The S&P 500 futures are down 36 points and are trading 0.8% below fair value. The Nasdaq 100 futures are down 130 points and are trading 0.8% below fair value. The Dow Jones Industrial Average futures are down 258 points and are trading 0.6% below fair value.
Following yesterday's gains, market participants have been inclined to take some money off the table this morning. The sentiment shift is being attributed to disappointing guidance from UPS (UPS), Moody's downgrading the credit ratings for 10 small and mid-sized U.S. banks and changing its outlook to negative for an additional 11 banks, and disappointing trade data out of China.
China reported a bigger than expected trade surplus for July (actual $80.6 billion; expected $70.6 billion), but imports contracted at their fastest pace in over two years (actual -12.4%; expected -5.0%), implying weakening domestic demand. Exports declined 14.5% versus an expected 12.5% decline.
Separately, the Italian government announced a surprise windfall profit tax for Italian banks that has pressured the stock market there and other European markets.
The 2-yr Treasury note yield is down five basis points to 4.73% and the 10-yr note yield is down ten basis points to 3.99%.
In corporate news:
Palantir Technologies (PLTR 17.38, -0.61, -3.4%): reports EPS in-line, revs in-line; guides Q3 revs in-line; guides FY23 revs above consensus; authorizes up to $1.0 bln for repurchases
UPS ▴ 0.67% (UPS 173.20, -8.95, -4.9%): beats by $0.05, misses on revs; guides FY23 revs below consensus
Intl Flavors (IFF 62.00, -18.34, -22.8%): misses by $0.23, misses on revs; lowers FY23 revenue and adj. EBITDA guidance
Eli Lilly (LLY 493.04, +38.96, +8.6%): beats by $0.13, beats on revs; raises FY23 EPS and revenue guidance above consensus
Paramount Global (PARA 16.38, +0.29, +1.80%): beats by $0.10, beats on revs
Beyond Meat (BYND 13.09, -2.19, -14.3%): beats by $0.01, misses on revs; lowers FY23 revs guidance
Lucid Group (LCID 6.38, -0.03, -0.5%): misses by $0.06, misses on revs; is on track to manufacture more than 10,000 vehicles in 2023
Chegg (CHGG 12.09, +2.06, +20.5%): misses by $0.01, beats on revs; guides Q3 revs in-line
Novo Nordisk A/S (NVO 180.61, +19.25, +11.9%): Semaglutide 2.4 mg reduces the risk of major adverse cardiovascular events by 20% in adults with overweight or obesity in the SELECT trial
Five9 (FIVN 77.17, -4.49, -5.50%): has entered into a definitive agreement to acquire Aceyus; financial terms were not disclosed
Home Depot (HD 324.90, -4.27, -1.3%): and Lowe's (LOW 220.27, -3.03, -1.4%): downgraded to Market Perform from Outperform at Telsey Advisory Group
Datadog (DDOG 81.99, -24.31, -22.9%): beats by $0.08, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY23 EPS above consensus, revs below consensus
RingCentral (RNG 33.13, -5.85, -15.0%): beats by $0.08, reports revs in-line; guides Q3 EPS below consensus, revs in-line; guides FY23 EPS in-line, reaffirms FY23 revs guidance; co also names new CEO
SPDR S&P Regional Ranking ETF (KRE 47.75, -1.29, -2.6%): Moody's downgraded the credit ratings of a batch of small and mid-sized U.S. banks
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: -1.8%, China's Shanghai Composite: -0.3%, India's Sensex: -0.2%, South Korea's Kospi: -0.3%, Australia's ASX All Ordinaries: UNCH.
In economic data:
China's July trade surplus $80.6 bln (expected surplus of $70.6 bln; last surplus of $70.6 bln). July Imports -12.4% yr/yr (expected -5.0%; last -6.8%) and Exports -14.5% yr/yr (expected -12.5%; last -12.4%)
Japan's June Average Cash Earnings 2.3% yr/yr (expected 1.6%; last 2.9%) and June overall wage income 2.3% yr/yr (expected 1.6%; last 2.9%). June Household Spending 0.9% m/m (expected 0.3%; last -1.1%); -4.2% yr/yr (expected -4.1%; last -4.0%). June Current Account surplus JPY1.509 trln (expected surplus of JPY1.395 trln; last surplus of JPY1.862 trln). July Bank Lending 2.9% yr/yr (expected 3.1%; last 3.1%). July Economy Watchers Current Index 54.4 (expected 54.5; last 53.6)
South Korea's June Current Account surplus $5.87 bln (expected surplus of $260 mln; last surplus of $1.93 bln)
Australia's August Westpac Consumer Sentiment -0.4% (last 2.7%). July NAB Business Confidence 2 (expected -1; last -1) and Business Survey 10 (expected 8; last 10)
In news:
China reported a bigger than expected trade surplus for July, but imports contracted at their fastest pace in over two years, implying weakening domestic demand.
Property names in Hong Kong saw renewed weakness with the Hang Seng Mainland Properties Index giving back most of its remaining gains from July after Country Garden acknowledged that usable cash levels have been declining steadily.
