Closing Stock Market SummaryThe S&P 500 rose 1.4% on Monday in a rebound rally led by the value/cyclical stocks. The Dow Jones Industrial Average (+1.8%) and Russell 2000 (+2.2%) outpaced the benchmark index following poor performances last week, while the Nasdaq Composite (+0.8%) gained 0.8%.
The market really gained traction early in the session after the S&P 500 reclaimed its 50-day moving average (4184), which has acted as a strong measure of support over the past 14 months. Given this observation, and the lack of market-moving news, the bullish price action likely fed onto itself and stirred a fear of missing out on a technically-driven rally.
All 11 S&P 500 sectors and all 30 Dow components finished in positive territory, with the biggest gains scored in the cyclical sectors that sold off last week -- energy (+4.3%), financials (+2.4%), industrials (+2.2%), and materials (+2.1%). The consumer discretionary sector (+0.5%) increased the least with a modest gain.
Bank stocks showed notable strength, as the Treasury yield curve unwound some of last Friday's flattening activity. The SPDR S&P Bank ETF (KBE 51.42, +1.73, +3.5%) gained 3.5% after declining 7.6% in the prior two sessions.
The 10-yr yield increased three basis points to 1.48%, while the 2-yr yield decreased one basis point to 0.25%. The U.S. Dollar Index declined 0.4% to 91.86, providing some relief for commodities like WTI crude ($73.64/bbl, +1.97, +2.8%) and copper ($4.184/lb, +0.03, +0.6%).
Apple (AAPL 132.30, +1.84, +1.4%) and Microsoft (MSFT 262.63, +3.20, +1.2%) stealthily advanced more 1.0%, with MSFT setting a record high in the process. Semiconductor companies NVIDIA (NVDA 737.09, -8.46, -1.1%) and Advanced Micro Devices (AMD 82.59, -2.06, -2.4%) struggled on reports that retail prices have declined sharply in Europe.
Mid-cap companies FIGS (FIGS 42.61, +6.21, +17.1%) and ZipRecruiter (ZIP 23.51, +2.25, +10.6%) rallied on positive-minded analyst recommendations.
Investors did not receive any economic data on Monday. Looking ahead, investors will receive Existing Home Sales for May on Tuesday.
- Russell 2000 +15.8% YTD
- S&P 500 +12.5% YTD
- Dow Jones Industrial Average +10.7% YTD
- Nasdaq Composite +9.7% YTD
Early premarket gappers
- Gapping up:
- RAVN +48.6%, MNOV +43.6%, RFL +7.3%, IAG +3.8%, ALBO +2.5%, AMBA +2.4%, BHP +2.3%, PSTH +2.2%, GDX +2.1%, GOLD +2.1%, NEM +2%, EGY +1.3%, GLD +1.2%, FCX +1%, SLV +0.9%, BA +0.7%, WLK +0.7%
- Gapping down:
- TBPH -11.3%, AHT -5.7%, CLII -3.5%, VXX -3.1%, HNST -2.3%
Gapping down
News:
- AHT -7.5% (Ashford Hospitality Trust and Seven Knots entered into a common stock purchase agreement)
- TBPH -6.3% (announces top-line results from phase 2 study of nezulcitinib in patients hospitalized with acute lung injury due to COVID-19; study did not meet the primary endpoint)
- VXX -3.1% (trading lower with rebound in futures)
- RIDE -1.2% (High level execs at RIDE sold stock prior to company's problems were revealed, according to WSJ)
- IR -0.7% (acquires Seepex GmbH for €431.5 mln)
Analyst comments:
- ARCT -4.2% (downgraded to Underweight from Equal Weight at Barclays)
- PHG -0.5% (downgraded to Hold from Buy at HSBC Securities)
Gapping up
Select metals/mining stocks trading higher:
- IAG +2.2%, GDX +1.8%, BHP +1.7%, GOLD +1.3%, GLD +1.2%, SLV +1.1%, NEM +1%, .
