Intel announces agreement with Trump Administration for US govt to take a 9.9% stake (24.80 +1.30)
- Co announces agreement with the Trump Administration. The US government will make an $8.9 bln investment in Intel common stock. The government's equity stake will be funded by the remaining $5.7 bln in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 bln awarded to the company as part of the Secure Enclave program.
- Intel will continue to deliver on its Secure Enclave obligations and reaffirmed its commitment to delivering trusted and secure semiconductors to the US Dept of Defense.
- The $8.9 bln investment is in addition to the $2.2 bln in CHIPS grants Intel has received to date, making for a total investment of $11.1 bln.
- The government agrees to purchase 433.3 mln primary shares of Intel common stock at a price of $20.47 per share, equivalent to a 9.9% stake in the company.
Insider Trading: notable purchases -- CD&R Holdings adds to REZI; notable sales -- CEO/Chairman active in PLMR
Buyers:
- ASAN 10% owner bought 446,966 shares of Class A Common Stock pursuant to a Rule 10b5-1 trading plan worth approximately $6.1 mln.
- AVBC President & Chief Executive Officer bought another 6,671 shares at $14.9886 worth approximately $100K.
- BA Director bought 2,200 shares at $226.10 worth approximately $497K.
- DIN Chief Executive Officer and Chief Financial Officer bought 6,863 shares combined at $21.10 - $21.11 worth approximately $149K.
- ELV Director bought 1,200 shares at $312.06 - $312.19 worth approximately $375K.
- FIP Chief Financial Officer and Chief Accounting Officer bought 10,000 shares at $4.46 - $4.48 worth approximately $45K.
- FVR Director bought 7,600 shares at $13.165 - $13.19 worth approximately $100K.
- HTH Hilltop Securities Chairman bought 30,000 shares at $32.77 - $33.06 worth about $990K.
- HYLN Director bought 65,000 shares at $1.57 worth approximately $102K.
- MGNX Director bought 100,000 shares at $1.46 - $1.59 worth approximately $151K.
- OPCH Directors (4) bought 57,750 shares combined at $26.92 - $27.625 worth nearly $1.6 mln.
- POST Director bought 36,000 shares at $109.53 worth more than $3.9 mln.
- PROP Director (2) bought 221,417 shares at $2.05 - $2.37 worth approximately $463K.
- REZI 10% owner CD&R Holdings bought another 682,641 shares at $31.52 - $32.55 worth nearly $22 mln.
- RSG 10% owner Cascade Investment bought another 4,258 shares at $234.90 - $234.91 worth about $1 mln.
- STRZ Director bought 15,796 shares at $12.35 - $12.98 worth approximately $202K.
- UA Director Sweeney bought 100,000 shares of Class C Common Stock at $4.86 - $4.89 worth approximately $488K.
- ULBI 10% owner / Director bought 58,664 shares at $6.51 - $6.72 worth approximately $387K.
Sellers:
- EA Director sold 1,746 shares at $170.5081 worth approximately $298K.
- GTX 10% owner Oaktree Capital sold 5,000,000 shares to the company at $12.42 worth about $62.1 mln. 10% owner Cyrus Capital Partners also sold 1,305,000 shares at $13.00 - $13.05 worth nearly $17 mln.
- PLMR Chief Executive Officer and Chairman sold 5,000 shares at $124.50 - $127.47 worth approximately $633K.
- TILE Vice President sold 5,000 shares at $26.07 - $26.19 worth approximately $131K
CSX traveling sharply lower after announcing new intermodal agreements with BNSF Railway, disappointing investors who were expecting a more transformative merger (34.51 -1.36)
- Shares of railroad operator CSX (CSX) are notably weak today following the announcement of new intermodal service agreements with BNSF Railway, which disappointed investors expecting a more transformative merger.
- Activist investor Ancora Holdings has been pushing CSX to pursue a merger with BNSF or Canadian Pacific Kansas City to counter competitive threats, such as the potential Union Pacific (UNP)-Norfolk Southern (NSC) merger.
