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Writer's pictureSimon Charles Hooper

05/06/23 Briefing

The S&P 500 futures are up 1 point and are trading in line with fair value. The Nasdaq 100 futures are down 19 points and are trading 0.2% below fair value. The Dow Jones Industrial Average futures are up 10 points and are trading 0.1% above fair value.

Stock futures have been mixed, yet there hasn't been a lot of movement in either direction. Market participants are anxious to see if Friday's rally will continue today. Some mega cap stocks are relatively weak this morning, limiting moves for the broader market.

Oil prices are climbing after Saudi Arabia said it will implement an additional voluntary cut in its production of crude oil, amounting to one million barrels per day. WTI crude oil futures are up 2.3% to $73.38/bbl.

The Port of Los Angeles and Long Beach is shut down after labor negotiations stall.

Separately, President Biden signed the debt ceiling bill into law on Saturday.

The 2-yr Treasury note yield is up five basis points to 4.56% and the 10-yr note yield is up seven basis points to 3.75%.

In corporate news:

  • Palo Alto Networks (PANW 230.39, +13.15, +6.1%): will replace DISH Network (DISH) in the S&P 500 prior to the open on June 20

  • Chevron (CVX 158.32, +2.06, +1.3%) and Exxon (XOM 107.35, +1.59, +1.5%): OPEC+ makes no changes to oil production targets, but Saudi Arabia will implement an additional voluntary cut in its production of crude oil, amounting to one million barrels per day

  • Allstate (ALL 112.00, +1.92, +1.7%): will stop offering new insurance policies in California due to climate conditions and building costs, according to NY Times

  • Apple (AAPL 182.55, +1.61, +0.9%): will introduce its mixed reality headset at WWDC today, according to Bloomberg

  • 3M (MMM 102.49, -0.04, -0.04%): Lawyers trying to delay 3M (MMM) trial to come to settlement, according to WSJ

  • Estee Lauder (EL 185.36, -2.93, -1.6%) downgraded to Perfrom from Outperform at Oppenheimer

  • Dollar General (DG 164.13, -1.99, -1.2%): downgraded to Equal Weight from Overweight at Morgan Stanley

  • Target (TGT 132.21, -1.01, -0.8%): downgraded to Sector Weight from Overweight at KeyBanc

  • EPAM Systems (EPAM 222.90, -36.75, -14.2%): sees Q2 and FY23 EPS and revs below expectations

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region began the week on a mostly higher note with Japan's Nikkei reaching its highest level since mid-1990. Japan's Nikkei: +2.2%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: +0.1%, India's Sensex: +0.4%, South Korea's Kospi: +0.5%, Australia's ASX All Ordinaries: +0.9%.

    • In economic data:

      • China's May Caixin Services PMI 57.1 (expected 55.2; last 56.4) o Japan's May Services PMI 55.9 (expected 56.3; last 55.4)

      • Australia's May Services PMI 52.1 (expected 51.8; last 53.7). May MI Inflation Gauge 0.9% m/m (last 0.2%). Q1 Business Inventories 1.2% qtr/qtr (expected 0.5%; last 0.3%) and Q1 Gross Operating Profits 0.5% qtr/qtr (expected 1.5%; last 12.7%)

      • Singapore's April Retail Sales 0.3% m/m (expected 0.0%; last 2.2%); 3.6% yr/yr (expected 8.6%; last 4.5%)

      • Hong Kong's May Manufacturing PMI 50.6 (expected 53.0; last 52.4)

      • India's May Nikkei Services PMI 61.2 (expected 57.0; last 62.0)


  • In news:

    • China's Caixin Services PMI expanded for the fifth consecutive month in May.

    • There were additional reports about China's government implementing multiple support measures to stimulate the property sector and the overall economy.

    • TSMC will raise its prices by 3-6% next year.



  • Major European indices trade on a mostly higher note. STOXX Europe 600: +0.1%, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.5%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: +0.6%.

