The S&P 500 futures are down 1 point and are trading in-line with fair value. The Nasdaq 100 futures are flat and are trading in-line with fair value. The Dow Jones Industrial Average futures are down 21 points and are trading 0.1% below fair value.
Stock futures indicate a flattish open following yesterday's retreat in the cash market, as participants await the Consumer Price Index report.
The weekly MBA Mortgage Applications Index fell 0.8% with refinance applications dropping 5.0% and purchase applications increasing 1.0%.
The August Consumer Price Index will be released at 8:30 a.m. ET. Other economic data include: the Weekly EIA Crude Oil Inventories at 10:30 a.m. ET and the August Treasury budget at 2:00 p.m. ET.
The 2-yr note yield is up three basis point to 5.04% and the 10-yr note yield is up seven basis points to 4.31%.
WTI crude oil futures are up 0.5% to $89.30/bbl.
In corporate news:
Oracle (ORCL 109.21, -0.40, -0.4%): downgraded to Neutral from Overweight at JPMorgan
Ford (F 12.63, +0.18, +1.5%) and General Motors (GM 33.61, +0.14, +0.4%): trading up after UBS starts coverage with Buy ratings
Rocket Pharmaceuticals (RCKT 18.70, +3.41, +22.3%): Reaches FDA Alignment on Pivotal Phase 2 Trial Design for RP-A501 in Danon Disease; prices offering of 7,812,500 shares of its common stock at $16.00 per share and pre-funded warrants to purchase 3,126,955 shares of common stock at $15.99 per pre-funded warrant
Spirit Airlines (SAVE 16.60, -0.68, -3.9%): lower Q3 outlook
T-Mobile US (TMUS 140.57, +0.46, +0.3%): to acquire spectrum in the 600 MHz band from Comcast (CMCSA) for total cash consideration of $1.2-3.3 bln
Novo Nordisk (NVO 191.17, -5.58, -2.8%): conducts a two-for-one stock split
American Airlines (AAL 13.70, -0.41, -2.9%): lowers Q3 adj EPS guidance, expects capacity to be at the high end of its initial guidance, revs expected to be approximately flat to prior expectations
Moderna (MRNA 109.60, +4.36, +4.1%): expands the field of MRNA medicine with positive clinical results across cancer rare disease and infectious disease
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a lower note. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: -0.5%, India's Sensex: +0.4%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: -0.8%.
In economic data:
Japan's August PPI 0.3% m/m (expected 0.1%; last 0.1%); 3.2% yr/yr, as expected (last 3.4%). Q3 BSI Large Manufacturing Conditions 5.4 (expected 0.2; last -0.4). September Reuters Tankan Index 4 (last 12)
South Korea's August Import Price Index -9.0% yr/yr (last -13.6%) and Export Price Index -7.9% yr/yr (last -12.8%). August Unemployment Rate 2.4% (last 2.8%)
Hong Kong's Q2 Industrial Production 2.6% yr/yr (last 3.8%)
New Zealand's August FPI 0.5% m/m (last -0.5%)
In news:
Japan's Finance Minister Suzuki reiterated that the Bank of Japan is expected to "fulfill its responsibility" regarding monetary policy.
Meanwhile, Deutsche Bank now expects that the BoJ will end its yield curve control policy in October and exit negative rates in January.
Developer Country Garden was able to restructure more yuan-denominated debt.
China's Vice Premier Guoqing said that his country is willing to deepen strategic ties with Russia.
Major European indices trade in the red. STOXX Europe 600: -0.9%, Germany's DAX: -0.8%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.9%, Italy's FTSE MIB: -1.0%, Spain's IBEX 35: -1.2%.
