Daily US Equity Opening News - HONA to join SPX, GOOG to replace VZ in Dow; FDX falls on guide; CBRS falls on margin view

DAY AHEAD:

US INDEX FUTURES: ES +0.3%, NQ +0.5%, YM unch, RUT +0.3%
BROKER MOVES: INVH upgraded at Wells Fargo; PFG downgraded at BofA. For the full list, click here.
MAJOR MORNING MOVES RECAP: Mag-7, HTZ, CBRS, FDX, GOOG, GME, TTWO, MU, Samsung Electronics. For the full list, click here.
US DAILY CONFERENCE CALENDAR: GS, MS, SPGI, AMD, DELL, INTC, MSFT, NVDA, WMT. For the full list, click here.
EVENTS: US President Trump will sign Road to Housing Act at 12:00EDT/17:00BST, will attend Senate Steering Committee lunch at 13:00EDT/18:00BST, and will meet NATO Secretary General at 15:30EDT/20:30BST. Canada provincial holiday (Quebec).
DATA: In North America, US new home sales for May (prev. -6.2% M/M) are due.
CENTRAL BANKS: Fed Bank Stress Tests are due after the US close. BoC will publish meeting minutes. Today’s speakers' slate include: Fed Governor Cook (voter) will give pre-recorded opening remarks. BoC’s Rogers speaks on infrastructure (text expected).
SUPPLY: US auctions USD 70bln of 5yr notes and USD 28bln of 2yr FRNs.
ENERGY: DoE weekly energy inventories are due; data released by the API afterhours on Tuesday showed headline crude stocks posting a smaller than expected draw of -0.8mln bbls (exp. -5.0mln), Cushing stocks drew down by -1.0mln bbls, distillates posted a surprise build of +1.4mln bbls (exp. -0.4mln), and gasoline also saw a surprise build of +1.2mln bbls (exp. -0.4mln).
EARNINGS: Notable US corporates reporting today include: Micron (MU), Jefferies (JEF).

NEWS:

GEOPOLITICS

US-Iran - US President Trump says that inspectors will be allowed to where Iran's uranium is, Fox reports; there is no rush getting them to the sites; USD 500mln initially for Iran to buy US goods. Trump said Iran has informed the US that there are no tolls, no insurance costs, and no other charges of any kind being sought or received by Iran on ships travelling the Strait of Hormuz. Meanwhile, Israeli Defence Minister Katz said they will not withdraw from Southern Lebanon, even if the US asks them to do so, Al Jazeera reports.
Qatar LNG - Qatar PM Al-Thani said QatarEnergy is preparing for restart as US-Iran peace talks signal progress towards ending the war and reopening the Strait of Hormuz, and plans to return normal LNG output from undamaged parts of its Ras Laffan facility within weeks, FT reports.
Freight Rates - A Sinokor supertanker was provisionally booked to carry Persian Gulf oil to India at 897 Worldscale points, or 897% of benchmark freight costs, Bloomberg reports citing shipbrokers. The rate reflects a shortage of empty vessels after many tanker owners diverted fleets during the three-month Strait of Hormuz closure.

MACRO

Fed’s Warsh - US Treasury Secretary Bessent signalled confidence in Fed Chairman Warsh, and predicted inflation would ease as the Iran conflict subsides. Bessent said he was confident that Warsh would optimise the path for both inflation and growth.
PBoC - PBoC monetary policy committee member Huang Yiping said China may still cut interest rates this year, though the economy needs more targeted support for technological innovation and improving livelihoods beyond looser monetary policy.
BoJ - The BoJ signalled the need for further rate increases in its summary of opinions from its 15-16th June meeting, when it raised the policy rate to 1%. One board member said the neutral rate appears to be around 2%, with the BoJ estimating a neutral range of 1.1-2.5%. A Bloomberg survey found about 90% of economists expect another hike by December, with more than a third forecasting October; economists now see rates reaching 1.75% in this cycle, up from 1.5% in an earlier survey.
Australia Inflation - Australia’s trimmed mean CPI rose 3.6% Y/Y in May (exp. 3.5%; prev. 3.4%), above the RBA’s 2-3% target; headline CPI rose 4% Y/Y (exp. 4.3%; prev. 4.2%). Housing remained the largest contributor to annual inflation, rising 6.5%, while automotive fuel prices fell 11.9% in May; weakness was seen in transport, clothing and footwear, and holiday travel, offset by stronger rents and new dwelling inflation. Westpac said it expects Q2 trimmed mean inflation of 1.0%, taking annual inflation to 3.8%, and retains its view that the RBA’s next hike is likely in August.

