Today's economic highlights
In the U.S., today’s focus is on the April PCE price index, along with data on household income and spending, wholesale inventories, the Chicago PMI, and consumer sentiment from the University of Michigan. In Europe, all eyes are on Germany’s May inflation figures for fresh signals on the ECB’s next moves. See the full agenda here.
- Dollar: 0.8808 EUR & 0.7411 GBP
- Bund/OAT spread: 67 points (-0.6%)
- VIX: 19.18 (-0.3%)
- Gold: $3,304
- Brent: $62.48
- 10-year US: 4.415%
- Bitcoin: $105,767
- American Eagle Outfitters announced Thursday a larger-than-expected quarterly loss due to rising production costs and weak demand, and lowered its revenue forecast for the second quarter.
- Boeing – The U.S. Department of Justice on Thursday asked a judge to dismiss fraud charges against the company related to two crashes involving 737 MAX aircraft that killed 346 people, saying it had reached a settlement with the planemaker. Separately, the U.S. Federal Aviation Administration (FAA) said Thursday it would extend for three more years a program allowing the company to perform certain tasks on the agency’s behalf, such as inspections, citing improvements made by the manufacturer.
- Chevron will lay off 200 employees in Texas, according to figures from the Texas Workforce Commission.
- Synopsys has instructed its staff in China to suspend services and sales in the country and stop accepting new orders to comply with new U.S. export restrictions.
- Ford – Executive Chairman Bill Ford warned Thursday that the U.S. government may eliminate production tax credits that support the manufacturing of electric vehicle batteries using Chinese technology.
- Dell raised its annual profit forecast Thursday, signaling growing demand for its servers equipped with powerful NVIDIA processors and artificial intelligence.
- Gap maintained its annual outlook after beating first-quarter sales expectations Thursday, driven by increased purchases at its Old Navy and Gap brands. The company’s stock is down 15% in premarket trading as investors worry about the impact of the trade war on its sales.
- Costco Wholesale missed analysts’ third-quarter revenue forecasts Thursday and said it had moved forward some product deliveries it planned to import this summer to reduce the impact of U.S. tariffs.
- Ulta Beauty raised its full-year profit forecast after reporting stronger-than-expected quarterly results Thursday, helped by reduced inventory losses and the launch of new brands such as Milk Makeup and K-Beauty, which boosted in-store demand.
- Marvell Technology is down 3.7% in premarket trading, with analysts citing limited visibility on the company’s outlook.
- Regeneron is down 13% in premarket trading after its experimental drug for patients with a type of lung disease failed in a late-stage trial.
- Tat Technologies – The U.S.-listed shares of the Israeli defense company are down 3.6% in premarket trading after a share sale by some shareholders.
- Wells Fargo announced Thursday it had signed an agreement to sell its railcar leasing business to a newly formed joint venture between railcar lessor GATX Corporation and Brookfield Infrastructure.
- AbbVie: Berenberg maintains a Hold rating and lowers the price target from $195 to $170.
- Akamai Technologies: Baptista Research keeps a Buy rating but cuts the price target from $110.90 to $99.
- API Group: Barclays maintains an Overweight rating and raises the price target from $48 to $55.
- CF Industries Holdings: Berenberg maintains a Hold rating and raises the price target from $80 to $84.
- Cloudflare: Baptista Research upgrades to Hold from Underperform and lowers the price target slightly from $181 to $178.
- Commercial Metals: JP Morgan initiates coverage with a Neutral rating and a $52 price target.
- Dropbox: Baptista Research maintains a Hold rating and raises the price target from $28.20 to $31.60.
- Elastic: Barclays keeps an Overweight rating but lowers the price target from $124 to $105.
- Emerson Electric: Barclays maintains an Underweight rating and raises the price target from $104 to $112.
- GE Vernova: Barclays maintains an Overweight rating and raises the price target from $427 to $500.
- Hamilton Lane: Goldman Sachs maintains a Sell rating and raises the price target from $136 to $139.
- Insulet: Baptista Research maintains a Hold rating and raises the price target from $298 to $352.
- Marriott International: Morgan Stanley maintains an Overweight rating and raises the price target from $267 to $282.
- Molson Coors Beverage: Baptista Research maintains a Hold rating and lowers the price target from $66.90 to $60.40.
- Monster Beverage: Baptista Research downgrades to Underperform from Hold but raises the price target from $60.40 to $66.90.
- Rockwell Automation: Barclays upgrades to Overweight from Equal Weight and raises the price target from $283 to $350.
- SharkNinja: Baptista Research upgrades to Buy from Hold, with a price target of $118.80.
- SLM Corp: Barclays maintains an Overweight rating and raises the price target from $34 to $38.
- Texas Roadhouse: Baptista Research downgrades to Underperform from Hold and cuts the price target from $198 to $184.60.
- Ulta Beauty: Deutsche Bank keeps a Buy rating and raises the price target from $485 to $489.
- Wynn Resorts: Morgan Stanley maintains an Overweight rating and raises the price target from $95 to $101.
- Zscaler: Deutsche Bank maintains a Buy rating and raises the price target from $230 to $300.