US EQUITY OPEN: Indices chop after the open in thin newsflow as Trump continues Middle East trip

Analysis details (15:05)

OPEN: US indices initially opened with upside bias, continuing on the gains seen this week, albeit the RUT is in the red in thin headline newsflow on Wednesday amid a lack of tier 1 US data. Supporting risk sentiment was White House economic adviser Hassett stating the admin has more than 20-25 deals on the table and when President Trump returns, he will announce the next deal. Fed speak came via Goolsbee and Jefferson, albeit little new was said, but the latter noted Q1 GDP overstated deceleration in activity. Sectors are seeing downside bias, although mega-cap sectors Tech, Communication Services, and Consumer Discretionary sit in the green, while Utilities and Materials lag. The Dollar is lower with JPY the clear outperformer, while Treasuries are firmer across the curve. WTI and Brent are lower by c. USD 0.30/bbl, albeit off earlier troughs which were seen as Trump noted the US wants to do a deal with Iran. The calendar ahead is very light with weekly EIA data the only thing scheduled, as well as CSCO earnings and Fed’s Daly after-hours.

STOCK SPECIFICS:

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  American Eagle Outfitters (AEO): Solid Q1 prelim earnings but withdrew FY25 guidance citing macro uncertainty


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  Hon Hai (HNHPF): Net profit topped exp. driven by strong AI server demand


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  Tesla (TSLA): Board has formed a special two-person committee to consider a new stock option package for Musk


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  Walmart (WMT): CFPB dropped its lawsuit against Walmart & its fintech partner


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  GlaxoSmithKline (GSK): Will acquire liver drug efamisfermin for $1.2bln upfront w/ potential milestone payments of up to $800mln


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  Novo Nordisk (NVO) and Septerna (SEPN): To collab on oral small molecular modules w/ deal worth up to $2.2bln for Septerna


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  AbbVie (ABBV): Downgraded at Citi


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  PVH (PVH): Upgraded at Jefferies


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  AMD (AMD) announces a new USD 6bln share repurchase authorisation.


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  Costco (COST) and Affirm (AFRM) partner to bring new, flexible payment option to Costco.com.

14 May 2025 - 14:55- ForexGeopolitical- Source: Newsquawk