The S&P 500 futures are up 24 points and are trading 0.6% above fair value. The Nasdaq 100 futures are up 94 points and are trading 0.6% above fair value. The Dow Jones Industrial Average futures are up 123 points and are trading 0.4% above fair value.
Futures are indicating a higher open after some better-than-expected earnings reports from technology companies. Salesforce Inc (CRM) and NVIDIA (NVDA), though, disappointed with guidance.
Tesla (TSLA) is providing some underlying support, as its shares move up with a 3-for-1 stock split that takes effect today. Other mega cap stocks are sporting gains in premarket action that have also helped the standing of the futures market.
In overseas news, Germany's Q2 GDP was revised higher by ten basis points after the flash reading showed no growth. The Bank of Korea raised its base rate by 25 bps to 2.50%, as expected.
Treasury yields are little changed this morning. The 10-yr note yield is down two basis points to 3.09% while the 2-yr note yield is unchanged at 3.37%. Atlanta Fed President Bostic (not an FOMC voter) said he's not sure the U.S. has reached peak inflation and Kansas City Fed President George (FOMC voter) said more work needs to be done on inflation.
WTI crude oil futures are up 0.2% to $95.13/bbl. Natural gas futures are up 0.2% to $9.35/mmbtu.
Market participants will receive the Q2 GDP second estimate (Briefing.comconsensus -0.9%; prior -0.9%), Q2 GDP Deflator second estimate (Briefing.comconsensus 8.7%; prior 8.7%), weekly initial jobless claims (Briefing.comconsensus 253,000; prior 250,000) and conti8nuing claims (prior 1.437 million) at 8:30 a.m. ET. Weekly natural gas inventories (prior +18 bcf) are out at 10:30 a.m. ET.
In corporate news:
Snowflake (SNOW 189.39, +29.90, +18.75%): reports Q2 results, beats on revs; raises FY23 product revenue guidance, raises non-GAAP gross margin guidance
Salesforce (CRM 167.43, -12.58, -6.99%): beats by $0.16, reports revs in-line; guides OctQ EPS and revs below consensus; guides FY23 EPS and revs below consensus; announces $10 bln share repurchase authorization
Splunk (SPLK 99.41, -10.95, -9.92%): beats by $0.44, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus
Autodesk (ADSK 234.02, +19.59, +9.14%): beats by $0.08, reports revs in-line; guides Q3 (Oct) EPS mostly above consensus, revs above consensus; guides FY23 EPS mostly above consensus, revs in-line
NVIDIA (NVDA 166.15, -6.07, -3.52%): misses by $0.01, reports revs in-line; guides Q3 revs below consensus due to a sequential decline in Gaming and Professional Visualization revs as OEMs reduce inventory levels to align with demand
Peloton (PTON 11.33, -2.15, -15.95%): misses by $2.91, reports revs in-line; guides Q1 revs below consensus
Amazon (AMZN 135.24, +1.44, +1.08%): ticks higher on report it plans to shut down its telehealth offering, according to Washington Post
Dollar General (DG 241.90, -5.55, -2.24%): beats by $0.04, reports revs in-line; guides FY23 EPS in-line, revs above consensus
NetApp (NTAP 77.77, +4.95, +6.80%): beats by $0.10, beats on revs; guides Q2 EPS in-line, revs in-line; reaffirms FY23 EPS guidance, revs guidance
Williams-Sonoma (WSM 165.11, +2.67, +1.64%): beats by $0.37, beats on revs, comps +11.3%; reaffirms its FY22 and long-term financial outlook
Dollar Tree (DLTR 153.12, -12.86, -7.75%): misses by $0.02, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
Tesla (TSLA 303.51, +6.41, +2.16%): 3-for-1 stock split goes into effect today
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: +3.6%, China's Shanghai Composite: +1.0%, India's Sensex: -0.5%, South Korea's Kospi: +1.2%, Australia's ASX All Ordinaries: +0.7%.
In economic data:
Japan's July Corporate Services Price Index 2.1% yr/yr (expected 2.2%; last 2.1%)
South Korea's July PPI 0.3% m/m (last 0.6%); 9.2% yr/yr (last 10.0%)
Hong Kong's July trade deficit HKD27.60 bln. July Imports -9.9% m/m (last 0.5%) and Exports -8.9% m/m (last -6.4%)
New Zealand's Q2 Retail Sales -2.3% qtr/qtr (expected 1.7%; last -0.9%)
In news:
Trading at the Hong Kong Exchange was suspended for the first part of the day due to a typhoon.
