Daily US Equity Opening News - SPCX to join NDX on 7/Jul; SPCX/CHTR in mobile partnership talks; APPL seeks clearance for CXMT memory chips; GOOG caps META Gemini use; WMB nears USD 5.5bln Momentum Midstream deal; ABT probe closed

DAY AHEAD:

• US INDEX FUTURES: ES +0.6%, NQ +0.9%, YM +0.3%, RUT +0.2%
• BROKER MOVES: FCEL upgraded at B. Riley; ADBE & CRM downgraded at Phillip Securities. For the full list, click here.
• MAJOR MORNING MOVES RECAP: CMCSA, RKLB, IRDM, CHTR, SPCX, PLTR, MLM, AXON, DOCS. For the full list, click here.
• DATA: In North America, US Dallas Fed manufacturing index for June will be released (prev. 0.4).
• CENTRAL BANKS: ECB’s Lagarde (neutral) delivers introductory remarks (text expected).
• WEEK AHEAD: This week’s data highlights include: US NFP, US ISM Mfg PMI, EZ Flash CPI, Swiss CPI. Notable US corporate earnings due this week include: NIKE (NKE), Constellation Brands (STZ), General Mills (GIS), FactSet (FDS).
• Click here for Newsquawk’s week ahead preview.
• Click here for Newsquawk’s Weekly US Earnings Estimates.

NEWS

INDEX

• Nasdaq 100 (NDX) - Nasdaq said SpaceX (SPCX) will join the Nasdaq 100 Index before market open on 7th July.

TECH

• China Tech Energy Demand - China National Energy Administration official Ren Yuzhi said the nation faces greater uncertainty in forecasting energy demand as AI, electric vehicles and other emerging sectors reshape consumption. The NEA expects power demand to rise by about 600bln kilowatt-hours annually over the next five years (vs 570bln kilowatt-hours over the past five years).
• South Korea Tech - South Korea unveiled plans to boost technology investment, with Samsung Group (SSNLF) and SK Group (HXSCL) planning four chipmaking plants worth KRW 800tln, the industry minister confirmed. The country aims to double DRAM production capacity within five years. Recent reports have suggested that Samsung and SK Hynix will unveil up to KRW 2,000tln in investments over 10 years.
• Apple (APPL) - Apple is lobbying the Trump administration for clearance to buy memory chips from blacklisted Chinese company CXMT, according to the FT. CXMT and YMTC are on the Pentagon’s Chinese Military Company blacklist, though Apple is not legally barred from purchases. Apple last week cited unsustainable memory prices after raising MacBook and iPad prices. Meanwhile, Apple has reportedly asked the Indian antitrust watchdog to drop all findings against the company, accusing Indian antitrust investigators of "copy-pasting" its rivals' claims and failing to properly conduct its own investigation in concluding Apple breached competition laws.
• Anthropic - The US government lifted its block on Anthropic’s Claude Mythos 5 AI model, allowing release to more than 100 US institutions, including major companies and government agencies, Semafor reports. Commerce Secretary Lutnick said safeguards were in place, while Fable 5 remained blocked, though people close to talks said its release was being discussed.
• Palantir (PLTR), Nvidia (NVDA) - Palantir announced a strategic initiative to deliver an AI platform for sovereign environments, focused on US government agencies and critical infrastructure. The collaboration combines Nvidia's AI platform and Nemotron open models with Palantir's software to support the training and deployment of AI models while allowing customers to retain control over their data and AI systems.
• OpenAI - OpenAI appointed former Uber India and South Asia president Prabhjeet Singh as managing director for India. Singh will join in September and report to Asia Pacific managing director Kiran Mani. He will oversee consumer growth, enterprise adoption, partnerships, regulatory engagement and operations in India, OpenAI’s second-largest market with more than 100mln weekly ChatGPT users.
• Adobe (ADBE), Salesforce (CRM) - Phillip Securities writes that that while legacy software-as-a-service "remains resilient due to its mission-critical nature and reliability," company growth has slowed despite a few year head start in AI. Although AI adoption is accelerating, its revenue contribution is likely to remain immaterial to overall revenue for several years, unlike peers that are already seeing meaningful AI-driven monetisation, the firm added. The firm sees limited prospects for a near-term valuation recovery in the application software space, and therefore has downgraded Adobe to 'Neutral' from 'Buy' with a USD 203 PT (prev. 385) and Salesforce (CRM) to 'Neutral' from 'Buy' with a USD 166 (prev. 270).

