The S&P 500 futures are down 2 points and are trading slightly below fair value. The Nasdaq 100 futures are down 16 points and are trading slightly below fair value. The Dow Jones Industrial Average futures are up 18 points and are trading slightly above fair value.
Equity futures are little changed from the flat line as participants process the Fed's latest moves and guidance. Rates are still moving higher from here and the Fed is signaling that they will not come down anytime soon.
Many other central banks are following suit. The Swiss National Bank announced a 75-basis point rate hike to 0.5%. That key policy rate had been negative since 2015. Not long ago, the Bank of England raised its bank rate by 50 basis points to 2.25% with three policymakers voting for a 75-bps increase. Norway's Norges Bank raised rates by 50 basis points to 2.25%, as expected, but said future rate hikes would be more gradual.
Separately, the Bank of Japan left its key rate unchanged at -0.1% and Governor Kuroda said the bank won't be raising rates for some time. In related news, the Ministry of Finance has intervened to support the yen (USD/JPY -1.8% to 141.34).
Rising Treasury yields continue to pressure investor sentiment. The 10-yr note yield is up four basis points to 3.55% and the 2-yr note yield is up ten basis points to 4.08%.
Market participants will receive the Q2 Current Account Balance report (Briefing.comconsensus -$260.0 billion; prior -$291.4 billion) and weekly initial jobless claims (Briefing.comconsensus 220,000; prior 213,000) and continuing claims (prior 1.403 million) at 8:30 a.m. ET, the August Leading Economic Index (Briefing.comconsensus -0.1%; prior -0.4%) at 10:00 a.m. ET, and weekly EIA Natural Gas Inventories (prior +73 bcf) at 10:30 a.m. ET.
In corporate news:
Eli Lilly (LLY 301.10 +4.62 (+1.56%): UBS upgraded to Buy from Hold; receives FDA approval for Retevmo
Block (SQ 58.29 -1.16 (-1.95%): downgraded to Neutral from Buy at Mizuho
NIKE (NKE 100.19 +0.40 (+0.40%): initiated with an Outperform at RBC Capital Mkts
Target (TGT 158.55 -0.48 (-0.30%): will introduce holiday savings earlier than ever, starting with the "biggest Target Deal Days event yet" - expects to hire up to 100,000 seasonal team members
Accenture (ACN 264.00 -1.42 (-0.54%): beats by $0.03, reports revs in-line; guides FY23 EPS below consensus; raises dividend; approves $3.0 bln of additional share repurchase authority
Darden Restaurants (DRI 128.00 -3.28 (-2.50%): reports EPS in-line, revs in-line; reaffirms FY23 EPS guidance, revs guidance; Q1 comps +4.2%
FactSet (FDS 425.00 -5.45 (-1.27%): misses by $0.08, beats on revs; guides FY23 EPS in-line, revs above consensus
Salesforce (CRM 150.99 +3.36 (+2.28%): targets $50 bln in revs by FY26, a 17% CAGR; expects $31 bln in revs for FY23
Lennar (LEN 75.00 -0.92 (-1.21%): beats by $0.32, misses on revs, deliveries increased 13%; Sees Q4 new orders of 14-15K and deliveries of 20-21K
KB Home (KBH 27.40 -0.62 (-2.21%): beats by $0.19, misses on revs, homes delivered increased 6% yr/yr; expects housing revs of $1.95-2.05 bln in Q4
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a lower note while markets in Australia were closed for a holiday. Japan's Nikkei: -0.6%, Hong Kong's Hang Seng: -1.6%, China's Shanghai Composite: -0.3%, India's Sensex: -0.6%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: CLOSED.
In economic data:
Japan's August BoJ Core CPI 1.9% yr/yr, as expected (last 1.8%)
Hong Kong's August CPI 1.9% yr/yr (expected 2.0%; last 1.9%)
New Zealand's August trade deficit NZD2.447 bln (expected deficit of NZD500 mln; last deficit of NZD1.406 bln). Q3 Westpac Consumer Sentiment 87.6 (last 78.7)
In news:
The Bank of Japan made no changes to its ultra-loose policy stance and the country's finance ministry intervened in the currency market to strengthen the yen.
