US EQUITY OPEN: Indices extend on gains as Iran/US reach framework peace agreement
OPEN: US indices opened in the green with the tech heavy Nasdaq 100 outperforming after the US and Iran reached a framework peace agreement over the weekend; the US will lift its naval blockade, whilst the Iranians will reopen the Strait of Hormuz. The Pakistani PM suggested it would be signed in person on Friday, 19th June, in Switzerland. As a result, seeing broad risk on trade across markets with downside in the crude complex and the Dollar, with upside in Treasuries and precious metals. WTI and Brent are lower by c. USD 4.50/bbl, albeit off earlier troughs, with T-Notes seeing some pressure after Nvidia filed to sell a 7-part debt offering, planning to raise at least USD 20bln. On the data footing, NY Fed Manufacturing saw the headline fall to 5.7 from 19.6, beneath the expected 13.2. The internals were more mixed, as new orders and shipments tumbled, but prices paid encouragingly fell. Sectors are mainly in the green, with the Energy the laggard, as expected, given the hefty losses in crude. Ahead, the calendar is pretty quiet as traders await the Fed rate decision and MPR on Wednesday, with eyes on Warsh's first press conference as Fed chair.
STOCK SPECIFICS:
- Elon Musk said on Sunday that SpaceX (SPCX) could bring in USD 1tln in revenue by 2030.
- Kazakhstan and Firebird signed a USD 10bln AI project deal with Nvidia (NVDA) chips; NVDA plans to raise at least USD 20bln from high-grade bond sale.
- TripAdvisor (TRIP) to sell TheFork to American Express (AXP) for USD 700mln in cash.
- Fox Corp (FOXA) agreed to acquire Roku (ROKU) for USD 160/shr in cash & stock.
- US DoJ approves Paramount's (PSKY) USD 111bln takeover of Warner Bros Discovery (WBD).
- Woodside Energy (WDS) said no discussions are being held and denies proposal involving Exxon Mobil (XOM).
- Ferrari (RACE) upgraded at Morgan Stanley to 'Overweight' from 'Equal Weight'.
- Datadog (DDOG) upgraded at Truist to 'Buy' from 'Hold'.
- Broadcom (AVGO) reportedly backs a USD 35bln AI chip order to boost demand, with plans to finance over 20 gigawatts of compute capacity, potentially impacting credit through chip lease financial backstop, reports The Information.