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Writer's pictureSimon Charles Hooper

03/08/22 Briefing




The S&P 500 futures are up 21 points and are trading 0.5% above fair value. The Nasdaq 100 futures are up 64 points and are trading 0.4% above fair value. The Dow Jones Industrial Average futures are up 144 points and are trading 0.6% above fair value.

Futures for the major indices are trading higher with a measure of relief that China's response to Speaker Pelosi's Taiwan visit was not more consequential. Attention has also shifted to earnings news which is generally better-than-feared.

In other news, St. Louis Fed President Bullard (FOMC voter) said after yesterday's close that he thinks a soft landing is possible but the Fed will need to keep raising interest rates. He thinks the target range should be 3.75%-4.00% by the end of the year.

Also, OPEC+ is meeting today and there has been speculation that it will increase its production quota.

Oil prices are moving higher this morning. WTI crude oil futures are up 0.6% to $95.00/bbl. Unleaded gasoline futures are up 1.6% to $3.11/gal. Natural gas futures are up 1.0% to $7.78.

Treasury yields are rising. The 2-yr note yield is up two basis points to 3.09% while the 10-yr note yield is up three basis points to 2.78%.

There's several economic data releases this morning with the focal point being the July ISM Non-Manufacturing Index (Briefing.comconsensus 53.8%; prior 55.3%) at 10:00 a.m. ET.  

In corporate news:

  • Advanced Micro Devices (AMD 93.40, -5.89, -5.9%): beats by $0.01, reports revs in-line; guides Q3 revs in-line; reaffirms FY22 revs guidance

  • CVS Health (CVS 98.84, +3.47, +3.6%): beats by $0.22, beats on revs; raises FY22 EPS guidance above consensus

  • PayPal (PYPL 101.29, +11.66, +13.0%): beats by $0.06, reports revs in-line; guides Q3 EPS in-line, revs below consensus; raises FY22 EPS guidance; lowers FY22 revenue guidance; confirms $2 bln stake from Elliott, enters Information Sharing Agreement

  • Starbucks (SBUX 85.20, +1.49, +1.7%): beats by $0.08, reports revs in-line, US comps of +9%; Q4 (Sep) guidance remains suspended

  • Airbnb (ABNB 108.51, -7.83, -6.7%): beats by $0.13, reports revs in-line; guides Q3 revs above consensus; provides other metrics for Q3 guidance

  • Match Group (MTCH 60.97, -15.74, -20.5%): reports Q2 (Jun) results, misses on revs; guides Q3 revs below consensus

  • RingCentral (RNG 54.00, +4.30, +8.6%):  beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY22 EPS above consensus, reaffirms FY22 revs guidance

  • Regeneron Pharma (REGN 586.28, +11.32, +1.9%):  beats by $1.02, beats on revs

  • AmerisourceBergen (ABC 150.00, +7.19, +5.0%): beats by $0.06, beats on revs; raises FY22 EPS in-line

  • Ping Identity (PING 27.95, +10.48, +60.0%): to be acquired by Thoma Bravo for $2.8 bln, or $28.50/share in all-cash deal; misses by $0.22, misses on revs; also announced that company entered into definitive agreement to be acquired by Thomas Bravo for $28.50/share

  • Moderna (MRNA 168.97, +8.16, +5.0%): beats by $0.75, beats on revs

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: -0.7%, India's Sensex: +0.4%, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: -0.2%.

    • In economic data:

      • China's July Caixin Services PMI 55.5 (last 54.5)

      • Japan's July Services PMI 50.3 (last 54.0)

      • Hong Kong's July Manufacturing PMI 52.3 (last 52.4)

      • India's July Nikkei Services PMI 55.5 (expected 58.5; last 59.2)

      • Australia's July AIG Construction Index 45.3 (last 46.2). June Retail Sales 0.2% m/m, as expected (last 0.9%) and Q2 Retail Sales 1.4% qtr/qtr (expected 1.2%; last 1.0%). July Services PMI 50.9 (last 52.6)

      • New Zealand's Q2 Employment Change 0.0% qtr/qtr (expected 0.4%; last 0.0%). Q2 Labor Cost Index 1.3% qtr/qtr (expected 1.1%; last 0.7%); 3.4% yr/yr (expected 3.3%; last 3.1%). Q2 Unemployment Rate 3.3% (expected 3.1%; last 3.2%)

    • In news:

      • Japan's Defense Ministry will reportedly request a record high budget for FY23.

      • House Speaker Pelosi is visiting South Korea today.

      • FT reported that Samsung and SK Hynix are reconsidering investments in China after the passage of the Chips Act in the U.S.

      • China's Caixin Services PMI reached its highest level since April 2021 in the July reading.

  • Major European indices trade in the green. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.5%.