    • In economic data:

      • Eurozone's April PPI -3.2% m/m (expected -3.1%; last -1.3%); 1.0% yr/yr (expected 5.9%; last 5.5%). May Services PMI 55.1 (expected 55.9; last 56.2). June Sentix Investor Confidence -17.0 (expected -15.2; last -13.1)

      • Germany's April trade surplus EUR18.4 bln (expected EUR16.0 bln; last EUR14.9 bln). April Imports -1.7% m/m (expected -1.0%; last -5.5%) and Exports 1.2% m/m (expected -2.5%; last -6.0%). May Services PMI 57.2 (expected 57.8; last 56.0)

      • U.K.'s May Services PMI 55.2 (expected 55.1; last 55.9)

      • France's May Services PMI 52.5 (expected 52.8; last 54.6)

      • Italy's May Services PMI 54.0 (expected 56.5; last 57.6)

      • Spain's May Services PMI 56.7 (expected 59.9; last 57.9)

      • Swiss May CPI 0.3% m/m, as expected (last 0.0%); 2.2% yr/yr (expected 2.8%; last 2.6%)


  • In news:

    • Final May Services PMI readings from Germany, France, Italy, and Spain missed expectations, but remained in expansionary territory.

    • Eurozone's PPI was cooler than expected in the April reading.

    • European Central Bank policymaker Visco said that sharply lower energy prices will help rein in inflation and that he expects a cooldown in core inflation.

    • S&P affirmed France's AA rating with a Negative outlook while Fitch affirmed the U.K.'s AA- rating with a Negative outlook.



U.S. equity futures:

  • S&P 500 Futures: +1 @ 4,283

  • DJIA Futures: +16 @ 33,779

  • Nasdaq 100 Futures: -21 @ 14,526

Overseas:

  • Europe: DAX +0.1%, FTSE +0.5%, CAC -0.1%

  • Asia: Nikkei +2.2%, Hang Seng +0.8%, Shanghai Composite +0.1%

Commodities:

  • Crude Oil +1.66 @ 73.40

  • Nat Gas +0.078 @ 2.25

  • Gold +3.55 @ 1956.02

  • Silver -0.192 @ 23.555

  • Copper +0.0062 @ 3.7337


Earnings/Guidance:

  • AvalonBay ( AVB 1.02% ) says same store residential rental revenue for last 2 months exceeds prior expectation

  • Castle Biosciences ( CSTL 1.88% ) reaffirms FY23 revenue guidance

  • EPAM Systems ( EPAM 0.05% ) sees Q2 and FY23 EPS and revs below expectations

  • Hon Hai Precision ( HNHPF ) reports May 2023 +5% yr/yr to NT 450.7 bln

  • Science Applications ( SAIC 0.65% ) beats by $0.31, beats on revs; raises FY24 guidance

  • SPX Corp ( SPXC 0.80% ) updates FY23 guidance to reflect completed acquisition of ASPEQ

  • The Cigna Group ( CI 0.52% ) reaffirms FY23 EPS guidance ahead of meetings with investors and analysts over the next several weeks

News:

  • OPEC+ makes no changes to oil production targets, but Saudi Arabia will implement an additional voluntary cut in its production of crude oil, amounting to one million barrels per day

  • China warns militaries to stay out of waters and airspace near its border, according to Financial Times

  • Ukrainian President Volodymyr Zelensky says his country is ready to launch counteroffensive against Russia, according to the Wall Street Journal

  • Hundreds of people were killed in a train crash in India

  • President Biden signs 2 year debt ceiling/spending cap bill into law

  • Debt ceiling agreement contains mechanisms that will motivate both parties to pass government funding appropriation bills by September 30 deadline, according to the New York Times

  • Treasury expected to issue $1 trillion in new debt following debt ceiling agreement, according to Bloomberg

  • Regulators expected to propose that larger banks increase capital requirements by 20%, according to the Wall Street Journal

  • Class 8 truck orders increased 10 yr/yr to 15,500 units in May, according to Act Research

  • 3M ( MMM 0.85% ): Lawyers trying to delay 3M (MMM) trial to come to settlement, according to the Wall Street Journal

  • Airbus ( EADSY ) aiming to sell 500 narrow body A320 jets to IndiGo, according to Reuters

  • Akero Therapeutics ( AKRO 1.63% ) releases topline data from an expansion cohort of the Phase 2b SYMMETRY study known as Cohort D

  • Allogene Therapeutics ( ALLO 2.67% ) Presents Updated ALLO-501/501A Phase 1 Data in Large B Cell Lymphoma at the American Society of Clinical Oncology (ASCO) Annual Meeting

