Daily US Equity Opening News - TSLA to launch robotaxis on June 22nd; US cuts LMT F-35 request; GME, CHWY, & GTLB fall post earnings

TODAY'S AGENDA:

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  US INDEX FUTURES: ES +0.2%, NQ +0.3%, YM +0.2%, RTY +0.9%.


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  DAY AHEAD: Amid the focus on US fiscal dynamics, traders will be watching the May Federal Budget data, where a deficit of USD 318bln is expected (vs prior surplus of USD 258bln). In energy, weekly data released by the API reportedly showed headline US crude stocks posting a smaller than expected draw of -0.4mln bbls (exp. -2mln), Cushing inventories drew down by -0.7mln bbls, distillate stocks saw a larger than expected build of +3.7mln bbls (exp. +0.8mln), while gasoline inventories also posted a bigger than expected build of +3.0mln bbls (exp. +0.9mln). The more widely followed DoE data will be published later today. In supply, the US Treasury will sell USD 39bln of 10yr notes. Notable US corporates reporting today include ORCL after the close.


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  BROKER MOVES: SJM upgraded at Jefferies; UNH downgraded at Baird. For the full list, click here.
  


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  MAJOR MORNING MOVES RECAP: TSLA, LMT, CHWY, GM, GME, ETSY, GTLB, SJM, PLAY. For the full list, click here.
  


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

TRADE

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  US-China Talks - US and China concluded two days of trade talks with a framework to restore the flow of sensitive goods, pending approval from Presidents Trump and Xi. , US President Trump said the deal with China is done, subject to final approval by himself and President Xi. "Full magnets and any necessary rare earths will be supplied up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!). We are getting a total of 55% tariffs, China is getting 10%". Treasury Secretary Bessent described the two days of "productive" talks before returning to testify to Congress; Commerce Secretary Lutnick and USTR Greer will continue negotiations with Chinese officials. Lutnick said talks were going "really, really well".


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  US Tariffs - A US federal appeals court ruled that President Trump's global tariffs can remain in effect for now, extending a temporary reprieve while the administration challenges a lower court ruling that blocked the tariffs. The Justice Department argued ongoing trade negotiations outweigh the economic harm to small businesses.


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  US-EU - The EU is aiming to extend US trade talks beyond Trump’s July 9th deadline, with sources cited by Bloomberg calling an agreement on deal principles by then a "best-case scenario"; after July 9th, the EU faces a 50% US tariff, risking EU retaliation.


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  US-Mexico - The US and Mexico are close to a deal to remove President Trump's 50% steel tariffs on imports up to a volume cap higher than a previous agreement, Bloomberg reports. Commerce Secretary Lutnick is leading talks, with President Trump’s approval still needed. The deal would allow duty-free steel imports below historical trade volumes.


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  US-Greenland - French president Emmanuel Macron plans to visit Greenland on Sunday to counter US President Trump’s ambitions over the territory, Bloomberg said. Macron aims to show solidarity with Denmark and affirm France’s support for the EU country amid rising tensions over Greenland’s future.

MACRO

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  Fed Chair Job - Treasury Secretary Bessent is emerging as a leading candidate to succeed Jerome Powell as Federal Reserve chair, with President Trump expected to name a successor soon, Bloomberg reports. Other contenders include former Fed official Kevin Warsh. The White House dismissed the report as false.


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  RBNZ - New Zealand's Reserve Bank said former governor Adrian Orr resigned due to government funding cuts. Documents released in response to information requests confirmed Orr’s unexpected resignation on March 5th followed by the reduction in the bank’s financial support.

GEOPOLITICS

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  N.Korea - North Korea appears to have built a new structure at its Yongbyon nuclear complex, likely an additional enrichment facility to boost nuclear weapons production. Satellite imagery shows the building resembles an enrichment site at Kangson, another North Korean nuclear location near Pyongyang.


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  Iran - US senior administration officials told Fox News that Iran appears to be dragging negotiations on without concrete progress while pushing forward with its nuclear efforts.

TECH

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  NVIDIA (NVDA) - Director Mark Stevens sold 358.8K shares, as part of an option exercise, for a total of USD 51mln. On quantum, CEO Huang said there is an inflexion point happening in quantum computing.


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  Apple (AAPL) - Apple executives defended their AI strategy despite delays and lacklustre reception to Apple Intelligence and the upgraded Siri, saying they’re focused on quality and integration, WSJ reports. Software head Craig Federighi and marketing chief Greg Joswiak acknowledged setbacks but insisted the rollout aligns with Apple’s long-term AI goals. Separately, WhatsApp has told the BBC it's supporting Apple in its legal fight against the UK Home Office over user data privacy.