COMMUNICATIONS

• Comcast (CMCSA) - Announced plans to separate into two independent, publicly traded companies through a tax-free spinoff of its NBCUniversal and Sky assets. The separation will create independent Comcast and NBCUniversal businesses, with NBCUniversal focused on media and entertainment and Comcast focused on broadband, mobile and entertainment platforms.
• Alphabet (GOOG), Meta Platforms (META) - Google has capped Meta’s use of Gemini AI models after Meta sought more computing capacity than Google could provide, according to sources cited by the FT. The limits, in place since around March, have delayed some Meta AI projects and prompted token-efficiency efforts, the report adds.
• Alphabet (GOOG), Meta Platforms (META), Snap Inc. (SNAP) - Australia will double the maximum penalty for tech firms that fail to uphold its under-16 social media ban to AUD 99mln (from AUD 49.5mln), Reuters reports. The government will also strengthen the eSafety Commissioner’s information-gathering powers, while Meta’s Instagram and Facebook, Google’s YouTube, Snap’s Snapchat and TikTok face possible non-compliance investigations.
• Verizon (VZ), BT Group (BTGOF) - BT Group agreed to form a 50/50 JV with Verizon, combining their international operations into a new company focused on multinational connectivity, serving more than 3,000 customers across over 180 countries with combined annual revenue of about USD 4bln. Following the announcement, BT cut its FY27 guidance; sees adj. revenue of GBP 17.1-17.6bln (prev. saw 19-19.5bln), and adj. EBITDA of GBP 8.1-8.2bln (prev. saw 8.2-8.3bln).
• GameStop (GME), eBay (EBAY) - GameStop expects FY26 adj. EBITDA above USD 600mln for the fiscal year ending 30th January 2027 (vs USD 345.4mln in FY25). GameStop said leadership remains focused on advancing its proposed acquisition of eBay (EBAY), with additional transaction materials forthcoming.
• Tencent (TCEHY) - ChangXin Memory Technologies has signed a long-term deal to supply Tencent with more than CNY 20bln of server DRAM chips, Reuters reports. The agreement comes as CXMT prepares an IPO expected to raise CNY 29.5bln on Shanghai's Star Market, and as Chinese tech giants including Alibaba and ByteDance shift toward local suppliers amid an AI-driven memory shortage.
• Tencent (TCEHY) - Tencent is testing TenPayGo, an app for overseas visitors in China, Jiemian News reports. The platform includes mobile payments through Weixin Pay and supports travel, dining and shopping. It is in limited internal testing and not fully rolled out. Comes as foreign visits to China rose in 2025 amid expanded visa-free arrangements and travel facilitation.

CONSUMER DISCRETIONARY

• Amazon (AMZN) - Online spending across US retailers hit USD 26.4bln during Amazon’s four-day Prime Day sale, narrowly beating Adobe’s earlier estimate of USD 26.3bln, and +9.3% vs last year. Discounts were similar to last year, with electronics and apparel averaging about 24%. Numerator said average household spending fell 8.3% to USD 143, while Amazon called external data sources “often inaccurate,” according to Bloomberg.
• International Paper (IP) - International Paper plans to cease preprint operations at its Richwood, KY facility and close its Aurora, IL sheet plant and converting plants in Elk Grove, CA and Barrington, NJ by the end of Q3 2026. The company said impacted employees will receive outplacement assistance, severance and benefits, with affected customers transitioned to other regional facilities.
• Tesla (TSLA) - The NHTSA closed its investigation into power steering loss in certain 2023 Model 3 and Model Y vehicles following Tesla's 2025 recall of approximately 376,000 vehicles to address the issue.
• Toyota (TM) - Toyota’s global sales fell 7.4% in May to 885,207 units, while production declined 5.8% to 857,765 units. Sales dropped 38.6% in the Middle East and 31.7% in China. Toyota has forecast FY operating income of JPY 3tln, below JPY 3.8tln in the prior year.
• Volkswagen (VWAGY) - Volkswagen plans to end its automated driving partnership with Bosch, Bild reports. The tie-up with Volkswagen’s Cariad unit began in 2022 to develop driver assistance and autonomous driving software. Bild said the project had not met expectations after around EUR 1.5bln was invested, while Volkswagen plans to choose a replacement partner by September.
• General Motors (GM) - GM-backed Momenta Global began taking investor orders for a Hong Kong IPO to raise HKD 5.9bln (around USD 752mln). The Suzhou-based autonomous-driving company, backed by GM and Tencent Holdings (TCEHY), is offering about 19.9mln shares at HKD 295.60/shr, implying a valuation of nearly USD 9bln.

