Newsquawk Daily US Equity Opening News: Weak PVH guidance; AAPL loses appeal on App Store

TODAY'S AGENDA:

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  DAY AHEAD: On the trade front, German Chancellor Merz will meet US President Trump for the first time Thursday (at 16:45BST/11:45EDT), with Ukraine, the Middle East, and trade tariffs on the agenda; Merz is expected to push for tariff relief while avoiding confrontation. In central bank speakers, remarks are scheduled from Fed's Kugler (voter), Harker (2026 voter), and Schmid (2025 voter); BoC's Kozicki. In supply, the US Treasury will announce auction sizes for next week's 3yr, 10yr and 30yr supply (no changes are expected). Notable corporate earnings reports due today include LULU, AVGO.


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  BROKER MOVES: DLTR upgraded at JPM; CHWY downgraded at Jefferies. To see the full list, please click here.


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  MAJOR MORNING MOVES RECAP: MDB, VRNT, PVH, PG, AAPL, C, NVDA. For the full list, please click here.

EQUITY NEWS:

TECH:

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  Nvidia (NVDA) - Director Mark Stevens has sold over 1mln shares this week, raising nearly USD 150mln across two transactions on Monday and Tuesday, as the stock rebounds after a slow start to 2025, Bloomberg reports.


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  Apple (AAPL) - Lost a US appeals court bid to pause a judge’s order requiring it to allow more App Store competition. The court upheld an April ruling that Apple violated a prior injunction, including imposing a 27% fee on external purchases. Epic’s CEO called it the end of the "Apple tax."


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  Foxconn (HNHPF) - May Revenue +11.92% Y/Y (prev. +25.54%); based on current visibility, operational outlook for Q2 anticipates Q/Q + Y/Y growth, but impact of evolving political and economic conditions and FX changed will need continued close monitoring.


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  Strategy (MSTR) - Aims to price a USD 250mln offering of its Perpetual Stride preferred stock at USD 85.00-90.00, with order books expected to close Thursday, Bloomberg reports. Its 10% Perpetual Strife preferreds, priced at USD 85 in March, are now trading at USD 107.10.


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  IBM (IBM), Salesforce (CRM), Informatica (INFA) - IBM held takeover talks with Informatica in recent months but did not proceed, allowing Salesforce to acquire the software firm for USD 8bln last month, according to Bloomberg.


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  STMicroelectronics (STM) - Italy plans to strengthen semiconductor company STMicroelectronics rather than break it up, Industry Minister Adolfo Urso said. The government aims to support STMicro on the international stage amid ongoing global chip industry challenges.


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  MongoDB (MDB) Q1 2025 (USD): Adj. EPS 1.00 (exp. 0.66), Revenue 549.0mln (exp. 527.48mln); Increased share repurchase programme by USD 800mln, taking the size of its authorisation to USD 1.0bln. Guidance: Q2 adj. EPS 0.62-0.66 (exp. 0.58), Revenue 548.0-553.0mln (exp. 549.28mln). Raises FY26 adj. EPS to 2.94-3.12 (exp. 2.65), Revenue 2.25-2.29bln (exp. 2.27bln).


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  Verint Systems (VRNT) Q1 2025 (USD): Adj. EPS 0.29 (exp. 0.23), Revenue 208mln (exp. 194.22mln). Q1 ARR growth accelerated to 6% Y/Y. Guidance: Backs FY26 adj. EPS at 2.93 (exp. 2.93), Revenue 960mln +/- 3% (exp. 957.82mln).


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  SanDisk (SNDK), Western Digital (WDC) - SanDisk launched a secondary public offering of 17mln shares owned by Western Digital, its former parent. SanDisk is not selling any shares itself and will receive no proceeds from the offering.

COMMUNICATIONS:

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  Meta Platforms (META) - CTO said Silicon Valley’s attitude toward defence tech has shifted, making it more acceptable for tech firms to support US military projects. He noted a longstanding "silent majority" within the industry eager to pursue defence work.


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  Alphabet (GOOG) - Alphabet CEO said the Co. will continue hiring engineers at least through 2026, emphasising the importance of human talent despite increased AI investments.


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  Nintendo (NTDOY) - Best Buy (BBY) and GameStop (GME) expect a rapid sellout of Nintendo’s new Switch 2 consoles at launch, with fans queuing hours in advance.