- The intermodal agreements, aimed at enhancing coast-to-coast freight connectivity, are incremental but fail to meet activist demands for a strategic overhaul or leadership changes, dampening investor sentiment.
- Additionally, Federal Reserve Chair Jerome Powell's Jackson Hole speech signaling a potential rate cut has raised concerns about economic growth, further weighing on cyclical rail stocks like CSX.
Closing Market Summary: Markets surge on Fed Chair Powell's Jackson Hole remarks
The stock market rallied today after Fed Chair Powell's speech at the Jackson Hole symposium bolstered the probability of a September rate cut, resulting in broad-based gains that largely made up for a previously challenging week.
The DJIA (+1.9%) soared past its record high levels, posting a new record intraday (45,757.84) and closing high (45,631.74). Meanwhile, the S&P 500 (+1.5%) came within three points of its own all-time high level before finishing just shy of its record close. The tech-heavy Nasdaq Composite (+1.8%) still has some ground to cover before it goes record hunting again due to losses incurred earlier in the week.
In particular, the market was enthused by Mr. Powell's line noting that "with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance," which the market took as an open-mindedness to easing.
The probability of a 25-basis point rate cut at the September FOMC meeting now stands at 83.1%, up from 75.0% yesterday, according to the CME FedWatch tool.
It is worth noting that this probability did decrease somewhat from a probability in the low 90s earlier in the day, as there are still lingering inflation concerns that could stifle a rate cut.
Cleveland Fed President Beth Hammack (non-voting FOMC member) expressed a more hawkish view in a CNBC interview, in which she stressed that while she is open-minded heading into September, her focus remains on inflation, where she feels the Fed is still missing badly on its mandate.
However, this did little to thwart the stock market off its strong upward course.
Small-cap stocks, with their greater domestic focus and higher sensitivity to borrowing costs, performed exceptionally well.
The Russell 2000 advanced 3.8% today, making it the top performer among the major averages for the week after starting the session with a modest week-to-date loss.
Homebuilders also excelled with the prospect of a friendlier rate environment, with the iShares U.S. Home Construction ETF posting a 5.6% gain.
The S&P Mid Cap 400, for its part, added 2.7%.
The Invesco S&P 500 High Beta ETF added 3.3% today, reinforcing the market's strong risk-on sentiment.
While the Vanguard Mega Cap Growth ETF (+1.5%) performed more in line with the broader market, mega-cap gains were a welcome sight after a tough week that saw the mega-cap index finish with a 1.1% week-to-date loss.
Tesla (TSLA 340.02, +19.91, +6.22%) was a notable standout among the cohort, surging past its 200-day moving average (328.40) and helping the consumer discretionary sector (+3.2%) capture the widest gain today.
In total, ten S&P 500 sectors finished with gains, with the energy (+2.0%), communication services (+1.9%), materials (+1.7%), and financials (+1.7%) sectors among the best performers.
The PHLX Semiconductor Index advanced 2.7% after several choppy previous sessions, getting back to its unchanged level for the week.
Only the defensive consumer staples sector (-0.4%) saw a modest loss.
Breadth figures denote the scope of today's rally, with advancers outpacing decliners by a nearly 10-to-1 margin on the NYSE and a greater than 5-to-1 clip on the NASDAQ.
Today's rally reinforces investor optimism for potential policy easing and sets a positive tone as traders position for the final stretch of August.
U.S. Treasuries enjoyed a strong Friday outing that lifted the 10-year note and shorter tenors into positive territory for the week while the long bond added to this week's gain.
The 2-year note yield settled down ten basis points to 3.69%, the 10-year note yield settled down seven basis points to 4.26%, and the 30-year note yield settled down four basis points to 4.88%.
There was no economic data of note today.
