Daily US Equity Opening News - US targets military sites on Kharg Island; AVGO to make future GOOG AI chips

TODAY’S AGENDA:

US INDEX FUTURES: ES -0.4%, NQ -0.6%, YM -0.3%, RUT -0.6%
DAY AHEAD: US Vice President JD Vance is meeting Hungarian PM Orban in Budapest during his April 7-8 visit, which includes bilateral talks and public remarks. The Pentagon has cancelled Tuesday’s briefing with War Secretary Hegseth and General Caine, without giving a reason, ahead of Trump’s deadline for Iran to reopen the Strait of Hormuz. Stateside, RCM/TIPP economic optimism is due (exp. at 48.1 from 47.5). Atlanta Fed will update its Q1 GDP tracking estimate (which is currently modelling growth of 1.6%). Ahead of this week’s inflation data, the NY Fed will release its survey of consumer expectations (in February, 1yr median inflation expectations declined 0.1ppts to 3.0%; 3yr and 5yr expectations were also at 3.0%). In later trade, US consumer credit stats for February are due. In energy, afterhours, the API will release its gauge of weekly inventories; the EIA will in hours release its monthly short-term energy outlook report. On today’s speakers’ slate, Fed's Williams (voter) will speak on Bloomberg TV; Fed’s Goolsbee (2027 voter, dovish) will speak on the outlook for policy and the economy; Fed’s Vice Chair Jefferson (voter, dovish) will speak on the economic outlook and the labour market. In supply, the US Treasury will auction USD 58bln of 3yr notes. Notable corporate reports due today include: LEVI.
BROKER MOVES: MS upgraded at UBS; ARM downgraded at UBS. For the full list, click here.
MAJOR MORNING MOVES RECAP: Mag-7, HUM/CVS/UNH/ELV, AVGO, ANET, CASY, ARM. For the full list, click here.
US DAILY CONFERENCE CALENDAR: WMT. For the full list, click here.

GEOPOLITICS

US - President Trump on Monday said Iran must reopen the Strait of Hormuz by 20:00EDT on Tuesday (01:00BST on Wednesday) and agree to terms he finds acceptable, including free traffic of oil, or face overwhelming military action, including against infrastructure. He also hailed the rescue of two US airmen in Iran as historic, saying the US leaves no one behind. Trump criticised Nato allies, especially the UK, for refusing to join his mission. Trump said Tehran’s counterproposal was a significant step but not acceptable, and US officials said military preparations for possible strikes on energy targets are underway. Meanwhile, Iran rejected a 45-day ceasefire proposal tied to reopening the Strait of Hormuz.
Trump - Issued a fresh threat ahead of tonight's deadline: A whole civilization will die tonight, never to be brought back again; does not want that to happen, but it probably will.
Kharg - Strikes carried out today on Kharg Island were carried out solely by the US, not Israel, according to Fox News. “This is a message to the Iranians,” a senior US official told me. "If Iranian railways are being hit it is not US military hitting them, according to US military source."
Negotiations - WSJ reports that negotiators are pessimistic Iran will meet President Trump’s demand to reopen the Strait of Hormuz before his Tuesday deadline. Trump has said the US would target Iranian bridges and power plants if Tehran does not comply, marking a potential fresh escalation. The article notes Trump has twice previously set deadlines for a deal with Iran and then followed through with military operations.
Iran Oil - Trump has discussed seizing control of Iran’s oil sector, with one potential aim being to expand US energy dominance and gain trade leverage against China, Bloomberg reports citing sources. Trump raised the prospect repeatedly on Monday, and acknowledged the political risks of deeper US involvement in the Middle East.
Strait of Hormuz Transit - Iran has not allowed any LNG carrier to pass through the Strait of Hormuz in recent weeks, according to traders involved in the transit cited by Bloomberg. Two tankers carrying Qatari LNG appeared to leave the Persian Gulf on Monday, but turned back within hours after Iranian officials denied clearance, the traders said. Separately, one of seven Malaysian-owned commercial vessels stranded in the Straits was granted safe passage, and is heading to its destination, Malaysia’s Foreign Ministry said; the development followed diplomatic engagement, including a 26th March call between PM Ibrahim and Iranian President Pezeshkian, and a 24th March call between Foreign Ministers Hasan and Araghchi.
Strait of Hormuz Security - Bahrain circulated a revised UN Security Council draft on reopening the Strait of Hormuz that removes language on possible use of force, as backers sought to avoid vetoes from Russia or China. The latest version strongly encourages countries to coordinate defensive efforts, commensurate with the circumstances, to ensure the security of navigation through the Strait.
Japan Talks - Japanese PM Takaichi told lawmakers she is seeking phone talks with Iran President Pezeshkian and US President Trump; she said Japan must communicate with both sides.
Greenland - President Trump revived his dispute over Greenland while criticising NATO’s position on the Iran war; at his White House press conference on Monday, Trump said his grievances with the alliance began with Greenland, adding that the US wanted the territory and Denmark would not give it up.

