Daily US Equity Opening News - META plans to build cloud business to sell excess AI compute; NKE falls on demand view

DAY AHEAD:

US INDEX FUTURES: ES -0.4%, NQ -0.9%, YM -0.4%, RUT -0.3%
BROKER MOVES: NOW & CRM upgraded at Guggenheim; TFC downgraded at Raymond James. For the full list, click here.
MAJOR MORNING MOVES RECAP: NKE, SSTK/GETY, STZ, CAT, BE, MSFT, GIS, KR, CRM. For the full list, click here.
EVENTS: US envoys Steve Witkoff and Jared Kushner are in Doha to discuss US-Iran negotiations with mediators, not Iranian officials; no high-level or direct talks are scheduled in coming days, though technical talks between lower-ranking officials will continue this week, including on nuclear, economic, security and regional issues.
DATA: In North America, ISM Manufacturing PMI for June is expected to see the headline at 54.0 (prev. 54.0), prices paid at 79.0 (prev. 82.1), new orders at 56.0 (prev. 56.8) and employment at 49.0 (prev. 48.6). US construction spending for May is also due today. After today’s data releases, the Atlanta Fed GDPNow Q2 2026 tracking estimate will be updated (prev. 2.50%).
CENTRAL BANKS: ECB Sintra forum closes; speakers from the event today include ECB President Lagarde, Fed Chair Warsh, BoE Governor Bailey, and BoC Governor Macklem, who will all participate in a policy panel. Elsewhere, ECB’s Vujcic, Cipollone and Lane (dovish) will chair sessions at Sintra.
ENERGY: EIA weekly energy inventories due; afterhours on Tuesday, API data reportedly showed headline crude stocks posting a larger than expected draw of -6.1mln bbls (exp. -4.1mln), Cushing stocks building by +0.5mln bbls; in the products, distillates posted a surprise build of +2.9mln bbls (exp. -0.9mln), while gasoline inventories saw a larger than expected draw of -2.1mln bbls (exp. -0.9mln).

NEWS:

GEOPOLITICS

Doha Talks - US envoys Steve Witkoff and Jared Kushner are in Doha to discuss US-Iran negotiations with mediators, not Iranian officials; no high-level or direct talks are scheduled in coming days, though technical talks between lower-ranking officials will continue this week, including on nuclear, economic, security and regional issues. Qatar’s PM and Foreign Minister met Witkoff and Kushner to discuss the latest developments; Witkoff and Kushner affirmed Washington’s commitment to the negotiating process and support for efforts toward a comprehensive agreement.
US-Iran - US President Trump has discussed resuming full-scale attacks on Iran with Defence Secretary Hegseth and General Caine, according to US officials cited by the WSJ. Trump has opted to continue diplomatic talks for now, believing further attacks could derail diplomacy and efforts to dismantle Iran’s nuclear programme.

MACRO

Japan Tankan - Japan’s Q2 Tankan was stronger than expected, with large manufacturers at 22 (exp. 16) and large non-manufacturers at 37 (exp. 35), the highest readings in years. Capex plans also beat expectations at 11.5 (exp. 11), while corporate inflation expectations rose. The non-manufacturing outlook softened. Analysts said the data supports the view that Japan’s economy remains resilient despite geopolitical risks, strengthening the case for further BoJ tightening.
China PMI - China’s RatingDog manufacturing PMI slipped to 51.7 in June (prev. 51.8); still, the Q2 average reached 51.9, the highest since Q4 2020. New orders rose for a thirteenth month, while input-cost inflation slowed, though economists cited reliance on exports and AI-related technology amid wider economic fragility.

