Morning News Call

TOP NEWS

• SpaceX aims to file for IPO as soon as this week.
• Meta ordered to pay $375 million in New Mexico trial over child exploitation and user safety claims.
• US ramps up fuel exports to Cuba's private sector.
• US judge says Pentagon's blacklisting of Anthropic looks like punishment for its AI safety views.
• OpenAI drops AI video tool Sora, startling Disney and ending a potential $1 billion deal.

BEFORE THE BELL

• U.S. stock index futures climbed on reports of a potential U.S.-Iran ceasefire.
• Gold extended gains, supported by a softer dollar and a 4% drop in oil prices.
• European shares rose more than 1%.
• Asian markets also rose, with Chinese, Hong Kong, and Japan's Nikkei stocks advancing.

STOCKS TO WATCH

• Arm Holdings PLC: U.S.-listed shares jumped nearly 12% after projecting $15 billion in annual revenue from its new AI data-center chip in about five years.
• GameStop Corp: Reported a 14% drop in fourth-quarter revenue, struggling with digital shift; signed agreement for potential sale of French operations.
• General Motors Co: Plans to invest $600 million in its South Korea unit to upgrade manufacturing facilities and products.
• Intuitive Machines Inc: Awarded a $180.4 million NASA contract to deliver seven science and technology payloads to the moon's south pole.
• Merck & Co Inc: Nearing a roughly $6 billion all-cash deal to acquire biotech firm Terns Pharma.
• Meta Platforms Inc: A New Mexico jury found Meta violated state law, ordering a $375 million penalty for child exploitation; Meta plans to appeal.
• Microsoft Corp: Agreed to rent a data center project in Texas that was originally being developed for Oracle and OpenAI.
• Palantir Technologies Inc: Working with Anduril to develop software for U.S. President Trump's Golden Dome antimissile shield initiative.
• Sony Group Corp: Sony Honda Mobility (joint venture) will stop developing its Afeela electric vehicles due to Honda's EV strategy reassessment.
• United Parcel Service Inc: Opened a new $100 million logistics centre in Taiwan, its largest in Asia Pacific, driven by tech demand.
• Valero Energy Corp: Preparing to restart its 380,000 bpd Port Arthur, Texas, oil refinery this week after an explosion and fire.
• Victory Capital Holdings Inc & Janus Henderson Group plc: Victory withdrew its roughly $8.6 billion proposal to buy Janus Henderson after Trian Fund Management and General Catalyst raised their offer.
• Walt Disney Co: OpenAI dropped its AI video tool Sora, surprising Disney and ending a potential $1 billion deal.

FOCUS

• Delta Air Lines' refinery bet looks more valuable in jet fuel squeeze: Delta's 2012 acquisition of a refinery proves beneficial amid current jet fuel shortages.

ANALYSTS' RECOMMENDATION

• Amazon.com Inc: JP Morgan raises target price to $280 from $265, citing accelerating AWS growth.
• Freshpet Inc: JP Morgan cuts target price to $66 from $80, citing rising competitive pressure and reduced earnings expectations.
• KB Home: Barclays cuts target price to $56 from $62, citing weaker March orders and softer FY26 delivery outlook.
• Kraft Heinz Co: JP Morgan cuts target price to $21 from $22, citing modest early-quarter sales strength and ongoing pressures.
• McCormick & Company Inc: JP Morgan cuts target price to $67 from $78, citing softer Q1 expectations and mounting cost pressures.