    • In economic data:

      • Eurozone's June PPI 1.1% m/m (expected 1.0%; last 0.5%); 35.8% yr/yr (expected 35.7%; last 36.2%). June Retail Sales -1.2% m/m (expected 0.1%; last 0.4%); -3.7% yr/yr (expected -1.7%; last 0.4%). July Services PMI 51.2 (expected 50.6; last 53.0)

      • Germany's June trade surplus EUR6.40 bln (expected surplus of EUR200 mln; last surplus of EUR800 mln). June Imports 0.2% m/m (expected 1.3%; last 3.2%) and Exports 4.5% m/m (expected 1.0%; last 1.3%)

      • U.K.'s July Services PMI 52.6 (expected 53.3; last 54.3) o France's July Services PMI 53.2 (expected 52.1; last 53.9)

      • Italy's June Retail Sales -1.1% m/m (last 2.0%); 1.4% yr/yr (last 6.8%). July Services PMI 48.4 (expected 50.1; last 51.6)

      • Spain's July Services PMI 53.8 (expected 52.0; last 54.0)

      • Swiss July CPI 0.0% m/m (expected -0.1%; last 0.5%); 3.4% yr/yr (expected 3.5%; last 3.4%)

    • In news:

      • German Chancellor Scholz warned that further reductions of the supply of energy to Europe should be expected.

      • Liz Truss is reportedly ahead of Rishi Sunak in the race to lead the U.K.'s Conservative party.

      • BMW lowered its production forecast for the year. Societe Generale reported better than expected results for Q2.

U.S. equity futures:

  • S&P 500 Futures: +19 @ 4,110

  • DJIA Futures: +140 @ 32,536

  • Nasdaq 100 Futures: +62 @ 12,964

Overseas:

  • Europe: DAX +0.3%, FTSE +0.1%, CAC +0.4%

  • Asia: Nikkei +0.5%, Hang Seng +0.4%, Shanghai Composite -0.7%

Commodities:

  • Crude Oil +0.97 @ 95.39

  • Nat Gas  +0.092 @ 7.798

  • Gold -8.80 @ 1780.90

  • Silver -0.116  @ 19.973

  • Copper -0.0128 @ 3.5057

U.S. Summary:

  • Earnings/Guidance:

    • A10 Networks (ATEN) beats by $0.02, reports revs in-line; reaffirms FY22 revs guidance

    • Advanced Micro (AMD) beats by $0.01, reports revs in-line; guides Q3 revs in-line; reaffirms FY22 revs guidance

    • Airbnb (ABNB) beats by $0.13, reports revs in-line; guides Q3 revs above consensus; provides other metrics for Q3 guidance

    • Alteryx (AYX) beats by $0.14, beats on revs; guides Q3 EPS mostly above consensus, revs above consensus; guides FY22 EPS mostly above consensus, revs above consensus

    • AmerisourceBergen (ABC) beats by $0.06, beats on revs; raises FY22 EPS in-line

    • Andersons (ANDE) beats by $1.36, beats on revs

    • Alight (ALIT) reports EPS in-line, revs in-line; guides Q3 revs in-line; guides Q4 (Dec) revs in-line; guides FY22 EPS in-line, revs in-line; Board authorizes $100 mln stock repurchase plan

    • Artisan Partners Asset Mgmt (APAM) misses by $0.06, reports revs in-line

    • Assurant (AIZ) beats by $0.07, misses on revs; provides outlook

    • AtriCure (ATRC) misses by $0.03, beats on revs; guides FY22 EPS in-line, revs in-line

    • Autohome (ATHM) beats by $0.07, reports revs in-line

    • Avid Tech (AVID) beats by $0.01, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY22 EPS in-line, revs in-line

    • Avista (AVA) misses by $0.01; reaffirms FY22 EPS guidance; reaffirms FY23 EPS guidance

    • Belden (BDC) beats by $0.19, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY22 EPS above consensus, revs above consensus

    • Berry Global (BERY) beats by $0.07, misses slightly on revs; guides FY22 EPS above consensus

    • Blackbaud (BLKB) beats by $0.08, reports revs in-line; guides FY22 EPS below consensus, revs below consensus due to evolving macroeconomic conditions

    • BorgWarner (BWA) beats by $0.19, beats on revs; guides FY22 EPS in-line

    • Brightcove (BCOV) beats by $0.05, beats on revs; guides Q3 EPS in-line, revs below two analyst estimate; guides FY22 EPS in-line, revs in-line

    • Bright Horizons (BFAM) beats by $0.01, misses on revs; lowers FY22 EPS below consensus, revs below consensus

    • Brinks (BCO) beats by $0.10, beats on revs; reaffirms FY22 EPS guidance, revs guidance

    • Caesars Entertainment (CZR) reports Q2 (Jun) results, beats on revs

    • Camping World (CWH) beats by $0.37, beats on revs

    • Cardiovascular Systems (CSII) misses by $0.04, reports revs in-line; guides FY23 revs in-line

    • Cardlytics (CDLX) misses by $0.15, reports revs in-line; expects 2H22revenue growth of +10-15% yr/yr

