The S&P 500 futures are down 6 points and are trading 0.1% below fair value. The Nasdaq 100 futures are down 90 points and are trading 0.5% below fair value. The Dow Jones Industrial Average futures are up 35 points and are trading 0.1% above fair value.
Stock futures are mixed as market participants digest a slate of mixed earnings news and continue to contend with concerns about the market being overbought and due for a pullback.
Following their massive gains to start the year, Tesla (TSLA) and Netflix (NLFX) sport sizable declines after their second quarter earnings reports, which is weighing on the broader market. The Dow Jones Industrial Average futures, meanwhile, outperform thanks to gains in Travelers (TRV) and Johnson & Johnson (JNJ) following their earnings results.
In central bank news, the People's Bank of China made no changes to its one-year and five-year loan prime rates.
Treasury yields are moving higher. The 2-yr note yield is up five basis points to 4.81% and the 10-yr note yield is up four basis points to 3.78%.
Market participants will receive the following economic data today:
8:30 ET: Weekly Initial Claims (Briefing.com consensus 240,000; prior 237,000), Continuing Claims (prior 1.729 mln), and July Philadelphia Fed Survey (Briefing.com consensus -9.0; prior -13.7)
10:00 ET: June Existing Home Sales (Briefing.com consensus 4.25 mln; prior 4.30 mln) and June Leading Indicators (Briefing.com consensus -0.6%; prior -0.7%)
10:30 ET: Weekly natural gas inventories (prior +49 bcf)
In corporate news:
Tesla (TSLA 279.58, -11.68, -4.0%): beats by $0.11, beats on revs, GAAP gross margin of 18.2%, reaffirms FY23 guidance for deliveries of about 1.8 mln
Netflix (NFLX 447.83, -29.76, -6.2%): beats by $0.44, misses on revs; guides Q3 EPS above consensus, revs below consensus
United Airlines (UAL 56.26, +1.46, +2.7%): beats by $0.99, beats on revs; guides FY23 EPS above consensus
Johnson & Johnson (JNJ 161.00, +2.26, +1.4%): beats by $0.18, beats on revs; raises FY23 EPS above consensus, revs in-line
Anheuser-Busch InBev (BUD 58.82, +0.39, +0.7%): upgraded to Overweight from Equal-Weight at Morgan Stanley
Taiwan Semiconductor Manufacturing (TSM 99.50, -3.56, -3.5%): beats by $0.07; beats on revs; sees Q3 revs in-line with consensus
IBM â–´ 0.09% (IBM 134.27, -1.21, -0.9%): beats by $0.17, reports revs in-line; reaffirms FY23 revenue growth and free cash flow view
Travelers (TRV 173.16, +2.60, +1.5%): misses by $1.99, beats on revs
American Airlines (AAL 18.36, -0.24, -1.3%): beats by $0.33, beats on revs; guides Q3 EPS in-line; guides FY23 EPS in-line
D.R. Horton (DHI 132.75, +4.90, +3.8%): beats by $1.07, beats on revs; guides FY23 revs above consensus
Las Vegas Sands (LVS 58.20, -1.46, -2.5%): beats by $0.02, beats on revs; reinstates quarterly dividend at $0.20/share
Discover Financial Services (DFS 106.99, -14.86, -12.2%): misses by $0.13, reports revs in-line; in discussions with its regulators regarding card product misclassification; pauses share repurchases
Pool (POOL 345.80, -20.17, -5.5%): misses by $0.21, misses on revs; lowers FY23 EPS below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: -1.3%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.9%, India's Sensex: +0.7%, South Korea's Kospi: -0.3%, Australia's ASX All Ordinaries: +0.1%.
In economic data:
Japan's adjusted June trade deficit JPY550 bln (expected deficit of JPY900 bln; last deficit of JPY780 bln). June Imports -12.9% yr/yr (expected -11.3%; last -9.8%) and Exports 1.5% yr/yr (expected 2.2%; last 0.6%)
Australia's June Employment Change 32,600 (expected 15,000; last 76,600) and full employment change 39,300 (last 61,700). June Unemployment Rate 3.5% (expected 3.6%; last 3.5%) and June Participation Rate 66.8% (expected 66.9%; last 66.9%)
Hong Kong's June CPI 0.2% m/m (last -0.3%); 1.9% yr/yr, as expected (last 2.0%)
In news:
The People's Bank of China made no changes to its one-year and five-year loan prime rates. The central bank also announced an increase to the cross-border macro ratio, opening the door to increased overseas borrowing by Chinese companies.
China State Council repeated that it will work to "optimize conditions" for the private economy.
