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Writer's pictureSimon Charles Hooper

01/08/23 Briefing

Updated: Aug 2, 2023

The S&P 500 futures are down 14 points and are trading 0.3% below fair value. The Nasdaq 100 futures are down 83 points and are trading 0.5% below fair value. The Dow Jones Industrial Average futures are down 47 points and are trading 0.1% below fair value.

Stock futures are negative as investors react to the latest batch of earnings news, which has garnered mixed price action. Dow components Merck (MRK) and Caterpillar (CAT) have offered some support to the market after their earnings reports, along with Uber (UBER). Meanwhile, losses in names like JetBlue Airways (JBLU), Western Digital (WDC), and Norwegian Cruise Line (NCLH) have kept the market in check in addition to a sense that the market is overdue for a pullback after the strong start to the year.

China's Caixin Manufacturing PMI returned into contractionary territory after expanding slightly for the past two months. Elsewhere, final July Manufacturing PMI readings from Germany, France, U.K., Spain, and Italy remained in contractionary territory.

U.S. economic data today will include:

  • 9:45 ET: Final July S&P Global U.S. Manufacturing PMI (prior 46.3)

  • 10:00 ET: June Construction Spending (Briefing.comconsensus 0.6%; prior 0.9%), July ISM Manufacturing Index (Briefing.comconsensus 46.8%; prior 46.0%), and June JOLTS- job openings (prior 9.824 mln)

In corporate news:

  • Merck (MRK 108.45, +1.80, +1.7%): beats by $0.12, beats on revs; guides FY23 EPS above consensus, raises revs in-line

  • Caterpillar (CAT 269.20, +4.03, +1.5%): beats by $0.98, beats on revs

  • BP (BP 37.70, +0.40, +1.1%): misses by $0.26; misses on revs; raises dividend; increases share repurchase program

  • Uber (UBER 51.37, +1.91, +3.9%): beats by $0.19, misses on revs

  • CVS (CVS 74.50, -0.19, -0.3%): aiming to eliminate 5000 jobs, according to WSJ

  • Pfizer (PFE 35.73, -0.33, -0.9%): beats by $0.10, misses on revs; reaffirms FY23 EPS guidance; slightly lowered top end of FY23 rev guidance

  • ZoomInfo (ZI 20.46, -5.11, -20.0%): beats by $0.03, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs below consensus, also announces $500 mln share repurchase authorization; downgraded to Hold from Buy at Deutsche Bank

  • Western Digital (WDC 41.50, -1.06, -2.5%): beats by $0.04, beats on revs; guides SepQ EPS below consensus, revs below consensus; Flash market dynamics are improving as inventories normalize and price declines moderate

  • Stanley Black & Decker (SWK 100.50, +1.23, +1.2%): beats by $0.25, beats on revs; guides FY23 EPS in-line

  • SBA Comm (SBAC 223.61, +4.66, +2.1%): beats by $0.09, reports revs in-line; raises FY23 FFO above consensus, raises revs in-line; declares dividend

  • JetBlue Airways (JBLU 7.30, -0.47, -6.1%): beats by $0.01, reports revs in-line; guides Q3 EPS below consensus; guides FY23 EPS below consensus

  • Eaton (ETN 210.29, +4.97, +2.4%): beats by $0.10, beats on revs; guides Q3 EPS above consensus; raises FY23 EPS above consensus

  • Norwegian Cruise Line (NCLH 20.48, -1.58, -7.5%): beats by $0.04, beats on revs; guides Q3 EPS below consensus; guides FY23 EPS in-line

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +0.8%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: UNCH, India's Sensex: -0.1%, South Korea's Kospi: +1.3%, Australia's ASX All Ordinaries: +0.5%.

  • In economic data:

  • Japan's July Manufacturing PMI 49.6 (expected 49.4; last 49.8). June jobs/applications ratio 1.30 (expected 1.32; last 1.31) and June Unemployment Rate 2.5%, as expected (last 2.6%)

  • China's July Caixin Manufacturing PMI 49.2 (expected 50.3; last 50.5)

  • South Korea's July Manufacturing PMI 49.4 (expected 48.1; last 47.8). July trade surplus $1.63 bln (expected surplus of $3.03 bln; last surplus of $1.13 bln). July Imports -25.4% yr/yr (expected -24.6%; last -11.7%) and Exports -16.5% yr/yr (expected -14.5%; last -6.0%)

  • India's July Manufacturing PMI 57.7 (expected 57.0; last 57.8)

  • Hong Kong's June Retail Sales 19.6% yr/yr (expected 26.7%; last 18.4%)

  • Australia's June Building Approvals -7.7% m/m (expected -7.0%; last 20.5%). June Home Loans -2.8% m/m (expected 1.7%; last 5.1%) and Private House Approvals -1.3% m/m (last 0.9%). July Commodity Prices -23.5% yr/yr (expected -19.0%; last -21.5%) and July Manufacturing PMI 49.6 (expected 49.4; last 49.8)

  • New Zealand's June Building Consents 3.5% m/m (expected 0.3%; last -2.3%)

  • In news:

  • Property names in Hong Kong gave back some of their stimulus-driven gains from last week.

  • China's Caixin Manufacturing PMI returned into contractionary territory after expanding slightly for the past two months.

