The S&P 500 futures are up 23 points and are trading 0.6% above fair value. The Nasdaq 100 futures are up 84 points and are trading 0.7% above fair value. The Dow Jones Industrial Average futures are up 113 points and are trading 0.3% above fair value.
Equity futures indicate a higher open driven by carryover momentum following last week's rebound effort. There's also some hesitation ahead of tomorrow's August CPI report at 8:30 a.m. ET.
The White House is expected to tighten restrictions on semiconductor chip exports to China, according to the Reuters.
In central bank news, there's some speculation that China will lower its medium-term lending facility rate. European Central Bank policymakers are reportedly preparing to raise the key rate to 2.00% with some lobbying for restrictive policy. ECB policymaker Nagel said that clearer steps will need to be taken if inflation doesn't ease, adding that it could exceed 10.0% at its peak, which is expected in December.
Energy complex futures are making upside moves this morning. WTI crude oil futures are up 0.8% to $87.52/bbl. Natural gas futures are up 1.2% to $8.09/mmbtu.
The US Dollar Index is down 0.8% to 108.13.
The 2-yr Treasury note yield, which reached 3.58% overnight, is down four basis points to 3.53% while the 10-yr note yield is down four basis points to 3.28%.
In corporate news:
Bristol-Myers (BMY 75.75, +5.59, +7.97%): receives FDA approval for Sotyktu
Walt Disney (DIS 115.88, +0.70, +0.61%): activist Dan Loeb reportedly calling off his push to spin off ESPN, according to CNBC
Newmont Goldcorp (NEM 44.16, +0.99, +2.29%): initiated with a Buy at Goldman
Carvana (CVNA 39.03, +2.41, +6.58%): upgraded to Overweight from Neutral at Piper Sandler
iShares Nasdaq Biotech ETF (IBB 128.63, +0.23, +0.18%): President Biden signed executive order to launch a national biotechnology and biomanufacturing initiative
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a higher note, though overall volume was reduced due to holiday closures in China, Hong Kong, and South Korea. Japan's Nikkei: +1.2%, Hong Kong's Hang Seng: CLOSED, China's Shanghai Composite: CLOSED, India's Sensex: +0.5%, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: +1.0%.
In economic data:
Japan's August Machine Tool Orders 10.7% yr/yr (last 5.5%)
New Zealand's July Visitor Arrivals 41.8% m/m (last 30.1%)
In news:
There was some speculation that China will lower its medium-term lending facility rate.
Japan is expected to scrap its limit on daily visitor arrivals as early as this week.
New Zealand is lifting its mask and vaccine mandates.
Major European indices trade on a firmly higher note. STOXX Europe 600: +1.1%, Germany's DAX: +1.5%, U.K.'s FTSE 100: +1.2%, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.6%, Spain's IBEX 35: +1.3%.
In economic data:
U.K.'s July GDP 0.2% m/m (expected 0.3%; last -0.6%). July Construction Output -0.8% m/m (expected 0.5%; last -1.4%); 4.3% yr/yr (expected 5.6%; last 4.1%). July Industrial Production -0.3% m/m (expected 0.4%; last -0.9%); 1.1% yr/yr (expected 1.9%; last 2.4%). July Manufacturing Production 0.1% m/m (expected 0.4%; last -1.6%); 1.1% yr/yr (expected 1.6%; last 1.3%). July trade deficit GBP19.36 bln (expected deficit of GBP22.30 bln; last deficit of GBP22.85 bln)
Italy's July Industrial Production 0.4% m/m (expected 0.3%; last -2.0%); -1.4% yr/yr (expected -0.4%; last -1.1%)
In news:
European Central Bank policymakers are reportedly preparing to raise the key rate to 2.00% with some lobbying for restrictive policy.
ECB policymaker Nagel said that clearer steps will need to be taken if inflation doesn't ease, adding that it could exceed 10.0% at its peak, which is expected in December.
French Finance Minister Le Maire said that consumers will have to absorb some of the effect of higher energy prices.