Real wages in Japan decreased for the 15th consecutive month in June.
Major European indices trade in the red. STOXX Europe 600: -0.5%, Germany's DAX: -1.4%, U.K.'s FTSE 100: -0.7%, France's CAC 40: -1.2%, Italy's FTSE MIB: -2.5%, Spain's IBEX 35: -1.3%.
In economic data:
Germany's July CPI 0.3% m/m, as expected (last 0.3%); 6.2% yr/yr, as expected (last 6.4%)
France's June trade deficit EUR6.7 bln (expected deficit of EUR8.0 bln; last deficit of EUR7.9 bln). June Current Account surplus $800 mln (expected deficit of $400 mln; last deficit of $700 mln)
In news:
Bank stocks are under pressure after Italy's cabinet approved a one-off 40% tax on windfall profits of banks, aiming to raise about EUR3 bln.
Bank of England Chief Economist Pill said that expected food price inflation is expected to decrease 10% in 2023, but retail prices may not fall for "a little while."
The latest consumer expectations survey from the European Central Bank showed that one-year inflation expectations slowed to 3.4% from 3.9% while three-year expectations slowed to 2.3% from 2.5%.
U.S. equity futures:
S&P 500 Futures: -34 @ 4,485
DJIA Futures: -235 @ 35,238
Nasdaq 100 Futures: -127 @ 15,281
Overseas:
Europe: DAX -1.4%, FTSE -0.7%, CAC -1.2%
Asia: Nikkei +0.3%, Hang Seng -1.8%, Shanghai Composite -0.3%
Commodities:
Crude Oil -1.77 @ 80.017
Nat Gas -0.010 @ 2.715
Gold -6.60 @ 1963.40
Silver -0.217 @ 23.015
Copper -0.0907 @ 3.7443
Earnings/Guidance:
908 Devices ( MASS 0.00% ) beats by $0.04, beats on revs; guides FY23 revs in-line
ACV Auctions ( ACVA 0.00% ) misses by $0.04, beats on revs; guides Q3 revs in-line; guides FY23 revs in-line
AdaptHealth ( AHCO 0.00% ) misses by $0.04, beats on revs; guides FY23 revs above consensus
Adeia ( ADEA 0.00% ) beats by $0.01, misses on revs; reaffirms FY23 revenue outlook
ADT ( ADT ▾ 2.84% ) beats by $0.10, misses on revs; reaffirms FY23 EPS guidance, lowers FY23 revs below consensus
Aecom Tech ( ACM ▴ 0.61% ) reports EPS in-line; guides FY23 EPS in-line
Alteryx ( AYX ▾ 1.88% ) beats by $0.30, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus
Allete ( ALE ▴ 0.23% ) beats by $0.11, beats on revs, reaffirms FY23 EPS guidance
AMC Entertainment ( AMC ▴ 3.85% ) beats by $0.04, beats on revs
American Equity Investment Life ( AEL ▾ 0.76% ) misses by $0.10, beats on revs
Apollo Medical ( AMEH 0.00% ) misses by $0.11, slightly beats on revs; guides FY23 EPS and revenue inline
Aramark ( ARMK ▾ 0.29% ) beats by $0.02, beats on revs, raises FY23 organic revenue growth guidance and operating income growth guidance
Arrowhead ( ARWR 0.00% ) misses by $0.39, misses on revs
Atkore International ( ATKR ▾ 1.92% ) beats by $1.45, misses on revs; guides FY23 EPS above consensus
Barrick ( GOLD ▴ 0.06% ) beats by $0.02; misses on revs
Bayer AG ( BAYRY ) reports Q2 results; revs decline 8%; lowers FY23 outlook
BellRing Brands ( BRBR ▴ 2.04% ) beats by $0.02, beats on revs; raises FY23 revenue outlook
Bentley Systems ( BSY 0.00% ) beats by $0.05, reports revs in-line
Beyond Meat ( BYND 0.00% ) beats by $0.01, misses on revs; lowers FY23 revs guidance
Bio-Techne ( TECH 0.00% ) reports EPS in-line, misses on revs (
Broadridge Financial ( BR ▴ 0.26% ) beats by $0.11, misses on revs; guides FY24 EPS above consensus; announces 10% dividend increase
Cabot ( CBT ▴ 0.09% ) misses by $0.13, misses on revs; guides Q4 EPS below consensus; guides FY23 EPS below consensus
Cactus ( WHD ▾ 1.49% ) beats by $0.10, beats on revs; anticipates Q3 revs to be down sequentially
Capital Southwest Corp. ( CSWC 0.00% ) beats by $0.03
Celanese ( CE ▴ 0.63% ) misses by $0.32, misses on revs; guides Q3 EPS below consensus; guides FY23 EPS below consensus
Cellebrite DI ( CLBT 0.00% ) beats by $0.03, beats on revs; raises FY23 revenue and adj. EBITDA guidance
Cerence ( CRNC 0.00% ) beats by $0.11, beats on revs; guides Q4 revs in-line; guides FY23 revs above consensus
Chegg ( CHGG ▾ 4.39% ) misses by $0.01, beats on revs; guides Q3 revs in-line