FINANCIALS

• Bank of America (BAC) - BofA hired Srijith Nair from Goldman Sachs to lead its financial institutions group coverage in Asia excluding China and Japan, Reuters, citing two sources. Nair will also head coverage of insurance clients across the Asia Pacific region and will be based in Singapore. He is expected to start at the end of September and will report to Michael Evans, who runs FIG in Asia Pacific.
• Citigroup (C), HSBC (HSBC), Standard Chartered (SCBFY) - Citigroup, Standard Chartered and HSBC remitted IDR 11.5tln (around USD 640mln) from Indonesia over two years, Bloomberg reports. The transfers slightly exceeded combined profits for the period, as some banks curbed exposure amid concerns over President Prabowo’s state-focused economic policies, market turmoil, rupiah weakness and possible policy-directed lending.
• First BanCorp (FBP) - First BanCorp said it categorically denies claims in a lawsuit filed in the Southern District of New York relating to banking services provided to Jeffrey Epstein after a US Virgin Islands bank acquisition. The company said it will vigorously defend itself, maintain compliance and anti-money laundering programmes, and respond through legal channels.
• Ares Management (ARES) - Ares is seeking investors for its latest Asia private credit fund, Asia Direct Lending II, according to Bloomberg. The fund is targeting leveraged buyout financing deals across Asia Pacific and could exceed the USD 1.7bln raised for Ares’ first Asia private credit fund, though details may change.

INDUSTRIALS

• SpaceX (SPCX) - Nasdaq said SpaceX will join the Nasdaq 100 Index (NDX) before market open on 7th July.
• SpaceX (SPCX), Charter Communications (CHTR) - SpaceX and Charter have held executive-level talks about a consumer mobile phone partnership, according to Bloomberg. Charter could route some SpaceX phone traffic through its ground-based internet infrastructure. A deal would support SpaceX’s push to offer mobile service directly to consumers.
• Axon Enterprise (AXON) - US President Trump reportedly bought as much as USD 5mln in Axon stock, before ICE sought a USD 220mln deal with the company, CNBC reports citing sources.
• Verizon (VZ) - Expects to record a loss of c. USD 700-800mln in Q2.
• China Aviation Stocks - A small plane crashed into Beijing’s CITIC Tower on Friday, killing the solo pilot and injuring 13 others, local authorities said; Bloomberg reports that the crash exposes a vulnerability in the capital’s controlled airspace near top leadership sites. Overnight, the news triggered a selloff in China’s low-altitude aviation sector, with Nanjing Les Information Technology, Zhejiang Wanfeng Auto Wheel and CITIC Offshore Helicopter shares falling. Reports also noted swift online censorship of the incident.
• FuelCell (FCEL) - Upgraded at B. Riley to 'Buy' from 'Neutral' with a USD 32 PT (prev. 13) following the company's power deployment agreement of 380MW for data centres. The firm order with Fit Energy provides increased confidence in FuelCell's ability to convert significant data centre players into customers, the analyst tells investors.
• Rocket Lab (RKLB) - Announced a definitive agreement under which Rocket Lab will acquire Iridium (IRDM) for USD 54/shr in a cash-and-stock transaction valuing Iridium at an approximately USD 8bln enterprise value. The acquisition significantly expands Rocket Lab's capabilities by adding Iridium's global satellite communications network and recurring service revenue, with the deal expected to close in mid-2027, subject to shareholder and regulatory approvals.

ENERGY

• Russia LNG - Russia is expanding efforts to export sanctioned LNG using a dark fleet, Bloomberg reports. The 19-year-old Arctic Express loaded fuel at the US-sanctioned Saam floating storage unit, which holds gas from Arctic LNG 2. At least 21 ships have been used to carry LNG from sanctioned Russian projects, according to Bloomberg’s tracking-data analysis. Separately, President Putin acknowledged that fuel supply problems persist for motorists and businesses, including queues at petrol stations, as Moscow weighs measures to stabilise the domestic market after refinery outages.
• Williams Companies (WMB) - Williams Companies is in advanced talks to acquire rival natural gas pipeline operator Momentum Midstream for about USD 5.5bln, in one of its largest deals ever, according to source cited by Bloomberg. An agreement with seller EnCap Flatrock Midstream could be announced within about a week, though no final decision has been made. The deal would give Williams additional capacity to move gas from the Haynesville fields to Gulf Coast export terminals.
• Saudi Aramco - A helicopter operated by Saudi Aramco crashed Sunday in Ras Tanura, killing all 14 passengers, all Saudi nationals, the Saudi Press Agency said. The cause is under investigation. Aramco had only just resumed loading crude at Ras Tanura terminals for shipment through the Strait of Hormuz, days after the war with Iran prompted a halt. It wasn’t immediately clear if the crash affected energy facilities.

