The S&P 500 futures are flat and are trading roughly in line with fair value. The Nasdaq 100 futures are up 17 points and are trading 0.1% above fair value. The Dow Jones Industrial Average futures are up 13 points and are trading 0.1% above fair value.
Equity futures are mixed. There has been a lot of earnings news to digest since yesterday close. In addition, there's still a lingering sense that the market is due for some consolidation following the big run of late. The Dow Jones Industrial Average has gone up for seven consecutive sessions.
The U.K. reported cooler than expected inflation figures for June. Total CPI rose 7.9% year-over-year (expected 8.2%) and core CPI rose 6.9% year-over-year (expected 7.1%).
The weekly MBA Mortgage Applications Index rose 1.1% after a 0.9% increase last week with refinancing applications up 7.0% and purchase applications down 1.0%.
Other U.S. economic data today includes:
8:30 a.m. ET: June Housing Starts (Briefing.com consensus 1.475 million; prior 1.631 million) and Building Permits (Briefing.com consensus 1.472 million; prior 1.491 million)
10:30 a.m. ET: Weekly EIA Crude Oil Inventories (prior +5.95 million barrels)
The 2-yr Treasury note yield is down four basis points to 4..73% and the 10-yr note yield is down four basis points to 3.76%.
In corporate news:
Carvana (CVNA 46.87, +7.02, +17.7%): reports Q2 results; beats on revs; announces agreement with noteholders that will provide the company significant flexibility by reducing total debt, extending maturities and lowering near-term cash interest expense
Goldman Sachs (GS 335.59, -1.68, -0.5%): misses by $0.08, beats on revs; increases dividend 10%
Cisco (CSCO 52.17, +0.93, +1.8%): upgraded to Overweight from Neutral at JPMorgan
Johnson & Johnson (JNJ 157.16, -1.90, -1.2%): files litigation against the U.S. Dept. of HHS as well as the Centers for Medicare and Medicaid Services to challenge the innovation-damaging drug pricing provisions of the Inflation Reduction Act (IRA)
Interactive Brokers (IBKR 82.42, -3.85, -4.5%): misses by $0.08, misses on revs
Western Alliance Bancorp (WAL 42.12, -0.95, -2.2%): misses by $0.01, beats on revs
Elevance Health (ELV 465.50, +21.81, +4.9%): beats by $0.26, beats on revs; guides FY23 EPS above consensus
M&T Bank (MTB 141.00, +6.24, +4.6%): beats by $0.89; Net interest income trending toward low end of the range; Loans up in Q3, down slightly in Q4; Deposits up slightly in H2 of 2023
U.S. Bancorp (USB 35.91, -0.64, -1.8%): beats by $0.07, reports revs in-line; guides Q3 revs below consensus; guides FY23 revs in-line
Brunswick (BC 80.00, -5.21, -6.1%): sees Q2 EPS and revs below consensus; sees FY23 EPS below forecast
Halliburton (HAL 37.15, -0.96, -2.5%): beats by $0.02, misses on revs
Baker Hughes (BKR 33.98, -1.06, -3.0%): beats by $0.06, reports revs in-line; sees Q3 and FY23 revs in line with estimates
AT&T (T 14.07, +0.62, +4.6%): halted plans to remove lead cables from Lake Tahoe, according to WSJ; believes less than 10% of its network has lead cables, according to Bloomberg
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +1.2%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: UNCH, India's Sensex: +0.5%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: +0.6%.
In economic data:
China's June FDI -2.7% YTD (last 0.1%)
Japan's July Reuters Tankan Index 3 (last 8)
Australia's June MI Leading Index 0.1% m/m (last -0.3%)
New Zealand's Q2 CPI 1.1% qtr/qtr (expected 1.0%; last 1.2%); 6.0% yr/yr (expected 5.9%; last 6.7%)
In news:
Bank of Japan Governor Ueda said that the 2.0% inflation target remains "some distance away."
China Economic Daily pushed back against speculation that the economy could tip into deflation, pointing to a resilient manufacturing foundation.
Meanwhile, Chinese banks are expected to lower their mortgage rates.