Choice Hotels ( CHH ▴ 0.86% ) beats by $0.06, beats on revs; raises FY23 EPS mostly above consensus
Clearway Energy ( CWEN ▾ 0.20% ) misses by $0.28, beats on revs
Compass ( COMP ▾ 2.22% ) reports Q2 (Jun) results; guides Q3, FY23
CONSOL Energy ( CEIX ▴ 1.80% ) beats on top and bottom lines
CoreCivic ( CXW ▾ 0.53% ) reports FFO in-line, revs in-line; guides FY23 FFO above consensus
Coterra Energy ( CTRA ▴ 0.83% ) beats by $0.05, misses on revs
CRISPR Therapeutics ( CRSP 0.00% ) beats by $1.15, beats on revs
Cronos Group ( CRON 0.00% ) beats by $0.01; misses on revs; withdraws FY23 revs guidance
Datadog ( DDOG 0.00% ) beats by $0.08, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY23 EPS above consensus, revs below consensus
Diamond Offshore ( DO ▾ 3.76% ) reports Q2 results, beats on revs
DISH Network ( DISH 0.00% ) beats by $0.01, reports revs in-line; Company and EchoStar (SATS) confirmed a combination agreement via all-stock merger
DocGo ( DCGO 0.00% ) reports Q2 results, beats on revs; raises FY23 revenue outlook
Duke Energy ( DUK ▴ 0.22% ) misses by $0.07, beats on revs; reaffirms FY23 EPS guidance
Easterly Government Properties ( DEA ▴ 2.08% ) beats by $0.01, beats on revs; guides FY23 FFO in-line
eHealth ( EHTH 0.00% ) reports Q2; improves FY23 GAAP net loss estimate range, raises FY23 revs above consensus
Eli Lilly ( LLY ▴ 1.02% ) beats by $0.13, beats on revs; raises FY23 EPS and revenue guidance above consensus
Energizer ( ENR ▴ 0.08% ) misses by $0.15, misses on revs; guides SepQ EPS in-line
Enpro Industries ( NPO ▴ 0.82% ) beats by $0.09, reports revs in-line; raises FY23 EPS guidance, still inline
ePlus ( PLUS 0.00% ) beats by $0.41, beats on revs; guides FY24 revs above consensus
Essential Utilities ( WTRG ▴ 0.71% ) reports EPS in-line, misses on revs; reaffirms FY23 EPS guidance; increases dividend by 7%
Everbridge ( EVBG 0.00% ) beats by $0.04, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs below consensus
EverCommerce ( EVCM 0.00% ) misses by $0.08, reports revs in-line; guides Q3 revs in-line; reaffirms FY23 revs guidance
FibroGen ( FGEN 0.00% ) misses by $0.20, beats on revs
Five9 ( FIVN 0.00% ) beats by $0.13, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs in-line
ForgeRock ( FORG ▴ 1.40% ) misses by $0.04, misses on revs
Global-E Online ( GLBE 0.00% ) beats by $0.03, beats on revs; guides Q3 revs below consensus; guides FY23 revs in-line
GlobalFoundries ( GFS 0.00% ) beats by $0.03, reports revs in-line
Golub Capital ( GBDC 0.00% ) beats by $0.01; announced management fee reduction
Haemonetics ( HAE ▾ 1.32% ) beats by $0.32, beats on revs; raises FY24 EPS above consensus, revs in-line
Healthcare Realty ( HR ▴ 1.02% ) reports Q2 (Jun) results, revs in-line
Helios Technologies ( HLIO ▾ 0.26% ) misses by $0.03, beats on revs; guides FY23 EPS below consensus, revs below consensus
HighPeak Energy ( HPK 0.00% ) misses by $0.20, misses on revs
Hillman Solutions Corp. ( HLMN 0.00% ) beats by $0.04, misses on revs; reaffirms FY23 revs guidance
Hims & Hers Health ( HIMS ▾ 3.07% ) beats by $0.02, beats on revs; guides Q3 revs above consensus; guides FY23 revs in-line
HNI ( HNI ▾ 0.52% ) beats by $0.34, reports revs in-line; provides Q3 and 2H23 commentary
Horizon Therapeutics plc ( HZNP 0.00% ) beats by $0.23, beats on revs
ICU Medical ( ICUI 0.00% ) beats by $0.28, misses on revs; narrows FY23 guidance
Ingredion ( INGR ▴ 0.06% ) misses by $0.01, misses on revs; guides FY23 EPS in-line, revs below consensus; increases quarterly dividend to $0.78/share from $0.71/share
Inogen ( INGN 0.00% ) beats by $0.17, misses on revs; guides FY23 revs below consensus
Intercontinental Hotels Group ( IHG ▴ 1.83% ) reports H1 results
Intl Flavors ( IFF ▾ 0.20% ) misses by $0.23, misses on revs; lowers FY23 revenue and adj. EBITDA guidance
Ironwood Pharma ( IRWD 0.00% ) misses by $7.09, beats on revs; guides FY23 revs above consensus
