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05/08/22 Briefing




The S&P 500 futures are up 3 points and are trading slightly above fair value. The Nasdaq 100 futures are up 5 point and are 0.1% below fair value. The Dow Jones Industrial Average futures are up 62 points and are trading 0.3% above fair value.

Futures for the major indices are mixed this morning as participants sort through another large batch of earnings results. There is also a lack of conviction ahead of the employment report at 8:30 a.m. ET, which will have an outsized impact on how the market is thinking about future Fed policy moves.

In related central bank news, the Reserve Bank of India raised its repurchase rate by 50 basis points to 4.5% against expectations for a 35-bps increase. Also, the Reserve Bank of Australia expects above-target inflation to continue through 2023.

Turning to political news, press reports indicate Arizona Senator Sinema is going to support the Inflation Reduction Act after the provision to close the carried interest tax loophole was removed. Also, China has sanctioned House Speaker Pelosi over her Taiwan visit.

Energy complex futures are somewhat lower this morning. WTI crude oil futures are down 0.6% to $88.01/bbl. Natural gas futures are down 1.8% to $7.97/mmbtu. Unleaded gasoline futures are down 0.1% to $2.79/gal. 

Treasury yields are trending higher. The 2-yr note yield is up two basis points to 3.06% while the 10-yr note yield is up three basis points to 2.70%.

In corporate news:

  • Warner Bros. Discovery (WBD 15.43, -2.05, -11.73%):  issued guidance during earnings conference call; sees FY22 adjusted EBITDA of $9.0-$9.5 bln vs. prior guidance of $10 bln

  • Carvana (CVNA 36.36, +2.82, +8.41%): misses by $0.37, misses on revs; continues to expect a return to >$4,000 total GPU and significant positive EBITDA in FY 2023

  • Yelp (YELP 36.90, +4.58, +14.17%): beats by $0.12, beats on revs; guides FY22 revs above consensus

  • DoorDash (DASH 89.80, +8.44, +10.37%): misses by $0.32, beats on revs

  • Lyft (LYFT 18.84, +1.45, +8.34%): beats by $0.17, reports revs in-line, adjusted EBITDA of $79.1 mln, easily exceeding its guidance of $10-$20 mln; guides for Q3 revenue of $1.040-$1.060 bln vs. $1.12 bln consensus estimate, guides for Q3 adjusted EBITDA of $55-$65 mln

  • Zillow (ZG 34.79, -3.34, -8.76%): beats by $0.13, beats on revs; guides Q3 revs and EBITDA below consensus

  • Expedia Group (EXPE 107.07, +4.87, +4.77%): beats by $0.40, beats on revs

  • Doximity (DOCS 33.53, -6.78, -16.82%): beats by $0.03, beats on revs; guides Q2 revs below consensus; guides FY23 revs below consensus

  • AMC Entertainment (AMC 17.00, -1.66, -8.90%): beats by $0.03, misses on revs

  • Rocket Companies (RKT 9.50, -0.79, -7.68%): misses by $0.05, misses on revs

  • Twilio (TWLO 89.45, -8.74, -8.90%): beats by $0.09, beats on revs; guides Q3 EPS below consensus, revs below consensus

  • Block (SQ 83.79, -5.91, -6.59%): beats by $0.02, beats on revs

  • DraftKings (DKNG 17.72, +1.36, +8.31%): beats by $0.56, beats on revs; raises FY22 revs in-line

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +0.9% (+1.4% for the week), Hong Kong's Hang Seng: +0.1% (+0.2% for the week), China's Shanghai Composite: +1.2% (-0.8% for the week), India's Sensex: +0.2% (+1.4% for the week), South Korea's Kospi: +0.7% (+1.6% for the week), Australia's ASX All Ordinaries: +0.6% (+1.1% for the week).

  • In economic data:

  • Japan's June Household Spending 1.5% m/m (expected 0.2%; last -1.9%); 3.5% yr/yr (expected 1.5%; last -0.5%). June overtime pay 5.8% yr/yr (last 5.5%). June Leading Index -0.6% m/m (last -1.7%) and Coincident Indicator 4.1% m/m (last -1.9%)

  • South Korea's June Current Account surplus $5.61 bln (last surplus of $3.86 bln)

  • Australia's July AIG Services Index 51.7 (last 48.8)

  • Singapore's June Retail Sales -1.4% m/m (last 1.8%); 14.8% yr/yr (last 17.8%)

  • In news:

  • Japan's Prime Minister Kishida called on China to stop its military drills around Taiwan.