- Nasdaq Composite: +11.3% YTD
- S&P 500: +10.0% YTD
- DJIA: +7.3% YTD
- Russell 2000: +5.9% YTD
- S&P Mid Cap 400: + 4.3% YTD
Caution lingered across markets ahead of Federal Reserve Chairman Jerome Powell’s speech with traders paring wagers on an imminent interest-rate cut. A gauge of the dollar held its gains from the prior session, spurred by upbeat US manufacturing data and hawkish comments from the Fed officials. Asian shares fluctuated between small gains and losses while futures for European and US stocks were little changed. Chinese shares stood out with a 1.2% jump, with technology among the best performers. Gold fell 0.3%. Nvidia Corp.’s shares slid about 1.9% on alternative trading system Blue Ocean after a report said the company instructed component suppliers to stop production related to the H20 AI chip. That helped lift chip stocks in China and Hong Kong. The S&P 500 fell for a fifth straight day as stronger US economic data and a more hawkish tone from Fed officials pushed money markets to price a 70% chance of a September rate cut, down from 90% a week ago. Focus now shifts to the Fed’s annual Jackson Hole symposium, where Powell speaks Friday at 10 a.m. New York time for clues on the policy outlook. Bond investors are heading into the speech largely expecting the Fed will indicate policymakers will start cutting interest rates next month. In recent years, Powell has used the occasion to make market-moving policy news, with investors zeroing in on whether the Fed chair pushes back — or not — on the current pricing for rate cuts. The central bank has held interest rates steady this year, citing elevated uncertainty over the impact of tariffs on the economy. President Donald Trump, a frequent critic of the Fed, has demanded that Powell and his colleagues lower rates significantly, with some in the administration calling for an outsize half percentage point cut next month. Fed Bank of Cleveland chief Beth Hammack said she wouldn’t support easing if officials had to decide tomorrow. Other Fed officials speaking Wednesday and Thursday struck a similarly hawkish tone as Cleveland’s Hammack. Atlanta Fed President Raphael Bostic said he still sees just one rate cut this year as appropriate. Jeffrey Schmid, president of the Kansas City Fed, said inflation risk still outweighs risks to the labor market. Fed Chicago President Austan Goolsbee said while some recent inflation readings have come in better than expected, he hopes one “dangerous” data point is just a blip. While data showed an increase in jobless claims — adding to signs of a slowing labor market — the solid factory purchasing managers index made traders trim their bets on rate cuts. A gauge of manufacturing grew at the fastest pace since 2022. “The Fed is being put in a tough spot, with pressures to cut interest rates as inflation rises and the labor market decelerates — with both of those metrics moving in the opposite direction from the Fed’s dual mandate,” said Bret Kenwell, US investment analyst at eToro. Markets also need to consider the increasing likelihood that global growth will exceed expectations, bringing with it inflationary pressures that restrict central banks’ ability to cut rates. Meantime, the Justice Department signaled possible plans to investigate Fed Governor Lisa Cook, with a top official encouraging Powell to remove her from the board. Trump’s housing-finance chief, Bill Pulte, has called for a probe over mortgage agreements she allegedly made in 2021. Elsewhere, the pace of Japan’s consumer inflation stayed well above the Bank of Japan’s 2% target even as price growth moderated, supporting market speculation that the central bank will hike its benchmark interest rate again this year. In geopolitics, efforts to establish security guarantees for Ukraine as part of a US-led push to end Russia’s war are running into difficulties almost immediately. US After Hours INTU -5.5%, WDAY -3.2% lower on earnings; ZM +5.6%, ROST +2.3% higher on earnings.