Jacobs Engineering ( J ▴ 0.99% ) reports EPS in-line, beats on revs; reaffirms FY23 EPS guidance
James Hardie ( JHX ▴ 0.41% ) beats by $0.05; beats on revs; provides Q2 outlook
James River Group ( JRVR 0.00% ) beats by $0.01, beats on revs
JELD-WEN ( JELD ▴ 2.50% ) beats by $0.09, beats on revs; guides FY23 revs in-line
Kemper ( KMPR ▴ 0.88% ) beats by $0.10, misses on revs
Kyndryl ( KD ▾ 2.12% ) beats on EPS, beats on revs
Knife River Corp. ( KNF ▴ 2.72% ) beats by $0.42, beats on revs; guides FY23 revs in-line
Latham Group ( SWIM 0.00% ) misses by $0.06, beats on revs; guides FY23 revs in-line
LCI Industries ( LCII ▴ 0.09% ) beats by $0.07, beats on revs; demand environment is improving
Li Auto ( LI 0.00% ) beats by RMB0.82, beats on revs; guides Q3 revs above consensus
Lucid Group ( LCID 0.00% ) misses by $0.06, misses on revs; is on track to manufacture more than 10,000 vehicles in 2023
Macerich ( MAC ▴ 1.51% ) misses by $0.02, beats on revs
MAG Silver ( MAG ▾ 0.44% ) beats by $0.02
Manitowoc ( MTW ▴ 3.82% ) beats by $0.43, beats on revs; guides FY23 EPS in-line, revs in-line
Mannkind ( MNKD 0.00% ) beats by $0.04, beats on revs
Maravai Life Sciences ( MRVI 0.00% ) misses by $0.06, misses on revs; guides FY23 EPS below consensus, revs below consensus
Medifast ( MED ▾ 2.72% ) beats by $1.33 (single estimate), beats on revs; guides Q3 EPS below single estimate, revs below estimate
MRC Global ( MRC ▾ 0.18% ) misses by $0.13, misses on revs
National Storage Affiliates ( NSA ▴ 1.42% ) misses by $0.02, beats on revs; guides FY23 FFO below consensus
NeoGenomics ( NEO 0.00% ) beats by $0.09, beats on revs; guides FY23 EPS above consensus, revs above consensus
New Fortress Energy ( NFE 0.00% ) beats by $0.04, misses on revs
New York Times ( NYT ▴ 1.32% ) beats by $0.17, beats on revs
Nexstar ( NXST 0.00% ) beats by $0.29, reports revs in-line
Novanta ( NOVT 0.00% ) beats by $0.07, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus
Olaplex ( OLPX 0.00% ) misses by $0.02, misses on revs; guides FY23 revs below consensus
ONEOK ( OKE ▾ 0.08% ) beats by $0.02; guides FY23 EPS in-line
Organon (3) beats by $0.34, beats on revs; raises bottom end of FY23 rev guidance
Palantir Technologies ( PLTR ▾ 1.15% ) reports EPS in-line, revs in-line; guides Q3 revs in-line; guides FY23 revs above consensus; authorizes up to $1.0 bln for repurchases
Paramount Global ( PGRE ▴ 2.48% ) beats by $0.10, beats on revs
Paymentus ( PAY ▾ 2.90% ) beats by $0.04, beats on revs; guides Q3 revs in-line
Perrigo ( PRGO ▴ 0.90% ) beats by $0.12, beats on revs; reaffirms FY23 EPS guidance, guides FY23 revs in-line
Playtika ( PLTK 0.00% ) beats by $0.01, misses on revs; guides FY23 revs below consensus
PowerSchool ( PWSC ▴ 1.07% ) beats by $0.01, beats on revs; guides Q3 revs in-line; guides FY23 revs in-line
PRA Group ( PRAA 0.00% ) beats by $0.04, beats on revs
Primerica ( PRI ▴ 0.86% ) beats by $0.18, misses on revs
Primoris Services ( PRIM ▴ 0.47% ) beats by $0.21, beats on revs; guides FY23 EPS above consensus
Quanterix ( QTRX 0.00% ) reports Q2 results, beats on revs, issues upside FY23 revenue guidance
RadNet ( RDNT 0.00% ) beats by $0.17, beats on revs; raises FY23 revs above consensus
Ready Capital ( RC ▾ 0.09% ) reported last night Q2 EPS of $0.36 vs. $0.37 FactSet consensus
Restaurant Brands Int'l ( QSR ▴ 1.48% ) beats by $0.08, beats on revs; declares dividend
RingCentral ( RNG ▴ 0.88% ) beats by $0.08, reports revs in-line; guides Q3 EPS below consensus, revs in-line; guides FY23 EPS in-line, reaffirms FY23 revs guidance; co also names new CEO
Sabra Health Care REIT ( SBRA 0.00% ) reports FFO in-line, beats on revs
Sealed Air ( SEE ▾ 0.90% ) beats by $0.13, misses on revs; lowers FY23 EPS below consensus, revs below consensus
SeaWorld Entertainment ( SEAS ▾ 0.02% ) misses by $0.36, misses on revs
ShockWave Medical ( SWAV 0.00% ) misses by $0.07, beats on revs; guides FY23 revs above consensus
