Newsquawk Daily US Equity Opening News - LULU cuts guidance; TSLA upgraded at JPM

DAY AHEAD:

• BROKER MOVES: TSLA upgraded at JPM; WMT downgraded at Erste. For the full list, click here.
• MAJOR MORNING MOVES RECAP: Mag-7, AVGO, LULU, GIII, COO, U. For the full list, click here.
• DAILY US CONFERENCE CALENDAR: CTSH. For the full report, please click here.
• CENTRAL BANKS: BoE’s Bailey and BoE’s Dhingra will make remarks today. The Fed will go onto its pre-meeting blackout after today, ahead of its June 16-17th confab.
• CRA: Potential reviews from Fitch Ratings on Hungary (BBB), and Morningstar DBRS on Hungary (BBB).
• ENERGY: Baker Hughes weekly rig counts due (prev. oil 429, total 562).

US EQUITY NEWS:

TECH:

• AI Companies - Senior US officials have held preliminary talks with major AI companies about the federal government acquiring shares, according to three people cited by NOTUS. OpenAI’s Sam Altman has discussed the idea with Trump officials, as OpenAI and Anthropic prepare IPOs, though Anthropic is not in such talks. Potential proceeds could fund public benefits, but legal and governance hurdles remain.
• Anthropic - Said AI is increasingly accelerating AI development, with its engineers shipping 8x as much code per quarter as in 2021-2025. It warned recursive self-improvement could arrive before institutions are prepared, raising control risks, and said a verifiable global mechanism should allow frontier developers to slow or temporarily pause if peers also do.
• Hon Hai Precision Industry (HNHPF) - Reported revenue of TWD 1.69tln in April–May, representing 34% Y/Y growth; the reading exceeds the analyst consensus of 32% for the June quarter, according to Bloomberg. Monthly revenue rose +40% in May. AI server assembly for Nvidia (NVDA) accelerators has overtaken smartphones as Hon Hai's largest revenue contributor, with Alphabet (GOOG), Amazon (AMZN), Meta (META), and Microsoft (MSFT) collectively earmarking USD 725bln in AI spending this year, Bloomberg says.
• Nvidia (NVDA) - Trump officials are debating whether May 2025 US export-control decisions created loopholes allowing Chinese firms such as Alibaba (BABA) to buy Nvidia (NVDA) Blackwell AI servers abroad, Bloomberg reports. BIS said Chinese-company restrictions remain in effect and may issue foundry guidance covering TSMC (TSM) and Samsung (SSNLF) production for firms such as Tencent (TCEHY).
• Nvidia (NVDA) - CEO Huang said Samsung Electronics (SSNLF), SK Hynix (HXSCL) and Micron Technology (MU) have been qualified to supply HBM4 for Nvidia’s next-generation Vera Rubin AI platform. Vera Rubin is now in full production, with deliveries set for Q3. Huang said all three vendors are in production and racing to support the platform.
• Nvidia (NVDA) - Senator Warren invited Nvidia CEO Jensen Huang to testify before the Senate Banking Committee on 11th June about Nvidia’s China sales and US export controls, CNBC reports. Warren has raised concerns that advanced AI chips sold to China could support military uses; Nvidia has argued broad restrictions could harm US competitiveness.
• Samsung (SSNLF), SK Hynix (HXSCL) - South Korea’s labour minister Kim Young-hoon urged major tech firms including Samsung Electronics and SK Hynix to share excess AI-driven profits with suppliers, subcontractors and workers, Reuters reports. He proposed public dialogue on distribution and supplier price adjustments, rejecting claims of state intervention.
• SoftBank (SFTBY) - Set terms for a JPY 260bln subordinated bond, mainly for individual investors, with a 5.12% coupon for the first five years, its highest yen-debt coupon. The 35yr bond is callable after five years. Bloomberg notes that concerns persist over SoftBank’s more than USD 60bln OpenAI commitments and AI exposure.
• Broadcom (AVGO) - CEO Tan said Co. is less focused on acquisitions because AI offers stronger organic growth and deals distract the company and customers. He said AI infrastructure demand is almost insatiable and expects Broadcom’s AI business to generate more than USD 100bln in FY 2027, despite shares falling after its forecast disappointed Wall Street.
• Nippon Electric Glass (NPPEY), Apple (AAPL) - Nippon Electric Glass has developed ultra-thin flexible glass for foldable smartphones, about 0.03mm thick and roughly one-tenth of conventional smartphone glass, Nikkei reports. Its cover glass is used in Motorola Mobility’s Razr 60, and the company said it would welcome an opportunity to supply Apple, which is speculated to launch a foldable smartphone.
• DocuSign (DOCU) Q1 2027 (USD): Adj. EPS 1.09 (exp. 0.99), Revenue 830.2mln (exp. 825mln). Adj. gross margin 81.5% (vs 82.3% Y/Y). Commentary: CEO said demand continued to grow for Docusign’s AI-native IAM platform, with 40,000 customers investing in its expanding roadmap, alongside durable revenue growth, substantial free cash flow and record share buybacks. Named Graham Sheldon, previously Chief Product Officer at UiPath and a former Microsoft Teams product executive, as incoming Chief Product Officer. Guidance: Q2 revenue 865-869mln (exp. 866.05mln), Adj. gross margin 81.5-81.7%. Raised FY27; revenue 3.49-3.502bln (exp. 3.49bln; prev. 3.484-3.496bln), ARR growth 8.25-8.75%, Adj. gross margin 81.5-82.0%, Adj. operating margin 30.5-31%.
• Samsara (IOT) Q1 2026 (USD): Adj. EPS 0.17 (exp. 0.13), Revenue 478.8mln (exp. 455.17mln). ARR approached USD 2bln (growing 30%), while EPS profitability was achieved for the third consecutive quarter. Guidance: Q2 adj. EPS 0.15-0.16 (exp. 0.15), Revenue 482-484mln (exp. 480.12mln). Raised FY27; adj. EPS 0.70-0.72 (exp. 0.68; prev. 0.65-0.69), Revenue 2.005-2.013bln (exp. 1.97bln).

