The S&P 500 futures are up 16 points and are trading 0.4% above fair value. The Nasdaq 100 futures are up 57 points and are 0.3% above fair value. The Dow Jones Industrial Average futures are up 112 points and are trading 0.5% above fair value.
Futures for the major indices have a positive bias this morning with the S&P 500 on track for a fourth consecutive winning week.
The House will vote on the Inflation Reduction Act today where it's expected to pass. Also, the CDC issued new guidelines that remove the quarantine recommendation for people exposed to Covid-19.
There is weakness in a number of Chinese ADRs following the news that several companies, China Life Insurance (LFC), PetroChina (PTR), China Petroleum (Sinopec) (SNP), Alum. Corp China (ACH), and Shanghai Petrochemical (SHI), plan to delist at the NYSE.
Energy complex futures are moving lower this morning. WTI crude oil futures are down 1.5% to $92.93/bbl. Natural gas futures are down 3.2% to $8.59/mmbtu.
The 2-yr note yield is unchanged at 3.19% while the 10-yr note yield is down two basis points to 2.87%.
In corporate news:
Toast (TOST 20.51, +2.36, +13.00%): beats by $0.01, beats on revs; guides Q3 revs above consensus; raises FY22 revs guidance above consensus
Illumina (ILMN 193.55, -33.89, -14.90%): misses by $0.07, misses on revs; cuts FY22 EPS, revs expectations
Rivian Automotive (RIVN 38.64, -0.31, -0.80%): beats by $0.01, beats on revs, reports R1 preorder backlog of 98,000 vehicles; Reaffirms 2022 production target of 25K vehicles, lowers capital expenditure guidance
Olo Inc. (OLO 8.77, -4.22, -32.49%): beats by $0.01, reports revs in-line; guides Q3 revs below consensus; lowers FY22 revs below consensus
Payoneer (PAYO 6.79, +1.11, +19.54%): beats by $0.07, beats on revs; guides FY22 revs above consensus
Alibaba (BABA 92.07, -2.80, -2.95%): Lower in response to news that several Chinese companies announced plans to delist at the NYSE.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +2.6% (+1.3% for the week), Hong Kong's Hang Seng: +0.5% (-0.1% for the week), China's Shanghai Composite: -0.2% (+1.6% for the week), India's Sensex: +0.2% (+1.8% for the week), South Korea's Kospi: +0.2% (+1.5% for the week), Australia's ASX All Ordinaries: -0.5% (+0.5% for the week).
In economic data:
China's July New Loans CNY679.0 bln (expected CNY1.10 trln; last CNY2.81 trln) and July Total Social Financing CNY756.1 bln (expected CNY1.30 trln; last CNY5.17 trln)
South Korea's July Import Price Index 27.9% yr/yr (last 33.6%) and Export Price Index 16.3% yr/yr (last 23.7%)
Hong Kong's Q2 GDP 1.0% qtr/qtr (last -0.9%); -1.3% yr/yr (last -1.4%)
New Zealand's July FPI 2.1% m/m (last 1.2%) and July Business NZ PMI 52.7 (last 50.0)
In news:
Japan's Prime Minister Kishida said that his government will announce more measures to deal with high energy and food prices.
Fitch noted that China's money market fund became the world's second largest money market fund in Q2, overtaking Europe.
New Zealand's Manufacturing PMI expanded for the 12th consecutive month in July.
Major European indices trade near their flat lines. STOXX Europe 600: -0.1% (+0.9% week-to-date), Germany's DAX: +0.3% (+1.2% week-to-date), U.K.'s FTSE 100: +0.2% (+0.5% week-to-date), France's CAC 40: UNCH (+1.2% week-to-date), Italy's FTSE MIB: +0.2% (+1.4% week-to-date), Spain's IBEX 35: +0.3% (+2.9% week-to-date).