Japan's Prime Minister Kishida said that border controls will be eased as soon as next month.
The Hong Kong Monetary Authority raised its base rate by 75 bps to 3.50% in the wake of the Fed rate hike.
Goldman Sachs lowered its forecast for 2023 growth in China to 4.5% from 5.3%.
Major European indices trade on a lower note with Italy's MIB (-0.2%) outperforming thanks to relative strength in bank stocks. STOXX Europe 600: -0.8%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -1.0%, Italy's FTSE MIB: -0.2%, Spain's IBEX 35: -0.5%.
In economic data:
France's September Business Survey 102 (expected 102; last 103)
In news:
EU Foreign Minister Borrell said that new sanctions against Russia will be prepared as soon as possible.
Germany's Finance Ministry noted that tax revenue was down yr/yr in August, representing the first decrease this year.
The Swiss National Bank announced a 75-bps rate hike to 50 bps, and not long ago, the Bank of England raised its bank rate by 50 bps to 2.25% with three policymakers voting for a 75-bps increase.
U.S. equity futures:
S&P 500 Futures: -5 @ 3,785
DJIA Futures: -2 @ 30,185
Nasdaq 100 Futures: -26 @ 11,612
Overseas:
Europe: DAX -0.9%, FTSE -0.4%, CAC -1.0%
Asia: Nikkei -0.6%, Hang Seng -1.6%, Shanghai Composite -0.3%
Commodities:
Crude Oil +1.09 @ 84.03
Nat Gas -0.106 @ 7.673
Gold +2.85 @ 1678.55
Silver +0.125 @ 19.605
Copper -+0.0385 @ 3.5055
U.S. Summary:
Earnings/Guidance:
Accenture (ACN) beats by $0.03, reports revs in-line; guides FY23 EPS below consensus; raises dividend; approves $3.0 bln of additional share repurchase authority
AVANGRID (AGR) reaffirms FY22 guidance, provides strategic update at Investor Day
Darden Restaurants (DRI) reports EPS in-line, revs in-line; reaffirms FY23 EPS guidance, revs guidance; Q1 comps +4.2%
Deutsche Bank (DB) at Bank of America conference says it expects FY22 revenue to come in at the high end of its EUR 26-27 bln guidance range
FactSet (FDS) misses by $0.08, beats on revs; guides FY23 EPS in-line, revs above consensus
H.B. Fuller (FUL) beats by $0.02, reports revs in-line; guides Q4 EPS in-line, raises low end of FY22 adjusted EBITDA guidance range
KB Home (KBH) beats by $0.19, misses on revs, homes delivered increased 6% yr/yr; expects housing revs of $1.95-2.05 bln in Q4
Lennar (LEN) beats by $0.32, misses on revs, deliveries increased 13%; Sees Q4 new orders of 14-15K and deliveries of 20-21K
Manchester United (MANU) beats by 6 pence, misses on revs
NorthWestern (NWE) reaffirms FY22EPS guidance ahead of Sidoti Small-Cap Virtual Conference
Salesforce (CRM) during Investor Day: targets $50 bln in revs by FY26, a 17% CAGR; expects $31 bln in revs for FY23
Sportsman's Warehouse (SPWH) provides 2025 targets in slide presentation: Co targeting FY25revenue of $1.8-2.0 bln and EBITDA growth of +8-10%
Steelcase (SCS) beats by $0.08, misses on revs; guides Q3 EPS below consensus, revs below consensus
Trip.comGroup (TCOM) misses by $0.47, beats on revs
General News:
DoubleLine Capital CEO Jeffrey Gundlach says 2023 recession odds are 75% and Fed should slow down interest rate hikes, CNBC
Bank of England raises rates by 50 basis points to 2.25%
Senate passes amendment to legislation that would reduce refrigerant chemicals in air conditioning units, according to the Wall Street Journal
Senator Joe Manchin (D-WV) releases legislation that will enhance energy permitting process in US
Swiss National Bank tightens monetary policy further and raises SNB policy rate to 0.5%
ADC Therapeutics (ADCT) Announces Abstracts to be Presented at the Tenth Annual Meeting of the Society of Hematologic Oncology
Amazon (AMZN): Jeff Bezos will need to testify at Amazon Prime FTC investigation, according to the Wall Street Journal