  • The approval rating of South Korea's President Yoon fell to 24% from 28%.

  • The Reserve Bank of Australia expects above-target inflation to continue through 2023.

  • The Reserve Bank of India raised its repurchase rate by 50 bps to 5.40% against expectations for a 35-bps increase.

  • RBI Governor Das said that India's economy is impacted by the global situation, but fundamentals are strong and resilient.

  • Major European indices trade on a modestly lower note while Spain's IBEX (+0.2%) outperforms. STOXX Europe 600: -0.3% (-0.1% week-to-date), Germany's DAX: UNCH (+1.3% week-to-date), U.K.'s FTSE 100: -0.2% (+0.2% week-to-date), France's CAC 40: -0.5% (+0.5% week-to-date), Italy's FTSE MIB: -0.1% (+0.9% week-to-date), Spain's IBEX 35: +0.2% (+0.2% week-to-date).

  • In economic data:

  • Germany's June Industrial Production 0.4% m/m (expected -0.3%; last -0.1%)

  • U.K.'s July Halifax House Price Index -0.1% m/m (expected 1.2%; last 1.4%); 11.8% yr/yr (last 12.5%)

  • France's June Industrial Production 1.4% m/m (expected -0.2%; last 0.2%), June trade deficit EUR13.10 bln (expected deficit of EUR12.60 bln; last deficit of EUR12.90 bln), and Q2 nonfarm payrolls 0.5% qtr/qtr (last 0.3%)

  • Italy's June Industrial Production -2.1% m/m (expected -0.2%; last -1.1%); -1.2% yr/yr (expected 4.0%; last 3.4%)

  • Spain's June Industrial Production 7.0% yr/yr (expected 3.4%; last 4.5%)

  • In news:

  • Germany, France, and Spain reported better than expected Industrial Production for June while Italy missed estimates.

  • The U.K.'s Halifax House Price Index recorded its first m/m decrease in 13 months amid growing expectations for a recession in the U.K. Bank of England Governor Bailey said that he intends to serve the remainder of his term, which ends in 2028, regardless of who becomes the next prime minister.

U.S. equity futures:

  • S&P 500 Futures: +3 @ 4,154

  • DJIA Futures: +55 @ 32,782

  • Nasdaq 100 Futures: -2 @ 13,309

Overseas:

  • Europe: DAX UNCH, FTSE -0.2%, CAC -0.5%

  • Asia: Nikkei +0.9%, Hang Seng +0.1%, Shanghai Composite +1.2%

Commodities:

  • Crude Oil -0.48 @ 88.06

  • Nat Gas  -0.136 @ 7.986

  • Gold -3.50 @ 1803.40

  • Silver -0.055  @ 20.067

  • Copper +0.0560 @ 3.5375

U.S. Summary:

  • Earnings/Guidance:

  • ACM Research (ACMR) beats by $0.19, beats on revs; reaffirms FY22 revs guidance

  • Air Transport Services Group (ATSG) beats by $0.09, reports revs in-line

  • Alliant Energy (LNT) beats by $0.05, beats on revs; reaffirms FY22 EPS guidance

  • Allscripts Healthcare (MDRX) beats by $0.03, beats on revs; affirms annual outlook

  • AMC Entertainment (AMC) beats by $0.03, misses on revs

  • Ameren (AEE) misses by $0.02, beats on revs

  • Amgen (AMGN) beats by $0.32, beats on revs; guides FY22 EPS in-line, revs in-line

  • AMN Healthcare (AMN) beats by $0.32, beats on revs; guides Q3 revs above consensus

  • Amwell (AMWL) misses by $0.04, reports revs in-line; guides FY22 revs in-line

  • Appian (APPN) misses by $0.12, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY22 EPS below consensus, revs above consensus

  • B&G Foods (BGS) misses by $0.16, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance

  • Beacon Roofing Supply (BECN) misses by $0.18, beats on revs

  • BellRing Brands (BRBR) beats by $0.01, misses on revs; guides FY22 revs in-line

  • Beyond Meat (BYND) misses by $0.39, misses on revs; lowers FY22 revs below consensus; to cut ~4% of workforce

  • BigCommerce (BIGC) beats by $0.05, beats on revs; guides Q3 revs below consensus; lowers FY22 revs in-line

  • BlackLine (BL) beats by $0.06, beats on revs; guides Q3 EPS above consensus, revs below consensus; guides FY22 EPS above consensus, reaffirms FY22 revs guidance

