Daily US Equity Opening News - Stocks sold on Trump's proposed 50% EU tariff; Trump threatens AAPL with 25% tariffs

TODAY'S AGENDA:

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  US INDEX FUTURES: ES -1.4%, NQ -1.8%, YM -1.2%, RTY -2.0%.


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  DAY AHEAD: The US docket includes new home sales data for April (expected at 693k from 724k). In energy, Baker Hughes will release its weekly rig count stats in the afternoon. On today's CRA slate, potential rating reviews are due from Moodyʼs Ratings on the UK (currently rated Aa3), and Moodyʼs on Italy (Baa3). Today's speaker's lineup includes the Fed's Musalem (voter), Schmid (voter), Cook (voter); ECB Markets Chief Schnabel will speak on finance; from the BoE, Chief Economist Pill is due to speak again today.


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  BROKER MOVES: MS upgraded at Erste Group, MCD downgraded; WM upgraded at JPM. To see the full list, please click here.
  


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  MAJOR MORNING MOVES RECAP: AAPL, INTU, ADSK, WDAY, ROST, CPRT, MSFT/PEP. To see the full list, click here.
  

EQUITY NEWS:

MACRO

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  US-EU - US President Trump on Truth Social noted trade discussions with the EU are going nowhere, and as such, is recommending a straight 50% tariff on the European Union, starting on June 1st, 2025. "There is no Tariff if the product is built or manufactured in the US". Earlier the FT reported, that Trump is pushing the EU to cut tariffs or face extra duties, with US negotiators to tell Brussels they expect unilateral concessions, according to the FT.


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  US Stocks - An institutional investor has placed nearly USD 3bln on June 2027 call options across major US companies, signalling a strong bullish bet on the US stock market, according to Nomura. This activity has drawn significant attention in options markets over the past month, BBG says.


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  US Treasuries - The Philippine central bank is considering reducing its US Treasury holdings following Moody’s downgrade of the US credit rating, Bloomberg reports. Governor Eli Remolona noted that downgrading US debt is significant and the bank is reviewing its reserve composition accordingly.


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  US Money Markets - NY Fed’s Perli said efforts to shrink the Fed’s balance sheet are beginning to pressure the repurchase agreement market. This suggests the Fed’s tools to control short-term interest rates will grow increasingly important, Bloomberg says.


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  USD - White House’s chief economist Miran denied any secret currency pact to weaken the dollar, reaffirming the US strong dollar policy. He said Treasury Secretary Bessent is the official currency spokesperson, and dismissed speculation of an international agreement to depreciate the greenback.


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  US-G7 - US Treasury Secretary Bessent maintained a low public profile at the G7 finance chiefs meeting but privately eased concerns over President Trump’s aggressive trade and security policies, Bloomberg said. His charm reassured counterparts they could collaborate effectively with the US Treasury on key issues. Elsewhere, President Trump will attend the G7 summit in Canada from June 15-17, the White House confirmed. The meeting comes amid ongoing tensions over trade and efforts to halt Russia’s war in Ukraine, which have strained US relations with key allies.


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  US-China - Senior US and China officials held a call to maintain active communication following their recent trade truce. US Deputy Secretary of State Landau and China’s Executive Vice Foreign Minister Ma Zhaoxu discussed various mutual interests, signalling ongoing dialogue between the two countries. CNN reports that US President Trump and China President Xi have not spoken since the Geneva agreement.


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  US nuclear - US President Trump is expected to sign orders to boost nuclear power as soon as Friday and will invoke a wartime act over US uranium independence, according to Reuters citing sources. As such, shares of nuclear power stocks have surged in premarket. Trump is expected to streamline the regulatory process for new reactor approvals and enhance fuel supply chains. Note, Trump is scheduled to sign executive orders on Friday at 13:00EDT/18:00BST.


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  US-Japan - Japan’s top trade negotiator Ryosei Akazawa is heading to the US for a third round of talks with the Trump administration, focused on protecting Japan’s key auto industry from tariffs, from Friday to Sunday. Akazawa stressed that any agreement must satisfy the national interests of both countries. Japan is to reportedly propose investments by Nippon Steel in tariff talks with the US, according to the NHK.


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  US-South Korea - The US is reportedly reviewing a plan to withdraw about 4,500 troops from South Korea, though Seoul says no talks have occurred, WSJ reports. The potential pullback could raise security concerns on the Korean peninsula, the report says.


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  US-NATO - Dutch PM Schoof confirmed that US President Trump plans to attend the NATO summit in The Hague in June. Schoof described Trump’s presence as “very important” following a phone call where the US leader assured his attendance.