In economic data:
Eurozone's June Industrial Production 0.7% m/m (expected 0.2%; last 2.1%); 2.4% yr/yr (expected 0.8%; last 1.6%)
U.K.'s Q2 GDP -0.1% qtr/qtr (expected -0.2%; last 0.8%); 2.9% yr/yr (expected 2.8%; last 8.7%). Q2 Business Investment 3.8% qtr/qtr (expected -0.3%; last -0.6%); 5.0% yr/yr (last 8.3%). June Industrial Production -0.9% m/m (expected -1.3%; last 1.3%); 2.4% yr/yr (expected 1.6%; last 1.8%). June Manufacturing Production -1.6% m/m (expected -1.8%; last 1.7%); 1.3% yr/yr (expected 0.9%; last 2.6%). June Construction Output -1.4% m/m (expected -1.5%; last 1.8%); 4.1% yr/yr (expected 3.3%; last 4.9%)
France's July CPI 0.3% m/m, as expected (last 0.8%); 6.1% yr/yr, as expected (last 5.8%). Q2 Unemployment Rate 7.4% (expected 7.3%; last 7.3%)
Italy's June trade deficit EUR2.166 bln (expected surplus of EUR350 mln; last deficit of EUR62 mln)
Spain's July CPI -0.3% m/m (expected -0.2%; last 1.9%); 10.8% yr/yr, as expected (last 10.2%)
In news:
Germany's economy ministry expects the country's economy to worsen in the second half due to lower gas deliveries, higher energy prices, and continued supply chain issues.
Drought conditions have been declared across half of England.
CPI readings from France and Spain increased at their fastest yr/yr rates since 1985.
U.S. equity futures:
S&P 500 Futures: +13 @ 4,220
DJIA Futures: +94 @ 33,430
Nasdaq 100 Futures: +42 @ 13,334
Overseas:
Europe: DAX +0.3%, FTSE +0.2%, CAC UNCH
Asia: Nikkei +2.6%, Hang Seng +0.5%, Shanghai Composite -0.2%
Commodities:
Crude Oil -1.47 @ 92.87
Nat Gas -0.279 @ 8.595
Gold -6.20 @ 1801.00
Silver -0.107 @ 20.242
Copper -0.0512 @ 3.6553
U.S. Summary:
Earnings/Guidance:
Adtalem Global Education (ATGE) beats by $0.06, beats on revs; guides FY23 EPS in-line, revs below consensus
Broadridge Financial (BR) beats by $0.03, beats on revs; lowers FY22 EPS below consensus; increases dividend 13%
Cadre Holdings (CDRE) misses by $0.07, beats on revs; reaffirms FY22 revs guidance
CS Disco (LAW) beats by $0.04, reports revs in-line; guides Q3 revs below consensus; guides FY22 revs below consensus
Endeavor Group (EDR) reports Q2 (Jun) results, beats on revs; guides FY22 revs in-line; acquires majority stake in Barrett-Jackson
ESS Inc. (GWH) beats by $0.05, beats on revs; announces partnership with Energy Storage Industries Asia Pacific
Flowers Foods (FLO) beats by $0.04, reports revs in-line; raises bottom end of FY22 EPS above consensus, reaffirms FY22 revs guidance
ForgeRock (FORG) beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY23 guidance
Illumina (ILMN) misses by $0.07, misses on revs; cuts FY22 EPS, revs expectations
Honest Company (HNST) misses by $0.02, beats on revs; reaffirms FY22 revs guidance
indie Semiconductor (INDI) beats by $0.08, reports revs in-line
LegalZoom.com(LZ) beats by $0.03, beats on revs; guides Q3 revs below consensus; guides FY22 revs below consensus due to a tougher operating environment in the back half of the year
Mister Car Wash (MCW) misses by $0.01, beats on revs, comps of +2.4%; guides FY22 EPS below consensus, revs below consensus
Olo Inc. (OLO) beats by $0.01, reports revs in-line; guides Q3 revs below consensus; lowers FY22 revs below consensus
Payoneer (PAYO) beats by $0.07, beats on revs; guides FY22 revs above consensus
PDF Solutions (PDFS) beats by $0.04, beats on revs; guides FY22 revenue slightly ahead of consensus
Poly (POLY) misses by $0.22, reports revs in-line; On March 28, 2022, Poly announced it had entered into a definitive agreement to be acquired by HP Inc. (HPQ)
Poshmark (POSH) reports Q2 (Jun) results, beats on revs; guides Q3 revs in-line
ProFrac Holding (PFHC) reports Q2 results; beats on revs
Prometheus Biosciences (RXDX) beats by $0.06, beats on revs; cash position provides runway into mid-2024
Rapid Micro Biosystems (RPID) announced Q2 results and guidance
ResMed (RMD) beats by $0.03, reports revs in-line; increases dividend