TRADE

US-EU - Germany plans to proceed with lower drug prices despite a US probe, Bloomberg reports. The health ministry called US accusations of unfair trade practices unfounded, and said deeper discounts are needed to stabilise public health-insurance finances. The reforms seek to narrow a funding shortfall expected to exceed EUR 40bln by decade-end.

INDEX

S&P 500 - Honeywell Aerospace (HONA) will join the S&P 500 and S&P 100 on 29th June; Honeywell Aerospace will replace Conagra Brands (CAG) in the S&P 500, while Conagra will replace Grid Dynamics (GDYN) in the S&P SmallCap 600. Honeywell International (HON) will be renamed Honeywell Technologies after the spin-off. Meanwhile, JPMorgan increased its S&P 500 year end price target to 7,800; says outlook approaching "Blue Sky" scenario.
Dow Jones Industrial Average - Alphabet (GOOGL) will be added to the index, replacing Verizon Communications (VZ), effective prior to the open on 29th June. Honeywell International (HON) will remain in the index following the spin-off of Honeywell Aerospace (HONA), which is expected to complete on 29th June; Honeywell Aerospace (HONA) will not be added to the DJIA.
S&P 400 - Toast (TOST) to replace TopBuild in the S&P 400 amid QXO (QXO) to acquire TopBuild (BLD) in a deal expected to close soon, pending final closing conditions.

