US EQUITY OPEN: US equities slightly lower at the open; AMZN losses weigh further on XLY

OPEN: US indices open lower, albeit marginally, taking a breather after the strong gains on Friday, which saw SPX pare the earlier losses in the week. Sectors are mixed as Consumer Discretionary and Communications lead losses, the former weighed by continued Amazon (AMZN, -2.4%) weakness post earnings last week, which saw a larger-than-expected capex outlook. On the flip side, Tech outperforms amid strength in semiconductors, particularly in Nvidia (NVDA, +3%). Hims & Hers Health (HIMS, -25.7%) sinks after it said it will stop selling a copycat version of Novo Nordisk's Wegovy, days after the FDA said it is to crack down on such copycats; NVO is seeking to recover damages. Meanwhile, Kyndryl Holdings (KD, -53%) sees a notable selloff after it missed EPS, disclosed internal control weaknesses, filed a non-timely 10-Q, and announced CFO changes. Data has been absent this morning, with much of the conversation surrounding a Bloomberg report that Chinese regulators advised banks to curb holdings of US Treasuries, citing concentration risk and market volatility. Price action has seen US yields ex-2yr higher across the curve with the dollar failing to track the move, weakening against all G10 FX peers as fears over de-dollarisation reignite once again. JPY is bid as PM Takaichi's victory brings political stability, with CHF and AUD closely following with strong gains. In commodities, crude prices are firmer as focus turns to more US-Iran talks this week. Elsewhere, precious metals are firmer, extending on Friday's gains, led by silver, c. +4.7%. The day ahead will see the NY Fed SCE, remarks from multiple Fed speakers, including Governors Waller and Miran, as well as Bostic, who is set to retire at the end of the month. After the US cash close, ON Semiconductor (ON) earnings are due.

STOCKS SPECIFICS

• Kroger (KR): Plans to appoint former Walmart executive Greg Foran as its next CEO.
• Kyndryl Holdings (KD): Missed EPS, disclosed internal control weaknesses, filed a non-timely 10-Q, and announced CFO changes.
• Nexstar (NXST), Tegna (TGNA): Trump expressed support for a potential merger between Nexstar & Tegna.
• Eli Lilly (LLY): To acquire Orna Therapeutics w/ transaction valued at $2.4bln.
• Block (XYZ): Cutting up to 10% of its workforce as part of a broader efficiency & business overhaul.
• Meta (META): EU Commission has notified META of possible interim measures to reverse exclusion of third-party AI assistants from WhatsApp.
• Cleveland-Cliffs (CLF): Revenue light.Becton, Dickinson (BDX): Q4 metrics strong, but revised FY profit view much lower.
• Hims & Hers Health (HIMS): Will stop selling a copycat version of Novo Nordisk’s Wegovy weight-loss pill.