U.S. equity futures:
S&P 500 Futures: +23 @ 4,091
DJIA Futures: +108 @ 32,259
Nasdaq 100 Futures: +81 @ 12,669
Overseas:
Europe: DAX +1.5%, FTSE +1.2%, CAC +1.2%
Asia: Nikkei +1.2%, Hang Seng CLOSED, Shanghai Composite CLOSED
Commodities:
Crude Oil +0.72 @ 87.51
Nat Gas +0.088 @ 8.084
Gold +10.60 @ 1739.20
Silver +0.600 @ 19.367
Copper +0.0340 @ 3.6620
U.S. Summary:
Earnings/Guidance:
Abcam (ABCM) reports in-line results; beats on revs
ASE Technology (ASX) reports August revs increased 26.5% yr/yr to NT$63.8 bln
SVB Financial Group (SIVB) provided its expectations for net interest margin and net interest income for the third quarter of 2022
General News:
White House expected to tighten restrictions on chip exports to China, according to Reuters
President Biden to launch a national biotechnology and biomanufacturing initiative
Phone manufacturers expected to follow Apple's plan for satellite-based emergency communication, according to the Wall Street Journal
A10 Networks (ATEN) purchased an aggregate of 3.5 mln of its shares from Summit
AbbVie (ABBV) presents New Late-Breaking Results from Phase 3 Trials of SKYRIZI (risankizumab) Evaluating Long-term Effect on Skin and Joint Symptoms in Patients with Psoriatic Arthritis at Week 100
ACADIA Pharmaceuticals (ACAD) receives acceptance from FDA for NDA of Trofinetide
Alector (ALEC) Initiates Phase 1 Clinical Trial of AL044 for the Treatment of Alzheimer's Disease
Allakos (ALLK) Announces Initiation of Phase 2b Clinical Trial of Subcutaneous Lirentelimab in Chronic Spontaneous Urticaria
Amgen (AMGN) reports Lumakras (sotorasib) combined with Vectibix (panitumumab) shows confirmed 30% objective response rate in patients with KRAS G12C-mutated metastatic colorectal cancer
Apexigen (APGN) Presents New Data from a Phase 2 Trial Evaluating its CD40 Antibody, Sotigalimab, in Combination with Neoadjuvant Chemoradiation in Patients with Resectable Esophageal and Gastroesophageal Junction Cancers at ESMO Congress 2022
AstraZeneca (AZN) reports Imfinzi plus chemotherapy further improved overall survival benefit in advanced biliary tract cancer in the TOPAZ-1 Phase III trial, reducing the risk of death by 24% in additional follow-up
AstraZeneca (AZN) reports ENHERTU (fam-trastuzumab deruxtecan-nxki) Continues to Demonstrate Clinically Meaningful Tumor Response in Patients with HER2-mutant Metastatic Non-small Cell Lung Cancer
AstraZeneca (AZN) reports ENHERTU (fam-trastuzumab deruxtecan-nxki) Continues to Demonstrate Clinically Meaningful Tumor Response in Patients with HER2-mutant Metastatic Non-small Cell Lung Cancer
BeiGene (BGNE) Announces Data Presentations at ESMO 2022 Including Late-Breaking Oral Presentation for Tislelizumab in First-Line Unresectable Hepatocellular Cancer
Bluebirdbio's (BLUE) Chief Strategy and Financial Officer plans to leave to pursue new career opportunities; last day will be October 14, 2022
Bread Financial (BFH) makes comments on business trends and metrics at Barclays Financial Services Conference
Bristol Myers Squibb (BMY) Announces New Sotyktu (deucravacitinib) Long-Term Data Showing Clinical Efficacy Maintained for Up to Two Years with Continuous Treatment in Moderate-to-Severe Plaque Psoriasis
Bristol-Myers (BMY) receives FDA approval for Sotyktu
Cardiff Oncology (CRDF) Announces New Preclinical and Clinical Data from Program in KRAS-mutated Metastatic Colorectal Cancer (mCRC) at the ESMO Congress 2022
Centessa Pharmaceuticals (CNTA) Announces Non-Human Primate Pharmacokinetic and Safety Data for LB101 (PD-L1xCD47) Demonstrating Potential for Enhanced Therapeutic Index
