US EQUITY OPEN: Indices open contained as memory rally continues

OPEN: US indices opened the first trading session of the week contained, with memory names (INTC, MU) continuing their ascent higher. Sectors are also mixed, with Energy sitting atop of the pile, and supported by gains in crude benchmarks, after Trump rejected Iran's response to the peace plan, and called it “totally unacceptable”. Through the morning, WTI and Brent have been very choppy in light newsflow, while spot silver has soared and gold is slightly firmer. Yields are higher, with G10 FX performance mixed vs. the Dollar, with haven FX (JPY, CHF) seeing losses, while AUD and CAD outperform. There is only US existing home sales and the US 3yr note auction on the calendar, ahead of CPI and PPI later in the week. As always, participants remain focused on any geopolitical updates. 

Elsewhere, in the UK, Gilts came under modest pressure following PM Starmer’s speech and Q&A, but in short, the speech didn't change the overall narrative, however we await the assessment of Labour MPs. Further reporting by ITV’s Peston, later confirmed by West herself, stated that she is to move ahead with her stalking horse challenge, which resulted in another leg lower.

STOCK SPECIFICS:

• Emerald Holding (EEX) reportedly to be acquired by Apollo (APO) for approx. USD 1bln & shareholders to receive USD 5.03/shr; closed Fri. at USD 4.57/shr.
• Dell (DELL) downgraded at UBS.
• Lumentum (LITE) will join the Nasdaq 100, effective May 18th
• Sony (SONY) & TSMC (TSM) signed MOU for next-gen image sensor JV in Japan.
• SK Hynix is reportedly conducting R&D on 2.5D packaging technology with Intel (INTC).

EARNINGS:

• Circle Internet (CRCL): EPS & adj. EBITDA beat; revenue miss
• Mosaic (MOS): Profit light
• Constellation Energy (CEG): EPS & rev. beat
• Fox Corp (FOXA): EPS, rev. & adj. EBITDA topped Wall St. exp.
• Monday.com (MNDY): Stellar Q report & said launch of its AI platform helped its rev. grow 24% Y/Y.