HEALTHCARE

• Abbott Laboratories (ABT) - The DoJ closed a years-long probe into Abbott over its handling of a baby formula facility where potentially deadly bacteria was found and suspected in infant deaths, according to the WSJ citing sources. Some prosecutors and supervisors believed criminal charges were supported, but decision makers pursued clawbacks from federally funded nutrition programme formula sales instead.
• AbbVie (ABBV) - FDA approved Skyrizi for children aged six+ with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy, or active psoriatic arthritis. The approval includes a new 55mg pre-filled syringe for patients under 40kg, while 150mg syringe and pen options apply for patients weighing 40kg or more.
• AstraZeneca (AZN) - AstraZeneca said the MULBERRY Phase III trial showed efzimfotase alfa delivered statistically significant and clinically meaningful bone-health improvement in children with hypophosphatasia not previously treated with Strensiq. At week 25, the median RGI-C Score was 1.67 versus 0 for placebo, with statistically significant Rickets Severity Score improvement and gains in physical function and quality of life.
• Doximity (DOCS) - Downgraded at BofA to 'Underperform' from 'Buy' with a USD 20 PT (prev. 38), citing limited clarity on the near-term trajectory of revenue and margins along with execution risks related to the pivot to AI. Doximity is "making the right strategic investments" to compete against emerging AI models such as OpenEvidence and OpenAI, but given the deep pockets of these peers and the fact that the top 20 pharma already spend significantly with Doximity, the firm has concerns around the company's ability to grow its current allocations as well as successfully compete for AI dollars.
• Pfizer (PFE) - Ecnoglutide, Pfizer's GLP-1 drug, passed a preliminary review for potential inclusion in China's national medical insurance drug catalogue.
• Sandoz (SDZNY) - The FDA accepted for review two NDAs for generic versions of tirzepatide, the key ingredient in both Zepbound and Moungaro.
• Ipsen (IPSEY) - Ipsen agreed to buy Kartos Therapeutics for up to USD 1.75bln, paying USD 450mln upfront with up to USD 1.3bln in additional payments subject to regulatory and sales targets. The deal adds navtemadlin, a late-stage myelofibrosis drug candidate, to Ipsen’s oncology pipeline, with CEO David Loew citing potential approval as early as 2028. The acquisition is expected to boost core operating profit from 2029 and close by Q3-end.
• Zymeworks (ZYME), Theravance Biopharma (TBPH) - Zymeworks greed to acquire Theravance Biopharma for USD 17.00/shr in cash, valuing the transaction at ~USD 929mln. The acquisition adds YUPELRI and related royalty streams to Zymeworks' portfolio. The deal has been unanimously approved by both companies' boards and is expected to close in the second half of 2026, subject to shareholder and regulatory approvals.
• Viridian Therapeutics (VRDN) - Announced that the US FDA has approved Lumvoa for the treatment of thyroid eye disease. TED is a rare, debilitating autoimmune disease characterised by inflammation and tissue remodelling around and behind the eyes that can lead to proptosis, diplopia, pain, and vision impairment.

CONSUMER STAPLES

• Kroger (KR) - Ronald L. Sargent will step down as an employee of Kroger on 1st July, according to a filing. He has chaired Kroger’s board since March 2025 and will remain chairman in a non-executive capacity.
• British American Tobacco (BTI) - is reducing its 47,000-strong global workforce by about one-fifth, slashing 5,500 jobs and outsourcing a further 3,500 by year-end, excluding its US business, according to an internal notice seen by Bloomberg. The cuts support BAT’s pledge to deliver GBP 600mln in annual cost savings by the end of 2028, with most outsourcing going to Accenture. CEO Tadeu Marroco said the company aims to support affected colleagues “with care and respect.”

MATERIALS

• Martin Marietta Materials (MLM) - Agreed to combine with Lhoist North America in a USD 13.5bln cash-and-stock transaction. The deal expands Martin Marietta's exposure to lime and industrial minerals, serving end markets including steel, infrastructure, nonresidential construction, environmental, and agricultural applications. The transaction is expected to close in the second half of 2026, subject to regulatory approvals.

