The S&P 500 futures are down 5 points and are trading 0.1% below fair value. The Nasdaq 100 futures are down 37 points and are trading 0.3% below fair value. The Dow Jones Industrial Average futures are up 1 point and are trading roughly in line with fair value.
Equity futures point to a lower open after the holiday weekend. Some mega cap stocks sport pre-open losses, which is limiting the broader market, along with rising market rates. The 2-yr yield is up four basis points to 4.92% and the 10-yr note yield is up five basis points to 4.22%.
Goldman Sachs lowered its U.S. recession probability to 15% from 20%.
The Reserve Bank of Australia left its cash rate at 4.10%, as expected.
China's Caixin Services PMI decelerated again in August, coming in at its lowest level of the year, while Australia's Services PMI remained in contraction for the second consecutive month. Elsewhere, eurozone's final Services PMI readings for August confirmed a renewed contraction in activity.
Today's U.S. economic data is limited to the July Factory Orders report at 10:00 a.m. ET.
In corporate news:
Oracle (ORCL 123.08, +2.15, +1.8%): upgraded to Overweight from Equal Weight at Barclays
American Express (AXP 160.45, +0.83, +0.5%): upgraded to Outperform from Sector Perform at RBC Capital Mkts
Blackstone (BX 108.50, +4.01, +3.8%): will replace Lincoln National (LNC) in the S&P 500, effective prior to the open of trading on Monday September 18
AirBnb (ABNB 140.23, +7.54, +5.6%): will replace Newell Brands (NWL) in the S&P 500, effective prior to the open of trading on Monday September 18; NYC struggling with backlog of AirBnb (ABNB) license requests amid new regulations, according to Bloomberg
NextGen Healthcare (NXGN 21.01, +1.68, +8.7%): Thomas Bravo in advanced discussions to purchase NXGN, according to Bloomberg
Walt Disney (DIS 81.50, -0.14, -0.2%): urges Spectrum (CHTR) customers to watch Hulu; says dispute is still ongoing
KLA Corporation (KLAC 505.19, -1.83, -0.4%): announces increase in quarterly dividend level to $1.45/share and $2 billion increase in total share repurchase authorization
Manchester United (MANU 21.20, -2.46, -10.4%): bidders failed to reach asking price, according to Daily Mail
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: -2.1%, China's Shanghai Composite: -0.7%, India's Sensex: +0.2%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: -0.1%.
In economic data:
China's August Services PMI 51.8 (expected 53.6; last 54.1)
Japan's July Household Spending -2.7% m/m (expected 0.7%; last 0.9%); -5.0% yr/yr (expected -2.5%; last -4.2%). August Services PMI 54.3, as expected (last 53.8)
South Korea's August CPI 1.0% m/m (expected 0.3%; last 0.1%); 3.4% yr/yr (expected 2.7%; last 2.3%). Q2 GDP 0.6% qtr/qtr (expected 0.3%; last 0.6%); 0.9% yr/yr, as expected (last 0.9%)
Hong Kong's August Manufacturing PMI 49.8 (last 49.4) o Singapore's July Retail Sales 0.6% m/m (last -0.8%); 1.1% yr/yr (last 1.0%)
India's August Services PMI 60.1 (expected 61.0; last 62.3)
Australia's Q2 Current Account surplus AUD7.7 bln (expected surplus of AUD8.0 bln; last surplus of AUD12.5 bln). August Services PMI 47.8 (expected 46.7; last 47.9)
In news:
China's Caixin Services PMI decelerated again in August, coming in at its lowest level of the year, while Australia's Services PMI remained in contraction for the second consecutive month.
Property names in Hong Kong saw renewed weakness after Monday'srally, which followed reports that China's government will announce additional stimulus measures.
South Korea's August CPI grew 1.0% m/m, its fastest pace since early 2011.
The Reserve Bank of Australia left its cash rate at 4.10%, as expected.
Major European indices trade near their flat lines. STOXX Europe 600: -0.2%, Germany's DAX: -0.2%, U.K.'s FTSE 100: +0.2%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: UNCH.
In economic data:
Eurozone's July PPI -0.5% m/m (expected -0.6%; last -0.4%); -7.6% yr/yr, as expected (last -3.4%). August Services PMI 47.9 (expected 48.3; last 50.9)
Germany's August Services PMI 47.3, as expected (last 52.3)
U.K.'s August Services PMI 49.5 (expected 48.7; last 51.5)
France's August Services PMI 46.0 (expected 46.7; last 47.1)
Italy's August Services PMI 49.8 (expected 50.2; last 51.5)
Spain's August Services PMI 49.3 (expected 51.5; last 52.8)
In news:
Eurozone's final PMI readings for August confirmed a renewed contraction in activity.
