| | Tiny Biopharma Stock Surging 130% on $1.7B Buyout News |
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| | A retail coffee giant is struggling with its fifth straight quarter of falling U.S. store sales, a construction giant warned of softer sales as demand dips, and a tiny biopharma is skyrocketing 130% on a $1.7B buyout deal. Here’s the latest on today’s market movers. | |
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| | | | | What to Watch | Earnings: | Microsoft Corporation [MSFT]: Aftermarket Meta Platforms, Inc. [META]: Aftermarket QUALCOMM Incorporated [QCOM]: Aftermarket KLA Corporation [KLAC]: Aftermarket Equinix, Inc. [EQIX]: Aftermarket | Economic Reports: | ADP employment [April]: 8:15 AM GDP [Q1]: 8:30 AM Employment cost index [Q1]: 8:30 AM Chicago Business Barometer (PMI) [April]: 9:45 AM Consumer spending [March]: 10:00 AM Personal income [March]: 8:30 AM PCE index [March]: 10:00 AM Pending home sales [March]: 10:00 AM |
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| | | | Retail Coffee | Starbucks Shares Tumble as CEO Labels Q2 Results ‘Disappointing’ | | Shares of Starbucks (NASDAQ:SBUX) are down nearly 9% in premarket trading following a weak second-quarter earnings report that fell short of analyst expectations and underscored ongoing challenges in both U.S. and Chinese markets. | Comparable sales at U.S. locations are down 2%, marking the fifth consecutive quarter of negative same-store performance. | While the average spend per transaction is up 3%, total foot traffic dropped 4% as consumers opted for cheaper alternatives like McDonald's and Dunkin'. | Don’t miss this: One forgotten trader is crushing Wall Street with a simple phrase. (ad) | In China, Starbucks' second-largest market, sales were flat year-over-year, with a 4% increase in visits offset by a 4% decline in how much each customer spent. | That modest improvement beat analyst expectations of a deeper decline but still signals cautious consumer behavior. | Adjusted earnings per share came in at $0.41, trailing Bloomberg’s consensus estimate of $0.49. | Revenue totaled $8.76 billion, missing projections of $8.83 billion. Operating margin dropped to 8.2%, falling short of the 9.5% analysts had forecast. | CEO Brian Niccol, who took the helm last year after leading Chipotle, admitted that the quarter’s performance was underwhelming but highlighted internal progress through the company’s “Back to Starbucks” plan. | That strategy includes streamlining the menu, accelerating service times, and boosting brand momentum in China. | Despite Niccol’s optimism, broader macroeconomic headwinds—particularly inflation, weaker global sentiment, and trade-related pressures like recent tariffs targeting China—continue to weigh on Starbucks’ recovery. | The company also faces internal hurdles, including unresolved labor negotiations and a workforce reduction earlier this year. | With 19% of its global store base in China, Starbucks remains heavily exposed to shifting geopolitical and consumer trends in the region. |
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| | Construction & Mining Equipment | Caterpillar Sees Profit Slide as Equipment Demand Softens | | Caterpillar (NYSE: CAT) reported a decline in first-quarter earnings today morning as demand for its construction machinery softened, with the company warning that full-year revenue could be negatively affected by recently implemented tariffs. | The industrial giant’s quarterly adjusted earnings are down to $4.25 per share from $5.60 a year ago. | Revenue is down 10% year over year to $14.2 billion. | Urgent: This rare convergence of crypto catalysts may never happen again—act now or miss out. (ad) | The slowdown in performance comes amid economic uncertainty, which has curbed large-scale construction activity and prompted dealers to reduce inventories in response to muted demand. | Caterpillar previously enjoyed a boost from the 2021 U.S. infrastructure law — a $1 trillion initiative under the Biden administration that spurred project spending. | However, recent macroeconomic pressures such as elevated interest rates and inflation have dampened both public and private sector investment momentum. | In an unusual move, Caterpillar issued two full-year guidance scenarios — one that factors in the effect of tariffs, and one that does not. | Under the more cautious forecast, annual sales are expected to come in slightly below 2024 levels, with tariffs cited as a key reason for the anticipated decline. | The company, often viewed as a barometer of global economic health, now faces growing challenges from shifting trade policies and financing costs. | With dealers adjusting their inventory strategies and infrastructure project pipelines moderating, Caterpillar’s near-term growth outlook remains clouded. |