  • AlloVir ( ALVR 8.09% ) presents positive final results from a phase 2 randomized, placebo-controlled trial evaluating posoleucel treatment of bk infection in kidney transplant recipients at the American Transplant Congress

  • Allstate ( ALL 0.04% ) will stop offering new insurance policies in California due to climate conditions and building costs, according to NY Times

  • Alpine Income Property Trust ( PINE 0.55% ) provides operational update

  • AMGEN ( AMGN 0.87% ) presents new LUMAKRAS (Sotorasib) CodeBreak 200 CNS data at ASCO 2023

  • Amprius Technologies ( AMPX 3.49% ) and the U.S. Department of Energy's Office of Manufacturing and Energy Supply Chains mutually agree to end negotiations of previously announced cost-shared demonstration project

  • Apple ( AAPL 0.28% ) will introduce its mixed reality headset at WWDC today, according to Bloomberg

  • Arcus ( RCUS 2.50% ) and Gilead (GILD) Announce Anti-TIGIT Domvanalimab Continues to Demonstrate Consistent Improvement in Progression-Free Survival in Non-Small Cell Lung Cancer Study

  • AstraZeneca ( AZN 0.26% ): ANDEXXA Phase IV Trial Stopped Early After Achieving Pre-specified Criteria on Hemostatic Efficacy Versus Usual Care

  • AstraZeneca ( AZN 0.26% ) reports Andexxa Phase IV trial stopped early after achieving pre-specified criteria on haemostatic efficacy versus usual care

  • AstraZeneca ( AZN 0.26% ) reports TAGRISSO achieved unprecedented survival in early-stage EGFR-mutated lung cancer, with 88% of patients alive at five years in ADAURA Phase III trial

  • AstraZeneca ( AZN 0.26% ) reports LYNPARZA (olaparib) and IMFINZI (durvalumab) combination reduced risk of disease progression or death by 37% vs. chemotherapy and bevacizumab in patients with advanced ovarian cancer without tumor BRCA mutations in the DUO-O Phase III trial

  • Avadel Pharmaceuticals ( AVDL 0.13% ): LUMRYZ launches commercially in the U.S.

  • Avantax ( AVTA 0.49% ): Engine Capital sends letter to Board, encourages Board to initiate a review of strategic alternatives, suggests value could garner $27-$32/share

  • Bellerophon ( BLPH 5.49% ) Announces Top-Line Data from Phase 3 REBUILD Clinical Trial of INOpulse for Treatment of Fibrotic Interstitial Lung Disease

  • Bristol-Myers ( BMY 0.01% ) reports Four-Year Outcomes from Phase 3 CheckMate -9LA Trial Show Durable, Long-Term Survival with Opdivo (nivolumab) Plus Yervoy (ipilimumab) with Two Cycles of Chemotherapy for Patients with Metastatic Non-Small Cell Lung Cancer

  • Churchill Downs ( CHDN 0.78% ) to suspend racing operations to thoroughly examine safety measures

  • Cogent Biosciences ( COGT 4.70% ) Announces Positive Lead-In Data from Ongoing Phase 3 PEAK Trial Evaluating Bezuclastinib in Combination with Sunitinib in Patients with Gastrointestinal Stromal Tumors

  • Day One ( DAWN 1.97% ) Announces New FIREFLY-1 Data for Tovorafenib (DAY101) and Initiation of Rolling NDA Submission to FDA for Relapsed or Progressive Pediatric Low-Grade Glioma

  • Diageo plc ( DEO 0.33% ) appoints Debra Crew interim CEO after Ivan Menezes has medical setback

  • dLocal Limited ( DLO 1.03% ) provides update to Argentine news outlet Infobae

  • Element Solutions ( ESI 1.39% ) reports two strategic semiconductor transactions

  • Elicio Therapeutics ( ELTX 0.23% ) Announces Positive Interim Data from the Phase 1 Study of an Investigational Therapeutic Cancer Immunotherapy, ELI-002, in Patients with High Relapse Risk Pancreatic and Colorectal Cancer at the ASCO Annual Meeting

  • Entegris ( ENTG 0.25% ) and Element Solutions terminate distribution agreement

  • Equitrans Midstream ( ETRN 2.23% ) confirms Mountain Valley Pipeline to proceed