COMMUNICATIONS:

• Alphabet (GOOG) - Google Cloud has quietly cut staff, including in Google’s Threat Intelligence Group, Mandiant and other cloud teams, Business Insider reports. The number affected and reasons are unclear, though Google cited reinvestment in AI growth areas in one case.
• EchoStar (SATS), American Tower (AMT) - American Tower terminated its Strategic Collocation Agreement and related agreements with DISH Wireless, effective 2nd June. The company said 100% of DISH revenue has been reflected in churn from 1st January, and the termination is not expected to affect FY 2026 results, while litigation against DISH continues.
• Meta (META) - AI chief Alexandr Wang said health will be central to future AI models and could differentiate the company’s consumer offerings. He said Muse Spark’s health capabilities were a strength, though it remains behind leading frontier models. Wang said elevated biological-risk concerns were mitigated before release and influenced the decision not to make Muse Spark open source.
• AT&T (T), IBM (IBM) - A whistleblower lawsuit filed in 2020 by William Barlow, IBM’s former vice president of threat intelligence, alleges that IBM and AT&T concealed repeated foreign hacks of their shared cloud network infrastructure and made false assurances about cybersecurity to win federal contracts, Bloomberg reports.
• Verizon (VZ) - CEO said AI will replace a large share of customer service work. It has set aside USD 20mln to retrain workers for AI-related roles, with around 7,000 employees having already applied. CEO also noted Verizon posted its first positive Q1 phone subscriber additions since 2013 in April.
• Paramount Skydance (PSKY), Warner Bros. (WBD) - California AG Bonta will decide shortly whether to file suit to block Paramount's USD 110bln acquisition of Warner Bros.

FINANCIALS:

• Perpetual Futures, CME Group (CME) - CME Group CEO Terry Duffy voiced strong opposition to perpetual futures at a financials conference, stating he has “grave concerns” over retail investor exposure to excessive risk, and he disagreed with the CFTC’s decision to approve the contracts. Duffy said he called CFTC chair Michael Selig directly on the day of approval to express his concerns, and drew parallels between current retail speculation, including prediction markets, and conditions preceding the 2008 financial crisis.
• Tokenised Deposit Network - JPMorgan (JPM), Bank of America (BAC), Citigroup (C), Wells Fargo (WFC) and other large US banks plan a tokenised deposit network through the Clearing House, targeting launch in H1 2027, WSJ reports. The system would enable instant blockchain-based transfers with 24/7 settlement, targeting corporate treasury, liquidity management and cross-border payments.
• Crypto - The House Ways and Means Committee is preparing crypto tax legislation covering staking, mining, stablecoin transactions, wash-sale rules, charitable donations and safe harbours, Bloomberg reports.

