respect it. Iran stated it would abide by the ceasefire if Israel did, while Israel confirmed it had achieved its objectives in Iran and officially recognised the ceasefire, warning it would respond forcefully to any violations. On Monday, Iran launched missiles at a US airbase in Qatar, which were intercepted, in retaliation for weekend strikes on its nuclear sites. Israel reported four deaths from overnight Iranian attacks, while Tehran said the ceasefire followed Iran’s successful strike on the US base.


• Click here for our rolling news updates and analysis on the Israel-Iran conflict.


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  PRIMER - FED CHAIR POWELL TESTIMONY (15:00BST/10:00EDT): Fed Chair Powell will deliver his semi-annual testify before House and Senate committees this week (House on Tuesday; Senate on Wednesday) and justify keeping interest rates steady until at least September, despite President Trump’s calls to cut borrowing costs. The testimony follows the Fed’s fourth consecutive rate hold amid concerns over rising oil prices and global economic risks. Last week, the FOMC kept rates unchanged at 4.25-4.50%, as expected, with its 2025 median rate projection also left unchanged at 3.9%, signalling 50bps of cuts this year; the 2026 and 2027 dots rose to 3.6% and 3.4% (from 3.4% and 3.1%). Seven members now expect no cuts this year (up from four), two see 25bps of cuts (down from four), eight foresee 50bps (down from nine), and two expect 75bps (unchanged). GDP forecasts were lowered to 1.4% for 2025 (prev. 1.7%) and 1.6% for 2026 (prev. 1.8%), while unemployment forecasts rose, except for the long run. Headline and core PCE inflation forecasts increased, with 2025-end headline inflation at 3.0% (prev. 2.7%) and 2.4% for 2026 (prev. 2.2%). The Committee said uncertainty has "diminished further but remains elevated," removing prior warnings about stagflation risks, though higher inflation and lower growth keep those risks present. At his post-meeting press conference, Fed Chair Powell largely repeated familiar remarks, saying a patient, wait-and-see approach remains appropriate. He emphasised that projections are uncertain and not a fixed plan, recommending focus on near-term forecasts. Powell said the time will come for more confidence but cannot specify when. Given the current labour market and falling inflation, holding rates was the right course, he said, and he expects to learn more over the summer and make better decisions after a "couple of months." Powell noted favourable inflation over the past three months but warned of upcoming tariff impacts and higher consumer costs, underscoring the need for patience. He said rates must stay high to bring inflation down fully and described policy as "modestly restrictive," similar to his May comments that policy is "modestly or moderately restrictive." Since the meeting, signs are emerging that other influential Fed policymakers are moving into the 'rate cut camp'; Governor Bowman (voter) supports an interest rate cut at July’s meeting if inflation remains muted; she views tariffs’ inflation impact as likely temporary and small, aligning with Governor Waller’s recent comments. Meanwhile, US President Trump continues to fire criticism at the Fed Chair; after the meeting, Trump said "Too Late" Powell is "the WORST," adding that he is a "real dummy, whoʼs costing America [billions]", and following that up this week, stating that "we should be at least two to three points lower", and that Powell should explain to lawmakers "among other things, why he is refusing to lower the Rate." To view the full Newqsuawk Fed Chair Powell testimony primer, click here.
  

GEOPOLITICS

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  Iran-Israel-US - US President Trump announced a ceasefire between Iran and Israel, claiming both sides agreed to stop attacks. Iran state TV said a ceasefire was “imposed” on Israel, but Israel has not confirmed. Iran launched missiles at Israel, killing three. Iran’s foreign minister said if Israel stops attacks by 04:00 Tehran time, Iran will halt its response.

MACRO

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  Big, Beautiful Bill - Senate Republicans are willing to support a USD 40k cap on state and local tax deductions, as demanded by key House lawmakers in President Trump’s tax package, but propose a lower income threshold. Senator Markwayne Mullin plans to present this offer to House Republicans.


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  US-Japan - Japan and the US are still finalising the date for their next cabinet-level trade talks, with no set deadline, according to Japan’s chief trade negotiator Ryosei Akazawa. He downplayed the significance of the July 9th tariff hike deadline, stating discussions will continue without a fixed cutoff.