In economic data:
Eurozone's July Industrial Production -1.1% m/m (expected -0.7%; last 0.4%); -2.2% yr/yr (expected -0.3%; last -1.1%)
U.K.'s July GDP -0.5% m/m (expected -0.2%; last 0.5%); 0.0% yr/yr (expected 0.4%; last 0.9%). July Construction Output -0.5% m/m, as expected (last 1.6%); 2.8% yr/yr (expected 2.9%; last 4.6%). July Industrial Production -0.7% m/m (expected -0.6%; last 1.8%); 0.4% yr/yr (expected 0.5%; last 0.7%). July Manufacturing Production -0.8% m/m (expected -1.0%; last 2.4%); 3.0% yr/yr (expected 2.7%; last 3.1%). July trade deficit GBP14.06 bln (expected GBP16.00 bln; last GBP15.46 bln)
Italy's Q2 Unemployment Rate 7.6% (expected 8.0%; last 7.9%)
In news:
U.K.'s GDP in July contracted at its fastest monthly pace since December.
There is renewed speculation that the European Central Bank will announce another 25-bps rate hike tomorrow after Reuters reported that the ECB's forecast will show expectations for inflation to remain above 3.0% in 2024.
The central bank is also expected to lower its growth expectations for 2023 and 2024.
Bank of France expects Q3 growth in France between 0.1-0.2% qtr/qtr.
U.S. equity futures:
S&P 500 Futures +1 @ 4,463
DJIA Futures: -15 @ 34,631
Nasdaq 100 Futures: +6 @ 15,296
Overseas:
Europe: DAX -0.8%, FTSE -0.5%, CAC -0.9%
Asia: Nikkei -0.2%, Hang Seng -0.1%, Shanghai Composite -0.5%
Commodities:
Crude Oil +0.43 @ 89.27
Nat Gas +0.006 @ 2.749
Gold -0.55 @ 1934.55
Silver -0.212 @ 23.190
Copper -0.0003 @ 3.7917
Earnings/Guidance:
American Airlines ( AAL 0.00% ) lowers Q3 adj EPS guidance, expects capacity to be at the high end of its initial guidance, revs expected to be approximately flat to prior expectations
Apartment Investment & Mgmt ( AIV ▴ 2.03% ) in presentation slides guides 2023 metrics
Burford Capital ( BUR ▾ 1.35% ) reports Q2 results
CECO Environ ( CECO 0.00% ) acquires Kemco Systems; raises FY23 revs outlook
Evolution Petroleum ( EPM ▾ 1.45% ) misses by $0.06 (two ests), misses on revs (two ests)
InnovAge ( INNV 0.00% ) misses by $0.05, reports revs in-line; guides FY24 revs in-line
Mosaic ( MOS ▴ 0.67% ) releases July and August revenue and sales volumes
REV Group ( REVG ▾ 1.08% ) beats by $0.10, beats on revs; raises FY23 revs above consensus
Spirit Airlines ( SAVE ▾ 1.14% ) lower Q3 outlook
Sunstone Hotel ( SHO 0.00% ) generated total portfolio RevPAR growth of 1.4% in August; Q3 QTD RevPAR down 0.6% yr/yr; Maui fire impact to result in 75-100 bps of lower RevPAR growth due to lower travel volumes
United Comm Banks ( UCBI 0.00% ) expects an increase in third quarter charge-offs arising from an 8.7% participation in a $218.5 million nationally syndicated credit led by First Horizon Bank to a wholesale oil distributor
U.S. Bancorp ( USB ▴ 2.21% ) in presentation slides guides NII, reaffirms revenue outlook
News:
The European Central Bank expecting inflation to stay above 3% in 2024, bolstering case for interest rate hike on Thursday, according to Reuters
White House releases 'Biden Cancer Moonshot' updates including $240 million in additional investment this year
4D Molecular Therapeutics ( FDMT 0.00% ) names Uneek Mehra as Chief Financial & Business Officer
AllianceBernstein ( AB ▴ 0.72% ) announces that assets under management decreased to $694 bln during August 2023 from $704 bln at the end of July
Alnylam Pharma ( ALNY 0.00% ) halted today; FDA Advisory Committee to review supplemental New Drug Application for patisiran for the treatment of the cardiomyopathy of ATTR amyloidosis
Amazon's ( AMZN 0.00% ) contract delivery drivers to receive higher pay, according to CNBC