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| | Energy | Weak Refining Margins and Rising Debt Weigh on TotalEnergies' Q1 Results | | Shares of TotalEnergies (NYSE: TTE) are down 1.2% today morning after the French energy major posted a weaker-than-expected first-quarter performance, citing a surge in debt and lower earnings across most business units. | Adjusted net profit for the quarter is at $4.2 billion, down 18% from the prior year and just shy of the $4.3 billion consensus estimate from analysts. | The company’s net debt more than doubled to $20.1 billion from $10.9 billion in the previous quarter. | Update: A rare crypto signal just triggered—last time, it turned $2K into over $500K. (ad) | TotalEnergies attributed the increase to seasonal working capital needs, which it expects to ease later in the year. | However, analysts are expressing concern about the scale of the debt jump, especially given that free cash flow, even before working capital adjustments, only totaled $2.5 billion. | This much free cash flow is insufficient to cover both dividend payments and planned $2 billion in share repurchases for the second quarter. | Despite a 4% rise in oil and gas output, earnings from the upstream segment slipped 6% due to softer crude prices. | The refining and chemicals division took the hardest hit, with profit down 69% year-over-year, largely driven by weak European demand and heightened global competition. | Marketing and services revenue also declined, dropping 6% annually and 34% sequentially, which the company linked to seasonal fluctuations. | One bright spot was the integrated LNG business, which saw a 6% annual gain, though earnings still dipped 10% from the fourth quarter. | The results contrast with peers like BP and Galp, both of which also reported significant drops in Q1 earnings. | TotalEnergies continues to straddle both traditional hydrocarbons and renewable energy expansion, maintaining its dual investment strategy amid challenging market dynamics. |
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| | Movers and Shakers | | WW International, Inc. [WW] - Last Close: $0.73 | WW International is ad health and wellness platform that provides weight loss solutions. | Its shares are soaring nearly 19% after the company announced a new partnership with Eli Lilly’s LillyDirect pharmacy provider, Gifthealth. The deal will allow WeightWatchers Clinic members to access Zepbound—Lilly’s GLP-1 weight loss drug—in single-dose vial form, especially benefiting self-pay patients without insurance. | My Take: WW is capitalizing on the weight loss drug boom and aligning itself with Eli Lilly, a major player. If it can scale this partnership, the company could become a key access point in the future. Keep a close watch on how the integration goes. |
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| ODDITY Tech Ltd. [ODD] - Last Close: $47.13 | ODDITY Tech is a fast-growing beauty and wellness tech company leveraging AI and data science to personalize cosmetics and skincare solutions. | Its shares are jumping 17% in premarket trading after reporting stronger-than-expected Q1 results and raising its full-year outlook. Adjusted earnings of $0.69 per share topped the $0.62 analyst forecast, while revenue climbed to $268.1 million, beating estimates by nearly $8 million. | My Take: ODDITY is up 9% YTD and has shown impressive growth in both revenue and margins in the last few years, proving that tech-driven beauty has staying power. It could be a strong long-term prospect to keep on your radar. |
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| Regulus Therapeutics Inc.[RGLS] - Last Close: $3.37 | Regulus Therapeutics is a clinical-stage biopharma company pioneering therapies that target microRNAs. Its lead candidate, farabursen, offers hope for patients with autosomal dominant polycystic kidney disease (ADPKD). | Regulus shares are skyrocketing 130% after announcing a definitive agreement to be acquired by Novartis for $7.00 per share in cash, plus a contingent value right (CVR) worth an additional $7.00 based on future regulatory approval of farabursen. The all-cash deal represents a 274% premium to Regulus’ 60-day average share price, valuing the transaction at up to $1.7 billion. | My Take: This is a big win for Regulus and its investors. The deal validates microRNA-targeting as a viable therapeutic strategy, and with Novartis backing farabursen, approval odds—and market reach—just got a major boost. |
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| | | | | | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia Elite Trade Club |
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