CONSUMER DISCRETIONARY:

• Tesla (TSLA) - Upgraded at JPMorgan to 'Neutral' from 'Underweight' with a PT of USD 475 (prev. 145); said Tesla is at the "forefront of physical AI" and entering "uncharted" TAM. Co. has an "unmatched" advantage from its industrial level scale, vertical integration across all the hardware and software products it builds, and speed of technology development. It believes these are "somewhat under-appreciated" in Tesla shares. JPMorgan sees an earnings "inflection" for Tesla in 2028, with a 50% annual growth rate through 2030 and beyond. The stock's valuation on near-term earnings "is clearly lofty," but Tesla "deserves the benefit of the doubt" on long-term earnings given that its new markets are unlikely to inflect until 2029.
• Automakers - President Trump met GM (GM), Ford (F), National Automobile Dealers Association and Alliance for Automotive Innovation leaders to discuss right-to-repair legislation. The USD 200bln auto service market is contested between automakers, dealers and independent repair shops over access to repair instructions, tools, diagnostic codes and vehicle data.
• Lululemon (LULU) - Shares tumbled over 11% post-earnings after it cut FY guidance, citing negative brand commentary, underwhelming product launches, continued North American weakness and margin pressure from tariffs and discounting. Q1 2027 (USD): EPS 1.69 (exp. 1.68), Revenue 2.47bln (exp. 2.43bln); Comp sales +1%, but -2% on a constant-FX basis; Americas comps -5% (-6% CC), international comps +13% (+8% CC). Commentary: Interim co-CEO and CFO Meghan Frank said Co. had a solid start to 2026, with sequential improvement in full-price sales in North America, but recent headwinds led management to cut the FY outlook, and take additional actions to strengthen the product engine. Guidance: Q2 EPS 1.76-1.81 (exp. 2.68), Revenue 2.45-2.475bln (exp. 2.6bln); Cuts FY26; EPS 10.95-11.15 (exp. 12.27; prev. 12.10-12.30), Revenue 11.0-11.15bln (exp. 11.5bln; prev. 11.35-11.5bln), ex-potential IEEPA tariff refunds and future share repurchases.
• Peloton Interactive (PTON) - Acquired a Pilates-focused startup, Skop, as part of its broader wellness expansion.
• G-III Apparel (GIII) Q1 2027 (USD): EPS -0.21 (exp. -0.30), Revenue 535.96mln (exp. 529.93mln). Guidance: Q2 EPS 0.15-0.25 (exp. 0.18), Revenue 570mln (exp. 555.23mln). Raises FY27 EPS to 2.15-2.25 (prev. 2.00-2.10, exp. 2.09); backs revenue of 2.71bln.

CONSUMER STAPLES:

• Walmart (WMT) - Will let customers in select locations order Subway via the Walmart app or Walmart.com from this month. It is Walmart’s first restaurant integration within Express Delivery.
• Heineken (HEINY) - Major Heineken shareholders are reportedly pressing the brewer to appoint an external CEO, departing from its longstanding practice of internal promotions, FT says.

HEALTHCARE:

• The Cooper Companies (COO) Q2 2026 (USD): Adj. EPS 1.21 (exp. 1.10), Revenue 1.08bln (exp. 1.05bln). Commentary: CEO said it reached agreements to resolve substantially all claims related to CooperSurgical’s fertility media recall, an important step that allows the company to move forward with its strategic review. Guidance: FY26 adj. EPS 4.58-4.66 (exp. 4.62), reaffirming its prior view, and lowered FY26 revenue view, 4.29-4.32bln (exp. 4.32bln; prev. 4.31-4.35bln). Reaffirmed its long-term FCF objective exceeding USD 2.2bln for FY26-FY28
• Abortion Pill - FDA launched a safety study of mifepristone, the abortion pill, which could pave the way for restrictions on its telehealth distribution and mail dispensing, WSJ reports. The study is expected to take around six months, with preliminary results anticipated in July and an update due to a Louisiana court by an October deadline set as part of ongoing litigation. Around 65% of US abortions use the mifepristone regimen.
• Eli Lilly (LLY), Novo Nordisk (NVO) - Eli Lilly and Novo Nordisk are targeting obesity drug growth beyond the US, aiming to improve access to GLP-1 treatments where cost limits uptake, Bloomberg says. Lilly has sought approval for its Foundayo pill in 40 countries, while Novo launched oral Wegovy in the UAE and expects European approval, as semaglutide generics expand in India, Canada and Brazil.
• Weight loss names - TD Cowen raises global GLP-1 sales forecast to USD 150bln by 2030 (+ USD 139bln), driven by stronger demand for diabetes and obesity treatments. Of note for weight loss names Eli-Lilly (LLY) and Novo Nordisk (NOVOB DC).