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  US-Asia - US trade deficit with Asia is widening as importers increase shipments ahead of President Trump’s reciprocal tariffs deadline; Vietnam, Taiwan and Thailand set export records to the US in May, while South Korean exports neared a record and continued growing in early June.

EQUITY NEWS:

TECH

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  Nvidia (NVDA) - CEO has begun selling shares under a plan allowing up to USD 865mln; He sold 100k worth USD 14.4mln between June 20-23, following a 10b5-1 plan adopted in March, and disclosed last month in Nvidia’s quarterly report.


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  Broadcom (AVGO) - CFO and CAO Kirsten Spears sold 56,310 shares on June 18th at USD 251.749/shr.


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  Uber (UBER) - Announced a limited number of Waymo autonomous vehicles will gradually become available on the Uber app for riders in select areas of Atlanta, GA; to start today, on June 24th.


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  Samsung Electronics (SSNLF) - Samsung will reportedly unveil new foldable smartphones and Galaxy devices with AI features at its Unpacked event on July 9th in New York, marking “the next evolution” of its Galaxy phone lineup. Separately, DigiTimes reports that Samsung will expand investment in sixth-generation 10nm-class (1c) DRAM production in H2 2025, aiming to regain semiconductor leadership, according to industry observers; the move follows recent yield improvements and intensifies competition with SK Hynix (HXSCL), which is also advancing 1c DRAM and HBM4 technologies.


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  Asia Tech Stocks - JPMorgan expects Asian tech stocks to rise another 15-20% in 2025, driven by strong momentum in AI. The bank advises maintaining exposure to AI stocks over the next three months, citing growth in datacentre capex this year and increased confidence in 2026 growth.


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  IBM (IBM) - IBM and RIKEN unveiled the first IBM Quantum System Two outside the US, featuring IBM’s 156-qubit Quantum Heron processor. Heron delivers a two-qubit error rate of 3x10^-3 and a CLOPS speed of 250,000, making it the world’s most performant quantum processor, supporting advanced quantum-classical research, it said.


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  Abridge AI - Valued at USD 5.3bln, via WSJ.

COMMUNICATIONS

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  Alphabet (GOOG) - The UK competition regulator plans to designate Google with "strategic market status," giving it greater control over how Google operates search services, Reuters reports. Proposed measures include easier access to alternative search providers, fairer ranking rules, and more transparency for content publishers. Google warned the process may have significant implications for UK businesses and consumers.


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  Meta Platforms (META) - Meta CEO Mark Zuckerberg held acquisition talks with video startup Runway AI as part of its AI talent recruitment push, Bloomberg reports. No formal offer or price was made, and talks have ended. Meta recently invested billions in Scale AI to build a superintelligence team.


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  Tencent (TCEHY) - Chinese investors have reduced their holdings in Tencent to just under 11% from about 12% in late April, selling shares via the Southbound trading link with Hong Kong amid waning market enthusiasm for the tech giant, Bloomberg notes.


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  Gaming - China's Gaming Regulator granted licenses for 147 domestic games in June; granted licenses for 11 imported online games; one title from Tenent (7 HK).
  


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  Electronic Arts (EA) - Upgraded to 'Buy' from 'Neutral' at Roth Capital with a USD 185 PT (prev. 175). The firm cites increased confidence in Electronic Arts' ability to execute and deliver double-digit earnings growth over the next three years for the upgrade. Roth believes EA is at an "important inflexion point," setting it up well for an "elevated, multi-year growth trajectory."


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  Nintendo (NTDOY) - Nintendo reshuffled Switch 2’s supply chain with 13 new chip partners after its June 5th launch, which sold over 3.5mln units in four days. This reflects strong demand and shifts in component sourcing amid increased competition and pricing pressures in the consumer electronics market, DigiTimes reports.

CONSUMER DISCRETIONARY

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  Tesla (TSLA) - US regulators are reviewing incidents involving Tesla robotaxis allegedly violating traffic laws during their first paid rides in Austin. NHTSA is collecting information but has not launched a formal probe, Bloomberg reports. Separately, Tesla has been sued by the family of three people killed in a 2024 Model S crash in New Jersey, alleging the Autopilot and Full Self-Driving features had a defective design, Reuters reports; the lawsuit cites failure to warn and improper lane keeping and braking.


