Here are five things you need to know this morning
Apple underwhelms: Apple has underwhelmed investors. At its closely watched developer conference yesterday, the tech giant announced a new operating system, as well as several new artificial intelligence features coming to its devices. Live translation will become a feature on Apple’s Messages, Phone and Face-time apps, when users are communicating with someone who does not speak the same language. And a visual intelligence feature will be able to analyze on-screen images and text. Apple has been under pressure to improve its artificial-intelligence capabilities. The market was unimpressed, as Apple shares dropped by 1.2 per cent.
McDonalds cut to sell: Shares of McDonalds came under pressure in premarket trading after a U.S. brokerage cut its rating on the stock to sell. Analysts at Redburn Atlantic say weight-loss drugs are suppressing consumer appetites and pose a long-term challenge to sales at the fast-food giant. The analysts are also seeing other headwinds to U.S. restaurants, including consumers showing signs of fatigue after years of menu inflation, as well as tariffs driving up prices and pressuring brands with limited pricing power. Redburn also launched coverage of Domino’s Pizza with a sell rating.
Tariffs weigh on Smucker: Shares of J.M. Smucker traded down about nine per cent in the premarket. The owner of Folgers coffee and Milk-Bone dog treats revealed a profit outlook for the fiscal year that missed analyst expectations. Smucker’s coffee business is facing disruptions from U.S. tariffs… the company plans to respond by raising prices. However, the company is already facing pushback on that front. Last week Loblaws said it would remove Folgers coffee from its shelves after Smucker proposed “significant” price increases.
Cineplex revenue rises: Box office revenue at Cineplex rose in the month of May, an increase of 63 per cent from the same month last year. The Canadian movie-theatre chain says the strength was driven by films like ‘Final Destination - Bloodlines’ and ‘Lilo and Stitch.’ Cineplex expects the momentum to continue into June.
Royal Bank share buyback: Shares of Royal Bank could be on the move today. The Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions have approved the bank’s plan to buy back up to 35 million of its common shares.
