Nebius enters AI pact with Microsoft, Teck to combine with Anglo: Morning Buzz

Stocks were mostly unchanged near noon as the market rally stalls following last week’s move to record highs. The Bureau of Labor Statistics updated its jobs figures for the 12 months through March, lowering the total nonfarm payroll gains during that period by 911,000. While the major indices didn’t react much right away to the news, the report could reinforce calls for the Federal Reserve to be more aggressive with lowering interest rates.

Looking to commodities, gold prices are little changed following a recent surge, still hovering just below the $3,700 threshold. Oil prices, meanwhile, surged higher ahead of this afternoon’s API crude numbers.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• At a company event later today, Apple (AAPL) is expected to unveil a new slate of devices, including the long-awaited iPhone 17
• Nebius (NBIS) has entered a multi-billion dollar AI infrastructure pact with Microsoft (MSFT)
• Teck Resources (TECK) and Anglo American (NGLOY) to combine to form Anglo Teck group
• Tourmaline Bio (TRML) agreed to be acquired by Novartis (NVS) for $48 per share in cash
• Nvidia (NVDA) is partnering with Jacobs (J) and others to build a new class of AI factories

2. WALL STREET CALLS:

• Citi upgraded Dick’s Sporting (DKS) to Buy on “category killer” acquisition of Foot Locker (FL)
• Citi upgraded Hyatt (H) to Buy and downgraded Park Hotels & Resorts (PK) to Neutral as the firm shuffled ratings in the lodging group
• TKO Group (TKO) downgraded at Seaport Research, here’s why
• TaskUs (TASK) cut to Equal Weight at Morgan Stanley ahead of take-private vote
• Lululemon (LULU) downgraded to Sector Weight at KeyBanc

3. AROUND THE WEB:

• Current and former Meta (META) employees submitted documents and affidavits to Congress alleging that Meta suppressed research on child safety risks in its VR platforms, WaPo reports
• Toyota (TM) will consolidate production of its luxury Lexus brand cars in the U.S. into a single location from two in the face of high tariffs imposed by the Trump administration, Nikkei Asia says
• The Federal Aviation Administration, FAA, has not yet made a decision on whether it will lift the 38 planes per month of Boeing’s (BA) 737 MAX production cap that has been in place since early 2024, Reuters reports
• Aquarian is in advanced talks with Mubadala Capital, Qatar Investment Authority and other investors to finance its takeover of Brighthouse Financial (BHF), FT says
• California Governor Gavin Newsom is seeking to impose further restrictions on California’s offshore oil industry, a setback to Sable Offshore (SOC) and its controversial project off the coast of Santa Barbara County, Bloomberg reports

4. MOVERS:

• KingSoft Cloud (KC) gains in New York after BofA upgraded its stock to Buy
• CoreWeave (CRWV) increases after launching CoreWeave Ventures to invest in AI
• Pacs Group (PACS) lower after announcing CFO Derick Apt has resigned from the company
• Core & Main (CNM) falls after reporting Q2 results and narrowing its guidance for FY25
• Ondas (ONDS) declines after announcing a 40M share offering

5. EARNINGS/GUIDANCE:

• Korn Ferry (KFY) reported Q1 results, with EPS and revenue beating consensus
• Hello Group (MOMO) reported Q2 results and provided guidance for Q3
• AT&T (T) reaffirmed its guidance for FY25
• Designer Brands (DBI) reported Q2 results, with EPS and revenue beating consensus
• SailPoint (SAIL) reported Q2 results, with CEO Mark McClain commenting, “SailPoint delivered strong second quarter results that exceeded all previously guided metrics”

INDEXES:

Near midday, the Dow was up 0.17%, or 76.47, to 45,591.42, the Nasdaq was up 0.04%, or 9.51, to 21,808.21, and the S&P 500 was up 0.05%, or 3.09, to 6,498.24.