The S&P 500 futures are up 21 points and are trading 0.5% above fair value. The Nasdaq 100 futures are up 64 points and are trading 0.4% above fair value. The Dow Jones Industrial Average futures are up 144 points and are trading 0.6% above fair value.
Futures for the major indices are trading higher with a measure of relief that China's response to Speaker Pelosi's Taiwan visit was not more consequential. Attention has also shifted to earnings news which is generally better-than-feared.
In other news, St. Louis Fed President Bullard (FOMC voter) said after yesterday's close that he thinks a soft landing is possible but the Fed will need to keep raising interest rates. He thinks the target range should be 3.75%-4.00% by the end of the year.
Also, OPEC+ is meeting today and there has been speculation that it will increase its production quota.
Oil prices are moving higher this morning. WTI crude oil futures are up 0.6% to $95.00/bbl. Unleaded gasoline futures are up 1.6% to $3.11/gal. Natural gas futures are up 1.0% to $7.78.
Treasury yields are rising. The 2-yr note yield is up two basis points to 3.09% while the 10-yr note yield is up three basis points to 2.78%.
There's several economic data releases this morning with the focal point being the July ISM Non-Manufacturing Index (Briefing.comconsensus 53.8%; prior 55.3%) at 10:00 a.m. ET.
In corporate news:
Advanced Micro Devices (AMD 93.40, -5.89, -5.9%): beats by $0.01, reports revs in-line; guides Q3 revs in-line; reaffirms FY22 revs guidance
CVS Health (CVS 98.84, +3.47, +3.6%): beats by $0.22, beats on revs; raises FY22 EPS guidance above consensus
PayPal (PYPL 101.29, +11.66, +13.0%): beats by $0.06, reports revs in-line; guides Q3 EPS in-line, revs below consensus; raises FY22 EPS guidance; lowers FY22 revenue guidance; confirms $2 bln stake from Elliott, enters Information Sharing Agreement
Starbucks (SBUX 85.20, +1.49, +1.7%): beats by $0.08, reports revs in-line, US comps of +9%; Q4 (Sep) guidance remains suspended
Airbnb (ABNB 108.51, -7.83, -6.7%): beats by $0.13, reports revs in-line; guides Q3 revs above consensus; provides other metrics for Q3 guidance
Match Group (MTCH 60.97, -15.74, -20.5%): reports Q2 (Jun) results, misses on revs; guides Q3 revs below consensus
RingCentral (RNG 54.00, +4.30, +8.6%): beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY22 EPS above consensus, reaffirms FY22 revs guidance
Regeneron Pharma (REGN 586.28, +11.32, +1.9%): beats by $1.02, beats on revs
AmerisourceBergen (ABC 150.00, +7.19, +5.0%): beats by $0.06, beats on revs; raises FY22 EPS in-line
Ping Identity (PING 27.95, +10.48, +60.0%): to be acquired by Thoma Bravo for $2.8 bln, or $28.50/share in all-cash deal; misses by $0.22, misses on revs; also announced that company entered into definitive agreement to be acquired by Thomas Bravo for $28.50/share
Moderna (MRNA 168.97, +8.16, +5.0%): beats by $0.75, beats on revs
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: -0.7%, India's Sensex: +0.4%, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: -0.2%.
In economic data:
China's July Caixin Services PMI 55.5 (last 54.5)
Japan's July Services PMI 50.3 (last 54.0)
Hong Kong's July Manufacturing PMI 52.3 (last 52.4)
India's July Nikkei Services PMI 55.5 (expected 58.5; last 59.2)
Australia's July AIG Construction Index 45.3 (last 46.2). June Retail Sales 0.2% m/m, as expected (last 0.9%) and Q2 Retail Sales 1.4% qtr/qtr (expected 1.2%; last 1.0%). July Services PMI 50.9 (last 52.6)
New Zealand's Q2 Employment Change 0.0% qtr/qtr (expected 0.4%; last 0.0%). Q2 Labor Cost Index 1.3% qtr/qtr (expected 1.1%; last 0.7%); 3.4% yr/yr (expected 3.3%; last 3.1%). Q2 Unemployment Rate 3.3% (expected 3.1%; last 3.2%)
In news:
Japan's Defense Ministry will reportedly request a record high budget for FY23.
House Speaker Pelosi is visiting South Korea today.
FT reported that Samsung and SK Hynix are reconsidering investments in China after the passage of the Chips Act in the U.S.
China's Caixin Services PMI reached its highest level since April 2021 in the July reading.
Major European indices trade in the green. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: +0.5%.