Skyworks ( SWKS 0.00% ) beats by $0.06, reports revs in-line; guides Q4 EPS above consensus, revs in-line; increases dividend by 10%
Spirit Realty Capital ( SRC ▴ 0.81% ) reports FFO in-line; guides FY23 FFO below consensus2
Squarespace ( SQSP ▴ 0.34% ) reports Q2 (Jun) results, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus
Sterling Check Corp. ( STER 0.00% ) beats by $0.01, reports revs in-line; guides FY23 revs in-line
Tecnoglass ( TGLS ▾ 0.97% ) beats by $0.09, beats on revs; raises FY23 revs in-line
Teradata ( TDC ▾ 0.39% ) beats by $0.03, beats on revs; guides Q3 EPS in-line; reaffirms FY23 EPS guidance, revs guidance
Thoughtworks ( TWKS 0.00% ) misses by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus; announces restructuring
Tidewater ( TDW ▾ 2.59% ) reports Q2 results; misses on revs
Transdigm Group ( TDG ▴ 2.02% ) beats by $0.87, beats on revs; raises FY23 EPS above consensus, revs above consensus
Under Armour ( UAA ▾ 1.40% ) beats by $0.04, beats on revs; reaffirms FY24 EPS guidance
UPS ( UPS ▴ 0.67% ) beats by $0.05, misses on revs; guides FY23 revs below consensus
Veeco Instruments ( VECO 0.00% ) beats by $0.06, beats on revs; guides Q3 EPS in-line, revs in-line
Warner Music Group ( WMG 0.00% ) reports Q3 (Jun) results, beats on revs
Weis Markets ( WMK ▾ 0.74% ) reports Q2 EPS of $1.27; revenue rose 3.8% yr/yr to $1.18 bln; no estimates
WideOpenWest ( WOW ▴ 0.61% ) misses on revs, beats on adjusted EBITDA; guides Q3 revs in-line; guides FY23 revs below consensus
Zai Lab ( ZLAB 0.00% ) misses by $0.46, missed on revs
Zoetis ( ZTS ▴ 1.15% ) beats by $0.10, beats on revs; raises FY23 EPS guidance; lowers FY23 revenue guidance
News:
Italy puts 40% windfall profit tax on banks, according to Reuters
400K are without power in eastern US following storms, according to CNN
Amarin ( AMRN 0.00% ) and Neopharm announce exclusive commercialization agreement for VAZKEPA (icosapent ethyl) in Israel
Apple ( AAPL 0.00% ) will save money on chips for next iPhone, according to TheInformation
3D Systems ( DDD ▾ 1.00% ) and Theradaptive have entered a commercial agreement naming 3D Systems as Theradaptive's exclusive 3D printing partner
Beyond Air ( XAIR 0.00% ) announces the presentation of data that support the ongoing preclinical development of selective neuronal nitric oxide synthase inhibibitors for the treatment of Autism Spectrum Disorder
Cellebrite DI ( CLBT 0.00% ) announces that Thomas E. Hogan has been appointed Executive Chairman of the Board
Grupo Aeroportuario Del Sureste ( ASR ▴ 0.81% ) announces that passenger traffic for July 2023 reached a total of 6.5 million passengers, 4.9% above the levels reported in June
Earthstone Energy ( ESTE ▾ 1.05% ) announces that Warburg Pincus LLC and its affiliates recently sold its remaining 12.9 mln shares of Earthstone's Class A common stock
Elevance Health ( ELV ▴ 1.65% ) announces that John Gallina will retire from his role as executive vice president and CFO later this year
El Pollo Loco ( LOCO 0.00% ) entered into a Stock Repurchase Agreement with FS Affiliates; co agreed to purchase an aggregate of 2,500,000 shares of common stock from the Sellers at a price of $10.63 per share
Emergent BioSolutions ( EBS ▴ 1.23% ) announces strategic steps to strengthen core business and financial position
Fiserv ( FISV ▴ 1.78% ) entered into a Stock Purchase Agreement with ValueAct Capital to repurchase 4,098,935 shares of common stock for $121.9829 per share in a privately negotiated transaction for $499,999,978.21
Fortuna Silver Mines ( FSM ▾ 1.50% ) intersects 90.9 g/t Au over 1.8 meters at Barana Prospect, Sgula Mine, Cte dIvoire
Grupo Aeroportuario ( OMAB 0.00% ) reports that terminal passenger traffic at its 13 airports increased 17.1% in July 2023, as compared to July 2022. Domestic traffic increased 16.6%, and international traffic increased 20.9%