  • China's National Development and Reform Commission noted that the recovery in some consumption categories has been tentative and consumer confidence has been lacking.

  • Japan's Ministry of Labor is reportedly seeking a record increase to the minimum hourly pay.

  • The Reserve Bank of Australia left its cash rate at 4.10% against expectations for a 25-bps increase.

  • Major European indices trade in the red. STOXX Europe 600: -0.6%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.9%, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: -0.8%.

  • In economic data:

  • Eurozone's July Manufacturing PMI 42.7, as expected (last 43.4) and June Unemployment Rate 6.4% (expected 6.5%; last 6.4%)

  • Germany's July Manufacturing PMI 38.8, as expected (last 40.6). July Unemployment Change -4,000 (expected 20,000; last 30,000) and July Unemployment Rate 5.6% (expected 5.7%; last 5.7%)

  • U.K.'s July Manufacturing PMI 45.3 (expected 45.0; last 46.5). July Nationwide HPI -0.2% m/m, as expected (last 0.1%); -3.8% yr/yr, as expected (last -3.5%).

  • France's July Manufacturing PMI 45.1 (expected 44.5; last 46.0)

  • Italy's July Manufacturing PMI 44.5 (expected 44.2; last 43.8) and July Unemployment Rate 7.4% (expected 7.7%; last 7.5%)

  • Spain's July Manufacturing PMI 47.8 (expected 48.3; last 48.0)

  • In news:

  • House prices in the U.K. fell at their fastest yr/yr pace in nearly 14 years in July.

  • BMW missed margin expectations for Q2 but raised its outlook for the year.

  • BP saw a sharp drop in Q2 profit, but still raised its dividend by 10%. Final July Manufacturing PMI readings from Germany, France, U.K., Spain, and Italy remained in contractionary territory.

 

U.S. equity futures:

  • S&P 500 Futures: -12 @ 4,577

  • DJIA Futures: -26 @ 35,534

  • Nasdaq 100 Futures: -73 @ 15,684

Overseas:

  • Europe: DAX -0.9%, FTSE -0.2%, CAC -0.9%

  • Asia: Nikkei +0.8%, Hang Seng -0.3%, Shanghai Composite UNCH

Commodities:

  • Crude Oil -0.28 @ 81.52

  • Nat Gas -0.001 @ 2.633

  • Gold -17.45 @ 1991.75

  • Silver -0.379 @ 24.593

  • Copper -0.0335 @ 3.9745


 

Earnings/Guidance:

  • Addus HomeCare (ADUS) beats by $0.06, beats on revs

  • Allegro Microsystems (ALGM) beats by $0.02; guides SepQ EPS mostly above consensus, revs mostly above consensus

  • Altria (MO) beats by $0.01, reports revs in-line; reaffirms FY23 EPS guidance

  • Ameresco (AMRC) misses by $0.02, beats on revs; guides Q3 EPS below consensus, revs below consensus; reaffirms FY23 EPS guidance, revs guidance

  • Ametek (AME) beats by $0.06, reports revs in-line; guides Q3 EPS above consensus, revs in-line; raises FY23 EPS above consensus, revs in-line

  • Amkor (AMKR) beats by $0.05, misses on revs; guides Q3 EPS below two analyst estimate, revs in-line

  • Arconic (ARNC) beats by $0.08, misses on revs

  • Ares Management (ARES) beats by $0.05, AUM increased by 13%

  • Arista Networks (ANET) beats by $0.14, beats on revs; guides Q3 revs above consensus

  • Atlas Energy Solutions (AESI) beats by $0.01, beats on revs; increases dividend

  • Audiocodes (AUDC) beats by $0.06; revs in-line

  • AvalonBay (AVB) beats by $0.05; guides Q3 FFO in-line; raises FY23 FFO in-line

  • Avis Budget (CAR) beats by $1.56, misses on revs

  • Bank of N.T. Butterfield & Son (NTB) beats by $0.06; declares dividend

  • Benchmark Electronics (BHE) beats by $0.01, beats on revs; guides Q3 EPS, revs in-line

  • BioMarin Pharmaceutical (BMRN) beats by $0.07, reports revs in-line; guides FY23 EPS below consensus, reaffirms FY23 revs guidance

  • Bloomin' Brands (BLMN) beats by $0.10, reports revs in-line; guides Q3 EPS in-line

  • Boise Cascade (BCC) beats by $1.13, beats on revs

  • BP (BP) misses by $0.26; misses on revs; raises dividend; increases share repurchase program

  • Brixmor Property (BRX) beats by $0.02, beats on revs; guides FY23 FFO in-line

  • California Resources Corp (CRC) misses by $0.21, beats on revs; provides FY23 total production guidance of 85-91 MBoe/d3

  • Caterpillar (CAT) beats by $0.98, beats on revs

  • CNO Financial (CNO) misses by $0.04, beats on revs

  • Comstock (CRK) misses by $0.05, misses on revs as weak natural gas prices weighed

  • Commvault Systems (CVLT) beats by $0.08, reports revs in-line; guides SepQ revs in-line; reaffirms FY24 revs guidance