In economic data:
Eurozone's June PPI 1.1% m/m (expected 1.0%; last 0.5%); 35.8% yr/yr (expected 35.7%; last 36.2%). June Retail Sales -1.2% m/m (expected 0.1%; last 0.4%); -3.7% yr/yr (expected -1.7%; last 0.4%). July Services PMI 51.2 (expected 50.6; last 53.0)
Germany's June trade surplus EUR6.40 bln (expected surplus of EUR200 mln; last surplus of EUR800 mln). June Imports 0.2% m/m (expected 1.3%; last 3.2%) and Exports 4.5% m/m (expected 1.0%; last 1.3%)
U.K.'s July Services PMI 52.6 (expected 53.3; last 54.3) o France's July Services PMI 53.2 (expected 52.1; last 53.9)
Italy's June Retail Sales -1.1% m/m (last 2.0%); 1.4% yr/yr (last 6.8%). July Services PMI 48.4 (expected 50.1; last 51.6)
Spain's July Services PMI 53.8 (expected 52.0; last 54.0)
Swiss July CPI 0.0% m/m (expected -0.1%; last 0.5%); 3.4% yr/yr (expected 3.5%; last 3.4%)
In news:
German Chancellor Scholz warned that further reductions of the supply of energy to Europe should be expected.
Liz Truss is reportedly ahead of Rishi Sunak in the race to lead the U.K.'s Conservative party.
BMW lowered its production forecast for the year. Societe Generale reported better than expected results for Q2.
U.S. equity futures:
S&P 500 Futures: +19 @ 4,110
DJIA Futures: +140 @ 32,536
Nasdaq 100 Futures: +62 @ 12,964
Overseas:
Europe: DAX +0.3%, FTSE +0.1%, CAC +0.4%
Asia: Nikkei +0.5%, Hang Seng +0.4%, Shanghai Composite -0.7%
Commodities:
Crude Oil +0.97 @ 95.39
Nat Gas +0.092 @ 7.798
Gold -8.80 @ 1780.90
Silver -0.116 @ 19.973
Copper -0.0128 @ 3.5057
U.S. Summary:
Earnings/Guidance:
A10 Networks (ATEN) beats by $0.02, reports revs in-line; reaffirms FY22 revs guidance
Advanced Micro (AMD) beats by $0.01, reports revs in-line; guides Q3 revs in-line; reaffirms FY22 revs guidance
Airbnb (ABNB) beats by $0.13, reports revs in-line; guides Q3 revs above consensus; provides other metrics for Q3 guidance
Alteryx (AYX) beats by $0.14, beats on revs; guides Q3 EPS mostly above consensus, revs above consensus; guides FY22 EPS mostly above consensus, revs above consensus
AmerisourceBergen (ABC) beats by $0.06, beats on revs; raises FY22 EPS in-line
Andersons (ANDE) beats by $1.36, beats on revs
Alight (ALIT) reports EPS in-line, revs in-line; guides Q3 revs in-line; guides Q4 (Dec) revs in-line; guides FY22 EPS in-line, revs in-line; Board authorizes $100 mln stock repurchase plan
Artisan Partners Asset Mgmt (APAM) misses by $0.06, reports revs in-line
Assurant (AIZ) beats by $0.07, misses on revs; provides outlook
AtriCure (ATRC) misses by $0.03, beats on revs; guides FY22 EPS in-line, revs in-line
Autohome (ATHM) beats by $0.07, reports revs in-line
Avid Tech (AVID) beats by $0.01, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY22 EPS in-line, revs in-line
Avista (AVA) misses by $0.01; reaffirms FY22 EPS guidance; reaffirms FY23 EPS guidance
Belden (BDC) beats by $0.19, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY22 EPS above consensus, revs above consensus
Berry Global (BERY) beats by $0.07, misses slightly on revs; guides FY22 EPS above consensus
Blackbaud (BLKB) beats by $0.08, reports revs in-line; guides FY22 EPS below consensus, revs below consensus due to evolving macroeconomic conditions
BorgWarner (BWA) beats by $0.19, beats on revs; guides FY22 EPS in-line
Brightcove (BCOV) beats by $0.05, beats on revs; guides Q3 EPS in-line, revs below two analyst estimate; guides FY22 EPS in-line, revs in-line
Bright Horizons (BFAM) beats by $0.01, misses on revs; lowers FY22 EPS below consensus, revs below consensus
Brinks (BCO) beats by $0.10, beats on revs; reaffirms FY22 EPS guidance, revs guidance
Caesars Entertainment (CZR) reports Q2 (Jun) results, beats on revs
Camping World (CWH) beats by $0.37, beats on revs
Cardiovascular Systems (CSII) misses by $0.04, reports revs in-line; guides FY23 revs in-line
Cardlytics (CDLX) misses by $0.15, reports revs in-line; expects 2H22revenue growth of +10-15% yr/yr
CDW (CDW) beats by $0.07, reports revs in-line
Cedar Fair (FUN) reports Q2 (Jun) results, misses on revs
Charles River (CRL) beats by $0.03, misses on revs; guides FY22 EPS below consensus, revs below consensus due to headwinds associated with CDMO business, foreign exchange, and interest expense
