Morning News Call

TOP NEWS

• OpenAI sweetens private equity deal, outbidding Anthropic, to form joint ventures for capital and enterprise AI adoption.
• Broadcasters urge EU to designate Google, Amazon, Apple, and Samsung's smart TVs and virtual assistants as "gatekeepers" under tough tech rules due to market power.
• Elon Musk states SpaceX and Tesla will build two advanced chip factories in Austin for cars, humanoid robots, and space AI data centers.
• Pentagon to adopt Palantir’s Maven AI system as a core U.S. military program of record, ensuring long-term use for weapons targeting.
• An Air Canada Express jet collided with a fire truck at New York's LaGuardia, killing both pilots, injuring dozens, and closing the airport.

BEFORE THE BELL

• U.S. stock index futures fell due to intensified Middle East conflict, higher oil prices, and repriced expectations for U.S. interest rate cuts.
• Gold slid over 5% to a four-month low, impacted by inflation concerns and rising global interest rates.
• The dollar strengthened as escalating retaliatory threats increased demand for safe-haven assets.
• U.S. 10-year Treasury yields climbed to eight-month highs.
• European shares slumped to a four-month low, led by defense stocks, on surging crude prices and inflation fears.
• Asian markets deteriorated sharply: China and Hong Kong tumbled over 3%, and Japan's stocks and bonds slid.

STOCKS TO WATCH

• Alphabet Inc, Amazon.com Inc & Apple Inc: Broadcasters want their smart TV platforms and virtual assistants declared "gatekeepers" under EU's Digital Markets Act due to increasing market dominance.
• American Electric Power Company Inc: Partnership announced between Japan's SoftBank Group (SB Energy) and AEP to build a 10-gigawatt AI server warehouse and 9.2-gigawatt gas plant in Ohio, supported by $33.3 billion from Japan.
• Berkshire Hathaway Inc: Tokio Marine Holdings to form a strategic partnership by selling a 2.49% stake to Berkshire Hathaway, aiming for increased risk capacity and global joint investments.
• Blackstone Inc: Its flagship private credit fund (BCRED) recorded its first monthly loss in over three years (0.4% in February) amid investor concerns over liquidity strains.
• Coca-Cola Co: SLMG Beverages (largest Indian bottler) may raise prices due to rising packaging costs from the Middle East conflict and fierce competition from Campa cola.
• EyePoint Inc & Ocular Therapeutix Inc: EyePoint sued Ocular Therapeutix for allegedly spreading false/misleading information about EyePoint and its experimental eye drug Duravyu.
• Faraday Future Intelligent Electric Inc: The U.S. SEC concluded its investigation into the company with no action, which is expected to aid financing efforts.
• Intuit Inc: A U.S. appeals court overturned an FTC order prohibiting TurboTax from advertising its software as "free" when many users don't qualify, citing constitutional separation of powers.
• Palantir Technologies Inc: The Pentagon will make Palantir's Maven AI system an official program of record, securing its long-term use and funding across the U.S. military.
• Super Micro Computer Inc: Co-founder Yih-Shyan Liaw resigned from the board following his arrest by the U.S. Justice Department for allegedly smuggling AI chips to China.
• Synopsys Inc: Activist investor Elliott Investment Management acquired a multi-billion-dollar stake, intending to push the company to improve sales and margins.
• Tesla Inc: Elon Musk confirmed plans for SpaceX and Tesla to build two advanced chip factories in Austin for cars/robots and space AI data centers, aiming for 1 terawatt of annual computing capacity.
• United Airlines Holdings Inc: Is cutting approximately 5% of planned capacity for the next two quarters in anticipation of prolonged high jet fuel prices from the Iran war.

REUTERS OPEN INTEREST

• Trump's Iran war oil shield is cracking: Bousso: America's oil wealth is proving insufficient to insulate the country from the energy shock caused by the Iran war.

ANALYSTS' RECOMMENDATION

• Arthur J. Gallagher & Co: Jefferies cut target price to $239 from $280 due to weakening global property insurance pricing.
• EQT Corp: Jefferies raised target price to $76 from $71, citing strong cost advantage and steady cash flow.
• Mattel Inc: Jefferies cut target price to $18 from $19, flagging near-term margin pressure from higher input and tariff costs.
• PG&E Corp: Jefferies cut target price to $19 from $20, citing reduced confidence in wildfire-liability reform.