top of page
Search

07/12/22 Briefing


Futures dipping lower as growth concerns continue to weighThe S&P 500 futures are down 27 points and are trading 0.7% below fair value. The Nasdaq 100 futures are down 128 points and are trading 1.0% below fair value. The Dow Jones Industrial Average futures are down 153 points and are trading 0.4% below fair value.Equity futures are sporting losses after yesterday's retreat. Global growth concerns are still at the forefront after China reported bigger than expected decreases in imports and exports for November.Mega caps are trading down in premarket action, with acute weakness in Tesla (TSLA) following reports the company is offering more subsidies to Chinese buyers. China removed most coronavirus testing and quarantine requirements and reduced authority for local officials to shutdown city blocks, according to The Wall Street Journal.Democrat Raphael Warnock won the run off Senate election in Georgia, giving Democrats a 51-49 advantage in the Senate. The weekly MBA Mortgage Application Index fell 1.9% versus a 0.8% decline last week. Other economic data out today includes:8:30 a.m. ET: Revised Q3 Productivity (Briefing.com consensus 0.3%; prior 0.3%) and Unit Labor Costs (Briefing.com consensus 3.5%; prior 3.5%)10:30 a.m. ET: Weekly EIA Crude Oil Inventories (prior -12.58 million barrels)3:00 p.m. ET: October Consumer Credit (Briefing.com consensus $26.5 billion; prior $25.0 billion)In corporate news:MongoDB (MDB 182.00, +37.31, +25.8%): beats by $0.40, beats on revs; guides Q4 EPS above consensus, revs above consensusAirbnb (ABNB 89.10, -4.02, -4.3%) : downgraded to Underweight from Equal-Weight at Morgan StanleyTesla (TSLA 174.77, -5.05, -2.8%): offers China buyers more subsidies, according to Bloomberg; Analyst Toni Sacconaghi reiterated his underperform ratingMastercard (MA 347.00, -0.53, -0.2%): announces 16% increase in quarterly dividend to $0.57/share; also announces $9.0 bln share repurchase programToll Brothers (TOL 45.70, -0.24, -0.5%): beats by $1.69, beats on revs, guides for FY23 deliveries of 8,000-9,000Lowe's (LOW 201.01, -0.90, -0.5%): reaffirms FY outlook; announces new $15 bln share repurchase programCampbell Soup (CPB 54.49, +1.50, +2.8%): beats by $0.15, beats on revs; raises FY23 guidanceThor Industries (THO 88.00, +4.00, +4.8%): beats by $0.71, beats on revs; guides FY23 EPS in-line, revs in-lineGuidewire Software (GWRE 59.00, +2.48, +4.4%): beats by $0.27, beats on revs; guides Q2 revs in-line; guides FY23 revs in-lineReviewing overnight developments:Equity indices in the Asia-Pacific region ended the midweek session on a lower note. Japan's Nikkei: -0.7%, Hong Kong's Hang Seng: -3.2%, China's Shanghai Composite: -0.4%, India's Sensex: -0.3%, South Korea's Kospi: -0.4%, Australia's ASX All Ordinaries: -0.9%.In economic data:China's November trade surplus $69.84 bln (expected surplus of $79.05 bln; last surplus of $85.15 bln). November Imports -10.6% yr/yr (expected -5.0%; last -0.7%) and Exports -8.7% yr/yr (expected -3.6%; last -0.3%). November FX Reserves $3.117 trln (expected $3.100 trln; last $3.052 trln)Japan's December Reuters Tankan Index 8 (last 2). October Leading Index 99.0 (expected 98.4; last 98.2) and Coincident Indicator -0.9% m/m (last -0.5%)Australia's Q3 GDP 0.6% qtr/qtr (expected 0.7%; last 0.9%); 5.9% yr/yr (expected 6.2%; last 3.2%). November AIG Services Index 45.6 (last 47.7). October Building Approvals -6.0% m/m, as expected (last -8.1%)In news:China reported a smaller than expected trade surplus for November due to bigger than expected decreases in imports and