Chesapeake Energy (CHK) beats by $1.14; also says it is solidifying its strategic focus on the two premier North American shale gas plays
Cirrus Logic (CRUS) beats by $0.29, beats on revs; guides SepQ revs in-line; announces $500 mln buyback
Clean Harbors (CLH) beats by $0.93, beats on revs; raises FY22 adjusted EBITDA guidance
Cognex (CGNX) misses by $0.08, misses on revs; guides Q3 revs below consensus due to supply disruptions and lower expected e-commerce logistics revs
Conduent (CNDT) misses by $0.02, reports revs in-line; guides FY22 revs in-line; decides to keep Transportation business
CoreCivic (CXW) misses by $0.02, reports revs in-line
Coterra Energy (CTRA) beats by $0.07, beats on revs
Criteo (CRTO) beats by $0.15, misses on revs; guides Q3 revs in-line; expects FY22 revs to grow +11-14% at constant currency
CVS Health (CVS) beats by $0.22, beats on revs; raises FY22 EPS guidance above consensus
Dana Inc (DAN) misses by $0.17, beats on revs; guides FY22 EPS below consensus, revs in-line
DCP Midstream (DCP) beats by $0.46, misses on revs
Denny's (DENN) misses by $0.03, beats on revs, domestic system-wide same-store sales up +2.5%
DISH Network (DISH) beats by $0.16, reports revs in-line
DT Midstream (DTM) misses by $0.08; Reaffirms adjusted EBITDA guidance for 2022 and 2023
Dynatrace (DT) beats by $0.01, beats on revs; guides Q2 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs in-line
Editas Medicine (EDIT) beats by $0.02, beats on revs
Electronic Arts (EA) beats by $0.16, beats on revs; guides Q2 EPS above consensus, revs below consensus; reaffirms FY23 EPS guidance, revs guidance
Entergy (ETR) beats by $0.38; reaffirms FY22 EPS guidance
Everi (EVRI) beats by $0.01, beats on revs
Exact Sciences (EXAS) beats by $0.07, beats on revs; guides FY22 revs in-line
Exelon (EXC) misses by $0.02, beats on revs; reaffirms FY22 EPS guidance
Extra Space Storage (EXR) beats by $0.09, beats on revs; guides FY22 FFO above consensus
Fidelity National (FNF) beats by $0.30, misses on revs
FMC Corp (FMC) beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY22 EPS in-line, revs above consensus
Fresh Del Monte (FDP) misses by $0.31, beats on revs
Freshworks (FRSH) beats by $0.01, beats on revs; guides Q3 EPS midpoint below consensus, revs below consensus; guides FY22 EPS in-line, revs mostly below consensus
Generac (GNRC) beats by $0.36, beats on revs; reaffirms FY22 net sales guidance including currency impacts
Gibraltar Industries (ROCK) beats by $0.16, reports revs in-line; guides FY22 EPS in-line, revs in-line
Gilead Sciences (GILD) beats by $0.06, beats on revs; guides FY22 EPS in-line; announces dividend
GXO Logistics (GXO) beats by $0.06, beats on revs; reaffirms FY22 EPS guidance, raises FY22 organic revenue growth guidance
Hanover Insurance (THG) beats by $0.17, beats on revs
Healthpeak (PEAK) beats by $0.01, beats on revs; guides FY22 FFO in-line
Herbalife Nutrition (HLF) beats by $0.33, beats on revs; guides Q3 EPS in-line, revs in-line; lowers FY22 EPS guidance, reaffirms FY22 revs guidance; key performance indicators have stabilized; also announces Herbalife One digital platform
Hillman Solutions Corp. (HLMN) beats by $0.04, misses on revs; expects to be at low-end of prior FY22 revenue guidance
Horizon Pharma (HZNP) misses by $0.26, misses on revs; guides FY22 revs below consensus
Ingevity (NGVT) beats by $0.11, beats on revs; reaffirms FY22 revs guidance; also to acquire Ozark Materials; also announces $60 mln investment with Nexeon
Innospec (IOSP) beats by $0.22, beats on revs
Inspire Medical Systems (INSP) beats by $0.10, beats on revs; raises FY22 revs guidance above consensus
Intercept Pharma (ICPT) reports Q2 (Jun) results, misses on revs
J&J Snack Foods (JJSF) misses by $0.19, beats on revs
Kadant (KAI) beats by $0.19, reports revs in-line; guides Q3 revs below consensus; reaffirms FY22 EPS guidance, guides FY22 revs in-line
KAR Auction Services (KAR) misses by $0.03, beats on revs; lowers FY22 adjusted EBITDA guidance
Knowles (KN) beats by $0.01, misses on revs; guides Q3 EPS below consensus, revs below consensus; also announces restructuring program to further decrease exposure to the commodity MEMS microphone business