TECH

Apple (AAPL) - Apple CEO Tim Cook and EU tech chief Henna Virkkunen held constructive talks on Apple’s planned Siri AI launch in Europe, FT reports. Discussions covered how Apple could avoid fines under the Digital Markets Act, with Apple seeking assurances over a proposed “Trusted System Agent”, and EU officials resisting an interoperability delay.
Nvidia (NVDA) - Invested an unspecified capital amount into Verkada, The Information reports.
Microsoft (MSFT) - Microsoft plans to announce fresh job cuts affecting thousands of roles, including sales, consulting and Xbox, Business Insider reports. The reductions are expected to be less than 2.5% of its 220K workforce, and smaller than last year’s layoffs, as the company controls costs while increasing AI spending.
Anthropic - Anthropic said the US government has lifted export restrictions on Claude Fable 5 and Mythos 5, with access to resume on Wednesday. Commerce Secretary Lutnick said Anthropic had addressed security risks and agreed to detect risks, collaborate on future releases and alert the government to malicious activity.
SK Group, KKR & Co. (KKR) - SK Inc and KKR will launch South Korea’s largest renewable energy platform, valued at KRW 2tln, Reuters reports. The venture will combine SK Innovation, SK ecoplant and SK eternix assets across solar, wind and fuel cells, with 1.7GW operational capacity and a pipeline taking total capacity to 10GW.
Progress Software (PRGS) Q2 2026 (USD): EPS 1.62 (exp. 1.49), Revenue 253.5mln (exp. 242.7mln); sees Q3 EPS at 1.53-1.59 (exp. 1.45) and Q3 revenue of 244-250mln (exp. 250mln); raised FY26 EPS view to 6.09-6.21 (exp. 5.98, prev. 5.91-6.03) and raised FY26 revenue view to 990mln-1.002bln (exp. 994mln, prev. 988mln-1.00bln).
Salesforce (CRM) - Upgraded at Guggenheim to 'Buy' from 'Neutral' with a USD 228 PT, arguing that the fatal AI bear case on software is a "hallucination." While the firm does see AI as a significant risk and views Salesforce as likely to be negatively impacted by the advent of Agentic AI, it believes "the Armageddon scenario currently priced into the stock is misaligned with reality".
Nice (NICE) - Announced it will be a launch partner for the AWS European Sovereign Cloud, expanding its strategic relationship with AWS. NICE will make its agentic AI-powered customer experience platform available on the sovereign cloud, enabling European customers to deploy advanced AI tools while meeting data residency, operational autonomy, and EU digital sovereignty requirements, particularly in regulated sectors like the public sector, financial services, and healthcare.
Super Micro Computer (SMCI) - Taiwan detains Super Micro workers in China chip smuggling probe, according to Bloomberg.

COMMUNICATIONS

Paramount Skydance (PSKY), Warner Bros. Discovery (WBD) - Reuters reported that Paramount Skydance has offered remedies to the European Commission to address antitrust concerns over its proposed acquisition of Warner Bros. Discovery. The company said it believes the proposed remedies fully address the Commission's preliminary concerns and support a timely regulatory clearance.
Alphabet (GOOG) - Google is rolling out Gemini Spark updates, including a Beta macOS app for Google AI Ultra subscribers aged 18+ in the US. Meanwhile, South Korea’s antitrust regulator said it will recommend corrective measures and a financial penalty against Google, alleging the company abused its dominant position in the Android app marketplace (Google Play) to restrict competition. The Korea Fair Trade Commission said the alleged conduct impacted KRW 14.16tln in revenue, citing contract structures that increased Google’s financial support as developers earned more via Google Play, reinforcing incentives to prioritise its ecosystem.
Shutterstock (SSTK), Getty Images (GETY) - Shutterstock shares fell about 30% afterhours trading, and Getty Images shares fell around 10%, after Getty said it would terminate their planned merger following a UK CMA ruling, which required Getty to sell its editorial photography business for the USD 3.7bln deal’s approval.
EchoStar (SATS) - Dish DBS, a unit of EchoStar, filed for prepackaged Chapter 11 in Texas after reaching a creditor deal. The plan is intended to facilitate early repayment of Dish DBS debt and support the transition of Dish Wireless after spectrum sales.