TECH

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  Apple (AAPL) - US President Trump on Truth Social said he has informed Apple CEO Cook that he expects iPhones to be sold and manufactured in the US; if that is not the case a tariff of at least 25% must be paid by Apple to the US; AAPL shares got hit in premarket on the news. Trump's post follows FT reports that Apple is expanding its manufacturing in India, despite President Trump’s push to reshore production to the US. Apple is set to expand India's supply chain via a USD 1.5bln Foxconn (2317 TT) component plant near Chennai, and a USD 450mln chip assembly unit in Uttar Pradesh. India’s government is boosting incentives for electronics manufacturing, aiming to grow as a supply chain hub beyond China. Separately, Apple is offering additional trade-in discounts for new iPhones in China. Elsewhere, Apple plans to release AI-enhanced smart glasses by the end of 2026, aiming to compete with Meta’s (META) Ray-Ban (ESLOY) Meta glasses; prototype production with overseas suppliers will start late this year. However, Apple has cancelled its smartwatch project featuring a built-in camera for environmental analysis.


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  Microsoft (MSFT) - The FTC dropped its case to block Microsoft’s USD 69bln acquisition of Activision Blizzard, citing public interest. The deal, closed in 2023, was the largest in the gaming market.


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  TSMC (TSM) - Urged the US Department of Commerce to avoid disrupting its record USD 165bln chip investment in Arizona amid a national security probe into semiconductor imports, Digitimes reports. The company warned that policy uncertainty or tariffs could impact its major expansion plans.


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  Intuit (INTU) Q3 2025 (USD): Adj. EPS 11.65 (exp. 10.91), Revenue 7.75bln (exp. 7.57bln). Outlook: Q4 adj. EPS 2.63-2.68 (exp. 2.59), Q4 revenue 3.723-3.760bln (exp. 3.51bln), FY adj. EPS 20.07-20.12 (exp. 19.34), FY revenue 18.723-18.760bln (exp. 18.35bln).


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  Autodesk (ADSK) Q1 2025 (USD): Adj. EPS 2.29 (exp. 2.15), Revenue 1.63bln (exp. 1.61bln). Outlook: Q2 adj. EPS 2.44-2.48 (exp. 2.34), Q2 revenue 1.72-1.73bln (exp. 1.7bln), FY26 adj. EPS 9.50-9.73 (exp. 9.51), FY26 revenue 6.93-7.31bln (exp. 6.93bln). The company cited strong Q1 amid macro uncertainty, and will allocate more capital to share repurchases as its FCF grows; CEO highlighted a focus on cloud and AI innovations after a 9% workforce cut to improve margins.


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  Workday Inc (WDAY) Q1 2025 (USD): Adj. EPS 2.23 (exp. 2.01), Revenue 2.24bln (exp. 2.22bln), subscription revenue +13.4% Y/Y at 2.059bln. Announced a 1bln share buyback. Outlook: Q2 subscription revenue 2.16bln, reaffirmed FY26 subscription revenue view of 8.8bln, raised FY26 adj. op. margin guidance to ~28.5%.


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  Xerox Corporation (XRX) - Lowered its quarterly dividend to USD 0.025/shr (prev. 0.125/shr); reiterated FY25 guidance.

CONSUMER DISCRETIONARY

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  McDonald's (MCD) - Downgraded to 'Hold' from 'Buy' at Erste Group, citing sales "will grow very slowly" in 2025 and a higher growth rate is "only realistic in the coming year"; believes McDonald's potential for further price increases is limited due to its low sales growth momentum this year.


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  PepsiCo (PEP) - The FTC unanimously dismissed an antitrust lawsuit against PepsiCo, originally filed in January under the Biden Administration using the Robinson-Patman Act; the rare 1930s law targeted alleged price discrimination, but the Trump-era FTC commissioners opted to drop the case.


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  Amazon (AMZN) - Amazon shareholders rejected a proposal to keep the CEO and board chair roles separate, with about 82% voting against it. The company split these roles in 2021 when Andy Jassy became CEO and Jeff Bezos stayed as executive chairman. Separately, AWS has added Anthropic’s Claude Opus 4 and Claude Sonnet 4 models to Amazon Bedrock, offering faster responses and advanced reasoning for enterprise applications, with a focus on security and responsible AI deployment.


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  Ross Stores (ROST) Q1 2025 (USD): EPS 1.47 (exp. 1.43), Revenue 4.98bln (exp. 4.96bln), Q1 comp store sales flat Y/Y. Outlook: Q2 EPS 1.40-1.55 (exp. 1.64), Q2 comp store sales flat to +3%; Q2 earnings guidance includes around 0.11-0.16/shr cost impact from announced tariffs. More than half of the goods they sell originate from China. Expects pressure on profitability if tariffs remain at elevated levels. For 13 weeks ending August 2nd, 2025, comp sales are now projected to be flat to up 3% on top of a 4% gain in Q2 of last year. Withdrew FY25 guidance citing macroeconomic and tariff-related uncertainties impacting profitability.


