Morning News Call

TOP NEWS

• Amazon says AWS' Bahrain region "disrupted" following drone activity, second time this month.
• Jefferies shares surge 10% on report of Japan's SMFG preparing for potential buyout.
• Broadcom flags supply constraints, says TSMC capacity a bottleneck due to soaring AI chip demand.
• Google fends off news publishers' antitrust lawsuit over online search.
• Estee Lauder in talks to merge with Jean Paul Gaultier-owner Puig in fragrance push.

BEFORE THE BELL

• U.S. stock index futures edged lower as Middle East tensions weighed despite Trump delaying strikes on Iran. Investors awaiting S&P Global's business activity gauge and Fed Governor Michael Barr's comments.
• Dollar firmed on mixed geopolitical signals and skepticism over Middle East resolution.
• Oil prices rose on supply fears.
• Gold was little changed.
• European stocks were muted, digesting conflicting Middle East signals and energy shock concerns.
• Asian markets mixed; Japanese shares eased, Chinese equities rebounded.

STOCKS TO WATCH

• Alphabet Inc: Google won dismissal of lawsuit accusing it of monopolizing online news and exploiting content; judge found no monopoly power or standing.
• Amazon.com Inc: AWS Bahrain region "disrupted" by drone activity; helping customers migrate to alternate regions; second disruption this month.
• Apollo Global Management Inc: Its $25 billion private credit fund (ADS) curbed redemptions to 5% after investors sought to withdraw 11.2% of shares; shares fell.
• BP PLC: United Steelworkers accused BP of unfair labor practices for locking out nearly 800 workers at Whiting, Indiana refinery; urged resumption of contract talks.
• Broadcom Inc: Seeing supply chain constraints, including capacity limits at TSMC, due to soaring AI chip demand; customers entering long-term agreements.
• DraftKings Inc: National Collegiate Athletic Association (NCAA) sued over marketing for "March Madness," citing trademark misuse and risks to athletes from "prop" bets.
• Fevertree Drinks PLC: Reported 16% drop in annual profit due to a packaging levy charge and margin pressure from U.S. partnership; formally challenging UK Environment Agency.
• Gilead Sciences Inc: To buy Ouro Medicines for over $2 billion to expand immune disorder drug pipeline; includes experimental antibody drug OM336.
• Jefferies Financial Group Inc: Shares surged on report of Japan's SMFG preparing for a potential takeover; SMFG increased its stake to 20% in September.
• NextEra Energy Inc: Secured land in Texas for a 5+ GW gas-fired plant to power a large data center, part of a U.S.-Japan agreement; needs definitive agreement with Japan.
• Oracle Corp: Revamping cloud financial software to work with AI agents, allowing humans to ask business questions; shares down 40% this year.
• Sable Offshore Corp: California Attorney General sued U.S. Department of Energy to stop using Cold War-era law to restart Sable Offshore pipeline system.
• Smithfield Foods Inc: Beat Q4 sales and profit estimates due to resilient demand for packaged meats and cost-saving efforts; shares rose.
• The Estee Lauder Companies Inc: In talks for potential business combination with Spanish beauty group Puig to create a $40 billion luxury beauty group and compete with L'Oreal.

ANALYSIS

• In Iran fallout, US shares hold up better than global rivals, for now: U.S. equities have shown relative strength but may still face declines if Middle East conflict persists.

ANALYSTS' RECOMMENDATION

• Lamb Weston Holdings Inc: JPMorgan cuts target price to $44 from $50; citing weaker Q3, pricing pressures, and stock volatility.
• Sunoco LP: JPMorgan raises target price to $73 from $66; expects strong cost synergies and favorable geopolitical environment.