Rivian Automotive (RIVN) beats by $0.01, beats on revs, reports R1 preorder backlog of 98,000 vehicles; Reaffirms 2022 production target of 25K vehicles, lowers capital expenditure guidance
Rocket Lab USA (RKLB) reports Q2 (Jun) results, beats on revs; guides Q3 revs above consensus
Ryan Specialty Group (RYAN) beats by $0.04, beats on revs; raises FY22 organic revenue growth guidance
Sierra Wireless (SWIR) beats by $0.15, beats on revs; entered into definitive agreement on August 2 to be acquired by Semtech (SMTC) for $31/share in cash
SmartRent (SMRT) misses by $0.02, misses on revs; guides Q3 revs below consensus; guides FY22 revs below consensus
Spectrum Brands (SPB) reports Q3 (Jun) results, misses on revs
System1 (SST) misses on revs; guides FY22 revs below consensus; authorizes $25 mln stock and warrant repurchase program
Toast (TOST) beats by $0.01, beats on revs; guides Q3 revs above consensus; raises FY22 revs guidance above consensus
Viavi (VIAV) beats by $0.01, beats on revs; guides Q1 EPS in-line, revs in-line
VTEX (VTEX) reports Q2 (Jun) results, beats on revs
WeTrade Group (WETG) announces $50 million sales of monkeypox virus test kits to Parkway Medical Limited
Wheaton Precious Metals (WPM) beats by $0.01, beats on revs
Wheels Up Experience (UP) misses by $0.10, beats on revs
General News:
House will vote on Inflation Reduction Act today. The bill is expected to pass, according to Reuters
San Francisco Fed President Mary Daly (not a voting FOMC member) expects 50 basis point rate hike in September, according to Bloomberg
President Biden is expected to announce his 2024 bid for re-election after the midterms, according to Bloomberg
FBI was looking for classified nuclear weapon documents at former President Trump's home. It is not clear if the documents were related to US weapons or another country's weapons. Mr. Trump will support release of the search warrant, according to the Washington Post
3M (MMM): Judge has questioned 3M's plan to shift earplug lawsuits to bankruptcy, according to the Wall Street Journal
Agios (AGIO) Announces Publication of Phase 2 Data in The Lancet Demonstrating Safety and Efficacy of PYRUKYND (mitapivat) in Non-transfusion-dependent a- and -Thalassemia
Agnico-Eagle Mines (AEM) provides update on YTD exploration results: adding $30 million dollars to its exploration budget in 2022
AirSculpt Technologies (AIRS) declared a special dividend of $0.41 per share special cash dividend. The dividend will be paid on September 14, 2022, to shareholders of record at the close of business on August 26, 2022
Algonquin Power & Utilities (AQN) beats by $0.01, beats on revs
Alum. Corp China (ACH) announces intention to delist from the NYSE
Apple (AAPL) asks suppliers to build same number of iPhones for sale this year as it did last year, according to Bloomberg
AstraZeneca (AZN) receives FDA approval for ENHERTU for patients with previously treated HER2 mutant metastatic non-small cell lung cancer
Avita Medical (RCEL) announced topline results from its pivotal randomized, controlled trial evaluating the safety and effectiveness of the RECELL System combined with meshed autograft for reduction of donor skin harvesting in soft tissue reconstruction
Azure Power (AZRE) signed a Master Supply Agreement with Siemens Gamesa Renewable Power Private Limited
BlackRock (BLK) launches a spot bitcoin private trust
Brookfield Business Corporation (BBUC) announces normal course issuer bid of shares; authorized the corporation to repurchase up to 5% of the total issued and outstanding shares, or 3,647,810 shares
China Petroleum (SNP) notified the New York Stock Exchange on 12 August 2022 that it will apply for the voluntary delisting of its American depositary shares
Copa Holdings (CPA) reports July traffic; ASMs -3.1% lower than July 2019, while passenger traffic (RPMs) -2.7%, which resulted in an 87.0% load factor
Covetrus (CVET) CFO Matthew Foulston will be retiring from the company effective December 31
