Morning News Call

TOP NEWS

• NHTSA deepens probe into Tesla's driver-assistance system: U.S. auto safety regulator deepened probe into Tesla's driver-assistance system. Evaluating effectiveness in identifying degraded road conditions after nine crashes, including one fatal.
• EXCLUSIVE-DOJ antitrust head says Paramount–Warner Bros deal review is not political: DOJ antitrust head states Paramount Skydance's proposed acquisition of Warner Bros Discovery will not get fast-track approval due to political factors.
• EXCLUSIVE-Airbus seeks Pratt & Whitney damages over engine delays, sources say: Airbus is pursuing potential damages from Pratt & Whitney due to late engine shipments, impacting aircraft production.
• Hegseth wants Pentagon to dump Anthropic's Claude, but military users say it's not so easy: Pentagon staffers reluctant to give up Anthropic’s AI tools, viewing them as superior, despite orders to remove them.
• Apple's China smartphone sales jump 23% to start 2026, bucking industry trend: Apple's China smartphone sales surged 23% in early 2026, contrasting a broader market decline caused by Android makers raising prices due to chip costs.

BEFORE THE BELL

• U.S. stock index futures: Down as oil prices surged amid Middle East tensions, fueling inflation concerns and expectations of cautious Fed rate cuts.
• Gold: Prices fell to over one-month low, weighed by higher Treasury yields and a hawkish Fed outlook.
• Dollar: Held steady.
• European shares: Edged lower as Middle East tensions dampened risk appetite; investors awaited ECB policy decision.
• Nikkei: Dropped, and yen remained fragile after Bank of Japan kept key rate unchanged.
• Economic calendar: Labor Department’s weekly jobless claims report due. Initial claims expected to rise by 2,000 to 215,000 for week ended March 14.

STOCKS TO WATCH

• Alphabet Inc: Google developing new search controls for websites to opt out of generative AI features; proposed "less intrusive" switch for default search engine.
• Apple Inc: China smartphone sales jumped 23% in early 2026, driven by e-commerce discounts and state subsidies; positioned to absorb memory chip costs better than rivals.
• Boeing Co: FAA permitted Boeing to advance 777-9 jet into fourth phase of certification testing; program is six years behind schedule.
• Constellation Energy Corp: Selling $5 billion portfolio of PJM generation assets to LS Power to meet regulatory commitments for Calpine acquisition.
• Exxon Mobil Corp: Shipping record oil products to Australia from U.S. in March, filling supply gap from Asia due to Iran conflict.
• HSBC Holdings PLC: Weighing deep job cuts (around 20,000 roles) over several years, particularly in non-client facing roles, betting on AI.
• Kraft Heinz Co: Held talks with Unilever about merging parts of their food businesses, but discussions ended.
• Micron Technology Inc: Shares dropped pre-bell as increased capex spending unnerved investors, despite strong AI-fueled earnings; boosting 2026 capex by $5 billion.
• Nasdaq Inc: SEC approved Nasdaq proposal for tokenized trading of certain stocks, integrating blockchain-based settlements.
• Netflix Inc: Planning a "KPop Demon Hunters" world tour after the movie's Oscar win and record-breaking streaming success.
• Nexstar Media Group Inc & Tegna Inc: Eight states filed suit to block Nexstar's proposed $3.54 billion acquisition of Tegna, citing potential price increases and job cuts.
• Novo Nordisk A/S: India's market for diabetes/weight-loss drugs set for shake-up as semaglutide patent expires, triggering wave of cheaper generics.
• Paramount Skydance Corp & Warner Bros Discovery Inc: DOJ antitrust head states deal review will not be fast-tracked; California AG also probing transaction.
• RTX Corp: Airbus is seeking damages from Pratt & Whitney over late engine shipments, contributing to grounded jets and production struggles.
• Tesla Inc: NHTSA deepened probe into Tesla's driver-assistance system after 9 crashes (1 fatal), focusing on its ability to detect degraded road conditions.
• Victory Capital Holdings Inc & Janus Henderson Group PLC: Janus Henderson clients and staff urge rejection of Victory Capital's takeover bid, favoring lower-priced Trian-led offer due to concerns.
• Volkswagen AG: Lamborghini (VW-owned) reported weaker 2025 earnings despite record revenue, impacted by U.S. tariffs, currency moves, and charges related to scrapping EV plans.

ANALYSIS

• Investors face cloudier Fed rate view as Iran war grips markets: Middle East conflict creates uncertain U.S. monetary policy outlook for Fed, already battling inflation and uneven labor market.

ANALYSTS' RECOMMENDATION

• Constellation Energy Corp: JP Morgan cuts target price to $400 from $410 after PJM generation assets sale.
• Five Below Inc: Jefferies raises target price to $223 from $210 after strong Q4 sales/profit forecast.
• General Mills Inc: Jefferies cuts target price to $37 from $42, foreseeing slower recovery after Q3 sales decline.
• Kinsale Capital Group Inc: Jefferies cuts target price to $312 from $392, citing slowing E&S growth, fading pricing, and margin pressure.