  • Expedia Group ( EXPE 2.62% ): Samuel Altman resigns from board of directors

  • EyePoint Pharmaceuticals ( EYPT 0.49% ) completes enrollment in Phase 2 PAVIA Clinical Trial of EYP-1901

  • Foghorn Therapeutics ( FHTX 0.25% ): FDA lifts clinical hold on Phase 1 monotherapy dose escalation study of FHD-286 in acute myelogenous leukemia and myelodysplastic syndrome

  • G1 Therapeutics ( GTHX 2.65% ) reports Trilaciclib Increases Pool of Memory T Cells in the Tumor Microenvironment Responsible for Long Term Immune Surveillance and Efficacy

  • Global Net Lease ( GNL 2.08% ), The Necessity Retail REIT (RTL) and AR Global enter into cooperation agreement with Blackwells Capital

  • Harsco ( HSC 2.79% ) will change its name to Enviri Corporation effective immediately; will begin trading under the NYSE ticker 'NVRI' on June 19, 2023

  • Illumina ( ILMN 1.06% ) unit GRAIL presents new PATHFINDER study analysis demonstrating efficient diagnostic resolution following multi-cancer early detection testing

  • Immunocore ( IMCR 1.73% ) presents additional ctDNA data from the KIMMTRAK Phase 3 trial at ASCO

  • ImmunoGen ( IMGN 8.89% ) reports ELAHERE Demonstrates 35% Reduction in the Risk of Disease Progression or Death Versus Chemotherapy in FRa-Positive Platinum-Resistant Ovarian Cancer

  • Jazz Pharmaceuticals ( JAZZ 0.38% ) and Zymeworks (ZYME) Present Positive Pivotal Phase 2b Trial Data at ASCO 2023 Evaluating Zanidatamab in HER2-Amplified Biliary Tract Cancers

  • JetBlue ( JBLU 0.88% ) mulling options following Northeast Alliance ruling, according to Bloomberg

  • Johnson & Johnson ( JNJ 0.16% ): FDA grants JNJ request to revoke EUA for Covid vaccine

  • JP Morgan ( JPM 0.20% ) President and Chief Operating Officer Daniel Pinto says loan demand is falling, according to Reuters

  • Kennametal ( KMT 2.17% ) initiated an action to streamline its cost structure

  • Kennedy Wilson ( KW 0.29% ) provides PacWest (PACW) Loan Purchase and Sale Agreement

  • loanDepot ( LDI 2.90% ) announces organizational changes, names new CFO

  • Lockheed Martin ( LMT 0.32% ) awarded a $122 mln modification to a US Air Force contract

  • MAG Silver ( MAG 1.51% ) reports Juanicipio achieves commercial production

  • MarketAxess ( MKTX 0.05% ) announces monthly volume statistics for May 2023

  • Marriott ( MAR 0.29% ) plans to further expand in the affordable midscale lodging segment, following its recent entry into the segment with City Express by Marriott in Latin America

  • Merck's ( MRK 0.35% ) KEYTRUDA (pembrolizumab) Plus Chemotherapy Before Surgery and Continued as a Single Agent After Surgery Reduced the Risk of Event-Free Survival Events by 42% Versus Pre-Operative Chemotherapy in Resectable Stage II, IIIA or IIIB NSCLC

  • Merck ( MRK 0.35% ) reports KEYTRUDA (pembrolizumab) Plus Chemotherapy Significantly Improved Overall Survival Versus Chemotherapy Alone as First-Line Treatment for Unresectable Advanced Pleural Mesothelioma

  • Natera ( NTRA 0.89% ) Announces Data from the ProActive Study that Supports Prospera Kidney as an Early Indicator of Transplant Rejection

  • NeoGenomics ( NEO 5.13% ) and German Breast Group announce new data demonstrating clinical potential of the RaDaR MRD assay in HR+/HER2- breast cancer

  • NewAmsterdam Pharma ( NAMS 0.77% ) Announces Positive Topline Results from Phase 2b Dose-Finding Trial Evaluating Obicetrapib in Japanese Patients

  • New Found Gold Corp. ( NFGC 2.30% ) Intercepts 105 G/T AU Over 27.1M at Iceberg