Japan's cabinet office maintained its overall economic assessment for August but raised its view of factory production and public investment.
The Bank of Korea raised its base rate by 25 bps to 2.50%, as expected. Bank of Korea Governor Rhee said that the base rate is currently in the middle of the neutral range and it should hit the upper end of that range if hot inflation persists.
Major European indices trade on a modestly higher note while Germany's DAX (+0.6%) outperforms. STOXX Europe 600: +0.2%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.2%.
In economic data:
Germany's Q2 GDP 0.1% qtr/qtr (expected 0.0%; last 0.2%); 1.8% yr/yr (expected 1.5%; last 1.5%). August ifo Business Climate Index 88.5 (expected 86.8; last 88.7). August Current Assessment 97.5 (expected 96.0; last 97.7) and Business Expectations 80.3 (expected 79.0; last 80.4)
U.K.'s August CBI Distributive Trades Survey 37 (expected -7; last -4)
France's August Business Survey 104, as expected (last 106)
Spain's July PPI 40.4% yr/yr (last 43.1%)
In news:
Germany's Q2 GDP was revised higher by ten basis points after the flash reading showed no growth.
Germany's economy ministry warned that it sees future problems with the supply of coal for power plants and the supply of oil for the eastern part of the country. Economists from Germany's ifo Institute warned that the risk of recession remains present, though supply chain bottlenecks eased in August.
Norwegian Air reported a decrease in profit for Q2 and warned that high fuel prices will impact results for the year.
U.S. equity futures:
S&P 500 Futures: +24 @ 4,165
DJIA Futures: +112 @ 33,082
Nasdaq 100 Futures: +91 @ 13,009
Overseas:
Europe: DAX +0.6%, FTSE +0.3%, CAC +0.2%
Asia: Nikkei +0.6%, Hang Seng +3.6%, Shanghai Composite +1.0%
Commodities:
Crude Oil +0.33 @ 95.22
Nat Gas +0.013 @ 9.343
Gold +15.50 @ 1777.00
Silver +0.261 @ 19.168
Copper +0.0512 @ 3.6952
U.S. Summary:
Earnings/Guidance:
Abercrombie & Fitch (ANF) misses by $0.53, misses on revs; guides Q3 revs below consensus; guides FY23 revs below consensus
Autodesk (ADSK) beats by $0.08, reports revs in-line; guides Q3 (Oct) EPS mostly above consensus, revs above consensus; guides FY23 EPS mostly above consensus, revs in-line
Box (BOX) reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs in-line; raises FY23 EPS in-line, revs in-line
Burlington Stores (BURL) beats by $0.14, misses on revs; guides Q3 EPS below consensus; guides FY23 EPS below consensus
CIBC (CM) misses by CAD 0.18
Coty (COTY) reports EPS in-line, beats on revs; provides Q1 and FY23 guidance
Dollar General (DG) beats by $0.04, reports revs in-line; guides FY23 EPS in-line, revs above consensus
Dollar Tree (DT) misses by $0.02, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
Frontline (FRO) beats by $0.01
Gold Fields (GFI) beats by $0.06
Guess? (GES) misses by $0.02, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS above consensus, revs in-line
Hain Celestial (HAIN) misses by $0.10, misses on revs
Hibbett (HIBB) misses by $0.30, reports revs in-line; guides FY23 EPS above consensus, revs above consensus
Lancaster Colony (LANC) beats by $0.55, beats on revs
Malibu Boats (MBUU) beats by $0.14, beats on revs; guides FY22 revs above consensus
NetApp (NTAP) beats by $0.10, beats on revs; guides Q2 EPS in-line, revs in-line; reaffirms FY23 EPS guidance, revs guidance
NVIDIA (NVDA) misses by $0.01, reports revs in-line; guides Q3 revs below consensus due to a sequential decline in Gaming and Professional Visualization revs as OEMs reduce inventory levels to align with demand
Peloton (PTON) misses by $2.91, reports revs in-line; guides Q1 revs below consensus
Salesforce (CRM) beats by $0.16, reports revs in-line; guides OctQ EPS and revs below consensus; guides FY23 EPS and revs below consensus; announces $10 bln share repurchase authorization
Sibanye-Stillwater (SBSW) reprots H1 results
