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02/08/23 Briefing


The S&P 500 futures are down 21 points and are trading 0.5% below fair value. The Nasdaq 100 futures are down 109 points and are trading 0.6% below fair value. The Dow Jones Industrial Average futures are down 102 points and are trading 0.3% below fair value.

Stock futures point to losses at the open as earnings season rolls on. Negative reactions to results and/or guidance from the likes of Starbucks (SBUX), Pinterest (PINS), and SolarEdge Technologies (SEDG) have acted as a drag on the broader market, along with ongoing consolidation efforts.

Fitch downgraded the United States credit rating to "AA+" from "AAA", citing an expected fiscal deterioration over the next three years, growing government debt, and erosion of governance standards related to peers.

Notably, Treasuries have remained resilient and yields have moved lower despite the downgrade. The 2-yr note yield is down four basis points to 4.88% and the 10-yr note yield is down two basis points to 4.02%.

In corporate news:

  • Starbucks (SBUX 99.74, -1.52, -1.5%): beats by $0.05, misses on revs; Global comparable store sales increased 10%; China stores opened in FY19 or earlier achieved full sales recovery; narrows its FY23 EPS outlook, reaffirms FY23 revenue and same-store sales forecasts

  • Advanced Micro (AMD 120.69, +3.09, +2.5%): beats by $0.01, reports revs in-line; guides Q3 revs in-line; upgraded to Buy from Neutral at Citigroup

  • Electronic Arts (EA 130.90, -5.22, -3.8%): beats by $0.48, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; raises FY24 EPS guidance; reaffirms FY24 rev guidance

  • e.l.f. Beauty (ELF 136.51, +20.01, +17.2%): beats by $0.53, beats on revs; guides FY24 EPS above consensus, revs above consensus

  • Match Group (MTCH 51.20, +5.05, +10.9%): beats by $0.04, beats on revs; guides Q3 revs above consensus

  • Paycom Software (PAYC 340.50, -30.28, -8.2%): beats by $0.02, reports revs in-line; guides Q3 revs mostly below consensus; guides FY23 revs above consensus

  • Pinterest (PINS 28.14, -0.82, -2.8%): beats by $0.09, beats on revs, guides for Q3 revenue growth in high single digit range, which is roughly inline with consensus estimate; Seeing momentum continue, but ad market remains choppy with pockets of strength and weakness

  • SolarEdge Technologies (SEDG 209.40, -30.07, -12.6%): beats by $0.09, reports revs in-line; guides Q3 revs below consensus

  • AmerisourceBergen (ABC 189.20, +0.10, +0.1%): beats by $0.10, beats on revs; raises FY23 EPS mostly above consensus, revs above consensus; declares dividend; name change and new stock symbol

  • Humana (HUM 475.23, +17.12, +3.7%): beats by $0.18, beats on revs; affirms FY23 EPS in-line

  • CVS Health (CVS 75.40, +1.45, +2.0%): beats by $0.09, beats on revs; reaffirms FY23 EPS guidance

  • DuPont (DD 76.49, -0.55, -0.7%): beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs above consensus

  • Kraft Heinz (KHC 35.70, -0.18, -0.5%): beats by $0.03, misses on revs; reaffirms FY23 EPS and organic revenue growth guidance

  • Yum! Brands (YUM 133.49, -2.87, -2.1%): beats by $0.17, worldwide system sales grew 13% (excluding FX)

  • Generac (GNRC 135.75, -17.63, -11.5%): misses by $0.08, beats on revs; guides FY23 revs below consensus, lowers net income margin guidance

  • Johnson Controls (JCI 66.49, -3.54, -5.1%): reports EPS in-line, revs in-line; guides Q4 EPS below consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: -2.3%, Hong Kong's Hang Seng: -2.5%, China's Shanghai Composite: -0.9%, India's Sensex: -1.0%, South Korea's Kospi: -1.9%, Australia's ASX All Ordinaries: -1.2%.

    • In economic data:

      • Japan's July Monetary Base -1.3% yr/yr (expected -0.9%; last -1.0%)

      • South Korea's July CPI 0.1% m/m (expected 0.2%; last 0.0%); 2.3% yr/yr (expected 2.4%; last 2.7%)

      • Australia's July AIG Construction Index -9.2 (last 10.6) and AIG Manufacturing Index -25.6 (last -19.8)

      • New Zealand's Q2 Employment Change 1.0% qtr/qtr (expected 0.5%; last 0.8%), Q2 Unemployment Rate 3.6% (expected 3.5%; last 3.4%), and Q2 Participation Rate 72.4% (expected 72.0%; last 72.0%). Q2 Labor Cost Index 1.1% qtr/qtr (expected 1.2%; last 0.9%); 4.3% yr/yr (expected 4.4%; last 4.5%)


  • In news:

    • Overall investor sentiment was under pressure after Fitch downgraded the rating of the U.S. to AA+ from AAA, due to repeated political disagreements about the debt ceiling and the failure to address entitlement spending.