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  Rogers Communications (RCI) - Received league approvals to acquire Bell’s 37.5% stake in Maple Leaf Sports & Entertainment, raising its ownership to 75%. The deal, valued at CAD 4.7bln, awaits CRTC approval for a minor indirect interest in Toronto Raptors Network. Competition Bureau clearance was previously granted.


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  Roblox (RBLX) - Chief Product Officer Manuel Bronstein sold 24.3K shares on June 2nd for a total USD 2.2mln.

FINANCIALS:

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  Citigroup (C) - Will cut 3,500 tech jobs in China by Q4 as part of a global restructuring to streamline tech operations and improve risk and data management. Some roles will shift to other locations. Citi will retain around 2,000 staff in China post-cuts and continues efforts to build a local securities unit.


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  European Financials - A group of European countries, led by France and Spain, is launching the "Finance Europe" label to channel more retail investor savings into European capital markets, Bloomberg writes. The initiative aims to deepen integration and accelerate progress in Europe’s capital market union by certifying certain financial products, boosting investor confidence and cross-border investment.


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  Wells Fargo (WFC) - CEO said, after US regulators lifted growth restrictions, that they are looking into using the balance sheet for direct lending or the financing of midsize firms, via WSJ

CONSUMER DISCRETIONARY:

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  Amazon (AMZN) - Developing AI software for humanoid robots that could replace delivery workers, according to The Information. It is building a test facility in San Francisco and plans to use third-party hardware in trials. The initiative is part of broader AI-driven logistics upgrades.


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  PVH (PVH) - Shares fell in extended trading after it lowered guidance. Q1 2025 (USD): Adj. EPS 2.30 (exp. 2.25), Revenue 1.984bln (exp. 1.93bln). Guidance: Q2 adj. EPS 1.85-2.00 (exp. 2.46), with revenue growth in low single digits. Cut FY25 EPS to 10.75-11.00 (exp. 12.52; prev. 12.40-12.75), but backed FY25 revenue view of flat to slightly up. Commentary: Exec said its updated outlook includes a net negative impact from current US tariffs, with an unmitigated hit of around USD 1.05/share, partially offset by mitigation efforts, and a positive USD 0.10/share benefit from FX translation.


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  DoorDash (DASH), Grubhub (GRUB), Uber (UBER) - Uber Eats, DoorDash, and Grubhub agreed to settle their 2021 lawsuit against New York City over restaurant delivery fee caps. The companies will drop the case once NYC finalises legal adjustments, with terms due by December 31st, according to a filing.


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  Deliveroo (DLVEY) - Launched an autonomous drone food delivery service in Dublin through a partnership with Irish firm Manna Drones. The service will initially test drone deliveries in some west Dublin suburban areas to evaluate its effectiveness in serving these locations.


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  China Autos - China is drafting mandatory national safety rules for driver assistance systems after a fatal Xiaomi (XIACY) SU7 accident, aiming to tighten regulations on the rapidly evolving technology, BBG reports. The China Automotive Technology & Research Centre (CATARC), Dongfeng Motor Group (DNFGY), and Huawei are involved in the rule-making process.


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  Dongfeng Motor (DNFGY) - Shares dropped in Hong Kong and in Shanghai after the Co. revealed it is not currently pursuing the previously announced restructuring with another state-owned enterprise, WSJ reports.


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  Five Below (FIVE) Q1 2025 (USD): Adj. EPS 0.86 (exp. 0.83), Revenue 970.53mln (exp. 966.49mln), Q1 comps +7.1%. CFO Kristy Chipman will step down for personal reasons; COO Ken Bull, previously CFO for over a decade, will serve as interim CFO during the search for her replacement. Guidance: Q2 adj. EPS 0.50-0.62 (exp. 0.58), Revenue 975-995mln (exp. 958.33mln), with comp sales rising between +7-9%. FY26 EPS 4.25-4.72 (exp. 4.75), Revenue 4.33-4.42bln (exp. 4.37bln), with FY comps rising +3-5%.


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  Bridgestone (BRDCY) - Bridgestone's Firestone Liberia suspended rubber purchases after the government-mandated price for farmers rose 15.3% to 574.06 USD/ton. The new pricing was set by the recently formed Liberia National Rubber Pricing Committee, which will now review prices monthly.


