The S&P 500 futures are up 11 points and are trading 0.3% above fair value. The Nasdaq 100 futures are up 15 points and are trading 0.1% above fair value. The Dow Jones Industrial Average futures are up 109 points and are trading 0.3% above fair value.
Following yesterday's disappointing trade, there is a modest bid in the futures market this morning. This comes ahead of Fed Chair Powell's speech at the Jackson Hole Symposium at 10:05 a.m. ET. The weakness yesterday was blamed in large part on some nervousness in front of that speech, so there is a modicum of hope in the equity futures market that Mr. Powell might not sound as hawkish as feared.
Other reports this morning have highlighted stimulus efforts in China that include cutting the stamp duty on stock trading by up to 50% and authorities encouraging financial institutions to increase their stock investments. That didn't help the Shanghai Composite, however. It declined 0.6% and ended the week down 2.2%.
The 2-yr note yield is up two basis points to 5.03% and the 10-yr note yield is unchanged at 4.24%.
Today's economic calendar will feature:
10:00 ET: August University of Michigan Consumer Sentiment - Final
10:05 ET: Fed Chair Powell speech at Jackson Hole on economic outlook
In corporate news:
Netflix (NFLX 409.55, +2.62, +0.6%): Loop Capital upgrades to Buy from Hold; raises price target to $500 from $425
Marvell Technology (MRVL 55.33, -1.96, -3.4%):Â beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line
Ulta Beauty (ULTA 426.00, +3.26, +0.8%):Â beats by $0.17, beats on revs; guides FY24 EPS in-line, revs in-line
Affirm Holdings (AFRM 14.81, +1.00, +7.2%):Â beats by $0.18, beats on revs; guides Q1 revs above consensus
Hawaiian Electric Industries (HE 9.93, -1.93, -16.3%):Â Maui County suing HE over fires alleging negligence;Â suspends quarterly dividend beginning with Q3;Â drew $200 million under their existing revolving unsecured credit facilities
Intuit (INTU 488.00, -10.50, -2.1%):Â beats by $0.22, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY24 EPS above consensus, revs in-line
Workday (WDAY 231.51, +6.64, +3.0%):Â beats by $0.22, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY24 EPS above consensus, revs in-line
Gap, Inc. (GPS 9.54, +0.01, +0.1%):Â beats by $0.25, reports revs in-line, comps -6%; guides Q3 revs below consensus; guides FY24 revs in-line
Nordstrom (JWN 16.20, -0.62, -3.7%):Â beats by $0.36, beats on revs; reaffirms FY24 EPS guidance
Domo (DOMO 11.58, -5.46, -32.0%):Â beats by $0.07, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the week on a lower note. Japan's Nikkei: -2.1%, Hong Kong's Hang Seng: -1.4%, China's Shanghai Composite: -0.6%, India's Sensex: -0.6%, South Korea's Kospi: -0.7%, Australia's ASX All Ordinaries: -0.9%.
In economic data:
Japan's August CPI 2.6% yr/yr (last 2.5%). August Tokyo CPI 2.9% yr/yr (expected 3.0%; last 3.2%) and Tokyo Core CPI 2.8% yr/yr (expected 2.9%; last 3.0%)
Singapore's July Industrial Production 4.1% m/m (expected -0.5%; last 3.3%); -0.9% yr/yr (expected -3.8%; last -6.6%)
In news:
Japan's Tokyo Core CPI was up 2.8% yr/yr in August, representing the slowest pace of increase since September 2022
China Securities Regulatory Commission is reportedly calling on state pension funds, big banks, and insurers to assist in stabilizing the stock market
China plans to lower duty on stock trading by 50%, according to Reuters
China's Ministry of Industry is reportedly looking for a 5% increase in the output of ten nonferrous metals in 2024
U.S. Commerce Secretary Raimondo will be visiting China between Sunday and Wednesday
Major European indices are looking for a higher finish to the week. STOXX Europe 600: +0.5%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.8%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: +0.8%.