exports. Reports from China indicate that most coronavirus testing and quarantine requirements have been lifted. Japan's government indicated that it is not ruling out any measures to fund higher defense spending. This follows reports that defense spending will be increased by 50% over the next five years. The Reserve Bank of India raised its repurchase rate by 35 bps to 6.25%, as expected.Major European indices trade in the red. STOXX Europe 600: -0.6%, Germany's DAX: -0.4%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.5%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: -0.6%.In economic data:Eurozone's Q3 GDP 0.3% qtr/qtr (expected 0.2%; last 0.2%); 2.3% yr/yr (expected 2.1%; last 4.2%). Q3 Employment Change 0.3% qtr/qtr (expected 0.2%; last 0.4%); 1.8% yr/yr (expected 1.7%; last 2.7%)Germany's October Industrial Production -0.1% m/m (expected -0.6%; last 1.1%)U.K.'s November Halifax House Price Index -2.3% m/m (expected -0.2%; last -0.4%); 4.7% yr/yr (last 8.2%)France's October trade deficit EUR12.20 bln (expected deficit of EUR16.00 bln; last deficit of EUR17.20 bln). October Current Account deficit EUR3.80 bln (last deficit of EUR7.30 bln)Italy's October Retail Sales -0.4% m/m (expected -0.6%; last 0.5%); 1.3% yr/yr (last 4.0%)Swiss November Unemployment Rate 2.0% (expected 2.1%; last 2.1%)In news:There is growing focus on labor strikes in the U.K. with the British press noting that a million workers are expected to go on strike in December and January. Credit Suisse is offering higher deposit rates to win back clients. Airbus withdrew its commercial aircraft delivery target for 2022. Eurozone inflation expectations for the next 12 months increased to 5.4% from 5.1%, according to an ECB survey. U.S. equity futures:S&P 500 Futures: -25 @ 3,915DJIA Futures: -138 @ 33,458Nasdaq 100 Futures: -119 @ 11,430Overseas:Europe: DAX -0.4%, FTSE UNCH, CAC -0.5%Asia: Nikkei -0.7%, Hang Seng -3.2%, Shanghai Composite -0.4%Commodities:Crude Oil -1.23 @ 75.70Nat Gas -0.104 @ 5.473Gold +10.65 @ 1792Silver +0.286 @ 22.703Copper +0.0150 @ 3.81 Earnings/Guidance:ADMA Biologics ( ADMA▴ 8.83% ) guides Q4 revs above consensusAeroVironment ( AVAV▾ 3.22% ) misses by $0.24, misses on revs; guides FY23 EPS below consensus, revs in-lineCampbell Soup ( CPB▴ 6.02% ) beats by $0.15, beats on revs; raises FY23 guidanceCasey's General ( CASY▴ 7.39% ) beats by $0.54, misses on revs, inside same-store sales +7.9%; raises FY23 inside same-store sales growth to +5-7%Dave & Buster's ( PLAY▾ 7.43% ) reports EPS in-line, beats on revs, pro forma comps of +13.3%; Q4-to-date comps of +3.1%Guidewire Software ( GWRE▴ 6.81% ) beats by $0.27, beats on revs; guides Q2 revs in-line; guides FY23 revs in-lineHealthEquity ( HQY▴ 0.72% ) beats by $0.03, beats on revs; guides FY23 EPS in-line, revs above consensus; guides FY24 revs above consensus Intl Flavors ( IFF▴ 3.00% ) announces long-term strategic & financial vision Lovesac ( LOVE▾ 21.25% ) beats by $0.21, reports revs in-lineLowe's ( LOW▴ 2.47% ) reaffirms FY outlook; announces new $15 bln share repurchase programMobileye Global ( MBLY▴ 5.38% ) reports Q3 results; beats on revs; sees Q4 revs well above consensus MongoDB ( MDB▴ 23.23% ) beats by $0.40, beats on revs; guides Q4 EPS above consensus, revs above consensusOllie's Bargain Outlet ( OLLI▾ 17.47% ) misses by $0.03, misses on revs; guides Q4 EPS below consensus, revs below consensusSentinelOne ( S▾ 0.92% ) beats by $0.06, beats on revs; guides Q4 revs slightly above consensusSmith & Wesson Brands ( SWBI▾ 19.58% ) misses by $0.18, misses on revs; board authorizes dividend