TECH

Nvidia (NVDA) - The FT reported that prices for Nvidia AI chips on China's black market have surged amid US export restrictions and strong Chinese demand. The DGX B300 server reportedly rose from about RMB 4mln to RMB 8mnln over the past six months, while the RTX 6000 Pro increased from roughly RMB 50,000 to RMB 130,000.
Apple (AAPL) - Apple is set to begin mass production of its first foldable iPhone in late July, with key specifications for the display, case and mechanical components finalised, according to sources in Apple's Korean and Taiwanese supply chains cited by The Elec. Foxconn (HNHPF) will handle initial production, following an early trial run in April, and a September unveiling remains on track.
Qualcomm (QCOM) - Qualcomm is in talks to provide custom chip-design services to ByteDance, as it seeks to reduce reliance on smartphones, its largest revenue source, according to sources cited by Reuters. The chips would be based partly on technology from AlphaWave Semi, which Qualcomm acquired last year, with discussions reportedly involving video processing units and an eye toward mass production by year-end. The outcome remains uncertain, with ByteDance potentially pursuing other partners. Meanwhile, Qualcomm confirmed it is to acquire Modular and expects to issue up to 19.2mln shares of common stock to Modular equity owners as consideration.
China AI - Chinese fund managers are shifting toward more targeted AI stock positioning, concentrating bets on industry leaders capable of delivering orders and addressing capacity bottlenecks, according to China Securities Journal. The report suggests the broader “anything related to AI would rise” narrative may be fading.
Samsung Electronics (SSNLF) - Samsung Electronics plans a USD 58.61bln share buyback linked to employee stock bonuses, Yonhap reports. Separately, Samsung Electronics has allocated about half its HBM production capacity to HBM4, Chosun reports; around 75K of 150K monthly HBM DRAM wafer inputs are reportedly assigned to HBM4, with the rest to 12-layer HBM3E.
Samsung Electronics (SSNLF), SK Hynix (HXSCL) - Leveraged ETFs tracking Samsung or SK Hynix likely sold a combined USD 6bln of the Korean chipmakers’ shares on Tuesday to maintain ratios, Bloomberg said. The sales accounted for about 14% of Samsung and SK Hynix turnover, underscoring how leveraged single-stock ETFs amplified market moves.
SK Hynix (HXSCL) - SK Hynix is expected to file a statement with Korea’s financial regulator for an ADR offering, marking the next step toward a US listing, Korea Economic Daily reports. Industry estimates put the offering’s size at as much as USD 26bln, though earlier reports suggested it could raise up to USD 10bln. A more recent report has suggested a figure of around USD 29.5bln. The regulator’s review could conclude by 3rd July, potentially allowing trading to begin as early as next month. SK Hynix to raise up to KRW 45tln in ADR listing in July.
SoftBank (SFTBY) - SoftBank’s Masayoshi Son said he plans to remain at the helm for another decade or more, abandoning his long-held intention to retire in his sixties, in order to accelerate AI proliferation and build SoftBank into the world’s leading AI-powered robotics company. The 68-year-old said he has revised his “50-year plan” and will work another 10-15 years.
Intel (INTC), TSMC (TSM), SoftBank (SFTBY) - SoftBank CEO Masayoshi Son said Intel is an indispensable national security play for the US, with its manufacturing role seen as vital for looking beyond TSMC.
ASML (ASML), NXP (NXPI) - Companies are to join Dutch trade delegation to China as the US ushes chip export curbs, SCMP reports, citing sources. Nexperia will not be part of the delegation, the source said. The executives agreed to join on the condition that Dutch Trade Minister Sjoerdsma would refrain from raising human rights issues or arms sales to Taiwan.
ByteDance - ByteDance is in prelim talks with banks for an offshore loan of about USD 20bln, Bloomberg reports. The borrowing would be its largest offshore loan and could have a 3yr tenor, extendable to 5yrs.
Oracle Health (ORCL) - Oracle and Theator are working together to provide AI-powered surgical intelligence solutions to Oracle Health customers in the US.
ASE Technology Holding (ASX) - The world’s largest chip packaging and testing provider is expanding capacity to meet AI demand, COO said. The company is adding 15 new sites this year, including six greenfield ASE sites, seven for unit Siliconware Precision Industries, and sites acquired from Innolux. CapEx is budgeted at USD 8.5bln, and may exceed that figure, with the COO stating that the expansion targets demand through 2029 and beyond. ASE has two testing factories in California, with two more planned, while it is still evaluating a potential Arizona investment requested by a particular customer.
Cerebras Systems (CBRS) - Shares fell over 10% in extended trading after the AI chipmaker forecast a decline in gross margins, overshadowing strong revenue growth in its first earnings report since going public. Q1 2026 (USD): EPS -0.22 (exp. -0.16), Revenue 193.4mln (exp. 181.2mln). Core revenue 191.3mln (vs 99.5mln Y/Y). CEO Andrew Feldman said it was an outstanding start to 2026 as AI moves from novelty to productivity and demand builds for faster AI infrastructure; he said Cerebras’ wafer-scale technology is driving momentum with customers including OpenAI and AWS, as advanced AI applications require infrastructure capable of delivering at unprecedented speed. Sees Q2 core revenue ~194mln (exp. 177.67mln), core gross margin between 36-38%, and core operating margin between -32% and -30%; sees FY26 core revenue between 855-865mln (exp. 824.8mln) and core gross margin between 38-41%.
Nebius (NBIS) - Launched Nebius AI Cloud 3.6 with enhanced developer security and storage updates.
STMicroelectronics (STM) - STMicroelectronics unveiled the ST54M secure mobile chip, featuring post-quantum cryptography hardware acceleration; certifications are targeted for July 2026.
Sunrun (RUN) - Agreed with Renew Home and Tesla (TSLA) to deliver more than 16 GW of power for data centers and large loads; says it is "deployable in months, not years".
Grindr (GRND) - Grindr appointed CEO George Arison as Chairman, effective 23rd June. J. Michael Gearon, Jr. will remain Lead Independent Director.