ANZ is maintaining its forecast for a 25-bps rate hike from the Reserve Bank of New Zealand in November after the release of hotter than expected CPI for Q2.
South Korea's minimum wage will be increased by 2.5% for 2024.
Major European indices trade in mixed fashion. STOXX Europe 600: +0.4%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +1.4%, France's CAC 40: +0.2%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: UNCH.
In economic data:
Eurozone's June CPI 0.3% m/m, as expected (last 0.0%); 5.5% yr/yr, as expected (last 6.1%). June Core CPI 0.4% m/m (expected 0.3%; last 0.2%); 5.5% yr/yr (expected 5.4%; last 5.3%). May Construction Output 0.18% m/m (expected 0.10%; last -0.70%)
U.K.'s June CPI 0.1% m/m (expected 0.4%; last 0.7%); 7.9% yr/yr (expected 8.2%; last 8.7%). June Core CPI 0.2% m/m (expected 0.4%; last 0.8%); 6.9% yr/yr (expected 7.1%; last 7.1%). June Input PPI -1.3% m/m (expected -0.3%; last -1.2%) and Output PPI -0.3% m/m, as expected (last -0.6%)
In news:
The U.K. reported cooler than expected inflation figures for June, causing the market to reduce its expectations for a 50-bps rate hike to essentially a toss-up.
Semiconductor equipment manufacturer ASML beat Q2 expectations and raised its guidance for FY23.
The European Central Bank will reportedly request that banks publish weekly liquidity updates.
U.S. equity futures:
S&P 500 Futures: UNCH @ 4,555
DJIA Futures: +8 @ 34,960
Nasdaq 100 Futures: +20 @ 15,861
Overseas:
Europe: DAX -0.1%, FTSE +1.4%, CAC +0.2%
Asia: Nikkei +1.2%, Hang Seng -0.3%, Shanghai Composite UNCH
Commodities:
Crude Oil +0.18 @ 75.84
Nat Gas -0.024 @ 2.605
Gold -4.05 @ 1976.75
Silver -0.056 @ 25.20
Copper -0.0318 @ 3.7977
Earnings/Guidance:
AAR Corp ( AIR â–´ 2.43% ) beats by $0.05, beats on revs
Ally Financial ( ALLY â–´ 1.96% ) beats by $0.03, reports revs in-line
ASML ( ASML 0.00% ) beats on top and bottom lines; sees Q3 revs above consensus
Baker Hughes ( BKR 0.00% ) beats by $0.06, reports revs in-line; sees Q3 and FY23 revs in line with estimates
Brunswick ( BC â–´ 0.61% ) sees Q2 EPS and revs below consensus; sees FY23 EPS below forecast
Carvana ( CVNA â–´ 8.95% ) reports Q2 results; beats on revs; announces agreement with noteholders that will provide the company significant flexibility
Citizens Financial Group ( CFG â–´ 3.67% ) beats by $0.04; provides Q3 outlook
Commerce Bancshares ( CBSH 0.00% ) beats by $0.08, beats on revs
Elevance Health ( ELV â–´ 1.49% ) beats by $0.26, beats on revs; guides FY23 EPS above consensus
First Horizon ( FHN â–´ 2.15% ) reports Q2 (Jun) results
Fulton Fincl ( FULT 0.00% ) beats by $0.05, net interest margin decreased 13 bps from Q1
GitLab ( GTLB 0.00% ) reiterates Q2 and FY24 guidance; announces appointment of Chris Weber as Chief Revenue Officer
Goldman Sachs ( GS â–´ 3.08% ) misses by $0.08, beats on revs; increases dividend 10%
Halliburton ( HAL â–´ 2.01% ) beats by $0.02, misses on revs
Hancock Whitney ( HWC 0.00% ) beats by $0.01, misses on revs
Harrow Health ( HROW 0.00% ) guides Q2 revenue above consensus
Interactive Brokers ( IBKR 0.00% ) misses by $0.08, misses on revs
J.B. Hunt Transport ( JBHT 0.00% ) misses by $0.09, misses on revs
M&T Bank ( MTB â–´ 2.60% ) beats by $0.89
NASDAQ ( NDAQ 0.00% ) beats by $0.05, beats on revs
Northern Trust ( NTRS 0.00% ) misses by $0.06, reports revs in-line
Omnicom ( OMC â–¾ 0.32% ) beats by $0.01, misses on revs
