Morning News Call

TOP NEWS

• U.S. Federal Reserve to update outlook, debating Iran conflict's impact on growth, inflation, or both.
• European publishers and tech firms urge EU to fine Google over search favoritism.
• Meta planning sweeping layoffs, potentially 20%+, to offset AI infrastructure costs.
• U.S. and China near managed trade, agriculture deals in Paris ahead of Xi-Trump summit.
• Warner Bros' Oscar win overshadowed by looming $110 billion sale to Paramount Skydance.

BEFORE THE BELL

• U.S. stock index futures edged higher, Meta shares led gains, but crude prices tempered risk appetite.
• Dollar retreated from 10-month highs amid central bank meetings and U.S.-Israel war on Iran.
• Gold prices slipped on concerns rising oil could fuel inflation, prompting hawkish central banks.
• Europe’s STOXX 600 edged lower due to Middle East war economic fallout.
• Nikkei closed lower for third straight session on geopolitical tensions, rising energy prices, and weaker yen.

STOCKS TO WATCH

• Alphabet Inc: EU antitrust regulators urged to speed up Google search favoritism probe and impose fine.
• American Airlines Group Inc, United Airlines Holdings Inc, Delta Air Lines Inc & Southwest Airlines & Co: CEOs urged Congress to end 29-day partial government shutdown, citing TSA absences.
• Apple Inc: MacBook Neo, starting at $499 for students, is most repairable laptop since 2014, targeting education market.
• Bain Capital Specialty Finance Inc: Australia's Perpetual Limited agreed to sell wealth management to Bain Capital for $350 million.
• Berkshire Hathaway Inc: CEO Greg Abel awarded $22 million compensation; firm repurchased over $200 million of its own stock after nearly two years.
• Citigroup Inc: Most UAE branches and offices closed until further notice due to Iran war security conditions, Mall of Emirates branch on reduced hours.
• Hon Hai Precision Industry Co Ltd (Foxconn): Expected strong revenue growth for Q1 and full year, despite a 2% fall in quarterly profit due to tax rate hike; strong AI server demand.
• Meta Platforms Inc: Planning sweeping layoffs (20% or more) to offset AI infrastructure costs and prepare for AI-assisted efficiency.
• Micron Technology Inc: Plans second Taiwan manufacturing facility at Tongluo site to expand DRAM products and HBM supply for AI demand.
• Tesla Inc: Elon Musk stated Terafab AI chip project launches in seven days; company partnering with TSMC and Samsung for AI chips.
• Unicredit SPA: Launching unsolicited offer to increase Commerzbank stake to over 30% to push for merger talks.
• Warner Bros Discovery Inc: Oscar triumph clouded by pending $110 billion sale to Paramount Skydance, reshaping Hollywood.

REUTERS OPEN INTEREST

• U.S. quickly exhausting tools to absorb Iran war oil shock, raising risk of deeper global economic slowdown.

ANALYSTS' RECOMMENDATION

• Brunswick Corp: JPMorgan raises target price to $78 from $73 due to strong early season demand.
• Ecolab Inc: Berenberg raises target price to $326 from $300 following 10-14% price increases.
• Royal Caribbean Cruises Ltd: JPMorgan raises target price to $376 from $371 citing strong demand and revenue growth.
• Summit Therapeutics Inc: Jefferies cuts target price to $15 from $42 due to significant uncertainty around 2026 clinical and regulatory catalysts.

ECONOMIC EVENTS (All timings in U.S. Eastern Time)

• 0830 NY Fed Manufacturing for Mar: Expected 3.25; Prior 7.10
• 0915 Industrial production MM for Feb: Expected 0.1%; Prior 0.7%
• 0915 Capacity utilization SA for Feb: Expected 76.2%; Prior 76.2%
• 0915 Manufacturing output MM for Feb: Expected 0.1%; Prior 0.6%
• 0915 Industrial production YY for Feb: Prior 2.28%
• 1000 NAHB Housing Market Index for Mar: Expected 37; Prior 36

CORPORATE EVENTS (All timings in U.S. Eastern Time)

• 0800 Dollar Tree Inc: Q4 earnings conference call

EX-DIVIDENDS

• American International Group Inc: $0.45
• AMETEK Inc: $0.34
• Broadridge Financial Solutions Inc: $0.97
• DTE Energy Co: $1.16
• Extra Space Storage Inc: $1.62
• Iron Mountain Inc: $0.86
• Johnson Controls International PLC: $0.4
• Leidos Holdings Inc: $0.43
• Merck & Co Inc: $0.85
• Meta Platforms Inc: $0.52
• Meta Platforms Inc: C$0.02
• Nasdaq Inc: $0.27
• Paramount Skydance Corp: $0.05
• Public Storage: $3
• T Rowe Price Group Inc: $1.3
• TKO Group Holdings Inc: $0.78