Southwest Air ( LUV▾ 4.71% ) in slide presentation sees Q4 operating revenues +13-17% (Capital IQ consensus +15%) over Q4 of 2019; sees Q4 ASMs down 2%; sees ASMs +10% in Q1; sees ASMs of +15% for 2023; currently expects EBIT contribution of $700 mln in 2022 Sprinklr ( CXM▴ 0.12% ) beats by $0.03, reports revs in-line; guides Q4 EPS in-line, revs below consensusStitch Fix ( SFIX▴ 0.54% ) misses by $0.03, reports revs in-line; guides Q2 revs below consensusThor Industries ( THO▾ 4.82% ) beats by $0.71, beats on revs; guides FY23 EPS in-line, revs in-lineToll Brothers ( TOL▴ 7.75% ) beats by $1.69, beats on revs, guides for FY23 deliveries of 8,000-9,000 United Natural Foods ( UNFI▾ 14.79% ) misses by $0.03, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance Vale S.A. ( VALE▾ 3.52% ) gives estimates for 2023 production Wiley ( WLY▾ 5.18% ) reports Q2 (Oct) results, lowers FY23 revs guidance Zuora ( ZUO▾ 20.11% ) beats by $0.04, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus; to cut 11% of workforceNews:China removes most coronavirus testing and quarantine requirements and reduces authority for local officials to shutdown city blocks, according to the Wall Street JournalDemocrat Raphael Warnock wins run off Senate election in Georgia. The Democrats will have a 51-49 advantage in the Senate, according to the New York TimesSenate Minority Leader Mitch McConnell says it is likely Congress will have to pass short term funding bill until early next year, because they are running out of time to agree on full omnibus funding package, according to ReutersUK and US announce new energy partnershipCongress has agreement to remove military coronavirus vaccine mandate as part of defense deal, according to the Wall Street JournalMarijuana banking protection legislation will not be included in defense authorization bill because of Republican criticism, which significantly limits its chances of passage, according to BloombergAltria ( MO▴ 0.35% ): Juul Labs reaches global resolution in US litigationApollo ( APO▾ 2.93% ) and Pimco sign agreement to work together in negotiations with Carvana (CVNA), according to BloombergAxsome Therapeutics ( AXSM▴ 3.85% ) announces that treatment with AUVELITY resulted in rapid, substantial, and durable improvements in cognitive and physical functioning in the EVOLVE open-label trial in major depressive disorder BlackRock ( BLK▾ 0.16% ): Activist investor Bluebell Capital Partners seeks to replace BlackRock CEO Larry Fink, according to ReutersBlackrock ( BLK▾ 0.16% ) has frozen hiring, according to ReutersBlackstone ( BX▾ 1.38% ) credit fund has crossed its withdrawal limit, according to ReutersBoeing ( BA▾ 1.08% ): Congress will not add Boeing 737 Max exemption in defense authorization legislation, according to ReutersButterfly ( BFLY▾ 9.09% ) Announces that Todd Fruchterman will leave his position as CEO and President; Dr. Rothberg to serve as Interim CEO during this time of transitionClean Energy Fuels ( CLNE▾ 1.02% ) announced it is has begun providing renewable natural gas for the Centre County Recycling and Refuse Authority in Bellefonte, PA CoreCivic ( CXW▾ 6.85% ) receives lease termination notice for the California City Correctional Center from the State of California Daktronics ( DAKT▾ 39.16% ) files to delay its 10-Q; pursuing additional liquidity through various means Dana Inc ( DAN▾ 1.27% ) has signed a long-term agreement with Semikron DanfossExact Sciences ( EXAS▾ 0.61% ) Highlights the Impact of Precision Oncology Portfolio on Breast Cancer Treatment with 10 New Data Presentations at SABCS 2022GlaxoSmithKline ( GSK▾ 2.74% ) issues statement regarding Zantac litigationGoldman Sachs ( GS▾ 0.82% ) employees are concerned about annual performance review and potential job cuts, according to the New York PostGranite Constr ( GVA▴ 0.14% ) awarded an ~$14 mln traffic flow improvement project in Santa Barbara, CA by the California Department of TransportationHill International ( HIL0.00% ) awarded contract to provide construction management services to the Saudi Jordanian Fund for Medical Educational Investment CompanyHonda ( HMC▴ 0.63% ): Regulators investigating engine failure for Honda SUVs, according to the Wall Street JournalInvivyd ( IVVD▴ 5.90% ) appoints Jeremy Gowler as COO, effective December 16; promotes Pete Schmidt, M.D. to CMO, effective immediatelyKLA Corporation ( KLAC▴ 1.27% ) announces launch of Axion T2000 X-ray metrology system for advanced memory chip manufacturersMarathon Digital Holdings ( MARA▾ 7.25% ) announces Bitcoin production and mining operation updates for November; produced 472 BTC in the monthMastercard ( MA▾ 0.03% ) announces 16% increase in quarterly dividend to $0.57/share; also announces $9.0 bln share repurchase programMicrosoft ( MSFT▾ 0.31% ) will give Nintendo (NTDOY) access to "Call of Duty" for 10 years if Activision (ATVI) deal is approved, according to BloombergMidland States Bancorp ( MSBI▴ 2.80% ) authorizes $25 mln stock repurchase programMorningstar ( MORN▴ 1.39% ) increases quarterly dividend to $0.375/share from $0.36 and authorizes $500 mln share repurchase program effective Jan 1, 2023Mosaic ( MOS▾ 0.80% ) temporarily curtails production at its Colonsay potash mine in SaskatchewanMSG Entertainment ( MSGE▾ 11.96% ) approves a revised plan for its businesses; exploring spin-off of Live Entertainment business and MSG Networks and Tao Group Hospitality businesses Neurocrine Biosciences ( NBIX▴ 1.08% ) Provides Update on Phase 2 Study of NBI-827104 in Pediatric Patients with Epileptic Encephalopathy with Continuous Spike-and-Wave During SleepPalantir Technologies ( PLTR▴ 1.14% ) and CDC announce five year $443 mln contract PennyMac Mortgage ( PMT▴ 1.36% ) lowers quarterly dividend to $0.40 from $0.47/sharePetrobras ( PBR▾ 0.06% ) provided CEO and METANOR updatesPfizer ( PFE▴ 1.07% ): U.S. FDA accepts for priority review the biologics license application for Pfizer's respiratory syncytial virus vaccine candidate for the prevention of RSV Disease in Older AdultsPinterest ( PINS▾ 0.18% ) announces partnership with Elliott Investment ManagementPrometheus Biosciences ( RXDX▴ 165.67% ) Announces Positive Results for PRA023 in Both ARTEMIS-UC Phase 2 and APOLLO-CD Phase 2a Studies Enabling Pathway to Both First-in-Class and Best-in-Class Anti-TL1A mAb Replimune ( REPL▴ 22.23% ) enters into clinical collaboration agreement with Roche (RHHBY) for the development of RP3 in colorectal cancer and hepatocellular carcinomaReplimune ( REPL▴ 22.23% ) announces an initial data snapshot from the first 75 patients from the anti-PD1 failed cutaneous melanoma cohort of the IGNYTE clinical Southwest Air ( LUV▾ 4.71% ) and the Transport Workers Union Local 557 have reached a Tentative Agreement for more than 200 Flight InstructorsSouthwest Air ( LUV▾ 4.71% ) reinstated and declared a quarterly cash dividend of $.18 per shareState Street ( STT▴ 8.19% ) announces incremental increase of up to $500 mln to existing common share repurchases in the fourth quarter Tesla ( TSLA▾ 3.21% ) offers China buyers more subsidies, according to BloombergTextron ( TXT▾ 1.36% ) awarded $1.36 bln U.S. Army hybrid contract for the development of the Future