Concert Pharmaceuticals (CNCE) Announces Presentation of CTP-543 THRIVE-AA1 Phase 3 Data in Alopecia Areata During Late Breaking Session at EADV Congress
Deciphera Pharmaceuticals, Inc. (DCPH) Presents Updated Phase 1/2 Data for Vimseltinib in TGCT at the European Society for Medical Oncology (ESMO) Congress 2022
Deciphera Pharmaceuticals, Inc. (DCPH) Presents Initial Phase 1 Single Agent Dose Escalation Data for First-in-Class ULK Inhibitor of Autophagy, DCC-3116, at the European Society for Medical Oncology (ESMO) Congress 2022
Deere (DE) expanding technology in its products, according to the Wall Street Journal
Disney (DIS) looking to add sports wagering app, according to Bloomberg
Dyne Therapeutics (DYN) Highlights DM1 and DMD Clinical Programs During 'Spotlight on the Clinic' Virtual Event
EchoStar's (SATS) Hughes Network Systems started rolling out a new low-latency satellite internet offering to consumers in select U.S. markets
Edgewise Therapeutics (EWTX) Announces Positive 4-Month Interim Results from the ARCH Open Label Study of EDG-5506 in Adults with Becker Muscular Dystrophy
Equinox Gold (EQX) announces that the blockade at its Los Milos Mine in Mexico has been removed and operations resumed on September 10
Exact Sciences (EXAS) Demonstrates Power of Multi-Cancer Early Detection Approach with Data Presentation at the 2022 European Society for Medical Oncology Congress
Exelixis (EXEL) Announces Dose-Escalation Results from the Phase 1 STELLAR-001 Trial Evaluating XL092 Alone and in Combination with an Immune Checkpoint Inhibitor in Patients with Advanced Solid Tumors at ESMO 2022
Fortuna Silver Mines (FSM) extends gold mineralization at Sunbird and identifies new regional prospects at Sgula
General Electric (GE) announces Board of Directors for future independent GE HealthCare; confirms target spin-off timing of first week of January 2023
Gritstone (GRTS) Presents Positive Initial Phase 2 Data in Late-Line Solid Tumor Patients Treated With KRAS-Directed Immunotherapy (SLATE) at ESMO 2022
Haemonetics (HAE) has earned CE mark certification for its VASCADE vascular closure and VASCADE MVP venous vascular closure systems
Hersha Hospitality Trust (HT) to sell two of its West Coast properties for gross proceeds of $125 million, or ~$455,000 per key
IDEAYA (IDYA) Reports Positive Interim Phase 2 Clinical Results for Darovasertib and Crizotinib Synthetic Lethal Combination in Metastatic Uveal Melanoma
I-Mab (IMAB) Announces Positive Phase 2 Data of Lemzoparlimab in Combination with Azacitidine (AZA) in Patients with Higher Risk Myelodysplastic Syndrome at ESMO 2022
Immatics (IMTX) Presents Comprehensive Preclinical Data Set for TCR Bispecific Candidate IMA402 Targeting PRAME at European Society for Medical Oncology (ESMO) Congress 2022
ImmunoGen (IMGN) Presents Additional Analyses Evaluating Mirvetuximab Soravtansine in Ovarian Cancer at ESMO
Int'l Paper (IP) and the Internal Revenue Service agreed to settle the previously disclosed 2015 timber monetization restructuring tax matter
Invitae (NVTA) announces collaboration with Simons Searchlight to accelerate research through data sharing
Keros Therapeutics (KROS) Presents Additional Clinical Data from its KER-012 Program and Preclinical Data from its KER-050 Program at the American Society of Bone and Mineral Research 2022 Annual Meeting
Lightning eMotors (ZEV) CFO Teresa Covington is retiring, effective October 2; David Agatston will join as new CFO beginning October 3
Liquidity Services (LQDT) announces the auction of energy surplus in the Gulf of Mexico for a leading oil and gas industry partner