Other news:
- MNOV +50.5% (announces positive results from phase 2 trial of MN-166 in alcohol use disorder published in Nature's Translational Psychiatry Journal)
- RAVN +49.3% (Raven Industries to be acquired by CNHI for $58.00 per share)
- TRCH +40% (strength attributed to speculation on Reddit forums)
- ENOB +16.7% (acquires exclusive license for potential pan-coronavirus and pan-influenza inhaled treatment and prevention technology)
- RFL +8.4% (enters strategic merger with Rafael Pharmaceuticals)
- AVXL +7.7% (reports predictive biomarker of response established with SIGMAR1 mRNA expression correlates significantly with responses in primary clinical efficacy endpoints from the U.S. Phase 2 randomized, double-blind, placebo-controlled trial of ANAVEX2-73 in adult female patients with Rett syndrome)
- FULC +4.8% (Announces multiple presentations at the 28th Annual FSHD Society International Research Congress)
- ONE +4% (announced that Mr. Tuanwei Shi has tendered his resignation as chief technology officer due to personal reasons, effective June 17)
- TNXP +3.3% (announces program to develop TNX-102 SL for the treatment of long COVID syndrome, also known as post-acute sequelae of COVID-19)
- ALBO +2.6% (reports expanded Phase 3 data on Bylvay)
- AMBA +2.4% (announced the expansion of its AI vision SoC portfolio with the new CV5S and CV52S security families)
- VIR +2.1% (Vir Biotechnology and GSK (GSK) announce continuing progress of the COMET clinical development program for Sotrovimab)
- ARWR +1.6% (Arrowhead and Horizon Therapeutics (HZNP) collaborate to develop RNAi Therapeutic for uncontrolled gout)
- PSTH +1.3% (Pershing Square Tontine Holdings acquires 10% of Universal Music Group from Vivendi (VIVHY) for ~$4 bln)
- EGY +1.3% (appoints Ronald Bain as CFO)
- GME +1.3% (appoints Matt Furlong to the Company's Board of Directors effective immediately)
Analyst comments:
- FIGS +3.5% (initiated with an Outperform at Oppenheimer, among others)
- ZIP +3.2% (initiated with a Buy at Goldman)
Axiata and Telenor to merge Malaysian mobile groups in $12bn deal
Agreement comes after the pair abandoned plan to combine regional operations 2 years ago
Malaysia’s Axiata and Norway’s Telenor have agreed to merge their mobile telecommunications operations in the south-east Asian country, creating a $12bn entity that will seek to capture rising demand for digital services.
The deal, announced on Monday, comes two years after the pair abandoned plans to merge their regional operations in a deal that would have created the biggest telecoms operator in south-east Asia.
Under the agreement, the two groups will each own 33.1 per cent in the merged business, which will be valued at nearly RM50bn ($12bn). The companies said the new entity, which is set to be listed in Kuala Lumpur, would seek to capture the increasing demand for digital services in Malaysia. The country aims to start the rollout of 5G connectivity by the end of this year.
The deal, which is subject to regulatory and shareholder approval, is expected to be completed by the second quarter of 2022.
“With this merger we bring together competencies, financial strength and scale to go beyond connectivity and implement technology that further advances our customers’ digital experience,” said Jorgen Rostrup, executive vice-president and head of Asia at Telenor.
With an estimated 19m customers, the merged entity is expected to generate earnings before interest, tax, depreciation and amortisation of RM5.7bn and a profit after tax of RM1.9bn, the companies said.
“Assuming a smooth transition [and] post integration period, we are expecting to see improvement in ebitda and cash flow margins in the combined entity in step with our ongoing commitment to maximise dividend payout for our shareholders,” said Izzaddin Idris, president and group chief executive at Axiata.
Under the agreement, Axiata will transfer full ownership of its mobile operator Celcom to Digi, Telenor’s Malaysian unit, for nearly RM18bn, which will be settled via new shares and RM1.7bn in cash from Digi and nearly RM300m in cash from Telenor, according to an Axiata exchange filing on Monday.
The filing said the deal would “protect Malaysia’s national interests with Axiata and key Malaysian institutional shareholders” set to own more than 51 per cent of the merged entity.
Shares in Axiata were 2.2 per cent lower on Monday following the deal’s announcement.
Two years ago, the companies blamed the ending of merger talks on “complexities”. The collapse of the plan came after then Malaysian prime minister Mahathir Mohamad voiced concerns about potential job losses at Khazanah Nasional. The sovereign wealth fund, which he previously chaired, is Axiata’s main shareholder.
More than 41,000 people have signed petitions to stop Jeff Bezos from returning to Earth after his trip to space next month
- Two petitions aiming to prevent the Amazon CEO's re-entry to Earth after his Blue Origin spaceflight have collected thousands of signatures in only 10 days.
- Petitions to stop Jeff Bezos' Earth re-entry collected more than 41,000 signatures between them.
- The one with the most signatures is entitled: "Do not allow Jeff Bezos to return to Earth."