  • Oncolytics ( ONCY 2.85% ) Biotech Announces Updated Randomized Phase 2 Data from BRACELET-1 Metastatic Breast Cancer Trial that Show Pelareorep Driving Robust Increases in Progression-Free Survival and Confirmed Overall Response Rate

  • Palantir Technologies ( PLTR 1.12% ) was awarded a contract from the US Special Operations Command (USSOCOM) to deliver technology solutions to support enterprise capabilities; multi-year contract is worth up to $463 million

  • Park Hotels & Resorts ( PK 2.32% ) announced that, starting in June, it ceased making payments toward the $725 million non-recourse CMBS loan which is scheduled to mature in November 2023

  • Phunware ( PHUN 3.82% ) names Troy Reisner as CFO, he will succeed Matt Aune

  • Precigen ( PGEN 5.95% ) Announces Positive Phase 1 Data for Off-the-Shelf PRGN-2009 AdenoVerse Immunotherapy Alone and in Combination with an Investigational Checkpoint Inhibitor in Patients with Recurrent/Metastatic HPV-associated Cancers

  • Raytheon Technologies ( RTX 0.26% ) awarded a $263.7 mln modification to a previously awarded US Navy contract

  • Seres Therapeutics ( MCRB 3.21% ) and Nestle Health Science (NSRGY) announce U.S. commercial availability of VOWST

  • Spotify ( SPOT 0.68% ) provides June update; says there are now ore than 100 mln podcast listeners; will eliminate 200 jobs or 2% of workforce

  • SpringWorks Therapeutics ( SWTX 0.33% ) announces PDUFA date extension for Nirogacestat NDA

  • Synovus ( SNV 1.78% ) provides liquidity update in slide presentation; says since quarter end it expanded ICS total capacity to $10 bln

  • Tesla ( TSLA 4.07% ): All Tesla Model 3 cars qualify for government tax credits, according to Verge

  • Teva ( TEVA 0.81% ) Presents Real-World Data for AUSTEDO (deutetrabenazine) Tablets with 4-Week Patient Titration Kit at Psych Congress Elevate 2023

  • Tradeweb Markets ( TW 0.00% ) reports May 2023 total trading volume of $29.4 trillion and average daily volume of $1.35 trillion

  • United ( UAL 1.12% ) pilots have voted to authorize a strike vote, according to Reuters

  • Vimeo ( VMEO 8.58% ) says on June 27, 2023, it is ending support for its existing TV apps

  • Walt Disney ( DIS 0.65% ) to record a $1.5 bln impairment charge in Q3 after removing certain produced content from its DTC services

  • Zevra Therapeutics ( ZVRA 0.18% ) Presents Design of Phase 2 Clinical Trial Investigating KP1077 for the Treatment of Idiopathic Hypersomnia (IH) at Beyond Sleepy 2023

  • ZoomInfo ( ZI 1.00% ) discloses plan to flatten the organizational structure, includes a 3% workforce reduction

M&A:

  • Camping World ( CWH 0.52% ) announced that it is set to acquire Roy Robinson RV Center, located in the greater Seattle Washington market

  • Circor ( CIR 0.04% ) to be acquired by KKR (KKR) for $1.6 bln, or $49/share in cash

  • GFL Environmental ( GFL 0.81% ): Republic Services (RSG) completes acquisition of GFL's Colorado and New Mexico operations; GFL accelerates balance sheet de-leveraging with substantial completion of previously identified divestitures

  • Novo Nordisk ( NVO 0.88% ) enters exclusive negotiations to acquire a controlling stake in BIOCORP, to be followed by a tender offer on all remaining shares

  • UBS AG ( UBS 0.30% ) expects to complete Credit Suisse (CS) acquisition as early as June 12, 2023

Syndicate:

  • Beam Global ( BEEM 5.24% ) files for $150 mln mixed securities shelf offering

  • Bruker ( BRKR 1.05% ) files mixed shelf securities offering

  • Kennedy Wilson ( KW 0.29% ) entered into a 6.00% Series C Cumulative Perpetual Preferred Stock and Warrant Purchase Agreement with Fairfax Financial Holdings Limited (FRFHF)

  • PepGen ( PEPG 24.28% ) files $300 mln mixed shelf securities offering

  • Workday ( WDAY 0.03% ) files mixed shelf securities offering

IPOs:

  • Expected to Price: No IPOs expected.