  • Block (SQ) beats by $0.02, beats on revs

  • Bluebirdbio (BLUE) misses by $0.07, beats on revs

  • Brigham Minerals (MNRL) beats by $0.06, beats on revs

  • Brookfield Renewable Partners (BEP) beats by $0.01, beats on revs

  • Callaway Golf (ELY) beats by $0.05, beats on revs; raises low end of FY22 EPS and adjusted EBITDA guidance

  • Cambium Networks (CMBM) beats by $0.12, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY22 EPS in-line, revs in-line

  • CareDx (CDNA) misses by $0.02, misses on revs; guides FY22 revs below consensus due to higher than expected mix of commercial patients

  • Carvana (CVNA) misses by $0.37, misses on revs; continues to expect a return to >$4,000 total GPU and significant positive EBITDA in FY 2023

  • Chegg (CHGG) beats by $0.04, beats on revs; guides Q3 revs below consensus; guides FY22 revs in-line

  • Cinemark (CNK) misses by $0.83, beats on revs

  • Clean Energy Fuels (CLNE) beats by $0.03, misses on revs; provides FY22 outlook

  • Cloudflare (NET) beats by $0.01, beats on revs; guides Q3 EPS in-line, revs above consensus; reaffirms FY22 EPS guidance, guides FY22 revs above consensus

  • Codexis (CDXS) beats by $0.08, beats on revs; reaffirms FY22 revs guidance

  • Con Edison (ED) beats by $0.05; reaffirms FY22 EPS guidance

  • Construction Partners (ROAD) beats by $0.08, beats on revs; guides FY22 revs above consensus

  • Corsair Gaming (CRSR) misses by $0.21, beats on revs; guides FY22 revs below consensus

  • CubeSmart (CUBE) beats by $0.03, reports revs in-line; guides Q3 AFFO above consensus; guides FY22 AFFO above consensus

  • Cushman & Wakefield (CWK) beats by $0.09, beats on revs

  • Definitive Healthcare (DH) reports Q2 (Jun) results, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY22 EPS below consensus, revs in-line

  • Diodes (DIOD) beats by $0.14, reports revs in-line; guides Q3 revs in-line

  • DMC Global (BOOM) beats by $0.33, beats on revs; guides Q3 revs in-line

  • DoorDash (DASH) misses by $0.32, beats on revs

  • Doximity (DOCS) beats by $0.03, beats on revs; guides Q2 revs below consensus; guides FY23 revs below consensus

  • DraftKings (DKNG) beats by $0.56, beats on revs; raises FY22 revs in-line

  • Dropbox (DBX) beats by $0.01, reports revs in-line

  • Earthstone Energy (ESTE) beats by $0.01, beats on revs; provides FY22 outlook

  • El Pollo Loco (LOCO) beats by $0.02, reports revs in-line

  • Envestnet (ENV) beats by $0.04, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY22 EPS below consensus, revs below consensus

  • Essent Group (ESNT) beats by $0.65, reports revs in-line; raises quarterly dividend to $0.22/share from $0.21/share

  • EVERTEC (EVTC) reports EPS in-line, beats on revs; guides FY22 EPS in-line, revs above consensus

  • Expedia Group (EXPE) beats by $0.40, beats on revs

  • FIGS, Inc. (FIGS) beats by $0.01, beats on revs; guides FY22 revs in-line; announces changes to leadership titles

  • Floor & Decor (FND) beats by $0.03, beats on revs; guides FY22 EPS below consensus, revs in-line

  • Fluor (FLR) misses by $0.17, misses on revs; guides FY22 EPS in-line; lowers top end of FY22 EPS guidance range

  • Fox Factory Holding (FOXF) beats by $0.16, beats on revs; guides Q3 EPS below consensus, revs above consensus; reaffirms FY22 EPS guidance, guides FY22 revs above consensus

  • Franchise Group (FRG) misses by $0.09, misses on revs; lowers FY22 guidance

  • Frontier Communications Parent (FYBR) beats by $0.18, reports revs in-line; raises lower end of guidance

  • fuboTV (FUBO) beats by $0.12, misses on revs

  • Funko (FNKO) beats by $0.03, beats on revs; guides FY22 EPS in-line, revs mostly above consensus

  • Genpact (G) beats by $0.06, beats on revs; narrows FY22 EPS in-line, revs below consensus

  • Gogo (GOGO) beats by $0.02, beats on revs; sees FY22 revs near high end of previous range

