—— Key Inflation Gauge Rises Mildly While Consumers Hold Up; E-Sport Company of Casino Tycoon Son Went IPO; US Consumer Sentiment Continues to Drop; Quantum Computing Firm Plans IPO; Deadpool 3 Brings in Nearly $40mn on Opening Night; Dexcom Drops 40% After Lowering Forecast; 3M Share Price Jumps Most in 36 Years
1. Key Inflation Gauge Rises Mildly While Consumers Hold Up
The Federal Reserve’s preferred measure of underlying US inflation increased at a modest pace in June, while consumer spending remained strong. These are positive indicators for officials aiming to reduce inflation without causing economic disruption.
The core personal consumption expenditures (PCE) price index, which excludes volatile food and energy items, rose 0.2% from May. On a year-over-year basis, it increased by 2.6%, according to data released by the Bureau of Economic Analysis on Friday.
Inflation-adjusted consumer spending also grew by 0.2%, with May’s increase being revised upwards. These figures suggest that inflation is stabilizing and consumer spending is resilient, providing a balanced outlook for the economy and influencing the Federal Reserve’s approach to monetary policy.
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2. E-Sport Company of Casino Tycoon Son Went IPO
Mario Ho, the youngest son of the late Macau casino magnate Stanley Ho, has established his own fortune in the burgeoning world of e-sports, diverging from the gambling industry that made his family one of Asia’s wealthiest.
At 29 years old, Ho started an e-sports business six years ago, and that venture has now gone public. The company, NIP Group Inc., raised over $20 million in its initial public offering in New York by selling 2.25 million shares at $9 each, which was the lower end of the marketed range.
NIP Group began trading on the Nasdaq exchange on Friday, initially climbing as much as 46% before settling back. As of 11:37 a.m., the shares were up 2%, valuing Ho’s 13.6% stake at $70 million, according to the Bloomberg Billionaires Index.
“It’s not exactly the simplest time to pull off an IPO,” Ho, who serves as the company’s chairman and co-chief executive officer, said in an interview in New York. “But with the global presence we have, and the management team being very globally capable, they made this easier.”
The trading debut of NIP Group came after the Nasdaq Composite Index experienced its largest two-day decline since 2022. Investors had been selling megacap tech stocks following disappointing earnings that raised concerns about the sustainability of the artificial intelligence boom. However, stocks rallied on Friday, with the Nasdaq up almost 1%.
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3. US Consumer Sentiment Continues to Drop
US consumer sentiment declined in July to its lowest level in eight months as high prices continued to affect perceptions of personal finances.
According to the University of Michigan, the final sentiment index for July decreased to 66.4 from 68.2 in June, with a preliminary reading of 66.
Consumers expect prices to rise at an annual rate of 2.9% over the next year, the lowest rate in four months and slightly down from the 3% expected in June. They anticipate costs will increase by an average of 3% over the next five to ten years, consistent with expectations from the previous month.
Sentiment has been declining since the first quarter, reflecting the impact of a high cost of living and elevated borrowing costs on current views and future expectations of personal finances. While the pace of inflation is beginning to slow, wage gains have been modest, and many Americans have depleted their pandemic savings.
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4. Quantum Computing Firm Plans IPO
Honeywell International Inc. is contemplating an initial public offering (IPO) for its majority-owned quantum computing firm, Quantinuum, as early as next year, according to sources familiar with the matter.
The company has been in talks with several investment banks regarding a potential US listing and may seek a valuation of approximately $10 billion for Quantinuum. These details were shared by individuals who requested anonymity due to the private nature of the information.
Following the Bloomberg News report, Honeywell shares rose by as much as 2.6% on Friday, marking their largest intraday increase since early June. However, the shares have declined about 2% this year, bringing Honeywell’s market valuation to around $133 billion.
The discussions are in the preliminary stages, and the specifics of the IPO plan could still change. A Honeywell representative declined to comment, and a representative for Quantinuum did not immediately respond to requests for comment.
Quantinuum was established in 2021 through the merger of Cambridge Quantum and Honeywell Quantum Solutions. The firm employs around 500 people and operates offices in the US, UK, Germany, and Japan, according to its website.
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5. Deadpool 3 Brings in Nearly $40mn on Opening Night
“Deadpool & Wolverine,” the latest Marvel Studios film from Walt Disney Co., earned $38.5 million in domestic ticket sales during Thursday previews, setting a record for an R-rated film, according to the company.
The film, which features Ryan Reynolds and Hugh Jackman in the third installment of the Deadpool franchise, is anticipated to be one of the biggest releases of the year.
Disney reported that these results are comparable to other major blockbusters such as “Star Wars: The Rise of Skywalker” and “Avengers: Infinity War.”
The movie officially premieres on Friday in the US and Canada, but it has already generated $64.8 million in international markets over the past two days.
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6. Dexcom Drops 40% After Lowering Forecast
Dexcom Inc. experienced a dramatic 40% drop in its stock price after the company unexpectedly slashed its 2024 sales guidance, surprising Wall Street.
This decline is the largest on record for the stock, wiping out over $17 billion in market capitalization. The San Diego-based manufacturer of blood sugar monitoring devices for diabetics cited several reasons for the revised forecast, including a decrease in new customers, lower revenue per patient, and higher-than-expected rebates. The company cut as much as $350 million from its revenue forecast, reversing a previous increase from three months earlier, and placing the guidance below the start-of-year expectations.
Notably, this adjustment did not account for a significant anticipated decrease in demand due to the rising use of weight-loss medications, which could reduce the need for Dexcom’s devices. While Dexcom’s glucose monitors are crucial for type 1 diabetics, they are also expected to gain popularity among those with type 2 diabetes, which is often linked to weight issues.
“It is strange that the wheels came off this bus so abruptly,” commented Jared Holz, an analyst at Mizuho Securities, in a note to clients. “The speed at which the business appears to have deteriorated is borderline stunning.”
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7. 3M Share Price Jumps Most in 36 Years
3M Co. experienced its most significant surge in over 36 years after raising its full-year profit forecast, as the new chief executive officer committed to revitalizing the company’s innovation efforts.
The shares rose by as much as 16% as of 9:36 a.m. in New York, marking the most substantial increase since 1987. This jump followed the company’s announcement that adjusted earnings for this year would be between $7.00 and $7.30 per share, with the midpoint of the forecast rising to $7.15, up from the previous outlook by 10 cents.
These results are the first under CEO Bill Brown, who took over from Mike Roman on May 1. Brown assumed leadership of a considerably smaller company following the spinoff of 3M’s large health-care products division amid significant legal liabilities.
During his first earnings call, Brown emphasized the importance of accelerating 3M’s sales growth. To achieve this, he plans to enhance the pace of new product development, aiming to reinvigorate the company’s innovation engine.
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。