Nikkei -0,08% Hang Seng +0.26% CSI +1.23% Shanghai +0.65% Shenzen +0.72%
Eur 1.1585 CNH 7.1878 CNY 7.1846 JPY 148.63 GBP 1.3393 CHF 0.8102 RUB 80.5107 TRY 41.0148 Crude 63.45 -0.03% Gold 3,382 -0.27% BTC 112,972 +0.54% ETH 4,277 +0.84%
SPX -0.03% Nasdaq -0.10% EuroStoxx -0.09% FTSE +0.02% Dax -0.10% SMI -0.03%
Macro :
- Trump Won’t Seek Equity From Chipmakers With US Investment Plans
- Vitol, Breakwall Capital JV Funds Inaugural Loan of $150M
- US Weighs Plan to Reallocate $2b in CHIPS Act Funds: Reuters
Keep an eye on :
- AI FP : Air Liquide to Buy DIG Airgas for Enterprise Value of EU2.85B
- AAPL US : Meta Poaches Apple AI Executive Even as It Plans Hiring Slowdown
- GOOGL US : OpenAI Is Challenging Google—While Using Its Search Data
- BAVA DC : Bavarian 2Q Revenue Beats Estimates; Outlook Range Narrowed
- COR PL : Corticeira Amorim Surges 5.8% as Cork Exempt from US Tariffs
- HTG LN : Hunting Expects Restructuring to Deliver ~$2m Annualized Savings
- Lactalis : Fonterra Agrees to $2.2 Billion Consumer Unit Sale to Lactalis
- META US : Meta Poaches Apple AI Executive Even as It Plans Hiring Slowdown
- META US : Meta Signs $10 Billion-Plus Cloud Deal With Google
- MONT BB : Montea Sees FY Dividend per Share EU3.90
- NOVOB DC : Novo Nordisk Has Won 44 Copycat Court Cases in US, Borsen Says
- NVDA US : Nvidia Urges Taiwan to Embrace Nuclear Power Ahead of Referendum
- NVDA US : Nvidia Asks Suppliers to Halt H20 Work, Information Says
- OPEN AI : OpenAI’s Chief People Officer Julia Villagra Leaving Co.: Rtrs
- RECSI NO : REC Silicon 2Q Ebitda $4.9M Vs. Loss $4.6M Q/Q
- SHLF NO : Shelf Drilling Get Contract Extension for Tenacious Jackup Rig
- SMG IPO : SMG Could Allow Zurich to Leap up the IPO Scoreboard: ECM Watch
- STLA US : Jeep Cherokee Resurrected as Hybrid SUV to Reverse Sales Slump
- SZU GY : Suedzucker Cuts FY Revenue Outlook on Segment Weakness
- Tennet : Germany Weighs Buying Minority Stake in Tennet Germany: FD
- UQA AV : Uniqa FY Pretax Profit Forecast Beats Estimates
>>> Up
* Altria PT Raised to $72 from $65 at Stifel
* Aasen Sparebank Raised to Buy at Norne Securities; PT 136 kroner
* Grong Sparebank Raised to Buy at Norne Securities; PT 171 kroner
* Hensoldt Raised to Neutral at Citi; PT 88 euros
* RENK Group Raised to Neutral at Citi; PT 61 euros
* Sparebank 68 Grader Nord Raised to Buy at Norne Securities
* Ulta Beauty Raised to Overweight at Barclays; PT $589
>>> Down
* Alexandria Group Cut to Reduce at Inderes; PT 11 euros
* Coty PT Cut to $4 from $5 at Canaccord
* Coty Cut to Hold at Jefferies; PT $4
* CTS Eventim Cut to Neutral at Oddo BHF; PT 86 euros
* Fondia Cut to Accumulate at Inderes; PT 5.20 euros
* Gap Cut to Equal-Weight at Barclays; PT $19
* Spir Group Cut to Hold at ABG; PT 9 kroner
>>> Initiation
* GN Store Nord ADRs Rated New Outperform at BNPP Exane; PT $70
>>> Call
DAX:
- Rheinmetall (RHM TH) +1.1%
MDAX:
- RENK Group (R3NK TH) +2.5%
- RENK Group Raised to Neutral at Citi; PT 61 euros
- Hensoldt (HAG TH) +2.1%
- Hensoldt Raised to Neutral at Citi; PT 88 euros
- Delivery Hero (DHER TH) -1%
SDAX:
- Suedzucker (SZU TH) -3.1%
- Suedzucker Cuts FY Revenue Outlook on Segment Weakness
- RENK Group (R3NK TH) +2.3%
- RENK Group Raised to Neutral at Citi; PT 61 euros
- Hensoldt (HAG TH) +2.2%
- Hensoldt Raised to Neutral at Citi; PT 88 euros
- Rolls-Royce (RRU TH) +1.1%
- Bavarian Nordic (BV3 TH) +1.1%
- Bavarian 2Q Revenue Beats Estimates; Outlook Range Narrowed
- Delivery Hero (DHER TH) -1%