Littelfuse (LFUS) beats by $0.21, beats on revs; guides Q3 EPS below consensus, revs above consensus; increases dividend 13%
LivaNova (LIVN) beats by $0.01, beats on revs; guides FY22 EPS below consensus
Livent (LTHM) beats by $0.07, beats on revs; raises FY22 revs in-line
LL Flooring Holdings (LL) misses by $0.10, misses on revs
LPL Financial (LPLA) beats by $0.29, misses on revs
Magnolia Oil & Gas (MGY) beats by $0.17, beats on revs; expects FY22 production to grow by +12-14% yr/yr
Mandiant (MNDT) misses by $0.03, beats on revs; previously announced will be acquired by Google (GOOG)
Match Group (MTCH) reports Q2 (Jun) results, misses on revs; guides Q3 revs below consensus
Materion (MTRN) beats by $0.04, misses on revs; reaffirms FY22 EPS guidance
Mercury (MRCY) misses by $0.17, misses on revs; guides SepQ EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
Meritor (MTOR) beats by $0.19, beats on revs; acquisition by Cummins (CMI) expected to close by end of calendar year
Microchip (MCHP) beats by $0.03, reports revs in-line; guides Q2 EPS above consensus, revs above consensus
MicroStrategy (MSTR) reports large miss, reports revs in-line; Announces Separation of Chairman and CEO Roles
Moderna (MRNA) beats by $0.75, beats on revs
New York Times (NYT) beats by $0.05, reports revs in-line
Nintendo (NTDOY) reports Q1 results; revs rise 5% yr/yr
NiSource (NI) reports EPS in-line; reaffirms FY22 EPS guidance
NMI Hldgs (NMIH) beats by $0.10, beats on revs
Now (DNOW) beats by $0.09, beats on revs; guides FY22 revs above consensus
Oak Street Health (OSH) misses by $0.21, reports revs in-line; guides Q3 revs in-line; raises FY22 revs guidance
Occidental Petro (OXY) beats by $0.13, beats on revs
ODP Corporation (ODP) beats by $0.33, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance
O-I Glass (OI) beats by $0.07, beats on revs; guides Q3 EPS in-line; raises FY22 EPS guidance
OneSpan (OSPN) misses by $0.01, beats on revs; reaffirms FY22 revs guidance
Owens & Minor (OMI) misses by $0.02, misses on revs; lowers FY22 guidance
Parsons (PSN) reports EPS in-line, beats on revs; guides FY22 revs above consensus
Paycom Software (PAYC) beats by $0.14, beats on revs; guides Q3 revs above consensus; guides FY22 revs above consensus
PayPal (PYPL) beats by $0.06, reports revs in-line; guides Q3 EPS in-line, revs below consensus; raises FY22 EPS guidance; lowers FY22 revenue guidance; confirms $2 bln stake from Elliott, enters Information Sharing Agreement
PennyMac (PFSI) beats by $1.45, beats on revs
Perion Network (PERI) beats by $0.11, reports revs in-line; guides FY22 revs in-line
Ping Identity (PING) misses by $0.22, misses on revs; also announced that company entered into definitive agreement to be acquired by Thomas Bravo for $28.50/share
Pioneer Natural Resources (PXD) beats by $0.56, beats on revs
Proterra (PTRA) misses by $0.19, beats on revs; guides FY22 revs in-line
Prudential (PRU) misses by $0.59
Regeneron Pharma (REGN) beats by $1.02, beats on revs
RingCentral (RNG) beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY22 EPS above consensus, reaffirms FY22 revs guidance
Robinhood Markets (HOOD) reports EPS in-line, misses on revs; to reduce headcount by 23%
Sarepta Therapeutics (SRPT) reports Q2 (Jun) results, beats on revs; guides FY22 revs above consensus
Scotts Miracle-Gro (SMG) beats by $0.26, misses on revs; guides FY22 EPS below consensus, revs above consensus
SeaSpine (SPNE) misses by $0.01, beats on revs; raises FY22 revs guidance above consensus
Service Corp (SCI) beats by $0.05, beats on revs; reaffirms FY22 EPS guidance
Sinclair Broadcast (SBGI) misses by $0.07, reports revs in-line; guides Q3 revs below consensus
SiteOne Landscape Supply (SITE) beats by $0.08, misses on revs; raises FY22 adj. EBITDA range
Skyline Champion (SKY) beats by $0.46, beats on revs
SoFi Technologies (SOFI) misses by $0.02, beats on revs; guides FY22 revs above consensus
SolarEdge Technologies (SEDG) misses by $0.45, reports revs in-line; guides Q3 revs in-line
Sprout Social (SPT) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY22 EPS above consensus, revs above consensus
Starbucks (SBUX) beats by $0.08, reports revs in-line, US comps of +9%; Q4 (Sep) guidance remains suspended