Gapping Up/Down

  • Gapping up:

    • DAWN +29%, IMGN +14.5%, GTHX +9.2%, APAM +7%, ELTX +6.9%, PECO +6.5%, CARG +5.7%, PANW +5%, SDGR +4.9%, UFPT +4.6%, PLNT +4%, MC +4%, GPK +3.1%, WCC +3%, CCK +2.8%, OVV +2.6%, DBX +2.4%, ZYME +2.3%, NTRA +2%, DOCS +2%, BWXT +2%, DAN +1.9%, CRC +1.9%, NVO +1.8%, IMCR +1.8%, ZI +1.6%, NGVT +1.6%, MAG +1.5%, PETS +1.4%, NAMS +1.3%, DEI +1.2%, UBS +1.1%, MAC +1%, AZN +0.8%, GRCL +0.7%, FULT +0.7%


  • Gapping down:

    • RCUS -7.1%, DISH -6.8%, DOUG -6.5%, LDI -6.3%, EPAM -5.6%, RYAM -4.8%, CARA -4.5%, ZUMZ -4.1%, GCO -4%, TG -3.9%, BOOM -3.8%, CMTL -3.6%, TREE -3.3%, GCI -3.1%, INGN -2.9%, CSTL -2.5%, EGRX -2.5%, LPSN -2.1%, BEEM -1.8%, WDAY -1%


Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

    • Blackbaud (BLKB) upgraded to Outperform from Mkt Perform at Raymond James; tgt $88

    • Comerica (CMA) upgraded to Buy from Hold at Odeon; tgt $47.24

    • DigitalBridge (DBRG) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $17.50

    • Dominion Energy (D) upgraded to Buy from Neutral at Seaport Research Partners; tgt $59

    • Equitrans Midstream (ETRN) upgraded to Overweight from Underweight at Morgan Stanley; tgt raised to $14

    • Equity Residential (EQR) upgraded to Market Perform from Underperform at BMO Capital Markets; tgt raised to $64

    • Rio Tinto (RIO) upgraded to Buy from Hold at Deutsche Bank

    • Valley National (VLY) upgraded to Overweight from Neutral at JP Morgan; tgt $10


  • Downgrades:

    • Blueprint Medicines (BPMC) downgraded to Underperform from Market Perform at SVB Securities; tgt lowered to $43

    • Dollar General (DG) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $180

    • Estee Lauder (EL) downgraded to Perform from Outperform at Oppenheimer

    • PROG Holdings (PRG) downgraded to Hold from Buy at Loop Capital; tgt $34

    • Royal Gold (RGLD) downgraded to Underperform from Neutral at BofA Securities; tgt $130

    • Target (TGT) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

    • Vitesse (VTS) downgraded to In-line from Outperform at Evercore ISI; tgt raised to $25


  • Others:

    • Aflac (AFL) resumed with a Buy at BofA Securities; tgt $77

    • Axcelis Tech (ACLS) initiated with an Outperform at William Blair

    • Cloudflare (NET) initiated with a Sell at UBS; tgt $55

    • Formula One Group (FWONA) initiated with an Outperform at TD Cowen; tgt $90

    • GoDaddy (GDDY) initiated with a Sector Perform at RBC Capital Mkts; tgt $80

    • NetEase (NTES) initiated with an Outperform at Bernstein

    • RPM Inc (RPM) initiated with a Hold at Deutsche Bank; tgt $90


Econ Data:

  • 09:45 ET: IHS Markit Services PMI - Final for May (Briefing.com Consensus NA; Prior 53.6)

  • 10:00 ET: Factory Orders for Apr (Briefing.com Consensus 0.8%; Prior 0.9%)

  • 10:00 ET: ISM Non-Manufacturing Index for May (Briefing.com Consensus 52.3%; Prior 51.9%)

Earnings:

  • Monday (Jun 5)

    • Morning: SAIC

    • Afternoon: GTLB CXM


  • Tuesday (Jun 6)

    • Morning: ABM ASO CIEN CNM CBRL GIII MOMO SJM THO

    • Afternoon: CVGW CASY BASE PLAY SFIX YEXT


  • Wednesday (Jun 7)