COMMUNICATIONS

GameStop (GME), eBay (EBAY) - CEO Ryan Cohen will forgo a potential USD 35bln performance pay package, unveiled in January, to focus on his bid to acquire eBay. Will release further details on its eBay plans this week, including the strategic rationale and operational plan for the combined company.
Meta Platforms (META) - The Trump administration is pressing Meta to submit its AI models for voluntary government review, NYT reports. Meta is the only major US AI developer without such an agreement. OpenAI, Anthropic, Google, xAI and Microsoft have already agreed to submit models to the Centre for AI Standards and Innovation.
Nokia (NOK), AWS (AMZN) - Expanded their collaboration to support autonomous networks, with Nokia's Autonomous Networks Fabric set to run on AWS, giving telecom operators access to AI and cloud services aimed at Level 4 network autonomy. Availability is expected later this year.
Warner Bros Discovery (WBD) - The EU is set to approve Paramount's (PKSY) USD 111bln takeover of Warner Bros if certain remedies are accepted, the FT reports Remedies could include for Paramount to exit its JV with Universal Pictures.
Take-Two (TTWO) - Announced that pre-orders for Grand Theft Auto VI will begin on June 25, 2026. Game launches November 19th. Base edition launching for USD 79.99. Ultimate edition at USD 99.99. All pre-orders and purchases before November 20th include the Vintage Vice City Pack. Pre-order can be pre-loaded from November 12th, playable from the 19th.
Tencent (TCEHY) - Tencent is rolling out an AI agent named Dayuan, built on DeepSeek’s latest V4 model, to select users on WeCom, the enterprise version of WeChat. The assistant can analyse users’ group chats, emails and calendar entries to assess customer feedback and automate recurring tasks such as compiling industry briefs.

FINANCIALS

Morgan Stanley (MS) - Morgan Stanley has again limited redemptions at its USD 7bln North Haven Private Income Fund after investors sought to withdraw about 11.6% of units outstanding, with the fund meeting 43% of Q2 redemption requests. About half of the latest requests came from investors previously unable to fully cash out, following a 10.9% withdrawal request in Q1. A smaller affiliated fund faced 7.2% redemption requests, with 5% to be honoured, Reuters reports.
BlackRock (BLK), KKR & Co. (KKR), Brookfield Asset Management (BAM) - Artificial Intelligence Infrastructure Partnership, Brookfield, IFM Investors, KKR and DigitalBridge Group are possible bidders for Stack Infrastructure’s Asia-Pacific data centres, Bloomberg reports citing sources. Stack has been gauging interest and is preparing to start a sale process as soon as July.
Principal Financial Group (PFG) - Downgraded at BofA to 'Underperform' from 'Neutral' with a USD 95 PT (prev. 98), citing an expectation of decelerating operating income growth in the next 12 months. The firm expects Principal's operating income growth to slow to mid-single-digits from low-double-digits currently and notes that shares now trade near the high ends of their relative trading ranges, while the dividend yield forecast appears to be breaking below 3% for the first time since February 2023.
Allianz (ALIZY) - Allianz said ship insurers face significant Iran war claims, including possible total losses, with vessels and cargo worth USD 125bln trapped in the Persian Gulf as of 15th June.

REAL ESTATE

Housing Bill - The US House passed housing legislation in a 358-32 vote, sending it to President Trump’s desk; he is expected to sign it Wednesday, according to officials. The bill bars institutional investors with more than 350 homes from buying additional single-family properties, streamlines factory-built housing rules, and encourages localities to ease construction barriers.
SEGRO (SEGXF), Prologis (PLD) - SEGRO rejected Prologis’ all-share takeover proposal, which valued SEGRO at about GBP 12.6bln. Under the proposal, SEGRO shareholders would have received 0.084 new Prologis shares per SEGRO share held, implying a value of 925p/shr, or a 25% premium to SEGRO’s Tuesday closing price. Prologis said it sees a clear strategic rationale for combining, and urged SEGRO shareholders to push the board to engage.