    • CDW (CDW) beats by $0.07, reports revs in-line

    • Cedar Fair (FUN) reports Q2 (Jun) results, misses on revs

    • Charles River (CRL) beats by $0.03, misses on revs; guides FY22 EPS below consensus, revs below consensus due to headwinds associated with CDMO business, foreign exchange, and interest expense

    • Chesapeake Energy (CHK) beats by $1.14; also says it is solidifying its strategic focus on the two premier North American shale gas plays

    • Cirrus Logic (CRUS) beats by $0.29, beats on revs; guides SepQ revs in-line; announces $500 mln buyback

    • Clean Harbors (CLH) beats by $0.93, beats on revs; raises FY22 adjusted EBITDA guidance

    • Cognex (CGNX) misses by $0.08, misses on revs; guides Q3 revs below consensus due to supply disruptions and lower expected e-commerce logistics revs

    • Conduent (CNDT) misses by $0.02, reports revs in-line; guides FY22 revs in-line; decides to keep Transportation business

    • CoreCivic (CXW) misses by $0.02, reports revs in-line

    • Coterra Energy (CTRA) beats by $0.07, beats on revs

    • Criteo (CRTO) beats by $0.15, misses on revs; guides Q3 revs in-line; expects FY22 revs to grow +11-14% at constant currency

    • CVS Health (CVS) beats by $0.22, beats on revs; raises FY22 EPS guidance above consensus

    • Dana Inc (DAN) misses by $0.17, beats on revs; guides FY22 EPS below consensus, revs in-line

    • DCP Midstream (DCP) beats by $0.46, misses on revs

    • Denny's (DENN) misses by $0.03, beats on revs, domestic system-wide same-store sales up +2.5%

    • DISH Network (DISH) beats by $0.16, reports revs in-line

    • DT Midstream (DTM) misses by $0.08; Reaffirms adjusted EBITDA guidance for 2022 and 2023

    • Dynatrace (DT) beats by $0.01, beats on revs; guides Q2 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs in-line

    • Editas Medicine (EDIT) beats by $0.02, beats on revs

    • Electronic Arts (EA) beats by $0.16, beats on revs; guides Q2 EPS above consensus, revs below consensus; reaffirms FY23 EPS guidance, revs guidance

    • Entergy (ETR) beats by $0.38; reaffirms FY22 EPS guidance

    • Everi (EVRI) beats by $0.01, beats on revs

    • Exact Sciences (EXAS) beats by $0.07, beats on revs; guides FY22 revs in-line

    • Exelon (EXC) misses by $0.02, beats on revs; reaffirms FY22 EPS guidance

    • Extra Space Storage (EXR) beats by $0.09, beats on revs; guides FY22 FFO above consensus

    • Fidelity National (FNF) beats by $0.30, misses on revs

    • FMC Corp (FMC) beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY22 EPS in-line, revs above consensus

    • Fresh Del Monte (FDP) misses by $0.31, beats on revs

    • Freshworks (FRSH) beats by $0.01, beats on revs; guides Q3 EPS midpoint below consensus, revs below consensus; guides FY22 EPS in-line, revs mostly below consensus

    • Generac (GNRC) beats by $0.36, beats on revs; reaffirms FY22 net sales guidance including currency impacts

    • Gibraltar Industries (ROCK) beats by $0.16, reports revs in-line; guides FY22 EPS in-line, revs in-line

    • Gilead Sciences (GILD) beats by $0.06, beats on revs; guides FY22 EPS in-line; announces dividend

    • GXO Logistics (GXO) beats by $0.06, beats on revs; reaffirms FY22 EPS guidance, raises FY22 organic revenue growth guidance

    • Hanover Insurance (THG) beats by $0.17, beats on revs

    • Healthpeak (PEAK) beats by $0.01, beats on revs; guides FY22 FFO in-line

    • Herbalife Nutrition (HLF) beats by $0.33, beats on revs; guides Q3 EPS in-line, revs in-line; lowers FY22 EPS guidance, reaffirms FY22 revs guidance; key performance indicators have stabilized; also announces Herbalife One digital platform

    • Hillman Solutions Corp. (HLMN) beats by $0.04, misses on revs; expects to be at low-end of prior FY22 revenue guidance

    • Horizon Pharma (HZNP) misses by $0.26, misses on revs; guides FY22 revs below consensus

    • Ingevity (NGVT) beats by $0.11, beats on revs; reaffirms FY22 revs guidance; also to acquire Ozark Materials; also announces $60 mln investment with Nexeon

    • Innospec (IOSP) beats by $0.22, beats on revs

    • Inspire Medical Systems (INSP) beats by $0.10, beats on revs; raises FY22 revs guidance above consensus

    • Intercept Pharma (ICPT) reports Q2 (Jun) results, misses on revs

    • J&J Snack Foods (JJSF) misses by $0.19, beats on revs

    • Kadant (KAI) beats by $0.19, reports revs in-line; guides Q3 revs below consensus; reaffirms FY22 EPS guidance, guides FY22 revs in-line