Merck's (MRK) Five-Year Data for KEYTRUDA (pembrolizumab) Plus Chemotherapy Showed Sustained Survival Benefit Versus Chemotherapy Alone in Two Studies for Metastatic Non-Small Cell Lung Cancer
Merck (MRK) and Eisai Present Results From Phase 3 LEAP-002 Trial Evaluating KEYTRUDA (pembrolizumab) Plus LENVIMA (lenvatinib) Versus LENVIMA Monotherapy in Patients With Unresectable Hepatocellular Carcinoma
MSG Sports' (MSGS) President and CEO to step down at end of year; also names David Hopkinson as COO, effective immediately
New Pacific (NEWP) Intercepts 111 Metres Grading 1.54 Grams Per Tonne Gold Near Surface at the Silverstrike Project
Nikola (NKLA) founder facing start of securities fraud trial this week, according to the Wall Street Journal
Novartis AG (NVS) reports Cosentyx shows clinically meaningful symptom improvements in patients with hidradenitis suppurativa in pivotal Phase III trials
Ocwen Financial (OCN) Comments On New Financial Eligibility Requirements Announced by FHFA and Ginnie Mae
POINT Biopharma (PNT) Provides Updated Efficacy and Safety Data from the Lead-In Cohort of the Phase 3 SPLASH Trial in mCRPC at ESMO Congress 2022
PyroGenesis Canada (PYR) announced termination of automatic securities disposition plan
Raytheon Technologies (RTX) awarded a $184 mln contract for ASARS-2B sensors
Regeneron Pharma (REGN) reports Fianlimab (LAG-3 Inhibitor) Combined with Libtayo (cemiplimab) Demonstrates Greater than 60% Response Rates in Two Independent Cohorts of Patients with Advanced Melanoma Nave to PD-1 or PD-L1 Inhibitors
Regeneron Pharma (REGN) reports Positive Neoadjuvant Libtayo (cemiplimab) Monotherapy Data in Resectable Cutaneous Squamous Cell Carcinoma Presented at ESMO and Published in NEJM
Relay Therapeutics (RLAY) reports Late Breaking Data Presented at ESMO Congress 2022 Demonstrate Potential of RLY-4008 to Transform Treatment Options for Cholangiocarcinoma Patients with FGFR2-Driven Disease
Ritchie Bros. (RBA) latest auction in Edmonton, Alberta generated $58+ mln in gross transaction value
Spectrum Pharma (SPPI) receives FDA approval for ROLVEDON injection; expects to launch product in Q4
SpringWorks Therapeutics (SWTX) Announces Data from Phase 3 DeFi Trial Evaluating Nirogacestat in Adult Patients with Progressing Desmoid Tumors at the European Society for Medical Oncology (ESMO) Congress 2022
Stellantis (STLA): There's a strike at Stellantis plant in Indiana, according to Reuters
Tesla (TSLA) planning domestic lithium refinery, according to the Wall Street Journal
Titan Medical (TMDI) Signs Definitive Agreement with Medtronic (MDT)
Veracyte (VCYT) presents New Data at ESMO 2022 Show Veracyte's Decipher Prostate Genomic Classifier May Help Inform Personalized Treatment Decisions in Men with Advanced Prostate Cancer
Vera Therapeutics (VERA) amends license agreement with Novartis
Vertex Energy (VTNR) provides progress & strategic timeline update of mobile refinery renewable diesel conversion project
XPO Logistics (XPO) announced that Jay Silberkleit has been appointed chief information officer, effective upon the spin-off of XPO's brokered transportation platform
M&A:
AnaptysBio (ANAB) sell royalty interest of Zejula for up to $45 mln
Clarivate (CLVT) announces that Newfold Digital acquires MarkMonitor from company for approximately $302.5 mln
DiamondHead Holdings Corp. (DHHC): Great Southern Homes to become a public company through a business combination with DiamondHead Holdings Corp. under the name United Homes Group
Endeavour Silver (EXK) entered into an agreement to sell a 100% interest in Minera Oro Silver de Mexico, S.A. de C.V., a wholly owned subsidiary of Endeavour to Grupo ROSGO
