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27/07/22 Briefing




Futures for the major indices are indicating a higher open ahead of the FOMC decision this afternoon. The S&P 500 futures are up 31 points and are trading 0.7% above fair value. The Nasdaq 100 futures are up 164 points and are trading 1.2% above fair value. The Dow Jones Industrial Average futures are up points and are trading 0.5% above fair value.

Futures for the major indices indicate a modestly higher open in a positive reaction to better-than-feared results and guidance from Alphabet (GOOG 109.35, +3.91, +3.7%) and Microsoft (MSFT 260.25, +8.35, +3.3%).

There's a heavy slate of earnings news for market participants to digest this morning. Also, there's a lot of focus on the FOMC decision at 2:00 p.m. ETand, more importantly, any potential comments from Fed Chair Powell about the expected policy path. His press conference starts at 2:30 p.m. ET.

Treasury yields are up this morning. The 2-yr note yield is up one basis point to 3.06% while the 10-yr note yield is up one basis point to 2.80%.

Energy futures are also on the rise. WTI crude oil futures are up 1.2% to $96.13/bbl. Natural gas futures are up 0.9% to $8.90/mmbtu. Unleaded gasoline futures are up 1.7% to $3.13/gal.

Also, the MBA weekly Mortgage Application Index showed a drop in demand for the fourth straight week with total volume down 1.8%.

In corporate news:

  • Alphabet (GOOG 109.35, +3.91, +3.7%): misses by $0.06, reports revs in-line; Google Advertising revenue up 11.6%

  • Microsoft (MSFT 260.25, +8.35, +3.3%): misses by $0.06, reports slight miss on revs; evolving macroeconomic conditions and other unforeseen items had an impact on financial results

  • Visa (V 211.81, -0.68, -0.3%): beats by $0.23, beats on revs

  • Humana (HUM 479.44, -12.84, -2.6%): beats by $0.99, reports revs in-line; guides FY22 EPS above consensus

  • Boeing (BA 160.32, +4.40, +2.8%): misses by $0.27, misses on revs; returns to positive operating cash flow; remains on track to achieve positive free cash flow for 2022

  • Texas Instruments (TXN 164.90, +4.06, +2.5%): beats by $0.33, beats on revs; guides Q3 EPS in-line, revs in-line

  • Sherwin-Williams (SHW 230.00, -24.29, -9.6%): misses by $0.33, misses on revs; guides Q3 revs in-line; guides FY22 EPS below consensus, revs in-line

  • Chipotle Mexican Grill (CMG 1,423.90, +107.47, +8.2%): beats by $0.26, misses on revs; Q2 comps +10.1%; sees Q3 comps mid to high single digits including planned price increases

  • Juniper Networks (JNPR 26.59, -1.48, -5.3%): misses by $0.02, reports revs in-line; guides Q3 EPS in-line, revs above consensus

  • Enphase Energy (ENPH 236.85, +20.75, +9.6%): beats by $0.22, beats on revs; guides Q3 revs above consensus

  • Spotify (SPOT 111.70, +7.73, +7.4%): misses by 0.21, beats on revs; guides Q3 revs above consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: -1.1%, China's Shanghai Composite: -0.1%, India's Sensex: +1.0%, South Korea's Kospi: +0.1%, Australia's ASX All Ordinaries: +0.2%.

  • In economic data:

  • China's June Industrial Profit 1.0% YTD (last 1.0%) o Japan's May Leading Index 101.2 (last 102.9) and Coincident Indicator -1.9% m/m (last 0.0%)

  • South Korea's July Consumer Confidence 86.0 (last 96.4)

  • Australia's Q2 CPI 1.8% qtr/qtr (expected 1.9%; last 2.1%); 6.1% yr/yr (expected 6.2%; last 5.1%

  • In news:

  • China Securities Journal reported that about 70 cities will introduce measures to support the property market.

  • South Korea's consumer confidence reached a 21-month low in the July reading.

  • Japan's cabinet office raised Japan's economic assessment for the first time since April.

  • Australia's treasurer warned that CPI will heat up and that the CPI forecast needs to be increased while cutting the GDP outlook.