Long Range Assault Aircraft weapon system Trustmark ( TRMK▴ 2.27% ) authorizes new stock repurchase program up to $50 mln through December 31, 2023 TTM Tech ( TTMI▴ 1.62% ) and Raytheon Missiles & Defense reach multi-year agreement to purchase SPY-6 Radar components; agreement has potential to reach $500 mln over five yearsUber ( UBER▾ 1.93% ) to pay $21 mln for misleading representations about Uber Taxi fares and cancellation feesVor Biopharma ( VOR▴ 41.86% ): First AML patient successfully transplanted with Vor Bio's investigational trem-cel and tolerated MylotargM&A:ARKO Corp. ( ARKO▴ 3.95% ) to acquire assets of WTG Fuels Holdings for ~$140.4 mlnEricsson ( ERIC▾ 0.78% ): Aeris to acquire IoT business from Ericsson Golden Falcon Acquisition Corp ( GFX▴ 0.20% ): MNG Airlines signs agreement to go public on the NYSE through a business combination with Golden Falcon Acquisition Corp.LHC Group ( LHCG▴ 1.56% ) expects the closing of the transactions contemplated by UnitedHealth (UNH) merger agreement to occur in the first quarter of 2023Microsoft ( MSFT▾ 0.31% ) President Brad Smith is planning to meet with Federal Trade Commission (FTC) leadership regarding acquisition of Activision, according to the New York PostSTORE Capital ( STOR▴ 0.38% ) receives CFIUS approval for previously announced acquisition of company by GIC and Oak StreetUFP Industries' ( UFPI▴ 1.99% ) affiliate acquires Titan Corrugated, a manufacturer of corrugated packaging products with TTM sales through October of approximately $46.5 mln; financial details not disclosedSyndicate:ADMA Biologics ( ADMA▴ 8.83% ) announces public offering of common stock; size of offering not disclosed Afya ( AFYA▾ 0.20% ) intends issuance of debentures in Brazilian marketClearfield ( CLFD▾ 6.22% ) prices offering of 1.2 mln shares of common stock at $100.00 per shareCue Biopharma ( CUE▾ 3.96% ) files for 18,376,812 share common stock offering by selling shareholdersHP Inc. ( HPQ▾ 1.70% ) files mixed securities shelf offeringSyndax Pharmaceuticals ( SNDX▾ 9.79% ) prices offering of 6,818,182 shares of common stock at $22.00IPOs:Expect to Price:No IPOs expected.Gapping Up/DownGapping up: MDB +28%, GWRE +4.4%, SFIX +3.3%, PINS +2.9%, MORN +2.8%, IVVD +2.6%, HLF +2.1%, TOL +1.2%, AXON +0.9%, STOR +0.5%, MA +0.5%Gapping down: IBIO -51.3%, AVAV -9.3%, ADMA -8.8%, CLFD -7.1%, SNDX -5%, SWBI -4.8%, NBIX -4.5%, CUE -4%, ZUO -3.9%, PLAY -3.9%, CXM -3.8%, HQY -2.6%, GSK -2.3%, EXAS -2%, AFYA -1.6%, CXW -1.5%, MSGE -1.4%, MOS -1.2% Analyst Research (see Upgrades/Downgrades calendarfor full list):UpgradesMongoDB (MDB) upgraded to Mkt Outperform from Mkt Perform at JMP Securities; tgt $215Downgrades:Airbnb (ABNB) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $80Others:Applied Materials (AMAT) initiated with a Buy at Loop Capital; tgt $125Upcoming Events:Econ Data:07:00 ET: MBA Mortgage Applications Index for Dec 3 (Briefing.com Consensus NA; Prior -0.8%)08:30 ET: Productivity - Rev. for Q3 (Briefing.com Consensus0.3%; Prior 0.3%)08:30 ET: Unit Labor Costs - Rev for Q3 (Briefing.com Consensus 3.5%; Prior 3.5%)10:30 ET: EIA Crude Oil Inventories for Dec 3 (Briefing.com Consensus NA; Prior -$12.58M)15:00 ET: Consumer Credit for Oct (Briefing.com Consensus $26.5B; Prior $25.0B)Earnings:Monday (Dec 5)Morning:  SAICAfternoon: GTLB SUMOTuesday (Dec 6)Morning: AZO CONN BASE SIGAfternoon:  AVAV CASY PLAY GWRE MDB S SWBI CXM SFIX TOL ZUOWednesday (Dec 7)Morning:  ASO BF.B CPB LOVE OLLI THO UNFIAfternoon:  AI DSGX GME GEF HCP OXM SPWH VRNTThursday (Dec 8)Morning: CIEN GMS MOMO KFY MANUAfternoon:  AVGO CHWY COO COST DOCU