Steris (STE) reports EPS in-line, misses on revs; guides FY23 EPS below consensus
Stratasys (SSYS) beats by $0.03, reports revs in-line; reaffirms FY22 EPS guidance, lowers FY22 revs below consensus
Tradeweb Markets (TW) beats by $0.01, reports revs in-line
Trane (TT) beats by $0.06, beats on revs; raises FY22 guidance
Triumph Group (TGI) beats by $0.01, beats on revs; lowers FY23 EPS below consensus; guides FY23 revs toward higher end of prior range
TrueCar (TRUE) reports in-line results; misses on revs
Tupperware (TUP) beats by $0.19, beats on revs
Under Armour (UAA) reports EPS in-line, beats on revs; lowers FY23 EPS below consensus, maintains revs in-line
Unum Group (UNM) beats by $0.69, beats on revs
Varex Imaging (VREX) beats by $0.12, beats on revs; guides Q4 EPS in-line, revs in-line
Veracyte (VCYT) beats by $0.09, beats on revs; raises FY22 guidance
Verisk Analytics (VRSK) beats by $0.12, reports revs in-line
Vertiv (VRT) reports EPS in-line, beats on revs; guides Q3 EPS below consensus, revs in-line; guides Q4 (Dec) EPS above consensus, revs above consensus
ViewRay (VRAY) reports EPS in-line, beats on revs; raises bottom end of FY22revs outlook
Voya Financial (VOYA) beats by $0.45, beats on revs
Waste Connections (WCN) beats by $0.05, beats on revs; raises FY22revs outlook
Yum! Brands (YUM) misses by $0.04, reports revs in-line; Same Store Sales were +1%
General News:
China plans for live fire military drills could blockade Taiwan. House Speaker Nancy Pelosi reaffirmed an "ironclad" US commitment to Taiwan (she has now departed the country), according to Financial Times
Saint Louis Fed President James Bullard (voting FOMC member) says rates will need to be higher for longer if inflation does not go down, according to Reuters
Senators planning to propose legislation that would allow Commodity Futures Trading Commission to regulate large cryptocurrency products, according to the Wall Street Journal
Airbnb (ABNB) announces $2 bln buyback program
Air Lease (AL) announces long-term lease placements for two new Airbus A321neo aircraft with Qanot Sharq Airlines, the first privately-owned airline in Uzbekistan
Alnylam Pharma's (ALNY) APOLLO-B Phase 3 study of patisiran met primary endpoint
Axonics Modulation (ANXN) commences 1.75 mln common stock offering
Bioventus (BVS) announces that the US Food and Drug Administration has granted 510(k) clearance for the company's neXus SonaStar Elite handpiece
Cedar Fair (FUN) declares cash distribution of $0.30 per limited partner unit; authorizes $250 million unit repurchase program
Codexis (CDXS) and Molecular Assemblies announce the execution of a Commercial License and Enzyme Supply Agreement, enabling Molecular Assemblies to utilize an evolved terminal deoxynucleotidyl transferase enzyme in Molecular Assemblies' Fully Enzymatic Synthesis technology
Coherus BioSciences (CHRS) receives FDA approval for CIMERLI
CytoSorbents (CTSO) and Fresenius Medical Care (FMS) have expanded their partnership by establishing a multi-stage global collaboration to combat life-threatening diseases in critical care for an initial term of three years
Enterprise Products (EPD) expands in Permian Basin; expands natural gas and NGL pipelines
Ethan Allen (ETD) declares special cash dividend to $0.50/share
Exact Sciences (EXAS) has entered a collaboration agreement with the West German Study Group
Ford Motor (F) reports Customer Deliveries Now Stretch Across All 50 U.S. States
ICF International (ICFI): The U.S. Department of Health and Human Services' Centers for Medicare & Medicaid Services recently selected global consulting and digital services provider ICF for a $33 mln recompete contract to provide digital modernization services to its Office of Information Technology
KBR (KBR) and McDermott Int'l enter licensing agreement for ammonia
Kiniksa Pharmaceuticals (KNSA) announces a global license agreement with Roche (RHHBY) and Genentech for the rights to develop and commercialize vixarelimab
Merck (MRK): Phase 3 KEYNOTE-921 trial evaluating KEYTRUDA (pembrolizumab) did not meet dual primary endpoints
ModivCare (MODV) tags CFO Heath Sampson as Interim CEO; Daniel E. Greenleaf is no longer serving as CEO