Snowflake (SNOW) reports Q2 results, beats on revs; raises FY23 product revenue guidance, raises non-GAAP gross margin guidance
Splunk (SPLK) beats by $0.44, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus
Titan Machinery (TITN) beats by $0.40, beats on revs; guides FY23 EPS above consensus
Toronto-Dominion Bank (TD) beats by CAD 0.05
Victoria's Secret (VSCO) beats by $0.14, misses on revs, comps of -8%; guides Q3 revs below consensus; guides FY23 below consensus
Williams-Sonoma (WSM) beats by $0.37, beats on revs, comps +11.3%; reaffirms its FY22 and long-term financial outlook
Zuora (ZUO) beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus
General News:
Economists are concerned that student loan forgiveness will trigger higher inflation, according to Financial Times
White House confirms details of student loan forgiveness plan
US and Iran are getting closer to nuclear deal, according to the Wall Street Journal
Atlanta Fed President Raphael Bostic (not a voting FOMC member) says that he is not sure that US has reached peak inflation - CNBC
California confirms that it will ban new gasoline powered car sales by 2035
Texas Comptroller Glenn Hegar announces list of financial companies that boycott energy companies
AbbVie (ABBV) receives FDA approval for IMBRUVICA
AstraZeneca's (AZN) Ultomiris approved in Japan; Tagrisso approved in Japan
AstraZeneca (AZN) and Merck's (MRK) Lynparza approved in Japan
Avalara (AVLR) announces new partnership with Xero
Bed Bath and Beyond (BBBY) nearing $375 mln loan deal, according to Bloomberg
BioCryst Pharma (BCRX): U.S. Gov't exercises option to purchase additional 10K doses of RAPIVAB (peramivir injection) for ~$7 mln
BRP Inc. (DOOO) provides update on data leak
Callaway Golf (ELY) announces plans to change its name to "Topgolf Callaway Brands Corp."; name change expected to be effective on or about September 6, 2022
Century Therapeutics (IPSC) Receives Study May Proceed Notification from FDA for CNTY-101, the First Allogeneic Cell Therapy Product Candidate Engineered to Overcome Three Major Pathways of Host vs Graft Rejection
Citigroup (C) aiming to wind down Russian unit, according to the Wall Street Journal
Clearway Energy (CWEN) announces resource adequacy agreement for El Segundo Energy Center
Clover (IBB) announces positive phase 2/3 results in adolescents for its COVID-19 vaccine
Dollar Tree (DLTR) announces a key executive leadership addition, as Jeffrey A. Davis will be joining the organization as Chief Financial Officer
Energy Transfer's (ET) subsidiary, Energy Transfer LNG Export, enters into 20-year LNG Sale and Purchase Agreement with Shell
GameStop (GME) is boosting compensation for some store employees, according to the Wall Street Journal
Glatfelter Co (GLT) announced that Thomas Fahnemann has been appointed to the role of President and Chief Executive Officer, effective immediately
Honda (HMC) power plant in China remains closed amid power issues, according to Bloomberg
Hudbay Minerals (HBM) announces exploration agreement for Maria Reyna and Caballito satellite properties near Constancia in Peru
Hyliion (HYLN) has entered into a definitive agreement to acquire a new hydrogen and fuel agnostic capable generator from GE Additive - part of GE (GE)
ICF International (ICFI) recently selected by EPA as awardee under EARTH blanket purchase agreement; five-year BPA has ceiling value of $5.7 bln across all awardees
Iovance Biotherapeutics (IOVA) has initiated a rolling Biologics License Application submission to the U.S. Food and Drug Administration for lifileucel in patients with advanced melanoma who progressed on or after prior anti-PD-1/L1 therapy, and if BRAF mutation positive, also prior BRAF or BRAF/MEK inhibitor therapy
Ligand Pharma (LGND): Janssen Biotech receives conditional marketing authorization (CMA) from the European Commission for TECVAYLI for the treatment of patients with relapsed or refractory multiple myeloma