American Tower (AMT) increases quarterly cash distribution to $1.47/share from $1.43/share
Ashland (ASH) to increase prices up to 15% or as contracts allow to cover inflation related to raw materials, energy, freight, and labor
AstraZeneca (AZN) and Merck (MRK) reports Lynparza approved in China
Biogen (BIIB): The New England Journal of Medicine Publishes Pivotal Tofersen Data that Show Benefits in Rare, Genetic Form of ALS
Blackbaud (BLKB) extends CEO Mike Gianoni's employment contract for an additional three years; targeting the Rule of 40 by end of 2025
Chimera Investment (CIM) lowers its quarterly dividend by 30.3% to $0.23/share
Citrix (CTXS): Banks lose $700 mln from Citrix debt, according to Reuters
Credit Suisse (CS) mulling splitting investment bank into three parts, according to Financial Times
CTI BioPharma (CTIC) Announces Presentation of New Anemia Benefit Data from Pacritinib Program at the Society of Hematologic Oncology (SOHO) Tenth Annual Meeting
DBV Technologies (DBVT) receives partial clinical hold notice for VITESSE Phase 3 Trial
Eli Lilly (LLY) receives FDA approval for Retevmo
General Motors (GM) and Lithion announce an investment and strategic partnership agreement to pursue a circular EV battery ecosystem
GlaxoSmithKline (GSK) and Spero Therapeutics (SPRO) Announce Exclusive License Agreement for Late-Stage Antibiotic Asset, Tebipenem HBr
HarborOne Bancorp (HONE) authorizes a new share repurchase program to buy back up to 2,450,208 shares, or approximately 5% of shares outstanding
Hersha Hospitality Trust (HT) Founder and Chairman Hasu P. Shah to retire; CEO Jay H. Shah to become Executive Chairman
HF Sinclair (DINO) entered into a Stock Purchase Agreement with shareholder REH Company; authorized a new $1 bln share repurchase program
Honda (HMC) aiming to reduce production by 40% at two Japanese plants, according to Reuters
Kinnate Biopharma Inc. (KNTE) Receives Fast Track Designation from the U.S. Food and Drug Administration for KIN-2787, an Investigational Pan-RAF Inhibitor
Kohl's (KSS): Ancora Holdings pushing for CEO removal, according to Reuters
Krystal Biotech (KRYS) receives a positive opinion from the European Medicines Agency (EMA) Pediatric Committee (PDCO) on the Pediatric Investigation Plan (PIP) for beremagene geperpavec for the treatment of dystrophic epidermolysis bullosa
Marinus Pharmaceuticals (MRNS) exercises first contract option by the BARDA
McDonald's (MCD) will face $10 bln racial discrimination lawsuit, according to the New York Post
Merck (MRK): LYNPARZA approved in China as first-line maintenance treatment with bevacizumab for homologous recombination deficient positive advanced ovarian cancer
Meta (META) aiming to reduce costs by 10%, according to the Wall Street Journal
Meta (META) will pay $174.5 mln in damages for alleged patient infringement, according to Bloomberg
Methanex (MEOH) receives approval from TSX for its 5% share repurchase program
Novartis (NVS) unveils new focused strategy, underpinned by eight potential multi-billion dollar peak sales brands & deep pipeline
Novo Nordisk (NVO) presents data showing more participants achieved greater treatment satisfaction when switching to once-weekly insulin icodec in ONWARDS 2 trial
Peloton (PTON) CIO Shobhana (Shobz) Ahluwalia leaves the company
Pfizer (PFE) to supply up to six million treatment courses of its COVID-19 oral treatment PAXLOVID to Global Fund
Precigen (PGEN) names Rutul Shah as COO, effective October 1, 2022
Robinhood Markets (HOOD): SEC will soon allow payment for order flow transactions to continue - CNBC
Social Capital Hedosophia Holdings Corp. IV (IPOD): NYSE determined to commence proceedings to delist the Company's warrants from the NYSE