Corporate debt issuance has reportedly increased notably in recent days.
European Central Bank policymaker Nagel repeated that inflation remains too high.
The latest Consumer Expectations Survey from the ECB showed that year-ahead inflation expectations remain at 3.4% while the three-year outlook increased to 2.4% from 2.3%.
U.S. equity futures:
S&P 500 Futures -4 @ 4,512
DJIA Futures: +9 @ 34,847
Nasdaq 100 Futures: -37 @ 15,454
Overseas:
Europe: DAX -0.2%, FTSE +0.2%, CAC -0.3%
Asia: Nikkei +0.3%, Hang Seng -2.1%, Shanghai Composite -0.7%
Commodities:
Crude Oil -0.14 @ 85.41
Nat Gas -0.158 @ 2.607
Gold -11.35 @ 1955.75
Silver -0.714 @ 23.848
Copper -0.0273 @ 3.8247
Earnings/Guidance:
Brady (BRC) beats by $0.11, beats on revs; guides FY24 EPS in-line; authorized an additional $100 million of Class A Common Stock for repurchase under the Company's share buyback program
CME Group (CME) reported August 2023 ADV of 24.2 mln contracts, +14% yr/yr
Nomad Foods (NOMD) sees Q3 EPS and revs below consensus; reaffirms FY23 outlook
Novartis AG (NVS): Sandoz publishes supplement to Listing Prospectus including Sandoz H1 2023 financial statements
Trip.comGroup (TCOM) beats on top and bottom lines
UMH Properties (UMH) provides investors with an update on our third quarter 2023 operating results
Warner Bros. Discovery (WBD) expects to discuss impacts of the ongoing WGA and SAG-AFTRA strikes at investor conferences; expecting lower adjusted EBITDA for the full year
Xylem (XYL) reaffirms FY23 outlook
News:
North Korean leader Kim Jong-un will discuss possibility of supplying weapons to Russia, according to the New York Times
President Biden and Donald Trump are tied at 46% in 2024 election polling as 58% of voters believe economy had gotten worse over last 2 years, including large majorities of independents, according to the Wall Street Journal
Chinese developer Country Garden Holdings avoided default narrowly, according to the Wall Street Journal
China to launch new $40 bln fund to boost chip industry, according to Reuters
Russia will not rejoin Ukraine grain deal until demands are met, according to the Wall Street Journal
UAW strike seems more likely as automakers have two weeks to negotiate contract, according to the New York Times
AirBnb (ABNB): NYC struggling with backlog of AirBnb license requests amid new regulations, according to Bloomberg
Alibaba (BABA) cloud division wants to raise $3 bln from state owned enterprise, according to Bloomberg
Ardmore Shipping (ASC) authorized a new Share Repurchase Plan, expanding and replacing the Company's earlier plan which expires on September 30, 2023
AstraZeneca (AZN) reports Calquence approved in China for chronic lymphocytic leukaemia
Autolus Therapeutics (AUTL) announces data from AUTO1/22 trial in pediatric Acute Lymphoblastic Leukemia published in the journal Blood
Biohaven (BHVN) Announces Positive Data from its Exploratory Electroencephalogram (EEG) Biomarker Study of BHV-7000, Completion of Once-Daily Formulation Development, and Plan to Initiate Phase 3 Pivotal Studies
Brady (BRC) raises annual dividend to $0.94 per share from $0.92 per share
Brainsway (BWAY) forges strategic partnership with treatment provider in Northeast U.S.