MACRO

Japan - Japan’s auction of 30yr bonds drew muted demand as investors remained cautious over Middle East tensions; bid-to-cover ratio was 3.12x (vs prev. 3.66x, and vs 12-month average of 3.36x), the weakest since June.

INDEX

S&P 500 (SPX) - Casey’s General Stores (CASY) will replace Hologic (HOLX) in the S&P 500, effective before trading on 9th April, following the acquisition of Hologic by affiliates of Blackstone and TPG Global, which is expected around 7th April; DigitalOcean Holdings (DOCN) will replace Casey’s General Stores in the S&P MidCap 400; Broadstone Net Lease (BNL) will replace DigitalOcean Holdings in the S&P SmallCap 600.
Systemic Traders - Goldman Sachs’ trading desk said that systematic investors may turn into net equity buyers after cutting exposure to multi-year lows. Goldman notes that fast-money funds (including CTAs and volatility-targeting strategies), sold about USD 240bln of global stocks in the past month, but could buy about USD 55bln over the next month, including about USD 20bln of US equities.

NEWS:

TECH

Apple (AAPL) - Apple’s first foldable iPhone is facing setbacks in the engineering test phase that could delay mass production and shipments, Nikkei reports. April-May is described as extremely critical for resolving the issues in time, the report adds.
Samsung Electronics (005930 KS) - Announced prelim Q1 operating profit of KRW 57.2tln (exp. 40.6tln), and Q1 revenue of KRW 133tln (exp. 119.2tln). Prelim Q1 operating profit was up more than eightfold Y/Y, while revenue rose 68% Y/Y, driven by strong AI infrastructure demand, tight memory chip supply and higher chip prices. Samsung benefited primarily from commodity DRAM and NAND pricing, with one analyst estimating the chip division generated about KRW 54tln of profit (or roughly 95% of the total), while mobile also remained profitable. Samsung is due to release full Q1 earnings on 30th April.
LG Electronics (066570 KS) - Announced prelim Q1 operating profit of KRW 1.67tln (exp. 1.36tln), and Q1 revenue of KRW 23.37tln (exp. 23.23tln). Q1 profit rebounded Q/Q from its first operating loss in nine years, with the company indicating improving profitability across its home-appliance, television and vehicle-component businesses. WSJ said the preliminary figures point to a solid start to the year and support expectations for a broader earnings recovery in 2026. LG Electronics is due to release full Q1 earnings on 29th April.
Broadcom (AVGO), Alphabet (GOOG) - Broadcom and Google signed long-term deal to develop/supply TPUs and AI networking components through 2031. Also, both companies are expanding with Anthropic, which plans to access ~3.5GW of TPU-based AI compute from 2027, tied to future demand.
ASML (ASML) - Samsung Electronics (005930 KS) denied reports of KRW 10tln EUV equipment purchase from ASML. On Monday, reports suggested that Samsung ordered about 70 lithography tools for P5 Phase 1, including around 20 EUV systems from ASML worth more than KRW 10tln. Meanwhile, US lawmakers proposed a law that would add further Semiconductor export curbs on China. The restrictions would target ASML’s deep ultraviolet lithography machine, which Chinese companies have so far been able to access.
Anthropic - In talks to invest USD 200mln in a new venture with private-equity firms to sell AI tools to portfolio companies, WSJ reports. General Atlantic, Blackstone (BX) and Hellman & Friedman are among the firms discussing investments. The venture is seeking to raise USD 1bln, including Anthropic’s planned contribution.
OpenAI, Anthropic, Alphabet (GOOG) - OpenAI, Anthropic and Google are working together through the Frontier Model Forum to curb Chinese competitors from extracting outputs from advanced US AI models, Bloomberg reports. The companies are sharing information to detect adversarial distillation attempts that breach their terms of service.
Nvidia (NVDA) - Nvidia-backed Firmus Technologies raised USD 505mln in a funding round led by Coatue Management, valuing the Australian data centre builder at USD 5.5bln. Nvidia also participated in the round.
Cisco (CSCO) - Appointed Pete Shimer to its board, effective immediately. Shimer also serves on the boards of Alaska Airlines (ALK), Korn Ferry and Synopsys (SNPS), and is Executive Chair of the Cancer Artificial Intelligence Alliance.
Arm Holdings (ARM) - Downgraded at Morgan Stanley to 'Equal Weight' from 'Overweight' with a USD 150 PT (prev. 135). The firm said the company's transition into chip-making is a "structural evolution" of its business model amid the emergence of agentic AI. While Arm's strategic positioning and early design delivery "have been exemplary," its commercial ramp will take time. Morgan Stanley adds that near-term execution risks "temper enthusiasm." The firm also believes end-market softness and exacerbated DRAM supply constraints could "stymie" Arm's near-term growth.

