Morning News Call

TOP NEWS

• Unilever and McCormick in advanced talks to merge food businesses, potentially creating a $60 billion company.
• Big Tech's $635 billion AI spending faces energy shock test due to Middle East crisis and rising energy costs, per S&P Global.
• Private lenders delaying loan defaults with payment concessions, signaling stress in the private credit sector.
• US to seek WTO alternatives after e-commerce duty moratorium not renewed, limiting WTO's global trade role.
• Fed's Williams states current monetary policy is well-positioned for challenges and likely higher near-term inflation.

BEFORE THE BELL

• U.S. stock index futures: Higher, on potential de-escalation in Middle East. Investors await U.S. consumer confidence, job opening data, and Nike results.
• Gold: Rose, but gains limited by stronger dollar as safe haven amid Middle East war, boosting inflation fears and hawkish policy bets.
• Oil: Prices up in volatile trading.
• Global markets: European shares gained but Mideast war concerns kept benchmark on track for sharpest monthly decline since 2022. Japan's Nikkei fell for fourth straight day, worst month since 2008. Chinese stocks also ended lower, worst monthly loss since early 2022.

STOCKS TO WATCH

• Allbirds Inc: American Exchange Group to buy assets for $39 million; Allbirds to dissolve and wind down.
• Alphabet Inc & Meta Platforms Inc: Indonesia summoned companies for non-compliance with child social media restrictions. Australia also investigating platforms for similar breaches.
• Blackstone Inc: Sold Fidere residential portfolio in Spain for $1.4 billion to Brookfield. Considering Canary Wharf skyscraper for London HQ.
• Chevron Corp: Wheatstone LNG plant in Australia extensively damaged by cyclone; both production trains offline for weeks.
• Constellation Energy Corp: Forecast annual profit below estimates; increased share buyback authorization to $5 billion.
• Exxon Mobil Corp: Union workers at Baton Rouge plant ratified new four-year contract with pay increases.
• General Motors Co: Idling Detroit EV plant until April 13, extending downtime to align production with market demand.
• JPMorgan Chase & Co: Plans significant increase in small business loans ($80 billion over 10 years) and expand coaching program.
• McCormick & Company Inc: Unilever in advanced talks to merge food business with McCormick; Unilever shareholders to retain 65% stake in combined entity.
• T-Mobile US Inc & Verizon Communications Inc: Judge blocked T-Mobile's "Save Over $1,000" ads due to false advertising claims by Verizon.
• Unilever PLC: Implemented global hiring freeze for at least three months due to Middle East conflict's impact on global trade and energy costs.
• Yum! Brands Inc: Collins Foods to hand over 20 Taco Bell restaurants in Australia to a Yum Brands affiliate and close the rest, exiting the business.

ANALYSIS

• US tech stocks struggle for safe haven appeal in Iran market fallout, posing a problem for the broader U.S. stock market.

ANALYSTS' RECOMMENDATION

• Phreesia Inc: JPMorgan lowers rating to neutral from overweight.
• Terns Pharmaceuticals Inc: Truist Securities cuts rating to hold from buy.
• Amphenol Corp: Jefferies assumes coverage with buy rating.