  • Crestwood Equity Partners (CEQP) beats by $0.78; misses on revs

  • Cushman & Wakefield (CWK) beats by $0.05, beats on revs

  • CVR Energy (CVI) beats by $0.51; misses on revs

  • Diageo plc (DEO) reports FY23 results; beats on revs; provides FY24 outlook

  • Diamondback Energy (FANG) misses by $0.20, beats on revs

  • Dorman Products (DORM) misses by $0.07, misses on revs; reaffirms FY23 EPS guidance, revs guidance

  • DoubleVerify (DV) misses by $0.06, reports revs in-line; guides Q3 revs in-line; reaffirms FY23 revs guidance; to acquire Scibids for $125 mln in cash and stock

  • Dril-Quip (DRQ) misses by $0.07, misses on revs; guides FY23 revs

  • DT Midstream (DTM) beats by $0.06; reaffirms FY23 EPS guidance

  • Eaton (ETN) beats by $0.10, beats on revs; guides Q3 EPS above consensus; raises FY23 EPS above consensus

  • Elme Communities (ELME) reports FFO in-line, revs in-line; reaffirms FY23 FFO guidance

  • Enterprise Products (EPD) misses by $0.01, misses on revs

  • Equitrans Midstream (ETRN) reports EPS in-line, beats on revs

  • ESAB Corp. (ESAB) beats by $0.16, beats on revs; raises FY23 guidance

  • Esperion Therapeutics (ESPR) beats by $0.15, beats on revs

  • Eversource Energy (ES) beats by $0.09, misses on revs; reaffirms FY23 EPS guidance

  • First Watch Restaurant Group (FWRG) reports Q2 results; raises FY23 guidance

  • Gartner (IT) beats by $0.34, beats on revs; raises FY23 EPS in-line, revs above consensus

  • Gentherm (THRM) beats by $0.09, reports revs in-line; reaffirms FY23 revs guidance

  • Global Payments (GPN) beats by $0.03, beats on revs; guides FY23 EPS in-line, revs above consensus

  • Golden Entertainment (GDEN) misses by $0.09, beats on revs; also announces $2.00/share special dividend and increases share buyback authorization to $100 mln

  • Graphic Packaging (GPK) misses by $0.07, misses on revs; reaffirms FY23 EPS guidance, revs guidance, also approves $500 mln increase to share repurchase authorization

  • Hamilton Lane (HLNE) misses by $0.05, beats on revs

  • Harmonic (HLIT) misses by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus

  • Harmony Biosciences (HRMY) beats by $0.15, misses on revs; authorizes $125 mln for repurchases

  • Heartland Financial (HTLF) misses by $0.03

  • Hologic (HOLX) beats by $0.04, beats on revs; guides Q4 EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

  • Howmet Aerospace (HWM) beats by $0.03, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY23 EPS in-line, revs above consensus

  • HSBC Holdings (HSBC) reports H1 results; provides FY23 outlook

  • Huntsman (HUN) misses by $0.08, misses on revs

  • IDEXX Labs (IDXX) beats by $0.23, reports revs in-line; raises FY23 EPS guidance in-line, revs in-line

  • Incyte (INCY) beats by $0.18, beats on revs

  • Instructure (INST) reports EPS in-line, beats on revs; guides Q3 revs in-line; raises FY23 revenue guidance

  • IQVIA (IQV) beats by $0.06, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus; increases buyback authorization by $2 bln

  • J&J Snack Foods (JJSF) beats by $0.39, misses on revs

  • JetBlue Airways (JBLU) beats by $0.01, reports revs in-line; guides Q3 EPS below consensus; guides FY23 EPS below consensus

  • Kennametal (KMT) misses by $0.08, misses on revs; guides Q1 EPS below consensus, revs below consensus; raises FY23 guidance

  • Kforce (KFRC) misses by $0.02, misses on revs; guides Q3 EPS below consensus, revs below consensus

  • Kilroy Realty (KRC) beats by $0.08, beats on revs; guides FY23 FFO in-line

  • Lattice Semi (LSCC) beats by $0.01, beats on revs; guides Q3 revs in-line

  • Lear (LEA) beats by $0.12, beats on revs; guides FY23 revs in-line

  • Leggett & Platt (LEG) misses by $0.01, misses on revs; lowers FY23 guidance; increases quarterly dividend $0.02 to $0.46/share

  • Leidos (LDOS) beats by $0.23, beats on revs; guides FY23 EPS in-line, raises rev guidance, still in-line

  • LGI Homes (LGIH) beats by $0.41, beats on revs

  • Li Auto (LI) reports July deliveries increased 227.5% yr/yr

  • Marathon Petroleum (MPC) beats by $0.77, beats on revs

  • Marriott (MAR) beats by $0.08, beats on revs; guides Q3 EPS in-line; raises FY23 EPS above consensus

  • Merck (MRK) beats by $0.12, beats on revs; guides FY23 EPS above consensus, raises revs in-line

  • Molson Coors Brewing (TAP) beats by $0.14, reports revs in-line, raises FY23 revenue growth, underlying income before income taxes, and free cash flow guidance

  • Monolithic Power (MPWR) beats by $0.02, reports revs in-line; guides Q3 revs in-line