Pinnacle Finl ( PNFP 0.00% ) beats by $0.16, beats on revs
Rio Tinto ( RIO â–¾ 0.24% ) reports Q2 production
United Comm Banks ( UCBI 0.00% ) misses by $0.08, customer deposits up 2.3% on annualized basis
U.S. Bancorp ( USB â–´ 0.11% ) beats by $0.07, reports revs in-line; guides Q3 revs below consensus; guides FY23 revs in-line
Vale S.A. ( VALE â–¾ 0.28% ) provides Q2 production and sales data
Western Alliance Bancorp ( WAL â–´ 8.13% ) misses by $0.01, beats on revs
Woodside Energy Group ( WDS â–¾ 0.16% ) provides Q2 production udpate
News:
Higher than expected inflation in UK could impact next year's election in the country, according to the Wall Street Journal
White House Competition Council announces new actions to lower costs and marks second anniversary of President Biden's executive order on competition
Amarin ( AMRN 0.00% ) implements organizational restructuring to strengthen the company while driving patient access to VASCEPA/VAZKEPA Globally
Amarin ( AMRN 0.00% ) appoints Patrick Holt as President and CEO, effective immediately
American Airlines (AAL): pilot deal said to be in jeopardy, according to Reuters
AT&T ( T â–¾ 0.59% ) believes less than 10% of its network has lead cables, according to Bloomberg
AT&T ( T â–¾ 0.59% ) halted plans to remove lead cables from Lake Tahoe, according to the Wall Street Journal
AT&T ( T â–¾ 0.59% ) Shares Filing Made by Pacific Bell Telephone Company in U.S. District Court
Autolus Therapeutics ( AUTL 0.00% ) appoints Robert F. Dolski as Chief Financial Officer (CFO), effective August 7, 2023
Avery Dennison ( AVY â–´ 0.32% ) provides litigation update; potential liability related to this matter could be modestly above the Company's previously disclosed range
Banco Bradesco ( BBD â–¾ 1.15% ) informs to its shareholders, customers and the market that it became aware that its unit Bradesco Securities - New York was the victim of a cybersecurity incident, which may have resulted in unauthorized viewing of employees, corporate, and customer data
BioCryst Pharma ( BCRX 0.00% ) selects Er-Kim Pharmaceuticals as commercial partner for ORLADEYO in Turkey
Black Hills Corp ( BKH â–´ 1.17% ) receives approval for new rates in Colorado
Black Stone Minerals ( BSM â–´ 1.23% ) and Longroad Energy announces multi-year mineral rights agreement
Block ( SQ â–´ 1.24% ) files antitrust lawsuit against Visa (V) and Mastercard (MA), according to Bloomberg
Chemours ( CC â–´ 0.81% ) and Honeywell (HON) engaging with authorities in European Union to stop illegal fluorinated gas refrigerants from entering the European Union at the Greek border
Constellation Brands ( STZ â–¾ 0.09% ) announces Cooperation and Information Sharing Agreements with Elliott Investment Management; appoints new independent directors to the Board
CytoSorbents ( CTSO 0.00% ) names Alexander D'Amico as CFO
FibroGen ( FGEN 0.00% ) approved a restructuring plan - includes an expected reduction to U.S. workforce of approximately 32%
Granite Constr ( GVA â–´ 2.29% ) awarded an ~ $23 mln contract by the California Department of Transportation (Caltrans) to upgrade Highway 101 in Mendocino, California
GreenPower Motor ( GP 0.00% ) announces revocation of cease trade order
Kenon Holdings ( KEN â–´ 5.52% ) appoints Deepa Joseph as Interim CFO
Howard Hughes ( HHC â–´ 1.73% ) provides update on previously announced holding company structure: will trade under the ticker "HHH" on August 14