  • Major European indices trade in the green. STOXX Europe 600: +0.2%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.7%, Spain's IBEX 35: +0.3%.

  • In economic data:

  • Eurozone's June M3 Money Supply 5.7% yr/yr (expected 5.4%; last 5.6%) and Private Sector Loans 4.6% yr/yr (last 4.6%)

  • Germany's August GfK Consumer Climate -30.6 (expected -28.9; last -27.7)

  • France's July Consumer Confidence 80, as expected (last 82)

  • Italy's July Consumer Confidence 94.8 (expected 96.6; last 98.3) and Business Confidence 106.7 (expected 108.0; last 109.5)

  • Swiss July ZEW Expectations -57.2 (last -72.7)

  • In news:

  • JPMorgan expects that the ECB will only raise rates by 50 bps before the end of the year, down from the previous forecast for 75-bps worth of rate hikes.

  • Standard & Poor's reaffirmed Italy's BBB rating but lowered the outlook to Stable from Positive.

  • Adidas lowered its outlook for the fiscal year. Germany's GfK consumer survey fell to a record low.


U.S. equity futures:

  • S&P 500 Futures: +31 @ 3,952

  • DJIA Futures: +130 @ 31,892

  • Nasdaq 100 Futures: +160 @ 12,247

Overseas:

  • Europe: DAX +0.2%, FTSE +0.5%, CAC +0.3%

  • Asia: Nikkei +0.2%, Hang Seng -1.1%, Shanghai Composite -0.1%

Commodities:

  • Crude Oil +1.27 @ 96.25

  • Nat Gas  +0.046 @ 8.871

  • Gold +2.15 @ 1719.85

  • Silver +0.188  @ 18.723

  • Copper +0.0330 @ 3.4175

U.S. Summary:

  • Earnings/Guidance:

  • Alkermes (ALKS) beats by $0.05, beats on revs; guides FY22 EPS above consensus, revs in-line

  • Agilysys (AGYS) misses by $0.08, beats on revs; reiterates FY23 revs in-line

  • Akouos (AKUS) discloses that Chris Smith notified the company that he has been appointed as Chief Executive Officer of NeoGenomics (NEO) effective August 15

  • Alphabet (GOOG) misses by $0.06, reports revs in-line; Google Advertising revenue up 11.6%

  • American Electric (AEP) beats by $0.01, beats on revs; reaffirms FY22 EPS guidance

  • Ameriprise Financial (AMP) beats by $0.25, grows adjusted revs 2.7% yr/yr

  • Ashland (ASH) beats by $0.22, beats on revs; reaffirms FY22 revs guidance

  • Automatic Data (ADP) beats by $0.03, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • AVANGRID (AGR) beats by $0.12, beats on revs; reaffirms FY22 EPS guidance

  • Avery Dennison (AVY) beats by $0.27, reports revs in-line; raises FY22 EPS above consensus

  • Axalta Coating Systems (AXTA) beats by $0.02, reports revs in-line

  • AXIS Capital (AXS) beats by $0.21, reports revs in-line

  • Boeing (BA) misses by $0.27, misses on revs; returns to positive operating cash flow; remains on track to achieve positive free cash flow for 2022

  • Boston Properties (BXP) beats by $0.09, beats on revs; guides Q3 FFO below consensus; guides FY22 FFO in-line

  • Boston Scientific (BSX) beats by $0.02, reports revs in-line; guides Q3 EPS in-line; guides FY22 EPS in-line, revs below consensus

  • Boyd Gaming (BYD) beats by $0.09, beats on revs

  • Bristol-Myers (BMY) beats by $0.12, beats on revs; reaffirms FY22 EPS guidance, guides FY22 revs below consensus

  • British American Tobacco (BTI) reports H1 results; revs rise 6%; on track to meet FY22 guidance

  • Bunge (BG) misses by $0.23, misses on revs; guides FY22 EPS below consensus

  • Cameco (CCJ) beats by $0.17, beats on revs

  • Camtek (CAMT) beats by $0.01, reports revs in-line

  • Canadian Nat'l Rail (CNI) beats by $0.17, beats on revs; reaffirms FY22 EPS guidance