    • Insurance stocks in Japan retreated amid reports that major firms colluded when offering premiums for large corporate customers, including oil refiners.

    • South Korea's July CPI increased at its slowest yr/yr pace in more than two years, but the Bank of Korea expects that the inflation rate will reaccelerate in August.



  • Major European indices trade in the red as sentiment weakens after Fitch downgraded the sovereign rating of the U.S. to AA+ from AAA. STOXX Europe 600: -0.8%, Germany's DAX: -0.8%, U.K.'s FTSE 100: -1.0%, France's CAC 40: -0.6%, Italy's FTSE MIB: -0.8%, Spain's IBEX 35: -1.2%

    • In economic data:

      • Spain's July Unemployment Change -11,000 (expected -38,200; last -50,300)

      • Swiss Q3 SECO Consumer Climate -8 (last -13) and July procure.ch PMI 38.5 (expected 44.0; last 44.9)


  • In news

    • British homebuilder Taylor Wimpey raised its home completion guidance for the year.

    • The Italian government plans to announce fiscal reforms, including tax cuts and a flat tax before elections in 2027.

    • Fully loaded cargo ships are once again able to pass through the shallow points of Germany's Rhine after recent rains.

    • The Bank of England is expected to raise its bank rate by 25 bps to 5.25% tomorrow.



U.S. equity futures:

  • S&P 500 Futures: -23 @ 4,554

  • DJIA Futures: -112 @ 35,519

  • Nasdaq 100 Futures: -112 @ 15,606

Overseas:

  • Europe: DAX -0.8%, FTSE -1.0%, CAC -0.6%

  • Asia: Nikkei -2.3%, Hang Seng -2.5%, Shanghai Composite -0.9%

Commodities:

  • Crude Oil +0.50 @ 81.87

  • Nat Gas -0.034 @ 2.526

  • Gold +8.80 @ 1987.60

  • Silver +0.226 @ 24.552

  • Copper -0.0327 @ 3.8758


Earnings/Guidance:

  • Adient ( ADNT ) beats by $0.51, beats on revs; raises FY23 revenue and adj. EBITDA guidance

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

  • Agree Realty ( ADC ) reports FFO in-line, beats on revs

  • Alight ( ALIT ) beats by $0.02, reports revs in-line; guides FY23 EPS in-line, revs in-line

  • Allstate ( ALL ) misses by $0.25

  • American Intl ( AIG ) beats by $0.16

  • AmerisourceBergen ( ABC ) beats by $0.10, beats on revs; raises FY23 EPS mostly above consensus, revs above consensus; declares dividend; name change and new stock symbol

  • Andersons ( ANDE ) beats by $0.43, misses on revs

  • Artisan Partners Asset Mgmt ( APAM ) misses by $0.02, misses on revs

  • Ashford Hospitality Trust ( AHT ) beats by $0.25; beats on revs

  • Aspen Tech ( AZPN ) misses by $0.04, misses on revs; guides FY24 EPS above consensus, revs below consensus; terminates Micromine purchase; Board authorizes new share repurchase program up to $300 mln

  • AvidXchange (AVDX) misses by $0.05, beats on revs; raises FY23 revs in-line

  • Avista ( AVA ) beats by $0.08; reaffirms FY23 EPS guidance

  • Axalta Coating Systems ( AXTA ) misses by $0.03, misses on revs; guides Q3 EPS below consensus; guides FY23 EPS below consensus

  • AXIS Capital ( AXS ) beats by $0.26, beats on revs

  • Bausch + Lomb ( BLCO ) beats by $0.03, beats on revs; guides FY23 revs above consensus

  • BeiGene ( BGNE ) misses by $0.17, beats on revs

  • Berry Petroleum ( BRY ) beats by $0.16, beats on revs

  • Blackbaud ( BLKB ) beats by $0.05, misses on revs; reaffirms FY23 EPS guidance, revs guidance

  • BlueLinx ( BXC ) misses by $0.31, misses on revs

  • Blueprint Medicines ( BPMC ) beats by $0.35, beats on revs

  • BorgWarner ( BWA ) beats by $0.30, beats on revs; issues FY23 guidance

  • Boston Properties ( BXP ) beats by $0.07, beats on revs; guides Q3 FFO above consensus; guides FY23 FFO above consensus

  • Bright Horizons ( BFAM ) beats by $0.04, beats on revs; guides FY23 EPS below consensus, revs mostly above consensus

  • Builders FirstSource ( BLDR ) beats by $1.33, beats on revs; guides FY23 revs above consensus