LendingTree ( TREE 0.00% ) COO John David Moriarty to leave, effective July 31
Merck ( MRK â–´ 0.36% ) announces Phase 3 KEYNOTE-A18 trial met primary endpoint of progression-free survival in patients with newly diagnosed high-risk locally advanced cervical cancer
Microsoft ( MSFT 0.00% ) accelerating AI transformation through partnership
New Found Gold Corp. ( NFGC â–´ 0.60% ) Intercepts 4.4 g/t Au Over 43m, Extends Strike Length at Keats West to 315m
Nissan ( NSANY ) will announce new alliance with Renault within days, according to Reuters
Qiagen ( QGEN â–¾ 0.22% ) expands its digital PCR offering for the development of cell and gene therapies in the biopharma industry
RTX ( RTX â–¾ 0.58% ) awarded $256 mln U.S. Navy contract modification
Shopify ( SHOP â–¾ 2.07% ) discussing possibility it could invest in online wholesale marketplace Faire, according to Business Insider
Starbox Group's ( STBX 0.00% ) Starbox Rebates Sdn. Bhd. enters into a software licensing agreement with MY Rebates PH Solutions Corporation
Tellurian ( TELL â–´ 5.30% ) entered into a binding commitment letter with a fund of Blue Owl Real Estate Capital regarding the sale and leaseback of approximately 800 acres of land
Tesla ( TSLA 0.00% ) requests German approval to make changes to plant, according to Reuters
Yum China ( YUMC â–¾ 3.00% ) announces disclosure under Hong Kong Stock Exchange rules in relation to a possible quarterly dividend
Zai Lab ( ZLAB 0.00% ): JAMA Oncology Publishes Data from Zai Lab Study Demonstrating Significant Reduction in Disease Progression or Death with ZEJULA (Niraparib) Maintenance Therapy in Broad Population of Advanced Ovarian Cancer Patients
M&A:
Alpha Partners Technology Merger Corp. ( APTM 0.00% ) signed a non-binding letter-of-intent for a business combination with Glowforge, creator of award-winning 3D laser printers
ATS Corp ( ATS â–´ 1.27% ) has acquired Odyssey Validation Consultants Limited; financial terms of the transaction were not disclosed
Catalyst Pharma ( CPRX 0.00% ) acquires exclusive North American license for vamorolone for duchenne muscular dystrophy from Santhera Pharmaceuticals
Co. Brasileira ( CBD â–¾ 0.68% ) received new offer that aims to acquire 51% of xito's share
Extra Space Storage ( EXR â–¾ 3.91% ) and Life Storage (LSI) shareholders approve previously proposed merger
Harrow Health ( HROW 0.00% ) acquires U.S. and Canadian commercial rights for VEVYE from Novaliq GmbH; also acquires Santen's branded ophthalmic portfolio
Microsoft ( MSFT 0.00% ) and Activision (ATVI) are still committed to completing merger, according to the Wall Street Journal
National Grid ( NGG â–¾ 0.77% ) reports sale of 20% of National Gas and new minority interest option
StarTek (SRT) receives takeover offer from CSP Fund at $3.80/sh
Stratasys ( SSYS 0.00% ) Board of Directors Unanimously Rejects Nano Dimension's (NNDM) $25.00 Revised Partial Tender Offer
VMware ( VMW â–¾ 0.46% ): A CMA panel has provisionally found Broadcom's (AVGO) deal to buy VMware would not weaken competition in the supply of critical computer server products; CMA provisionally clears the deal
Western Asset Mortgage ( WMC â–´ 0.11% ) to engage in discussions with AG Mortgage Investment Trust (MITT)
Syndicate:
Acumen Pharmaceuticals ( ABOS 0.00% ) prices offering of 16,774,193 shares of its common stock at $7.75 per share