- Bezos will fly into space on July 20 for Blue Origin's first human flight of New Shepard rocket.
More than 41,000 people have signed petitions calling to stop Jeff Bezos from returning to Earth after he blasts into space next month.
Bezos, founder of space-exploration firm Blue Origin, said on June 7 that he and his brother Mark Bezos will fly into space aboard the New Shepard rocket on July 20 - the company's first human flight.
Three days after Bezos' announcement, two petitions were launched to try and prevent the billionaire's re-entry to Earth. They have both garnered thousands of followers in just 10 days.
More than 23,000 people have signed one Change.org petition titled: "Do not allow Jeff Bezos to return to Earth."
"Billionaire's should not exist...on earth, or in space, but should they decide the latter they should stay there," the petition's description said.
Some signatories gave a reason for signing the petition, which included comments such as "being let back into Earth is a privilege - not a right," and "Earth don't want people like Jeff, Bill [Gates], Elon [Musk] and other such billionaires."
Another petition, called "Petition To Not Allow Jeff Bezos Re-Entry To Earth," has accumulated more than 18,000 signatures and is quickly increasing.
Jose Ortiz, who set up the petition, said in the description that Bezos is "an evil overlord hellbent on global domination."
"The fate of humanity is in your hands," Ortiz also wrote.
Both petitions are aiming to get 25,000 signatures, making them two of the top signed petitions on Change.org, according to the website.
Bezos will take an 11-minute flight to the edge of space alongside his brother and the winner of the Blue Origin auction for a seat in the New Shepard spacecraft, which sold for $28 million. They'll be strapped into a dome-shaped capsule, which sits on top of the rocket booster.
Once New Shepard reaches the Kármán line - an imaginary boundary 62 miles (100 kilometers) above the Earth's surface - the capsule will separate from the booster, reenter the atmosphere, and float back down to Earth with the help of parachutes.
"I want to go on this flight because it's a thing I wanted to do all my life. It's an adventure - it's a big deal for me," Bezos said in a video posted to Instagram on June 7.
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Morrison (MZP TH) +17%
- CD&R’s Rejected $7.6 Billion Morrison Bid May Be Just a Start
- Reckitt (3RB TH) +2%
- Imperial Brands (ITB TH) +2%
- BAT (BMT TH) +1.8%
- Vodafone (VODI TH) +1.7%
- Polymetal (PM6 TH) +1.7%
- Gold Steadies After Posting Biggest Weekly Loss in 15 Months
-
BHP Group PLC (BIL TH) +1.4%
- Watch European Mining Stocks as Copper Extends Fall, Iron Drops
- Tomra (TMR TH) +1.3%
- Salmar (JEP TH) +1.3%
- Games Workshop (G7W TH) +1%
- HSBC (HBC1 TH) -1.8%
- TUI (TUI1 TH) -1.8%
- U.K. Travel Travel Chiefs Set to Challenge Warning of Fourth Lockdown
-
Prosus (1TY TH) -1.9%
- Prosus FY Revenue $5.1B Vs. $3.33B Y/y
- Nokia (NOA3 TH) -1.9%
- Airbus (AIR TH) -2%
- Royal Mail (RYE TH) -2.5%
- Stellantis (8TI TH) -2.8%
- Glencore (8GC TH) -3.4%
- Norsk Hydro (NOH1 TH) -3.4%
- 3i (IGQ5 TH) -4%
DAX:
- Allianz (ALV TH) -0.7%
- Continental (CON TH) -1.5%
- Daimler (DAI TH) -1.6%
- Deutsche Post (DPW TH) -1.7%
- SAP (SAP TH) -1.8%
- Fresenius Medical (FME TH) -1.9%
MDAX:
- Hochtief (HOT TH) +0.9%
- Airbus (AIR TH) -2%
- Hella (HLE TH) -2.2%
- Hugo Boss (BOSS TH) -2.4%
- Varta (VAR1 TH) -3.1%
SDAX:
- Salzgitter (SZG TH) +0.7%
- Kloeckner (KCO TH) +0.7%
- Home24 (H24 TH) -1.8%
- Norma (NOEJ TH) -1.8%
- Sixt (SIX2 TH) -2.4%
- LPKF (LPK TH) -2.7%
Stocks slid Monday and Treasury yields fell as traders soured on the reflation trade in the wake of a hawkish pivot by the Federal Reserve. The dollar remained at about a two-month high.