Domo (DOMO) announces that its cloud-based platform - the Domo platform running on Amazon Web Service - has earned Certified status for information security by HITRUST
ESS Inc. (GWH) announces a strategic partnership with Energy Storage Industries Asia Pacific to distribute and manufacture iron flow batteries utilizing ESS technology in Australia, New Zealand and Oceania to meet rapidly growing demand for long-duration energy storage in the region
Fisker (FSR) sells out of 2023 planned production of Fisker Ocean Sport and Ultra trims for the US market and prepares for the start of production in Austria
Harsco (HSC) announces that Anshooman Aga has resigned as the Company's Senior Vice President and CFO, effective August 24, 2022, to pursue employment with another company
Homology Medicines (FIXX) announces the details of HMI-204, its optimized, in vivo, one-time gene therapy product candidate for the treatment of metachromatic leukodystrophy
J&J Snack Foods (JJSF) increases quarterly dividend to $0.70/share from $0.633/share
Johnson & Johnson (JNJ) to no longer sell talc-based baby power globally in 2023, according to Reuters
MGM Resorts (MGM): Las Vegas casinos were impacted by flooding again, according to NY Post
Novartis AG (NVS): Two children have died from acute liver failure after being administered Zolgensma, according to STAT News
PetroChina (PTR) announced intention to delist the ADRs from the NYSE
Pfizer (PFE) announces 'positive' top-line results from phase 3 study of 20-valent pneumococcal conjugate vaccine in infants
Primerica (PRI) authorized a $50 million increase to its previously announced share repurchase program through December 31, 2022, bringing the total authorization to $375 million
Rapid Micro Biosystems (RPID) announces review of strategic alternatives to maximize shareholder value; rejects unsolicited, non-binding proposal of $5/share from Kennedy Lewis Investment Management
Samsung (SSNLF) expects to have edge in smartphone battles with new products, according to the Wall Street Journal
Shanghai Petrochemical (SHI) notified the NYSE that it intends to voluntarily delist its ADSs representing Class H ordinary shares of the Company from the NYSE
Teekay Corporation (TK) has authorized a share repurchase program for the repurchase of up to $30 mln of the Company's outstanding common shares
Uniper (UNG) may swap liquefied natural gas it receives from Australia's Woodside for U.S. gas to boost supplies in Europe, according to Reuters
M&A:
Avient (AVNT) to sell its Distribution business to an affiliate of H.I.G. Capital for $950 mln in cash, subject to regulatory approval
Churchill Downs (CHDN) to sell 49% of United Tote to NYRA Content Management
Endeavor Group (EDR): IMG has acquired a majority stake in Barrett-Jackson; financial terms were not disclosed
Pearson Plc (PSO) to sell its 75% share of the K12, TVET and local Higher Education Courseware business in South Africa to Novus Holdings Limited
Rogers Comms (RCI), Shaw (SJR), and Quebecor sign definitive agreement for sale of Freedom Mobile
Telus (TU) receives court approval and key regulatory approvals for its proposed acquisition of LifeWorks
Syndicate:
Celularity (CELU) files $450 mln mixed securities shelf offering
Certara (CERT) announces the sale by certain stockholders, including EQT Avatar Parent L.P., in an underwritten secondary offering of 7,000,000 shares of common stock of Certara pursuant to a registration statement filed by Certara with the U.S. Securities and Exchange Commission
Erasca (ERAS) files for $500 mln mixed securities shelf offering
Farmland Partners (FPI) files for 248,734 share common stock offering by selling shareholders
Holley Inc. (HLLY) files for offering of up 8,299,978 Shares of Common Stock Issuable Upon Exercise of the Public Warrants
Inspire Medical Systems (INSP) prices offering of 1.0 mln shares of common stock at $215.00 per share