  • Bunge ( BG ) beats by $1.03, misses on revs; raises FY23 EPS above consensus

  • Caesars Entertainment ( CZR ) reports Q2 (Jun) results, revs in-line

  • Cambium Networks ( CMBM ) reports Q2 (Jun) results, misses on revs; guides Q3 EPS, revs below consensus; guides FY23 EPS, revs below consensus

  • Cameco ( CCJ ) beats by $0.05, beats on revs

  • Camping World ( CWH ) misses by $0.05, misses on revs

  • Cardlytics ( CDLX ) beats by $0.49, beats on revs; guides Q3 revs in-line

  • Carlyle Group ( CG ) beats by $0.50, beats on revs

  • CCC Intelligent Solutions ( CCCS ) reports EPS in-line, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus

  • CDW ( CDW ) beats by $0.23, beats on revs

  • Chefs' Warehouse ( CHEF ) misses by $0.12, beats on revs; guides FY23 revs in-line

  • Chesapeake Energy ( CHK ) beats by $0.24

  • Clean Harbors ( CLH ) beats by $0.04, misses on revs; reaffirms FY23 adjusted EBITDA guidance

  • Clear Secure ( YOU ) beats by $0.08, beats on revs; guides Q3 revs above consensus

  • Colliers ( CIGI ) misses by $0.06, reports revs in-line; guides FY23 EPS in-line, revs in-line

  • Columbia Sportswear ( COLM ) beats by $0.13, beats on revs; guides Q3 EPS below consensus, revs in-line; lowers FY23 guidance

  • Columbus McKinnon ( CMCO ) reports EPS in-line, revs in-line; guides Q2 revs in-line; guides FY24 revs in-line

  • Construction Partners ( ROAD ) beats by $0.07, misses on revs; guides FY23 revs in-line

  • Criteo ( CRTO ) beats by $0.06, beats on revs

  • CVS Health ( CVS ) beats by $0.09, beats on revs; reaffirms FY23 EPS guidance

  • Denny's ( DENN ) misses by $0.02, misses on revs

  • Devon Energy ( DVN ) reports EPS in-line, beats on revs

  • Donnelley Financial ( DFIN ) beats by $0.32, beats on revs

  • Dorian LPG ( LPG ) misses by $0.50, misses on revs

  • Douglas Emmett ( DEI ) beats by $0.01, reports revs in-line; guides FY23 FFO below consensus

  • Driven Brands ( DRVN ) misses by $0.02, beats on revs; lowers FY23 EPS below consensus, revs below consensus

  • DuPont ( DD ) beats by $0.02, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs above consensus

  • Dynatrace ( DT ) beats by $0.05, beats on revs; guides Q2 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus

  • Editas Medicine ( EDIT ) reports Q2 results; provides clinical update; names new CFO and CSO

  • Electronic Arts ( EA ) beats by $0.48, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; raises FY24 EPS guidance; reaffirms FY24 rev guidance

  • e.l.f. Beauty ( ELF ) beats by $0.53, beats on revs; guides FY24 EPS above consensus, revs above consensus

  • Emerson ( EMR ) misses by $0.18, misses on revs; raises FY23 EPS above consensus

  • Enact Holdings ( ACT ) beats by $0.26, beats on revs; approves $100 mln for repurchases

  • Encompass Health ( EHC ) beats by $0.20, beats on revs; raises FY23 EPS above consensus, revs above consensus

  • EnLink Midstream ( ENLC ) beats by $0.01, reports 41.2% drop in revs yr/yr

  • Entergy ( ETR ) beats by $0.16; reaffirms FY23 EPS guidance

  • Enviri Corporation ( NVRI ) beats by $0.03, beats on revs; guides Q3 EPS below consensus; guides FY23 EPS above consensus

  • Exact Sciences ( EXAS ) beats by $0.02, beats on revs; raises FY23 revs above consensus

  • Exelixis ( EXEL ) beats by $0.14, beats on revs; reaffirms FY23 revs guidance

  • Exelon ( EXC ) reports EPS in-line, beats on revs; reaffirms FY23 EPS in-line

  • Extreme Networks ( EXTR ) beats by $0.02, beats on revs; guides SepQ EPS in-line, revs above consensus

  • Ferrari ( RACE ) beats by EUR0.11, reports revs in-line; raises FY23 EPS guidance in-line

  • Fidelity Nat'l Info ( FIS ) beats by $0.07, reports revs in-line; guides Q3 revs above consensus; guides FY23 revs in-line

  • FirstEnergy ( FE ) beats by $0.02; guides Q3 EPS below consensus; reaffirmed FY23 EPS in-line

  • Flowserve ( FLS ) beats by $0.12, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Four Corners Property Trust ( FCPT ) beats by $0.02, reports revs in-line

