US EQUITY OPEN: Indices in the red, as yields move higher and Dollar firms

OPEN: US indices open in the red, with the Nasdaq 100 leading losses, with the equal-weighted S&P lower by c. half-a-percent. Sectors are mixed with Consumer Discretionary the laggard, while Health and Energy sit atop of the pile; the latter is buoyed by continued strength of c. USD 2.60/bbl in the crude complex as US/Iran tensions show no sign of easing. The Dollar Index is firmer against all G10 currencies with yields rallying on continued energy upside, while the Yen has been reactive to numerous comments. US Treasury Secretary Bessent reportedly told Japanese officials that rate hikes are needed, and a Japanese MoF official expects the BoJ to act on the economy and not on US influence. Further reports suggested that BoJ Governor Ueda likely met Bessent on sidelines of G20 finance leaders' meeting on Sunday. The Pound is the relative G10 outperformer, albeit still seeing slight losses. There is a slew of data at the top of hour, including JOLTS and ISM Manufacturing. Prior to that, S&P Global Manufacturing PMI was unrevised at 53.9, but above the expected 53.2. On the Fed footing, Barr (voter) noted that if inflation doesn't moderate soon, will be time for an interest rate hike.

STOCK SPECIFICS:

• Micron's (MU) Taiwan unions threaten strike over bonus dispute.
• Nio (NIO) shallower loss per shr. than exp. while rev. missed.
• Fervo Energy (FRVO) secured its largest power agreement to supply nearly 400MW of electricity to Google.
• Medtronic (MDT) EPS & rev. topped w/ FY outlook better than exp.
• Novartis (NVS) positive trial data for its multiple sclerosis drug; remibrutinib “significantly” reduced relapse rates in MS patients relative to another treatments.
• Robinhood (HOOD) upgraded at MS.
• GoPro (GPRO) enters into definitive agreement to merge with Starman Optical and deal value of USD 1.14/shr/USD 285mln.