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  Microsoft (MSFT) - May add 1mln Copilot users from a single Microsoft 365 customer, according to Business Insider. The deal's status is still uncertain, but could involve a shift from fixed monthly pricing to a consumption-based model, reflecting broader changes in AI monetisation strategies, the report said. Elsewhere, Starbucks (SBUX) will deploy a generative AI assistant built with Microsoft Azure OpenAI to simplify barista tasks and improve service, with full rollout in 2026.


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  Salesforce (CRM) - Salesforce-owned Slack blocked other software firms from searching or storing Slack messages via its API, citing updated terms to safeguard customer data, The Information reports. The change prevents apps like Glean from indexing Slack data for enterprise AI and comes amid increased scrutiny of AI firms’ handling of personal and customer data.


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  Micron (MU) - Begun shipping samples of its 36GB HBM4 using 12-high stacking and a 2048-bit interface, built on its 1-beta DRAM process, DigiTimes reports. MU is targeting a volume ramp-up in 2026 as competition intensifies in high-bandwidth memory among major players like SK Hynix (HXSCL) and Samsung (SSNLF).


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  Qualcomm (QCOM) - Launched an AI research and development centre in Vietnam, with researchers focusing on advancing generative and agentic AI solutions across smartphones, personal computers, XR (extended reality), automotive and IoT applications.


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  Samsung (SSNLF) - Samsung and Groq are set to mass produce what they claim will be the world’s fastest AI chip using a 4nm process, with production scheduled for 2H25, DigiTimes reports; the collaboration targets the booming AI acceleration market, as Samsung intensifies competition with Nvidia (NVDA) and TSMC (TSM) in high-performance chip manufacturing. DigiTimes also reports that Samsung is accelerating construction of its USD 37bln fab in Texas, aiming to begin 2nm chip production by end-2026; earlier delays were linked to uncertainty around customer commitments, but recent momentum suggests a renewed push amid rising US incentives and global AI demand.


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  GitLab (GTLB) Q1 2025 (USD): EPS 0.17 (exp. 0.15), Revenue 214.5mln (exp. 213.2mln); total RPO +40% Y/Y to 955.1mln; customers with ARR above 5,000 +13% Y/Y to 10,104; the number of ARR customers above 100,000 +26% to 1,288. USD-based net retention is 122%. Outlook: Q2 EPS 0.16-0.17 (exp. 0.16), Q2 revenue 226-227mln (exp. 227.1mln); raised FY26 EPS view to 0.74-0.75 (prev. 0.68-0.72; exp. 0.73), affirmed FY26 revenue view of 936-942mln (exp. 941.7mln).


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  Strategy Incorporated (MSTR) - Strategy chairman Michael Saylor dismissed Jim Chanos’s call to short the company’s shares and buy Bitcoin (BTC), arguing Chanos misunderstands its business model. Saylor said Strategy is the largest issuer of Bitcoin-backed credit instruments globally, justifying the premium its stock trades over its Bitcoin holdings.


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  Zscaler (ZS) - Director Charles Giancarlo sold 50K shares on June 6th for a total USD 15.2mln.

COMMUNICATIONS

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  Alphabet (GOOG) - Google announced Android 16, launching first on Pixel devices with other brands to follow later in 2025. The update introduces Material 3 Expressive design, live updates for compatible apps, grouped notifications, and native controls for hearing aids, improving accessibility and user experience. Separately, Google has expanded voluntary buyout offers to US employees across search, ads, research, and engineering as part of broader cost-cutting to fund its growing AI investments, WSJ reports; the move reflects ongoing efforts to reallocate resources amid intensifying competition from ChatGPT and other AI rivals.


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  Nintendo (NTDOY) - Sold over 3.5mln Switch 2 units in four days, setting a company record for its first new console in eight years. This strong start supports its target of 15mln units by March 2026, and suggests even higher sales if supply increases, analysts said.


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  GameStop Corp (GME) Q1 2025 (USD): Revenue -17% Y/Y to 732.4mln (exp. 754.24mln), with hardware and accessories sales -32% Y/Y; Adj. EPS 0.17 (exp. 0.04), net profit 44.8mln (vs -32.3mln Y/Y), aided by cost cuts. Reported a 10.8mln operating loss, including 35.5mln in impairment charges. It purchased 4,710 Bitcoin (BTC) between May 3rd and June 10th for cash.


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  Dave & Buster's (PLAY) Q1 2025 (USD): Adj. EPS 1.12 (exp. 1.01), Revenue 567.7mln (exp. 565mln); comparable store sales -8.3% Q/Q; exec said Q2 comps were down 2.2% QTD, adding that May and June results show sequential improvement with 11 positive SSS days in last 30 days. Exec highlighted progress from the "back to basics" strategy. Outlook: FY25 capex under 220mln, pre-opening expense 20mln, cash interest 130-140mln.