argenx ( ARGX 0.00% ) prices offering of 1,580,981 ADSs at $490.00 per ADS and 663,918 ordinary shares at 436.37 per ordinary share
Aurora Innovation ( AUR 0.00% ) commences $200 mln public offering of its common stock
Harrow Health ( HROW 0.00% ) prices underwritten registered public offering of 3,380,282 shares of its common stock at a price of $17.75 per share
HighPeak Energy ( HPK 0.00% ) commences public offering of common stock
Krystal Biotech ( KRYS 0.00% ) files for 1,729,729 share common stock offering by selling shareholders
Lilium N.V. ( LILM 0.00% ) arranges capital raise for $192 mln; remains on track to achieve its first manned flight in 2H24
Westrock Coffee ( WEST 0.00% ) announces additional $25 mln equity investment
IPOs:
Priced to Trade:
ODDITY Tech (Nasdaq: ODD): The consumer tech platform that is built to transform the global beauty and wellness market is expected to price its 10.5 M share IPO between $27-$30
Gapping Up/Down
Gapping up:
SRT +14.7%, LILM +5.9%, T +5.4%, WMC +5.3%, ELV +3.7%, RTX +2.8%, MTB +2.4%, ARGX +2.3%, AIR +2.1%, PNFP +2%, YUMC +1.7%, FULT +1.6%, STZ +1.5%, NGG +1.4%, BSM +1.3%, SHOP +1.2%, NGMS +1.1%, EXR +1.1%, SSYS +1.1%, JBHT +1.1%, MITT +1%, CBSH +0.8%, BKH +0.7%
Gapping down:
AQMS -24.3%, AUR -14.3%, AMRN -14%, HPK -9.1%, UCBI -7.7%, CVNA -7.5%, OMC -6.8%, IPG -5.7%, IBKR -5.5%, GP -4%, HYPR -3.2%, HWC -2.6%, CC -2%, WAL -2%, GTLB -1.9%, RIO -1.7%, QGEN -1.6%, KRYS -1.4%, ASML -1.2%, VALE -0.9%, LSI -0.8%, HHC -0.8%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Bluebirdbio (BLUE) upgraded to Buy from Neutral at BofA Securities; tgt raised to $10
Forward Air (FWRD) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $130
Downgrades:
Chord Energy (CHRD) downgraded to Market Perform from Outperform at TD Cowen; tgt $151
Global-E Online (GLBE) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $45
Hancock Whitney (HWC) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $46
PotlatchDeltic (PCH) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $55
Others:
Axonics Modulation (AXNX) initiated with an Outperform at Robert W. Baird; tgt $69
Boston Scientific (BSX) initiated with an Outperform at Robert W. Baird; tgt $59
Compass Minerals (CMP) initiated with a Neutral at BTIG Research
Edwards Lifesciences (EW) initiated with an Outperform at Robert W. Baird; tgt $107
Inari (NARI) initiated with an Outperform at Robert W. Baird; tgt $79
Inspire Medical Systems (INSP) initiated with an Outperform at Robert W. Baird; tgt $371
Intuitive Surgical (ISRG) initiated with an Outperform at Robert W. Baird; tgt $377
iRhythm (IRTC) initiated with an Outperform at Robert W. Baird; tgt $130
LivaNova (LIVN) initiated with a Neutral at Robert W. Baird; tgt $56
Medtronic (MDT) initiated with a Neutral at Robert W. Baird; tgt $90
Nevro (NVRO) initiated with a Neutral at Robert W. Baird; tgt $26
Nyxoah S.A. (NYXH) initiated with a Neutral at Robert W. Baird
Orthofix (OFIX) resumed with a Buy at BTIG Research; tgt $27
Penumbra (PEN) initiated with an Outperform at Robert W. Baird; tgt $375
Ribbon Communications (RBBN) initiated with a Buy at Craig Hallum; tgt $5.50
Senseonics (SENS) initiated with an Underperform at Jefferies; tgt $0.50
Texas Roadhouse (TXRH) initiated with a Buy at Guggenheim; tgt $130
TransMedics Group (TMDX) initiated with an Outperform at Robert W. Baird
Econ Data:
07:00 ET: MBA Mortgage Applications Index for July 15 (Briefing.com Consensus NA; Prior 0.9%)
08:30 ET: Housing Starts for June (Briefing.com Consensus 1475K; Prior 1631K)
08:30 ET: Building Permits for June (Briefing.com Consensus 1472K; Prior 1491K)
10:30 ET: EIA Crude Oil Inventories for July 15 (Briefing.com Consensus NA; Prior +5.95M)
Earnings:
Monday (Jul 17)
Afternoon: ELS
Tuesday (Jul 18)
Morning: BAC BK SCHW LMT MS NVS PNC PLD SYF
Afternoon: AIR FULT HWC IBKR JBHT OMC PNFP UCBI WAL
Wednesday (Jul 19)
Morning: ALLY ASML BKR CFG CBSH ELV FHN GS HAL MTB NDAQ NTRS USB
Afternoon: AA CALX CNS COLB CCI DFS EFX FNB FR IBM KMI LVS LBRT MRTN NBHC NFLX REXR SLG STLD TSLA UAL WTFC ZION
Thursday (Jul 20)
Morning: ABT AAL BMI BHLB BX DHI EWBC FITB FCX GPC HOMB JNJ KEY MAN MKTX MMC NEM NOK PM POOL SAP SNA TSM TCBI TRV TFC WBS WNS
Afternoon: ASB BANF OZK COF CSX FFBC GBCI HTH ISRG KNX PPG WRB
Friday (Jul 21)
Morning: AXP ALV AN CMA HBAN IPG RF ROP SXT SLB
Asia & Europe detail:
Asia: Nikkei +1.2%, Hang Seng -0.3%, Shanghai Composite UNCH
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Bank of Japan Governor Ueda said that the 2.0% inflation target remains "some distance away." China Economic Daily pushed back against speculation that the economy could tip into deflation, pointing to a resilient manufacturing foundation. Meanwhile, Chinese banks are expected to lower their mortgage rates. ANZ is maintaining its forecast for a 25-bps rate hike from the Reserve Bank of New Zealand in November after the release of hotter than expected CPI for Q2. South Korea's minimum wage will be increased by 2.5% for 2024.
In economic data:
China's June FDI -2.7% YTD (last 0.1%)
Japan's July Reuters Tankan Index 3 (last 8)
Australia's June MI Leading Index 0.1% m/m (last -0.3%)
New Zealand's Q2 CPI 1.1% qtr/qtr (expected 1.0%; last 1.2%); 6.0% yr/yr (expected 5.9%; last 6.7%)
---Equity Markets---
Japan's Nikkei: +1.2%
Hong Kong's Hang Seng: -0.3%
China's Shanghai Composite: UNCH
India's Sensex: +0.5%
South Korea's Kospi: UNCH
Australia's ASX All Ordinaries: +0.6%
---FX---
USD/JPY: +0.8% to 139.91
USD/CNH: +0.5% to 7.2286
USD/INR: +0.1% to 82.09
Europe: DAX -0.1%, FTSE +1.4%, CAC +0.2%
Major European indices trade in mixed fashion. The U.K. reported cooler than expected inflation figures for June, causing the market to reduce its expectations for a 50-bps rate hike to essentially a toss-up. Semiconductor equipment manufacturer ASML beat Q2 expectations and raised its guidance for FY23. The European Central Bank will reportedly request that banks publish weekly liquidity updates.
In economic data:
Eurozone's June CPI 0.3% m/m, as expected (last 0.0%); 5.5% yr/yr, as expected (last 6.1%). June Core CPI 0.4% m/m (expected 0.3%; last 0.2%); 5.5% yr/yr (expected 5.4%; last 5.3%). May Construction Output 0.18% m/m (expected 0.10%; last -0.70%)
U.K.'s June CPI 0.1% m/m (expected 0.4%; last 0.7%); 7.9% yr/yr (expected 8.2%; last 8.7%). June Core CPI 0.2% m/m (expected 0.4%; last 0.8%); 6.9% yr/yr (expected 7.1%; last 7.1%). June Input PPI -1.3% m/m (expected -0.3%; last -1.2%) and Output PPI -0.3% m/m, as expected (last -0.6%)
---Equity Markets---
STOXX Europe 600: +0.4%
Germany's DAX: -0.1%
U.K.'s FTSE 100: +1.4%
France's CAC 40: +0.2%
Italy's FTSE MIB: -0.1%
Spain's IBEX 35: UNCH
---FX---
EUR/USD: -0.1% to 1.1216
GBP/USD: -0.9% to 1.2913
USD/CHF: +0.1% to 0.8585
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