FINANCIALS

Goldman Sachs BDC (GSBD) - Goldman Sachs BDC director Carlos Evans purchased 50K shares on 2nd April, for a total USD 451K. Separately, Goldman Sachs (GS) said its USD 15.7bln private credit fund largely avoided this year’s wider outflows because it relies on institutional investors rather than wealthy individuals; the bank is now seeking to take advantage of retail investors’ retreat from private credit as rivals pull back.
Blue Owl (OWL) - Blue Owl Capital shares closed at a record low on Monday, extending declines tied to concerns about the USD 1.8tln private credit market. The stock also hit a record intraday low last Thursday after the firm said it would limit redemptions from two private credit funds following increased withdrawal requests.
Morgan Stanley (MS) - Morgan Stanley plans to launch the North Haven Strategic Credit Fund, an interval fund focused mainly on private credit, despite record redemption requests across retail vehicles recently. A 3rd April filing said the fund will span a wide range of credit strategies and expects to allow quarterly redemptions of 5% of outstanding shares.
Options Clearing - Bank of America (BAC), Citadel and Goldman Sachs (GS) backed an Options Clearing Corp. proposal to change how contributions to its clearing fund are calculated; the firms said the plan would reduce abrupt and destabilising reallocations during market stress, while retail brokers warned it could add hundreds of millions in extra costs.
Apollo Global (APO) - Apollo-backed Yahoo has begun talks with lenders to refinance about USD 1.6bln of leveraged loans, Bloomberg reports. RBC is leading investor meetings this week on a possible USD 1.1bln leveraged loan, and USD 500mln of other secured debt.
Morgan Stanley (MS) - Upgraded at UBS to 'Buy' from 'Neutral'. The firm sees a buying opportunity with bank stocks selling off on the Iran conflict, private credit concerns, and AI disruption. Morgan Stanley has "catalysts ahead to reignite" the shares, including its strength in advisory services, the potential for a handful of blockbuster initial public offerings this year, and a wealth franchise that "leads peers."