  • CGI Group (GIB) beats by $0.01, beats on revs

  • ChampionX (CHX) beats by $0.02, beats on revs

  • Chipotle Mexican Grill (CMG) beats by $0.26, misses on revs; Q2 comps +10.1%; sees Q3 comps mid to high single digits including planned price increases

  • Chubb (CB) beats by $0.57, reports revs in-line

  • CME Group (CME) beats by $0.04, reports revs in-line

  • Constellium (CSTM) misses by $0.67, beats on revs

  • CoStar Group (CSGP) beats by $0.07, reports revs in-line; guides Q3 EPS above consensus, revs mostly above consensus; raises FY22 EPS above consensus, revs mostly above consensus

  • Credit Suisse (CS) reports Q2 results; misses on revs; names Ulrich Krner new Group CEO

  • Danone (DANOY)  reports H1 results; revs rise 13% yr/yr

  • Deutsche Bank (DB) beats by EUR0.06; beats on revs; reaffirms FY22 revs guidance

  • Driven Brands (DRVN) beats by $0.06, beats on revs; guides FY22 EPS above consensus, revs above consensus

  • EastGroup (EGP) beats by $0.04, beats on revs; guides FY22 FFO above consensus

  • Enphase Energy (ENPH) beats by $0.22, beats on revs; guides Q3 revs above consensus

  • Equinor (EQNR) reports Q2 results; initiates third tranche of buyback

  • Equity Residential (EQR) beats by $0.03, beats on revs; guides Q3 FFO in-line

  • Essex Property (ESS) beats by $0.13, beats on revs; guides FY22 FFO in-line

  • Evercore (EVR) beats by $1.07, beats on revs

  • Extreme Networks (EXTR) reports EPS in-line, beats on revs; guides Q1 EPS in-line, revs above consensus

  • F45 Training Holdings (FXLV) announces restructuring, lowers FY revs outlook

  • Farmland Partners (FPI) beats by $0.01; beats on revs

  • First Commonwealth (FCF) reports EPS in-line, beats on revs

  • FirstEnergy (FE) beats by $0.01, beats on revs; reaffirms FY22 EPS guidance, guides FY22 revs in-line

  • Four Corners Property Trust (FCPT) reports FFO in-line, revs in-line

  • Garmin (GRMN) beats by $0.01, misses on revs; guides FY22 EPS below consensus, revs below consensus

  • General Dynamics (GD) beats by $0.02, misses on revs

  • Genuine Parts (GPC) beats by $0.17, beats on revs; raises FY22 EPS and revenue guidance

  • GlaxoSmithKline (GSK) beats by GBP0.05, beats on revs; guides FY22 revs above consensus

  • Group 1 Auto (GPI) beats by $1.34, beats on revs

  • Hawaiian Holdings (HA) misses by $0.03, beats on revs

  • Hess (HES) beats by $0.01, beats on revs

  • Highwoods Prop (HIW) beats by $0.02, reports revs in-line; raises FY22 FFO guidance

  • Hilton (HLT) beats by $0.24, beats on revs; guides Q3 EPS above consensus; guides FY22 EPS above consensus

  • Humana (HUM) beats by $0.99, reports revs in-line; guides FY22 EPS above consensus

  • IDEX Corp (IEX) beats by $0.13, beats on revs; guides FY22 EPS above consensus

  • Integra (IART) beats by $0.02, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; lowers FY22 guidance

  • Invesco (IVZ) misses by $0.11, reports revs in-line

  • Juniper Networks (JNPR) misses by $0.02, reports revs in-line; guides Q3 EPS in-line, revs above consensus

  • Kraft Heinz (KHC) beats by $0.02, beats on revs; raises FY22 organic net sales guidance to a high-single-digit percentage increase yr/yr

  • Lloyds Banking (LYG) reports H1 results; Sees FY22 NIM greater than 280 bps

  • Luxfer (LXFR) beats by $0.03, beats on revs; reaffirms FY22 EPS guidance

  • Manhattan Assoc (MANH) beats by $0.15, beats on revs; guides FY22 EPS above consensus, revs above consensus

