OP Wire 5/10 (OP – Lite)

U.S. Stock Futures Rise, Michigan Consumer Sentiment Set to Highlight Quiet Day

Wall Street Outlook:

U.S. stock futures climbed on Friday as investors anticipated crucial inflation data next week and analyzed a swath of corporate earnings. The Dow Jones Industrial Average marked its seventh consecutive positive session Thursday, bolstered by a surprisingly high reading in weekly U.S. jobless claims. This data hinted at cooling in the labor market, reinforcing the belief that the Federal Reserve may scale back interest rates from their two-decade high as soon as September. The Dow reached its highest point since April 1, while the S&P 500 and Nasdaq Composite also closed higher.

However, not all companies saw gains: Arm Holdings (NASDAQ:ARM) fell 2.3% due to a disappointing annual revenue outlook, while Roblox (NYSE:RBLX) plunged 22.1% after revising down its full-year bookings guidance. All eyes are now on next week’s U.S. producer and consumer price data, which could offer fresh insights into inflation trends in the world’s largest economy.

Michigan Consumer Sentiment Index:

The University of Michigan’s preliminary consumer sentiment index for May is set to provide a focal point amid an otherwise quiet Friday. Analysts forecast a reading of 76.0, down from 77.2 in April. Despite a predicted dip, the index has stayed within a 5-point range since January. In April, Director Joanne Hsu noted that consumers remain cautious about the economy, particularly with the upcoming presidential election. Inflation expectations for the next year are also expected to be released after rising to 3.2% in April.

Gold Prices:

Gold prices rose in European trading on Friday, continuing overnight gains. The precious metal benefited from signs of a softening U.S. labor market, which pressured the dollar and Treasury yields. Spot gold climbed 0.3% to $2,354.06 an ounce, while June futures jumped 0.9% to $2,360.75 an ounce. Spot prices were poised to add over 2% for their first positive week in three, though they remain below late-April highs.

Chinese EV Stocks:

Major Chinese electric vehicle (EV) stocks dropped following reports that the U.S. is considering targeted tariffs on Chinese companies, particularly those in the EV and tech sectors. Shares of Li Auto, Nio, and BYD fell between 1% and 4% in Hong Kong, while battery giant Contemporary Amperex Technology lost 2.8%. President Biden may announce the tariffs as early as next week, focusing on EVs, batteries, and solar energy equipment.

Oil Market:

Crude prices climbed on Friday, aiming for a weekly gain after data from the U.S. and China, the world’s largest oil consumers, indicated stronger demand.

$ALT- JMP Securities lowered the firm’s price target on Altimmune to $24 from $25 and keeps an Outperform rating on the shares. Data from the Phase 2b IMPACT trial of pemvidutide in NASH remains on track for 1Q25, where JMP thinks success on both the NASH resolution and fibrosis improvement endpoints is likely, the analyst tells investors in a research note.

$AAPL- Apple (AAPL) has signed a deal with Samsung Display (SSNLF) for the development of foldable devices, DigiTimes’ Rebecca Kuo and Rodney Chan report, citing industry sources.

Wedbush analyst Daniel Ives notes that according to a Bloomberg report, Apple has been putting some of its most advanced high-end chips in data centers that it intends to use to process its more advanced AI-based services with the more simplistic AI-related tasks set to be processed on the device. The firm believes that the fact Apple will be putting its advanced homegrown chips around AI gives Cupertino more control over its AI path and ultimately will build out a broader chip ecosystem for its AI strategy. In this AI Revolution, Apple is much further down the path of its own proprietary AI LLMs and technology than the Street expects, in Wedbush’s view, and this move is another tipping of the hand heading into what could be “the biggest unveil event for Cook and Cupertino in roughly a decade.” The firm keeps an Outperform rating on Apple ahead of WWDC next month, with a price target of $250 on the shares.

Microsoft (MSFT) plans to release its own mobile game store on the internet in July, establishing an alternative to Apple’s (AAPL) App Store and Google’s (GOOGL) Play Store, Bloomberg’s Cecilia D’Anastasio and Dina Bass report. The store will roll out with Microsoft’s own games, such as “Candy Crush Saga,” the authors say, citing comments from Xbox president Sarah Bond at the Bloomberg Technology Summit. The Xbox maker will later open the store to other publishers

$BA- Securities and Exchange Commission is scrutinizing statements that Boeing made about its safety practices following a near-tragic January accident aboard one of its 737 Max 9 planes, sources told Bloomberg’s Allyson Versprille and Austin Weinstein. The SEC investigation is focused on whether comments by the company or its executives misled investors in violation of the Wall Street regulator’s rules, according to the report, citing three people with knowledge of the matter. 

Hey OP…. Great job yesterday on the systems plays & the OP wire / chat plays of RBLX and SBUX. I’ll be buying all SBUX dips and selling rips while holiding the core January Calls. See you all in chat!

If you want to get the plays of the day then signup for Gold, and get a FREE TRIAL

If you want to get the plays of the day then signup for Gold, and get a FREE TRIAL