Portillo's (PTLO) prices follow-on offering of 8.0 mln shares of common stock at $23.75 per share
Rani Therapeutics (RANI) terminates public offering of common stock
Red River Bancshares (RRBI) files $100 mln mixed securities shelf offering
Silence Therapeutics (SLN) prices offering of 5.95 mln shares of common stock at $9.50 per share
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
PAYO +20.8%, GWH +19.1%, TOST +15.3%, UP+12.5%, RANI +12.4%, PCT +10.6%, TK +8.3%, PDFS+7.7%, LZ +6.5%, INDI +5.7%, AIRS +5.4%, JOBY+4.5%, TU +4.4%, SJR +4.3%, CHDN +3%, RCEL+2.7%, CELU +2.2%, RKLB +2.2%, ERAS +2%, FLO+1.5%, VIAV +1.3%, AEM +1%, SAND +1%
Gapping down:
OLO -32.6%, LAW -31.4%, ILMN -14.7%, SMRT-14.3%, EXFY -12.3%, MCW -11.8%, CERT -10.3%, SST -6.5%, FORG -6.4%, INSP -4.2%, AQN -3.5%, SNP -3.3%, LFC -3.2%, RYAN -2.5%, PTLO -2.3%, VET -1.6%, CDRE -1.6%, POSH -1.4%, PTR -1.2%, RMD -1.2%, HLLY -1.1%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Absci Corporation (ABSI) upgraded to Outperform from Market Perform at Cowen
Alliant Energy (LNT) upgraded to Buy from Neutral at BofA Securities; tgt raised to $70
Downgrades:
4D Molecular Therapeutics (FDMT) downgraded to Mkt Perform from Outperform at SVB Leerink; tgt $12
Allegiant Travel (ALGT) downgraded to Peer Perform from Outperform at Wolfe Research
Applied Industrial (AIT) downgraded to Neutral from Outperform at Robert W. Baird; tgt raised to $129
Cellebrite DI (CLBT) downgraded to Mkt Perform from Outperform at William Blair
Centessa Pharmaceuticals (CNTA) downgraded to Underweight from Overweight at Morgan Stanley; tgt lowered to $5
e.l.f. Beauty (ELF) downgraded to Market Perform from Outperform at Cowen; tgt $36
II-VI (IIVI) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $59
Lennar (LEN) downgraded to Neutral from Outperform at Wedbush
Rockley Photonics (RKLY) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $2
The RealReal (REAL) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $3
Utz Brands (UTZ) downgraded to Neutral from Buy at Goldman; tgt raised to $21
Others:
Accolade (ACCD) initiated with a Buy at DA Davidson; tgt $16
Archer-Daniels (ADM) initiated with an Outperform at Wolfe Research; tgt $117
BlackBerry (BB) initiated with a Neutral at Robert W. Baird; tgt $7
Bunge (BG) initiated with an Outperform at Wolfe Research; tgt $127
CrowdStrike (CRWD) initiated with a Buy at Guggenheim; tgt $270
GoodRx (GDRX) initiated with a Neutral at DA Davidson; tgt $8
Lexicon Pharma (LXRX) initiated with an Overweight at Piper Sandler; tgt $10
Salesforce (CRM) initiated with a Sell at Guggenheim; tgt $150
Upcoming Events:
Econ Data:
08:30 ET: Import Prices for July (Briefing.comConsensus NA; Prior 0.2%)
08:30 ET: Import Prices ex-oil for July (Briefing.comConsensus NA; Prior -0.5%)
08:30 ET: Export Prices for July (Briefing.comConsensus NA; Prior 0.7%)
08:30 ET: Export Prices ex-ag for July (Briefing.comConsensus NA; Prior 0.9%)
10:00 ET: Univ. of Michigan Consumer Sentiment - Prelim for Aug (Briefing.comConsensus 52.1; Prior 51.5)
Earnings:
Monday (Aug 8)
Morning: GOLD BNTX D ELAN ENR HSKA DINO MNDY PLTR RDWR RETA TGNA THS TSN VTRS
Afternoon: TXG ME DDD AAON ACAD ACCO ACM BIRD AEL AIG AZPN AVLR BLNK BCOR BWXT CBT CARG DM APPS DOCN EGIO EHTH ESE FGEN FRPT GBT GDRX GRPN HLIO HIMS HBM ICUI INSG IFF LMND LGND LPSN VAC DOOR MESA MRC NCMI NHI NWSA NE NVAX OKE OPRT PRDO PRAA PRI PRIM PFG PRA PUBM QLYS SWAV SDC SWCH TTWO SKT TASK TREX UPST VXRT VECO VLDR VSAT VVNT VRM WPRT YMAB
Asia & Europe detail:
Asia: Nikkei +2.6%, Hang Seng +0.5%, Shanghai Composite -0.2%
Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Prime Minister Kishida said that his government will announce more measures to deal with high energy and food prices. Fitch noted that China's money market fund became the world's second largest money market fund in Q2, overtaking Europe. New Zealand's Manufacturing PMI expanded for the 12th consecutive month in July.
