The S&P 500 futures have fallen by 4 points, the Nasdaq 100 futures by 49 points, and the Dow Jones Industrial Average futures by 31 points. The morning shows a negative trend, with declines in some major companies and concerns about US trade policy affecting the market.
Treasury bonds are seeing more activity, with the 10-year yield down to 4.33% and the 2-year yield down to 3.98%.
Today's key economic release is the PCE Price Indexes at 8:30 ET, the Federal Reserve's preferred measure of inflation.
Lululemon Athletica (LULU, Financial) shares are down 11.5% after surpassing earnings expectations but offering lower-than-expected guidance for Q1 and FY26.
Oxford Industries (OXM, Financial) is down 12.1%, despite beating earnings and revenue estimates, due to weaker guidance for future earnings and revenue.
Braze (BRZE, Financial) is up 10.6% after beating earnings and revenue expectations and announcing the acquisition of OfferFit, an AI decision-making company, for $325 million. The deal is expected to close by July 31.
Dutch Bros (BROS, Financial) slightly fell by 0.6% as it revealed plans to launch a new line of packaged coffee products with Trilliant Food & Nutrition and reiterated its growth strategy, expecting a +4.6% increase in Q1 same-shop sales.
Today's News
Intel (INTC, Financial) has successfully completed the sale of its NAND memory technology and manufacturing business to SK hynix, receiving approximately $1.9 billion. This transaction, part of a larger $9 billion deal, marks the final phase of Intel's strategic shift away from its NAND business, with the first closing having occurred in December 2021. The sale included Intel’s NAND memory fabrication facility in Dalian, China, and other related assets.
Shares of Lexicon Pharmaceuticals (LXRX, Financial) saw a substantial 95% increase in premarket trading after announcing an exclusive license agreement with Novo Nordisk (NVO, Financial) to develop its obesity candidate LX9851. Under this agreement, Lexicon will receive $75 million in upfront payments, with potential milestone payments reaching up to $1 billion. This deal allows Novo Nordisk to globally develop, manufacture, and commercialize LX9851, expanding its portfolio in obesity treatments.
In the automotive sector, President Trump's announcement of a 25% tariff on imported vehicles and parts, effective April 2, has caused significant concern. These tariffs are expected to impact supply chains that have been integrated globally over decades, especially affecting trade with Canada and Mexico. The car industry is now facing challenges in tracking the origin of parts and adapting to this new regulatory environment.
Amazon (AMZN, Financial) is planning to extend its Prime Day event to four days in 2025, according to an internal memo. The decision aims to provide more shopping time and increase sales opportunities for third-party sellers. Amazon's 2024 Prime Day generated a record-breaking $14.2 billion, highlighting the event's growing importance in the retail calendar.
CoreWeave (CRWV, Financial) has adjusted its IPO pricing to $40 per share, below its previous estimate, raising $1.5 billion by selling 37.5 million shares. The company, an AI hyperscaler, plans to close the offering by March 31, 2025. This move reflects a strategic downsizing from its initial expectations, aiming to attract investors amidst a competitive market.
The European Medicines Agency has declined to endorse Eli Lilly's (LLY, Financial) Alzheimer's drug Kisunla, citing concerns over its risk-benefit profile. Despite FDA approval in the U.S., the EMA's decision highlights the challenges of gaining regulatory acceptance in Europe due to potential adverse effects.
Elliott Investment Management has taken a significant short position in Shell (SHEL, Financial), worth approximately $1.1 billion. This marks the largest short position against Shell in nine years, raising questions about the hedge fund's strategy, especially as it also holds a notable stake in BP.
GuruFocus Stock Analysis
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- Applied Materials Climbs After Jefferies Upgrade to "Buy", Sees 32% Upside by Nauman khan
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