AN2 Therapeutics ( ANTX 0.00% ) commences Phase 3 Part of Phase 2/3 Clinical Trial Evaluating Epetraborole for Treatment-Refractory Mycobacterium avium complex (MAC) Lung Disease
Apple ( AAPL 0.00% ): China pushes back against reports that officials were told to stop using Apple products, according to Reuters
Artisan Partners Asset Mgmt ( APAM ▴ 0.58% ) reports that its August 2023 assets under management totaled $142.8 bln
Blackstone ( BX ▾ 0.85% ) announces the integration of its market-leading corporate credit, asset-based finance, and insurance groups into a single new unit, Blackstone Credit & Insurance
Calumet Specialty Products ( CLMT 0.00% ) CFO Vincent Donargo stepping down, effective December 31; David Lunin to serve as CFO Designate, effective immediately
Eaton ( ETN ▾ 4.26% ) invests $150 million to increase manufacturing of vital electrical infrastructure for North American businesses and communities
Ecovyst ( ECVT ▴ 2.38% ) Announces Planned Expansion of Kansas City, KS Silica Catalyst Production Capability
Evolution Petroleum ( EPM ▾ 1.45% ) and PEDEVCO (PED) enter into strategic partnership to jointly develop PEDEVCO's Chaveroo Field in the Permian Basin
Ford ( F ▴ 1.88% ) increases production of hybrid F-150, according to Bloomberg
Ford ( F ▴ 1.88% ) detailed F-150 trucks updates - plans to double the mix of hybrid trucks manufactured for the 2024 model year
Franklin Resources ( BEN ▴ 0.58% ) reports preliminary month-end assets under management of $1.42 trillion at August 31, 2023, compared to $1.45 trillion at July 31, 2023
Gilat Satellite ( GILT 0.00% ) received a contract for satellite network modernization at Ethio Telecom of Ethiopia
Hain Celestial ( HAIN 0.00% ) announces growth strategy to drive profitability; company launches formal restructuring program targeting annualized savings of $130-$150 million by FY27
Hertz Global ( HTZ 0.00% ) COO/President steps down; Search for new COO underway
HireRight Holdings ( HRT ▾ 2.02% ) authorizes additional $25 million share repurchase program
Invesco ( IVZ ▴ 0.97% ) reports August 31, 2023 assets under management of $1,527.7 billion, a decrease of 2.7% versus previous month-end
Jacobs Engineering ( J ▴ 0.01% ) selected to operate and maintain The City of Waterbury, Connecticut's 38 million gallon-per-day (mgd) conventional surface water treatment plant
Joint Corp ( JYNT 0.00% ) disclosed that JP Morgan Chase waived, on a one-time only basis, a default that has occurred under the Credit Agreement
Lazard ( LAZ ▴ 1.93% ) reports August AUM of 237.3 bln, down from $244.4 bln in July
Legacy Housing ( LEGH 0.00% ) announced that Jeff Fiedelman has joined the Company as Chief Financial Officer
Lockheed Martin ( LMT ▾ 0.67% ) awarded $841 mln U.S. Navy contract modification
Mainz Biomed's ( MYNZ 0.00% ) ColoFuture Study, evaluating its novel mRNA Biomarkers, reports groundbreaking topline results demonstrating sensitivity for colorectal cancer of 94% with specificity of 97% and advanced adenoma sensitivity of 81%
MGM Resorts ( MGM ▾ 1.66% ) releases statement on cybersecurity issue
Moderna ( MRNA 0.00% ) expands the field of MRNA medicine with positive clinical results across cancer, rare disease, and infectious disease
MorphoSys ( MOR 0.00% ) receives FDA Fast Track designation for tulmimetostat in endometrial cancer
New Found Gold Corp ( NFGC ▾ 0.72% ) intercepts 47 g/t Au over 10.55M & 115 g/t Au over 4.10M at Iceberg East; defines near-surface, high-grade segment of Iceberg-Iceberg East covering 570M strike
Northrop Grumman ( NOC ▾ 0.22% ) awarded $458 mln U.S. Navy contract
Novo Nordisk ( NVO ▾ 1.40% ) conducts a two-for-one stock split
Ocular Therapeutix ( OCUL 0.00% ) submitted a request for a Special Protocol Assessment for the first of the Company's two planned OTX-TKI pivotal trials