    • KAR Auction Services (KAR) misses by $0.03, beats on revs; lowers FY22 adjusted EBITDA guidance

    • Knowles (KN) beats by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus; also announces restructuring program to further decrease exposure to the commodity MEMS microphone business

    • Littelfuse (LFUS) beats by $0.21, beats on revs; guides Q3 EPS below consensus, revs above consensus; increases dividend 13%

    • LivaNova (LIVN) beats by $0.01, beats on revs; guides FY22 EPS below consensus

    • Livent (LTHM) beats by $0.07, beats on revs; raises FY22 revs in-line

    • LL Flooring Holdings (LL) misses by $0.10, misses on revs

    • LPL Financial (LPLA) beats by $0.29, misses on revs

    • Magnolia Oil & Gas (MGY) beats by $0.17, beats on revs; expects FY22 production to grow by +12-14% yr/yr

    • Mandiant (MNDT) misses by $0.03, beats on revs; previously announced will be acquired by Google (GOOG)

    • Match Group (MTCH) reports Q2 (Jun) results, misses on revs; guides Q3 revs below consensus

    • Materion (MTRN) beats by $0.04, misses on revs; reaffirms FY22 EPS guidance

    • Mercury (MRCY) misses by $0.17, misses on revs; guides SepQ EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus

    • Meritor (MTOR) beats by $0.19, beats on revs; acquisition by Cummins (CMI) expected to close by end of calendar year

    • Microchip (MCHP) beats by $0.03, reports revs in-line; guides Q2 EPS above consensus, revs above consensus

    • MicroStrategy (MSTR) reports large miss, reports revs in-line; Announces Separation of Chairman and CEO Roles

    • Moderna (MRNA) beats by $0.75, beats on revs

    • New York Times (NYT) beats by $0.05, reports revs in-line

    • Nintendo (NTDOY) reports Q1 results; revs rise 5% yr/yr

    • NiSource (NI) reports EPS in-line; reaffirms FY22 EPS guidance

    • NMI Hldgs (NMIH) beats by $0.10, beats on revs

    • Now (DNOW) beats by $0.09, beats on revs; guides FY22 revs above consensus

    • Oak Street Health (OSH) misses by $0.21, reports revs in-line; guides Q3 revs in-line; raises FY22 revs guidance

    • Occidental Petro (OXY) beats by $0.13, beats on revs

    • ODP Corporation (ODP) beats by $0.33, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance

    • O-I Glass (OI) beats by $0.07, beats on revs; guides Q3 EPS in-line; raises FY22 EPS guidance

    • OneSpan (OSPN) misses by $0.01, beats on revs; reaffirms FY22 revs guidance

    • Owens & Minor (OMI) misses by $0.02, misses on revs; lowers FY22 guidance

    • Parsons (PSN) reports EPS in-line, beats on revs; guides FY22 revs above consensus

    • Paycom Software (PAYC) beats by $0.14, beats on revs; guides Q3 revs above consensus; guides FY22 revs above consensus

    • PayPal (PYPL) beats by $0.06, reports revs in-line; guides Q3 EPS in-line, revs below consensus; raises FY22 EPS guidance; lowers FY22 revenue guidance; confirms $2 bln stake from Elliott, enters Information Sharing Agreement

    • PennyMac (PFSI) beats by $1.45, beats on revs

    • Perion Network (PERI) beats by $0.11, reports revs in-line; guides FY22 revs in-line

    • Ping Identity (PING) misses by $0.22, misses on revs; also announced that company entered into definitive agreement to be acquired by Thomas Bravo for $28.50/share

    • Pioneer Natural Resources (PXD) beats by $0.56, beats on revs

    • Proterra (PTRA) misses by $0.19, beats on revs; guides FY22 revs in-line

    • Prudential (PRU) misses by $0.59

    • Regeneron Pharma (REGN) beats by $1.02, beats on revs

    • RingCentral (RNG) beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY22 EPS above consensus, reaffirms FY22 revs guidance

    • Robinhood Markets (HOOD) reports EPS in-line, misses on revs; to reduce headcount by 23%

    • Sarepta Therapeutics (SRPT) reports Q2 (Jun) results, beats on revs; guides FY22 revs above consensus

    • Scotts Miracle-Gro (SMG) beats by $0.26, misses on revs; guides FY22 EPS below consensus, revs above consensus

    • SeaSpine (SPNE) misses by $0.01, beats on revs; raises FY22 revs guidance above consensus

    • Service Corp (SCI) beats by $0.05, beats on revs; reaffirms FY22 EPS guidance

    • Sinclair Broadcast (SBGI) misses by $0.07, reports revs in-line; guides Q3 revs below consensus

    • SiteOne Landscape Supply (SITE) beats by $0.08, misses on revs; raises FY22 adj. EBITDA range

    • Skyline Champion (SKY) beats by $0.46, beats on revs

    • SoFi Technologies (SOFI) misses by $0.02, beats on revs; guides FY22 revs above consensus