Hanesbrands ( HBI ▾ 2.25% ): Barrington Capital sends letter to HBI outlining call for immediate and decisive actions to create long-term value for shareholders
Hewlett Packard Enterprise ( HPE ▴ 1.04% ) announces that CFO Tarek Robbiati will step down on August 25,2023 to assume CEO role at Ring Centtral (RNG)
ICF International ( ICFI 0.00% ): Puerto Rico selects ICF for $24 million disaster management contract
Kemper ( KMPR ▴ 0.88% ) announces exit from preferred home and auto business
Lockheed Martin ( LMT ▴ 0.91% ) successfully validates designs for all elements of the nation's Next Generation Interceptor with the U.S. Missile Defense Agency
Myriad Genetics ( MYGN 0.00% ) announces enhancements to the GeneSight Psychotropic test, a pharmacogenomic test for mental health medications
National CineMedia ( NCMI 0.00% ) Successfully Completes Financial Restructuring and Announces New Board of Directors
Novavax ( NVAX 0.00% ) and SK bioscience entered into a Settlement Agreement regarding mutual release of all claims in relation to certain statements of work canceled
Novo Nordisk A/S ( NVO ▴ 3.04% ): Semaglutide 2.4 mg reduces the risk of major adverse cardiovascular events by 20% in adults with overweight or obesity in the SELECT trial
Proterra ( PTRA 0.00% ) files for voluntary Chapter 11 Reorganization to maximize value of the business & product line potential
Qiagen ( QGEN ▾ 0.88% ) announces the U.S. Food and Drug Administration approval of its therascreen PDGFRA RGQ PCR kit
RingCentral ( RNG ▴ 0.88% ) announced that Tarek Robbiati has been appointed as the Company's Chief Executive Officer, effective August 28, 2023
Snap ( SNAP ▾ 1.67% ): UK aiming to investigate underage users on Snapchat, acording to Reuters
Standard Lithium ( SLI ▾ 3.08% ) reports feasibility study results for its South West Arkansas project
Taiwan Semiconductor Manufacturing ( TSM ▴ 0.20% ), Bosch, Infineon, and NXP establish joint venture to bring advanced semiconductor manufacturing to Europe; total investments are expected to exceed 10 billion euros
Zoom ( ZM 0.00% ) to require employees in office two days a week, according to the New York Times
M&A:
ADT ( ADT ▾ 2.84% ) has entered into a definitive agreement to sell its commercial security, fire and life safety business unit to GTCR for a purchase price of $1.6 bln
Allegro Microsystems ( ALGM 0.00% ) to acquire Crocus Technology for $420 mln in cash
Dish ( DISH 0.00% ): Charlie Ergen nearing deal to merge Dish and EchoStar (SATS), according to the Wall Street Journal
DISH Network ( DISH 0.00% ) confirmed entered into an Agreement and Plan of Merger with EchoStar (SATS) on Aug 8
DuPont ( DD ▴ 1.36% ): Lone Star Funds and Platinum Equity interested in DD's Delrin resins unit, according to Bloomberg
Five9 ( FIVN 0.00% ) has entered into a definitive agreement to acquire Aceyus; financial terms were not disclosed
KKR ( KKR ▴ 2.69% ) and Paramount Global (PARA) confirm agreement pursuant to which KKR will acquire of Simon & Schuster for $1.62 billion cash
Tilray ( TLRY 0.00% ) has entered into a definitive agreement to acquire eight beer and beverage brands from Anheuser-Busch (BUD)
Vivid Seats ( SEAT 0.00% ) has entered into a definitive agreement to acquire WD Holdings Co. for ~$61 mln
Woodside Energy Group ( WDS ▴ 0.32% ) to sell 10% Scarborough interest to LNG Japan
Syndicate:
Beacon Roofing Supply ( BECN 0.00% ) announces pricing of secondary offering of $83.65/share for its 5 million common stocks
DoubleVerify ( DV ▴ 0.42% ) prices offering of 12.5 mln shares of common stock at $32.65 per share
Gladstone Investments ( GAIN 0.00% ) entered into a sales agreement providing for the issuance of up to an aggregate of $50 million of its common stock
Hercules Capital ( HTGC ▴ 1.52% ) prices offering of 6.5 mln shares of common stock
Safehold ( SAFE ▴ 1.62% ) has commenced an underwritten public offering to sell 6,500,000 shares of its common stock
Turning Point Brands ( TPB ▴ 1.74% ) files $500 mln mixed shelf securities offering