DOMO LULU PHR RH CURV MTNFriday (Dec 9)  Morning:  LIAsia & Europe detail: Asia: Nikkei -0.7%, Hang Seng -3.2%, Shanghai Composite -0.4%Equity indices in the Asia-Pacific region ended the midweek session on a lower note. China reported a smaller than expected trade surplus for November due to bigger than expected decreases in imports and exports. Reports from China indicate that most coronavirus testing and quarantine requirements have been lifted. Japan's government indicated that it is not ruling out any measures to fund higher defense spending. This follows reports that defense spending will be increased by 50% over the next five years. The Reserve Bank of India raised its repurchase rate by 35 bps to 6.25%, as expected. In economic data: China's November trade surplus $69.84 bln (expected surplus of $79.05 bln; last surplus of $85.15 bln). November Imports -10.6% yr/yr (expected -5.0%; last -0.7%) and Exports -8.7% yr/yr (expected -3.6%; last -0.3%). November FX Reserves $3.117 trln (expected $3.100 trln; last $3.052 trln) Japan's December Reuters Tankan Index 8 (last 2). October Leading Index 99.0 (expected 98.4; last 98.2) and Coincident Indicator -0.9% m/m (last -0.5%) Australia's Q3 GDP 0.6% qtr/qtr (expected 0.7%; last 0.9%); 5.9% yr/yr (expected 6.2%; last 3.2%). November AIG Services Index 45.6 (last 47.7). October Building Approvals -6.0% m/m, as expected (last -8.1%) ---Equity Markets---Japan's Nikkei: -0.7%Hong Kong's Hang Seng: -3.2% China's Shanghai Composite: -0.4% India's Sensex: -0.3% South Korea's Kospi: -0.4% Australia's ASX All Ordinaries: -0.9% ---FX---USD/JPY: +0.4% to 137.61 USD/CNH: UNCH at 6.9773 USD/INR: UNCH at 82.43Europe: DAX -0.4%, FTSE UNCH, CAC -0.5%Major European indices trade in the red. There is growing focus on labor strikes in the U.K. with the British press noting that a million workers are expected to go on strike in December and January. Credit Suisse is offering higher deposit rates to win back clients. Airbus withdrew its commercial aircraft delivery target for 2022. Eurozone inflation expectations for the next 12 months increased to 5.4% from 5.1%, according to an ECB survey. In economic data: Eurozone's Q3 GDP 0.3% qtr/qtr (expected 0.2%; last 0.2%); 2.3% yr/yr (expected 2.1%; last 4.2%). Q3 Employment Change 0.3% qtr/qtr (expected 0.2%; last 0.4%); 1.8% yr/yr (expected 1.7%; last 2.7%) Germany's October Industrial Production -0.1% m/m (expected -0.6%; last 1.1%) U.K.'s November Halifax House Price Index -2.3% m/m (expected -0.2%; last -0.4%); 4.7% yr/yr (last 8.2%) France's October trade deficit EUR12.20 bln (expected deficit of EUR16.00 bln; last deficit of EUR17.20 bln). October Current Account deficit EUR3.80 bln (last deficit of EUR7.30 bln) Italy's October Retail Sales -0.4% m/m (expected -0.6%; last 0.5%); 1.3% yr/yr (last 4.0%) Swiss November Unemployment Rate 2.0% (expected 2.1%; last 2.1%) ---Equity Markets---STOXX Europe 600: -0.6%Germany's DAX: -0.4% U.K.'s FTSE 100: UNCH France's CAC 40: -0.5% Italy's FTSE MIB: UNCH Spain's IBEX 35: -0.6% ---FX--- EUR/USD: +0.3% to 1.0500 GBP/USD: +0.2% to 1.2156 USD/CHF: -0.1% to 0.9412

0 views0 comments

Recent Posts

See All

The S&P 500 futures are down 9 points and are trading 0.2% below fair value. The Nasdaq 100 futures are down 2 points and are trading roughly in line with fair value. The Dow Jones Industrial Average

The S&P 500 futures are down 37 points and are trading 1.0% below fair value. The Nasdaq 100 futures are down 152 points and are trading 1.3% below fair value. The Dow Jones Industrial Average futures

Post: Blog2_Post
bottom of page