    • SolarEdge Technologies (SEDG) misses by $0.45, reports revs in-line; guides Q3 revs in-line

    • Sprout Social (SPT) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY22 EPS above consensus, revs above consensus

    • Starbucks (SBUX) beats by $0.08, reports revs in-line, US comps of +9%; Q4 (Sep) guidance remains suspended

    • Steris (STE) reports EPS in-line, misses on revs; guides FY23 EPS below consensus

    • Stratasys (SSYS) beats by $0.03, reports revs in-line; reaffirms FY22 EPS guidance, lowers FY22 revs below consensus

    • Tradeweb Markets (TW) beats by $0.01, reports revs in-line

    • Trane (TT) beats by $0.06, beats on revs; raises FY22 guidance

    • Triumph Group (TGI) beats by $0.01, beats on revs; lowers FY23 EPS below consensus; guides FY23 revs toward higher end of prior range

    • TrueCar (TRUE) reports in-line results; misses on revs

    • Tupperware (TUP) beats by $0.19, beats on revs

    • Under Armour (UAA) reports EPS in-line, beats on revs; lowers FY23 EPS below consensus, maintains revs in-line

    • Unum Group (UNM) beats by $0.69, beats on revs

    • Varex Imaging (VREX) beats by $0.12, beats on revs; guides Q4 EPS in-line, revs in-line

    • Veracyte (VCYT) beats by $0.09, beats on revs; raises FY22 guidance

    • Verisk Analytics (VRSK) beats by $0.12, reports revs in-line

    • Vertiv (VRT) reports EPS in-line, beats on revs; guides Q3 EPS below consensus, revs in-line; guides Q4 (Dec) EPS above consensus, revs above consensus

    • ViewRay (VRAY) reports EPS in-line, beats on revs; raises bottom end of FY22revs outlook

    • Voya Financial (VOYA) beats by $0.45, beats on revs

    • Waste Connections (WCN) beats by $0.05, beats on revs; raises FY22revs outlook

    • Yum! Brands (YUM) misses by $0.04, reports revs in-line; Same Store Sales were +1%

  • General News:

    • China plans for live fire military drills could blockade Taiwan. House Speaker Nancy Pelosi reaffirmed an "ironclad" US commitment to Taiwan (she has now departed the country), according to Financial Times

    • Saint Louis Fed President James Bullard (voting FOMC member) says rates will need to be higher for longer if inflation does not go down, according to Reuters

    • Senators planning to propose legislation that would allow Commodity Futures Trading Commission to regulate large cryptocurrency products, according to the Wall Street Journal

    • Airbnb (ABNB) announces $2 bln buyback program

    • Air Lease (AL) announces long-term lease placements for two new Airbus A321neo aircraft with Qanot Sharq Airlines, the first privately-owned airline in Uzbekistan

    • Alnylam Pharma's (ALNY) APOLLO-B Phase 3 study of patisiran met primary endpoint

    • Axonics Modulation (ANXN) commences 1.75 mln common stock offering

    • Bioventus (BVS) announces that the US Food and Drug Administration has granted 510(k) clearance for the company's neXus SonaStar Elite handpiece

    • Cedar Fair (FUN) declares cash distribution of $0.30 per limited partner unit; authorizes $250 million unit repurchase program

    • Codexis (CDXS) and Molecular Assemblies announce the execution of a Commercial License and Enzyme Supply Agreement, enabling Molecular Assemblies to utilize an evolved terminal deoxynucleotidyl transferase enzyme in Molecular Assemblies' Fully Enzymatic Synthesis technology

    • Coherus BioSciences (CHRS) receives FDA approval for CIMERLI

    • CytoSorbents (CTSO) and Fresenius Medical Care (FMS) have expanded their partnership by establishing a multi-stage global collaboration to combat life-threatening diseases in critical care for an initial term of three years

    • Enterprise Products (EPD) expands in Permian Basin; expands natural gas and NGL pipelines

    • Ethan Allen (ETD) declares special cash dividend to $0.50/share

    • Exact Sciences (EXAS) has entered a collaboration agreement with the West German Study Group

    • Ford Motor (F) reports Customer Deliveries Now Stretch Across All 50 U.S. States

    • ICF International (ICFI): The U.S. Department of Health and Human Services' Centers for Medicare & Medicaid Services recently selected global consulting and digital services provider ICF for a $33 mln recompete contract to provide digital modernization services to its Office of Information Technology

    • KBR (KBR) and McDermott Int'l enter licensing agreement for ammonia

    • Kiniksa Pharmaceuticals (KNSA) announces a global license agreement with Roche (RHHBY) and Genentech for the rights to develop and commercialize vixarelimab

    • Merck (MRK): Phase 3 KEYNOTE-921 trial evaluating KEYTRUDA (pembrolizumab) did not meet dual primary endpoints