  • MPLX LP (MPLX) beats by $0.02, reports revs in-line

  • MSA Safety (MSA) beats by $0.36, beats on revs

  • Neurocrine Biosciences (NBIX) beats by $0.44, beats on revs

  • NIO (NIO) announces that deliveries in July 2023 reached 20,462 vehicles

  • Nomura Holdings (NMR) reports Q1 results; revs in-line

  • Norwegian Cruise Line (NCLH) beats by $0.04, beats on revs; guides Q3 EPS below consensus; guides FY23 EPS in-line

  • ONE Gas (OGS) reports EPS in-line, revs in-line; reaffirms FY23 EPS guidance

  • Oshkosh (OSK) beats by $1.05, beats on revs; raises FY23 EPS above consensus, revs above consensus; declares dividend

  • Otter Tail Power (OTTR) beats by $0.50, beats on revs; raises FY23 EPS above consensus

  • Paramount Group (PGRE) beats by $0.01, misses on revs; guides FY23 FFO in-line

  • Pfizer (PFE) beats by $0.10, misses on revs; reaffirms FY23 EPS guidance; slightly lowered top end of FY23 rev guidance

  • PotlatchDeltic (PCH) misses by $0.21, beats on revs

  • Public Service (PEG) beats by $0.07, beats on revs; reaffirms FY23 EPS guidance

  • Rambus (RMBS) reports Q2 (Jun) results, misses on revs; provides Q3 guidance

  • Regal Rexnord (RRX) beats by $0.10, reports revs in-line; lowers FY23 EPS below consensus

  • Republic Services (RSG) beats by $0.09, reports revs in-line; guides FY23 EPS above consensus, revs below consensus

  • Revvity (RVTY) beats by $0.02, reports revs in-line; guides FY23 EPS below consensus, revs below consensus

  • Rhythm Pharmaceuticals (RYTM) misses by $0.02, beats on revs

  • Rockwell Automation (ROK) misses by $0.17, misses on revs; guides FY23 EPS in-line, revs in-line

  • Ryerson (RYI) misses dual est on EPS and revenue

  • Sanmina (SANM) beats by $0.02, misses on revs; guides Q4 EPS in-line, revs below two analyst estimate

  • SBA Comm (SBAC) beats by $0.09, reports revs in-line; raises FY23 FFO above consensus, raises revs in-line; declares dividend

  • SeaWorld Entertainment (SEAS) sees Q2 revs below consensus

  • Shutterstock (SSTK) beats by $0.05, misses on revs; guides FY23 EPS in-line, revs mostly above consensus

  • Sirius XM (SIRI) beats by $0.01, reports revs in-line; reaffirms FY23 revs guidance

  • Sonoco Products (SON) misses by $0.06, misses on revs; guides Q3 EPS below consensus; guides FY23 EPS below consensus

  • Stanley Black & Decker (SWK) beats by $0.25, beats on revs; guides FY23 EPS in-line

  • SunCoke Energy (SXC) beats by $0.24; Increased quarterly dividend to 10 cents per share; a 25% increase

  • Surgery Partners (SGRY) beats by $0.07; misses on revs; reaffirms FY23 revs guidance; raises FY23 Adj EBITDA outlook

  • Tenet Healthcare (THC) beats by $0.19, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY23 EPS in-line, revs above consensus

  • The Aaron's Company (AAN) beats by $0.21, misses on revs; reaffirms FY23 EPS guidance, guides FY23 revs in-line

  • TFI International (TFII) misses by $0.14, misses on revs; approved a $0.35 quarterly dividend, an increase of 30%

  • TG Therapeutics (TGTX) misses by $0.09, misses on revs

  • Toyota Motor (TM) reports Q1 results; beats on revs; sees FY24 revs below consensus

  • Transocean (RIG) misses by $0.09, reports revs in-line

  • Trex (TREX) beats by $0.17, beats on revs; guides Q3 revs above consensus; guides FY23 revs in-line

  • Trinity Industries (TRN) misses by $0.09, beats on revs; guides FY23 EPS below consensus

  • Triton International (TRTN) beats by $0.04, misses on revs

  • Two Harbors Investment (TWO) beats by $0.04

  • Uber (UBER) beats by $0.19, misses on revs

  • Varonis Systems (VRNS) misses by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus

  • Viper Energy Partners (VNOM) beats by $0.11, beats on revs; to convert to corporation

  • Watsco (WSO) misses by $0.47, misses on revs

  • WEC Energy Group (WEC) beats by $0.07, misses on revs; reaffirms FY23 EPS guidance

  • Welltower (WELL) beats by $0.04, beats on revs; raises FY23 FFO in-line; declares dividend

  • Western Digital (WDC) beats by $0.04, beats on revs; guides SepQ EPS below consensus, revs below consensus

  • Woodward (WWD) beats by $0.37, beats on revs; raises FY23 EPS, revs above consensus

  • XPeng (XPEV) reports July deliveries increased 28% yr/yr

  • Yum China (YUMC) beats by $0.01, misses on revs, same store sales increased 15%

  • Zebra Tech (ZBRA) beats by $0.02, misses on revs; guides Q3 revs below consensus; guides FY23 revs below consensus

  • Zimmer Biomet (ZBH) reports EPS in-line, beats on revs; raises FY23 EPS and revenue guidance

  • ZoomInfo (ZI) beats by $0.03, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs below consensus, also announces $500 mln share repurchase authorization

News:

  • President Biden and Donald Trump are tied at 43% in a hypothetical rematch in 2024, according to the New York Times