Bristol-Myers (BMY): Zenas BioPharma announces strategic license and collaboration agreement with BMY to develop and commercialize novel bi-functional antibody obexelimab in Japan, South Korea, Taiwan, Singapore, Hong Kong and Australia
Cameco (CCJ) reports market update regarding challenges at the Cigar Lake mine and Key Lake mill impacting 2023 production forecast
Chevron (CVX) liquified natural gas workers in Australia plan two week strike, according to Reuters
Corp Office Props (OFC) rebrands to COPT Defense Properties
CytoSorbents (CTSO) CFO Alexander D'Amico has resigned
Deutsche Bank (DB): German regulators looking at Deutsche Bank over software issues at its retail unit Postbank, according to Bloomberg
enCore Energy (EU) provides update on the South Texas Alta Mesa ISR Uranium Central Processing Plant and Wellfield
Fate Therapeutics (FATE) issued an update on its litigation proceedings against Shoreline Biosciences
Fortuna (FSM) intersects 1,299 g/t Ag Eq over a true width of 9.9 meters at the San Jose Mine, Mexico
General Motors (GM): NLRB will investigate if General Motors and Stellantis (STLA) negotiated in good faith, according to Reuters
Green Thumb (GTBIF) authorized the Company to spend up to USD $50 million for the repurchase program
Illumina (ILMN) names Jacob Thaysen, Ph.D. as CEO effective Sept. 25, 2023
indie Semiconductor (INDI) expands operations to include a quality lab facility at its engineering center in Germany
Insmed (INSM) announces positive topline results from Phase 3 ARISE study of arikayce (amikacin liposome inhalation suspension) in patients with ntm lung disease caused by MAC
Intel (INTC) and Tower Semi (TSEM) announce foundry service agreement
Invivyd (IVVD) announces the appointment of William Duke as Chief Financial Officer
Johnson & Johnson (JNJ): Addex Therapeutics reports Addex ADX71149 Phase 2 Epilepsy study expected to readout data in Q2 2024
KLA Corporation (KLAC) announces increase in quarterly dividend level to $1.45/share and $2 billion increase in total share repurchase authorization
Krystal Biotech (KRYS) receives Orphan Drug Designation for KB408 for the treatment of Alpha-1 Antitrypsin Deficiency
National Grid (NGG) submits "Future Grid" plan to empower Massachusetts' smarter, stronger, cleaner and more equitable energy future
New Pacific Metals (NEWP) Reports Inaugural Resource Estimate for the Carangas Project
Nuvalent (NUVL) Initiates the Phase 2 Portion of ARROS-1 Clinical Trial for Patients with ROS1-Positive NSCLC and other Solid Tumors
Qualcomm (QCOM) to supply BMW (BMWYY) and Mercedes (MBGYY) with chips, according to Reuters
Rallybio (RLYB) presents Phase 1 single ascending dose data for RLYB116, an innovative subcutaneously injected inhibitor of complement component 5
Seagen (SGEN) and Genmab (GMAB) announce TIVDAK (tisotumab vedotin-tftv) improved overall survival in patients with recurrent or metastatic cervical cancer compared with chemotherapy alone
Spotify's (SPOT) podcast investments haven't paid off, according to the Wall Street Journal
Tesla (TSLA) is securing millions in federal grants for its electric vehicle charging infrastructure, according to the Wall Street Journal
Tesla (TSLA) China manufactured deliveries rise 9.1% in August, according to Reuters
Trivago (TRVG) announcing a renewed focus on its brand marketing strategy; plans to issue a special one-time extraordinary dividend; no longer expects to exceed adjusted EBITDA of 70 million in 2023
uniQure (QURE) announces that the U.S. Food and Drug Administration has cleared the Investigational New Drug application for AMT-260
Vale S.A. (VALE) confirms Samarco's Judicial Reorganization Plan
Verisk Analytics (VRSK) estimates industry insured losses from Hurricane Idalia will range from $2.5-4 bln
Viatris (VTRS) receives FDA Tentative approval of a Paediatric Formulation of Abacavir (ABC)/Dolutegravir (DTG)/Lamivudine (3TC)
Walt Disney (DIS) urges Spectrum (CHTR) customers to watch Hulu; says dispute is still ongoing