    • ModivCare (MODV) tags CFO Heath Sampson as Interim CEO; Daniel E. Greenleaf is no longer serving as CEO

    • Nikola Corporation (NKLA) shareholders approve Proposal 2, allowing the company to increase the number of authorized shares from 600 mln to 800 mln

    • Now's (DNOW) Board of Directors authorized the Company's inaugural common stock repurchase program pursuant to which the Company may purchase up to $80 mln of NOW Inc.'s common stock, effective immediately and continuing through December 31, 2024

    • PayPal (PYPL) announces $15 bln share repurchase authorization

    • PayPal (PYPL) in its Q2 shareholder letter noted that it is entering into an information sharing agreement with Elliott Investment Management

    • Poseida Therapeutics (PSTX) and Roche Hldg (RHHBY) announce collaboration on allogeneic CAR-T cell therapies for hematologic malignancies

    • Regeneron Pharma (REGN) announces encouraging initial data from an ongoing Phase 1/2 trial investigating REGN5678, a novel PSMAxCD28 costimulatory bispecific antibody, in combination with the company's PD-1 inhibitor Libtayo in advanced metastatic castration-resistant prostate cancer

    • RenaissanceRe (RNR) approves a renewal of RenaissanceRe's authorized share repurchase program, bringing the total current authorization up to $500.0 mln, which includes the remaining amounts under prior authorizations

    • Rigel Pharma (RIGL) and Forma Therapeutics (FMTX) have entered into an exclusive, worldwide license agreement to develop, manufacture and commercialize olutasidenib, an oral, small molecule inhibitor of mIDH1 being investigated for the treatment of relapsed/refractory acute myeloid leukemia and other malignancies

    • Signify Health (SGFY) ticks lower on report it is working with bankers to explore strategic alternatives, according to

    • Teva Pharma (TEVA) is facing supply disruptions for ADHD medication Adderall which could last anywhere from weeks to months, according to Bloomberg

    • Tilray (TLRY) announces that Fresh Hemp Foods, a part of the Company's Tilray Wellness division, has signed a distribution agreement with Southern Glazer's Wine & Spirits, the preeminent distributor of wine and spirits

    • Warrior Met Coal (HCC) declares a special cash dividend of $0.80/share

  • M&A:

    • Apollo (APO) could acquire Atlas Air Worldwide (AAWW) for $102.50/share, according to Bloomberg

    • BorgWarner (BWA) acquires Rhombus Energy Solutions

    • Braskem SA (BAK) signed an agreement for acquisition of shares and subscription for new shares issued by Wise Plsticos S.A. amounting to 61.1% ownership interest

    • Ingevity (NGVT) invested $60 million to acquire an equity stake in Nexeon

    • Ingevity (NGVT) to acquire privately-owned Ozark Materials in an all-cash transaction valued at $325 million

    • MDxHealth SA (MDXH) has acquired Oncotype DX GPS test from Exact Sciences (EXAS)

    • NortonLifeLock (NLOK): UK CMA provisionally clears NortonLifeLock / Avast merger

    • Ping Identity (PING) to be acquired by Thoma Bravo for $2.8 bln, or $28.50/share in all-cash deal

    • Sierra Wireless (SWIR): Semtech (SMTC) confirms press reports, to acquire SWIR for $31/share; to be accretive to SMTC's earnings within 12-18 months

    • Twitter (TWTR) is asking banks for evidence that Elon Musk tried to kill financing for M&A deal, according to Reuters

    • UnitedHealth (UNH) is having issues with sale of its Brazil unit, according to Reuters

  • Syndicate

    • Arcutis Biotherapeutics (ARQT) prices 7.5 mln shares of common stock at $20.00 per share

    • Axonics Modulation (AXNX) prices offering of 1.75 mln shares of common stock

    • Infinera (INFN) commences $275 mln convertible notes offering

    • Mercer Intl (MERC) files for $750 mln mixed securities shelf offering

    • Synovus (SNV) files mixed securities shelf offering

  • IPOs:

    • Expected to Price:

      • No IPOs expected.

Gapping Up/Down

  • Gapping up:

    • PYPL +11.8%, CRNT +11.5%, AYX +11.3%, CHRS+10.3%, SOFI +9.7%, EVH +9.6%, ARQT +7.9%, SWIR+7.4%, HLF +7.4%, UNM +7%, RIGL +6.9%, GXO+6.3%, ANDE +6.2%, RNG +5.7%, CWH +5.5%, EPD+5.4%, PFSI +5%, SPNE +4.2%, NKLA +3.7%, PERI+3.4%, SQ +3.3%, ETD +3.1%, PTRA +3%, HCC+2.6%, CTSO +2.6%, DISH +2.3%, LPLA +2.2%, NMIH+2.2%, FRSH +2.2%, ASTR +1.9%, GILD +1.9%, NDAQ+1.8%, AVNW +1.8%, PAYC +1.7%, CHK +1.7%, STAR+1.6%, SBUX +1.5%, INSP +1.5%, VRSK +1.5%, SMTC+1.4%, HOOD +1.4%, ATEN +1.4%, PFHC +1.3%, DCP+1.2%, CDXS +1.1%, TEVA +1%, WCN +1%