  • Macau Gaming Inspection and Coordination Bureau reported July gross revs +4082.9% yr/yr to HKD 16.7 bln versus -95.3% in July of 2022

  • Alphabet (GOOG) plans it will overhaul Google Assistant to use generative AI, according to Axios

  • Arvinas (ARVN) and Pfizer (PFE) awarded innovation passport designation by the U.K. innovative licensing and access pathway steering group for Vepdegestrant, an Investigational PROTAC ER degrader being developed in ER+/HER2- Breast Cancer

  • Becton Dickinson (BDX) announces U.S. FDA 510(k) clearance for the BD Respiratory Viral Panel for BD MAX System

  • Crawford (CRD.A) plans to restart its share repurchase program, extending program's termination date to Dec. 31, 2024; increases dividend

  • CVS (CVS) aiming to eliminate 5000 jobs, according to the Wall Street Journal

  • Emergent BioSolutions (EBS) awarded 10-Year BARDA contract valued at up to a maximum of $704 million for advanced development and procurement of Ebanga treatment for Ebola

  • Entrada Therapeutics (TRDA) Receives Authorization in the United Kingdom to Initiate Phase 1 Clinical Trial of ENTR-601-44 for the Potential Treatment of Duchenne Muscular Dystrophy

  • Eve Holding (EVEX) names Johann Bordais as CEO

  • Fluor (FLR) joint venture selected for I-35 NEX south project in San Antonio; co expects to recognize the ~$700 million contract in the second quarter of 202

  • Genworth Financial (GNW) expands share repurchase program by $350 mln; postpones Q2 earnings release until Aug 8

  • Harmony Biosciences (HRMY) announces $125 million share repurchase program

  • Honda Motor (HMC) completed procedures for the establishment of a joint venture with GS Yuasa International Ltd

  • HUYA Inc. (HUYA) announces management changes and provides strategic updates

  • Incyte ((LNVGY) is entering the PC gaming handheld market, said to sport Advanced Micro (AMD) processors, according to Windows Central

  • Intl Game Tech. PLC (IGT) beats by $0.05, beats on revs; guides Q3 revs below consensus; guides FY23 revs in-line

  • Kenon Holdings' (KEN) OPC Energy announces update in respect of bid in an Israel Land Authority Tender to design and build electricity generation facilities using photovoltaic technology

  • Lithium Americas (LAC) shareholders vote in favor of the separation of the company

  • Lockheed Martin (LMT) awarded $556 mln U.S. Army contract modification for Phased Array Tracking Radar; also awarded $502 mln U.S. Army contract modification to manufacture and deliver an Air-to-Ground Missile System

  • Meta (META) prepares to introduce new artificial intelligence chat bots, according toFinancial Times

  • Mueller Industries (MLI) announces special meeting to approve increase in authorized common stock from 100 mln to 250 mln shares

  • Northrop Grumman (NOC) awarded $388 mln U.S. Navy contract modification

  • Occidental (OXY) and ADNOC to Evaluate Carbon Management Projects in the United States and United Arab Emirates to Accelerate Net Zero Goals

  • Organon (OGN): Samsung Bioepis & Organon announce topline results from interchangeability study of SB5 Humira biosimilar

  • Palantir Technologies (PLTR) selected by the Defense Information Systems Agency to support coordination between federal and commercial licensees of the 3450 - 3550MHz spectrum band

  • QuantumScape Corporation (QS) appoints Dr. Siva Sivaram as President of the company

  • RedHill Biopharma (RDHL) announces Talicia approved in the United Arab Emirates and first commercial order outside the U.S.

  • Runway Growth Finance (RWAY) CEO David Spreng to take temporary leave of absence to undergo treatment for a medical condition; CFO and COO Thomas Raterman appointed acting President

  • Samsung (SSNLF) aiming to expand memory production cutbacks in the second half of this year, according to Digitimes

  • Synaptics (SYNA) adds new products and technologies to its wireless license agreement with Broadcom (AVGO)

  • Teleflex (TFX) announces the U.S FDA has cleared the QuikClot Control+ Hemostatic Device to include mild and moderate bleeding in cardiac surgical procedures and bone surface bleeding following a sternotomy

  • Telefonica S.A. (TEF) Audiovisual Digital unit was awarded the exclusive broadcasting rights for Spain of the UEFA Champions League and UEFA Europa League

  • TG Therapeutics (TGTX) and Neuraxpharm Announce Ex-US Commercialization Agreement for BRIUMVI

  • Trupanion (TRUP) announces that it now has partnerships with more than 60 multilocation veterinary hospital groups in North America

  • UPS (UPS): Local unions endorse agreement with UPS, according to Reuters

M&A:

  • DoubleVerify (DV) acquires Scibids Technology SAS in a cash and stock transaction valued at $125 million

  • Dynatrace (DT) announced it has signed a definitive agreement to acquire Rookout

  • EQRx (EQRX): Revolution Medicines (RVMD) to acquire EQRX in all-stock deal

  • Mativ Holdings (MATV) received an offer from Evergreen Hill Enterprise, Pte. Ltd., to acquire Mativ's Engineered Papers business for $620 mln

  • Monster Beverage (MNST) completes acquisition of Vital Pharmaceuticals (Bang Energy) assets for $362 mln