Premier ( PINC 0.00% ) promotes Leigh Anderson to COO, effective immediately
Restaurant Brands Int'l ( QSR ▾ 0.12% ) announces renewal of normal course issuer bid
Rocket Lab USA ( RKLB 0.00% ) signs contract with Leidos to launch four Hypersonic Accelerator Suborbital Test Electron (HASTE) missions
Rocket Pharmaceuticals ( RCKT 0.00% ) Reaches FDA Alignment on Pivotal Phase 2 Trial Design for RP-A501 in Danon Disease
Rocky Brands' ( RCKY 0.00% ) Senior Vice President, CFO, and Treasurer Sarah O'Connor has resigned effective immediately; COO Tom Robertson will assume CFO duties until permanent successor has been identified
Royal Caribbean ( RCL ▴ 1.37% ) opens its new Icon of the Seas vacations early after seeing the largest booking day and highest volume booking week in its history
RTX ( RTX ▾ 1.74% ) awarded $418 mln U.S. Army contract
RTX UK ( RTX ▾ 1.74% ) set to receive and integrate UK's first laser weapon system in October
Sana Biotechnology ( SANA 0.00% ) provides investor updates in presentation
Sigma Lithium ( SGML 0.00% ) is evaluating potential strategic alternatives
Standard Lithium ( SLI ▾ 2.80% ) acquires large parcel of land for South West Arkansas Project
Vale S.A. ( VALE ▾ 0.66% ) informs of final decision in administrative proceeding
Victory Capital ( VCTR 0.00% ) reports total assets under management of $161.9 bln as of August 31, 2023, down 2.4% from July 31, 2023
VinFast Auto ( VFS 0.00% ): Half its 2023 EV sales are to a taxi company controlled by VFS's parent, according to Barrons
Viridian Therapeutics ( VRDN 0.00% ) announces that CFO Kristian Humer resigned, effective September 12
Virtu Financial ( VIRT 0.00% ): SEC filed a complaint against the company for failing to safeguard customer info, according to Reuters
Wallbox ( WBX ▴ 0.37% ) announces a nationwide expansion with Best Buy (BBY), on BestBuy.com and in select stores, for its Pulsar Plus EV chargers
Western Midstream ( WES ▴ 0.38% ) repurchased 5.1 million common units representing limited partner interests in WES (Common Units) from a subsidiary of Occidental Petroleum Corporation (OXY)
M&A:
Applied Optoelectronics ( AAOI 0.00% ) disclosed it terminated Prime World sale
Ares Acquisition Corp. ( AAC 0.00% ) and X-energy announce additional committed capital and attractive strategic updates to business combination
T-Mobile US ( TMUS 0.00% ) to acquire spectrum in the 600 MHz band from Comcast (CMCSA) for total cash consideration of $1.2-3.3 bln
Syndicate:
Crinetics Pharmaceuticals ( CRNX 0.00% ) upsizes and prices offering of 11,441,648 shares of its common stock at $30.59 per share
Granite Ridge Resources ( GRNT ▾ 9.76% ) prices secondary offering of 7.1 mln shares of common stock at $5.00 per share
Rocket Pharmaceuticals ( RCKT 0.00% ) prices offering of 7,812,500 shares of its common stock at $16.00 per share and pre-funded warrants to purchase 3,126,955 shares of common stock at$15.99 per pre-funded warrant
SilverBow Resources ( SBOW ▴ 2.85% ) announces proposed public offering of 3 mln common stocks
Squarespace ( SQSP ▾ 4.16% ) files mixed shelf securities offering; prices offering of 5 mln shares of common stock at $29.00 per share
IPOs:
Arm Holdings ( ARM 0.00% ) received enough backing to secure at least the top end of its $47-51 IPO range, bringing valuation to $54.5 bln, according to Reuters
Birkenstock ( BIRK ) going public, according to the Wall Street Journal
Expected to Price:
Arm Holdings (Nasdaq: ARM): The designer of CPUs and other chips for smartphones, PCs, data centers, vehicles, and networking equipment is expected to price its 95.5 M share IPO between $47-$51.