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  Publicis (PUBGY), WPP (WPP), Interpublic Group (IPG) - Publicis Groupe won Mars’ USD 1.7bln media account from WPP, covering media, production, commerce, paid social, and influencer marketing across 70+ markets. Interpublic Group will handle Mars’ global PR. The review followed Mars’ acquisition of Kellanova (K) and aims to streamline agency relationships.


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  Shutterstock (SSTK), Getty Images (GETY) - Shutterstock stockholders approved the merger agreement with Getty Images Holdings with around 82% voting in favour.

CONSUMER DISCRETIONARY

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  Industria De Diseno Textil (IDEXY) - The world's largest fast fashion retailer Inditex reported Q1 sales of EUR 8.27bln (exp. 8.36bln), reflecting slower growth amid economic uncertainty; its May-June revenue rose +6% (prev. +12% Y/Y). Cooler weather in Spain, accounting for 15% of its sales, also weighed on performance.


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  Starbucks (SBUX) - Will expand its new staffing model to all 18,000 North American stores by summer's end, accelerating plans to improve service speed and customer experience, Reuters reports. CEO said early pilots drove faster service and higher sales. Meanwhile, the CEO in a FT interview said Starbucks has received "a lot of interest" for a stake sale in its China business.


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  China Auto Sales - China May vehicle sales rose 11.2% Y/Y (vs 9.8% in April), with Jan-May sales +10.9% Y/Y. May new energy vehicle sales surged +36.9% Y/Y, and Jan-May NEV sales rose 44% Y/Y, according to an industry association.


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  EVs - US President Trump will on Thursday sign three resolutions blocking California's EV and diesel engine mandates, including revoking EPA waivers allowing 80% EV sales by 2035, Reuters reports. Auto industry groups back the move, citing unachievable targets. Governor Newsom plans legal action.


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  General Motors (GM) - Plans to invest USD 4bln over two years in US plants to boost production of top-selling gas vehicles, shifting output from Mexico to Michigan, Kansas, and Tennessee. This includes Chevrolet Silverado, GMC Sierra pickups, and Chevrolet Equinox SUV. The move will create 3,000-4,000 US jobs, aiming to manage Trump’s tariffs.


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  Tesla (TSLA) - CEO Elon Musk announced a tentative June 22nd launch for Tesla’s robotaxi service in Austin, with full self-driving cars from June 28th. The initial rollout includes 10-20 driverless Model Ys within geo-fenced areas. Musk predicts 1,000 robotaxis within months and over 1mln by end-2026. Separately, analysts at Piper Sandler maintained an Overweight rating on Tesla, with a USD 400 PT, expecting sustained upward momentum; it said driverless Teslas are active in Austin, Texas, and CEO Musk anticipates licensing deals, though the analyst warned that any high-profile robotaxi accidents could cause significant downside. Finally, CEO Musk posted on X: "I regret some of my posts about President Trump last week. They went too far," following his earlier claim that Trump is "in the Epstein files".


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  Chewy (CHWY) Q1 2025 (USD): Adj. EPS 0.35 (exp. 0.118), Revenue 3.12bln (exp. 3.08bln). Outlook: Q2 EPS view 0.30-0.35 (exp. 0.31), Q2 revenue 3.06-3.09bln (exp. 3.04bln), FY25 revenue 12.3-12.45bln (exp. 12.4bln).


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  Etsy (ETSY) - Announced proposed private offering of USD 650mln of convertible senior notes; to use up to USD 175mln to repurchase common stock.


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  DraftKings (DKNG) - Said it's considering its next steps following recent and prior mobile sports wagering tax increases in Illinois, and expects to provide more information soon.

CONSUMER STAPLES

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  General Mills (GIS) - General Mills is reportedly considering selling its Haagen-Dazs stores in China, potentially seeking several hundred million dollars, amid weak local sales, Bloomberg reports. General Mills is said to be working with an adviser and may begin the sales process later this year.


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  J.M. Smucker (SJM) - Upgraded to 'Buy' from 'Hold' at Jefferies with a USD 115 PT (prev. 118). The firm recognises investor concern, but believes J.M. Smucker's fiscal 2026 "may have been de-risked"; The company's portfolio remains growth advantaged versus peers, and the stock's current 40% valuation discount to the food group, versus 25% historically, fails to reflect this.


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  Food/drink - US Dietary guidelines are expected as soon as this month, according to Reuters sources.


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  China Pork Prices - China is urging pig farmers to restrain supply by limiting sow herd expansion and stopping secondary fattening of livestock to support pork prices and ease deflationary pressures in the economy, according to sources cited by Bloomberg.