Nikola Corporation (NKLA) shareholders approve Proposal 2, allowing the company to increase the number of authorized shares from 600 mln to 800 mln
Now's (DNOW) Board of Directors authorized the Company's inaugural common stock repurchase program pursuant to which the Company may purchase up to $80 mln of NOW Inc.'s common stock, effective immediately and continuing through December 31, 2024
PayPal (PYPL) announces $15 bln share repurchase authorization
PayPal (PYPL) in its Q2 shareholder letter noted that it is entering into an information sharing agreement with Elliott Investment Management
Poseida Therapeutics (PSTX) and Roche Hldg (RHHBY) announce collaboration on allogeneic CAR-T cell therapies for hematologic malignancies
Regeneron Pharma (REGN) announces encouraging initial data from an ongoing Phase 1/2 trial investigating REGN5678, a novel PSMAxCD28 costimulatory bispecific antibody, in combination with the company's PD-1 inhibitor Libtayo in advanced metastatic castration-resistant prostate cancer
RenaissanceRe (RNR) approves a renewal of RenaissanceRe's authorized share repurchase program, bringing the total current authorization up to $500.0 mln, which includes the remaining amounts under prior authorizations
Rigel Pharma (RIGL) and Forma Therapeutics (FMTX) have entered into an exclusive, worldwide license agreement to develop, manufacture and commercialize olutasidenib, an oral, small molecule inhibitor of mIDH1 being investigated for the treatment of relapsed/refractory acute myeloid leukemia and other malignancies
Signify Health (SGFY) ticks lower on report it is working with bankers to explore strategic alternatives, according to
Teva Pharma (TEVA) is facing supply disruptions for ADHD medication Adderall which could last anywhere from weeks to months, according to Bloomberg
Tilray (TLRY) announces that Fresh Hemp Foods, a part of the Company's Tilray Wellness division, has signed a distribution agreement with Southern Glazer's Wine & Spirits, the preeminent distributor of wine and spirits
Warrior Met Coal (HCC) declares a special cash dividend of $0.80/share
M&A:
Apollo (APO) could acquire Atlas Air Worldwide (AAWW) for $102.50/share, according to Bloomberg
BorgWarner (BWA) acquires Rhombus Energy Solutions
Braskem SA (BAK) signed an agreement for acquisition of shares and subscription for new shares issued by Wise Plsticos S.A. amounting to 61.1% ownership interest
Ingevity (NGVT) invested $60 million to acquire an equity stake in Nexeon
Ingevity (NGVT) to acquire privately-owned Ozark Materials in an all-cash transaction valued at $325 million
MDxHealth SA (MDXH) has acquired Oncotype DX GPS test from Exact Sciences (EXAS)
NortonLifeLock (NLOK): UK CMA provisionally clears NortonLifeLock / Avast merger
Ping Identity (PING) to be acquired by Thoma Bravo for $2.8 bln, or $28.50/share in all-cash deal
Sierra Wireless (SWIR): Semtech (SMTC) confirms press reports, to acquire SWIR for $31/share; to be accretive to SMTC's earnings within 12-18 months
Twitter (TWTR) is asking banks for evidence that Elon Musk tried to kill financing for M&A deal, according to Reuters
UnitedHealth (UNH) is having issues with sale of its Brazil unit, according to Reuters
Syndicate:
Arcutis Biotherapeutics (ARQT) prices 7.5 mln shares of common stock at $20.00 per share
Axonics Modulation (AXNX) prices offering of 1.75 mln shares of common stock
Infinera (INFN) commences $275 mln convertible notes offering
Mercer Intl (MERC) files for $750 mln mixed securities shelf offering
Synovus (SNV) files mixed securities shelf offering
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
PYPL +11.8%, CRNT +11.5%, AYX +11.3%, CHRS+10.3%, SOFI +9.7%, EVH +9.6%, ARQT +7.9%, SWIR+7.4%, HLF +7.4%, UNM +7%, RIGL +6.9%, GXO+6.3%, ANDE +6.2%, RNG +5.7%, CWH +5.5%, EPD+5.4%, PFSI +5%, SPNE +4.2%, NKLA +3.7%, PERI+3.4%, SQ +3.3%, ETD +3.1%, PTRA +3%, HCC+2.6%, CTSO +2.6%, DISH +2.3%, LPLA +2.2%, NMIH+2.2%, FRSH +2.2%, ASTR +1.9%, GILD +1.9%, NDAQ+1.8%, AVNW +1.8%, PAYC +1.7%, CHK +1.7%, STAR+1.6%, SBUX +1.5%, INSP +1.5%, VRSK +1.5%, SMTC+1.4%, HOOD +1.4%, ATEN +1.4%, PFHC +1.3%, DCP+1.2%, CDXS +1.1%, TEVA +1%, WCN +1%
Gapping down:
MTCH -22%, KN -14.8%, APAM -12.6%, SEDG-12.2%, CGNX -10.9%, CDLX -9%, AVID -8.2%, MRCY-7.2%, ABNB -7.1%, BFAM -6.9%, STE -5.5%, AMD-5.1%, OSH -5.1%, EXAS -5.1%, CNDT -5%, DENN-5%, NGVT -5%, BMBL -4.2%, EGY -4.2%, EVRI-3.9%, MGY -3.2%, AXNX -3.1%, CZR -3%, PRU-2.9%, SRPT -2.7%, EXPI -2.7%, EXPE -2%, CXW-1.8%, SGFY -1.7%, UTHR -1.7%, KAI -1.6%, OI-1.6%, SCI -1.5%, PUMP -1.5%, BKNG -1.3%, ENPH-1.2%, VOYA -1.1%, VRT -1%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Apollo Investment (AINV) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $13.50
Atlas Air Worldwide (AAWW) upgraded to Peer Perform from Underperform at Wolfe Research
CF Industries (CF) upgraded to Buy from Neutral at Citigroup; tgt $117
Clearwater Paper (CLW) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $45
Coca-Cola European Partners (CCEP) upgraded to Buy from Neutral at UBS; tgt raised to $68
Cognex (CGNX) upgraded to Outperform from Mkt Perform at Bernstein; tgt $65
Mosaic (MOS) upgraded to Buy from Neutral at Citigroup; tgt $61
Sealed Air (SEE) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $70
Uber (UBER) upgraded to Outperform from Mkt Perform at Raymond James; tgt $38
Xylem (XYL) upgraded to Neutral from Underperform at Credit Suisse; tgt raised to $96
Downgrades:
Caterpillar (CAT) downgraded to Mkt Perform from Outperform at Bernstein; tgt $195
Esperion Therapeutics (ESPR) downgraded to Underperform from Neutral at Credit Suisse; tgt lowered to $6
First Commonwealth (FCF) downgraded to Equal-Weight from Overweight at Stephens; tgt $15.50
Harmony Biosciences (HRMY) downgraded to Hold from Buy at Jefferies; tgt $57
Hydrofarm Holdings (HYFM) downgraded to Neutral from Overweight at JP Morgan
Incyte (INCY) downgraded to Neutral from Buy at Guggenheim
Knowles (KN) downgraded to Neutral from Buy at ROTH Capital; tgt lowered to $17
Olaplex (OLPX) downgraded to Equal Weight from Overweight at Barclays; tgt $16
Sierra Wireless (SWIR) downgraded to Hold from Buy at Canaccord Genuity
Others:
ImmunityBio (IBRX) initiated with a Buy at Jefferies; tgt $8
Kymera Therapeutics (KYMR) initiated with a Buy at Goldman; tgt $40
ModivCare (MODV) initiated with an Overweight at Stephens; tgt $145
Trip.comGroup (TCOM) placed on 90-day Positive Catalyst Watch at Citigroup
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for July 30 (Briefing.comConsensus NA; Prior -1.8%)
09:45 ET: IHS Markit Services PMI - Final for July (Briefing.comConsensus NA; Prior47.0%)
10:00 ET: Factory Orders for June (Briefing.comConsensus 0.9%; Prior 1.6%)
10:00 ET: ISM Non-Manufacturing Index for July (Briefing.comConsensus 53.8%; Prior 55.3%)
10:30 ET: EIA Crude Oil Inventories for July 30 (Briefing.comConsensus NA; Prior -4.52M)
Earnings:
Monday (Aug 1)
Morning: AJRD AMG BLDR CHKP CAN GPN J JELD ON
Afternoon: ATVI ADUS AFL AMKR ANET CAR AXNX BCC BRX CF CNO CRK CACC DVA DVN FANG PLOW DEI EBS EHC EPR EQC EVER HLIT NSP INST JRVR KMPR KMT KFRC LSCC LEG MATX MPWR MOS OHI OGS OTTR PINS RDN RMBS RRX RHP SANM SBAC SPG RIG UNVR VRNS VNOM VNO WMB WWD ZI
Tuesday (Aug 2)
Morning: AME AINV ARNC ASTE ATKR BPMC BP CAT CNP CMI DBD DD DEA ETN NPO ENTG ETRN ESPR EOLS AQUA EXPD RACE IT THRM GEO GPRE HLNE HSC HSIC HUN IDXX ITW INCY IGT IPGP JBLU KBR KKR LCII LEA LDOS LGIH MPC MAR TAP MPLX NRZ OTLY PEG RGEN SPGI SABR SAGE SEE SWI SPWR SYNH BLD TSEM UBER VSH WAT WEC WLK XYL ZBRA ZBH
Afternoon: AMD ABNB AYX ANDE APAM AIZ ATRC BLKB BFAM BCOV CZR CWH CSII CDLX CHK CRUS CGNX CNDT CXW CTRA DCP DENN EA EVH EXAS EXR FNF FMC FRSH GILD GXO THG PEAK HLF NGVT IOSP INSP JJSF KAI KAR KN LFUS LTHM LPLA MGY MTCH MRCY MCHP MSTR NMIH OI OSH OXY OSPN PAYC PYPL PFSI PUMP PRU LUNG RNG SRPT SPNE SCI TSLX SKY SOFI SEDG SPT SBUX STE TEX TX UNM VREX VRSK VRAY VOYA WCN
Asia & Europe detail:
Asia: Nikkei +0.5%, Hang Seng +0.4%, Shanghai Composite -0.7%
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Defense Ministry will reportedly request a record high budget for FY23. House Speaker Pelosi is visiting South Korea today. FT reported that Samsung and SK Hynix are reconsidering investments in China after the passage of the Chips Act in the U.S. China's Caixin Services PMI reached its highest level since April 2021 in the July reading.