    • Morning: BF.B CPB LOVE OLLI UNFI

    • Afternoon: GME GEF HCP OXM SMTC SMAR CURV TCOM VRNT


  • Thursday (Jun 8)

    • Morning: DBI FCEL REVG SIG TTC

    • Afternoon: BRZE DOCU AVO MTN


  • Friday (Jun 9)

    • Morning: NIO


Asia & Europe detail:

Asia: Nikkei +2.2%, Hang Seng +0.8%, Shanghai Composite +0.1%

Equity indices in the Asia-Pacific region began the week on a mostly higher note with Japan's Nikkei reaching its highest level since mid-1990. China's Caixin Services PMI expanded for the fifth consecutive month in May. There were additional reports about China's government implementing multiple support measures to stimulate the property sector and the overall economy. TSMC will raise its prices by 3-6% next year.

  • In economic data:

    • China's May Caixin Services PMI 57.1 (expected 55.2; last 56.4) o Japan's May Services PMI 55.9 (expected 56.3; last 55.4)

    • Australia's May Services PMI 52.1 (expected 51.8; last 53.7). May MI Inflation Gauge 0.9% m/m (last 0.2%). Q1 Business Inventories 1.2% qtr/qtr (expected 0.5%; last 0.3%) and Q1 Gross Operating Profits 0.5% qtr/qtr (expected 1.5%; last 12.7%)

    • Singapore's April Retail Sales 0.3% m/m (expected 0.0%; last 2.2%); 3.6% yr/yr (expected 8.6%; last 4.5%)

    • Hong Kong's May Manufacturing PMI 50.6 (expected 53.0; last 52.4)

    • India's May Nikkei Services PMI 61.2 (expected 57.0; last 62.0)


---Equity Markets---

  • Japan's Nikkei: +2.2%

  • Hong Kong's Hang Seng: +0.8%

  • China's Shanghai Composite: +0.1%

  • India's Sensex: +0.4%

  • South Korea's Kospi: +0.5%

  • Australia's ASX All Ordinaries: +0.9%

---FX---

  • USD/JPY: +0.2% to 140.27

  • USD/CNH: +0.3% to 7.1291

  • USD/INR: +0.3% to 82.61

Europe: DAX +0.1%, FTSE +0.5%, CAC -0.1%

Major European indices trade on a mostly higher note. Final May Services PMI readings from Germany, France, Italy, and Spain missed expectations, but remained in expansionary territory. Meanwhile, eurozone's PPI was cooler than expected in the April reading. European Central Bank policymaker Visco said that sharply lower energy prices will help rein in inflation and that he expects a cooldown in core inflation. S&P affirmed France's AA rating with a Negative outlook while Fitch affirmed the U.K.'s AA- rating with a Negative outlook.

  • In economic data:

    • Eurozone's April PPI -3.2% m/m (expected -3.1%; last -1.3%); 1.0% yr/yr (expected 5.9%; last 5.5%). May Services PMI 55.1 (expected 55.9; last 56.2). June Sentix Investor Confidence -17.0 (expected -15.2; last -13.1)

    • Germany's April trade surplus EUR18.4 bln (expected EUR16.0 bln; last EUR14.9 bln). April Imports -1.7% m/m (expected -1.0%; last -5.5%) and Exports 1.2% m/m (expected -2.5%; last -6.0%). May Services PMI 57.2 (expected 57.8; last 56.0)

    • U.K.'s May Services PMI 55.2 (expected 55.1; last 55.9)

    • France's May Services PMI 52.5 (expected 52.8; last 54.6)

    • Italy's May Services PMI 54.0 (expected 56.5; last 57.6)

    • Spain's May Services PMI 56.7 (expected 59.9; last 57.9)

    • Swiss May CPI 0.3% m/m, as expected (last 0.0%); 2.2% yr/yr (expected 2.8%; last 2.6%)


---Equity Markets---

  • STOXX Europe 600: +0.1%

  • Germany's DAX: +0.1%

  • U.K.'s FTSE 100: +0.5%

  • France's CAC 40: -0.1%

  • Italy's FTSE MIB: -0.2%

  • Spain's IBEX 35: +0.6%

---FX---

  • EUR/USD: -0.1% to 1.0695

  • GBP/USD: -0.5% to 1.2391

  • USD/CHF: +0.2% to 0.9107


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