Japan led the Asian equity weakness, with the Nikkei 225 down as much as 4%, while European and U.S. stock futures declined. Treasury yields retreated, taking the 30-year rate below 2% for the first time since February, as the prospect of less accommodative U.S. monetary policy buffeted markets.
The Treasury yield curve continued to flatten, unwinding one of this year’s dominant reflation bets. Short-maturity yields surged after Fed official James Bullard said inflation risks may warrant higher interest rates next year, an earlier liftoff than penciled in by many of his colleagues.
Gold stabilized after slumping last week. Oil climbed above $72 a barrel as talks between world powers and Iran dragged on, potentially delaying the return of the latter’s energy exports.
Nikkei -3,39% Hang Seng -1,32% CSI -0,57% Shanghai -0,22% Shenzen +0,36%
Eur$ 1.1848 CNH 6,4782 CNY 6,47 JPY 109,78 GBP 1,3787 CHF 0,9228 RUB 72,7969 TRY 8,7730 WTI$ 72,06 Gold 1,774,45 BTC 34,700 +120 ETH 2,150 +25
S&P -0,39%% Nasdaq -0,18% EuroStoxx -0,81%% FTSE -0,82% Dax -0,78% SMI -0,74%
Macro :
Macro :
- U.K. Housing Market Slows, Propped Up by People Leaving London
- Morgan Stanley Sees Oil-Drilling Budgets Expanding Through 2024
- Morgan Stanley Sees Oil-Drilling Budgets Expanding Through 2024
- Taper No Grounds for Tantrum to Stock Bulls Wielding $28 Billion
- U.K. Signals Overseas Travel Limits Will Remain as Covid Spreads
- Bitcoin Drops as Hashrate Declines With China Mining Crackdown
- Iran Says It Needs Guarantee U.S. Won’t Quit Nuclear Deal Again
Keep an eye on :
Keep an eye on :
- AIR FP : Boeing Says Continuing to Work on 787 Certification Delay
- AMBUB DC : Ambu Gets FDA Clearance of Single-Use Bronchoscope System
- BBVA SM : BBVA Looking to Sell Depositary Subsidiary for EU400M: Expansion
- BAVA DC : Bavarian Nordic May Sell Its Covid Vaccine Candidate, JP Reports
- CLOUD NO : Cloudberry Clean Energy to Issue as Many as 2.8M Shares
- CNHI IM : CNH Industrial Agrees to Buy Raven Industries for $58/Share
- DBK GY : Deutsche Bank Wants U.K. Grads Back in the Office: Insider
- ELM LN : Positive article in the Barrons, cited as potential takeover target after having reject already 2 recents approach
- ALEMG FP : Roturier Family Cuts Euromedis Stake to 4.69% of Capital: AMF
- GALP PL : Portugal’s ENSE Says Gasoline Consumption Rose 28% in May
- HOC LN : Hochschild Mining Announces Fatal Transport Accident in Peru
- ISP IM : Intesa, Tinexta Announce Partnership to Support Italian SMEs
- JUVE IM :Juventus May Need New Capital Injection, Sole Reports
- JUVE IM :Juventus May Need New Capital Injection, Sole Reports
- LHA GY : Lufthansa Plans About 190 Weekly U.S.-Europe Flights From July
- MRW LN : CD&R Considers 5.5 Billion-Pound Bid for Morrisons, Sky Reports
- MRW LN : CD&R’s Rejected $7.6 Billion Morrison Bid May Be Just a Start
- ONTEX BB : Ontex Sees Stable 2021 LFL Revenue With Return to Growth From 2Q
- PID FP : Paragon ID Acquires Security Label; Terms Not Disclosed
- PENNEO DC : Penneo to Move to Nasdaq Copenhagen Main Market; Raise Capital
- PEUG FP : Peugeot Freres to Split CEO and Chairman Roles
- PAH3 GY : Porsche to Make High-Performance Battery Cells in New Venture
- PSM GY : RTL May Position as Alternative for ProSieben: DealReporter
- RTL LX : RTL May Position as Alternative for ProSieben: DealReporter
- SPIE FP : Spie to Buy Wiegel Gebäudetechnik; No Terms
- TEL NO : Axiata, Telenor Said to Ink $11 Billion Deal for Malaysia Tie-up
- VIV FP : Ackman SPAC to Pay $4 Billion for Vivendi Universal Music Stake
- VIV FP : Loeb Builds Vivendi Stake at Crunch Time for Bollore’s Empire
- VONN SW : Vontobel Expects to Post Higher 1H Profit vs Last Year