CONSUMER DISCRETIONARY

Nike (NKE) - Nike appointed David M. Denton as Executive Vice-President and CFO, effective 17th August. Matthew Friend will step down as CFO and remain until 4th September to support the transition. Friend will participate in Nike’s Q4 earnings call on 30th June, as planned. Nike added that Q4 results will include a benefit from tariff refunds that was not included in prior guidance; ex this one-time benefit, Q4 results are expected to be generally in line with previously provided guidance.
KB Home (KBH) Q2 2026 (USD): EPS 0.43 (exp. 0.45), Revenue 1.11bln (exp. 1.09bln). Homes delivered -23% Y/Y to 2,395; average selling price declined to USD 461,900 (from USD 488,700 Y/Y). Exec said results met or exceeded the mid-point of key guidance ranges, with the return to a predominantly Built to Order model gaining momentum as those homes represented 73% of net orders. It opened 35 communities, reduced build times by more than a week sequentially and remained disciplined in a difficult market. Sees Q3 housing revenue between 1.2-1.35bln (exp. 1.35bln), deliveries between 2,600-2,800 homes, housing gross profit margin between 16.0-16.6%, SG&A as a percentage of revenue between 11.3-11.9%, on an effective tax rate between 19-21%, and ending community count between 270-280. Sees FY26 housing revenue between 4.9-5.3bln (exp. 5.05bln), deliveries between 10,500-11,000, housing gross profit margin between 16.1-16.5%, SG&A between 11.4-11.8%, and effective tax rate between 22-24%.
Hertz (HTZ) - Guided Q2 adj. corporate EBITDA of USD 50-80mln; current unexpected softness in the use car market negatively impacted net DPU per month. Now expects Q2 net DPU/month of ~USD 300. Filed automatic shelf registration for USD 100mln common stock offering.
Volkswagen (VWAGY) - Volkswagen’s Audi is considering lowering its medium-term sales target to 2mln vehicles (from 2.2mln) and whether to build a new plant in the US, according to Handelsblatt.

CONSUMER STAPLES

Walmart (WMT) - Flipkart plans to add 500 neighborhood warehouses to expand its Minutes quick-commerce business in India, with a particular focus on smaller cities and towns, as it competes in the country's rapidly growing quick-commerce market. The expansion comes as Flipkart continues preparations for a potential Mumbai IPO.
Target (TGT) - Announced back-to-school offers, with 20% off for teachers and college students.

INDUSTRIALS

FedEx (FDX) - Shares fell in extended trading after its weaker-than-expected profit guidance overshadowed stronger Q4 results and management’s positive comments on transformation efforts. Q4 2026 (USD): EPS 6.31 (exp. 5.95), Revenue 25.0bln (exp. 24.03bln). The CEO said it delivered a strong finish to FY26, with transformation initiatives and profitable growth driving momentum across its global industrial network, while the FedEx Freight spin-off positions the company to optimise its network, reduce cost to serve and drive free cash flow. On call, management said B2B services drove most quarterly revenue growth, with progress in healthcare, automotive, aerospace and data centre verticals, while ground economy volume fell about 5% and international export package volumes rose 5% Y/Y. USD 1.3bln remains under its 2024 repurchase authorisation, and it intends to repurchase up to USD 1bln of shares opportunistically in 2026. Sees 2026 EPS between 16.90-18.10 (exp. 19.86) and revenue growth of 11%, including around three percentage points from fuel surcharge benefit, and sees June-December revenue growth of 10% Y/Y, and capex of USD 3.9bln.
Airbus (EADSY) - The EASA ordered urgent inspections of 16 Airbus A380 aircraft after cracks were found in wing spars; EASA said the cracks could reduce wing structural integrity. Five aircraft require immediate inspection, while 11 must be inspected within 25 flight cycles.
Lockheed Martin (LMT) - Lockheed Martin received a USD 8.4bln US Army contract modification to raise the ceiling and extend the ordering period for Precision Strike Missiles Increment One production, Early Operational Capability assets, follow-on production, development and obsolescence management through FY 2032. The modification raises the contract’s total cumulative face value to USD 13.34bln.
Boeing (BA) - Boeing received a maximum USD 2bln Air Force contract for the Mobile User Objective System service life extension Phase II effort.
FuelCell Energy (FCEL) - Entered a strategic agreement with Fit Energy for up to 380 MW of on-site power capacity for data centers using FuelCell Energy's fuel cell technology. The agreement includes an immediate deposit for an initial 30 MW, with power delivery expected to begin later this year.
Rheinmetall AG (RNMBY), TKMS (TKAMY) - Rheinmetall shares fell as much as 18% in European trade after Germany was said to be planning to shelve a contract for six F126 anti-submarine frigates from the company in favour of rival TKMS, Bloomberg reports. Morgan Stanley analysts estimated the decision would result in around EUR 2bln of writeoffs, calling the potential cancellation "clearly negative news" given Rheinmetall had been confident of securing the contract before summer. TKMS shares rose as much as 12%.