CONSUMER DISCRETIONARY

Nike (NKE) - Nike shares fell in extended trading as cautious demand commentary, pressure on consumers worldwide and ongoing weakness in Greater China outweighed stronger-than-expected results. Q4 2026 (USD): EPS 0.72 (exp. 0.13), including a 0.52 benefit related to the expected recovery of IEEPA tariffs; Revenue 11.0bln (exp. 10.85bln). Nike Brand revenue was flat at 10.7bln, -3% cFX; wholesale revenue +4% to 6.6bln; Nike Direct revenue -7% to 4.1bln; Converse revenue -32% to 244mln. Greater China revenue -17% in cFX, North America revenue +3%. CEO Elliott Hill said Nike is not living up to its full potential and progress remains uneven, with the turnaround still facing weak sportswear demand, challenged Jordan streetwear sell-through, elevated inventory clean-up and pressure on global consumers. CFO Matthew Friend said the operating environment became more challenging through Q4 and is not expected to improve over the next six months. Nike sees Q1 revenue down low to mid-single digits, Q1 gross margin slightly positive, Q1 SG&A dollars flat, and FY26 tax rate in the low 20% range, assuming incremental tariff rates of 10% through 31st July 2026 and 15% thereafter.
Papa John’s (PZZA) - Papa John’s named Chris Collins interim CFO, effective immediately, succeeding Ravi Thanawala, who is leaving for a CFO role at another public company. Thanawala will advise until 31st July. Papa John’s has begun a permanent CFO search.
Kura Sushi (KRUS) - Kura Sushi plans to grow its US store count by 20% annually and exceed 100 locations this year, Bloomberg reports. Exec said the chain aims to secure markets before rivals expand, with a longer-term target of about 300 US locations and operating profitability within one to two years.
Sysco (SYY) - Awarded a USD 281.02mln Defence Logistics Agency contract for full-line food and beverage items.
BYD (BYDDY) - Reported June Vehicle Sales of 403.5K (prev. 382.6K Y/Y). BYD’s special adviser for the European market said EU regulations are increasingly complicating consumers' purchase decisionsWe are actively looking for a production site in Western Europe.
XPeng (XPEV) - Delivered 40,126 vehicles in June and 103,295 vehicles in Q2, with GX deliveries reaching 6,739 units in June. The company also said it will debut the MONA L03 in China on July 2, with presales beginning the same day and a global launch planned for July.
Nio (NIO) - Delivered 40,597 vehicles in June, up 62.9% year over year, and 107,658 vehicles in Q2, up 49.4% year over year. June deliveries included 21,908 Nio-branded, 11,743 Onvo, and 6,946 Firefly vehicles, bringing cumulative deliveries to 1,188,715 as of June 30.
Li Auto (LI) - Delivered 30,895 vehicles in June, bringing cumulative deliveries to 1,733,687. The company also noted that Li i6 cumulative production surpassed 150,000 units, launched the all-new Li L8 on June 23, and plans to launch the new Li L6 in July.
BMW (BMW) - BMW will buyback up to EUR 625mln in shares as part of its third tranche of its share buyback programme.

CONSUMER STAPLES

Constellation Brands (STZ) - Shares rose in extended trading after better-than-expected results, resilient beer sales and reaffirmed profit guidance outweighed a revenue decline linked to wine and spirits divestitures. Q1 2026 (USD): Comparable EPS 3.43 (exp. 3.23), Revenue 2.43bln (exp. 2.40bln). Beer segment net sales rose 2% to 2.28bln, supported by demand for brands including Corona and Modelo Especial, and wine and spirits organic net sales rose 8%. Enterprise organic net sales grew, and share gained despite a discerning and value-conscious consumer environment. Sees FY27 comparable EPS between 11.20-11.90 (exp. 11.74), reaffirming its prior view; sees FY27 capex of 800mln, and FCF between 1.6-1.7bln.
General Mills (GIS) Q4 2026 (USD): Adj. EPS 0.95 (exp. 0.80), Revenue 4.60bln (exp. 4.59bln). Expects Q1 results to be below annual guidance ranges on top and bottom lines and sees FY27 adjusted EPS at 3.00-3.20 (exp. 3.13). Announced a plan to generate USD 3bln in cumulative cost savings through fiscal 2030 to help offset input cost inflation, fund growth investments, and accelerate profit and cash flow growth. The company expects to achieve at least USD 750mln in savings in fiscal 2027, with approximately USD 2bln coming from productivity initiatives and USD 1bln from broader transformation and cost-efficiency efforts.
Kroger (KR) - Announced it will acquire Giant Eagle in a USD 1.65bln transaction (1.25bln cash + 400mln liabilities), funded in cash, expanding its supermarket and pharmacy footprint across the US Midwest and Mid-Atlantic. The deal has board approval and is expected to close in 2027, subject to regulatory clearance, with some store divestitures likely required. Kroger expects the acquisition to be EPS accretive in the second full year after closing, while maintaining its leverage target range of 2.3–2.5x net debt/EBITDA and continuing dividends and its USD 2bln buyback program.
Associated British Foods (ASBFY) - ABF still expects annual profit below the prior year, after it reported flat Q3 revenue; Primark, which ABF plans to spin-off from its food businesses, saw revenue up 3%.

