M360 Roundup - Volume 85
May 5th - 8th, 2025
Cole LaCour
With 90% of S&P 500 companies having reported, 78% have beaten earnings expectations, delivering an average upside surprise of 8.6%
The S&P 500 is up 0.05%, the Nasdaq is up 0.48%, and the Dow Industrials is up 0.21% WTD
The 10-Yr U.S. Treasury yield has increased +0.053% to a current yield of 4.361%, whereas the 30-Yr U.S. Treasury yield increased +0.046% to a current yield of 4.824%
Crude oil prices increased 8.24% to a current $60.70/bbl while bitcoin decreased 8.82% to a current $102,866.50/coin
Car insurance rate cuts are being delayed as insurers grow cautious over potential cost inflation from new tariffs, with filings for rate decreases dropping sharply in April amid uncertainty about future claims expenses [WSJ]
Wall Street is closely tracking shipping and logistics data—like falling container bookings, canceled sailings, and declining truck orders—to gauge the early economic impact of Trump’s tariffs, which are already disrupting global trade flows and pressuring the transportation sector [WSJ]
While Trump’s tariffs are pressuring Big Pharma to boost U.S. production, experts argue targeted tax reforms—like lower rates for domestic manufacturing and restored R&D deductions—would be a more effective long-term strategy to bring pharmaceutical investment back home [WSJ]
M&A activity continues to remain mixed
Coinbase agreed to acquire crypto derivatives exchange Deribit for $2.9B
Real estate analytics firm CoStar agreed to acquire real estate portal Domain Holdings Australia at a $1.9B valuation
Japanese motor manufacturer Nidec withdrew its $1.8B hostile tender offer for machine tool maker Makino Milling Machine after facing strong resistance
UK engineering firm Smiths Group is pressing ahead with plans to sell its $1.3B electrical connectors unit in first step towards a break-up
French utilities Veolia will acquire the remaining 30% stake in its Water Technologies and Solutions unit from Canada's CDPQ for $1.75B
PE firm CVC is exploring an $8B take-private of Swiss duty-free retailer Avolta
Infrastructure investor I Squared Capital agreed to acquire a majority stake in the Matterhorn Express Pipeline alongside partners from Ridgemont and Devon at a ~$5B valuation, including debt
DoorDash agreed to acquire UK-based food-delivery platform Deliveroo for $3.9B cash, a 29% premium
DoorDash will also acquire hospitality software company SevenRooms for $1.2B cash
Japanese drugmaker Shionogi plans to acquire Torii Pharmaceutical for ~$1B via a tender offer and stake purchase from Japan Tobacco, which owns ~53%
Recent developments across four key industries highlight:
Energy & Natural Resources
U.S. crude oil stockpiles fell by 2 million barrels last week—more than expected—amid lower production, while gasoline inventories unexpectedly rose for the first time in 10 weeks as demand declined [WSJ]
Warren Buffett’s $6.4 billion bet on Occidental Petroleum is under pressure as falling oil prices drag the stock to multi-year lows, raising questions about Berkshire Hathaway’s next move with its 28% stake [WSJ]
ConocoPhillips slightly raised Q1 earnings but cut its 2025 capital spending forecast to $12.3–$12.6 billion amid economic volatility, despite 5% production growth and strong performance in the Eagle Ford shale [WSJ]
Technology, Media, & Telecommunications
SMIC’s quarterly profit more than doubled to $188 million on strong chip demand driven by Beijing’s stimulus and front-loaded orders, though results missed forecasts and the company warned of weaker demand and pricing pressure ahead [WSJ]
Google's dominance in search is showing cracks as AI tools like ChatGPT chip away at traffic, triggering a $250 billion market cap drop and fueling concerns over both competitive disruption and looming antitrust breakup risks [WSJ]
Healthcare & Life Sciences
President Trump plans to nominate wellness influencer Casey Means, a leader in the “Make America Healthy Again” movement with controversial views on medicine and public health, as the next U.S. surgeon general, signaling a major shift in health policy direction [WSJ]
Dr. Eric Topol’s research on longevity shows that lifestyle choices—like regular exercise, quality sleep, a whole-food diet, and increased protein intake—play a far greater role in healthy aging than genetics, offering practical, science-backed strategies for living longer and better [WSJ]
Financial Services
Coinbase is acquiring crypto derivatives giant Deribit for $2.9 billion in cash and stock to expand its global reach and become the leading player in crypto options trading, amid a surge in industry dealmaking under a more crypto-friendly U.S. administration [WSJ]
The Fed is holding off on rate cuts, unlike other central banks, due to lingering inflation risks from Trump’s tariffs, with Chair Powell emphasizing a cautious "wait and see" approach rather than pre-emptively easing amid economic uncertainty [WSJ]