  • ProQR Therapeutics (PRQR) and Laboratoires Tha announce agreement for Tha to acquire ProQR's Sepofarsen and Ultevursen Ophthalmic assets

Syndicate:

  • Empire State Realty Trust (ESRT) files mixed shelf securities offering

  • Tarsus Pharmaceuticals (TARS) announces proposed $100 million underwritten public offering of shares of its common stock

IPOs:

  • Expected to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • ANET +14.4%, WWD +14.2%, AESI +11.4%, EBS +9.7%, ESPR +7.6%, TREX +5.2%, SBAC+4.1%, LDOS +4.1%, INCY +3.6%, ARES +3%, AUDC +2.9%, ESAB +2.9%, VRNS +2.6%, LI+2%, KRC +2%, GDEN +2%, TWO +2%, BHE+2%, TM +2%, CVI +2%, IT +1.8%, CAR+1.7%, KMT +1.7%, KEN +1.6%, SYNA +1.2%, RWAY +1.2%, BP +1.2%, VNOM +1%, WELL+1%, THRM +1%, DT +0.9%

  • Gapping down:

  • ZI -18%, HLIT -10.2%, AAN -9.6%, RYI-8.7%, KFRC -8.6%, VTS -8.3%, RMBS -8%, DV -7.5%, CRK -7.5%, MPWR -7.1%, PGRE-6.5%, TARS -6%, HUN -5.9%, SANM -3.4%, QS -3.1%, BMRN -2.8%, CRC -2.7%, AMRC-2.5%, WDC -2.4%, FANG -2.1%, ESRT -2%, LEG -1.7%, YUMC -1.7%, CEQP -1.6%, BSM-1.6%, INST -1.5%, BCC -1.2%, LSCC -1.1%, PCH -1%, NTB -1%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • American Eagle (AEO) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $18

  • Bath & Body Works (BBWI) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $45

  • Gap (GPS) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $13

  • Goldman Sachs (GS) upgraded to Neutral from Underweight at Atlantic Equities; tgt raised to $351

  • ResMed (RMD) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $284

  • Tapestry (TPR) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $59

  • Downgrades:

  • Apellis Pharmaceuticals (APLS) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $40

  • Brown & Brown (BRO) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt raised to $76

  • Dingdong Ltd (DDL) downgraded to Hold from Buy at Daiwa Securities; tgt lowered to $2.80

  • Eastman Chemical (EMN) downgraded to Neutral from Overweight at Piper Sandler; tgt $96

  • Estee Lauder (EL) downgraded to Neutral from Buy at Citigroup; tgt lowered to $195

  • MaxLinear (MXL) downgraded to Hold from Buy at Loop Capital; tgt lowered to $25

  • POSCO (PKX) downgraded to Underweight from Equal-Weight at Morgan Stanley

  • Rivian Automotive (RIVN) downgraded to Neutral from Overweight at Cantor Fitzgerald; tgt raised to $29

  • SilverCrest Metals (SILV) downgraded to Hold from Buy at Stifel

  • SoFi Technologies (SOFI) downgraded to Underperform from Mkt Perform at Keefe Bruyette; tgt raised to $7

  • Symbotic (SYM) downgraded to Mkt Perform from Outperform at William Blair

  • Symbotic (SYM) downgraded to Neutral from Buy at DA Davidson; tgt raised to $50

  • TechnipFMC (FTI) downgraded to Hold from Buy at Kepler; tgt $19.50

  • Valley National (VLY) downgraded to Market Perform from Outperform at Hovde Group; tgt $11

  • ZoomInfo (ZI) downgraded to Hold from Buy at Deutsche Bank; tgt $20

  • Others:

  • Fresenius Medical (FMS) resumed with a Neutral at Citigroup

  • Fresenius SE (FSNUY) resumed with a Buy at Citigroup

  • Health Catalyst (HCAT) initiated with an Overweight at Cantor Fitzgerald; tgt $16

  • Installed Building Products (IBP) initiated with a Buy at Seaport Research Partners; tgt $170

  • TopBuild (BLD) initiated with a Buy at Seaport Research Partners; tgt $315

  • Vivid Seats (SEAT) initiated with an Equal-Weight at Morgan Stanley; tgt $9.50

Econ Data:

  • 09:45 ET: S&P Global US Manufacturing PMI - Final for July (Briefing.comConsensus NA; Prior 46.3)

  • 10:00 ET: ISM Manufacturing Index for July (Briefing.comConsensus 46.8%; Prior 46.0%)

  • 10:00 ET: Construction Spending for June (Briefing.comConsensus 0.6%; Prior 0.9%)

  • 10:00 ET: JOLTS - Job Openings for June (Briefing.comConsensus NA; Prior 9.824M)

 Earnings:

  • Monday (Jul 31)

  • Morning:  AER APLS CAMT CAN CBU IMGN ON SOFI

  • Afternoon: ADUS AMRC AMKR ANET AVB CAR NTB BHE BMRN BCC BRX CRC CNO CRK CWK FANG DV DRQ ELME ES HLIT HTLF HOLX HUN INST JJSF KFRC KRC LSCC LEG MPWR MSA OGS OTTR PGRE PCH RMBS RRX RSG SANM SBAC SON THC AAN RIG TREX VRNS VNOM VNO WELL WDC WWD YUMC ZI