Vertiv ( VRT ▴ 0.03% ) announces pricing of secondary offering by VPE Holdings, LLC, an affiliate of Platinum Equity, LLC
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
CHGG +21.7%, HIMS +16.1%, KD +15.5%, PAY +13.5%, SEAT +10.9%, PLUS +10.8%, TLRY +10.4%, NCMI +8.2%, MED +6.5%, MTW +6%, HAE +5.9%, PRIM +5%, DO +4.4%, JELD +4.1%, CXW +3.7%, RDNT +3.7%, PARA +3.3%, JHX +3.3%, SLI +3%, WTRG +2.6%, PRAA +2.6%, ACVA +2.6%, CRSP +2.5%, SRC +2.4%, ATKR +2.2%, NVST +2.1%, WHD +2%, CSWC +2%, WMK +2%, MNKD +2%, SQSP +2%, LCID +1.7%, IHG +1.6%, AMC +1.6%, SBRA +1.4%, GBDC +1.4%, JRVR +1.3%, HNRG +1.1%, MAG +1.1%
Gapping down:
PTRA -61.7%, AYX -26.3%, IFF -22.1%, MRVI -17.1%, BYND -15.4%, MRC -12.6%, RNG -12.4%, ICUI -9.2%, TDW -7.4%, INGN -7.1%, FIVN -6.9%, HTGC -6.6%, HLIO -6.3%, SAFE -6%, UPS -5.6%, DCGO -4.9%, PWSC -4.4%, TDC -4%, CTRA -3.9%, SWAV -3.4%, BECN -3.2%, DAWN -3.1%, DV -3%, NSA -2.9%, USB -2.3%, BK -2.3%, AEL -2.3%, CE -2.2%, WBS -2.1%, ARWR -2.1%, LI -2%, CBT -1.8%, FGEN -1.7%, ACM -1.6%, INGR -1.5%, KMPR -1.3%, MXL -1.3%, VRT -1.2%, STT -1.2%, DDD -1%, FLR -1%, ZLAB -1%, HPK -1%, VECO -1%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
DraftKings (DKNG) upgraded to Buy from Hold at Truist; tgt raised to $44
Quanterix (QTRX) upgraded to Outperform from Market Perform at SVB Securities; tgt $30
Paymentus (PAY) upgraded to Neutral from Sell at Goldman; tgt raised to $12
Tronox (TROX) upgraded to Neutral from Underperform at Credit Suisse; tgt raised to $13
Vericel (VCEL) upgraded to Buy from Neutral at BTIG Research; tgt $39
XPeng (XPEV) upgraded to Buy from Outperform at CLSA; tgt $24
Downgrades:
Barclays PLC (BCS) downgraded to Neutral from Outperform at Exane BNP Paribas
Douglas Emmett (DEI) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $10
Enanta Pharmaceuticals (ENTA) downgraded to Hold from Buy at Jefferies; tgt lowered to $18
FibroGen (FGEN) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $2
Freshpet (FRPT) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $84
Inogen (INGN) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $8
Kilroy Realty (KRC) downgraded to Neutral from Buy at BofA Securities
Maravai Life Sciences (MRVI) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Proterra (PTRA) downgraded to Neutral from Buy at BTIG Research
SAGE Therapeutics (SAGE) downgraded to Hold from Buy at Canaccord Genuity; tgt lowered to $21
UWM Holdings (UWMC) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
Westlake Corporation (WLK) downgraded to Underweight from Neutral at JP Morgan; tgt raised to $123
Willis Towers Watson (WTW) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt lowered to $205
Others:
Exelixis (EXEL) initiated with a Market Perform at SVB Securities; tgt $18
Econ Data:
06:00 ET: NFIB Small Business Optimism for July (Briefing.com Consensus 92.1; Prior 91.0)
08:30 ET: Trade Balance for June (Briefing.com Consensus -$65.1B; Prior -$69.0B)
10:00 ET: Wholesale Inventories for June (Briefing.com Consensus -0.3%; Prior 0.0%)
Earnings:
Monday (Aug 7)
Morning: ACRS RCUS BNTX DK ELAN FRPT GENI GOGO HSIC KKR THS TSN VTRS
Afternoon: ACVA ADTN ACM AYX AEL ARWR BRBR BYND CBT WHD CSWC CE CHGG COMP CXW CTRA WTRG EVCM FGEN FIVN FSK HLIO HPK HIMS ICUI INGN IFF JRVR JELD KMPR KD LCID MTW MNKD MRVI MED MRC NSA OKE PLTR PARA PAY PWSC PRAA PRI PRIM RNG SWAV SWKS SRC TDC VECO
Tuesday (Aug 8)
Morning: MASS AHCO ADT ALE ARMK ATKR GOLD BSY TECH BLUE BR CPRI CLBT CRNC CHH DDOG DUK DEA EHTH LLY EMBC EXK ENR NPO EVBG EXPD FOXA GLBE GFS HAE HR HLMN HNI HZNP INGR IRWD J SWIM LCII LI MAC MPW NYT NXST NOVT NVAX OLPX OGN PAYO PRGO PLTK RDNT QSR SEE SEAS MCRB SMRT SQSP STER TGLS TWKS TPG TDG UAA UPS WMG WOW ZTS