SoftBank (SFTBY) will meet with Samsung (SSNLF) regarding Arm (ARMH) alliance, according toFinancial Times
Scorpio Tankers (STNG) reports it purchased its common shares in the open market and exercised a purchase option for an LR2 product tanker that is currently leased
Spire Global (SPIR) awarded $9.9 mln contract by National Oceanographic and Oceanic Administration for commercially available space-based radio occultation
SSR Mining (SSRM) is pleased to announce the receipt of the required regulatory approvals from Trkiye's Government authorities and will commence restart of all operations at the ??pler mine as of September 22nd, 2022
Starry (STRY) is eligible to receive ~$170 mln of RDOF funding, payable over 10 years
Sterling Infrastructure (STRL) awarded $45 mln design-bid-build contract for Rivian's electric vehicle plant
Target (TGT) will introduce holiday savings earlier than ever, starting with the "biggest Target Deal Days event yet" - expects to hire up to 100,000 seasonal team members
Tilray (TLRY) announces that FL Group S.R.L., a division of Tilray Medical in Italy, has received approval from the Italian Ministry of Health to import and distribute Tilray's medical cannabis oral solution THC25 across the country
Triumph Group (TGI) entered into an agreement to provide Pylon Conversion Actuators (PCA) spare units for the V-22 Osprey
Two Harbors Investment (TWO) announces a 1-for-4 reverse stock split expected to occur on November 1after hours
M&A:
Global Partners (GLP) acquires Tidewater Convenience, expanding its retail footprint in the mid-Atlantic region; financial details not disclosed
Talos Energy (TALO) Announces strategic acquisition of EnVen Energy, Increasing operational scale and improving financial profile through the addition of oil-weighted, deepwater assets with significant infrastructure
Syndicate:
Cipher Mining (CIFR) files for $500 mln mixed securities shelf offering; also files for 23,265,565 share common stock offering by selling shareholders, relates to warrants
Loop Media (LPTV) priced an underwritten public offering of 2,400,000 shares of its common stock at $5.00/share
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
CTIC +4.7%, STNG +3.8%, FUL +2.2%, CRM +1.7%, LEN +1.5%, SCS +1.4%, BIIB +1.1%, MEOH +1%, HONE +0.6%, TCOM +0.5%
Gapping down:
DBVT -12.7%, CIM -4.1%, SPIR -2.6%, CIFR -2.3%, AGR -2.3%, NVS -1.7%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Downgrades:
Alcoa (AA) downgraded to Peer Perform from Outperform at Wolfe Research
Block (SQ) downgraded to Neutral from Buy at Mizuho; tgt lowered to $57
Novavax (NVAX) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $27
Others:
23andMe (ME) initiated with an Outperform at Cowen; tgt $6
Arcutis Biotherapeutics (ARQT) assumed with a Buy at Jones Trading
Asana (ASAN) initiated with a Market Perform at MoffettNathanson; tgt $26
CS Disco (LAW) initiated with an Outperform at MoffettNathanson; tgt $20
DocuSign (DOCU) initiated with an Underperform at MoffettNathanson; tgt $58
Globe Life (GL) initiated with a Strong Buy at Raymond James; tgt $138
Gracell Biotechnologies (GRCL) initiated with a Buy at Citigroup; tgt $12
Intuit (INTU) initiated with an Outperform at MoffettNathanson; tgt $500
LegalZoom.com(LZ) initiated with an Underperform at MoffettNathanson; tgt $11
Littelfuse (LFUS) initiated with a Hold at The Benchmark Company
Marqeta (MQ) initiated with a Neutral at Wedbush; tgt $8
MetLife (MET) initiated with a Mkt Perform at Raymond James
Monday.com(MNDY) initiated with an Outperform at MoffettNathanson; tgt $170
nCino (NCNO) initiated with a Market Perform at MoffettNathanson; tgt $40