FINANCIALS

KKR & Co. (KKR) - KKR agreed to acquire EDF power solutions’ US and Canadian renewable operations from EDF for about USD 4.2bln, with potential additional payments of up to USD 0.39bln.
FactSet Research Systems Inc. (FDS) Q3 2026 (USD): Adj. EPS 4.53 (exp. 4.45), Revenue 622mln (exp. 618mln). Reaffirmed FY guidance, seeing FY26 adj. EPS of 17.25-17.75 (exp. 17.11) and revenue of 2.45-2.47bln (epx. 2.46bln). More than 90% of FactSet's top 50 clients now use four or more AI products. New partnerships with Google Cloud, Finster AI, and TIFIN.AI, alongside FactSet's MCP server, are broadening adoption of AI-ready solutions, positioning FactSet as the trusted partner powering next-generation financial workflows.
Klarna (KLAR) - Swedish court orders Google to pay SEK 14.3bln to one of Klarna-owned PriceRunner. The award compensates for lost revenue caused by Google's preferential treatment of its own comparison-shopping service over independent price-comparison services, conduct that also drives up costs for consumers. A Google spokesperson said they do not agree with the decision and will consider legal options.
European Banks - The ECB is considering raising banks’ minimum reserve requirements to 2% of customer deposits (from 1%), Reuters reports; the move would aim to reduce the ECB’s interest bill and mitigate inflation-related side effects; a decision expected in the Autumn.
Schroders (SHNWF) - Schroders is close to selling financial planning arm Benchmark Capital to Soderberg & Partners for more than GBP 200mln, according to the FT; the sale would support its focus on UHNW clients.

INDUSTRIALS

Caterpillar (CAT) - Investor Michael Burry said he is shorting Caterpillar for the first time; he said Caterpillar’s valuation had become stretched after an 86% H1 gain, citing its record price-to-sales ratio and broader concerns over AI-linked stock valuations. He also now has bearish positions in Nvidia (NVDA), Applied Materials (AMAT), Tesla (TSLA) and the iShares Semiconductor ETF, CNBC reports.
SpaceX (SPCX) - SpaceX is offering discounted Starlink internet plans in Memphis, Tennessee, after local opposition and legal challenges over SpaceXAI data centres, Bloomberg reports. Customers can access plans at half the monthly price, while new users avoid upfront hardware costs. The company also agreed to resume construction of a recycled wastewater plant in Memphis.
Bloom Energy (BE) - Bloom Energy and Brookfield expanded their AI infrastructure power partnership to USD 25bln (from USD 5bln), Reuters reports. The financing will support global deployment of Bloom’s fuel cells for AI data centres.
Boeing (BA) - Boeing said an unplanned IT outage affected some computer systems and applications, but said it understood the cause and had no reason to believe it was a cyberattack, The Air Current reports. The outage significantly disrupted commercial and military production, with final commercial jet inspections and paperwork largely halted.
Lockheed Martin (LMT) - Upgraded at Citi to 'Buy' from 'Neutral' with a USD 582 PT (prev. 571). The firm said "cheap" valuation, improving fundamentals, and exposure to "fast-growing themes" through its Missiles and Fire Control segment create an attractive risk/reward at current share levels. Meanwhile, Lockheed was awarded a USD 3bln Army contract for Sentinel A4 radar production and engineering services.
QXO (QXO) - QXO completed its acquisition of TopBuild, expanding its building products and installation platform. CEO Brad Jacobs said the deal is expected to be highly accretive to earnings and generate at least USD 300mln of annual synergies by 2030, primarily from procurement, pricing, and cross-selling. The company also announced that former TopBuild Chairman Alec Covington has joined QXO's board, replacing Jared Kushner.
MSC Industrial (MSM) Q3 2026 (USD): Adj. EPS 1.43 (exp. 1.26), Revenue 1.05bln (exp. 1.03bln).
FedEx (FDX) - The FT reported that CMA CGM is in advanced talks to acquire FedEx’s third-party logistics unit (FedEx Supply Chain) for approximately USD 1.4bln in cash. A deal could be finalised as soon as Wednesday. The transaction would allow FedEx to refocus on its core air and ground delivery network, while CMA CGM continues expanding its logistics and air freight footprint.
Schneider Electric (SBGSY) - Schneider Electric agreed to AI software and industrial data provider Cognite Holding for USD 3.1bln in cash; Cognite will be integrated into Schneider’s industrial software business, AVEVA; completion is expected in coming quarters.
KNDS - KNDS is struggling to convince investors to back its planned IPO at a valuation above EUR 12bln, with some telling the Franco-German tankmaker in preliminary talks that it is worth less, FT reports. The German family shareholder, which holds 50% alongside the French government, will not proceed below EUR 12.5bln, while valuations of EUR 18-20bln had been discussed earlier this year. A final decision is likely next week, with postponement possible if demand is insufficient.
Firefly Aerospace (FLY), Intuitive Machines (LUNR) - NASA awarded a combined USD 590mln in contracts to Astrobotic, Firefly Aerospace, and Intuitive Machines for additional uncrewed lunar lander missions under the Artemis program, targeting late 2028 launches. Firefly received USD 144.2mln for one lander mission, while Intuitive Machines was awarded USD 148.3mln for one lander mission, as NASA accelerates commercial lunar activity.

