Here are the key news highlights essential for investors to kickstart their trading day:
1. Tech Sector Bounce Back
At the beginning of the trading week, stock markets saw an upswing driven by heightened investor interest in technology-related stocks. The Nasdaq Composite, which is heavily weighted towards tech companies, surged by 1.1%, while the S&P 500 registered a gain of approximately 0.7%. The Dow Jones Industrial Average also posted a modest increase of around 0.3%, mainly attributed to a rise in Walt Disney’s stock price.
Tesla’s shares experienced a remarkable 10% surge following an upgrade by Morgan Stanley analysts, who emphasized that Tesla should be considered not only an electric car manufacturer but also a technology company. Additionally, Qualcomm saw a nearly 4% boost after announcing its commitment to supply 5G modems for Apple iPhones until 2026. Stay updated with real-time market developments.
Charter Communications and Disney have resolved a dispute that lasted more than a week. The two sides are fighting for a deal that would give millions of Charter cable customers access to Monday Night Football on Disney’s ESPN. As part of the deal, Disney’s streaming services will support Disney+ and ESPN+ for customers who purchase select Spectrum TV packages.
David Faber first reported, Disney will charge a higher price than Charter. Allowing charter customers to access Disney’s ad-supported streaming app appears to be a sticking point in the negotiations; Charter’s CEO says that despite the agreement, this is different from the agreement, it will not provide access to all customers.
3. Dimon’s Notes
Proved that the US economy is improving beyond recessionary expectations. But JPMorgan CEO Jamie Dimon issued a warning Monday that it would be a “big mistake” to believe the good times will continue for long. “It’s a big mistake to say that a strong consumer base today means it’s going to be a good place next year,” he told a financial conference in New York.
Dimon said he’s most worried about the future. War in Ukraine and international governments “spending money like drunken sailors.” Last year, he expressed similar concerns about the central bank and the conflict in Ukraine, warning of a potential approaching “economic hurricane”.
4. Oracle Earnings
Oracle, shares fell 9% in after-hours trading after the company reported disappointing first-quarter earnings. The database software maker’s revenue also came in below expectations, but earnings per share beat expectations.
Oracle reported revenue of $12.45 billion, compared to analysts’ expectations of $12.47 billion, according to LSEG (formerly Refinitiv). Oracle said in its guidance that it expects second-quarter adjusted earnings per share to be between $1.30 and $1.34, with earnings rising 5% to 7%. Analysts from London Stock Exchange Group (LSEG) forecast adjusted earnings per share of $1.33, with revenue up 8% to $13.28 billion.
5. Sweet Deal
The name behind many of the most famous snack brands has a new owner. J.M. Smucker, known for its Jell-O, will buy Twinkie maker Hostess Brands for $5.6 billion, or $34.25 per share. Hostess shareholders will receive $30 in cash and 0.03002 Smucker shares for each Hostess share they own.
Smucker will also assume approximately $900 million of Hostess’ debt after the deal closes. Campbell’s Soup recently agreed to buy Rao’s pasta sauce owner Sovos Bands for $2.7 billion, M&M’s owner Mars bought Kevin’s Natural Foods, and Unilever bought frozen yogurt brand Yasso. With its acquisition, this is just one of the latest developments in the food industry.