NETSTREIT (NTST) initiated with an Outperform at Robert W. Baird; tgt $23
NIKE (NKE) initiated with an Outperform at RBC Capital Mkts; tgt $125
Principal Fincl (PFG) initiated with a Mkt Perform at Raymond James
Prudential (PRU) initiated with a Strong Buy at Raymond James; tgt $115
Red Rock Resorts (RRR) initiated with a Mkt Outperform at JMP Securities; tgt $50
Revance Therapeutics (RVNC) initiated with a Buy at Goldman; tgt $33
Sangoma Technologies (SANG) initiated with an Outperform at William Blair
Smartsheet (SMAR) initiated with an Outperform at MoffettNathanson; tgt $50
Stem (STEM) initiated with an Outperform at Cowen; tgt $22
Unum Group (UNM) initiated with a Mkt Perform at Raymond James
Voya Financial (VOYA) initiated with a Strong Buy at Raymond James; tgt $84
Westrock Coffee Company (WEST) initiated with an Overweight at Stephens; tgt $13
Upcoming Events:
Econ Data:
08:30 ET: Current Account Balance for Q2 (Briefing.comConsensus -$260.0B; Prior -$291.4B)
08:30 ET: Initial Claims for Sept. 17 (Briefing.comConsensus 220K; Prior 213K)
08:30 ET: Continuing Claims for Sept. 10 (Briefing.comConsensus NA; Prior 1403K)
10:00 ET: Leading Economic Index for Aug (Briefing.comConsensus -0.1%; Prior -0.4%)
10:30 ET: EIA Natural Gas Inventories for Sept. 17 (Briefing.comConsensus NA; Prior +73 bcf)
Earnings
Monday (Sep 19)
Morning: AZO
Tuesday (Sep 20)
Morning: APOG
Afternoon: SFIX
Wednesday (Sep 21)
Morning: GIS
Afternoon: FUL KBH LEN
Thursday (Sep 22)
Morning: CAN DRI FDS
Afternoon: AIR CAMP COST
Friday (Sep 23)
None
Asia & Europe detail:
Asia: Nikkei -0.6%, Hang Seng -1.6%, Shanghai Composite -0.3%
Equity indices in the Asia-Pacific region ended Thursday on a lower note while markets in Australia were closed for a holiday. The Bank of Japan made no changes to its ultra-loose policy stance and the country's finance ministry intervened in the currency market to strengthen the yen. Japan's Prime Minister Kishida said that border controls will be eased as soon as next month. The Hong Kong Monetary Authority raised its base rate by 75 bps to 3.50% in the wake of the Fed rate hike. Goldman Sachs lowered its forecast for 2023 growth in China to 4.5% from 5.3%.
In economic data:
Japan's August BoJ Core CPI 1.9% yr/yr, as expected (last 1.8%)
Hong Kong's August CPI 1.9% yr/yr (expected 2.0%; last 1.9%)
New Zealand's August trade deficit NZD2.447 bln (expected deficit of NZD500 mln; last deficit of NZD1.406 bln). Q3 Westpac Consumer Sentiment 87.6 (last 78.7)
---Equity Markets---
Japan's Nikkei: -0.6%
Hong Kong's Hang Seng: -1.6%
China's Shanghai Composite: -0.3%
India's Sensex: -0.6%
South Korea's Kospi: -0.6%
Australia's ASX All Ordinaries: CLOSED
---FX---
USD/JPY: -1.0% to 142.59
USD/CNH: +0.2% to 7.0807
USD/INR: +1.2% to 80.88
Europe: DAX -0.9%, FTSE -0.4%, CAC -1.0%
Major European indices trade on a lower note with Italy's MIB (-0.2%) outperforming thanks to relative strength in bank stocks. EU Foreign Minister Borrell said that new sanctions against Russia will be prepared as soon as possible. Germany's Finance Ministry noted that tax revenue was down yr/yr in August, representing the first decrease this year. The Swiss National Bank announced a 75-bps rate hike to 50 bps, and not long ago, the Bank of England raised its bank rate by 50 bps to 2.25% with three policymakers voting for a 75-bps increase.
In economic data:
France's September Business Survey 102 (expected 102; last 103)
---Equity Markets---
STOXX Europe 600: -0.8%
Germany's DAX: -0.9%
U.K.'s FTSE 100: -0.4%
France's CAC 40: -1.0%
Italy's FTSE MIB: -0.2%
Spain's IBEX 35: -0.5%
---FX---
EUR/USD: +0.4% to 0.9882
GBP/USD: +0.6% to 1.1339
USD/CHF: +1.4% to 0.9794
コメント