GEOPOLITICS:

• US-Iran - The US and Iran agreed to stop attacking each other and plan to meet on Tuesday in Qatar to address their Strait of Hormuz dispute, according to a senior US official cited by Axios. Officials said both sides would stand down “for now” and vessels could move freely, with technical talks continuing.

TRADE

• US-Europe - President Trump said numerous European countries were discussing imminent digital services taxes on US companies, and he threatened 100% tariffs on any country imposing such a tax.
• EU-China - China can endure further deterioration or even a freeze in trade ties with the EU if talks are treated as a mere formality, according to Yuyuantantian, a social-media account affiliated with CCTV. It accused the bloc of being a “rule-breaker” with weakening “normative power.” EU Trade Commissioner Sefcovic is set to meet Chinese Commerce Minister Wang Wentao in Brussels this week, as the EU presses Beijing over a trade imbalance that reached about EUR 360bln in 2025.
• China-Japan - China MOFCOM added 20 Japanese entities, including units of Mitsubishi Heavy Industries and Nikko Tokki, to an export control list banning Chinese firms from selling dual-use products to them, saying the measures aim to prevent Chinese goods enhancing Japan’s military strength. A unit of Komatsu and Japan’s National Institute for Defense Studies were also included. A separate watchlist added 20 more Japanese firms in sectors including drones and nuclear fuel, subject to greater scrutiny but no outright ban. The update comes amid a dispute over PM Takaichi’s Taiwan comments.
• Screwworm, US-Mexico - US Agriculture Secretary Rollins said the US and Mexico opened a sterile fly production facility in Metapa, Mexico, which is expected to produce up to 100mln sterile flies a week to combat New World screwworm. US Ambassador Johnson pledged an additional USD 84mln, warning that an outbreak could cost US agriculture over USD 700mln annually. The USDA has contributed USD 21.9mln to renovate the plant, which aims to reach full capacity by November.

MACRO

• Quarter end - Quarter End Rebalancing: Goldman Sachs sees USD 30bln of US equities for sale from pension funds. Ranks in 89th percentile in absolute dollar value over the past 3 years and 95th percentile going back to January 2000.
• Fedspeak - Fed’s Barkin (2027 voter) said inflation remains too high, though some price pressures may moderate. He cited the PCE index rising 4.1% Y/Y, the most since April 2023, and said it was hard to be confident that inflation would return to 2% without further influence from rates, labour markets or other disinflationary forces.
• US Treasuries - Major bond managers are favouring five-year Treasuries as a sweet spot in the Kevin Warsh Fed era, citing stabilising yields and reduced aggressive rate-hike bets, according to a Bloomberg report. These bond managers have reportedly said the maturity balances near-term policy risk against the possibility of future easing.
• EM Bonds - A hawkish Fed has curtailed an EM bond rally, sparked by lower oil prices from Iran peace talks. Citigroup and Goldman Sachs said the main risk has shifted from oil to US rates, while Fidelity said higher US rate expectations and USD strength are headwinds for USD-funded EM local-currency positions.
• PBoC - The PBoC conducted CNY 300bln of overnight reverse repos at 1.25% (exp. 1.35%), according to Bloomberg citing sources. The central bank also provided CNY 157.5bln of seven-day reverse repos at its 1.4% benchmark rate. The article says the debut of the overnight operation surprises with no rate released.
• BoJ - Japan’s government is expected to call for “appropriate” monetary management in July policy guidelines, according to a draft seen by Bloomberg. The wording is seen as an effort to discourage further BoJ rate hikes after it raised its benchmark rate in mid-June to the highest since 1995 and signalled more increases.
• RBA - RBA Assistant Chris Kent said the central bank will be better prepared for the next crisis after reviewing alternative monetary policy tools. He said the cash rate remains the RBA’s primary instrument, while additional tools can support extraordinary conditions but are more complex and riskier.
• EUR - Bloomberg reports that some Wall Street banks have cut EUR price forecasts as markets price stronger US rate hike prospects than Europe’s. Morgan Stanley said EUR/USD could reach 1.10, while JPMorgan also cut its mid-2027 target to 1.10.
• UK Politics - Andy Burnham will pledge major devolution of power in England in his first major speech since confirming his aim to succeed Keir Starmer as Prime Minister. He plans more local decision-making, a “No. 10 North”, procurement reform to support British jobs and industry, and measures on apprenticeships, technical education and youth unemployment.