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  Boyd Gaming (BYD) - COO Theodore Bogich will step down and retire effective December 31st. Bogich has held the COO role since December 2023 and is retiring for personal reasons, not due to any disagreement with the company.


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  General Motors (GM) - To recall 41.4k US vehicles, via NHTSA; due to a video display error potentially impacting critical safety information

CONSUMER STAPLES:

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  Brown-Forman (BF.B) Q4 2025 (USD) EPS 0.31 (exp. 0.34), Revenue 894mln (exp. 964mln); anticipates operating environment for Fiscal 2026 will be challenging; looking ahead to Fiscal 2026, continues to expect headwinds


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  Procter & Gamble (PG) - Will cut 7,000 jobs, about 15% of its global nonmanufacturing workforce, over two years as part of broader efforts to streamline operations and reduce its brand portfolio. Expects a non-core charge of USD 1.0-1.6bln, 25% of the charge is expected to be non-cash.


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  Starbucks (SBUX) - Appointed Mike Grams as COO, reinstating the role. Grams was previously EVP and North America chief coffeehouse officer, will now also oversee global coffeehouse development and supply chain. Brad Lerman will step down as chief legal officer once a successor is named.


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  Kimberly-Clark (KMB), Suzano (SUZ) - Kimberly-Clark is spinning off Kleenex and other products in its tissue unit outside the US into a USD 3bln JV and selling a majority stake to Brazilian pulp manufacturer Suzano. Upon closing, the transaction is expected to be approximately USD 0.30-0.40 dilutive to Adj. EPS.


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  Costco (COST) - Costco May sales results showed comparable (ending June 1st) ex-gas/FX were +5.5% in the US (prev. 7.1%), +6.3% in Canada (prev. 5.0%), +8.4% international (prev. 6.5%), for a total +6.0% (prev. 6.7%).


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  BJ's Wholesale (BJ) - CEO Robert Eddy sold 17.9K shares on June 2nd for a total USD 2.0mln.

INDUSTRIALS:

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  Boeing (BA) - Entered a Non-Prosecution Agreement with the DoJ on May 29th, resolving issues from a 2021 Deferred Prosecution Agreement breach. Boeing faces a USD 487.2mln criminal penalty, including USD 444.5mln compensation to victims’ families, must invest USD 455mln in compliance and safety, retain an independent compliance consultant, and maintain enhanced internal controls. The two-year NPA protects Boeing from further prosecution if obligations are met.


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  Wizz Air (WIZZ LN) - Annual operating profit fell, missing expectation, as grounded planes and high costs constrained capacity. The airline cited Pratt & Whitney (RTX) engine repairs limiting growth and gave no 2026 guidance due to low visibility amid economic uncertainty.


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  XPO (XPO) - Reported May LTL tonnage per day fell 5.7% Y/Y, driven by a 5% decline in shipments per day and a 0.7% drop in weight per shipment.


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  Planet Labs (PL) Q1 2025 (USD): Adj. EPS 0.00 (exp. -0.03), Revenue 66.3mln (exp. 62.25mln). Guidance: Q2 revenue 65mln-67mln (exp. 65.19mln) Adj. EBITDA -4mln to -2mln. Narrows FY26 revenue to 265mln-280mln (exp. 271.04mln); expects adj. gross margin of 55-57%, adj. EBITDA loss -12mln to -7mln, and Capex 50-65mln.

MATERIALS:

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  China, India Coal - China and India approved the largest new coal-fired power plant capacity in a decade to strengthen energy security, the IEA said. China authorised nearly 100 gigawatts in 2024, with India adding 15 gigawatts, bringing global approvals to their highest since 2015.


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  Glencore (GLNCY) - Cobalt Holdings, backed by Glencore, has cancelled its planned USD 230mln IPO in London, which was set for June 5th. The IPO aimed to raise funds for an initial cobalt purchase from Glencore and cover storage costs.


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  TMC (TMC) - Signed a revised sponsorship agreement with the Republic of Nauru and Nauru Ocean Resources, updating its 2017 terms. The deal maintains financial benefits, training, and community programs for Nauru and guarantees continuity benefits when NORI or a TMC subsidiary begins commercial production.


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  Greif (GEF) Q2 2025 (USD): Adj. EPS 1.19 (prev. 0.83 Y/Y), Revenue 1.39bln (prev. 1.37bln Y/Y). Notes ongoing industrial contraction, with no near-term demand inflection, but raises low-end guidance on better price/cost outlook. Guidance: Raises FY25 adj. EBITDA to USD 725mln (prev. 710mln) and FCF view to 280mln (prev. 245mln).


