Morning News Call

TOP NEWS

• Trump says US may exit Iran war soon, signaling potential for talks and winding down conflict.
• Nike's turnaround faces new risks from Middle East unrest and struggles in China.
• Oracle begins layoffs affecting thousands of employees.
• Tesla's Q1 deliveries likely to dip sequentially due to softer EV demand and increased competition.
• Investor Artisan Partners backs Unilever's plan to sell its food unit to McCormick, focusing on core brands.

BEFORE THE BELL

• U.S. stock futures advanced on hopes of a swift end to the Iran war.
• Global equities rose: Europe's STOXX 600 jumped over 2%, Japan's Nikkei gained nearly 4%, China and Hong Kong stocks positive.
• Oil and dollar reversed earlier gains on optimism of an end to the war.
• Gold prices rose to their highest in nearly two weeks.
• Investors await U.S. retail sales data and ADP employment data.

STOCKS TO WATCH

• American Airlines Group Inc: Australia's regulator granted interim authorization for Qantas and American Airlines to continue trans-Pacific cooperation.
• AT&T Inc: Reached a deal to invest $1 billion to improve Commerce Department's FirstNet and achieve $1 billion in cost savings.
• Chevron Corp & Microsoft Corp: Entered an exclusivity agreement with Engine No. 1 for power generation and supply (no definitive agreement yet).
• Lululemon Athletica Inc & Nike Inc: Federal judge reversed a jury's verdict, ruling Nike's patent invalid in Lululemon infringement case, overturning $355,450 award.
• McCormick & Company Inc & Unilever Plc: Artisan Partners welcomed Unilever's decision to merge its food business with McCormick, creating a $65 billion company.
• Nike Inc: Forecast a surprise drop in fourth-quarter sales due to weakness in China and slow inventory clearance, stating turnaround is "taking longer".
• Oracle Corp: Laying off thousands of employees; 491 remote/Seattle employees affected effective June 1.
• Tesla Inc: New car registrations more than tripled in France and doubled in Nordic countries in March, indicating a sales recovery in Europe.

ANALYSIS

• Global first-quarter M&A exceeded $1.2 trillion, led by AI-related transactions.

ANALYSTS' RECOMMENDATION

• TD Synnex: Raymond James raises target price to $200 from $175 after strong Q1 results.
• Coca-Cola Co: Jefferies cuts target price to $88 from $90 due to input cost inflation and Middle East geopolitical conflicts.
• Constellation Brands: JPMorgan raises target price to $163 from $155 on better beer top-line/margins.
• Crowdstrike: Benchmark initiates coverage with buy rating and a $500 target price, citing leadership in cybersecurity.