Australia reported better than expected employment figures for June, but ANZ maintained its view that the Reserve Bank of Australia is done raising rates.
Major European indices trade on a higher note with the U.K.'s FTSE (+0.6%) and Spain's IBEX (+0.6%) showing relative strength. STOXX Europe 600: +0.2%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.6%.
In economic data:
Eurozone's May Current Account surplus EUR9.1 bln (expected surplus of EUR2.5 bln; last surplus of EUR3.8 bln)
Germany's June PPI -0.3% m/m (expected -0.4%; last -1.4%); 0.1% yr/yr (expected 0.0%; last 1.0%)
France's July Business Survey 100, as expected (last 100)
Spain's May trade deficit EUR3.11 bln (expected deficit of EUR6.99 bln; last deficit of EUR4.38 bln)
Swiss June trade surplus CHF4.823 bln (expected surplus of CHF4.031 bln; last surplus of CHF5.442 bln)
In news:
European Central Bank policymaker Stournaras said that another 25-bps rate increase would be sufficient, and that excessive tightening could hurt the economy.
Bank of England policymaker Ramsden said that he sees a potential for increasing the pace of the central bank's balance sheet reduction.
EasyJet reported solid quarterly results and issued upbeat guidance due to strong booking trends.
U.S. equity futures:
S&P 500 Futures: -6 @ 4,560
DJIA Futures: +41 @ 35,102
Nasdaq 100 Futures: -86 @ 15,740
Overseas:
Europe: DAX +0.2%, FTSE +0.6%, CAC +0.4%
Asia: Nikkei -1.3%, Hang Seng -0.2%, Shanghai Composite -0.9%
Commodities:
Crude Oil +0.39 @ 75.68
Nat Gas +0.072 @ 2.675
Gold +3.65 @ 1984.45
Silver +0.020 @ 25.407
Copper +0.0687 @ 3.8827
Earnings/Guidance:
ABB Ltd ( ABBNY ) reports Q2 results
Abbott Labs ( ABT â–´ 0.31% ) beats by $0.03, beats on revs; reaffirms FY23 EPS guidance
Alcoa ( AA â–¾ 0.57% ) beats by $0.14, reports revs in-line; leaves 2023 alumina and aluminum shipments unchanged
American Airlines ( AAL 0.00% ) beats by $0.33, beats on revs; guides Q3 EPS in-line; guides FY23 EPS in-line
Anglo American ( NGLOY ) reports Q2 trading statement; Coppoer production increased 56% yr/yr
Berkshire Hills Bancorp ( BHLB â–´ 3.06% ) misses by $0.02
BHP Group ( BHP â–¾ 1.13% ) reports production in FY23 trading statement
Blackstone ( BX â–´ 1.21% ) beats by $0.01, beats on revs
Calix Networks ( CALX â–¾ 0.59% ) beats by $0.05, beats on revs; guides Q3 EPS in-line, revs in-line
Cohen & Steers ( CNS â–´ 1.60% ) misses by $0.02
Columbia Banking ( COLB 0.00% ) reports Q2 (Jun) results, misses on revs
Crown Castle ( CCI â–´ 2.66% ) beats by $0.03, reports revs in-line
Discover Financial Services ( DFS â–´ 0.12% ) misses by $0.13, reports revs in-line; pauses share repurchases
D.R. Horton ( DHI â–¾ 0.02% ) beats by $1.07, beats on revs; guides FY23 revs above consensus
Endeavour Silver ( EXK â–¾ 1.56% ) reports Q2 2023 production results; in-line with annual guidance
Equifax ( EFX â–¾ 0.13% ) beats by $0.03, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs in-line
Fifth Third ( FITB 0.00% ) misses by $0.01
First Industrial Realty ( FR â–¾ 0.27% ) beats by $0.01, beats on revs; sees FY23 FFO in-line with consensus
First Majestic Silver ( AG â–´ 1.01% ) produces 6.3 million AgEq Oz in Q2
F.N.B. Corp ( FNB â–´ 2.34% ) beats by $0.01, reports revs in-line
Genmab ( GMAB 0.00% ) reports Q2 net sales of DARZALEX
Genuine Parts ( GPC â–´ 0.48% ) beats by $0.10, reports revs in-line; guides FY23 EPS above consensus, revs below consensus
IBM ( IBM â–´ 0.09% ) beats by $0.17, reports revs in-line; reaffirms FY23 revenue growth and free cash flow view
Johnson & Johnson ( JNJ â–¾ 0.20% ) beats by $0.18, beats on revs; raises FY23 EPS above consensus, revs in-line
Kenvue ( KVUE â–´ 0.77% ) beats by $0.02, beats on revs
KeyCorp ( KEY â–´ 6.54% ) misses by $0.05, misses on revs
Kinder Morgan ( KMI â–´ 0.06% ) reports EPS in-line; reaffirms FY23 EPS guidance