In economic data:
China's July Caixin Services PMI 55.5 (last 54.5)
Japan's July Services PMI 50.3 (last 54.0)
Hong Kong's July Manufacturing PMI 52.3 (last 52.4)
India's July Nikkei Services PMI 55.5 (expected 58.5; last 59.2)
Australia's July AIG Construction Index 45.3 (last 46.2). June Retail Sales 0.2% m/m, as expected (last 0.9%) and Q2 Retail Sales 1.4% qtr/qtr (expected 1.2%; last 1.0%). July Services PMI 50.9 (last 52.6)
New Zealand's Q2 Employment Change 0.0% qtr/qtr (expected 0.4%; last 0.0%). Q2 Labor Cost Index 1.3% qtr/qtr (expected 1.1%; last 0.7%); 3.4% yr/yr (expected 3.3%; last 3.1%). Q2 Unemployment Rate 3.3% (expected 3.1%; last 3.2%)
---Equity Markets---
Japan's Nikkei: +0.5%
Hong Kong's Hang Seng: +0.4%
China's Shanghai Composite: -0.7%
India's Sensex: +0.4%
South Korea's Kospi: +0.9%
Australia's ASX All Ordinaries: -0.2%
---FX---
USD/JPY: +0.1% to 133.35
USD/CNH: -0.2% to 6.7613
USD/INR: +0.7% to 79.16
Europe: DAX +0.3%, FTSE +0.1%, CAC +0.4%
Major European indices trade in the green. German Chancellor Scholz warned that further reductions of the supply of energy to Europe should be expected. Liz Truss is reportedly ahead of Rishi Sunak in the race to lead the U.K.'s Conservative party. BMW lowered its production forecast for the year. Societe Generale reported better than expected results for Q2.
In economic data:
Eurozone's June PPI 1.1% m/m (expected 1.0%; last 0.5%); 35.8% yr/yr (expected 35.7%; last 36.2%). June Retail Sales -1.2% m/m (expected 0.1%; last 0.4%); -3.7% yr/yr (expected -1.7%; last 0.4%). July Services PMI 51.2 (expected 50.6; last 53.0)
Germany's June trade surplus EUR6.40 bln (expected surplus of EUR200 mln; last surplus of EUR800 mln). June Imports 0.2% m/m (expected 1.3%; last 3.2%) and Exports 4.5% m/m (expected 1.0%; last 1.3%)
U.K.'s July Services PMI 52.6 (expected 53.3; last 54.3) o France's July Services PMI 53.2 (expected 52.1; last 53.9)
Italy's June Retail Sales -1.1% m/m (last 2.0%); 1.4% yr/yr (last 6.8%). July Services PMI 48.4 (expected 50.1; last 51.6)
Spain's July Services PMI 53.8 (expected 52.0; last 54.0)
Swiss July CPI 0.0% m/m (expected -0.1%; last 0.5%); 3.4% yr/yr (expected 3.5%; last 3.4%)
---Equity Markets---
STOXX Europe 600: +0.2%
Germany's DAX: +0.3%
U.K.'s FTSE 100: +0.1%
France's CAC 40: +0.4%
Italy's FTSE MIB: +0.1%
Spain's IBEX 35: +0.5%
---FX---
EUR/USD: +0.4% to 1.0205
GBP/USD: +0.3% to 1.2199
USD/CHF: UNCH at 0.9574