Lakeshore Acquisition II Corp (LBBB): Nature's Miracle to be listed on Nasdaq through business combination with Lakeshore Acquisition II Corp
Stepan Company (SCL) to acquire the surfactant business and associated assets of PerformanX Specialty Chemicals; expected to close in the third quarter of 2022
Twitter (TWTR): Elon Musk files amended 13D disclosing letter formally notifying Twitter that he has become aware of certain facts that serve as a new basis for terminating their merger
Twitter (TWTR) responds to most recent notice of purported termination of the Merger Agreement
Zendesk (ZEN): EC clears acquisition of joint control of Zendesk by H&F and Permira
Syndicate:
Alnylam Pharma (ALNY) commences offering of $900 mln of convertible senior notes due 2027
Chicken Soup for the Soul Entertainment (CSSE) files for 7,745,453 share common stock offering by selling shareholders, relates to warrants
MicroStrategy (MSTR) enters into a Sales Agreement related to offering of up to $500 mln of common stock
Mirum Pharmaceuticals (MIRM) files mixed securities shelf offering
Relay Therapeutics (RLAY) announces underwritten offering of $300 mln in common stock
Shopify (SHOP) files mixed securities shelf offering
SmileDirectClub (SDC) files for $400 mln mixed securities shelf offering
Vector Grp (VGR) files mixed securities shelf offering
Viridian Therapeutics (VRDN) files mixed securities shelf offering
Vroom (VRM) files for $300 mln mixed securities shelf offering
WeTrade Group (WETG) files for $300 mln mixed securities shelf offering
IPOs:
Expected to Price:
Corebridge Financial (NYSE: CRBG): The spin-off of AIG (AIG), which is one of the largest providers of retirement solutions and insurance products in the United States, is expected to price its 80.0 M share IPO between $21-$24.
Gapping Up/Down
Gapping up:
SPPI +19.7%, CLVS +14.8%, CRDF +9.3%, IMTX+8.3%, BMY +6.9%, IDYA +5.9%, APGN +5.8%, PNT+5.7%, EWTX +4.7%, CSSE +4.3%, IMAB +4%, FSM+3.2%, MSTR +3.1%, VGR +3%, OXY +2.1%, NVS+1.9%, AZN +1.2%, MRK +0.7%
Gapping down:
LYEL -4.9%, VCYT -3.9%, SWTX -3.4%, EXAS -3%, VRM -2.8%, MSGS -2.4%, ATEN -2.3%, AMGN -2.1%, RLAY -2.1%, IMGN -2%, SHOP -1.8%, TWTR -0.9%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
APA Corp. (APA) upgraded to Buy from Neutral at Citigroup; tgt raised to $58
B2Gold (BTG) upgraded to Action List Buy from Buy at TD Securities
Canadian Nat'l Rail (CNI) upgraded to Buy from Neutral at BofA Securities; tgt raised to $135
Canadian Pacific (CP) upgraded to Buy from Neutral at BofA Securities; tgt raised to $87
Carpenter Tech (CRS) upgraded to Outperform from Market Perform at Cowen; tgt $45
Carvana (CVNA) upgraded to Overweight from Neutral at Piper Sandler; tgt lowered to $73
Enbridge (ENB) upgraded to Outperform from Mkt Perform at Raymond James
Telos Corporation (TLS) upgraded to Outperform from Neutral at Wedbush; tgt $15
Union Pacific (UNP) upgraded to Buy from Neutral at BofA Securities; tgt $260
Downgrades:
Adobe (ADBE) downgraded to Neutral from Buy at Mizuho; tgt lowered to $440
Cable ONE (CABO) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $1200
Corus Entertainment (CJREF) downgraded to Sector Perform from Outperform at National Bank Financial
Enghouse Systems (EGFSF) downgraded to Hold from Buy at TD Securities
Oak Street Health (OSH) downgraded to Neutral from Buy at Goldman; tgt lowered to $29
Occidental Petro (OXY) downgraded to Neutral from Buy at Citigroup; tgt raised to $67
Pernod-Ricard (PDRDY) downgraded to Hold from Buy at Deutsche Bank
Others:
Agilon Health (AGL) initiated with a Buy at Goldman; tgt $38
Agnico-Eagle Mines (AEM) initiated with a Buy at Goldman
Alphatec (ATEC) initiated with an Overweight at Morgan Stanley; tgt $13
Barrick (GOLD) initiated with a Neutral at Goldman; tgt $18
Bill.com(BILL) initiated with an Overweight at Morgan Stanley; tgt $220
CoStar Group (CSGP) initiated with a Market Perform at BMO Capital Markets; tgt $83
Dakota Gold Corp. (DC) initiated with a Speculative Buy at Canaccord Genuity; tgt $5.25
Darling Ingredients (DAR) initiated with a Buy at Stifel; tgt $101
Enovis Corporation (ENOV) initiated with a Buy at Canaccord Genuity; tgt $67
Enovis Corporation (ENOV) initiated with an Outperform at Evercore ISI; tgt $68
Franco-Nevada (FNV) initiated with a Neutral at Goldman
Jack In The Box (JACK) added to Best Ideas List at Wedbush; tgt raised to $115
Monday.com(MNDY) initiated with a Buy at Loop Capital; tgt $175
Newmont Goldcorp (NEM) initiated with a Buy at Goldman; tgt $53
Pagaya (PGY) initiated with a Market Perform at MoffettNathanson; tgt $12
PTC Therapeutics (PTCT) initiated with a Buy at Jefferies; tgt $62
Roblox (RBLX) initiated with an Underperform at Cowen; tgt $31
Wheaton Precious Metals (WPM) initiated with a Buy at Goldman
Upcoming Events:
Econ Data:
No economic data of note.
Asia & Europe detail:
Asia: Nikkei +1.2%, Hang Seng CLOSED, Shanghai Composite CLOSED
Equity indices in the Asia-Pacific region began the week on a higher note, though overall volume was reduced due to holiday closures in China, Hong Kong, and South Korea. There was some speculation that China will lower its medium-term lending facility rate. Japan is expected to scrap its limit on daily visitor arrivals as early as this week. New Zealand is lifting its mask and vaccine mandates.
In economic data:
Japan's August Machine Tool Orders 10.7% yr/yr (last 5.5%)
New Zealand's July Visitor Arrivals 41.8% m/m (last 30.1%)
---Equity Markets---
Japan's Nikkei: +1.2%
Hong Kong's Hang Seng: CLOSED
China's Shanghai Composite: CLOSED
India's Sensex: +0.5%
South Korea's Kospi: CLOSED
Australia's ASX All Ordinaries: +1.0%
---FX---
USD/JPY: +0.1% to 142.62
USD/CNH: -0.2% to 6.9184
USD/INR: -0.2% to 79.51
Europe: DAX +1.5%, FTSE +1.2%, CAC +1.2%
Major European indices trade on a firmly higher note. European Central Bank policymakers are reportedly preparing to raise the key rate to 2.00% with some lobbying for restrictive policy. ECB policymaker Nagel said that clearer steps will need to be taken if inflation doesn't ease, adding that it could exceed 10.0% at its peak, which is expected in December. French Finance Minister Le Maire said that consumers will have to absorb some of the effect of higher energy prices.
In economic data:
U.K.'s July GDP 0.2% m/m (expected 0.3%; last -0.6%). July Construction Output -0.8% m/m (expected 0.5%; last -1.4%); 4.3% yr/yr (expected 5.6%; last 4.1%). July Industrial Production -0.3% m/m (expected 0.4%; last -0.9%); 1.1% yr/yr (expected 1.9%; last 2.4%). July Manufacturing Production 0.1% m/m (expected 0.4%; last -1.6%); 1.1% yr/yr (expected 1.6%; last 1.3%). July trade deficit GBP19.36 bln (expected deficit of GBP22.30 bln; last deficit of GBP22.85 bln)
Italy's July Industrial Production 0.4% m/m (expected 0.3%; last -2.0%); -1.4% yr/yr (expected -0.4%; last -1.1%)
---Equity Markets---
STOXX Europe 600: +1.1%
Germany's DAX: +1.5%
U.K.'s FTSE 100: +1.2%
France's CAC 40: +1.2%
Italy's FTSE MIB: +1.6%
Spain's IBEX 35: +1.3%
---FX---
EUR/USD: +0.9% to 1.0132
GBP/USD: +0.8% to 1.1675
USD/CHF: -0.5% to 0.9551
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