Wave Life Sciences (WVE) announces the submission of its first clinical trial application for WVE-006 in alpha-1 antitrypsin deficiency
Xenon Pharmaceuticals (XENE) showcases XEN1101 Epilepsy Program at 35th International Epilepsy Congress
Xylem (XYL) announces that President and Chief Executive Officer, Patrick Decker, has announced his plans to retire as CEO at the end of 2023
M&A:
Albemarle (ALB) confirms non-binding agreement to acquire Liontown
Barclays (BCS) mulling stake sale of UK payments unit, according to Reuters
Brunswick (BC) announced the acquisition of Fliteboard; terms not disclosed
Diversified Healthcare Trust (DHC) and Office Properties Income (OPI) trust mutually agree to terminate merger agreement
Dominion Energy (D) announces closure of the sale of its 50% noncontrolling limited partnership interest in Cove Point LNG, LP, to Berkshire Hathaway Energy (BRKB) for $3.3 billion
First Advantage Corp. (FA) to acquire Infinite ID for $41 mln in cash
HollySys (HOLI) receives notices of intention to request Special Meeting of Shareholders and additionally an unsolicited offer to acquire the company
Manchester United (MANU) bidders failed to reach asking price, according to Daily Mail
Nestle (NSRGY) divests its Palforzia business
NextGen Healthcare (NXGN): Thomas Bravo in advanced discussions to purchase NXGN, according to Bloomberg
Pennant Group (PNTG) acquires southern Arizona hospice provider; financial terms were not disclosed
Petrobras (PBR) informs about asset divestments; signs agreement on biofuels
Timken (TKR) has acquired Des-Case Corp., a Nashville, Tenn.-based manufacturer of specialty filtration products for industrial lubricants
Tredegar (TG) to sell its Terphane flexible packaging films business to Oben Group for $116 mln
Tremor (TRMR) Board notes the recent press speculation and confirms that it is not currently in a sale process
Viper Energy Partners (VNOM) acquires certain mineral and royalty interests from affiliates of Warwick Capital Partners and GRP Energy Capital in exchange for ~9.02 mln Viper common units and $750 mln of cash
Western Midstream (WES) to acquire Meritage Midstream Services II, LLC in an all-cash transaction for a purchase price of $885 million
Syndicate:
ALX Oncology (ALXO) files for 18,446,936 shares of common stock by selling shareholders
Can-Fite BioPharma (CANF) files for $100 mln mixed securities shelf offering
Centerspace (CSR) files mixed shelf securities offering
Empire Petroleum (EP) files for $350 mln mixed securities shelf offering
Intuit (INTU) files mixed securities shelf offering
Ramaco Resources (METC) files for $400 mln mixed securities shelf offering
REGENXBIO (RGNX) entered into a $150 mln ATM Equity Offering
Transocean (RIG) files for 82,596,498 shares of common stock by selling shareholder
IPOs:
Arm Holdings (ARM): Nvidia (NVDA) and Apple (AAPL) will support Arm Holdings IPO, according to Bloomberg
Arm Holdings (ARM) launches roadshow for the initial public offering of American depositary shares representing its ordinary shares
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
NXGN +11.2%, DHC +10.3%, TRVG +6.7%, ABNB +5.2%, BX +3.8%, XENE +3.6%, GNL+2.9%, VTRS +2.7%, CIFR +2%, HOLI +1.7%, FATE +0.7%, SGEN +0.5%
Gapping down:
MANU -9.1%, TCOM -4.8%, ALXO -2.7%, CCJ-2%, RPD -2%, LNC -1.7%, CANF -1.4%, VNOM -1.3%, PBR -1.2%, NWL -1%, RIG-0.7%, NVS -0.6%, VALE -0.5%, ALB -0.5%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
AllianceBernstein (AB) upgraded to Buy from Neutral at BofA Securities; tgt raised to $47
American Express (AXP) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $200
Centene (CNC) upgraded to Neutral from Underperform at BofA Securities; tgt lowered to $72
Stryker (SYK) upgraded to Buy from Neutral at BofA Securities; tgt raised to $315
Woodward (WWD) upgraded to Outperform from Market Perform at TD Cowen; tgt raised to $160
Downgrades:
Agiliti (AGTI) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $11
Eos Energy (EOSE) downgraded to Neutral from Buy at Seaport Research Partners
Synchrony Financial (SYF) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $37