Las Vegas Sands ( LVS â–¾ 0.57% ) beats by $0.02, beats on revs; reinstates quarterly dividend at $0.20/share
Liberty Energy ( LBRT â–´ 2.05% ) misses by $0.03, misses on revs
Manpower ( MAN â–´ 1.81% ) misses by $0.04, reports revs in-line; guides Q3 EPS below consensus
MarketAxess ( MKTX 0.00% ) beats by $0.02, reports revs in-line
Marsh McLennan ( MMC â–¾ 0.40% ) beats by $0.08, beats on revs
Marten Transport ( MRTN 0.00% ) misses by $0.01, misses on revs
National Bank ( NBHC â–´ 3.41% ) misses by $0.07, average total deposits increased by 14.2% annualized
Netflix ( NFLX 0.00% ) beats by $0.44, misses on revs; guides Q3 EPS above consensus, revs below consensus
Newmont Goldcorp ( NEM â–´ 0.44% ) misses by $0.08, misses on revs
Nokia ( NOK â–´ 1.55% ) reports in-line results; misses on revs
Philip Morris ( PM â–´ 0.43% ) International beats by $0.10, beats on revs; guides FY23 EPS below consensus
Pool ( POOL 0.00% ) misses by $0.21, misses on revs; lowers FY23 EPS below consensus
Rexford Industrial Realty ( REXR â–´ 1.75% ) reports FFO in-line, revs in-line; guides FY23 FFO below consensus
Select Medical ( SEM 0.00% ) guides Q2 earnings and revs ahead of consensus
SL Green Realty ( SLG â–´ 5.64% ) beats by $0.09, beats on revs
Snap-On ( SNA â–¾ 0.26% ) beats by $0.31, reports revs in-line
Steel Dynamics ( STLD 0.00% ) beats by $0.03, misses on revs
Synovus ( SNV â–´ 1.54% ) reported Q2 adjusted EPS of $1.16 vs $1.15 FactSet consensus; revs +9% yr/yr to $567.8 mln vs. $570.0 mln FactSet consensus
Taiwan Semiconductor Manufacturing ( TSM â–¾ 0.09% ) beats by $0.07; beats on revs; sees Q3 revs in-line with consensus
Tesla ( TSLA 0.00% ) beats by $0.11, beats on revs, GAAP gross margin of 18.2%, reaffirms FY23 guidance for deliveries of about 1.8 mln
Texas Capital ( TCBI 0.00% ) beats by $0.38
Travelers ( TRV â–¾ 0.27% ) misses by $1.99, beats on revs
Truist ( TFC â–´ 3.13% ) reports Q2 (Jun) results, revs in-line
United Airlines ( UAL 0.00% ) beats by $0.99, beats on revs; guides FY23 EPS above consensus
Webster Financial ( WBS â–´ 2.78% ) beats by $0.03, misses on revs
Wintrust Fin ( WTFC 0.00% ) reports EPS in-line, revs in-line
WNS ( WNS â–´ 0.37% ) beats by $0.08, beats on revs; guides FY24 EPS in-line, revs in-line
Zions Bancorp ( ZION 0.00% ) beats by $0.03, beats on revs
News:
China mulling easing home buying restrictions to encourage more housing purchases, according to Bloomberg
US intelligence believes Russia could attack grain ships in Black Sea, according to Bloomberg
Fed will soon launch instant payment system, according to Reuters
Albemarle ( ALB â–¾ 1.90% ) amends Marbl Lithium joint venture
Alnylam ( ALNY 0.00% ) announces publication of phase 1 study results for Zilebesiran in the New England Journal of Medicine
Armstrong World Industries ( AWI â–´ 1.20% ) increases share repurchase program by $500 million and extends the the program through December 31, 2026
Atour Lifestyle Hldgs. Ltd. ( ATAT 0.00% ) announced the appointment of Mr. Jianfeng Wu as Co-Chief Financial Officer of the Company, effective upon today
Axalta Coating Systems ( AXTA â–¾ 0.51% ) appoints Carl Anderson as CFO, effective August 14
Biogen ( BIIB 0.00% ) and Eisai (ESAIY) present latest analysis of Lecanemab's effect on biomarker changes and subcutaneous dosing at The Alzheimer's Association International Conference (AAIC) 2023
GlaxoSmithKline ( GSK â–´ 1.12% ) grants LimmaTech Biologics License to develop and commercialize Shigella Vaccine
GXO Logistics ( GXO â–´ 1.01% ) has signed a multi-year agreement with HEINEKEN (HEINY)
Hamilton Lane ( HLNE 0.00% ) appoints Jeffrey Armbrister as CFO, Andrew Schardt as Vice Chairman
HUTCHMED ( HCM 0.00% ) receives Breakthrough Therapy Designation in China for Fruquintinib combination with Sintilimab for treatment of advanced endometrial cancer