ENERGY

US Gasoline Prices - President Trump said he has ordered the DoJ to look into gasoline prices, saying oil companies are not lowering pump prices in line with sharply lower crude costs. Average nationwide gasoline prices surged to their highest since 2022 following US and Israeli strikes on Iran, but have since fallen 14% since late May to below USD 4/gallon, though still above the 5yr seasonal averages. Meanwhile, US commercial gasoline inventories are currently around their lowest for this time of year since 2014.
Energy Inventories - Data released by the API afterhours on Tuesday showed headline crude stocks posting a smaller than expected draw of -0.8mln bbls (exp. -5.0mln), Cushing stocks drew down by -1.0mln bbls, distillates posted a surprise build of +1.4mln bbls (exp. -0.4mln), and gasoline also saw a surprise build of +1.2mln bbls (exp. -0.4mln).
China Refiners - China’s independent oil refiners cut operating rates to a nine-year low, Bloomberg reports. Run rates at teapots fell to 50.5% in the week to 21st June, below pandemic-era lows and the weakest since 2017. JLC cited high feedstock costs, weak domestic fuel demand and product export curbs squeezing margins.
El Nino - El Nino-driven dryness and heat will raise the risk of severe haze in Southeast Asia this year, according to the Singapore Institute of International Affairs. The institute raised its severe-haze risk rating to high, the top category, with August-September identified as the peak danger period for Singapore, Indonesia, Malaysia and Brunei.

MATERIALS

China Zinc - Chinese zinc producers are waiting for exports to become more profitable to clear a domestic glut, Bloomberg reports. Shanghai zinc futures are more than USD 400/ton below international prices, the biggest discount since 2022. A Jinrui Futures analyst said the window must widen by about USD 100 for LME warehouse shipments.
Rio Tinto (RIO) - A Rio Tinto exec said it expects its lithium business to grow faster than its copper, iron ore and other divisions, as it works to triple lithium production by 2028 to meet demand from the EV and battery storage markets.
Anglo American (NGLOY) - Anglo American announced a definitive agreement with Codelco to implement a joint mine plan for their adjacent Los Bronces and Andina copper mines.

HEALTHCARE

Abbisko Therapeutics, Eli Lilly (LLY) - Companies entered a new strategic research collaboration and license agreement covering multiple drug targets. Abbisko will receive an upfront payment and is eligible for up to approximately USD 1.9bln in development, regulatory, and commercial milestones, plus tiered royalties on any resulting product sales.
Merck (MRK) - Announced that KEYTRUDA, in combination with Padcev, is approved in the EU as neoadjuvant treatment and then continued after radical cystectomy as adjuvant treatment, for adults with resectable MIBC.
MoonLake Immunotherapeutics (MLTX) - 9mln share secondary priced at USD 20.00; deal size was increased to USD 200mln in common stock and prefunded warrants from USD 150mln.