  • Fresenius Medical ( FMS ) narrows guidance range due to strong operational performance in the first half of 2023

  • Fresh Del Monte ( FDP ) beats by $0.40, misses on revs

  • Freshworks ( FRSH ) beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY23 EPS above consensus, revs above consensus

  • Frontier Group Holdings ( ULCC ) beats by $0.03, reports revs in-line

  • Garmin ( GRMN ) beats by $0.02, beats on revs; guides FY23 EPS below consensus, revs below consensus

  • Generac ( GNRC ) misses by $0.08, beats on revs; guides FY23 revs below consensus, lowers net income margin guidance

  • Gibraltar Industries ( ROCK ) beats by $0.26, beats on revs; guides FY23 EPS above consensus, revs in-line

  • Haleon plc ( HLN ) reports H1 results; updates guidance

  • Hayward Holdings ( HAYW ) beats by $0.03, beats on revs; guides FY23 revs in-line

  • Horace Mann ( HMN ) beats by $0.08, beats on revs; reaffirms FY23 EPS guidance

  • Hudson Pacific Properties ( HPP ) misses by $0.02, beats on revs

  • Humana ( HUM ) beats by $0.18, beats on revs; affirms FY23 EPS in-line

  • Inspire Medical Systems ( INSP ) beats by $0.16, beats on revs; guides FY23 revs above consensus

  • Installed Building Products ( IBP ) beats by $0.34, beats on revs

  • Intercept Pharma ( ICPT ) beats by $0.37, beats on revs

  • International Money Express ( IMXI ) misses by $0.02, misses on revs; guides Q3 EPS below consensus, revs in-line; guides FY23 EPS below consensus, revs below consensus

  • Janus Henderson Group ( JHG ) beats by $0.05, reports revs in-line

  • JBT Corp ( JBT ) beats by $0.05, misses on revs; provides Q3, FY23 guidance ex-AeroTech

  • Johnson Controls ( JCI ) reports EPS in-line, revs in-line; guides Q4 EPS below consensus

  • Kadant ( KAI ) beats by $0.40, beats on revs; raises FY23 guidance

  • Kraft Heinz ( KHC ) beats by $0.03, misses on revs; reaffirms FY23 EPS and organic revenue growth guidance

  • Lemaitre Vascular ( LMAT ) beats by $0.04, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides Q4 (Dec) EPS in-line, revs above consensus; guides FY23 EPS above consensus, revs above consensus

  • Littelfuse ( LFUS ) misses by $0.23, misses on revs; guides Q3 EPS below consensus, revs below consensus

  • Louisiana-Pacific ( LPX ) misses by $0.12, misses on revs

  • Lumen Technologies ( LUMN ) beats by $0.02, reports revs in-line

  • LXP Industrial Trust ( LXP ) beats by $0.01, beats on revs; guides FY23 FFO in-line

  • Magnolia Oil & Gas ( MGY ) beats by $0.06, misses on revs

  • Match Group ( MTCH ) beats by $0.04, beats on revs; guides Q3 revs above consensus

  • Materion ( MTRN ) misses by $0.09, misses on revs; reaffirms FY23 EPS guidance

  • Matson ( MATX ) beats by $0.34, beats on revs (two ests); expects Q3 operating income to be higher sequentially

  • MeridianLink ( MLNK ) misses by $0.11, misses on revs; guides Q3 revs below consensus; guides FY23 revs below consensus

  • MicroStrategy ( MSTR ) reports Q2 (Jun) results, misses on revs

  • MiMedx Group ( MDXG ) beats by $0.02, beats on revs; expects FY23 sales to grow in the mid to high teens percentage

  • Mosaic ( MOS ) misses by $0.05, beats on revs

  • Nevro ( NVRO ) reports EPS in-line, revs in-line; guides Q3 revs below consensus; guides FY23 revs below consensus

  • NiSource ( NI ) reports EPS in-line; guides FY23 EPS in-line

  • NMI Hldgs ( NMIH ) beats by $0.10, beats on revs; Board authorizes additional $200 mln share repurchase plan

  • Nu Skin ( NUS ) beats by $0.01, misses on revs; guides Q3 EPS, revs in-line; guides FY23 EPS, revs in-line

  • O-I Glass ( OI ) beats by $0.04, beats on revs; guides Q3 EPS above consensus; guides FY23 EPS in-line

  • Olo Inc. ( OLO ) beats by $0.02, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus

  • Omnicell ( OMCL ) beats by $0.29, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY23 EPS above consensus, revs in-line

  • OneSpaWorld ( OSW ) beats by $0.02; beats on revs; sees Q3 and FY23 revs above consensus