Afternoon: ME TWOU EGHT ACCO AGTI AKAM BIRD AMC AMPL ANGI ARRY AXON AZEK AZTA BW BBAI BL BLNK BHF BMBL CDRE CDNA CELH CPNG CRCT CTOS CUTR DAR DHT APPS DIOD BOOM DOCS DUOL BROS EBS EDR ESE EXFY FATE FNF FLT FLYW FNV GO HALO HCAT HL HRT HNST TWNK HBM IAC ICHR IOSP PODD IPAR NVTA IOVA IRBT JXN JAMF KLIC LZ LGND LNW LPSN LAZR LYFT MQ MASI DOOR MTTR MRTX MODN NHI LPRO OSCR PETQ PRA PUBM QGEN QDEL RXT RPD RLAY RVNC RVMD RIVN STR SLF SMCI SUPN TTWO TALO TTGT TOST MODG TWLO USPH UPST VVX VCYT VTLE VZIO VTEX VUZI WES ZIP
Wednesday (Aug 9)
Morning: DIBS DDD ATMU AVNS BLDP BERY BCO CAE CEVA CRL DCPH EBIX EVRI FA GEO GDRX INSW IONS JACK KRNT LFST LL NOMD ODP OGE OLK PENN REYN RBLX SHCR SSYS SLVM TBLA SKIN VVV VERX VSH WRBY WEN WE XMTR
Afternoon: ALRM AOSL APP AVTA AVID BBDC CACI CERT CLNE CDE CPA CYRX LAW ENS G HROW ILMN INFN JAZZ LGF.A RAMP MGNI MFC OEC ONL PAAS PAR PLUG PTRA PRPL QNST RPAY SONO SOVO STKL TASK TTEK TTD VRRM VSAT DIS WYNN XENE
Thursday (Aug 10)
Morning: AQN BABA AIT AZUL CYBR HBI HIMX HLLY IMCR KELYA DNUT NABL EYE PRMW RL SIX USFD UTZ WKME WWW YETI
Afternoon: ATGE ARLO RCEL FLO INDI NWSA ONTO SVV VTYX VIAV WPM YMAB
Friday (Aug 11)
Morning: SPB
Asia & Europe detail:
Asia: Nikkei +0.3%, Hang Seng -1.8%, Shanghai Composite -0.3%
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. China reported a bigger than expected trade surplus for July, but imports contracted at their fastest pace in over two years, implying weakening domestic demand. Property names in Hong Kong saw renewed weakness with the Hang Seng Mainland Properties Index giving back most of its remaining gains from July after Country Garden acknowledged that usable cash levels have been declining steadily. Real wages in Japan decreased for the 15th consecutive month in June.
In economic data:
China's July trade surplus $80.6 bln (expected surplus of $70.6 bln; last surplus of $70.6 bln). July Imports -12.4% yr/yr (expected -5.0%; last -6.8%) and Exports -14.5% yr/yr (expected -12.5%; last -12.4%)
Japan's June Average Cash Earnings 2.3% yr/yr (expected 1.6%; last 2.9%) and June overall wage income 2.3% yr/yr (expected 1.6%; last 2.9%). June Household Spending 0.9% m/m (expected 0.3%; last -1.1%); -4.2% yr/yr (expected -4.1%; last -4.0%). June Current Account surplus JPY1.509 trln (expected surplus of JPY1.395 trln; last surplus of JPY1.862 trln). July Bank Lending 2.9% yr/yr (expected 3.1%; last 3.1%). July Economy Watchers Current Index 54.4 (expected 54.5; last 53.6)
South Korea's June Current Account surplus $5.87 bln (expected surplus of $260 mln; last surplus of $1.93 bln)
Australia's August Westpac Consumer Sentiment -0.4% (last 2.7%). July NAB Business Confidence 2 (expected -1; last -1) and Business Survey 10 (expected 8; last 10)
---Equity Markets---
Japan's Nikkei: +0.3%
Hong Kong's Hang Seng: -1.8%
China's Shanghai Composite: -0.3%
India's Sensex: -0.2%
South Korea's Kospi: -0.3%
Australia's ASX All Ordinaries: UNCH
---FX---
USD/JPY: +0.5% to 143.27
USD/CNH: +0.5% to 7.2356
USD/INR: +0.1% to 82.81
Europe: DAX -1.4%, FTSE -0.7%, CAC -1.2%
Major European indices trade in the red. Bank stocks are under pressure after Italy's cabinet approved a one-off 40% tax on windfall profits of banks, aiming to raise about EUR3 bln. Bank of England Chief Economist Pill said that expected food price inflation is expected to decrease 10% in 2023, but retail prices may not fall for "a little while." The latest consumer expectations survey from the European Central Bank showed that one-year inflation expectations slowed to 3.4% from 3.9% while three-year expectations slowed to 2.3% from 2.5%.
In economic data:
Germany's July CPI 0.3% m/m, as expected (last 0.3%); 6.2% yr/yr, as expected (last 6.4%)
France's June trade deficit EUR6.7 bln (expected deficit of EUR8.0 bln; last deficit of EUR7.9 bln). June Current Account surplus $800 mln (expected deficit of $400 mln; last deficit of $700 mln)
---Equity Markets---
STOXX Europe 600: -0.5%
Germany's DAX: -1.4%
U.K.'s FTSE 100: -0.7%
France's CAC 40: -1.2%
Italy's FTSE MIB: -2.5%
Spain's IBEX 35: -1.3%
---FX---
EUR/USD: -0.5% to 1.0948
GBP/USD: -0.5% to 1.2718
USD/CHF: +0.5% to 0.8771
Comments