Pre-market trading of US stocks | Alibaba denies US IPO, Kenvue under Johnson & Johnson - the largest US IPO of the year is coming!

US Stock News

1. Market News: Toronto Dominion Bank and First Horizon Bank have agreed to terminate their merger agreement. Toronto Dominion Bank and First Horizon Bank both stated that there is uncertainty regarding the timing of regulatory approval.

2. Today, there was news that PDD's headquarters will move from China to Ireland. In response, a PDD spokesperson stated that the news is completely untrue and a misreading. "PDD was born in Shanghai and grew up in China. PDD's headquarters has always been in Shanghai, China and will not change." (Caixin)

3. According to industry insiders, due to lower-than-expected sales in the first half of this year, Apple's MacBook shipments may see a single-digit decline in 2023. (DIGITIMES Asia)

4. Shell: Adjusted net profit for the first quarter was $9.646 billion, and adjusted EBITDA was $21.432 billion, exceeding market expectations of $18.827 billion. The company announced a $4 billion share buyback plan.

5. East West Bank: The bank has not experienced any unusual deposit flows, and the sale plan is still ongoing.

6. According to the Wall Street Journal, Johnson & Johnson's large consumer health business, Kenvue, will set its IPO price at $22 per share, making it the largest IPO of the year. Trading is expected to begin on Thursday, and the IPO is expected to raise at least $3.7 billion, with a new company valuation of over $40 billion.

7. According to the Wall Street Journal, a consortium led by Apollo is close to acquiring industrial company Arconic for $30 per share.

8. US Federal Reserve rate futures show that the market has increased its expectations of a Fed rate cut, pricing in a rate cut to 4.25% by the end of the year, down from 4.35% previously.

9. SEC officials: The US Securities and Exchange Commission will not consider banning short selling, despite concerns about the financial health of banks weighing on the stock market.

10. Qualcomm: Expects earnings per share of $1.24-$1.44 and revenue of $8.1-$8.9 billion in the third quarter.

11. Is Alibaba International Digital Business Group considering an IPO in the US? Alibaba International Digital Business Group denied the rumors and stated that "there is no plan to go public."

12. Moderna's first-quarter revenue was $1.86 billion, with a net profit of $79 million. The company still expects total product sales of approximately $2 billion in the first half of the year, with second-quarter product sales of $200-$300 million.

Pre-market Movement

In pre-market trading, Dow Jones futures fell 0.25%, Nasdaq futures rose 0.1%, and S&P 500 futures fell 0.24%.

Alibaba rose more than 2%, reaching a high of more than 4%; JD.com, PDD, and NIO rose 1.5%; Ideal Auto rose more than 3%, Bilibili rose 2.5%, New Oriental rose nearly 2%, and Baidu rose 1%. Industrial company Arconic rose 28%, with a consortium led by asset management giant Apollo reportedly nearing a purchase of Arconic at a price of $30 per share.

First Horizon National Bank plummeted 55%, while Alliance West Bancorp fell over 18% and Western Pacific Bancorp dropped over 44%.

Moderna rose nearly 4% in pre-market trading, but its gains narrowed to 1.5%.

Shell rose over 3%, with Q1 net profit up 22.3% YoY to $8.709 billion.

Qualcomm fell nearly 8%, with Q2 FY2023 revenue down 17% YoY to $9.28 billion and net profit down 42% YoY to $1.704 billion.

Institutional Views

1. JPMorgan still bullish on US fixed-income assets relative to stocks

JPMorgan Asset Management's Chief Market Strategist for the Asia-Pacific region, Tai Hui, said that the end of the rate hike cycle should be favorable for risk assets such as stocks, but continued concerns about US regional banks will affect investor sentiment. He continues to favor fixed-income assets over stocks, particularly high-quality assets such as developed market government bonds and investment-grade corporate bonds.

2. Piper Sandler: Raises Uber's target price to $43, maintains Buy rating

Piper Sandler analyst Alexander Potter said that Uber should be seen as the top choice for investors seeking exposure to transportation stocks based on the gig economy, and macro headwinds have not yet affected the company's booking volume. If the macro environment deteriorates, shared travel will prove to be a natural hedge, as cash-strapped consumers will tend to choose ride-hailing over buying expensive new cars.

US Stock Strategy

1. JPMorgan: US technical default is unlikely, but selling stocks to buy gold is the way to go

2. US stock options | Tesla, Alibaba Put transactions active, AMD, Uber options transactions amplified more than twice

3. Azure will surpass AWS, Microsoft dominates the cloud with AI?

4. Earnings Preview | Will Apple's performance be as stunning as Microsoft's?

5. What if the rate hike is suspended? The US stock market still has a "bomb": the banking crisis is not over yet!

6. Buffett may face these 10 "sharp questions" as the shareholders' meeting approaches

7. Want to buy mid-cap stocks with high dividends? These five US stocks are worth watching

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