ENERGY

US Crude - US shale drillers are expected to raise crude output, as a surge in prices amid the Persian Gulf conflict, as higher prices have increased incentives to ramp up production, Bloomberg reports. It is also that North American crude grades are rising as refiners in Asia and Europe compete for a smaller pool of accessible supply after weeks of disrupted shipments through the Strait of Hormuz. That said, while demand for US oil from overseas is approaching record levels, exports are hitting practical limits; traders and analysts cited said infrastructure and supply constraints mean flows are unlikely to reach the often-cited 10mln BPD, with a more realistic ceiling below 6mln BPD.
Phillips 66 (PSX) - Estimates Q1 pre-tax mark-to-market losses of about USD 900mln, due to higher commodity prices on net short derivative positions, with about USD 300mln of additional pre-tax refining impacts. The company noted that it posted about USD 3bln of cash collateral outflows, raised liquidity through credit lines and a USD 2.25bln term loan, and had about USD 6bln of liquidity at the end of March.
BP (BP) - ISS recommended voting against BP’s (BP/ LN) plan to scrap certain legacy climate reporting resolutions, calling the move unprecedented and insufficiently justified despite its shift towards standardised disclosures.
Petrobras (PBR) - Petrobras fired Claudio Schlosser, its head of logistics and commercialisation, after the board approved the move at a Monday meeting, Bloomberg reports. The dismissal comes as Brazil’s state-controlled oil producer faces pressure to contain war-fuelled energy inflation in an election year, and align with government measures, including federal tax cuts and fuel subsidies. Separately, Brazil will expand federal fuel tax cuts and subsidies to limit price rises linked to the Iran war; the government will temporarily eliminate PIS/Cofins taxes on biodiesel and aviation fuel, and subsidise local diesel production and cooking gas imports, its Finance Minister said.
Mach Natural Resources (MNR) - Announced an offering of 9mln common units for holders; share spot secondary priced at USD 13.05, the low end of the USD 13.05-13.45 deal range.

MATERIALS

Copper - Goldman Sachs warns that copper prices face further downside if the Strait of Hormuz remains blocked, as higher energy prices could persist and slow global economic growth. The bank said near-term risks are skewed to the downside if flows through the strait are disrupted for longer than its base case.
China Steelmakers - Bloomberg reports that China’s electric-arc furnace steelmakers raised weekly capacity utilisation to the highest level in more than two years as the greener production method became more competitive; average output at 94 independent EAF mills surveyed by Mysteel exceeded 61% of capacity in the week ended 2nd April, the highest since January 2024, and above the 60% threshold.
China Coal - Chinese coal companies are expanding into chemicals manufacturing as war in the Persian Gulf constrains supplies of liquid fossil fuels used by the industry. China’s large coal reserves reduce reliance on overseas shipments, making coal more valuable as feedstock for industries that would otherwise depend on crude oil, Bloomberg said.
Taiwan Coal - Taiwan will increase coal-fired power generation to strengthen energy security as war in the Middle East disrupts gas supplies; state-owned Taiwan Power will procure coal-fired power from the Mailiao plant from May, after Units 1 and 3 are ramped up.
FMC Corporation (FMC) - Said Isoflex active (bixlozone) received regulatory approval in the EU, advancing its commercialisation plans. The company has submitted product dossiers covering cereals, corn, oilseed rape and potato across more than 55mln planted hectares in the EU, and expects launches beginning in 2027, pending further regulatory decisions.

INDUSTRIALS

US Truck Rates - US trucking rates are adding to inflation pressures as fuel prices surge due to the Iran war. Diesel prices have jumped almost 50% since the US-Israel war began at the end of February, and haulers have lifted weekly per-mile fuel surcharges to the highest level since 2022, according to Truckstop.com data.
Boeing (BA) - US airmen rescued from Iran used a standard-issue Boeing communications device to alert rescuers and signal their location, according to a service official. President Trump described it as a sophisticated beeper-type apparatus carried by the airmen at all times. Meanwhile, Boeing and the Department of Defence agree on a contract for the PAC-3 missile defence system.
Deere (DE) - Deere reached a settlement to resolve multidistrict right-to-repair antitrust litigation in the Northern District of Illinois, ending the case with no finding of wrongdoing. Deere will fund a class settlement fund for distribution to class members and fees, and will continue providing customers and service providers access to repair tools, manuals and diagnostic software.
Northrop Grumman (NOC) - To deliver Hungary’s first geostationary communications satellite, scheduled for delivery in 2030.
Siemens (SIEGY) - Stadler Rail (SRAIL SW) withdrew its appeal against the award of an SBB (SBBB SS) framework contract for up to 200 double-decker trains to Siemens, effective 7th April; Stadler said the procurement files provided by the court were heavily redacted, leaving insufficient grounds to continue, and also criticised SBB’s evaluation; Siemens won the contract in November 2025, with an investment volume of CHF 2bln.
Fluor (FLR) - Signed a contract with X-energy to provide FEL-2 services for a proposed advanced nuclear project at Dow’s UCC Seadrift Operations in south Texas. Fluor will recognise the undisclosed initial contract value in Q1 2026.