In economic data:
Germany's Q2 GDP 0.0% qtr/qtr, as expected (last -0.1%); -0.2% yr/yr, as expected (last -0.2%). August ifo Business Climate Index 85.7 (expected 86.7; last 87.4). August Current Assessment 89.0 (expected 90.0; last 91.4) and Business Expectations 82.6 (expected 83.8; last 83.6)
Spain's July PPI -8.4% yr/yr (expected -10.1%; last -8.1%)
Swiss Q2 Employment Level 5.432 mln (expected 5.428 mln; last 5.389 mln)
In news:
Germany's Q2 GDP was revised up to 0.0% from -0.1%, marking the end of a two-quarter recession, but economists from the ifo Institute see another contraction as a near-certainty
European Central Bank policymaker Nagel pushed back against reports that the ECB is considering a pause at the September meeting while policymaker Centeno called for caution at the next meeting
ECB President Lagarde will speak at the Jackson Hole Symposium at 15:00 ET
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U.S. equity futures:
S&P 500 Futures +10 @ 4,386
DJIA Futures: +104 @ 34,203
Nasdaq 100 Futures: +11Â @ 14,827
Overseas:
Europe:Â DAX +0.5%, FTSE +0.5%, CAC +0.8%
Asia:Â Nikkei -2.1%, Hang Seng -1.4%, Shanghai Composite -0.6%
Commodities:
Crude Oil +0.96Â @ 80.01
Nat Gas -0.001 @ 2.518
Gold -1.90 @ 1945.20
Silver +0.023 @ 24.253
Copper +0.0193Â @ 3.7903
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Earnings/Guidance:
Affirm (AFRM) beats by $0.18, beats on revs; guides Q1 revs above consensus
Credo Technology Group (CRDO) reports EPS in-line, beats on revs; guides Q2 revs above consensus
Domo (DOMO) beats by $0.07, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus
Gap (GPS) beats by $0.25, reports revs in-line, comps -6%; guides Q3 revs below consensus; guides FY24 revs in-line
Hibbett (HIBB) beats by $0.12, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance
Intuit (INTU) beats by $0.22, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY24 EPS above consensus, revs in-line
Marvell (MRVL) beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line
Nordstrom (JWN) beats by $0.36, beats on revs; reaffirms FY24 EPS guidance
PagSeguro Digital (PAGS) reports Q2 results
Stifel Financial (SF) reports operating results for July 31, 2023; total client assets increased 8% yr/yr to $426.7 bln, fee-based client assets up 6%
Ulta Beauty (ULTA) beats by $0.17, beats on revs; guides FY24 EPS in-line, revs in-line
Workday (WDAY) beats by $0.17, reports revs in-line, Raises FY24 subscription revenue guidance
News:
US officials getting more confident that Russian President Putin ordered killing of Yevgeny Prigozhin, according to the New York Times
PBOC requests domestic lenders scale back outward bond investments, according to Reuters
China plans to lower stamp duty on stock trading by 50%, according to Reuters
A tropical storm could form and move into Gulf of Mexico
TikTok aiming to ban links to e-commerce websites, according to The Information
Technology companies changing online operations as EU rules come into effect today, according to Financial Times
Former President Trump posts on X, formerly known as Twitter for first time in 2 years, Politico
Alibaba (BABA) introduces AI model that will understand images, according to CNBC
Align Tech (ALGN): SmileDirectClub (SDC) announced last night its intention to appeal a decision regarding an award of $63 million to be paid to ALGN following a dispute over the Company's exclusive supply agreement with its former strategic partner
Amazon (AMZN) in discussions with Disney (DIS) regarding ESPN streaming partnership, according to The Information
AMC Entertainment (AMC) provided investor updates
AngloGold Ashanti (AU) appoints Richard Jordinson as COO
AngloGold Ashanti Brasil (AU) places Corrego do Sitio mine in Brazil on care and maintenance after sustained operating losses
AstraZeneca (AZN) has filed a legal challenge to critical aspects of the drug price negotiation provisions of the Inflation Reduction Act
Central Puerto (CEPU) decided on the terms of conditions for the acquisition of own shares issued by the Company for up to $10 mln
Decibel Therapeutics (DBTX) announced that the FDA granted fast track designation for DB-OTO, the Company's lead gene therapy product candidate for congenital hearing loss caused by mutations of the otoferlin gene
DigitalOcean (DOCN) CEO Yancey Spruill to step down; search underway for new CEO; Warren Adelman named exec chairman; co reaffirms Q3 and FY23 guidance
Ericsson (ERIC) and Huawei renew global patent license agreement
Equitrans Midstream (ETRN) Provides Rager Mountain Storage Facility Update
Fox Corporation (FOXA): FOX News Media's Republican Primary Debate tops all of broadcast and cable television with nearly 13 million viewers across all platforms
Hawaiian Electric (HE): Maui County suing HE over fires alleging negligence, according to The AP on MSN
Hawaiian Electric (HE) in 8K filing: suspends quarterly dividend beginning with Q3
Hawaiian Electric (HE): Co disclosed investor update; expects 95% of customers to in the affected areas will have had their power restored by the end of this week; Hawaiian Electric drew $200 million under their existing revolving unsecured credit facilities
Heineken (HEINY) completes exit from Russia
Hertz Global (HTZ) expanding electric car fleet in New York City through deal with Revel, according to the New York Post
JAMA Neurology (AMRX) Publishes Phase 3 Study Results Comparing IPX203 to Immediate-Release Carbidopa/Levodopa for Parkinson's Disease
Kaman (KAMN) announces that James Coogan, Senior Vice President and Chief Financial Officer, will step down from his role as CFO effective August 28, 2023
Kinetik (KNTK) promotes Trevor Howard to CFO, effective immediately
Lockheed Martin's (LMT) Sikorsky Aircraft Corp awarded $2.77 bln U.S. Navy contract modification
Mastercard (MA) and Visa (V) end partnerships with Binance Holdings, according to Bloomberg
Merck (MRK) and Eisai (ESAIY) provide update on phase 3 leap-010 trial evaluating keytruda plus lenvima in patients with certain types of recurrent or metastatic head and neck squamous cell carcinoma; study will be closed, and the companies are informing investigators of this decision
Merck (MRK) initiates phase 3 clinical program for oral PCSK9 inhibitor candidate MK-0616
Meta Platforms (META) Introducing Code Llama, an AI tool for coding
Mobileye Global (MBLY) selected by Polestar (PSNY) to to bring autonomous technology to Polestar 4
Moog (MOG.A) announces contract with Bell Textron for work on the Bell V-280 Valor, the U.S. Army's Future Long Range Assault Aircraft
Novartis AG (NVS) division Sandoz receives FDA approval of TYRUKO
Owens Corning (OC) CFO Kenneth S. Parks to resign, effective September 15; succeeded by Todd W. Fister
Pan American Silver (PAAS) reports mineral reserves and mineral resources as at June 30, 2023
Tesla (TSLA):Â US could soon resolve Tesla Autopilot investigation, according to Reuters
Viasat (VSAT) confirms that I6 F2 satellite has suffered a power subsystem anomaly; does not impact ongoing customer services
Warner Brothers Discovery (WBD) delays release of three films, according to the Wall Street Journal
WSFS Financial (WSFS) announces that Arthur J. Bacci, Executive Vice President and Chief Wealth Officer, will also serve as interim CFO
Zillow (ZG) announced yesterday that Zillow Home Loans offers a 1% down payment option, opening homeownership to more borrowers
M&A:
Activision Blizzard (ATVI): UK CMA posts final Decision on possible material change of circumstances or special reason for deciding differently regarding Microsoft (MSFT) merger
Akamai Tech (AKAM) acquires select enterprise customer contracts from StackPath, following its decision to cease content delivery network operations; to be accretive to FY24 non-GAAP EPS
Blackstone (BX) aiming to sell 22% stake in Bellagio Las Vegas casino, operated by MGM (MGM), according to the Wall Street Journal
HollySys (HOLI): Buyer consortium confirms its reiterated non-binding all-cash offer of $25/share, or approximately $1.55 bln to acquire Hollysys
Hut 8 Mining (HUT) continues to make progress on the proposed business combination with U.S. Data Mining Group dba US Bitcoin Corp
Kimco Realty (KIM) acquires Stonebridge at Potomac Town Center for $172.5 mln
Martin Marietta (MLM) to divest certain west coast cement operations to UNACEM
Syndicate:
Gracell Biotechnologies (GRCL) files for 183,702,870 ordinary shares by selling shareholders
The Trade Desk (TTD) files mixed shelf securities offering
Viemed Healthcare (VMD) files $150 mln mixed shelf securities offering
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
AFRM +8.6%, CRDO +3.8%, WDAY +3.1%, GRCL +2.7%, HSAI +2.5%, AU +1.8%, HOLI+1.5%, ULTA +1.2%, KIM +0.7%, MBLY +0.7%
Gapping down:
DOMO -30.6%, HE -20.2%, PAGS -6.9%, DOCN -6%, MRVL -3.6%, CEPU -3.4%, ELP-2.4%, HTZ -2.1%, INTU -0.9%, VMD -0.8%, JWN -0.7%, BIP -0.6%
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Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Abercrombie & Fitch (ANF) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $51
Ardelyx (ARDX) upgraded to Overweight from Neutral at Cantor Fitzgerald; tgt raised to $10
Avista (AVA) upgraded to Sector Weight from Underweight at KeyBanc Capital Markets