Others:
Automatic Data (ADP) initiated with a Sector Perform at RBC Capital Mkts; tgt $267
Braze (BRZE) initiated with a Buy at Citigroup; tgt $60
Cabaletta Bio (CABA) initiated with a Buy at Citigroup; tgt $22
Diamond Offshore (DO) initiated with a Buy at BTIG Research; tgt $20
HubSpot (HUBS) initiated with a Buy at Citigroup; tgt $695
Mid-America Aptmt (MAA) initiated with a Neutral at BofA Securities; tgt $158
Paychex (PAYX) initiated with a Sector Perform at RBC Capital Mkts; tgt $130
Pyxis Oncology (PYXS) initiated with an Outperform at RBC Capital Mkts; tgt $7
Sana Biotechnology (SANA) initiated with a Buy at Citigroup; tgt $8
ZoomInfo (ZI) initiated with a Neutral at Citigroup; tgt $19
Econ Data:
10:00 ET: Factory Orders for July (Briefing.comConsensus -2.4%; Prior 2.3%)
Earnings:
Tuesday (Sep 5)
Morning: BRC, CRMT
Afternoon: ASAN, ZS, GTLB, AVAV
Wednesday (Sep 6)
Morning: PLAB, CNM
Afternoon: INTA, AEO, PATH, SPWH, AI, DSGX, PHR, CHPT, CXM, BASE, CVGW, PLAY, YEXT, CURV, GME, VRNT
Thursday (Sep 7)
Morning: SAIC, ABM, GIII, TTC, DOOO
Afternoon: GWRE, ZUMZ, SMAR, SMTC, BRZE, DOCU, SWBI
Friday (Sep 8)
Morning: KR
Asia & Europe detail:
Asia: Nikkei +0.3%, Hang Seng -2.1%, Shanghai Composite -0.7%
Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. China's Caixin Services PMI decelerated again in August, coming in at its lowest level of the year, while Australia's Services PMI remained in contraction for the second consecutive month. Property names in Hong Kong saw renewed weakness after Monday'srally, which followed reports that China's government will announce additional stimulus measures. South Korea's August CPI grew 1.0% m/m, its fastest pace since early 2011. The Reserve Bank of Australia left its cash rate at 4.10%, as expected.
In economic data:
China's August Services PMI 51.8 (expected 53.6; last 54.1)
Japan's July Household Spending -2.7% m/m (expected 0.7%; last 0.9%); -5.0% yr/yr (expected -2.5%; last -4.2%). August Services PMI 54.3, as expected (last 53.8)
South Korea's August CPI 1.0% m/m (expected 0.3%; last 0.1%); 3.4% yr/yr (expected 2.7%; last 2.3%). Q2 GDP 0.6% qtr/qtr (expected 0.3%; last 0.6%); 0.9% yr/yr, as expected (last 0.9%)
Hong Kong's August Manufacturing PMI 49.8 (last 49.4) o Singapore's July Retail Sales 0.6% m/m (last -0.8%); 1.1% yr/yr (last 1.0%)
India's August Services PMI 60.1 (expected 61.0; last 62.3)
Australia's Q2 Current Account surplus AUD7.7 bln (expected surplus of AUD8.0 bln; last surplus of AUD12.5 bln). August Services PMI 47.8 (expected 46.7; last 47.9)
---Equity Markets---
Japan's Nikkei: +0.3%
Hong Kong's Hang Seng: -2.1%
China's Shanghai Composite: -0.7%
India's Sensex: +0.2%
South Korea's Kospi: -0.1%
Australia's ASX All Ordinaries: -0.1%
---FX---
USD/JPY: +0.6% to 147.24
USD/CNH: +0.5% to 7.3089
USD/INR: +0.4% to 83.01
Europe: DAX -0.2%, FTSE +0.2%, CAC -0.3%
Major European indices trade near their flat lines. Eurozone's final PMI readings for August confirmed a renewed contraction in activity. Corporate debt issuance has reportedly increased notably in recent days. European Central Bank policymaker Nagel repeated that inflation remains too high. The latest Consumer Expectations Survey from the ECB showed that year-ahead inflation expectations remain at 3.4% while the three-year outlook increased to 2.4% from 2.3%.
In economic data:
Eurozone's July PPI -0.5% m/m (expected -0.6%; last -0.4%); -7.6% yr/yr, as expected (last -3.4%). August Services PMI 47.9 (expected 48.3; last 50.9)
Germany's August Services PMI 47.3, as expected (last 52.3)
U.K.'s August Services PMI 49.5 (expected 48.7; last 51.5)
France's August Services PMI 46.0 (expected 46.7; last 47.1)
Italy's August Services PMI 49.8 (expected 50.2; last 51.5)
Spain's August Services PMI 49.3 (expected 51.5; last 52.8)
---Equity Markets---
STOXX Europe 600: -0.2%
Germany's DAX: -0.2%
U.K.'s FTSE 100: +0.2%
France's CAC 40: -0.3%
Italy's FTSE MIB: -0.1%
Spain's IBEX 35: UNCH
---FX---
EUR/USD: -0.6% to 1.0730
GBP/USD: -0.7% to 1.2540
USD/CHF: +0.6% to 0.8891
Comentarios