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  Deckers Outdoor (DECK) Q4 2025 (USD): EPS 1.00 (exp. 0.61), Revenue 1.02bln (exp. 1.01bln). The board approved a 2.25bln increase to share buyback authorisation. Executive said it's confident in HOKA and UGG growth prospects. Outlook: Q1 EPS 0.62-0.67 (exp. 0.79), Q1 revenue 890-910mln (exp. 925.3mln), not providing FY26 guidance due to macro uncertainty.


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  Goodyear Tire (GT) - Will sell most of its chemical business to Gemspring Capital for about USD 650mln. The deal includes chemical facilities in Texas and a research office in Ohio, with a long-term supply agreement. Proceeds will be used to reduce debt and fund new initiatives. The transaction is expected to close late this year.


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  International Paper (IP) - Will close five packaging sites in Britain, cutting ~300 jobs, citing tough industry conditions.


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  Alibaba (BABA) - Concluded that some of company's products may contain 3TG originating in covered countries; nothing in response receives to date to suggest co's products contain 3TG that finance or benefit armed groups.


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  Junk Food - US Agriculture Secretary Rollins approved waivers allowing Iowa and Indiana to bar junk food and sugary drinks from food aid purchases under the Supplemental Nutrition Assistance Programme. It follows Nebraska’s similar waiver and is part of the ‘Make America Healthy Again’ initiative.


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  Dillard's (DDS) - Sued Wells Fargo on Thursday, saying the bank repeatedly breached a since-abandoned co-branded credit card relationship, causing tens of millions of dollars in losses.


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  Tapestry (TPR) - New revolving credit facility provides USD 2bln with maturity in 2030.


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  Nissan Motor (NSANY) - Announced that job cuts linked to its restructuring will cost an additional JPY 60bln in the current fiscal year, CFO told investors.


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  BYD (BYDDY) - Two BYD dealership groups in China’s Liaoning and Shandong provinces have ceased operations amid intense market competition. Xingqi Group stopped delivering cars and servicing customers, while Qiancheng Holdings’ roughly 20 showrooms have closed, prompting over 500 customers to form consumer rights groups demanding action, Bloomberg reports.

HEALTHCARE

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  Novo Nordisk (NVO), Hims & Hers Health (HIMS) - Hims & Hers Health introduced a 6-month Wegovy new customer offer; new customers can access Wegovy for USD 549/month for 6 months.


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  GSK (GSK) - GSK's Nucala (mepolizumab) was approved by the FDA as add-on maintenance for adults with inadequately controlled COPD and eosinophilic phenotype, based on positive phase III trial data showing significant reduction in moderate/severe exacerbations.


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  Regeneron (REGN) - Reported initial Phase 1b LINKER-MM2 trial results of linvoseltamab combined with carfilzomib or bortezomib in relapsed/refractory multiple myeloma. The carfilzomib cohort showed a 90% objective response rate (76% complete response) with 87% maintaining response at 12 months. The bortezomib cohort had an 85% response rate (50% complete response). Common adverse events included neutropenia, cytokine release syndrome, and thrombocytopenia. A Phase 3 trial is planned.


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  Astellas Pharma (ALPMY), Pfizer (PFE) - Astellas and Pfizer’s Xtandi showed a 30% reduction in death risk and 8 years median overall survival in metastatic hormone-sensitive prostate cancer in Phase 3 ARCHES study. Five-year safety data are consistent with prior analyses and no new safety signals were reported.


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  Roche (RHHBY) - Reported new two-year follow-up data showing 89% OS and 82% cancer-free rates one-year post-treatment for Columvi plus chemo in relapsed/refractory DLBCL. Separately, the FDA approved Susvimo 100 mg/ml for diabetic retinopathy, now available to US retina specialists.


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  Bayer (BAYRY) - CHMP recommended EU approval of Eylea 8 mg with a 6-month dosing interval, based on PULSAR (nAMD) and PHOTON (DME) trials. At year three, 28% of DME and 24% of nAMD patients reached 6-month intervals. EU Commission decision is expected in coming weeks.


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  Exelixis (EXEL) - Reported STELLAR-002 results showing a 63% objective response rate and 18.5 months progression-free survival with zanzalintinib plus nivolumab, and a 40% response rate with 13 months PFS for the combination with relatlimab. Both had 90% disease control. Adverse events were manageable, supporting a 100 mg dose.


