chip equipment maker Applied Materials Inc. has agreed to acquire Japanese peer Kokusai Electric for $2.2 billion from KKR & Co Inc. The deal will be financed by a combination of cash and debt , as mentioned by Applied Materials.As of March 2018, Kokusai generated revenue of $1.24 billion. According to Japan's Nikkei business newspaper, the acquisition would boost Applied Materials’ semiconductor equipment market share to over 20%.

According to Bellini, market expectations on Zoom “have gotten ahead of themselves” vis-a-vis its valuation. However, the analyst increased her 12-month price target on the stock to $66 from $53.That’s because she maintains her “blue sky” scenario outlook on Zoom, expecting the company to surpass Wall Street consensus revenue estimates  for 2020.

Food distribution company Performance Food Group has agreed to acquire privately held Reinhart Foodservice for $2 billion. Reinhart’s revenue last year came in at more than $6 billion. The deal could potentially catapult Performance Food’s position as one of the largest food distributors in the U.S. with approximately $30 billion in net sales.The merger is expected to generate around $50 million of annual run-rate cost synergies in three years. The transaction has been approved by the board of directors of Performance Food Group and the governing body of Reinhart.

Infrastructure asset management company Brookfield Infrastructure Partners, Government of Singapore Investment Corporation (GIC) and some other institutional investors are acquiring freight railway owner and operator Genesee & Wyoming. In a transaction valued at $8.4 billion including debt, Brookfield will invest in around $500 million of equity of Genesee & Wyoming, while the remaining stock will be owned by Brookfield Infrastructure's institutional partners and GIC. The deal is expected to close by year-end 2020, subject to approvals from regulators and Genesee & Wyoming shareholders. Genesee & Wyoming owns or leases 120 freight railroads across eight locally managed operating regions, and serves 3,000 customers.

After passing the Federal Reserve's stress tests, several U.S. big banks announced bigger dividends while bulking up share buyback plans. The annual stress tests  are the Fed’s assessment on whether banks have adequate capital to absorb losses during severe economic downturns.It said that it can buyback $21.5 billion in stock. Morgan Stanley increased its dividend to 35 cents a share from 30 cents, and can buy back $6 billion in stock. Bank of America raised its dividend to 18 cents a share from 15 cents, and could repurchase up to $30.9 billion of shares.  

Analyst Colin Langan indicated that they are expecting the electric carmaker's losses in the second half of the year to widen, as they feel that deliveries might decline and Tesla’s product pricing would weigh on margins. UBS predicts a second-quarter loss of 78 cents per share, compared to a prior forecast of 49 cents loss.The analysts at the bank also lowered their earnings per share outlook through 2019 until 2023.   Langan is concerned that the $2,400 average estimated Autopilot price cut would hurt Tesla’s margins.

Nike reported lower-than-expected earnings for its fiscal fourth quarter, but beat estimates on sales. The footwear/sportswear behemoth’s adjusted earnings for the three months ending in May came in at 62 cents per share, falling short of the Street estimates of 66 cents.Sales from the Nike brand, which excludes Converse merchandise, climbed +10% from the same quarter last year to $9.7 billion. The company said that its profit margins were squeezed during the quarter in part due to investments needed to sell more directly to consumers and less through wholesalers. In fiscal 2019, Nike’s revenues from its direct-to-consumer division touched $11.8 billion, thanks in large part to a +35% surge in online sales and a +6% jump in same-store sales , according to the company.  

Constellation Brands reported its fiscal first quarter earnings  that edged past analysts’ expectations.The beverage maker also raised its outlook for its full-year profit. The company’s comparable earnings for the three months ending in May, came in at $2.21 per share, compared to the Street estimates of $2.07 per share. Total revenues increased +2% year-over-year to $2.097 billion, also exceeding analysts' estimates of a $2.07 billion. For its 2020 full fiscal year, Constellation has predicted earnings of between $8.65 and $9.95 per share (excluding Canopy Growth), up from its prior forecast of $8.47 to $8.77 per share.