  • GoPro (GPRO) beats by $0.02, beats on revs

  • Goodyear Tire (GT) beats by $0.11, beats on revs

  • GrafTech International (EAF) reports EPS in-line, misses on revs

  • Grand Canyon Education (LOPE) beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides Q4 (Dec) EPS below consensus, revs below consensus

  • Green Dot (GDOT) beats by $0.19, reports revs in-line; guides FY22 EPS in-line

  • Grid Dynamics (GDYN) beats by $0.03, beats on revs; guides Q3 revs above consensus

  • Guardant Health (GH) reports Q2 (Jun) results, beats on revs; reaffirms FY22 revs guidance

  • Health Catalyst (HCAT) reports Q2 (Jun) results, beats on revs; guides Q3 revs below consensus; guides FY22 revs below consensus; authorizes repurchase program for up to $40 mln

  • Horace Mann (HMN) beats by $0.11, reports revs in-line; guides FY22 EPS in-line

  • HubSpot (HUBS) beats by $0.02, beats on revs; guides Q3 EPS, revs below consensus; lowers FY22 guidance

  • Insulet (PODD) misses by $0.73, beats on revs; guides Q3 revs above consensus; guides FY22 revs above consensus

  • Interface (TILE) beats by $0.04, misses on revs; guides Q3 revs in-line; guides FY22 revs below consensus

  • iRhythm (IRTC) beats by $0.10, beats on revs; guides FY22 revs in-line

  • Jamf Holding (JAMF) beats by $0.01, beats on revs; guides Q3 revs in-line; guides FY22 revs in-line

  • Kratos Defense and Security (KTOS) beats by $0.03, beats on revs; guides Q3 revs below consensus; guides FY22 revs in-line

  • Leslie's (LESL) misses by $0.06, misses on revs; lowers FY22 EPS and revenue guidance below consensus

  • Lions Gate Entertainment (LGF.A) beats by $0.02, misses on revs

  • Live Nation (LYV) beats by $0.14, beats on revs

  • LiveRamp (RAMP) beats by $0.04, beats on revs; guides Q2 revs above consensus; guides FY23 revs below consensus

  • Lyft (LYFT) beats by $0.17, reports revs in-line, adjusted EBITDA of $79.1 mln, easily exceeding its guidance of $10-$20 mln; guides for Q3 revenue of $1.040-$1.060 bln vs. $1.12 bln consensus estimate, guides for Q3 adjusted EBITDA of $55-$65 mln

  • Manitowoc (MTW) misses by $0.09, misses on revs

  • Maravai Life Sciences (MRVI) beats by $0.08, beats on revs; guides FY22 EPS below consensus, revs below consensus

  • MasTec (MTZ) beats by $0.01, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY22 EPS above consensus, revs in-line

  • MediaAlpha (MAX) reports Q2 (Jun) results, misses on revs; guides Q3 revs below consensus

  • Monster Beverage (MNST) misses by $0.19, beats on revs

  • Motorola Solutions (MSI) beats by $0.20, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus

  • Mueller Water (MWA) misses by $0.01, reports revs in-line; guides FY22 revs in-line

  • National Fuel Gas (NFG) beats by $0.11, misses on revs; raises FY22 EPS outlook; guides FY23 EPS above consensus

  • New Relic (NEWR) beats by $0.10, beats on revs; guides SepQ EPS above consensus, revs below consensus; guides FY23 EPS above consensus, revs above consensus; names David Barter as CFO

  • nLIGHT (LASR) misses by $0.01, misses on revs; guides Q3 revs below consensus

  • NortonLifeLock (NLOK) beats by $0.02, misses on revs; guides Q2 EPS above consensus, revs below estimate; confirms Avast (AVASF) merger approved by UK's CMA

  • Nu Skin (NUS) beats by $0.02, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY22 EPS in-line, revs below consensus

  • Paylocity (PCTY) beats by $0.27, beats on revs; guides Q1 revs above consensus; guides FY22 revs above consensus

  • Penumbra (PEN) beats by $0.04, reports revs in-line; reaffirms FY22 revs guidance

  • Phillips Edison & Company (PECO) beats by $0.02, beats on revs; guides FY22 FFO in-line

  • Playa Hotels & Resorts (PLYA) beats by $0.05, beats on revs

  • Post (POST) beats by $0.14, beats on revs; raises FY22 adjusted EBITDA guidance