  • Parsons ( PSN ) beats by $0.12, beats on revs; guides FY23 revs above consensus

  • Paycom Software ( PAYC ) beats by $0.02, reports revs in-line; guides Q3 revs mostly below consensus; guides FY23 revs above consensus

  • Penumbra ( PEN ) beats by $0.15, beats on revs; guides FY23 revs above consensus

  • Perion Network beats by $0.12, beats on revs; raises FY23 revenue guidance, still inline

  • Phillips 66 ( PSX ) beats by $0.27

  • Phillips Edison & Company ( PECO ) beats by $0.03, beats on revs; raises FY23 core FFO guidance

  • Pinterest ( PINS ) beats by $0.09, beats on revs, guides for Q3 revenue growth in high single digit range, which is roughly inline with consensus estimate

  • Pioneer Natural Resources ( PXD ) beats by $0.40, misses on revs; provides Q3 and FY23 oil production guidance

  • Powell Inds ( POWL ) reports Q3 (Jun) results, beats on revs

  • ProPetro ( PUMP ) misses by $0.06, reports revs in-line

  • Prudential ( PRU ) misses by $0.08

  • Quad/Graphics ( QUAD ) reports Q2 (Jun) results; reaffirms FY23 guidance

  • Quaker Chemical ( KWR ) beats by $0.08, misses on revs

  • R1 RCM ( RCM ) misses by $0.06, reports revs in-line; guides FY23 revs below consensus

  • Repligen ( RGEN ) beats by $0.05, misses on revs; lowers FY23 EPS below consensus, revs below consensus

  • Rithm Capital ( RITM ) reports Q2 (Jun) results, beats on revs

  • Rover Group ( ROVR ) beats by $0.01, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus

  • Safehold ( SAFE ) reports EPS in-line, beats on revs

  • Sapiens Int'l ( SPNS ) beats by $0.01, beats on revs; raises FY23 revs above consensus; Board approves dividend

  • Scorpio Tankers ( STNG ) beats by $0.03, misses on revs

  • Scotts Miracle-Gro ( SMG ) misses by $0.29, misses on revs; guides FY23 revs below consensus; on target for $1.0 bln in cash flow by FY24

  • Service Corp ( SCI ) beats by $0.02, beats on revs; guides FY23 EPS in-line

  • Shoals Technologies ( SHLS ) beats by $0.01, beats on revs; reaffirms FY23 revs guidance

  • Silk Road Medical ( SILK ) beats by $0.04, beats on revs; guides FY23 revs above consensus

  • SiteOne Landscape Supply ( SITE ) beats by $0.02, beats on revs

  • Skyline Champion ( SKY ) beats by $0.01, reports revs in-line

  • SolarEdge Technologies ( SEDG ) beats by $0.09, reports revs in-line; guides Q3 revs below consensus

  • Spire ( SR ) reports Q3 (Jun) results, misses on revs; guides FY23 EPS in-line

  • Spirit Aerosystems ( SPR ) misses by $0.75, beats on revs

  • SpringWorks Therapeutics ( SWTX ) beats by $0.01

  • Sprouts Farmers Market ( SFM ) beats by $0.07, reports revs in-line; guides Q3 EPS in-line; guides FY23 EPS above consensus, reaffirms FY23 revs guidance

  • Starbucks ( SBUX ) beats by $0.05, misses on revs; Global comparable store sales increased 10%; narrows its FY23 EPS outlook, reaffirms FY23 revenue and same-store sales forecasts

  • Steris ( STE ) beats by $0.14, beats on revs; raises FY24 guidance

  • Steven Madden ( SHOO ) beats by $0.01, misses on revs; reaffirms FY23 EPS guidance, revs guidance

  • Terex ( TEX ) beats by $0.69, beats on revs; raises FY23 guidance

  • Ternium S.A. ( TX ) beats by $1.24, misses on revs; provides FY23 guidance

  • Teva Pharma ( TEVA ) beats by $0.03, beats on revs; reaffirms FY23 EPS mostly above consensus, raises revs mostly above consensus

  • The Vita Coco Company ( COCO ) beats by $0.13, beats on revs; guides FY23 revs in-line

  • Thomson Reuters ( TRI ) beats by $0.08, reports revs in-line; lowers FY23 revs below consensus

  • Trane ( TT ) beats by $0.12, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Triumph Group ( TGI ) misses by $0.06, beats on revs; guides FY24 revs in-line

  • Turning Point Brands ( TPB ) beats by $0.03, beats on revs

  • Unisys ( UIS ) beats by $0.38, beats on revs; Co reaffirms FY 23 outlook

  • United Therapeutics ( UTHR ) beats by $0.67, beats on revs

  • Unum Group ( UNM ) beats by $0.20, reports revs in-line

  • Valaris ( VAL ) misses by $0.12; beats on revs

  • Varex Imaging ( VREX ) beats by $0.09, beats on revs; guides Q4 EPS in-line, revs in-line