Holly Frontier (NYSE: HFC) is an oil refiner based in Dallas, Texas.The stochastic readings just made a bearish crossover on June 25. The Tickeron Trend Prediction Engine generated a bearish signal for Holly Frontier on June 24.

The stock briefly dipped below the $50 level back on December 26, but it rallied sharply in the last six months and hit a recent high of $84.30 on June 13.The indicator has turned higher in the last few days and the stochastic indicators made a bullish crossover on June 21. Tickeron’s Trend Prediction Engine generated a bullish signal for Tyson on June 20.

Back on April 23, I posted a blog entry about Tesla (Nasdaq: TSLA) and how the stock was in a clear downward trend ahead of the company’s earnings report.The stochastic readings have been hovering in overbought territory for the past few weeks and made a bearish crossover on June 20. The Tickeron Trend Prediction Engine generated a bearish signal on Tesla back in April and it did so again on June 19.

Google on Thursday announced a new feature that will help you avoid crowded buses -- at least if you have a choice of when to commute. Google Maps for Android and iOS is receiving an update that gives you information on how crowded a bus typically is at the time of day when you’re planning to ride it.For instance, it might say that there’s “usually standing room only” if the bus is crowded.

As Facebook explores how to establish more independent oversight for the company, CEO Mark Zuckerberg is proposing a type of court system where appeals can be elevated if people disagree on how controversial content is treated.  Facebook released a new research report on Thursday summarizing its findings based on input from over 2,000 people in 88 countries.

When the yield curve inverted (short-term Treasury rates rise above long-term yields) earlier this year, investors began worrying it was signaling a recession. Now months after staying inverted, yields on parts of the curve are starting to steepen, or show a greater difference in value, a sequence which could be the true sign of economic trouble ahead, some on Wall Street said.

Twitter said Thursday it will start labeling tweets from influential government officials who break its rules. Shares of Twitter dipped about 1% on the news but recovered slightly. The new rule, announced in a blog post, responds to a common criticism of Twitter while being careful to avoid allegations of political bias.

Conagra reported fiscal fourth-quarter earnings that fell short of analysts’ expectations. The packaged foods company reported adjusted earnings of 36 cents a share, compared to 41 cents a share that analysts polled by FactSet had estimated.However, the figure is still below the $2.06 a share forecast by analysts polled by FactSet Conagra also lowered its full-year fiscal 2020 adjusted earnings guidance to $2.08 to $2.18 per share, compared to its prior forecast of $2.10 to $2.20.

Ford Motor Co. announced plans to slash more than 12,000 jobs across Europe by the end of next year. The job cuts are a part of the automaker’s restructuring plan to boost profts.According to the company, many of the job layoffs will come from voluntary separation agreements. Ford’s earnings for the three months ending in March surged nearly 52% from the same period last year, to 44 cents a share – beating analysts’ estimates. Last month, Ford CEO Jim Hackett said that the company is entering the final phase of its plan to lay off 7,000 salaried positions globally, which is about 10% of its workforce, as it seeks to save $600 million a year. 

Walgreens Boots Alliance’s fiscal third-quarter earnings surpassed analysts’ estimates, as the pharmacy retail giant bounced back with strong prescription drug sales. Walgreens reported adjusted earnings of $1.47 a share for the quarter ended May 31, compared to analysts’ expectations of $1.43. Revenue of $34.59 billion also came in higher than analysts’ estimates of $34.46 billion.Three analysts polled by Refinitiv had expected a 2.9% rise in same-store sales. CEO Stefano Pessina emphasized that after a challenging second quarter, Walgreen has been able to improve its performance in the third quarter and has progressed in line with the goals set.    

The rally in oil prices has caused a number of energy related ETFs to jump as well.  The Direxion Daily Energy Bull 3X Shares (NYSE: ERX) has rallied from the $15.50 level to a high of $20.11 on June 21.In addition to the extremely high confidence level, 100% of past predictions on the ERX have been successful. 

Wilmington Trust’s chief economist believes the market rally’s foundation is on shaky ground. With the S&P 500 seeing its best June since 1955, Luke Tilley warns that investors are getting excessively optimistic on U.S.-China trade talks and Federal Reserve policy.