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  Ford (F) - Warned that cuts to clean energy subsidies in President Trump’s tax package could jeopardise jobs at its USD 3bln EV battery plant in Michigan, set to produce 20 gigawatt-hours of lithium iron phosphate batteries and employ 1,700 people from 2026. The plant uses technology licensed from China’s largest battery maker.


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  THOR Industries (THO)- Announced reauthorisation of USD 400mln stock repurchase programme.


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  Nissan (NSANY) - CEO Ivan Espinosa faced tough questions from shareholders at his first annual meeting over a JPY 671bln net loss, job cuts of 20k, and closing seven manufacturing sites. Investors also criticised the failed Honda (HMC) tie-up, challenging the feasibility of his turnaround plan, Bloomberg reports.


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  Amazon (AMZN) - Will invest GBP 40bln in the UK over three years, including two new fulfilment centres, delivery stations, London HQ expansion, and the Bray Film Studios redevelopment, Reuters reports. The figure includes part of a previously announced GBP 8bln AWS plan. Meanwhile, Amazon brings Prime delivery speeds as fast as the same day to thousands of smaller cities, towns, and rural communities across the US for the first time.


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  Starbucks (SBUX) - Denied reports it is considering a full sale of its China operations after a Caixin Global article triggered a late share spike. The company reaffirmed its commitment to the Chinese market despite slowing sales and rising competition from local brands.


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  KB Home (KBH) Q2 2025 (USD): EPS 1.50 (exp. 1.47), Revenue 1.53bln (exp. 1.51bln). Q2 home deliveries -11% Y/Y to 3,120; average selling price 488,700. It repurchased 200mln shares in Q2. Outlook: Lowered its FY25 housing revenue view to 6.3–6.5bln (prev. saw 6.6–7.0bln), gross margin view to 19.0–19.4% (prev. 19.2–20.0%); Q3 housing revenue 1.5–1.7bln, ASP of 470–480k, gross margin of 18.1–18.7%. Expects 13,200 deliveries in FY25, with 7,300 homes left to deliver.


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  Krispy Kreme (DNUT) - Announced it and McDonald's after careful consideration, have jointly decided to end their partnership effective, July 2nd.

CONSUMER STAPLES

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  Chewy (CHWY) - Announced a USD 1bln Class A common stock offering by Buddy Chester Sub, linked to BC Partners PE, its largest shareholder. Chewy will not sell shares or receive proceeds.


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  Dollar General (DG) - Downgraded to 'Neutral' from 'Buy' at Goldman Sachs. The firm cites valuation for the downgrade after a strong rally in the stock. Goldman thinks from here, the upside to the stock gets harder given a "still-intense" competitive environment for Dollar General, which could impact the strength of same-store-sales, and the need for the company to still invest in its stores and supply chain.

FINANCIALS

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  Banks - "Big Banks are worried [US] President Trump could turn the power of the federal government against them with an executive order on “debanking", via WSJ. Representatives from JPMorgan (JPM), Citi (C), Wells Fargo (WFC) and others have met with officials to defend against allegations of boycotting industries such as gun manufacturing and fossil fuel extraction.


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  Fed Bank Tests - The Federal Reserve will stop considering reputation risk in its bank examinations, responding to criticism from bank groups and Republican lawmakers. It is reviewing supervisory materials to replace reputation risk references with more precise assessments of financial risk.


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  Bank of America (BAC) - CEO said consumer spending is up about 4.5% Y/Y. Separately, the CFPB ended its 5yr monitoring agreement with Bank of America over false mortgage data allegations more than three years early. Bank of America has fulfilled its obligations, including a USD 12mln civil penalty, leading to the pact’s termination in June instead of November 2028 as initially planned.


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  Visa (V), Mastercard (MA) - Wells Fargo notes it is a buyer of Visa and Mastercard shares on the stablecoin weakness, citing its "way overblown". Wells expects modest revenue and EPS beats from both networks this quarter, the analyst tells investors in a research note. Wells has an Overweight rating on both MasterCard and Visa.


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  PayPal (PYPL), Salesforce (CRM) - PayPal is expanding its partnership with Salesforce by joining Agentforce's AgentExchange as a featured Model Context Protocol Server, enabling users to integrate PayPal’s full suite of commerce tools for agent creation.


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  Nomura Holdings (NMR) - Nomura shareholders rejected a proposal to change the company’s name following recent scandals. They voted to retain CEO Kentaro Okuda and Chairman Koji Nagai as board members at the annual meeting in Tokyo.