INDUSTRIALS:

• SpaceX (SPCX) - S&P Dow Jones Indices will keep existing S&P 500 eligibility rules, including a 12-month seasoning period plus profitability and public-float requirements, rejecting faster entry for mega-cap IPOs such as SpaceX. The decision contrasts with Nasdaq (NDAQ) and FTSE Russell, which recently shortened waiting periods for newly listed companies. Elsewhere, SpaceX is preparing the largest retail allocation attempted in a megacap IPO, with Elon Musk seeking up to a quarter of its USD 75bln float for individual investors, FT reports.
• Rolls-Royce (RYCEY) - Faces criticism from politicians and industry figures after selecting South Korea’s Doosan Enerbility to finalise designs for key components in three UK small nuclear reactors, FT reports. The decision raised questions over whether the government’s 70% British-made target will be met, and prompted warnings that the UK may miss a supply-chain opportunity.

MATERIALS:

• Big, Beautiful Coal - President Trump approved USD 700mln in federal support to revive the US coal industry, including USD 500mln under the Defence Production Act. The package directs USD 425mln to more than a dozen coal plants, with beneficiaries including Duke Energy (DUK), Hallador Energy (HNRG), Oklahoma Gas & Electric (AEP); USD 75mln toward the proposed West Gateway export terminal in California; USD 185mln in Energy Department grants for new plants in Alaska and West Virginia and a restart of a Maryland facility.
• Celanese (CE) - Will immediately cease manufacturing and production at its Engineered Materials compounding facility in Ulsan, South Korea, as part of a production network optimisation. The company plans to meet contractual obligations and transfer production volumes to its plants in Nanjing and Shenzhen, China, and Silvassa, India.

UTILITIES:

• Sempra (SRE) - Said its ECA LNG Phase 1 liquefaction project in Ensenada, Mexico, has begun producing LNG during commissioning toward commercial operations. Full operations are expected in the coming months. The facility is intended to supply US natural gas from Mexico’s Pacific Coast to Asia and other Pacific Basin markets via shorter shipping routes.

GEOPOLITICS:

• Oman - Oman’s Mina Al Fahal crude export terminal delayed scheduled loadings by several days after an explosion disrupted port operations, traders cited by Bloomberg said. The terminal, outside the Strait of Hormuz, is among the few remaining Middle Eastern crude loading points during the war and saw tanker jams last month. In early European trade, it was announced that the port has recommenced operations.

MACRO:

• Japan Foreign Securities - Japan’s holdings of foreign securities fell USD 75.6bln in May, the largest on-record monthly drop, as Tokyo drew on reserves, likely including US Treasuries, to fund a record JPY 11.73tln currency intervention, Bloomberg reports. A Finance Ministry official confirmed intervention was among the factors behind the decline.
• Japan JPY - Japanese officials stepped up verbal intervention as USDJPY hovered near 160, with PM Takaichi stating Japan aims to defend the JPY’s credibility via strengthening the domestic economy, and FinMin Katayama warning authorities will respond in the FX market as needed.
• Japan Wages - Japan’s inflation-adjusted wages rose +1.9% Y/Y (exp. 1.7%), marking a fourth consecutive monthly gain. Nominal wages +3.5%, base pay +3.4%. Analyst said that the data strengthens the case for a BoJ rate rise at its 15–16th June meeting, where a 25bps hike is widely expected.
• RBI - India’s RBI kept the benchmark repurchase rate at 5.25%, with a neutral stance, while announcing measures to support the INR currency by boosting foreign inflows; steps include easier overseas access to bonds and stocks, tax reductions on government securities, and forex-swap support. Inflation forecast rose to 5.1%, while growth forecast was cut to 6.6%. India scrapped taxes and removed ownership caps on some bonds for foreign investors to attract overseas capital and stabilise the INR amid pressure from higher energy prices and equity outflows.

TRADE:

• US-India - President Trump said he was confident the US and India would reach a trade deal, citing his relationship with PM Modi. India’s commerce ministry said both sides remained committed to a bilateral pact after talks in New Delhi. An earlier interim deal stalled after the US Supreme Court struck down reciprocal tariffs.