  • Verisk Analytics ( VRSK ) beats by $0.10, beats on revs; guides FY23 EPS mostly above consensus, revs mostly above consensus; Board approves dividend

  • Vertex Pharma ( VRTX ) beats by $0.03, beats on revs; raises product revenue guidance

  • Vertiv ( VRT ) misses by $0.07, beats on revs; guides Q3 EPS above consensus, revs above consensus; raises FY23 guidance

  • V.F. Corp ( VFC ) misses by $0.03, beats on revs; reaffirms FY24 EPS guidance

  • Vimeo ( VMEO ) beats by $0.13, beats on revs; guides Q3 revs in-line; reiterates FY23 revenue outlook

  • Virgin Galactic ( SPCE ) beats by $0.05, misses on revs; guides Q3 revs below consensus; guides Q4 (Dec) revs below consensus

  • Voya Financial ( VOYA ) beats by $0.21; doubles common stock dividend to $0.40/share and authorizes repurchase of additional $500 mln of common stock

  • Waters ( WAT ) beats by $0.21, reports revs in-line; guides Q3 EPS below consensus; guides FY23 EPS below consensus, revs below consensus

  • W&T Offshore ( WTI ) misses by $0.02, beats on revs; reduces FY23 capex budget

  • World Wrestling ( WWE ) reports Q2 (Jun) results, beats on revs; reaffirms FY23 adjusted OIBDA guidance; discloses update to Vincent McMahon alleged misconduct investigation

  • Xenia Hotels ( XHR ) beats by $0.01, misses on revs; guides FY23 FFO in-line

  • Xylem ( XYL ) beats by $0.16, beats on revs; raises FY23 EPS and revenue guidance above consensus

  • Yum! Brands ( YUM ) beats by $0.17, worldwide system sales grew 13% (excluding FX)

News:

  • United States ratings cut by Fitch to "AA+" from "AAA", reflects expected fiscal deterioration over the next three years, growing government debt, and erosion of governance related to peers

  • U.S. Treasury Secretary Janet Yellen issues statement on Fitch Ratings decision: "Strongly disagrees"

  • Former President Trump has been indicted in connection with efforts to overturn the 2020 election. He will appear in court on Thursday, according to CNN

  • The Biden administration delays replenishment of emergency oil reserve because prices are too high, according to Bloomberg

  • UAW wants double digit pay increases in contract talks, according to Reuters

  • China aiming to limit kids mobile use, according to Bloomberg

  • Alamos Gold ( AGI ) extends gold mineralization beyond mineral reserves and resources within Lynn Lake Project and across several regional targets highlighting significant exploration upside

  • Apple ( AAPL ): Pac12 presented Apple with streaming deal, according to ESPN

  • CureVac ( CVAC ) announces dosing of first participant in Phase 2 Study of modified COVID-19 mRNA vaccine candidates developed in collaboration with GSK

  • Digital World Acquisition Corp ( DWAC ) independent registered public accounting firm resigned -- disclosded "reportable events"

  • Enact Holdings ( ACT ) has approved a new share repurchase program with authorization to purchase up to $100 mln of its common stock

  • Farfetch ( FTCH ) announces that Tim Stone has joined the Company and will become Chief Financial Officer effective September 1, 2023

  • Guardant Health ( GH ) resolves pending litigation with Illumina (ILMN) and enters into new agreement to advance long-term commercial partnership and cancer research

  • Huntington Ingalls ( HII ) Shipbuilding division awarded a fixed-price incentive, multi-year procurement contract for the construction of six Arleigh Burke-class destroyers for the U.S. Navy

  • IDEAYA ( IDYA ) and Amgen (AMGN) Achieve First-Patient-In for Clinical Evaluation of IDE397 (MAT2A) and AMG 193 (PRMT5(MTA)) Combination in MTAP(-/-) Tumors

  • Innoviz Technologies ( INVZ ) to Develop B-Samples of New LiDAR Platform for Next Generation of BMW Automated Vehicles

  • Latch ( LTCH ) does not anticipate regaining compliance with its periodic filing obligations on or before its August 4, 2023 deadline due to unexpected delays in the ongoing restatements

  • NASDAQ ( NDAQ ) reports July 2023 volumes; U.S. equity options volume down to 255 mln contracts compared to 270 mln from June

  • Newmont Goldcorp ( NEM ): Papua New Guinea's Independent Consumer & Competition Commission granted clearance for the Company to proceed with its proposed acquisition of Newcrest Mining Limited (NCMGY)

  • NRG Energy ( NRG ) believes the claims set forth by CPS and Austin Energy both in the lawsuit and the NRC motion are without merit and intends to vigorously defend against them