INDUSTRIALS

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  Waste Management (WM) - Targeted FY revenue USD 28.5-29.3bln (vs. 22.1bln in 2024), adj. EBITDA 8.95-9.15bln, FCF 4.03-4.18bln.


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  Boeing (BA), Alaska Air Group (ALK) - The NTSB will hold a hearing to determine the probable cause of a mid-air cabin panel blowout of a new Boeing 737 MAX 9 flight in January 2024 that spun the planemaker into a major crisis, Reuters reports. The board is expected to harshly criticize Boeing's safety culture and its failure to install four key bolts in a new Alaska Airlines MAX 9.


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  General Dynamics (GD) - Received a USD 621mln US Army contract modification for SGT Stout systems, parts, services, and support.

MATERIALS

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  Rio Tinto (RIO) - Rio Tinto and Hancock Prospecting will invest USD 2.47bln in developing the Hope Downs 2 iron ore project in the Pilbara through their joint venture, according to Business News.


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  China Coal - China’s coal exports rose +13% to 2.5mln tons in the first five months of 2025 amid a domestic glut. Major export destinations include Japan, Indonesia, and South Korea, with some shipments reaching as far as the Netherlands, reflecting reduced coal imports and increased supply abroad.

ENERGY

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  China Refiners - China’s oil refiners are reducing crude purchases amid weak domestic demand and geopolitical price volatility, Bloomberg reports. Independent processors, or teapots, are less active in the spot market for discounted crude from US-sanctioned producers like Iran and Russia, affecting their usual supply sources and profitability, the report adds.


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  German Energy - Germany’s LNG terminals have increased imports significantly, but much of the fuel is being exported to Austria, the Czech Republic, Hungary, and Ukraine. Consequently, Germany’s domestic gas storage levels remain low despite the surge in LNG arrivals at its four floating terminals, Bloomberg reports.


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  Diversified Energy (DEC), Carlyle (CG) - Diversified Energy and Carlyle will invest up to USD 2bln in proven developed producing natgas and oil assets across the US. Diversified will operate and service the assets, while Carlyle plans to securitise them to secure long-term financing.


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  DTE Energy (DTE) - DTE Energy President and COO Joi Harris will become President and CEO on September 8th, succeeding Jerry Norcia, who will become Executive Chairman.

HEALTHCARE

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  Novo Nordisk (NVO) - Said the WeGovy launch in India will be a "full launch"; doesn't anticipate any supply constraints and is confident of stable supply of the product in India. Novo Nordisk’s Ozempic received EU CHMP backing for label expansion to include peripheral arterial disease in type 2 diabetes, based on STRIDE trial results showing improved walking capacity. If approved, Ozempic would have the broadest GLP-1 RA label in the EU. A US label expansion decision is expected in Q4 2025.


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  AstraZeneca (AZN) - Announced US accelerated approval of Datroway for EGFR-mutated NSCLC after prior EGFR and platinum-based therapies, based on response data from TROPION-Lung05 and supported by TROPION-Lung01. Continued approval may depend on confirmatory trial outcomes.


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  UnitedHealth (UNH) - Urged shareholders to reject Tutanota's unsolicited mini-tender offer for 175,000 shares at USD 325 each, noting the offer is below market and conditional on UnitedHealth’s stock closing above that level. It warned the offer may be extended repeatedly and is subject to numerous conditions.


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  Nektar (NKTR) - Will announce top-line data from the 16-week induction period of its global Phase 2b REZOLVE-AD trial for rezpegaldesleukin, a regulatory T-cell proliferator for moderate-to-severe atopic dermatitis, in a live webcast on June 24th.


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  AstraZeneca (AZN) - Datroway has been approved in the US for the treatment of adult patients with locally advanced or metastatic EGFR-mutated non-small cell lung cancer who have received prior EGFR-directed therapy and platinum-based chemotherapy.

UTILITIES

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  Engie (ENGIY) - CEO said France’s moratorium on new wind and solar projects threatens EUR 5bln of planned renewables investments over the next decade. She called the halt “absurd and a disaster,” warning the stop-start approach hinders the long-term planning essential for the industry, Bloomberg reports.

24 Jun 2025 - 13:51- Data- Source: Newsquawk