Morning News Call

TOP NEWS

• Fed likely to hold rates steady; Iran conflict impacts policy debate.
• Meta repeatedly failed to stop illegal financial ads in Britain.
• Josh D'Amaro steps up as Disney's new CEO amid profound change.
• Nvidia gets Beijing's approval for H200 chip sales, adapting Groq chip for China.
• Amazon CEO expects AI to double AWS sales projections to $600 billion by 2036.

BEFORE THE BELL

• Global markets await Federal Reserve policy decision, focusing on economic projections and rate forecasts.
• Risk policymakers may no longer signal rate cuts this year.
• U.S. stock index futures edged higher, supported by oil price pullback.
• European shares rose for a third straight session.
• Dollar held steady, gold prices eased.
• Japan’s Nikkei surged on chip and AI-related stocks.
• South Korean shares jumped 5% after reform pledges.
• Producer prices data expected to show 0.3% rise in February.

STOCKS TO WATCH

• Advanced Micro Devices: Samsung and AMD expand partnership for AI memory chip supplies (HBM4) and potential foundry services.
• Aercap Holdings NV: Agreed to buy 100 Airbus A320neo-family jets; signed long-term lease for 48 LEAP 1A engines.
• Amazon.com Inc: Plans to sharply cut packages sent via U.S. Postal Service due to failed business terms.
• Boeing Co: Commercial airplane division expects profit in 2027, not this year, due to Spirit AeroSystems costs; Q1 operating margin loss expected; plans to increase 737 MAX production.
• BHP Group Ltd: Named Brandon Craig as next CEO, focusing on organic growth in copper, iron ore, potash, and coal.
• Delta Air Lines Inc, United Airlines Holdings Inc & Southwest Airlines Co: Reported stronger-than-expected spring travel demand, supporting higher fares despite rising jet fuel prices; raised Q1 revenue forecasts or reported record bookings.
• Inpost SA: Expected no change in core earnings this year after missing Q4 expectations; aims for mid- to high-teens parcel volume growth in 2026.
• KKR & Co Inc: KKR, Bain Capital, and others interested in Tokyo Electric Power's capital alliance plan.
• Meta Platforms Inc: Repeatedly failed to stop illegal high-risk financial ads on its platforms in Britain, per FCA review.
• Microsoft Corp: Considering legal action against OpenAI and Amazon over a $50 billion deal potentially violating exclusive cloud agreement.
• Nvidia Corp: Won Beijing's approval for H200 AI chip sales to China; preparing Groq AI chip version for Chinese market.
• Orasure Technologies Inc: Activist investor Altai Capital Management calls for a sale and board seats, citing potential for double current share price.
• Walt Disney Inc: Josh D'Amaro assumes CEO role; investors await strategy for AI era and managing impacts on tourism.

ANALYSIS

• Wall Street's bank capital victory in sight but hurdles remain: Banks poised for softer capital rules from Trump regulators, but technical and political challenges persist.

ANALYSTS' RECOMMENDATION

• Alto Neuroscience Inc: Baird raises target price to $41 from $22 due to high potential clinical catalysts (ALTO-300).
• Lululemon Athletica Inc: Barclays cuts target price to $161 from $203 after company forecast 2026 revenue and profit below estimates.