  • Protolabs (PRLB) beats by $0.07, reports revs in-line

  • Puma Biotech. (PBYI) beats by $0.19, beats on revs

  • Quaker Chemical (KWR) beats by $0.27, beats on revs

  • Redfin (RDFN) misses by $0.10, reports revs in-line; guides Q3 revs in-line

  • RE/MAX Holdings (RMAX) beats by $0.04, reports revs in-line; guides Q3 revs below consensus; guides FY22 revs below consensus

  • Republic Services (RSG) beats by $0.14, beats on revs; raises FY22 EPS above consensus

  • Rocket Companies (RKT) misses by $0.05, misses on revs

  • Rover Group (ROVR) reports EPS in-line, beats on revs; guides Q3 revs below consensus; guides FY22 revs below consensus

  • Schrodinger (SDGR) misses by $0.06, beats on revs; guides Q3 revs below consensus; reaffirms FY22 revs guidance

  • Scripps (SSP) reports EPS in-line, misses on revs

  • Select Medical (SEM) misses by $0.12, reports revs in-line

  • Skyworks (SWKS) beats by $0.09, reports revs in-line; guides Q4 EPS below consensus, revs in-line; increases dividend

  • Southwestern Energy (SWN) beats by $0.03, beats on revs; authorizes up to $1 bln for share repurchases; increases FY22 capital investment by approximately 10%

  • SPX Corp (SPXC) beats by $0.10, beats on revs; raises FY22 EPS in-line, revs above consensus; announces plan to reorganize corporate legal structure

  • Standex International (SXI) beats by $0.09, beats on revs; expects Q1 (Sep) revs to increase yr/yr

  • Stericycle (SRCL) beats by $0.04, reports revs in-line

  • Suncor Energy (SU) beats by CAD0.03, beats on revs

  • Synaptics (SYNA) beats by $0.20, reports revs in-line; guides Q1 revs below consensus

  • Teradata (TDC) beats by $0.04, misses on revs; guides Q3 EPS in-line; reaffirms FY22 EPS and revenue guidance

  • TimkenSteel (TMST) misses by $0.04, reports revs in-line

  • Trimble (TRMB) beats by $0.02, beats on revs; lowers FY22 EPS, revs outlook

  • TripAdvisor (TRIP) beats by $0.11, beats on revs

  • Tutor Perini (TPC) reports Q2 (Jun) results, misses on revs; withdraws guidance

  • Twilio (TWLO) beats by $0.09, beats on revs; guides Q3 EPS below consensus, revs below consensus

  • Twist Bioscience (TWST) beats by $0.23, beats on revs; raises FY22 revenue guidance above consensus

  • Universal Display (OLED) misses by $0.18, misses on revs; guides FY22 revs below consensus

  • US Cellular (USM) misses by $0.06, reports revs in-line; reaffirms FY22 guidance

  • Virgin Galactic (SPCE) misses by $0.07, beats on revs; plans commercial service to launch in Q2 2023

  • Wabtec (WAB) beats by $0.01, reports revs in-line; guides FY22 EPS in-line, revs in-line

  • Warner Bros. Discovery (WBD) reports Q2 (Jun) results; sees FY22 adjusted EBITDA of $9.0-$9.5 bln vs. prior guidance of $10 bln

  • WideOpenWest (WOW) reports Q2 (Jun) results, revs in-line; guides Q3 revs below consensus; guides FY22 revs below consensus

  • WW (WW) misses by $0.43, misses on revs; guides FY22 EPS in-line, revs below consensus

  • XPO Logistics (XPO) beats by $0.30, beats on revs; raises FY22 EPS, adjusted EBITDA, free cash flow guidance

  • Yelp (YELP) beats by $0.12, beats on revs; guides FY22 revs above consensus

  • Zillow (ZG) beats by $0.13, beats on revs; guides Q3 revs and EBITDA below consensus

  • General News:

  • President Biden issues statement on the Inflation Reduction Act

  • Senator Kyrsten Sinema (D-AZ) will vote to move forward on Inflation Reduction Act (healthcare, climate, tax increase bill) this weekend. The new tax on carried interest will be removed and companies will be allowed to deduct depreciated assets under 15% minimum tax. A new excise tax on stock buybacks will be added to the legislation, according to CNN

  • House Speaker Nancy Pelosi says US will not allow China to isolate Taiwan, according to the Wall Street Journal

  • China will suspend cooperation with US on some issues (climate change and drugs) following House Speaker Nancy Pelosi's trip to Taiwan; China will put sanctions on Ms. Pelosi and her family - CNBC

  • 3D Systems (DDD) appoints Michael Turner as CFO

  • Abbott Labs (ABT) and WW International announce a strategic partnership that will help people living with diabetes better understand and manage their diabetes and weight