  • NuScale Power ( SMR ) announces that the U.S. Nuclear Regulatory Commission accepted its Standard Design Approval Application for formal review

  • Paycom Software ( PAYC ) announces it will expand its payroll solution into Canada

  • Presto Automation ( PRST ) appoints Xavier Casanova as new CEO

  • RB Global ( RBA ) appoints Jim Kessler as CEO

  • Sprouts Farmers Market ( SFM ) announces retirement of Lawrence Molloy as CFO at the end of 2023

  • The Children's Place ( PLCE ) announces promotions and appointments of key executives

  • TMC ( TMC ) announces corporate update on expected timeline, application costs and production capacity following part II of the 28th session of the International Seabed Authority

  • Vodafone GmbH ( VOD ) and 1&1 Mobilfunk GmbH agreed a long-term national roaming partnership; agreement is expected to be accretive to Group cashflow from FY26

  • Volkswagen ( VWAGY ) in discussions with Leapmotor on Jetta partnership, according to Reuters

M&A:

  • Ferguson plc ( FERG ) announces the acquisition of Bruce Supply Corp, a plumbing distributor; The Kennedy Companies, a waterworks distributor; and S. G. Torrice, an HVAC distributor

  • General Electric's ( GE ) Aerospace division, TransDigm (TDG), and CVC Capital Partners eyeing Avionics business being sold by L3Harris (LHX), according to Bloomberg

  • Henry Schein ( HSIC ) announces the acquisition of a majority ownership interest in Large Practice Sales

  • Nu Skin ( NUS ): Rhyz Inc. announces the acquisition of BeautyBio; financial terms were not disclosed

  • Schneider National ( SNDR ) has acquired M&M Transport Services; financial terms were not disclosed

Syndicate:

  • Celestica ( CLS ) announces proposed secondary offering of subordinate voting shares by Onex Corporation (ONEXF)

  • OPAL Fuels ( OPAL ) files mixed shelf securities offering

  • PROCEPT BioRobotics ( PRCT ) prices offering of 4,422,169 shares of its common stock at $33.92 per share; files mixed shelf securities offering

  • PTC ( PTC ) prices secondary offering of 5,830,905 shares of its outstanding common stock by Rockwell Automation (ROK) at $141.75 per share

  • RPM Inc ( RPM ) files mixed shelf securities offering

  • Symbotic ( SYM ) files mixed shelf securities offering; also files for 548,613,159 shares of common stock by selling shareholders

  • Tarsus Pharmaceuticals ( TARS ) prices offering of 5,714,285 shares of its common stock at $17.50 per share

IPOs:

  • Expected to Price:

    • No IPOs expected.


  • Arm Holdings ( SFTBY ) targeting $60 bln valuation next month, according to Bloomberg

Gapping Up/Down

  • Gapping up:

    • POWL +24.7%, ROVR +19%, ELF +17.8%, FRSH +16.3%, CDLX +16.2%, VRT +11.4%, MTCH +11.1%, OLO +10.3%, UTHR +7.4%, MDXG +6.8%, ERIE +6%, VMEO +5.9%, PAG +5.2%, AZPN +5.2%, FLS +4.5%, EHC +4.3%, TEX +4.3%, MGY +4.1%, OMCL +3.7%, SSRM +3.7%, ADC +3%, LPG +3%, ANDE +2.9%, INSP +2.8%, VREX +2.6%, BGNE +2.6%, AIZ +2.2%, UIS +2.2%, IDYA +2%, BG +1.9%, DD +1.9%, MATX +1.4%, ENLC +1.3%, AMD +1.3%, AHT +1.3%, ULCC +1.2%, VOYA +1.2%, HPP +1.1%


  • Gapping down:

    • CMBM -29.5%, MLNK -18.5%, SEDG -12.7%, TMC -12.1%, NVRO -10.9%, CWH -10.4%, AXTA -10%, SHLS -9.8%, PEN -9.5%, LUMN -8.4%, ALIT -8.4%, SPCE -8%, GNRC -7.4%, PAYC -7.3%, CG -6.9%, BXC -6.8%, SKY -6.4%, EXAS -5.8%, LFUS -5.6%, SILK -5.1%, PRU -5%, BFAM -4.6%, WTI -4.6%, SYM -4.5%, EA -4.5%, COLM -4.3%, PINS -4%, OI -3.9%, JBT -3.8%, VFC -3.7%, CLS -3.6%, CACC -3.5%, PRST -3.1%, MOS -3.1%, LPX -2.9%, SFM -2.8%, ICFI -2.7%, NUS -2.6%, PTC -2.4%, SNDR -2.3%, DENN -2.3%, KWR -2.2%, OPAL -2.1%, CVAC -2.1%, DVN -2.1%, PLCE -2%, QUAD -2%, SBUX -1.9%, IMXI -1.9%, AIG -1.8%, HLN -1.8%, FTCH -1.5%, TARS -1.5%, FMS -1.5%, NVRI -1.5%, ILMN -1.3%, CZR -1.2%, PXD -1%, ALL -0.9%, GE -0.7%


