US EQUITY OPEN: Stocks bid as Nasdaq outperforms while chip names gain

OPEN

Stocks opened in the green on Monday with upside led by the Nasdaq with semis buoyed after South Korea announced a new USD 880bln AI and chip spending package, which includes huge investment from the likes of Samsung Electronics (005930 KS) and SK Hynix (000660 KS). Semiconductors are performing well with SOXX +0.9%, but memory names continue to take a beating with DRAM -3.5%. Also supporting the Nasdaq is that SpaceX (SPCX) will officialy join the Index on July 7th. Elsewhere, Comcast (CMCSA) is rallying after it announced plans to separate the co. into two independent, publicly traded companies through a tax-free spinoff of its NBCUniversal and Sky assets. 

Sectors are predominantly firmer with notable upside in Communication and Consumer Discretionary stocks while Materials, Real Estate and Utilities lag. Materials are the clear laggard after Martin Marietta (MLM) confirmed it is to acquire limestone supplier, Lhoist North AMerica, for USD 13.5bln. 

Geopolitical tensions remain high after the US conducted strikes against multiple Iranian targets after Iran hit a Panama-flagged tanker in Hormuz, while Iran then responded by hitting US military bases in Gulf nations, Despite this stocks and energy are little phased. There has been mixed reporting about further talks this week, but the US has stated that talks with Iran will take place tomorrow in Doha, Qatar. Crude prices are higher in response to the escalations but off the peaks seen earlier. Meanwhile, explosions were reported at an oil rig in Venezuela, Apure, albeit the current baseline production is 20-27k BPD. 

In FX the Pound is outperforming after Burnham's speech alongside the Kiwi. Meanwhile, Yen and CAD underperform with DXY slightly softer on the session. 

Treasuries are flat but the curve is showing a slightly flatter bias with front-end yields up marginally and long-end yields down marginally with the belly flat. 

STOCK SPECIFICS

• Comcast (CMCSA): Plans to separate into two independent, publicly traded companies through a tax-free spinoff of its NBCUniversal and Sky assets
• SpaceX (SPCX): To join the NDX before the market open on 7th July
• Rocket Lab (RKLB): To acquire Iridium Communications for USD 54/shr
• Iridium Communications (IRDM): To be acquired by Rocket Lab for USD 54/shr
• Charter Communications (CHTR): SpaceX and Charter have held executive-level talks about a consumer mobile phone partnership
• Palantir Technologies (PLTR): To deliver a sovereign AI platform with NVIDIA to help the US government and critical infrastructure deploy AI
• Martin Marietta Materials (MLM): Agreed to combine with Lhoist North America in a USD 13.5bln deal
• Axon Enterprise (AXON): US President Trump reportedly bought as much as USD 5mln of the company's shares
• Doximity (DOCS): Downgraded at BofA to 'Underperform' from 'Buy'