Nelson Peltz, founder and chief executive officer of Trian Fund Management, during the Future Investment Initiative (FII) Institute Priority Summit in Miami, Florida, on Thursday, March 30, 2023.
Marco Bello | Bloomberg | Getty Images
My top 10 things to watch Monday, March 25
1. U.S. stock futures were slightly lower Monday morning to kick off the final week of March. All three major benchmarks crossed new all-time high levels last week and are on track for their fifth consecutive month of gains. Looking ahead this week, Friday is the big day, when the government releases February personal income and spending data. This report contains the Federal Reserve’s favorite inflation gauge: the personal consumption expenditures (PCE) index.
2. The European Union on Monday launched an investigation into Apple, Meta Platforms, and Alphabet. The Apple and Alphabet cases are related to “steering,” in which companies block businesses on their platforms from telling users about cheaper options for their products. The Meta probe is related to Facebook and Instagram using personal data for advertising. It’s how they make money …
3. Boeing CEO Dave Calhoun will step down at the end of 2024 in part of a broad management shakeup for the embattled aerospace giant. Chairman Larry Kellner is also resigning and will leave the board at Boeing’s annual meeting in May. Stan Deal, president and CEO of Boeing Commercial Airplanes, is leaving immediately, replaced by Stephanie Pope, who recently became Boeing’s Chief Operating Officer after previously running Boeing Global Services.
4. In my Sunday column, I wrote about my trip to California for Nvidia’s GTC conference, and the many companies that have figured out that their futures depend on getting it right with CEO Jensen Huang. Two stocks are doing it better than the rest.
5. Barclays upgraded Disney to buy from hold and raised its price target to $135 from $95. The firm said the recent “narrative reset” is likely to be followed by positive estimate revisions. Separately, Blackwells Capital released a letter criticizing billionaire activist investor Nelson Peltz — who is in an increasingly heated proxy fight with Disney management — and urging shareholders to vote for its board nominees.
6. Shares of United Airlines fell about 5% Monday in premarket trading after the FAA said it would increase oversight of the company after a series of safety issues.
7. Foot Locker was upgraded to buy from hold at Evercore ISI, with a price target of $32, up from $28. The research firm cited its channel checks and comments from brands, especially Nike, to get more of their products to the shoe retailer. Shares of FL were up roughly 3% in the premarket.
8. Mizuho downgraded Tesla to hold from buy, citing slowing sales and weaker near-term demand for electric vehicles. The firm estimates 2024 EV growth of 15% year over year, down from 25% previously. Rivian and Nio were downgraded, too.
9. Masimo was upgraded to overweight from equal weight with a price target of $160, up from $117. The firm cited the company’s announcement late Friday that it is considering a spinoff of its consumer business from its core health-care business. Shares of the medical technology company jumped nearly 12% on the news.
10. JPMorgan started Supermicro with an overweight rating, said it is the leading company in the AI compute market, which is “burgeoning with demand.”
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