  • Gapping down:

    • MTCH -22%, KN -14.8%, APAM -12.6%, SEDG-12.2%, CGNX -10.9%, CDLX -9%, AVID -8.2%, MRCY-7.2%, ABNB -7.1%, BFAM -6.9%, STE -5.5%, AMD-5.1%, OSH -5.1%, EXAS -5.1%, CNDT -5%, DENN-5%, NGVT -5%, BMBL -4.2%, EGY -4.2%, EVRI-3.9%, MGY -3.2%, AXNX -3.1%, CZR -3%, PRU-2.9%, SRPT -2.7%, EXPI -2.7%, EXPE -2%, CXW-1.8%, SGFY -1.7%, UTHR -1.7%, KAI -1.6%, OI-1.6%, SCI -1.5%, PUMP -1.5%, BKNG -1.3%, ENPH-1.2%, VOYA -1.1%, VRT -1%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Apollo Investment (AINV) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $13.50

    • Atlas Air Worldwide (AAWW) upgraded to Peer Perform from Underperform at Wolfe Research

    • CF Industries (CF) upgraded to Buy from Neutral at Citigroup; tgt $117

    • Clearwater Paper (CLW) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $45

    • Coca-Cola European Partners (CCEP) upgraded to Buy from Neutral at UBS; tgt raised to $68

    • Cognex (CGNX) upgraded to Outperform from Mkt Perform at Bernstein; tgt $65

    • Mosaic (MOS) upgraded to Buy from Neutral at Citigroup; tgt $61

    • Sealed Air (SEE) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $70

    • Uber (UBER) upgraded to Outperform from Mkt Perform at Raymond James; tgt $38

    • Xylem (XYL) upgraded to Neutral from Underperform at Credit Suisse; tgt raised to $96

  • Downgrades:

    • Caterpillar (CAT) downgraded to Mkt Perform from Outperform at Bernstein; tgt $195

    • Esperion Therapeutics (ESPR) downgraded to Underperform from Neutral at Credit Suisse; tgt lowered to $6

    • First Commonwealth (FCF) downgraded to Equal-Weight from Overweight at Stephens; tgt $15.50

    • Harmony Biosciences (HRMY) downgraded to Hold from Buy at Jefferies; tgt $57

    • Hydrofarm Holdings (HYFM) downgraded to Neutral from Overweight at JP Morgan

    • Incyte (INCY) downgraded to Neutral from Buy at Guggenheim

    • Knowles (KN) downgraded to Neutral from Buy at ROTH Capital; tgt lowered to $17

    • Olaplex (OLPX) downgraded to Equal Weight from Overweight at Barclays; tgt $16

    • Sierra Wireless (SWIR) downgraded to Hold from Buy at Canaccord Genuity

  • Others:

    • ImmunityBio (IBRX) initiated with a Buy at Jefferies; tgt $8

    • Kymera Therapeutics (KYMR) initiated with a Buy at Goldman; tgt $40

    • ModivCare (MODV) initiated with an Overweight at Stephens; tgt $145

    • Trip.comGroup (TCOM) placed on 90-day Positive Catalyst Watch at Citigroup

Upcoming Events:

  • Econ Data:

    • 07:00 ET: MBA Mortgage Applications Index for July 30 (Briefing.comConsensus NA; Prior -1.8%)

    • 09:45 ET: IHS Markit Services PMI - Final for July (Briefing.comConsensus NA; Prior47.0%)

    • 10:00 ET: Factory Orders for June (Briefing.comConsensus 0.9%; Prior 1.6%)

    • 10:00 ET: ISM Non-Manufacturing Index for July (Briefing.comConsensus 53.8%; Prior 55.3%)

    • 10:30 ET: EIA Crude Oil Inventories for July 30 (Briefing.comConsensus NA; Prior -4.52M)

  • Earnings:

    • Monday (Aug 1)

      • Morning:  AJRD AMG BLDR CHKP CAN GPN J JELD ON

      • Afternoon: ATVI ADUS AFL AMKR ANET CAR AXNX BCC BRX CF CNO CRK CACC DVA DVN FANG PLOW DEI EBS EHC EPR EQC EVER HLIT NSP INST JRVR KMPR KMT KFRC LSCC LEG MATX MPWR MOS OHI OGS OTTR PINS RDN RMBS RRX RHP SANM SBAC SPG RIG UNVR VRNS VNOM VNO WMB WWD ZI

    • Tuesday (Aug 2)

      • Morning: AME AINV ARNC ASTE ATKR BPMC BP CAT CNP CMI DBD DD DEA ETN NPO ENTG ETRN ESPR EOLS AQUA EXPD RACE IT THRM GEO GPRE HLNE HSC HSIC HUN IDXX ITW INCY IGT IPGP JBLU KBR KKR LCII LEA LDOS LGIH MPC MAR TAP MPLX NRZ OTLY PEG RGEN SPGI SABR SAGE SEE SWI SPWR SYNH BLD TSEM UBER VSH WAT WEC WLK XYL ZBRA ZBH