  • ACADIA Pharmaceuticals (ACAD) receives Complete Response Letter from FDA for Pimavanserin

  • AstraZeneca (AZN): Calquence tablet formulation approved in the US across current indications

  • Bank of Montreal (BMO) expands presence in Japan with securities license

  • Custom Truck One Source (CTOS) announces that the Company's Board of Directors has appointed Christopher J. Eperjesy to serve as Chief Financial Officer, effective August 15, 2022

  • Didi (DIDIY) is concerned about retribution from Chinese regulators, according to Financial Times

  • Floor & Decor (FND) announces that Trevor Lang, Executive Vice President and Chief Financial Officer, will be promoted to the role of President

  • General Dynamics' (GD) subsidiary awarded $890 mln and $535 mln modifications to previously awarded U.S. Navy contracts

  • Genmab (GMAB) and BioNTech (BNTX) expand global strategic collaboration to develop and commercialize novel immunotherapy candidates

  • Health Catalyst (HCAT) announces that its board of directors approved a share repurchase program with authorization to purchase up to $40 mln of its Common Stock, effective immediately

  • Jamf Holding (JAMF) appoints Chief Accounting Officer Ian Goodkind as CFO effective September 1

  • JELD-WEN (JELD) accepted the resignation of Gary S. Michel as chair and CEO

  • Neurocrine Biosciences (NBIX): Sosei Heptares' oral, selective M4 receptor agonist advancing into Phase 2 clinical development under multi-program collaboration with Neurocrine Biosciences

  • New Relic (NEWR) appoints David Barter as CFO

  • Nuvalent (NUVL) Presents New Preclinical Data Supporting Potential Best-in-Class Profile for ALK-Selective Inhibitor NVL-655 at IASLC 2022 World Conference on Lung Cancer Annual Meeting

  • TC Energy (TRP) and the CFE, Mexico's state-owned electric utility, have agreed to forge a strategic alliance to accelerate the development of natural gas infrastructure in the central and southeast regions of Mexico

  • Tesla (TSLA) investors approve stock split, according to Bloomberg

  • Tesla (TSLA) CEO Elon Musk said at shareholder meeting that stock buyback is on the table; he believes US will have a "mild" recession

  • Universal Display (OLED) appoints Brian Millard as CFO to replace Sidney Rosenblatt who is retiring

  • Warner Bros. Discovery (WBD): HBO Max and Discovery Plus reported to be replaced next year by a new combined streaming service, according to The Verge

  • XPO Logistics (XPO) announced that chief customer officer Mario Harik will succeed Brad Jacobs as CEO and join the board

  • Zillow (ZG) and Opendoor (OPEN) announced a multi-year partnership that will allow home sellers on the Zillow platform to request an Opendoor offer to sell their home

  • M&A:

  • Atlas Corp (ATCO) receives "Take Private" proposal for $14.45 per share

  • Dr. Reddy (RDY) among companies interested in acquisition of Athenex (ATNX), according to Economic Times

  • Syndicate

  • AMC Entertainment (AMC) files mixed securities shelf offering by the Co and/or selling stockholders

  • Exelon (EXC) commences $500 mln common stock offering

  • Deciphera Pharmaceuticals (DCPH) files $300 mln mixed securities offering

  • Sana Biotechnology (SANA) files mixed securities shelf offering

  • SandRidge Energy (SD) files $500 mln mixed securities shelf offering

  • Thryv (THRY) files mixed securites shelf offering

  • TransMedics Group (TMDX) prices offering of 3.25 mln shares of common stock at $40.00 per share

  • TriplePoint Venture Growth (TPVG) prices offering of 3.75 mln shares of common stock at $13.75 per share

  • IPOs:

  • Expected to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • ATCO +22%, ACMR +19.3%, NET +18.1%, PGNY+16.3%, YELP +14.2%, FUBO +12.8%, REZI +12%, DASH +11.6%, DVAX +11.2%, TEAM +9.8%, PCTY+8.2%, LYFT +7.8%, FND +7.1%, EXPE +7%, CVNA+7%, CLFD +6.8%, CYRX +6.4%, CDXS +6.1%, TRIP+5.9%, CHGG +5.5%, MDRX +5.2%, GDYN +5%, AL+5%, PLYA +4.9%, BHF +4.7%, CWK +4.2%, OPEN+3.8%, JAMF +3.7%, NEWR +3.6%, THRY +3.5%, LGF.A +3.5%, PODD +3.5%, HRT +3.4%, PEN +3.4%, MNRL +3.3%, FIGS +3.3%, EOG +3.2%, ATSG +3.1%, LPRO +3%, CDNA +2.9%, CTVA +2.8%, VLRS +2.7%, AMN +2.5%, AMH +2.5%, TDC +2.5%, CLNE +2.4%, IRTC +2.3%, ENV +2.2%, ERF +2.1%, SYNA +2.1%, OPK +2.1%, CTOS +2%, AU +2%, GD +1.9%, STEM+1.9%, ELY +1.9%, GTN +1.9%, SI +1.8%, XPO +1.8%, SU +1.8%, AES +1.5%, BOOM +1.4%, HUBS +1.3%, PBA +1.1%, ED +1.1%, DUOL +1.1%, NBIX +1.1%, HIVE +1%, MWA +1%

  • Gapping down:

  • DOCS -18.7%, BL -18.6%, DCPH -12.6%, SPCE -12%, ACAD -10.4%, WBD -10.2%, FNKO -9.7%, RKT-8.9%, HCAT -8.9%, BGS -8.7%, TWLO -8.7%, PTCT-8.6%, AMC -8.3%, SEM -7.9%, POWI -7.2%, MTW-7.2%, MNTV -7%, RAMP -7%, NSTG -6.8%, TPVG-6.7%, WW -6.7%, SQ -6.7%, DH -6.6%, PRCT -5.9%, IOVA -5.5%, CHUY -5.2%, OLED -5.1%, RLJ -5%, POST -5%, MRVI -4.9%, GRWG -4.8%, CABO -4.8%, OEC -4.4%, BYND -4.4%, NLOK -4.1%, CELH -4%, KKR -3.5%, NKTR -3.4%, AEE -3.3%, FRG -3.3%, TMST -3.2%, BRBR -3.2%, ZG -3%, MNST -3%, LOCO-2.9%, SANA -2.8%, XRAY -2.8%, CMBM -2.6%, LU-2.4%, LYEL -2.3%, KTOS -2.3%, SDGR -2.1%, GH-2.1%, TRP -2%, CRSR -2%, CMP -2%, BIGC -1.9%, GDOT -1.9%, GMED -1.9%, APPN -1.8%, QDEL-1.8%, APO -1.7%, DBX -1.7%, BORR -1.6%, SGMO-1.5%, VTR -1.5%, ROVR -1.3%, RDFN -1.2%, FLGT-1.2%, SD -1%, LRN -1%, PRLB -1%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • 8x8 (EGHT) upgraded to Buy from Hold at Craig Hallum

  • Allegheny Tech (ATI) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $33

  • Omega Health (OHI) upgraded to Buy from Underperform at BofA Securities; tgt raised to $35

  • Rhythm Pharmaceuticals (RYTM) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $20

  • Downgrades:

  • 8x8 (EGHT) downgraded to Perform from Outperform at Oppenheimer

  • Commscope (COMM) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $11

  • Compugen (CGEN) downgraded to Hold from Buy at Jefferies; tgt $2

  • Doximity (DOCS) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $29

  • Duke Energy (DUK) downgraded to Neutral from Outperform at Credit Suisse; tgt raised to $114

  • Enovix (ENVX) initiated with an Overweight at JP Morgan; tgt $20

  • Fisker (FSR) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $10

  • Health Catalyst (HCAT) downgraded to Hold from Buy at Stifel; tgt lowered to $16

  • Health Catalyst (HCAT) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $16

  • Ingersoll-Rand (IR) downgraded to Hold from Buy at Deutsche Bank; tgt raised to $52

  • Itron (ITRI) downgraded to Equal-Weight from Overweight at Stephens; tgt lowered to $55

  • Open Lending (LPRO) downgraded to Equal-Weight from Overweight at Stephens; tgt lowered to $13

  • Organon (OGN) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $37

  • Playtika (PLTK) downgraded to Neutral from Buy at MKM Partners; tgt lowered to $13.50

  • Others:

  • Array Tech (ARRY) initiated with an Overweight at Barclays; tgt $20

  • Enphase Energy (ENPH) initiated with an Equal Weight at Barclays; tgt $292

  • GlaxoSmithKline (GSK) resumed with an Equal-Weight at Morgan Stanley

  • Sunnova Energy (NOVA) initiated with an Overweight at Barclays; tgt $35

  • Sunrun (RUN) initiated with an Overweight at Barclays; tgt $46

Upcoming Events:

  • Econ Data:

  • 08:30 ET: Nonfarm Payrolls for July (Briefing.comConsensus 250K; Prior 372K)

  • 08:30 ET: Nonfarm Private Payrolls for July (Briefing.comConsensus 200K; Prior 381K)

  • 08:30 ET: Avg. Hourly Earnings for July (Briefing.comConsensus 0.3%; Prior 0.3%)

  • 08:30 ET: Unemployment Rate for July (Briefing.comConsensus 3.6%; Prior 3.6%)

  • 08:30 ET: Average Workweek for July (Briefing.comConsensus 34.5; Prior 34.5)

  • 15:00 ET: Consumer Credit for June (Briefing.comConsensus -$24.7B; Prior $22.3B)

  • 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 +0.9%, Hang Seng +0.1%, Shanghai Composite +1.2%

Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Prime Minister Kishida called on China to stop its military drills around Taiwan. The approval rating of South Korea's President Yoon fell to 24% from 28%. The Reserve Bank of Australia expects above-target inflation to continue through 2023. The Reserve Bank of India raised its repurchase rate by 50 bps to 5.40% against expectations for a 35-bps increase. RBI Governor Das said that India's economy is impacted by the global situation, but fundamentals are strong and resilient.

  • In economic data:

  • Japan's June Household Spending 1.5% m/m (expected 0.2%; last -1.9%); 3.5% yr/yr (expected 1.5%; last -0.5%). June overtime pay 5.8% yr/yr (last 5.5%). June Leading Index -0.6% m/m (last -1.7%) and Coincident Indicator 4.1% m/m (last -1.9%)

  • South Korea's June Current Account surplus $5.61 bln (last surplus of $3.86 bln)

  • Australia's July AIG Services Index 51.7 (last 48.8)

  • Singapore's June Retail Sales -1.4% m/m (last 1.8%); 14.8% yr/yr (last 17.8%)

---Equity Markets---

  • Japan's Nikkei: +0.9% (+1.4% for the week)

  • Hong Kong's Hang Seng: +0.1% (+0.2% for the week)

  • China's Shanghai Composite: +1.2% (-0.8% for the week)

  • India's Sensex: +0.2% (+1.4% for the week)

  • South Korea's Kospi: +0.7% (+1.6% for the week)

  • Australia's ASX All Ordinaries: +0.6% (+1.1% for the week)

---FX---

  • USD/JPY: +0.1% to 133.13

  • USD/CNH: +0.1% to 6.7529

  • USD/INR: +0.1% to 79.22

Europe: DAX UNCH, FTSE -0.2%, CAC -0.5%

Major European indices trade on a modestly lower note while Spain's IBEX (+0.2%) outperforms. Germany, France, and Spain reported better than expected Industrial Production for June while Italy missed estimates. The U.K.'s Halifax House Price Index recorded its first m/m decrease in 13 months amid growing expectations for a recession in the U.K. Bank of England Governor Bailey said that he intends to serve the remainder of his term, which ends in 2028, regardless of who becomes the next prime minister.

  • In economic data:

  • Germany's June Industrial Production 0.4% m/m (expected -0.3%; last -0.1%)

  • U.K.'s July Halifax House Price Index -0.1% m/m (expected 1.2%; last 1.4%); 11.8% yr/yr (last 12.5%)

  • France's June Industrial Production 1.4% m/m (expected -0.2%; last 0.2%), June trade deficit EUR13.10 bln (expected deficit of EUR12.60 bln; last deficit of EUR12.90 bln), and Q2 nonfarm payrolls 0.5% qtr/qtr (last 0.3%)

  • Italy's June Industrial Production -2.1% m/m (expected -0.2%; last -1.1%); -1.2% yr/yr (expected 4.0%; last 3.4%)

  • Spain's June Industrial Production 7.0% yr/yr (expected 3.4%; last 4.5%)

---Equity Markets---

  • STOXX Europe 600: -0.3% (-0.1% week-to-date)

  • Germany's DAX: UNCH (+1.3% week-to-date)

  • U.K.'s FTSE 100: -0.2% (+0.2% week-to-date)

  • France's CAC 40: -0.5% (+0.5% week-to-date)

  • Italy's FTSE MIB: -0.1% (+0.9% week-to-date) 

  • Spain's IBEX 35: +0.2% (+0.2% week-to-date)

---FX---

  • EUR/USD: -0.1% to 1.0233

  • GBP/USD: -0.1% to 1.2142

  • USD/CHF: +0.1% to 0.9557


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