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  Lyondellbasell (LYB) - Enters into an agreement and exclusive negotiations with Aequita for the sale of four European strategic assessment assets

ENERGY:

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  Alberta Output - Rainfall in Alberta eased wildfire conditions for a second day, slowing fire spread and enabling partial restoration of oil sands output. Last week’s blazes disrupted about 7% of Canada’s daily oil production and prompted evacuations.


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  Oil Investments - The IEA said global oil investments are set to fall 6% in 2025, the first decline in a decade excluding the Covid slump, driven by economic uncertainties, lower demand expectations, and falling prices. The decline would reflect a sharp reduction in US tight oil spending, it added.


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  Transocean (RIG) - Exercised a USD 100mln two-well option for the Transocean Spitsbergen rig in Norway, with work expected to start in Q1 2026, continuing the rig’s current programme and adding about USD 100mln in backlog, excluding extra services.

HEALTHCARE:

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  HUTCHMED (HCM) - Hutchmed and Innovent announced China’s acceptance of the NDA for fruquintinib and sintilimab to treat advanced renal cell carcinoma after prior tyrosine kinase inhibitor failure.


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  Humana (HUM) - Reportedly informed congressional staffers that it would support moves to curtail billing practices relating to Medicare, via WSJ citing sources.

MACRO:

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  Fed Supervision - Federal Reserve Governor Michelle Bowman was confirmed by the US Senate as the Fed's vice chair for supervision, indicating a regulatory shift under President Trump. A Republican and longtime advocate of "tailored" oversight, Bowman is expected to pursue looser bank regulations than her predecessor Michael Barr, Bloomberg said.


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  Big, Beautiful Bill - Senate Republicans plan to include public land sales in their version of Trump’s tax cut bill, aiming to help offset costs. Senator Mike Lee confirmed the provision will appear in the budget bill draft expected Monday. Separately, the CBO projected that Trump's tariffs could generate more federal revenue over the next decade than would be lost from his new tax cuts, offering Republicans a potential political boost; however, the estimate assumes tariffs stay unusually high, a stance the administration has not formally committed to.


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  China PMI - China’s services activity expanded more quickly in May, with the Caixin services PMI rising to 51.1 (exp. 51.0, prev. 50.7); the gauge has now stayed above the 50.0 mark, indicating growth, for 29 consecutive months, suggesting consumer economy stability despite higher US tariffs threatening export demand, analysts said.


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  Japan 30yr Auction - Japan’s 30yr bond auction saw a bid-to-cover ratio of 2.92x, down from 3.07x at the prior sale and below the 12-month average of 3.39x, marking the weakest demand since December 2023. The average yield was 2.904% (prev. 2.941%), with the lowest accepted yield at 2.938%. The auction tail widened to 0.49 yen (prev. 0.30), reflecting weaker appetite amid global rising yields concerns. Following the auction, JGB yields on 30yr Japanese debt fell.


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  Japan Pay - Japan’s base pay rose 2.2% in April year-on-year, up from 1.4% in March, supporting the BoJ’s case for a rate hike amid economic risks; nominal wages increased 2.3% (exp. 2.6%), while full-time workers’ wages climbed 2.5%, staying in growth above 2% for 20 straight months.

GEOPOLITICS:

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  US-China - Chinese state-backed hackers infiltrated an unnamed US telecom firm in mid-2023, a year earlier than previously known wireless breaches, according to corporate investigators and a report shared with Western intelligence. The malware remained undetected for seven months, Bloomberg reports.


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  US-Ukraine-Russia - The Trump administration is redirecting key anti drone rocket fuses originally meant for Ukraine to US Air Force units in the Middle East, signalling a reduced Pentagon commitment to Kyiv’s defence, according to a recent Congressional notification cited by the WSJ.


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  Russia-N.Korea - North Korean leader Kim pledged full support for Russian President Putin and Russia’s foreign policies in all key international matters during a meeting with Putin’s security aide Sergei Shoigu in Pyongyang, reinforcing the sanctions-defying alliance and raising regional security concerns.

05 Jun 2025 - 13:45- Fixed IncomeResearch Sheet- Source: Newswires