  • Tuesday (Aug 1)

  • Morning: ALGM MO AME ARES BLMN BP CAT CVLT DORM DTM ETN ECL EPD ETRN ESAB ESPR IT THRM GPN GPK HLNE HRMY HWM IDXX ITW INCY NSP IGT IPGP IQV JBLU KMT LEA LDOS LGIH MPC MAR MRK TAP MPLX NBIX NCLH PFE PEG RVTY RYTM ROK SSTK SIRI SWK SPWR SYY TRN TRTN UBER WSO WEC ZBRA ZBH

  • Afternoon:  AMD AFL ALIT ALL AIG ANDE APAM AZPN AIZ AXTA AXS BLKB BXP BFAM CZR CWH CDLX CCCS CHK COLM CACC DENN DVN DEI ELF EA EHC EXAS EXEL FE FLS FCPT FRSH ULCC HMN HPP INSP JBT KAI LMAT LFUS LUMN MGY MTCH MATX MLNK MSTR MOS NVRO NMIH NUS OI OLO OMCL PAYC PEN PECO PINS PXD PRU KWR ROVR SAFE SCI SHLS SILK SKY SEDG SFM SBUX STE TEX TX UIS UNM VFC VREX VRTX VMEO SPCE VOYA WTI

  • Wednesday (Aug 2)

  • Morning:  ADNT ATI ALGT ABC ASTE AVDX AVA BGNE BRY BPMC BWA BLDR BG CCJ CG CDW CERE CHEF CLH YOU CIGI CMCO CNDT ROAD CRTO CVS DISH DFIN DRVN DD DT EDIT EMR ETR NVRI EXC EXTR RACE FIS FTS FDP FTDR GRMN GNRC ROCK GFF HAYW HUM IBP ICPT IMXI JHG JCI KHC LPX LXP MTRN MIR NI NNN DNOW PCRX PSN PERI PSX PUMP RCM RDWR RGEN RITM RXO SPNS STNG SMG SITE SR SPR SHOO SUN TEVA COCO TRI TT TGI TTMI TPB UTHR VCEL VRSK VRT WAT WING WWE XHR XYL YUM

  • Afternoon: ACAD ADPT ALB ALKT ALLO ATUS DOX AEE AFG AMWL ANSS APA AMK ATO ACLS BTG BAND BKH BOOT CHRW CPE CDAY CF CAKE CHRD CIVI CWAN CLX CTSH CYH CODI CFLT CORT CCRN CW DASH DXC ESTE ECPG ERII ET NVST EPR EQIX EQH ETD ETSY EVGO EVH EOLS FICO FARO FSLY FRT FMC FORM FWRD GKOS GT GXO THG HLF HI HST HUBS NARI INFA IR NGVT IIPR FROG KW KGC KN LMND LESL LNC MRO VAC MMS MCK MELI MET MTG MGM MKSI MOD MUSA NFG NCR NRDS NE NOG NTR NUVA OXY OHI KAR ORA PACB PLMR PK PYPL PCOR PSA LUNG QTWO QRVO QCOM RDN RYN RMAX O RGNX RELY RVLV HOOD RPT RSI SRPT SDGR SIGI SHOP SPG SBGI SITM SM SPXC STAA SRI RGR SUM RUN COOK TRIP UFPI UGI U UPWK HCC WCN WTS WMB WSC ZETA ZG

  • Thursday (Aug 3)

  • Morning: ACIW GOLF WMS AGIO APD ALNY BUD APG APO APTV ARW AUPH BALL BALY BHC BCE BDX BDC BCRX BKI BV BIP BRKR GOOS CARS LNG CQP CIM IMOS CLVT CGNX COHU COMM COP CEG CMI DLX XRAY DGII DIN DNB ECVT EPC ESMT ENOV ENTG EPAM EXPE FVRR FOCS GEL GIL HAS DINO HGV HEP HII H IDA NSIT INSM NTLA ICE IDCC IRM ITRI ITT JLL KRTX K KTB KOP KYMR LAMR LNTH MTSI MMP MDU MFA MGPI MIDD MRNA MUR NJR NWN NVMI OCSL PZZA PH PBF MD PGTI DOC PNW PBI PLNT PTLO PBH PRVA PWR PACK REGN SABR SBH SNDR SRE SHAK FOUR SWI SHC SO SAVE STWD TNK TGNA TFX TPX CI THRY TKR BLD TRMB UNIT UPBD VC VNT VMC WD WBD W WCC WLK WRK WIX

  • Thursday (Aug 3)

  • Afternoon:  TXG AAON ABCL AEIS AES AL ATSG ABNB LNT ALTR AMZN COLD AMGN AMN APPN AAPL ACA TEAM BGS BIGC BIO SQ BE BKNG BWXT CABO CPT CARG CHUY CRUS CLFD NET CDXS COIN COLL ED CRSR CTVA CUBE CYTK DVA DH DEN DM DRH DOCN DLB DKNG DBX LOCO ENV EOG EXPI EXR FIGS FND FTNT FOXF FNKO GEN GILD GMED GDDY GPRO LOPE GDOT GDYN GH HTGC ICFI IAS IRTC KTOS LTHM MTZ MERC MCHP MCW MODV MNST MSI MP MWA MYGN NSTG NTRA LASR OTEX OPEN OPK OSUR OUT PCTY PBA PRDO PLYA POST POWI PGNY PRTA PTCT QLYS RBA RRR RDFN REG RGA REZI RMD RLJ RKT RYAN RHP SEM TSLX SWN SPT STEM STEP SYK SNCY SYNA TNDM SKT TMST TMDX TVTX TRUP TTEC UDMY RARE OLED VTR VIR WERN WK WW XNCR XPOF YELP ZD