KBR ( KBR â–¾ 2.43% ) awarded a contract to provide mission-critical labor at three locations in the U.S. Central Command (CENTCOM) area of operations
Kelly Services ( KELYA 0.00% ) announces strategic restructuring actions; expects to incur a restructuring charge from these actions in the range of $7.5-$8.5 mln
Kenvue ( KVUE â–´ 0.77% ) initiates quarterly cash dividend; declared a dividend payable in the third quarter of 2023 of $0.20 per share on the Company's common stock
Lockheed Martin ( LMT â–¾ 0.92% ) awarded $221 mln U.S. Army Other Transaction Authority agreement
Nanobiotix ( NBTX 0.00% ) announces first patient injected in new phase 1/2 study evaluating radiotherapy-activated NBTXR3 plus Anti-PD-1 for patients with advanced cancers
Nano Dimension ( NNDM 0.00% ) Expands on Intentions Regarding Stratasys (SSYS) Board Changes
Parsons ( PSN â–¾ 0.67% ) announces that Texas Department of Transportation's Waco District selects company for highway expansion project
Parsons ( PSN â–¾ 0.67% ) was selected by Naval Facility Engineering Systems Command Southwest to provide project performance assessment and programmatic risk management services for the Facility Engineering Command's construction program
Pfizer ( PFE â–´ 0.55% ) announces New England Journal of medicine publication on Group B Streptococcus (GBS) maternal vaccine candidate
Southwest Gas ( SWX â–´ 1.39% ): Julie Williams steps down as COO to new role with company
TSMC ( TSM â–¾ 0.09% ) delays Arizona plant start until 2025 amid labor issues, according to Nikkei
XPO, Inc. ( XPO â–´ 5.37% ) appoints Kyle Wismans as CFO, effective August 11
M&A:
Catalent ( CTLT â–´ 1.16% ): Elliott aiming to purchase significant stake in Catalent, according to the Wall Street Journal
Dell ( DELL â–´ 0.87% ) signs agreement to acquire Moogsoft
Grab ( GRAB 0.00% ) signs agreement to acquire Trans-Cab through its GrabRentals arm
Heritage-Crystal Clean ( HCCI 0.00% ) to be acquired by J.F. Lehman & Company for $1.2 billion
Liberty Global ( LBTYA 0.00% ) acquires 93.23% of Telenet Group and will reopen its offer on Aug 24
Syndicate:
FedEx ( FDX â–¾ 0.65% ) files mixed shelf securities offering
Hallador Energy files for 5,262,635 share common stock offering by selling shareholders; files for $150 mln mixed securities shelf offering
VSE Corp ( VSEC 0.00% ) commences common stock offering
Wallbox ( WBX â–´ 1.57% ) files for 18,832,432 share common stock offering by selling shareholders
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Downul>
Gapping up:
NBTX 0.00% +8.2%, HCCI +7.2%, ELS +4.7%, ZION +4.6%, HCM +4.1%, SEM +3.9%, CALX +3.1%, UAL +2.9%, SFIX +2.6%, AWI +2.6%, WNS +2.5%, PSN +2.3%, BHP +2.3%, REXR +1.5%, LBTYA +1.2%
Gapping down:
DFS â–´ 0.12% -13%, VSEC -6.5%, BANR -6.5%, NFLX -6.1%, EFX -5.3%, NBHC -5.3%, LBRT -5.1%, CCI -5.1%, LVS -3.9%, SLG -3.5%, TSLA -3%, TFC -3%, ROKU -2.2%, OFLX -2.2%, MRTN -2.1%, TSM -2%, AXTA -1.8%, FR -1.2%, COLB -1.1%, SWX -1%, CNS -1%, WBD -0.9%, PARA -0.9%, IBM -0.9%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Anheuser-Busch InBev (BUD) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $68.50
Prologis (PLD) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $141
XP (XP) upgraded to Neutral from Underperform at Credit Suisse; tgt raised to $26
Downgrades:
Avis Budget (CAR) downgraded to Hold from Buy at Deutsche Bank; tgt $263
Carvana (CVNA) downgraded to Underperform from Sector Perform at RBC Capital Mkts; tgt raised to $30
Diageo plc (DEO) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $155
Owens Corning (OC) downgraded to Hold from Buy at The Benchmark Company
Others:
Acumen Pharmaceuticals (ABOS) resumed with a Buy at BofA Securities; tgt raised to $14