Novartis AG (NVS) intends to separate Sandoz business to create a standalone company by way of a 100% spin-off
NuScale Power (SMR) and Fermi Energia sign MOU to explore advanced nuclear application in Estonia
NXP Semi (NXPI) sees expanded customer engagements for its S32 platform
Olin (OLN) plans to permanently shut down approx. 225,000 ECU tons of diaphragm-grade chlor alkali capacity at its TX facility
Pfizer (PFE) announces positive top-line data from phase 3 trial of older adults for its bivalent respiratory syncytial virus vaccine candidate
Raymond James (RJF) reports operating data for July; Client Assets Under Administration increased 1% yr/yr
Sony (SONY) announces price increases for Playstation 5
Stellantis (STLA): Production at Stellantis' French car plant suspended until Saturdayamid chip supply issues, according to Reuters
TG Therapeutics (TGTX) Announces Results from the ULTIMATE I & II Phase 3 Trials of Investigational Ublituximab in RMS Published in The New England Journal of Medicine
Twitter (TWTR): Senate Judiciary Committee announces a full Committee hearing to investigate allegations of widespread security failures at Twitter and foreign state actor interference on Tuesday, September 13 at 10:00
M&A:
Amazon (AMZN) plans to shut down its telehealth offering, according to Washington Post
Aurora Cannabis (ACB) acquires controlling interest in Bevo Farms; expected to be immediately accretive to adj. EBITDA
Flexsteel Ind (FLXS) confirms receipt of unsolicited proposal from CSC Generation Holdings for $20.80 per share in cash
GSR II Meteora Acquisition Corp. (GSRM): Bitcoin Depot to merge with GSRM in SPAC deal with enterprise value of $755 million
MiX Telematics (MIXT) to acquire Trimble's Field Service Management Business
Zuora (ZUO) to acquire Zephr to accelerate its leadership in the media industry for $44 mln in cash; expects the acquisition to add $2 mln of subscription revs for FY23
Syndicate:
Absci Corporation (ABSI) files for $250 mln mixed securities shelf offering
Charge Enterprises (CRGE) files for 28,697,543 share common stock offering by selling shareholders
eHealth (EHTH) files for $300 mln mixed securities shelf offering
Lordstown Motors (RIDE) files for $500 mln mixed securities shelf offering
MKS Instruments (MKSI) files for 8,482,732 share common stock offering by selling shareholders
PDS Biotechnology (PDSB) files for $150 mln mixed securities shelf offering
The Beauty Health Company (SKIN) files for 65,618 share common stock offering by selling shareholders
Waldencast plc (WALD) files for 29,533,282 share common stock offering; also files for 121,120,063 share common stock offering by selling shareholders; relates to warrants
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
SNOW +17.4%, ADSK +8.7%, NTAP +6%, GDRX +5%, CM +5%, AMWL +4.5%, TDOC +4.2%, ZTO +3.8%, FLXS +3.1%, WSM +2.6%, NXPI +2.5%, SBSW +2.3%, FRO +2.3%, ELY +2.1%, GFI +1.8%, GME +1.5%, BMRN +1.5%, AMZN +1.2%, DOOO +1%, ABBV+0.7%, LGND +0.6%, RIDE +0.5%
Gapping down:
SPLK -10.8%, VSCO -8.6%, CRM -6.3%, ZUO -5.7%, NVDA -3.7%, GES -1.2%, BOX -1.2%, CRGE -1%, PDSB -1%, SKIN -0.5%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
FREYR Battery (FREY) upgraded to Buy from Neutral at Goldman; tgt raised to $19
Downgrades:
Edgewise Therapeutics (EWTX) downgraded to Sell from Neutral at Goldman; tgt $5
Others:
Adaptive Biotechnologies (ADPT) initiated with an Underperform at Credit Suisse; tgt $8
Agilent (A) initiated with an Outperform at Credit Suisse; tgt $165
Avantor (AVTR) initiated with a Neutral at Credit Suisse; tgt $32
Bio-Rad Labs (BIO) initiated with an Outperform at Credit Suisse; tgt $715
Certara (CERT) initiated with an Outperform at Credit Suisse; tgt $22
Charles River (CRL) initiated with an Outperform at Credit Suisse; tgt $285
Danaher (DHR) initiated with an Outperform at Credit Suisse; tgt $340
Enhabit Inc. (EHAB) initiated with a Neutral at Credit Suisse; tgt $19
Exact Sciences (EXAS) initiated with an Outperform at Credit Suisse; tgt $55