FINANCIALS

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  Swiss Banks - The US and Switzerland ended a long impasse over access to investment client data, allowing the SEC direct information access and lifting a moratorium on approving new Swiss investment advisers, FT reports. The move follows increased scrutiny of Swiss firms and reflects rising US demand for offshore asset management amid regulatory uncertainty.


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  UniCredit (UNCRY) - UniCredit CEO said the BPM deal probability is now 20% or less, citing unclear elements in Italy's ‘golden power’ decision that risk EUR 20bln euros in fines. He warned UniCredit may pull out if no clarification is given and criticised increased government interference in bank M&A. Separately, UniCredit CEO said they see no value for investors in a Commerzbank (CRZBY) deal at current price levels, adding that Commerzbank’s share price has gone well beyond the fundamentals.


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  KKR & Co. (KKR), Bain Capital (BCSF) - Bain, KKR, and Lone Star have advanced to the second round of bidding for Sapporo Holdings’ real estate unit. The sale price is expected to exceed JPY 400bln, with an agreement aimed for by year-end, with bidding closing in August.


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  Robinhood (HOOD): Net deposits at USD 3.5bln in May, total platform assets USD 255bln as of May.


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  Taiwan Financials - Taiwan plans to block hostile takeovers in its financial sector by amending rules to require board approval or majority control of shares or board seats for acquisitions. This follows regulators’ recent prevention of a USD 4.1bln deal that would have created Taiwan’s largest financial group.

ENERGY

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  Venture Global (VG) - Asked US federal regulators to withdraw its application to build its proposed 24mln MTPA Delta LNG export facility in Louisiana, arguing it can build its proposed Plaquemines expansion faster, via a filing on Tuesday.


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  US Energy Inventories - Weekly data released by the API reportedly showed headline US crude stocks posting a smaller than expected draw of -0.4mln bbls (exp. -2mln), Cushing inventories drew down by -0.7mln bbls, distillate stocks saw a larger than expected build of +3.7mln bbls (exp. +0.8mln), while gasoline inventories also posted a bigger than expected build of +3.0mln bbls (exp. +0.9mln). The more widely followed DoE data will be published later today.


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  India Crude - India’s state oil refiners plan to order 10 domestically built tankers to transport fuels within the country, supporting the government’s push to expand the domestic shipbuilding industry.

INDUSTRIALS

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  Lockheed Martin (LMT) - The US Air Force has halved its F-35 fighter jet request to Congress, seeking 24 planes instead of the 48 forecasted last year, negatively impacting Lockheed Martin, the top US defence contractor, Bloomberg reports.


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  Boeing (BA) - Royal Air Maroc to place an order for Boeing 737 and 787 jets at the Paris Airshow, according to Reuters sources; nearing a deal for around 20 Airbus (AIR FP) A220, the first Airbus order since 2001.


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  Deere & Co. (DE) - Expects machinery sales in Brazil to surpass those in Europe within 5-10 years, making Brazil its second-largest market. It said demand will rise with increased agricultural production, including soybeans, corn, and sugarcane.


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  US Powerplants - The Trump administration plans to propose repealing Biden-era climate rules that require power plants to reduce greenhouse gas emissions. The EPA will also move to ease limits on mercury and other toxic pollution from these facilities, with the proposal expected as soon as Wednesday.

MATERIALS

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  China Rare Earths - China's JL Mag Rare-Earth received export permits for markets including the US, Europe, and Southeast Asia, signalling a potential easing in US-China trade tensions. The announcement drove its Hong Kong-listed shares up as much as 12%, marking their highest intraday level since 2022.


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  Australia/China Iron Ore - Platts will lower its IODEX iron ore benchmark from 62% to 61% iron content in January due to declining quality from Australia, the largest exporter, Bloomberg reports. It will also update the 62.5% China iron ore spot lump premium benchmark to 62%, reflecting industry shifts in ore grade standards.

UTILITIES

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  Electricity Consumption - The US DoE raised its electricity consumption forecast for 2026 to a 2.15% increase, nearly doubling last month’s estimate. This is mainly driven by a 5% rise in commercial power demand, largely due to the rapid expansion of data centres.

HEALTHCARE

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  Bristol-Myers Squibb (BMY) - Philochem AG will license exclusive worldwide rights to OncoACP3, a prostate cancer therapeutic and diagnostic agent, to RayzeBio, a Bristol-Myers Squibb subsidiary. Philochem will receive a USD 350mln up-front payment, up to USD 1bln in milestones, and mid-single to low double-digit royalties. The deal is expected to close in Q3 2025, pending regulatory approvals.

11 Jun 2025 - 13:55- EquitiesData- Source: Newsquawk