Neumora Therapeutics (Nasdaq: NMRA): The clinical biopharmaceutical company developing therapies that target brain diseases as well as major depression and other neuropsychiatric brain disorders is expected to price its 14.7 M share IPO within a range of $16-$18.
RayzeBio (Nasdaq: RYZB): The biopharmaceutical company focused on building a market-leading somatostatin receptor type 2 franchise is expected to price its 14.4 M share IPO within a range of $16-$18.
Gapping Up/Down
Gapping up:
MYNZ +22.4%, RCKT +16.8%, RKLB +4.2%, SLI +3.5%, CRNX +2.5%, SGML +2.1%, RCKY +2%, MOR +2%, REVG +2%, HRT +1.7%, VFS +1.5%, JACK +1.2%, FIVE +1.1%
Gapping down:
EPM -13.9%, LAZY -6.7%, GRNT -4.9%, AAOI -4.8%, VIRT -4.2%, SAVE -3.8%, SBOW -3.7%, NVO -2.6%, SQSP -1.6%, BEN -0.9%, VRDN -0.8%, RTX -0.7%, VCTR -0.6%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Sealed Air (SEE) upgraded to Outperform from Neutral at Credit Suisse; tgt lowered to $47
Downgrades:
Ball Corp (BALL) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $58
Others:
B&G Foods (BGS) initiated with an Underperform at TD Cowen; tgt $10
Beyond Meat (BYND) initiated with an Underperform at TD Cowen; tgt $10
Campbell Soup (CPB) initiated with a Market Perform at TD Cowen; tgt $45
Conagra (CAG) initiated with a Market Perform at TD Cowen; tgt $32
Freshpet (FRPT) initiated with an Outperform at TD Cowen; tgt $90
General Mills (GIS) initiated with a Market Perform at TD Cowen; tgt $70
Hershey Foods (HSY) initiated with an Outperform at TD Cowen; tgt $250
Hostess Brands (TWNK) initiated with a Market Perform at TD Cowen; tgt $34
J.M. Smucker (SJM) initiated with an Outperform at TD Cowen; tgt $158
Kellogg (K) initiated with a Market Perform at TD Cowen; tgt $63
Kraft Heinz (KHC) initiated with a Market Perform at TD Cowen; tgt $35
Lamb Weston (LW) initiated with an Outperform at TD Cowen; tgt $125
McCormick (MKC) initiated with a Market Perform at TD Cowen; tgt $87
Mondelez Int'l (MDLZ) initiated with an Outperform at TD Cowen; tgt $82
TreeHouse Foods (THS) initiated with a Market Perform at TD Cowen; tgt $45
Utz Brands (UTZ) initiated with an Outperform at TD Cowen; tgt $18
Vital Farms (VITL) initiated with a Market Perform at TD Cowen; tgt $13
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Sept 9 (Briefing.com Consensus NA; Prior -2.9%)
08:30 ET: CPI for Aug (Briefing.com Consensus 0.6%; Prior 0.2%)
08:30 ET: Core CPI for Aug (Briefing.com Consensus 0.2%; Prior 0.2%)
10:30 ET: EIA Crude Oil Inventories for Sept 9 (Briefing.com Consensus NA; Prior -6.31M)
14:00 ET: Treasury Budget for Aug (Briefing.com Consensus NA; Prior -$221.0B)
Earnings:
Monday (Sep 11)
Morning: FCEL
Afternoon: CASY AVO ORCL
Tuesday (Sep 12)
Morning: CGNT
Wednesday (Sep 13)
Morning: CBRL REVG
Afternoon: SMTC
Thursday (Sep 14)
Afternoon: ADBE CPRT LEN
Asia & Europe detail:
Asia: Nikkei -0.2%, Hang Seng -0.1%, Shanghai Composite -0.5%
Equity indices in the Asia-Pacific region ended the midweek session on a lower note. Japan's Finance Minister Suzuki reiterated that the Bank of Japan is expected to "fulfill its responsibility" regarding monetary policy. Meanwhile, Deutsche Bank now expects that the BoJ will end its yield curve control policy in October and exit negative rates in January. Developer Country Garden was able to restructure more yuan-denominated debt. China's Vice Premier Guoqing said that his country is willing to deepen strategic ties with Russia.