  • Friday (Aug 4) 

  • Morning:  AMCX AXL BEP CBOE CNK CRBG DBRG D ENB ESNT EVRG FSR FLR FYBR FLGT GTES GNK EAF GTN GPRE TILE LYB MGA OMI PAA PNM PPL PRLB RBC SSP SHO TU TIXT TNC TAC TWST XPO

 

Asia & Europe detail:

Asia: Nikkei +0.8%, Hang Seng -0.3%, Shanghai Composite UNCH

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Property names in Hong Kong gave back some of their stimulus-driven gains from last week. China's Caixin Manufacturing PMI returned into contractionary territory after expanding slightly for the past two months. China's National Development and Reform Commission noted that the recovery in some consumption categories has been tentative and consumer confidence has been lacking. Japan's Ministry of Labor is reportedly seeking a record increase to the minimum hourly pay. The Reserve Bank of Australia left its cash rate at 4.10% against expectations for a 25-bps increase.

  • In economic data:

  • Japan's July Manufacturing PMI 49.6 (expected 49.4; last 49.8). June jobs/applications ratio 1.30 (expected 1.32; last 1.31) and June Unemployment Rate 2.5%, as expected (last 2.6%)

  • China's July Caixin Manufacturing PMI 49.2 (expected 50.3; last 50.5)

  • South Korea's July Manufacturing PMI 49.4 (expected 48.1; last 47.8). July trade surplus $1.63 bln (expected surplus of $3.03 bln; last surplus of $1.13 bln). July Imports -25.4% yr/yr (expected -24.6%; last -11.7%) and Exports -16.5% yr/yr (expected -14.5%; last -6.0%)

  • India's July Manufacturing PMI 57.7 (expected 57.0; last 57.8)

  • Hong Kong's June Retail Sales 19.6% yr/yr (expected 26.7%; last 18.4%)

  • Australia's June Building Approvals -7.7% m/m (expected -7.0%; last 20.5%). June Home Loans -2.8% m/m (expected 1.7%; last 5.1%) and Private House Approvals -1.3% m/m (last 0.9%). July Commodity Prices -23.5% yr/yr (expected -19.0%; last -21.5%) and July Manufacturing PMI 49.6 (expected 49.4; last 49.8)

  • New Zealand's June Building Consents 3.5% m/m (expected 0.3%; last -2.3%)

---Equity Markets---

  • Japan's Nikkei: +0.8%

  • Hong Kong's Hang Seng: -0.3%

  • China's Shanghai Composite: UNCH

  • India's Sensex: -0.1%

  • South Korea's Kospi: +1.3%

  • Australia's ASX All Ordinaries: +0.5%

---FX---

  • USD/JPY: +0.3% to 142.72

  • USD/CNH: +0.4% to 7.1722

  • USD/INR: UNCH at 82.20

 

Europe: DAX -0.9%, FTSE -0.2%, CAC -0.9%

Major European indices trade in the red. House prices in the U.K. fell at their fastest yr/yr pace in nearly 14 years in July. BMW missed margin expectations for Q2 but raised its outlook for the year. BP saw a sharp drop in Q2 profit, but still raised its dividend by 10%. Final July Manufacturing PMI readings from Germany, France, U.K., Spain, and Italy remained in contractionary territory.

  • In economic data:

  • Eurozone's July Manufacturing PMI 42.7, as expected (last 43.4) and June Unemployment Rate 6.4% (expected 6.5%; last 6.4%)

  • Germany's July Manufacturing PMI 38.8, as expected (last 40.6). July Unemployment Change -4,000 (expected 20,000; last 30,000) and July Unemployment Rate 5.6% (expected 5.7%; last 5.7%)

  • U.K.'s July Manufacturing PMI 45.3 (expected 45.0; last 46.5). July Nationwide HPI -0.2% m/m, as expected (last 0.1%); -3.8% yr/yr, as expected (last -3.5%).

  • France's July Manufacturing PMI 45.1 (expected 44.5; last 46.0)

  • Italy's July Manufacturing PMI 44.5 (expected 44.2; last 43.8) and July Unemployment Rate 7.4% (expected 7.7%; last 7.5%)

  • Spain's July Manufacturing PMI 47.8 (expected 48.3; last 48.0)

---Equity Markets---

  • STOXX Europe 600: -0.6%

  • Germany's DAX: -0.9% 

  • U.K.'s FTSE 100: -0.2%

  • France's CAC 40: -0.9%

  • Italy's FTSE MIB: -0.9%

  • Spain's IBEX 35: -0.8%

---FX---

  • EUR/USD: -0.2% to 1.0979

  • GBP/USD: -0.3% to 1.2799

  • USD/CHF: +0.4% to 0.8753

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