      • Afternoon:  AMD ABNB AYX ANDE APAM AIZ ATRC BLKB BFAM BCOV CZR CWH CSII CDLX CHK CRUS CGNX CNDT CXW CTRA DCP DENN EA EVH EXAS EXR FNF FMC FRSH GILD GXO THG PEAK HLF NGVT IOSP INSP JJSF KAI KAR KN LFUS LTHM LPLA MGY MTCH MRCY MCHP MSTR NMIH OI OSH OXY OSPN PAYC PYPL PFSI PUMP PRU LUNG RNG SRPT SPNE SCI TSLX SKY SOFI SEDG SPT SBUX STE TEX TX UNM VREX VRSK VRAY VOYA WCN

Asia & Europe detail:

Asia: Nikkei +0.5%, Hang Seng +0.4%, Shanghai Composite -0.7%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Defense Ministry will reportedly request a record high budget for FY23. House Speaker Pelosi is visiting South Korea today. FT reported that Samsung and SK Hynix are reconsidering investments in China after the passage of the Chips Act in the U.S. China's Caixin Services PMI reached its highest level since April 2021 in the July reading.

  • In economic data:

    • China's July Caixin Services PMI 55.5 (last 54.5)

    • Japan's July Services PMI 50.3 (last 54.0)

    • Hong Kong's July Manufacturing PMI 52.3 (last 52.4) 

    • India's July Nikkei Services PMI 55.5 (expected 58.5; last 59.2)

    • Australia's July AIG Construction Index 45.3 (last 46.2). June Retail Sales 0.2% m/m, as expected (last 0.9%) and Q2 Retail Sales 1.4% qtr/qtr (expected 1.2%; last 1.0%). July Services PMI 50.9 (last 52.6)

    • New Zealand's Q2 Employment Change 0.0% qtr/qtr (expected 0.4%; last 0.0%). Q2 Labor Cost Index 1.3% qtr/qtr (expected 1.1%; last 0.7%); 3.4% yr/yr (expected 3.3%; last 3.1%). Q2 Unemployment Rate 3.3% (expected 3.1%; last 3.2%)

---Equity Markets---

  • Japan's Nikkei: +0.5%

  • Hong Kong's Hang Seng: +0.4%

  • China's Shanghai Composite: -0.7%

  • India's Sensex: +0.4%

  • South Korea's Kospi: +0.9%

  • Australia's ASX All Ordinaries: -0.2%

---FX---

  • USD/JPY: +0.1% to 133.35

  • USD/CNH: -0.2% to 6.7613

  • USD/INR: +0.7% to 79.16

Europe: DAX +0.3%, FTSE +0.1%, CAC +0.4%

Major European indices trade in the green. German Chancellor Scholz warned that further reductions of the supply of energy to Europe should be expected. Liz Truss is reportedly ahead of Rishi Sunak in the race to lead the U.K.'s Conservative party. BMW lowered its production forecast for the year. Societe Generale reported better than expected results for Q2.

  • In economic data:

    • Eurozone's June PPI 1.1% m/m (expected 1.0%; last 0.5%); 35.8% yr/yr (expected 35.7%; last 36.2%). June Retail Sales -1.2% m/m (expected 0.1%; last 0.4%); -3.7% yr/yr (expected -1.7%; last 0.4%). July Services PMI 51.2 (expected 50.6; last 53.0)

    • Germany's June trade surplus EUR6.40 bln (expected surplus of EUR200 mln; last surplus of EUR800 mln). June Imports 0.2% m/m (expected 1.3%; last 3.2%) and Exports 4.5% m/m (expected 1.0%; last 1.3%)

    • U.K.'s July Services PMI 52.6 (expected 53.3; last 54.3) o France's July Services PMI 53.2 (expected 52.1; last 53.9)

    • Italy's June Retail Sales -1.1% m/m (last 2.0%); 1.4% yr/yr (last 6.8%). July Services PMI 48.4 (expected 50.1; last 51.6)

    • Spain's July Services PMI 53.8 (expected 52.0; last 54.0) 

    • Swiss July CPI 0.0% m/m (expected -0.1%; last 0.5%); 3.4% yr/yr (expected 3.5%; last 3.4%)

---Equity Markets---

  • STOXX Europe 600: +0.2%

  • Germany's DAX: +0.3%

  • U.K.'s FTSE 100: +0.1%

  • France's CAC 40: +0.4%

  • Italy's FTSE MIB: +0.1%

  • Spain's IBEX 35: +0.5%

---FX---

  • EUR/USD: +0.4% to 1.0205

  • GBP/USD: +0.3% to 1.2199

  • USD/CHF: UNCH at 0.9574


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