Fulgent Genetics (FLGT) initiated with an Outperform at Credit Suisse; tgt $65
Guardant Health (GH) initiated with an Outperform at Credit Suisse; tgt $80
ICON plc (ICLR) initiated with a Neutral at Credit Suisse; tgt $260
Illumina (ILMN) initiated with a Neutral at Credit Suisse; tgt $230
IQVIA (IQV) initiated with an Outperform at Credit Suisse; tgt $300
Upcoming Events:
Econ Data:
08:30 ET: GDP - Second Estimate for Q2 (Briefing.comConsensus -0.9%; Prior -0.9%)
08:30 ET: GDP Deflator - Second Estimate for Q2 (Briefing.comConsensus 8.7%; Prior 8.7%)
08:30 ET: Initial Claims for Aug 20 (Briefing.comConsensus 253K; Prior 250K)
08:30 ET: Continuing Claims for Aug 13 (Briefing.comConsensus NA; Prior 1437K)
10:30 ET: EIA Natural Gas Inventories for Aug 20 (Briefing.comConsensus NA; Prior +18 bcf)
Earnings:
Monday (Aug 22)
Afternoon: DLO NDSN PANW ZM
Tuesday (Aug 23)
Morning: BNS BZUN DKS DOLE GDS SJM JD BEKE M MDT
Afternoon: AAP CAL INTU LZB JWN PYCR SCSC TOL URBN
Wednesday (Aug 24)
Morning: EAT DY IIVI WOOF RY
Afternoon: ADSK BOX GES NTAP NVDA CRM SNOW SPLK VSCO WSM ZUO
Thursday (Aug 25)
Morning: ANF BURL CM COTY DG DLTR FRO HAIN HIBB LANC MBUU PTON TITN TD
Afternoon: AFRM DELL DOMO ESTC FTCH GPS MRVL SUMO ULTA VMW WDAY
Friday (Aug 26)
Morning: JKS
Asia & Europe detail:
Asia: Nikkei +0.6%, Hang Seng +3.6%, Shanghai Composite +1.0%
Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Trading at the Hong Kong Exchange was suspended for the first part of the day due to a typhoon. Japan's cabinet office maintained its overall economic assessment for August but raised its view of factory production and public investment. The Bank of Korea raised its base rate by 25 bps to 2.50%, as expected. Bank of Korea Governor Rhee said that the base rate is currently in the middle of the neutral range and it should hit the upper end of that range if hot inflation persists.
In economic data:
Japan's July Corporate Services Price Index 2.1% yr/yr (expected 2.2%; last 2.1%)
South Korea's July PPI 0.3% m/m (last 0.6%); 9.2% yr/yr (last 10.0%)
Hong Kong's July trade deficit HKD27.60 bln. July Imports -9.9% m/m (last 0.5%) and Exports -8.9% m/m (last -6.4%)
New Zealand's Q2 Retail Sales -2.3% qtr/qtr (expected 1.7%; last -0.9%)
---Equity Markets---
Japan's Nikkei: +0.6%
Hong Kong's Hang Seng: +3.6%
China's Shanghai Composite: +1.0%
India's Sensex: -0.5%
South Korea's Kospi: +1.2%
Australia's ASX All Ordinaries: +0.7%
---FX---
USD/JPY: -0.5% to 136.49
USD/CNH: -0.3% to 6.8577
USD/INR: +0.1% to 79.87
Europe: DAX +0.6%, FTSE +0.3%, CAC +0.2%
Major European indices trade on a modestly higher note while Germany's DAX (+0.6%) outperforms. Germany's Q2 GDP was revised higher by ten basis points after the flash reading showed no growth. Germany's economy ministry warned that it sees future problems with the supply of coal for power plants and the supply of oil for the eastern part of the country. Economists from Germany's ifo Institute warned that the risk of recession remains present, though supply chain bottlenecks eased in August. Norwegian Air reported a decrease in profit for Q2 and warned that high fuel prices will impact results for the year.
In economic data:
Germany's Q2 GDP 0.1% qtr/qtr (expected 0.0%; last 0.2%); 1.8% yr/yr (expected 1.5%; last 1.5%). August ifo Business Climate Index 88.5 (expected 86.8; last 88.7). August Current Assessment 97.5 (expected 96.0; last 97.7) and Business Expectations 80.3 (expected 79.0; last 80.4)
U.K.'s August CBI Distributive Trades Survey 37 (expected -7; last -4)
France's August Business Survey 104, as expected (last 106)
Spain's July PPI 40.4% yr/yr (last 43.1%)
---Equity Markets---
STOXX Europe 600: +0.2%
Germany's DAX: +0.6%
U.K.'s FTSE 100: +0.3%
France's CAC 40: +0.2%
Italy's FTSE MIB: +0.3%
Spain's IBEX 35: +0.2%
---FX---
EUR/USD: +0.2% to 0.9985
GBP/USD: +0.4% to 1.1838
USD/CHF: -0.3% to 0.9634
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