Thursday Morning Reads
- IPO Was Overhyped
- Making Billions Breaking All the Rules
- Embarrassing Surrender
- The Last Place for Traders to Earn Real Money
- Hard Truths for the Inflation Truthers
- What Is Your Trading Timeframe Now?
- Futures point to slight losses
- Behind Apple's surprise settlement with Qualcomm
- Wisconsin wants to renegotiate Foxconn contract
- T. Rowe Price funds slash Tesla holdings
- Philip Morris beats by $0.08, misses on revenue
- PepsiCo shakes off bear call
- Schlumberger EPS in-line, beats on revenue
- Government cloud wars continue
- Honeywell beats by $0.08, beats on revenue
- PPG beats by $0.17, misses on revenue
- 737 MAX certification flight ready for takeoff
- Mustang Bio rally lifts Fortress Bio, up 62% premarket
Pinterest will begin trading on the NYSE today under ticker symbol "PINS" after being priced above range at $19 per share and valuing the online image board at $12.7B. Zoom Video Communications, another multi-billion dollar tech company, is expected to list on the Nasdaq after pricing its shares - which will trade under symbol "ZM" - at $36. It's the next big test for tech IPOs. Ride-hailing company Lyft (NASDAQ:LYFT) was the first big offering to hit the market in March, but the stock has dropped 19% since then.
U.S. stock index futures are losing a bit more ground as investors look to the continuing first-quarter earnings season for clues about the strength of businesses and the economy. Political tensions are popping up in the background ahead of the release of the Mueller report and amid news of renewed weapons tests by North Korea that threatened to unravel President Trump's broader Asia strategy on trade and security. Dow futures are down 53 points, while S&P 500 and Nasdaq futures are 0.1% lower ahead of the open.
The euro slipped 0.3% to $1.1259 after PMI data showed the German manufacturing sector contracting for the fourth month in a row, pushing investors into the safety of eurozone government bonds. While activity in Germany's services sector rose to a seven-month high in April, the focus surrounded the 44.5 reading for the manufacturing sector, well below the 50.0 mark that separates growth from contraction. The reading comes a day after Germany slashed its 2019 growth forecast to 0.5% - marking the second time the government cut its outlook in just three months.
Nestle (OTCPK:NSRGY) shares hit a new all-time high of 96.34 francs as organic sales growth - boosted by baby and pet food - rose 3.4% in the first quarter, well ahead of the 2.8% consensus forecast. The group is also advancing its reviews of its skin-care and processed meat operations, increasing hopes that it will raise more cash for shareholders through disposals. Meanwhile, Anglo-Dutch rival Unilever (NYSE:UL) shares are up 2.8% premarket as organic sales rose 3.1%. The company further upped its dividend by 6%, while CEO Alain Jope said that its acquisitions over the last three years collectively grew by "double-digits."
Facebook (NASDAQ:FB) has admitted to yet another potential data breach, saying it "unintentionally" uploaded the email contacts of up to 1.5M new users since May 2016. "Last month we stopped offering email password verification as an option for people verifying their account when signing up for Facebook for the first time. We've fixed the underlying issue and are notifying people whose contacts were imported. People can also review and manage the contacts they share with Facebook in their settings." FB -0.5% premarket.
Apple (NASDAQ:AAPL) had "four terrible options" to get the iPhone to 5G, so it went with the least of all evils, writes CNBC's Steve Kovach. 1) Settle with Qualcomm (NASDAQ:QCOM) - the leader in 5G chips, 2) Wait for Intel (NASDAQ:INTC) to catch up in 5G (although the company subsequently abandoned plans to make a 5G modem), 3) Choose Huawei (despite political and security concerns) or, 4) make its own 5G chips (which could take several years). Unfortunately for Apple, it seems like the multibillion-dollar settlement with Qualcomm was the best bet.
Gadget reviewers who got the device are seeing flickering or disconnecting screens after just two days of use. Some think because a protective film was removed, but units have also broken on which the film was not peeled off. Samsung (OTC:SSNLF) started taking pre-orders for the $1,980 Galaxy Fold last weekend, but quickly ran out of availability, suggesting supply is constrained at least until its retail launch on April 26. The news sent Samsung shares down 3.1% in South Korea.
Wisconsin Governor Tony Evers wants to renegotiate the state's nearly $3B contract with Foxconn (OTC:FXCOF), saying it's "unrealistic" to think the company will employ 13K people as originally promised. Also in question are pledges to build advanced LCD panels and hiring a manufacturing workforce. Under terms of the original deal struck by Evers' predecessor Gov. Scott Walker, Foxconn could get more than $4B in state and local tax credits if it employs 13K people and invests $10B in the state.
Boeing (NYSE:BA) is making "steady progress" on the path to certifying a software update to the grounded 737 MAX and has made the final test flight before a certification flight, according to CEO Dennis Muilenburg. The reprogramming of 737 MAX software would prevent erroneous data from triggering an anti-stall system that came under scrutiny following two deadly nose-down crashes. Boeing must deliver the fix to international regulators for their review, which is expected to last about 90 days.
What else is happening...
Cloud wars continue to host government's secret classified data.
EU, Canada vow to fight U.S. Cuba shift and defend their companies.
Abbott Laboratories (NYSE:ABT) -4.6% despite Q1 beats.
Alcoa (NYSE:AA) -2.1% AH trimming its aluminum demand outlook.
BNY Mellon (NYSE:BK) -9.5% amid CEO's yield-curve warning.
E*TRADE (NASDAQ:ETFC) +2.6% AH posting record revenues.
Ericsson (NASDAQ:ERIC) +7.3% beating expectations.
Kinder Morgan (NYSE:KMI) -0.2% AH on in-line EPS results.
Las Vegas Sands (NYSE:LVS) +2.9% AH with a top and bottom line beat.
Morgan Stanley (NYSE:MS) +2.6% on strong wealth management, trading.
PepsiCo (NASDAQ:PEP) +3.8% reaffirming its 2019 outlook.
U.S. Bancorp (NYSE:USB) +0.8% as NIM improved, loans rose.
In Asia, Japan -0.8%. Hong Kong -0.5%. China -0.4%. India -0.3%.
In Europe, at midday, London -0.2%. Paris +0.2%. Frankfurt +0.4%.
Futures at 6:20, Dow -0.2%. S&P -0.1%. Nasdaq -0.1%. Crude -0.1% to $63.81. Gold flat at $1277. Bitcoin +0.5% to $5241.
Ten-year Treasury Yield -3 bps to 2.56%
Today's Economic Calendar
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
8:30 Retail Sales
9:45 PMI Composite Flash
10:00 Business Inventories
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet