26/07/23 Briefing

The S&P 500 futures are down 7 points and are trading 0.1% below fair value. The Nasdaq 100 futures are down 48 points and are trading 0.3% below fair value. The Dow Jones Industrial Average futures are down 52 points and are trading 0.2% below fair value.

The stock market is poised for a slightly lower open in front of the FOMC policy decision at 2:00 p.m. ETfollowed by Fed Chair Powell's press conference at 2:30 p.m. ET. Investors are expecting a 25 basis points rate hike today, so focus will be turned to Mr. Powell's commentary. 

There has also been a heavy batch of earnings since yesterday's close that investors are reacting to. The calendar after yesterday's close was headlined by reports from Microsoft (MSFT) and Alphabet (GOOG), which garnered mixed reactions, while Dow components Boeing (BA) and Coca-Cola (KO) have headlined the calendar before today's open.

The 2-yr note yield is down three basis points to 4.87% and the 10-yr note yield is down two basis points to 3.89%. 

Market participants will receive the following economic data today:

• 7:00 ET: Weekly MBA Mortgage Index (prior 1.1%)

• 10:00 ET: June New Home Sales (Briefing.comconsensus 722,000; prior 763,000)

• 10:30 ET: Weekly crude oil inventories (prior -708,000)

In corporate news:

• Microsoft (MSFT 338.40, -12.58, -3.6%): beats by $0.14, beats on revs; Azure +27% constant currency at high end of +26-27% CC prior guidance; Provides FY24 outlook; SepQ revenue outlook slightly below consensus

• Alphabet (GOOG 129.96, +7.17, +5.8%): beats by $0.10, beats on revs, Google Advertising revenue up 3.2%; CFO Ruth Porat will assume newly created role of President and Chief Investment Officer, will continue to serve as CFO; Generative AI platforms have seen customer growth of 15x from April to June

• Snap (SNAP 10.33, -2.18, -17.4%): beats by $0.23, beats on revs, DAUs increased 14% to 397 mln; guides Q3 revs in-line, expects DAUs of 405-406 mln

• Texas Instruments (TXN 177.45, -8.63, -4.6%): beats by $0.11, beats on revs; guides Q3 EPS mid point below consensus; sees Q3 revs in line; Experienced weakness across all end markets with exception of automotive

• Visa (V 237.60, -1.09, -0.5%): beats by $0.05, reports revs in-line; cross-border volume remained a tailwind; expects SepQ net revenue growth of around 10% in nominal dollars

• Coca-Cola (KO 63.03, +0.78, +1.3%): beats by $0.06, beats on revs; guides FY23 EPS in-line

• Boeing (BA 221.80, +7.68, +3.6%): beats by $0.07, beats on revs; 737 program transitioning production to 38 per month; reaffirms FY23 guidance: $4.5-$6.5 bln of operating cash flow and $3-5 bln of free cash flow

• Hilton (HLT 149.85, -1.28, -0.9%): beats by $0.05, beats on revs; guides Q3 EPS above consensus; guides FY23 EPS above consensus

• Waste Mgmt (WM 163.88, -7.87, -4.6%): misses by $0.04, misses on revs; guides FY23 revs below consensus

• Thermo Fisher (TMO 539.10, -31.81, -5.6%): misses by $0.28, misses on revs; lowers FY23 EPS below consensus, revs below consensus

• Robert Half (RHI 72.00, -8.21, -10.2%): misses by $0.13, misses on revs; expects Q2 earnings and revs below consensus

• PacWest (PACW 9.97, +2.28, +29.7%): and Banc of California (BANC) confirm merger, announce $400 million equity raise

• AT&T (T 15.02, +0.22, +1.5%): beats by $0.03, reports revs in-line

• Wells Fargo (WFC 46.70, +1.22, +2.7%): increases quarterly common stock dividend to $0.35/share from $0.30/share and authorizes a new common stock repurchase program of up to $30 bl

• NetApp (NTAP 80.30, +1.24, +1.6%): upgraded to Equal-Weight from Underweight at Morgan Stanley

• Union Pacific (UNP 234.00, +18.45, +8.6%): misses by $0.17, misses on revs; announces Jim Vena has been appointed as chief executive officer and a member of the Board, effective August 14, 2023

Target (TGT 131.79, -1.81, -1.4%): downgraded to Mkt Perform from Strong Buy at Raymond James

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Wednesday on a mixed note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: -0.3%, India's Sensex: +0.5%, South Korea's Kospi: -1.7%, Australia's ASX All Ordinaries: +0.8%.

• In economic data:

• Japan's June Corporate Services Price Index 1.2% yr/yr (expected 1.4%; last 1.7%). May Leading Index 1.1% m/m (last 1.4%) and Coincident Indicator 0.1% m/m (expected -0.4%; last 0.1%)

• South Korea's July Consumer Confidence 103.2 (expected 99.2; last 100.7)

• Singapore's June Industrial Production 5.0% m/m (expected 3.8%; last -3.6%); -4.9% yr/yr (expected -6.8%; last -10.5%)

• Australia's Q2 CPI 0.8% qtr/qtr (expected 1.0%; last 1.4%); 6.0% yr/yr (expected 6.2%; last 7.0%)

• In news:

• There was growing speculation that the Bank of Japan will abandon its yield curve control policy with an announcement coming as early as this Friday.

• Australia's Treasurer Chalmers warned that there is still a long way to go before inflation is defeated.

• Japan's services prices grew at their slowest pace since early 2022 in the June reading.

• SK Hynix reported better than expected results for Q2 but also said that output will be reduced.

• Major European indices trade in the red. STOXX Europe 600: -1.0%, Germany's DAX: -0.8%, U.K.'s FTSE 100: -0.6%, France's CAC 40: -1.9%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: +0.1%.

• In economic data:

• Eurozone's June Private Sector Loans 1.7% yr/yr (expected 1.8%; last 2.1%) and Loans to Nonfinancials 3.0% yr/yr (expected 3.4%; last 4.0%)

• France's July Consumer Confidence 85 (expected 86; last 85)

• Swiss July ZEW Expectations -32.6 (expected -31.1; last -30.8)

• In news:

• Expectations remain in place for the European Central Bank to announce a 25-bps rate hike tomorrow.

• Unicredit reported better than expected results for the quarter while Santander said that it is on track to meet its targets for the year. LVMH missed expectations while Deutsche Bank exceeded estimates.

U.S. equity futures:

• S&P 500 Futures: -4 @ 4,563

• DJIA Futures: -19 @ 35,419

• Nasdaq 100 Futures: -36 @ 15,525

Overseas:

• Europe: DAX -0.8%, FTSE -0.6%, CAC -1.9%

• Asia: Nikkei UNCH, Hang Seng -0.4%, Shanghai Composite -0.3%

Commodities:

• Crude Oil -0.94 @ 78.69

• Nat Gas -0.039 @ 2.708

• Gold +9.65 @ 1973.35

• Silver -0.019 @ 24.805

• Copper -0.0302 @ 3.8853

Earnings/Guidance:

• Affiliated Managers (AMG) beats by $0.21, misses on revs

• Alkermes (ALKS) beats by $0.15, beats on revs; reaffirms FY23 EPS guidance, revs guidance

• Allegion (ALLE) beats by $0.04, misses on revs; guides FY23 EPS above consensus, revs below consensus

• Alphabet (GOOG) beats by $0.10, beats on revs, Google Advertising revenue up 3.2%; CFO Ruth Porat will assume newly created role of President and Chief Investment Officer, will continue to serve as CFO

• American Assets Trust (AAT) beats by $0.06, beats on revs; raises FY23 FFO guidance

• Ashland (ASH) reports Q3 (Jun) results, misses on revs; guides FY23 revs below consensus

• AT&T (T) beats by $0.03, reports revs in-line

• AtriCure (ATRC) beats by $0.18, beats on revs; guides FY23 EPS above consensus, revs above consensus

• Automatic Data (ADP) beats by $0.06, beats on revs; guides FY24 EPS above consensus, revs above consensus

• Banc of California (BANC) reports EPS in-line; announces merger with PacWest

• Boeing (BA) beats by $0.07, beats on revs; reaffirms FY23 guidance; 737 program transitioning production to 38 per month

• Brandywine Realty (BDN) beats by $0.02, beats on revs; narrows FY23 FFO guide

• British American Tobacco (BTI) reports H1 results; revs up 4% yr/yr; on track to meet FY23 guidance

• Cal-Maine Foods (CALM) beats by $0.43, beats on revs

• Canadian Nat'l Rail (CNI) misses by $0.03, misses on revs

• Check Point Software (CHKP) beats by $0.10, reports revs in-line

• Chubb (CB) beats by $0.50, misses on revs

• CME Group (CME) beats by $0.10, beats on revs

• Coca-Cola (KO) beats by $0.06, beats on revs; guides FY23 EPS in-line

• Constellium (CSTM) misses by 0.20, slightly beats on revs

• CoStar Group (CSGP) beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs below consensus

• Crane (CR) beats by $0.19, misses on revs; raises FY23 guidance

• Danone (DANOY) reports H1 results; reaffirms FY23 outlook

• Deutsche Bank (DB) reports Q2 results; beats on revs

• EastGroup (EGP) beats by $0.02, beats on revs; guides FY23 FFO above consensus

• Encore Wire (WIRE) misses by $0.48, misses on revs

• Enova International (ENVA) beats by $0.04, beats on revs

• EQT Corp. (EQT) beats by $0.09, misses on revs

• Equinor (EQNR) reports Q2 results; misses on revs; provided outlook

• Euronet (EEFT) beats by $0.02, reports revs in-line

• Evercore (EVR) misses by $0.30, misses on revs; declares quarterly dividend of $0.76 per share

• First Commonwealth (FCF) beats by $0.01

• Fiserv (FI) beats by $0.02, beats on revs; guides FY23 EPS above consensus, raises FY23 organic growth outlook

• Fortive (FTV) beats by $0.04, beats on revs; guides Q3 EPS below consensus, revs slightly below consensus; guides FY23 EPS in-line, revs slightly above consensus

• General Dynamics (GD) beats by $0.14, beats on revs

• GlaxoSmithKline (GSK) beats by 4 pence; beats on revs; raises FY23 outlook

• Group 1 Auto (GPI) beats by $0.65, beats on revs

• Hawaiian Holdings (HA) beats by $0.19, beats on revs

• Healthcare Services Group (HCSG) misses by $0.05, reports revs in-line

• Hess (HES) beats by $0.13, reports revs in-line

• Highwoods Prop (HIW) reports FFO in-line, misses on revs; guides FY23 FFO in-line

• Hilton (HLT) beats by $0.05, beats on revs; guides Q3 EPS above consensus; guides FY23 EPS above consensus

• H World Group (HTHT) reports preliminary Q2 operating results; RevPAR recovers to 121% of the 2019 level

• Kaiser Alum (KALU) beats by $0.80, beats on revs

• Lithia Motors (LAD) beats by $1.65, beats on revs

• LivaNova (LIVN) beats by $0.24, beats on revs; guides FY23 EPS in-line

• Lloyds Banking (LYG) reports Q2 results; provides outlook

• Luxfer (LXFR) misses by $0.03 (single est), reports revs in-line (single est); guides FY23 EPS below estimate due to impacts from extended outage of U.S. magnesium supply

• Manhattan Assoc (MANH) beats by $0.16, beats on revs; raises FY23 guidance

• Matador Resources (MTDR) beats by $0.10, reports revs in-line; increases 2023 production guidance

• Merit Medical (MMSI) beats by $0.06, beats on revs; reaffirms FY23 EPS in-line, revs in-line

• Microsoft (MSFT) beats by $0.14, beats on revs; Azure +27% constant currency at high end of +26-27% CC prior guidance

• Monro Muffler (MNRO) misses by $0.07, misses on revs

• Mr. Cooper Group (COOP) beats by $0.90, beats on revs

• Navient (NAVI) misses by $0.06

• NexTier Oilfield (NEX) beats by $0.05, misses on revs

• New Oriental Education & Technology (EDU) misses by $0.12, beats on revs; guides Q1 revs above consensus

• Northern Oil & Gas (NOG) updates FY23 guidance; increases annual production target

• Old Dominion (ODFL) beats by $0.02, misses on revs; also approves $3 bln share repurchase program

• Orange (ORAN) reports Q2 results; beats on revs; reaffirms FY23 outlook

• Otis Worldwide (OTIS) beats by $0.06, beats on revs; guides FY23 EPS in-line, revs in-line

• Owens Corning (OC) beats by $0.97, reports revs in-line

• PacWest Bancorp (PACW) misses by $1.09; to merge with Banc of California

• Penske Auto (PAG) beats by $0.24, beats on revs

• PROG Holdings (PRG) beats by $0.14, beats on revs; guides Q3 EPS above consensus, revs above consensus; raises FY23 guidance

• PROS Holdings (PRO) beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY23 revs above consensus

• Prosperity Bancshares (PB) misses by $0.01

• Quest Diagnostics (DGX) beats by $0.03, beats on revs; guides FY23 EPS in-line, revs above consensus

• RenaissanceRe (RNR) beats by $1.24, beats on revs

• Renasant (RNST) beats by $0.08

• Retail Opportunity Investments (ROIC) beats by $0.01, beats on revs; reaffirms FY23 FFO guidance

• Rio Tinto (RIO) reports H1 results

• Robert Half (RHI) misses by $0.13, misses on revs; expects Q2 earnings and revs below consensus

• Rogers Comms (RCI) misses by CAD0.09, reports revs in-line; raises outlook

• RPC (RES) misses by $0.06, misses on revs

• RPM Inc (RPM) beats by $0.07, beats on revs, guides 1Q24 revenue above consensus

• Rush Enterprises (RUSHA) beats by $0.27, beats on revs; declared a three-for-two stock split; increases post split dividend 21.4%

• Silgan Holdings (SLGN) misses by $0.06, misses on revs; guides Q3 EPS below consensus; guides FY23 EPS below consensus

• Silicon Labs (SLAB) beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus

• Snap (SNAP) beats by $0.23, beats on revs, DAUs increased 14% to 397 mln; guides Q3 revs in-line, expects DAUs of 405-406 mln

• Stellantis (STLA) reports H1 results; revs increased 12% yr/yr; reaffirms FY23 outlook

• Stepan Company (SCL) misses by $0.64, misses on revs

• Stifel Financial (SF) misses by $0.13, misses on revs

• Taylor Morrison Home (TMHC) beats by $0.43, beats on revs

• TE Connectivity (TEL) beats by $0.11, misses on revs; guides Q4 EPS above consensus, revs in-line

• Teladoc (TDOC) beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs in-line; guides FY23 EPS, revs in-line

• Teledyne Tech (TDY) beats by $0.04, reports revs in-line; guides Q3 EPS in-line; guides FY23 EPS in-line

• Tenable (TENB) beats by $0.09, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs above consensus

• Texas Instruments (TXN) beats by $0.11, beats on revs; guides Q3 EPS mid point below consensus; sees Q3 revs in line

• Thermo Fisher (TMO) misses by $0.28, misses on revs; lowers FY23 EPS below consensus, revs below consensus

• Tilray (TLRY) beats by $0.04, beats on revs

• Tower Semi (TSEM) misses by $0.03, reports revs in-line

• Travel + Leisure Co (TNL) beats by $0.01, reports revs in-line; guides Q3 EPS below consensus

• Trustmark (TRMK) beats by $0.15, beats on revs

• UMB Financial Corporation (UMBF) misses by $0.08, misses on revs; announces buyback

• Union Pacific (UNP) misses by $0.17, misses on revs

• United Micro (UMC) beats by $0.04, beats on revs

• Universal Health (UHS) misses by $0.01, beats on revs; updates FY23 EPS, revs guidance

• Veritex Holdings (VBTX) misses by $0.13, misses on revs

• Vicor (VICR) beats by $0.15, beats on revs

• Visa (V) beats by $0.05, reports revs in-line; cross-border volume remained a tailwind; expects SepQ net revenue growth of around 10% in nominal dollars

• Wabash Natl (WNC) beats by $0.22, misses on revs; guides FY23 EPS above consensus, revs in-line

• Waste Mgmt (WM) misses by $0.04, misses on revs; guides FY23 revs below consensus

• Weatherford (WFRD) beats by $0.01, beats on revs

• WesBanco Inc (WSBC) beats by $0.04, beats on revs

News:

• Fed expected to increase rates by 25 basis points later today and signal plans for future, according to Bloomberg

• Senate passes bill requiring corporate reporting of Chinese technology investments, according to Reuters

• Alibaba (BABA) cloud unit will bring Meta's (META) artificial intelligence model to its clients, according to Reuters

• Allison Transmission (ALSN) announces that the Indianapolis Public Transportation Corporation is applying its recent $19 mln grant from the Federal Transit Administration's 2023 Low or No Emission and Grants for Buses and Bus Facilities Competitive Programs toward expanding its fleet of 40-foot GILLIG buses equipped with the Allison eGen Flex electric hybrid propulsion system

• Amarin (AMRN) announces that following the most recent meeting of the Spanish Drug Pricing Committee on July 24, 2023, the Committee is recommending the national reimbursement of VAZKEPA to reduce the risk of cardiovascular events in patients with high cardiovascular risk

• Amazon (AMZN) offers to change Marketplace rules to address UK CMA concerns

• Amazon (AMZN): FTC preparing antitrust lawsuit that could break up Amazon.com, according to Politico

• DISH Network (DISH) will start selling premium mobile services on Amazon.com(AMZN)

• Equifax (EFX) discloses it received a civil investigative demand from the CFPB as part of its investigation into data accuracy

• Inozyme Pharma (INZY) announces updates on Global Development Strategy of INZ-701 for the treatment of ENPP1 deficiency

• Intel (INTC) expands collaboration with Ericsson (ERIC) to utilize Intel's 18A process and manufacturing technology for Ericsson's future next-generation optimized 5G infrastructure

• Intuitive Machines (LUNR) announces NASA's Space Technology and Mission Directorate has awarded a $15 mln Tipping Point initiative award to the Zeno Power-led team, including Intuitive Machines

• Leidos (LDOS) and L3Harris Technologies (LHX) are teaming up for the U.S. Army's Theater Level High-Altitude Expeditionary Next Airborne - Signals Intelligence proposal

• MAG Silver (MAG) announces second quarter production from Juanicipio

• Merck (MRK) and Moderna (MRNA) announced the initiation of the pivotal Phase 3 randomized V940-001 clinical trial evaluating V940 (mRNA-4157), an investigational individualized neoantigen therapy (INT), in combination with KEYTRUDA

• NatWest Group plc (NWG) announced that Alison Rose has agreed by mutual consent to step down as Group Chief Executive with immediate effect

• NexPoint Real Estate Finance (NREF) declares special dividend of $0.185 per share

• Opthea Ltd. (OPT) announces that the American Medical Association's United States Adopted Names Council, in consultation with the World Health Organization's International Nonproprietary Names Expert Committee, has approved and adopted the nonproprietary drug name 'sozinibercept' for the Company's lead biologic drug candidate, OPT-302

• Samsung (SSNLF) aiming to introduce Galaxy Z Fold phones, according to the Wall Street Journal

• Union Pacific (UNP) announces Jim Vena has been appointed as chief executive officer and a member of the Board, effective August 14, 2023

• Waterstone Financial (WSBF) announces that Douglas S. Gordon has notified Waterstone of his intention to retire as Chief Executive Officer of Waterstone Financial and its wholly owned subsidiary, WaterStone Bank, effective December 31, 2023

• Wells Fargo (WFC) increases quarterly common stock dividend to $0.35/share from $0.30/share and authorizes a new common stock repurchase program of up to $30 bln

M&A:

• Golden Entertainment (GDEN) completes the previously disclosed sale of Rocky Gap Casino Resort for aggregate cash consideration of ~$260 mln, subject to customary working capital adjustments

• KKR (KKR) confirms deal to sell RBmedia to H.I.G. Capital

• LPL Financial (LPLA) to acquire financial services provider Crown Capital Securities; financial terms were not disclosed

• PacWest (PACW) and Banc of California (BANC) confirm merger, announce $400 million equity raise

• Teleflex (TFX) has entered into a definitive agreement to acquire privately-held Palette Life Sciences AB for an upfront cash payment of $600 mln at closing, and up to an additional $50 mln upon the achievement of certain commercial milestones

Syndicate:

• BCB Bancorp (BCBP) files $100 mln mixed shelf securities offering

• B. Riley Financial (RILY) announces pricing of $100 million common stock offering at $55.00/share

IPOs:

• Expected to Price:

• Surf Air Mobility (NYSE: SRFM): The provider of a regional air travel mobility platform that shows schedules and charter flights run by third parties is offering 23.6 M shares through a direct listing.

Gapping Up/Down

• Gapping up:

• PACW +30.9%, DISH +12.7%, TENB +11.9%, BANC +10.8%, ATRC +8.1%, TDOC +6.3%, GOOG +6.1%, ABOS +5.7%, VICR +5.4%, TRMK +4.7%, HIW +4.3%, CSTM +4.3%, MANH +4%, VIV +3.1%, LDOS +3%, KALU+3%, WFC +2.9%, CALM +2.7%, HA +2.7%, WSBF +2.2%, RUSHA +2.1%, FCF +2%, WSBC +2%, CB +2%, RNST +2%, STLA +2%, NREF +1.9%, GSK +1.7%, CHKP +1.4%, BTI+1.4%, PRO +1.1%, BCBP +1%, ROIC +1%, AMRN +0.9%, EGP +0.9%

• Gapping down:

• SNAP -18.6%, WIRE -9%, RHI -8.1%, TMO-5.7%, WM -5%, TXN -4%, ORAN -3.9%, NBR-3.4%, MSFT -3.4%, CSGP -3.2%, LYG -2.6%, EDU -2.5%, NWG -2.2%, ENVA -2.1%, HLT-2%, ASH -1.9%, NEX -1.9%, RIO -1.8%, MTDR -1.7%, EQNR -1.7%, DB -1.7%, LIVN-1.2%, UHS -1.1%, MSEX -1%, LUNR -1%, CNI -1%

Analyst Research (see Upgrades/Downgradescalendarfor full list):

• Upgrades

• Canadian Nat'l Rail (CNI) upgraded to Buy from Reduce at Veritas

• NetApp (NTAP) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $74

• Spotify (SPOT) upgraded to Buy from Hold at Deutsche Bank; tgt $180

• Third Harmonic Bio (THRD) upgraded to Outperform from Market Perform at LifeSci Capital

• WW (WW) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $13

• Downgrades:

• Aspen Tech (AZPN) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

• Enterprises Finl (EFSC) downgraded to Mkt Perform from Outperform at Raymond James

• GATX (GATX) downgraded to Market Perform from Outperform at TD Cowen; tgt raised to $137

• Independent Bank Group (IBTX) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $44

• Lulu's Fashion Lounge (LVLU) downgraded to Neutral from Buy at Goldman; tgt lowered to $2.40

• Omega Health (OHI) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $32

• PJT Partners (PJT) downgraded to Peer Perform from Outperform at Wolfe Research

• RTX (RTX) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $95

• Target (TGT) downgraded to Mkt Perform from Strong Buy at Raymond James

• Tencent Music (TME) downgraded to Neutral from Overweight at JP Morgan; tgt $7.50

• Wendy's (WEN) downgraded to Neutral from Buy at Kalinowski

• Others:

• Belite Bio (BLTE) initiated with an Outperform at SVB Securities; tgt $25

• FAT Brands (FAT) initiated with a Buy at Loop Capital; tgt $15

• FinVolution Group (FINV) initiated with a Buy at Daiwa Securities; tgt $6.70

• Gorilla Technology Group (GRRR) initiated with an Overweight at Cantor Fitzgerald; tgt $4.80

• Insmed (INSM) initiated with a Buy at Guggenheim; tgt $50

• Keros Therapeutics (KROS) initiated with a Buy at BofA Securities; tgt $65

• Lincoln National (LNC) resumed with a Mkt Perform at Raymond James

• MicroStrategy (MSTR) initiated with an Outperform at TD Cowen; tgt $520

• NICE (NICE) initiated with an Outperform at William Blair

Econ Data:

• 07:00 ET: MBA Mortgage Applications Index for July 22 (Briefing.comConsensus NA; Prior 1.1%)

• 10:00 ET: New Home Sales for June (Briefing.comConsensus 722K; Prior 763K)

• 10:30 ET: EIA Crude Oil Inventories for July 22 (Briefing.comConsensus NA; Prior -0.708M)

• 14:00 ET: FOMC Rate Decision (Briefing.comConsensus 5.25-5.50%; Prior 5.00-5.25%)

Earnings:

• Monday (Jul 24)

• Morning:  BOH DPZ HOPE PHG

• Afternoon: AGYS AGNC ARE BRO CADE CDNS CATY CHX CLF CCK FFIV HSTM HXL IBTX LOGI MEDP NXGN NWE NXPI PKG RRC RGP RLI SSD TBI WHR WSFS

• Tuesday (Jul 25)

• Morning: MMM ALK ACI HOUS ADM ARCC AWI ABG AUB AVY BKU BIIB GLW CTS DHR DOV DOW FELE GATX GEHC GE GM HRI HUBB IVZ IRDM KMB LW LTH MCO MSCI NEE NEP NUE NVR ONB PCAR PJT PII PHM RTX SASR ST SHW SFNC SITC SBSI SPOT TRU VZ XRX

• Afternoon:  GOOG ASH ATRC BANC BDN CALM CNI CB CSGP CR EGP WIRE ENVA EQT EEFT FCF HA HIW KALU LXFR MANH MTDR MMSI MSFT NEX PACW PRO RNR RNST ROIC RHI SNAP TDOC TENB TXN TRMK UMBF UHS VBTX VICR V WM WSBC

• Wednesday (Jul 26)

• Morning:  AMG ALKS ALLE APH T ADP BXMT BA BOKF GIB CHKP CME KO CSTM EVR FI FTV GD GPI HCSG HES HLT LAD LIVN MNRO COOP NAVI EDU ODFL OMF OTIS OC PAG BPOP PRG PB DGX RCI RES RPM R SLGN SLAB SCL TMHC TEL TDY TMO TLRY TSEM TNL UNP UMC VIRT WNC

• Afternoon:  AEM AGI AIN ALGN AWK AMP NLY AM AR ACGL ASGN AGR CSL CLS CCS CHE CMG CHDN FIX CNMD CLB CVBF EBAY EW ESI EIG ENVX EQC EG EVTC FIBK FLEX FTAI GFL GL GSHD GGG HP ICLR IEX IMAX PI INVH LHX LRCX LSTR LC MAT MXL META MEOH MAA MC MOH MYRG NTGR NXT NOV ORLY OII CASH PTEN PEGA PDM PPC PLXS PTC QS RJF ROL SLM STX SEIC NOW STAG STC SUI NOVA TER TNET TROX TYL UDR URI VMI VICI VKTX VSTO WU WH

• Thursday (Jul 27)

• Morning: AOS ABBV AGCO AEP AMT MT ARCH AMBP ATHM AVNT BCS BAX BSX BFH BMY BC CRS CARR CBZ CBRE CVE CNP CMS CNX CMCSA CROX CFR DTE EXP EME EXLS XPRO FSS FAF FBP FCFS FSV FCN GWW HEES HOG HCA HSY HTZ HON INMD IP ITGR IART KBR KDP KIM KEX LH LAZ TREE LII LECO LIN LKQ HZO MLM MAS MA MCD MDC MBLY NEOG NTCT NYCB NSC NOC NVCR OTLY OIS OPCH OSTK PPBI PATK BTU PNR PRFT PCG PDS PRCT RS RCL SPGI SAH LUV SRCL STM STRA FTI TECK TXT SHYF TSCO TW TPH TRS VLO VLY WAB WST WEX WTW XEL

• Afternoon:  ACHC AB ALSN AMH ABCB APPF ATR AJG AXNX AX BZH BJRI SAM BYD CP CWST CC CINF OFC COUR CUZ DECK DXCM DLR EMN EIX ENPH EQR ESS EXPO FHI FSLR F FBIN GLPI HIG PEAK HUBG HURN INTC JNPR KNSL KLAC LYV LPLA LTC MGRC MTH MTD MTX MHK MDLZ NATI OLN PEB PFSI PFG PFS ROKU SIMO SKX SKYW SNBR SSB SPSC SSNC SG TMUS TXRH SLCA X UCTT VRSN WY

• Friday (Jul 28) 

• Morning:  AON ARCB AZN AVTR B BAH CNC GTLS CHTR CVX CHD CNHI CL DAN XOM FHB BEN GNTX IMO MOG.A NWL NMRK NVT PIPR POR PG SAIA SNY STEL STVN TROW TRP WPC WT

Asia & Europe detail:

Asia: Nikkei UNCH, Hang Seng -0.4%, Shanghai Composite -0.3%

Equity indices in the Asia-Pacific region ended Wednesday on a mixed note. There was growing speculation that the Bank of Japan will abandon its yield curve control policy with an announcement coming as early as this Friday. Australia's Treasurer Chalmers warned that there is still a long way to go before inflation is defeated. Japan's services prices grew at their slowest pace since early 2022 in the June reading. SK Hynix reported better than expected results for Q2 but also said that output will be reduced.

• In economic data:

• Japan's June Corporate Services Price Index 1.2% yr/yr (expected 1.4%; last 1.7%). May Leading Index 1.1% m/m (last 1.4%) and Coincident Indicator 0.1% m/m (expected -0.4%; last 0.1%)

• South Korea's July Consumer Confidence 103.2 (expected 99.2; last 100.7)

• Singapore's June Industrial Production 5.0% m/m (expected 3.8%; last -3.6%); -4.9% yr/yr (expected -6.8%; last -10.5%)

• Australia's Q2 CPI 0.8% qtr/qtr (expected 1.0%; last 1.4%); 6.0% yr/yr (expected 6.2%; last 7.0%)

---Equity Markets---

• Japan's Nikkei: UNCH

• Hong Kong's Hang Seng: -0.4%

• China's Shanghai Composite: -0.3%

• India's Sensex: +0.5%

• South Korea's Kospi: -1.7%

• Australia's ASX All Ordinaries: +0.8%

---FX---

• USD/JPY: -0.4% to 140.37

• USD/CNH: +0.3% to 7.1548

• USD/INR: +0.2% to 81.98

Europe: DAX -0.8%, FTSE -0.6%, CAC -1.9%

Major European indices trade in the red. Expectations remain in place for the European Central Bank to announce a 25-bps rate hike tomorrow. Unicredit reported better than expected results for the quarter while Santander said that it is on track to meet its targets for the year. LVMH missed expectations while Deutsche Bank exceeded estimates.

• In economic data:

• Eurozone's June Private Sector Loans 1.7% yr/yr (expected 1.8%; last 2.1%) and Loans to Nonfinancials 3.0% yr/yr (expected 3.4%; last 4.0%)

• France's July Consumer Confidence 85 (expected 86; last 85)

• Swiss July ZEW Expectations -32.6 (expected -31.1; last -30.8)

---Equity Markets---

• STOXX Europe 600: -1.0%

• Germany's DAX: -0.8%

• U.K.'s FTSE 100: -0.6%

• France's CAC 40: -1.9%

• Italy's FTSE MIB: -0.3%

• Spain's IBEX 35: +0.1%

---FX---

• EUR/USD: +0.2% to 1.1073

• GBP/USD: +0.1% to 1.2911

• USD/CHF: -0.1% to 0.8623