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  Qiagen (QGEN) - Expanded oncology research portfolio via a partnership with ID Solutions to supply digital PCR assays for non-clinical use on QIAGEN’s QIAcuity platforms.

COMMUNICATIONS

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  Alphabet (GOOG), Disney (DIS) - YouTube hired Disney executive Justin Connolly as global head of media and sports, prompting Disney to sue YouTube in LA for breach of contract, interference, and unfair competition. Connolly signed a three-year contract in November 2024 with a termination right only in March 2027. Disney seeks injunctions to block the move.


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  Take-Two Interactive (TTWO) - Announced a USD 1bln common stock offering, priced at USD 225/shr, the low end of the target range. Proceeds will fund general corporate purposes, including debt repayment and acquisitions.


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  Match Group (MTCH) - Tinder CEO Faye Iosotaluno will step down in July after less than two years in the role, ending an almost eight-year tenure at Match Group. CEO Spencer Rascoff will lead Tinder during the transition, with no replacement named yet.


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  Lionsgate (LION) Q4 2025 (USD): Adj. EPS 0.21 (vs 0.05 Y/Y), Revenue 1.07bln (vs 756.2mln Y/Y). CEO highlighted a strong quarter despite the challenging environment, driven by library performance, diversified motion picture model, fiscal discipline, and premium television programming.

MATERIALS

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  China Rare Earths - China’s expanded rare earth export restrictions are tightening supply chains in Europe and the US despite some short-term tariff concessions in US-China talks, Digitimes reports. The controls threaten sectors including electric vehicles, robotics, and defence, exacerbating global supply chain challenges.


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  Rio Tinto (RIO)—Chile's Enami selected Rio Tinto for the Altoandinos lithium project. The total investment is expected to be USD 3bln, and Rio Tinto is expected to contribute USD 425mln to the project.


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  US Steel (X), Nippon Steel (NPSCY) - The US Committee on Foreign Investment is reportedly divided on Nippon Steel’s bid for US Steel. Still, most members believe national security risks can be mitigated, Reuters reports. Following a USD 14bln investment pledge by Nippon Steel, President Trump has 15 days to decide after receiving the panel’s recommendation. United Steelworkers president McCall urged Trump to block the bid, maintaining opposition to the merger.


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  LyondellBasell (LYB) - Boosted its quarterly dividend from USD 1.34/shr to USD 1.37/shr.

FINANCIALS

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  Morgan Stanley (MS) - Upgraded at Erste Group to 'Buy' from 'Hold'. The firm expects earnings in 2025 will increase more strongly than revenue and its ROE is significantly higher than that of competitors; Morgan Stanley's dividend yield is also higher than the sector average.


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  Crypto - Major US banks including JPMorgan (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) are in talks to jointly issue a stablecoin via entities like Early Warning Services and the Clearing House, WSJ reports. The move aims to counter growing crypto competition and bolster control over digital payments infrastructure.


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  UniCredit (UNCRY), Banco BPM (BNNCY) - UniCredit CEO said it will appeal to the administrative court against Consob's suspension of its Banco BPM bid, calling the current situation a block on M&A, Sole 24 Ore reports. Separately, Repubblica reports that UniCredit has also appealed against Italy's golden power conditions tied to the deal.

ENERGY

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  Shell (SHEL) - Shell Indonesia will transfer its gas station business to a joint venture between Citadel Pacific and Sefas Group, excluding its lubricant segment. The deal, covering around 200 stations and a terminal in Gresik, is expected to be completed next year.


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  Fortescue (FSUGY) - Fortescue said Energy CEO Mark Hutchinson will step down, with metals head Dino Otranto assuming an expanded role. COO Shelley Robertson is also departing amid the executive overhaul. Hutchinson will remain as senior adviser for a year to support global marketing efforts.

INDUSTRIALS

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  Copart (CPRT) Q1 2025 (USD): EPS 0.42 EPS (exp. 0.41), Revenue 1.11bln (exp. 1.23bln); operating margin declined slightly, though the free cash flow margin improved.


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  Waste Management (WM) - Upgraded to 'Overweight' from 'Neutral' at JPMorgan. The firm expects Waste Management's valuation gap versus peers to narrow in the longer term, driven by revenue and cost synergies in Stericycle and sustainability projects gaining traction; it sees a runway to raise Stericycle's core growth profile.

REAL ESTATE

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  Weyerhaeuser (WY) - To acquire 117,000 acres of timberlands in North Carolina and Virginia from Roanoke Timberlands for USD 375mln. The mature timberlands will integrate with existing operations. The deal, closing in Q3, will be funded mainly by divesting non-core lands.

23 May 2025 - 13:47- MetalsData- Source: Newsquawk