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

  • Upgrades

    • Advanced Micro (AMD) upgraded to Buy from Neutral at Citigroup; tgt raised to $136

    • Freshworks (FRSH) upgraded to Buy from Hold at Canaccord Genuity; tgt raised to $25

    • Oshkosh (OSK) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $137


  • Downgrades:

    • Bloomin' Brands (BLMN) downgraded to Mkt Perform from Outperform at William Blair

    • Exact Sciences (EXAS) downgraded to Hold from Buy at The Benchmark Company

    • Norwegian Cruise Line (NCLH) downgraded to Neutral from Positive at Susquehanna; tgt $17

    • Omnicell (OMCL) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $70

    • ZoomInfo (ZI) downgraded to Peer Perform from Outperform at Wolfe Research


  • Others:

    • Lifezone Metals (LZM) initiated with a Buy at BTIG Research; tgt $14


Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for July 29 (Briefing.com Consensus NA; Prior -1.8%)

  • 08:15 ET: ADP Employment Change for July (Briefing.com Consensus 185K; Prior 497K)

  • 10:30 ET: EIA Crude Oil Inventories for July 29 (Briefing.com Consensus NA; Prior -0.600M)

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 -2.3%, Hang Seng -2.5%, Shanghai Composite -0.9%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Overall investor sentiment was under pressure after Fitch downgraded the rating of the U.S. to AA+ from AAA, due to repeated political disagreements about the debt ceiling and the failure to address entitlement spending. Insurance stocks in Japan retreated amid reports that major firms colluded when offering premiums for large corporate customers, including oil refiners. South Korea's July CPI increased at its slowest yr/yr pace in more than two years, but the Bank of Korea expects that the inflation rate will reaccelerate in August.

  • In economic data:

    • Japan's July Monetary Base -1.3% yr/yr (expected -0.9%; last -1.0%)

    • South Korea's July CPI 0.1% m/m (expected 0.2%; last 0.0%); 2.3% yr/yr (expected 2.4%; last 2.7%)

    • Australia's July AIG Construction Index -9.2 (last 10.6) and AIG Manufacturing Index -25.6 (last -19.8)

    • New Zealand's Q2 Employment Change 1.0% qtr/qtr (expected 0.5%; last 0.8%), Q2 Unemployment Rate 3.6% (expected 3.5%; last 3.4%), and Q2 Participation Rate 72.4% (expected 72.0%; last 72.0%). Q2 Labor Cost Index 1.1% qtr/qtr (expected 1.2%; last 0.9%); 4.3% yr/yr (expected 4.4%; last 4.5%)


---Equity Markets---

  • Japan's Nikkei: -2.3%

  • Hong Kong's Hang Seng: -2.5%

  • China's Shanghai Composite: -0.9%

  • India's Sensex: -1.0%

  • South Korea's Kospi: -1.9%

  • Australia's ASX All Ordinaries: -1.2%

---FX---

  • USD/JPY: UNCH at 142.76

  • USD/CNH: UNCH at 7.1840

  • USD/INR: +0.3% to 82.54

Europe: DAX -0.8%, FTSE -1.0%, CAC -0.6%

Major European indices trade in the red as sentiment weakens after Fitch downgraded the sovereign rating of the U.S. to AA+ from AAA. British homebuilder Taylor Wimpey raised its home completion guidance for the year. The Italian government plans to announce fiscal reforms, including tax cuts and a flat tax before elections in 2027. Fully loaded cargo ships are once again able to pass through the shallow points of Germany's Rhine after recent rains. The Bank of England is expected to raise its bank rate by 25 bps to 5.25% tomorrow.

  • In economic data:

    • Spain's July Unemployment Change -11,000 (expected -38,200; last -50,300)

    • Swiss Q3 SECO Consumer Climate -8 (last -13) and July procure.ch PMI 38.5 (expected 44.0; last 44.9)


---Equity Markets---

  • STOXX Europe 600: -0.8%

  • Germany's DAX: -0.8%

  • U.K.'s FTSE 100: -1.0%

  • France's CAC 40: -0.6%

  • Italy's FTSE MIB: -0.8%

  • Spain's IBEX 35: -1.2%

---FX---

  • EUR/USD: -0.4% to 1.0975

  • GBP/USD: -0.1% to 1.2777

  • USD/CHF: +0.7% to 0.8777

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