Allegheny Tech (ATI) initiated with a Buy at Northcoast; tgt $54
Arista Networks (ANET) initiated with an Outperform at Exane BNP Paribas; tgt $210
Cisco (CSCO) initiated with an Underperform at Exane BNP Paribas; tgt $45
Freshworks (FRSH) initiated with a Buy at UBS; tgt $21
Juniper Networks (JNPR) initiated with a Neutral at Exane BNP Paribas; tgt $31
Karuna Therapeutics (KRTX) initiated with an Overweight at Morgan Stanley; tgt $280
Kosmos Energy (KOS) initiated with a Buy at Redburn; tgt $9
Econ Data:
08:30 ET: Initial Claims for July 15 (Briefing.com Consensus 240K; Prior 237K)
08:30 ET: Continuing Claims for July 8 (Briefing.com Consensus NA; Prior 1729K)
08:30 ET: Philadelphia Fed Index for July (Briefing.com Consensus -9.0; Prior -13.7)
10:00 ET: Existing Home Sales for June (Briefing.com Consensus 4.25M; Prior 4.30M)
10:00 ET: Leading Indicators for June (Briefing.com Consensus -0.6%; Prior -0.7%)
10:30 ET: EIA Natural Gas Inventories for July 15 (Briefing.com Consensus NA; Prior +49 bcf)
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 -1.3%, Hang Seng -0.2%, Shanghai Composite -0.9%
Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. The People's Bank of China made no changes to its one-year and five-year loan prime rates. The central bank also announced an increase to the cross-border macro ratio, opening the door to increased overseas borrowing by Chinese companies. China State Council repeated that it will work to "optimize conditions" for the private economy. Australia reported better than expected employment figures for June, but ANZ maintained its view that the Reserve Bank of Australia is done raising rates.
In economic data:
Japan's adjusted June trade deficit JPY550 bln (expected deficit of JPY900 bln; last deficit of JPY780 bln). June Imports -12.9% yr/yr (expected -11.3%; last -9.8%) and Exports 1.5% yr/yr (expected 2.2%; last 0.6%)
Australia's June Employment Change 32,600 (expected 15,000; last 76,600) and full employment change 39,300 (last 61,700). June Unemployment Rate 3.5% (expected 3.6%; last 3.5%) and June Participation Rate 66.8% (expected 66.9%; last 66.9%)
Hong Kong's June CPI 0.2% m/m (last -0.3%); 1.9% yr/yr, as expected (last 2.0%)
---Equity Markets---
Japan's Nikkei: -1.3%
Hong Kong's Hang Seng: -0.2%
China's Shanghai Composite: -0.9%
India's Sensex: +0.7%
South Korea's Kospi: -0.3%
Australia's ASX All Ordinaries: +0.1%
---FX---
USD/JPY: -0.1% to 139.49
USD/CNH: -0.8% to 7.1701
USD/INR: -0.1% to 81.94
Europe: DAX +0.2%, FTSE +0.6%, CAC +0.4%
Major European indices trade on a higher note with the U.K.'s FTSE (+0.6%) and Spain's IBEX (+0.6%) showing relative strength. European Central Bank policymaker Stournaras said that another 25-bps rate increase would be sufficient, and that excessive tightening could hurt the economy. Bank of England policymaker Ramsden said that he sees a potential for increasing the pace of the central bank's balance sheet reduction. EasyJet reported solid quarterly results and issued upbeat guidance due to strong booking trends.
In economic data:
Eurozone's May Current Account surplus EUR9.1 bln (expected surplus of EUR2.5 bln; last surplus of EUR3.8 bln)
Germany's June PPI -0.3% m/m (expected -0.4%; last -1.4%); 0.1% yr/yr (expected 0.0%; last 1.0%)
France's July Business Survey 100, as expected (last 100)
Spain's May trade deficit EUR3.11 bln (expected deficit of EUR6.99 bln; last deficit of EUR4.38 bln)
Swiss June trade surplus CHF4.823 bln (expected surplus of CHF4.031 bln; last surplus of CHF5.442 bln)
---Equity Markets---
STOXX Europe 600: +0.2%
Germany's DAX: +0.2%
U.K.'s FTSE 100: +0.6%
France's CAC 40: +0.4%
Italy's FTSE MIB: +0.2%
Spain's IBEX 35: +0.6%
---FX---
EUR/USD: UNCH at 1.1202
GBP/USD: -0.3% to 1.2895
USD/CHF: UNCH at 0.8567
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