ENERGY

Crude Surplus - Goldman Sachs said the global oil market is set to return to oversupply as Iran war effects fade and Strait of Hormuz traffic recovers; its analysts see the surplus averaging just over 3mln BPD next year, partly offset by over 1mln BPD of strategic reserve rebuilding.
Energy Inventories - Afterhours on Tuesday, API data reportedly showed headline crude stocks posting a larger than expected draw of -6.1mln bbls (exp. -4.1mln), Cushing stocks building by +0.5mln bbls; in the products, distillates posted a surprise build of +2.9mln bbls (exp. -0.9mln), while gasoline inventories saw a larger than expected draw of -2.1mln bbls (exp. -0.9mln).
Cameco (CCJ) - Said its Cigar Lake uranium mine in Saskatchewan has temporarily suspended operations due to a shutdown of Orano’s McClean Lake mill, where ore is processed. The disruption stems from issues with the mill’s sulfuric acid plant, which is undergoing repairs, with operations expected to resume in about two weeks. Cameco said it does not currently expect any impact on its 2026 production outlook, though it warned that extended delays could affect output if the issue persists.
Shell (SHEL), Talos Energy (TALO) - Shell agreed to sell its interests in the Na Kika platform, associated Gulf of America fields and the Coulomb tieback to subsidiaries of Talos Energy and Ridgewood Energy for USD 1.7bln. The assets produced about 37K barrels of oil equivalent per day net to Shell in 2025. Closing is expected by end-2026.

MATERIALS

FMC (FMC) - Announced that Tessenderlo Group will make a USD 400mln strategic minority investment in FMC at USD 13.30/shr, resulting in an ownership stake of approximately 20%. FMC plans to use the proceeds to reduce debt, helping achieve its approximately USD 1bln debt paydown target. The transaction is subject to customary closing conditions, including regulatory approvals.
Alcoa (AA), South32 (SOUHY) - Alcoa will acquire South32’s bauxite, alumina and aluminium assets for upfront consideration of about USD 4.1bln, comprising USD 3.1bln cash and around 17mln new Alcoa shares. The deal implies an enterprise value of about USD 4.7bln, and includes a CVR of up to USD 750mln. The deal is expected to close in H1 2027.
Teck Resources (TECK), Anglo American (NGLOY) - Teck Resources mailed a letter of transmittal and election form to registered holders of its Class A and Class B shares regarding its merger of equals with Anglo American. Each Teck share will be exchanged for 1.3301 Anglo American ordinary shares, or exchangeable shares for eligible Canadian shareholders who elect that option.

HEALTHCARE

Align Technology (ALGN) - Said the European Commission’s investigation is purely procedural and based on a competitor complaint. The company disputed suggestions of unfair practices, said iTero scans can be exported for aligners other than Invisalign, and said it will cooperate fully while maintaining that its scanner and scan acceptance policies comply with competition laws.