In economic data:
Japan's August PPI 0.3% m/m (expected 0.1%; last 0.1%); 3.2% yr/yr, as expected (last 3.4%). Q3 BSI Large Manufacturing Conditions 5.4 (expected 0.2; last -0.4). September Reuters Tankan Index 4 (last 12)
South Korea's August Import Price Index -9.0% yr/yr (last -13.6%) and Export Price Index -7.9% yr/yr (last -12.8%). August Unemployment Rate 2.4% (last 2.8%)
Hong Kong's Q2 Industrial Production 2.6% yr/yr (last 3.8%)
New Zealand's August FPI 0.5% m/m (last -0.5%)
---Equity Markets---
Japan's Nikkei: -0.2%
Hong Kong's Hang Seng: -0.1%
China's Shanghai Composite: -0.5%
India's Sensex: +0.4%
South Korea's Kospi: -0.1%
Australia's ASX All Ordinaries: -0.8%
---FX---
USD/JPY: +0.2% to 147.39
USD/CNH: -0.3% to 7.2803
USD/INR: +0.1% to 82.94
Europe: DAX -0.8%, FTSE -0.5%, CAC -0.9%
Major European indices trade in the red. U.K.'s GDP in July contracted at its fastest monthly pace since December. There is renewed speculation that the European Central Bank will announce another 25-bps rate hike tomorrow after Reuters reported that the ECB's forecast will show expectations for inflation to remain above 3.0% in 2024. The central bank is also expected to lower its growth expectations for 2023 and 2024. Bank of France expects Q3 growth in France between 0.1-0.2% qtr/qtr.
In economic data:
Eurozone's July Industrial Production -1.1% m/m (expected -0.7%; last 0.4%); -2.2% yr/yr (expected -0.3%; last -1.1%)
U.K.'s July GDP -0.5% m/m (expected -0.2%; last 0.5%); 0.0% yr/yr (expected 0.4%; last 0.9%). July Construction Output -0.5% m/m, as expected (last 1.6%); 2.8% yr/yr (expected 2.9%; last 4.6%). July Industrial Production -0.7% m/m (expected -0.6%; last 1.8%); 0.4% yr/yr (expected 0.5%; last 0.7%). July Manufacturing Production -0.8% m/m (expected -1.0%; last 2.4%); 3.0% yr/yr (expected 2.7%; last 3.1%). July trade deficit GBP14.06 bln (expected GBP16.00 bln; last GBP15.46 bln)
Italy's Q2 Unemployment Rate 7.6% (expected 8.0%; last 7.9%)
---Equity Markets---
STOXX Europe 600: -0.9%
Germany's DAX: -0.8%
U.K.'s FTSE 100: -0.5%
France's CAC 40: -0.9%
Italy's FTSE MIB: -1.0%
Spain's IBEX 35: -1.2%
---FX---
EUR/USD: -0.2% to 1.0732
GBP/USD: -0.1% to 1.2470
USD/CHF: +0.3% to 0.8931
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