Morning News Call

TOP NEWS

• Global oil and gas shipping costs surge as Iran vows to close Strait of Hormuz due to intensifying U.S.-Iran conflict.
• Importers seeking over $130 billion in tariff refunds are filing ~2,000 lawsuits at the U.S. Court of International Trade.
• State, Treasury, and Health and Human Services departments switched to OpenAI, phasing out Anthropic's AI products.
• Paramount's $110 billion Warner Bros deal is likely to secure FCC backing, according to the FT.
• Ticketmaster and Live Nation's antitrust trial began in New York over alleged market domination.

BEFORE THE BELL

• U.S. stock futures fell sharply due to widening Middle East conflict.
• Crude oil benchmarks rose more than $4, marking a third day of gains on supply disruption concerns.
• The dollar extended gains from safe-haven flows; a stronger dollar weighed on gold prices.
• Europe shares slumped over 3% as global equities rout deepened.
• Asian markets were down, with Japanese stocks tumbling and Chinese equities logging their worst session in a month.

STOCKS TO WATCH

• Amazon.com Inc: Unit acquiring George Washington University's Virginia campus for $427M for data/AI infrastructure.
• Apollo Global Management Inc: Shareholders sued for alleged fraud regarding dealings with Jeffrey Epstein.
• BlackRock Inc: Consortium pushing to acquire CK Hutchison's global ports business, excluding Panama terminals.
• Blackstone Inc: Agreed to increase payouts to investors from a private credit fund; received takeover proposal for Senior Plc.
• Entergy Corp: Power largely restored in Lake Charles, Louisiana after substation fire.
• Exxon Mobil Corp, Shell PLC & TotalEnergies SE: Companies with more exposure to oil/gas production disruptions from Middle East conflict.
• NRG Energy Inc: LS Power seeking up to $2.1B from selling a stake.
• On Holding Ltd: Sees lower U.S. tariff rates as a boost, reports strong Q4 sales and plans store openings.
• Paramount Skydance Corp & Warner Bros Discovery Inc: FCC Chair signaled likely backing for Paramount's $110B Warner Bros deal.
• PayPay Corp: Targeting up to $13.4B valuation in U.S. IPO, seeking ~$1.1B.
• Rio Tinto plc: Canadian government conditionally approved C$18.95M for gallium metal R&D project.
• Select Medical Holdings Corp: To be taken private by a consortium for $3.9B.
• Shell PLC & Venture Global Inc: NY judge rejected Shell's request to throw out arbitration award favoring Venture Global.
• StoneCo Ltd: Projected adjusted earnings per share for 2026-2027 and Q4 adjusted net profit.
• TotalEnergies SE: Sold 50% stake in 11 German battery projects to Allianz Global Investors.
• UBS Group AG: Swiss lawmakers told UBS to tone down lobbying and reduce CEO's profile regarding capital reforms.
• WeRide Inc: Suspended robotaxi fleet in Dubai due due to escalating Middle East conflict.

ANALYSIS

• U.S. software companies' stock buyback plans are not enough to soothe investors after a months-long rout.

ANALYSTS' RECOMMENDATION

• Berkshire Hathaway Inc: UBS cuts target price to $578 from $587.
• MongoDB Inc: Scotiabank cuts target price to $275 from $415.
• Sherwin-Williams Co: Berenberg raises target price to $400 from $385.
• Targa Resources Corp: JP Morgan raises target price to $260 from $224.

COMPANIES REPORTING RESULTS

• Autozone Inc: Expected Q2 earnings of $27.13 per share.
• Best Buy Co Inc: Expected Q4 earnings of $2.47 per share.
• CrowdStrike Holdings Inc: Expected Q4 earnings of $1.10 per share.
• Progressive Corp: Expected Q4 earnings of $4.63 per share.
• Ross Stores Inc: Expected Q4 earnings of $1.90 per share.

CORPORATE EVENTS

• 0800 ET: Best Buy Co Inc: Q4 earnings conference call.
• 0930 ET: Progressive Corp: Q4 earnings conference call.
• 1000 ET: AES Corp: Q4 earnings conference call.
• 1000 ET: Autozone Inc: Q2 earnings conference call.
• 1130 ET: Target Corp: Q4 earnings conference call.
• 1615 ET: Ross Stores Inc: Q4 earnings conference call.
• 1700 ET: CrowdStrike Holdings Inc: Q4 earnings conference call.

EXDIVIDENDS

• Analog Devices Inc: Amount $1.10.
• KeyCorp: Amount $0.20.
• McDonald's Corp: Amount $1.86.
• Newmont Corporation: Amount $0.26.