Cullen/Frost (CFR) upgraded to Neutral from Sell at UBS; tgt raised to $100
Netflix (NFLX) upgraded to Buy from Hold at Loop Capital; tgt raised to $500
Shift4 Payments (FOUR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $57
Downgrades:
Clarivate (CLVT) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $8
Crestwood Equity Partners (CEQP) downgraded to Mkt Perform from Outperform at Raymond James; tgt $30
Digital Realty Trust (DLR) downgraded to Hold from Buy at Deutsche Bank; tgt raised to $131
Domo (DOMO) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $14
FactSet (FDS) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $464
Fidelity Nat'l Info (FIS) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $60
Frontline (FRO) downgraded to Hold from Buy at Deutsche Bank; tgt $17
Olaplex (OLPX) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $2
Weibo (WB) downgraded to Hold from Buy at The Benchmark Company
Others:
Advanced Drainage Systems (WMS) initiated with an Overweight at Stephens; tgt $148
The Beauty Health Company (SKIN) resumed with a Buy at Canaccord Genuity; tgt $10
Western Alliance Bancorp (WAL) resumed with an Overweight at Piper Sandler; tgt $60
Zura Bio Limited (ZURA) initiated with an Outperform at Oppenheimer; tgt $17
Econ Data:
10:00 ET: Univ. of Michigan Consumer Sentiment - Final for Aug (Briefing.comConsensus 71.2; Prior 71.2)
10:05 ET: Fed Chair Powell Speech at Jackson Hole
Earnings:
Monday (Aug 21)
Afternoon: FN NDSN ZM
Tuesday (Aug 22)
Morning: BIDU BJ CSIQ COTY DKS GDS KC LOW M MDT PINC SCSC SPHR
Afternoon:Â LZB TOL URBN
Wednesday (Aug 23)
Morning:Â ANF AAP ADI BBWI DY FL GRAB KSS LANC PTON WSM
Afternoon:Â ADSK GES NTAP NVDA SNOW SPLK ZUO
Thursday (Aug 24)
Morning: BURL DLTR FRO HAIN NTES OSIS WOOF RY TD WB
Afternoon:Â AFRM CRDO GPS INTU MRVL JWN ULTA WDAY
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Asia & Europe detail:
Asia: Nikkei -2.1%, Hang Seng -1.4%, Shanghai Composite -0.6%
Equity indices in the Asia-Pacific region ended the week on a lower note. Japan's Tokyo Core CPI was up 2.8% yr/yr in August, representing the slowest pace of increase since September 2022. China Securities Regulatory Commission is reportedly state pension funds, big banks, and insurers to assist in stabilizing the stock market. China's Ministry of Industry is reportedly looking for a 5% increase in the output of ten nonferrous metals in 2024. U.S. Commerce Secretary Raimondo will be visiting China between Sunday and Wednesday.
In economic data:
Japan's August CPI 2.6% yr/yr (last 2.5%). August Tokyo CPI 2.9% yr/yr (expected 3.0%; last 3.2%) and Tokyo Core CPI 2.8% yr/yr (expected 2.9%; last 3.0%)
Singapore's July Industrial Production 4.1% m/m (expected -0.5%; last 3.3%); -0.9% yr/yr (expected -3.8%; last -6.6%)
---Equity Markets---
Japan's Nikkei: -2.1% (+0.6% for the week)
Hong Kong's Hang Seng: -1.4% (UNCH for the week)
China's Shanghai Composite: -0.6% (-2.2% for the week)
India's Sensex: -0.6% (-0.1% for the week)
South Korea's Kospi: -0.7% (+0.6% for the week)
Australia's ASX All Ordinaries: -0.9% (-0.5%for the week)
---FX---
USD/JPY: +0.1% to 146.01
USD/CNH: +0.2% to 7.2934
USD/INR: +0.1% to 83.62
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Europe: DAX +0.5%, FTSE +0.5%, CAC +0.8%
Major European indices are looking for a higher finish to the week. Germany's Q2 GDP was revised up to 0.0% from -0.1%, marking the end of a two-quarter recession, but economists from the ifo Institute see another contraction as a near-certainty. European Central Bank policymaker Nagel pushed back against reports that the ECB is considering a pause at the September meeting while policymaker Centeno called for caution at the next meeting. ECB President Lagarde will speak at the Jackson Hole Symposium at 15:00 ET.
In economic data:
Germany's Q2 GDP 0.0% qtr/qtr, as expected (last -0.1%); -0.2% yr/yr, as expected (last -0.2%). August ifo Business Climate Index 85.7 (expected 86.7; last 87.4). August Current Assessment 89.0 (expected 90.0; last 91.4) and Business Expectations 82.6 (expected 83.8; last 83.6)
Spain's July PPI -8.4% yr/yr (expected -10.1%; last -8.1%)
Swiss Q2 Employment Level 5.432 mln (expected 5.428 mln; last 5.389 mln)
---Equity Markets---
STOXX Europe 600: +0.5% (+1.2% week-to-date)
Germany's DAX: +0.5% (+0.9% week-to-date)Â
U.K.'s FTSE 100: +0.5% (+1.5% week-to-date)
France's CAC 40: +0.8% (+1.5% week-to-date)
Italy's FTSE MIB: +1.1% (+2.2% week-to-date)
Spain's IBEX 35: +0.8% (+1.4% week-to-date)
---FX---
EUR/USD: -0.1% to 1.0807
GBP/USD: +0.1% to 1.2616
USD/CHF: +0.2% to 0.8853
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