Author: fortraders

Apple (NASDAQ:AAPL) shares are trading 1% lower in pre-market Monday after Loop Capital analysts downgraded the stock to Hold from Buy. The analysts’ price target implies an upside potential of less than 3% based on Friday’s close.

The analysts cite macro headwinds that are hurting iPhone demand, leading to a reduction in Apple’s June quarter builds and shipments by about 10%. This is in addition to the reduced guidance Apple provided on May 4th. Loop Capital Supply Chain analysts expect iPhone shipments to be down 5 million to 35M.

While the demand may be weakening, the analysts mention that “stronger than appreciated iPhone ASPs can counterbalance softening units.” Apple stock closed at $175.16 on Friday. Investors should monitor the situation closely as the risk of further reductions in Apple’s guidance has increased.

Ford Motor Co. has announced three deals to secure supplies of lithium products, including lithium hydroxide, as the automaker ramps up electric vehicle (EV) production to 2 million units by the end of 2026. The deals include a long-term agreement with Canada’s Nemaska Lithium for the supply of up to 13,000 tons of lithium hydroxide every year, a contract with EnergySource Minerals to receive lithium hydroxide from the Imperial Valley, California site, and a five-year agreement with Albemarle Corp to supply more than 100,000 metric tons of battery-grade lithium hydroxide. Ford also reaffirmed its full-year guidance of $9 billion to $11 billion of adjusted earnings before interest and taxes and about $6 billion in adjusted free cash flow. The deals will help Ford meet its ambitious EV production target and strengthen its sourcing capabilities.

Today, four major companies saw their stocks take a hit after receiving analyst downgrades. Nike (NYSE:NKE) was downgraded to Sell from Hold with a price target of $95.00, Foot Locker (NYSE:FL) was downgraded to Sell from Hold with a price target of $25.00, Canadian National Railway (NYSE:CNI) was downgraded to Neutral from Buy with a price target of $125.00, and Catalent (NYSE:CTLT) was downgraded to Neutral from Overweight with a price target of $45.00.

Nike’s downgrade was due to its U.S. business remaining “challenged” and a lack of new compelling products. Foot Locker’s downgrade was due to its Q1 miss and guidance cut, which resulted in a share price drop of more than 27%. Citi downgraded Canadian National Railway due to its lowered guidance, while JPMorgan downgraded Catalent due to its bloated inventory levels.

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JPMorgan Chase & Co announced that its net interest income is expected to increase by $3 billion this year due to its acquisition of failed First Republic Bank. The largest U.S. lender agreed to take on $173 billion of the failed bank’s loans, $30 billion of securities and $92 billion of deposits. The integration process is expected to take about 12 months.

The purchase has been beneficial for JPMorgan as it has seen an influx of deposits from customers seeking safety in larger institutions. The bank also expects expense growth at low-to-mid single digits in the medium term and is targeting a 17% return on tangible common equity.

The acquisition of First Republic is part of a sector-wide upheaval that has roiled financial stocks and deepened worries of a crisis. JPMorgan’s purchase is a sign of confidence in the banking sector and a reminder of the importance of larger institutions in times of economic uncertainty.

JPMorgan Chase & Co (NYSE:JPM) announced today that it expects its net interest income (NII) to be $3 billion higher than previously forecasted. This is due to the bank’s successful acquisition of assets from the failed First Republic Bank. JPM agreed to take on $173 billion of loans, $30 billion of securities, and $92 billion of deposits. The bank now expects its full-year NII to be $84 billion, up from the prior forecast of $81 billion. Shares of JPM are up 0.2% in premarket trading. Investors will get an update on the takeover of First Republic at the bank’s Investor Day event in New York.