In economic data:
China's July New Loans CNY679.0 bln (expected CNY1.10 trln; last CNY2.81 trln) and July Total Social Financing CNY756.1 bln (expected CNY1.30 trln; last CNY5.17 trln)
South Korea's July Import Price Index 27.9% yr/yr (last 33.6%) and Export Price Index 16.3% yr/yr (last 23.7%)
Hong Kong's Q2 GDP 1.0% qtr/qtr (last -0.9%); -1.3% yr/yr (last -1.4%)
New Zealand's July FPI 2.1% m/m (last 1.2%) and July Business NZ PMI 52.7 (last 50.0)
---Equity Markets---
Japan's Nikkei: +2.6% (+1.3% for the week)
Hong Kong's Hang Seng: +0.5% (-0.1% for the week)
China's Shanghai Composite: -0.2% (+1.6% for the week)
India's Sensex: +0.2% (+1.8% for the week)
South Korea's Kospi: +0.2% (+1.5% for the week)
Australia's ASX All Ordinaries: -0.5% (+0.5% for the week)
---FX---
USD/JPY: +0.5% to 133.60
USD/CNH: UNCH at 6.7415
USD/INR: +0.2% to 79.68
Europe: DAX +0.3%, FTSE +0.2%, CAC UNCH
Major European indices trade near their flat lines. Germany's economy ministry expects the country's economy to worsen in the second half due to lower gas deliveries, higher energy prices, and continued supply chain issues. Drought conditions have been declared across half of England. CPI readings from France and Spain increased at their fastest yr/yr rates since 1985.
In economic data:
Eurozone's June Industrial Production 0.7% m/m (expected 0.2%; last 2.1%); 2.4% yr/yr (expected 0.8%; last 1.6%)
U.K.'s Q2 GDP -0.1% qtr/qtr (expected -0.2%; last 0.8%); 2.9% yr/yr (expected 2.8%; last 8.7%). Q2 Business Investment 3.8% qtr/qtr (expected -0.3%; last -0.6%); 5.0% yr/yr (last 8.3%). June Industrial Production -0.9% m/m (expected -1.3%; last 1.3%); 2.4% yr/yr (expected 1.6%; last 1.8%). June Manufacturing Production -1.6% m/m (expected -1.8%; last 1.7%); 1.3% yr/yr (expected 0.9%; last 2.6%). June Construction Output -1.4% m/m (expected -1.5%; last 1.8%); 4.1% yr/yr (expected 3.3%; last 4.9%)
France's July CPI 0.3% m/m, as expected (last 0.8%); 6.1% yr/yr, as expected (last 5.8%). Q2 Unemployment Rate 7.4% (expected 7.3%; last 7.3%)
Italy's June trade deficit EUR2.166 bln (expected surplus of EUR350 mln; last deficit of EUR62 mln)
Spain's July CPI -0.3% m/m (expected -0.2%; last 1.9%); 10.8% yr/yr, as expected (last 10.2%)
---Equity Markets---
STOXX Europe 600: -0.1% (+0.9% week-to-date)
Germany's DAX: +0.3% (+1.2% week-to-date)
U.K.'s FTSE 100: +0.2% (+0.5% week-to-date)
France's CAC 40: UNCH (+1.2% week-to-date)
Italy's FTSE MIB: +0.2% (+1.4% week-to-date)
Spain's IBEX 35: +0.3% (+2.9% week-to-date)
---FX---
EUR/USD: -0.4% to 1.0283
GBP/USD: -0.5% to 1.2131
USD/CHF: +0.2% to 0.9431