US EQUITY OPEN: Indices in the red as Trump "thinks" Iran ceasefire is over
OPEN: US indices opened in the red amid broad-based risk-off sentiment as US President Trump said that the Iran ceasefire is over, "he thinks". In reaction, it lifted Brent above USD 79/bbl from around USD 76/bbl, and saw equity, Treasury, and gold selling. The Dollar is benefitting marginally but the FX space mixed overall, as the Yen lags. The Kiwi is the best performer after the RBNZ hike and commentary pointing toward potential further action. Sectors are almost exclusively in the red, with only Energy the only in the green and buoyed by the aforementioned strength in the crude complex of c. USD 3/bbl. Materials and Consumer Discretionary lag. Do note, we did see a modest paring of these moves from extremes on source reports that Trump did not reiterate his Iran, Spain, or Greenland language in the actual NATO summit. Though, the bulk of the original action remains intact. In his most recent remarks, Trump, on Iran, said it may be a big attack tonight and the US may put the blockade back. Ahead, FOMC Minutes and US 10yr note auction are the highlights.
STOCK SPECIFICS:
- Apple (AAPL) announced plans to spend over USD 30bln in a chip-supply deal with Broadcom (AVGO).
- ExxonMobil (XOM) expects higher liquids prices to lift earnings by USD 3.5-3.9bln Q/Q.
- Penguin Solutions (PENG): EPS, revenue and guidance beat.
- FuelCell (FCEL) announced USD 200mln common stock offering.
- Rivian Automotive (RIVN) 75mln share secondary priced at USD 15.50; note, closed Tuesday at USD 16.49/shr.
- Kura Sushi (KRUS) cut FY26 revenue outlook.
- Dollar Tree (DLTR) was upgraded at Raymond James and Goldman Sachs.
- Alcoa (AA) was downgraded at Morgan Stanley to 'Equal Weight' from 'Overweight'.
- Bath & Body Works (BBWI) was downgraded at Goldman Sachs to 'Sell' from 'Neutral'.