HEALTHCARE

Medicare - Shares of UnitedHealth (UNH), Humana (HUM) and CVS (CVS) rose in extended trading after news that the US will raise average Medicare Advantage payments to private insurers by 2.48% in 2027, with a 2.5% risk-assessment adjustment taking the total increase to about 5%, Reuters reports. CMS released its 2027 Medicare Advantage and Part D rate announcement. The policies are projected to result in over USD 13bln in additional Medicare Advantage payments in 2027. "This expected increase includes consideration of the various elements that impact MA payments, such as growth rates of underlying costs, 2026 Star Ratings for 2027 quality bonus payments, and risk adjustment updates."
AC Immune (ACIU) - Amended its Tau Morphomer collaboration with Eli Lilly to include new candidates, with IND-enabling studies starting H1 2026. Receives CHF 10mln upfront + Phase 1 milestone, with potential >CHF 1.7bln in milestones plus royalties.
AbbVie (ABBV), Roche (RHHBY), Amgen (AMGN) - AbbVie and Roche’s Genentech will join TrumpRx on Monday as the 10th and 11th participating drugmakers, CBS News reports. AbbVie will offer Humira at an 86% discount, with coupons lowering the uninsured price to USD 950 (from more than USD 6,900), while Genentech will offer Xofluza at about USD 50 (vs USD 168). Amgen is also adding Enbrel and Otezla.
Sanofi (SNY) - Said lunsekimig met primary and key secondary endpoints in Phase II asthma and CRSwNP studies, with AIRCULES Phase IIb showing significant exacerbation reduction and improved lung function.
Gilead (GILD) - To acquire Tubulis for USD 3.15bln in cash, and up to USD 1.85bln contigent, Bloomberg reports.

CONSUMER DISCRETIONARY

Amazon (AMZN) - Amazon reached a new delivery deal with USPS that keeps about 80% of its existing package volume, Reuters reports. That is a smaller reduction than the two-thirds or more previously threatened.
Ford (F) - To recall 422.61k US vehicles amid windscreen wiper failure, according to the NHTSA.
H&M (HNNMY) - Cautious mention in Bloomberg, which says that H&M is struggling to sell its rebound story; it writes that CEO Daniel Erver is trying to revive the apparel group amid investor credibility concerns, but eight years after a capital markets day where then-CEO Karl-Johan Persson sought to reassure shareholders following a record quarterly sales drop, H&M reported roughly USD 4bln in unsold garments, and a 62% drop in operating profit.
Prediction Markets - Kalshi won a federal appeals court ruling in its fight with New Jersey, with a 2-1 majority upholding a prelim injunction, and saying the CFTC regulates the platform. The decision is a significant win for Kalshi in the dispute over whether prediction markets should be overseen by the CFTC or state regulators, Bloomberg said.
Wingstop (WING) - Upgraded at Citi to 'Buy' from 'Neutral' with a USD 230 PT (prev. 286). The firm said that Citi does not see an "immediate solution" for a same-store-sales rebound at Wingstop. However, easing compares, and the company's "self-help" actions could bring a rebound in the second half of 2026. The firm views current share levels as an attractive entry point.

CONSUMER STAPLES

Estee Lauder (EL), Puig Brands (PUGBY) - Representatives of the Puig family have travelled to the US to negotiate with the Lauder family on a potential integration of Puig and Estee Lauder, Expansion reports. Talks centre on a likely Estee Lauder takeover offer using cash and shares, with governance, shareholder agreements and the exchange ratio under review while both families retain strong voting control.
Sysco (SYY) - CEO told CNBC’s Mad Money that 90% of the it’s fuel costs are hedged; he said Restaurant Depot is the ‘Costco for restaurants’, and that Sysco will not raise prices at Restaurant Depot.

COMMUNICATIONS

Universal Music Group (UNVGY), Pershing Square (PSHZF) - Bill Ackman’s Pershing Square submitted a non-binding proposal to acquire all outstanding Universal Music Group shares through a business combination; UMG shareholders would receive EUR 9.4bln in cash, or EUR 5.05/shr, plus 0.77 New UMG shares per UMG share; Pershing said the package is worth a total EUR 30.40/shr, a 78% premium, and would cancel 17% of shares outstanding.