  • Matador Resources (MTDR) beats by $0.34, beats on revs

  • Mercedes-Benz Group AG (DDAIF) reports Q2 results; revs rise 7% yr/yr; raises outlook

  • Microsoft (MSFT) misses by $0.06, reports slight miss on revs; evolving macroeconomic conditions and other unforeseen items had an impact on financial results; provides Q1 (Sep) guidance on conference call

  • Mondelez Int'l (MDLZ) beats by $0.03, beats on revs; increases dividend

  • Monro Muffler (MNRO) beats by $0.06, reports revs in-line

  • Mr. Cooper Group (COOP) reports Q2 (Jun) results, revenue grew +81.3% yr/yr

  • Navient (NAVI) beats by $0.14

  • New Oriental Education & Technology (EDU) misses by $0.97, misses on revs; guides Q1 revs above two analyst estimate

  • NextGen Healthcare (NXGN) reports EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

  • NexTier Oilfield (NEX) beats by $0.05, beats on revs; guides Q3 revs above consensus, expects improved profitability sequentially in Q3

  • Nielsen (NLSN) beats by $0.03, reports revs in-line; reaffirms FY22 EPS guidance

  • Old Dominion (ODFL) beats by $0.14, reports revs in-line

  • Option Care Health (OPCH) misses by $0.03, beats on revs; guides FY22 revs above consensus

  • Otis Worldwide (OTIS) beats by $0.07, misses on revs; lowers FY22 EPS below consensus

  • Owens Corning (OC) beats by $0.50, reports revs in-line

  • Paramount Group (PGRE) beats by $0.02, beats on revs; guides FY22 FFO in-line

  • Pebblebrook Hotel Trust (PEB) beats by $0.09, beats on revs; guides Q3 FFO in-line

  • Penske Auto (PAG) beats by $0.45, misses on revs; also increases share repurchase authorization by $250 mln

  • Precision Drilling (PDS) beats by $0.55, beats on revs

  • PROG Holdings (PRG) misses by $0.05, reports revs in-line; reaffirms FY22 revs guidance

  • Prosperity Bancshares (PB) beats by $0.01, reports revs in-line; declares dividend

  • Retail Opportunity Investments (ROIC) beats by $0.02, beats on revs; guides FY22 FFO in-line

  • Rio Tinto (RIO) beats by $0.34

  • Rockwell Automation (ROK) beats by $0.32, reports revs in-line; guides FY22 EPS above consensus, revs in-line

  • Rogers Comms (RCI) beats by $0.01, beats on revs; affirms 2022 guidance ranges

  • Rollins (ROL) reports EPS in-line, beats on revs

  • RPC (RES) beats by $0.12, beats on revs

  • Saia (SAIA) beats by $0.52, beats on revs

  • Sherwin-Williams (SHW) misses by $0.33, misses on revs; guides Q3 revs in-line; guides FY22 EPS below consensus, revs in-line

  • Shopify (SHOP) misses by $0.06, misses on revs; expects an adjusted operating loss in Q3 to materially increase over Q2

  • Silgan Holdings (SLGN) beats by $0.12, misses on revs; guides Q3 EPS in-line; reaffirms FY22 EPS guidance

  • Silicon Labs (SLAB) beats by $0.29, beats on revs; guides Q3 EPS above consensus, revs above consensus

  • Silk Road Medical (SILK) beats by $0.01, beats on revs

  • Skechers USA (SKX) beats by $0.15, beats on revs; guides Q3 EPS below consensus, revs in-line; lowers FY22 EPS below consensus, revs in-line

  • Spotify (SPOT) misses by 0.21, beats on revs; guides Q3 revs above consensus

  • Stepan Company (SCL) beats by $0.40, beats on revs; provides outlook commentary

  • Steven Madden (SHOO) beats by $0.02, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • Stifel Financial (SF) misses by $0.23, misses on revs

  • Strategic Education (EDU) misses by $0.02, reports revs in-line

  • Stryker (SYK) misses by $0.03, reports revs in-line; guides FY22 EPS below consensus

  • Taylor Morrison Home (TMHC) beats by $0.42, reports revs in-line

  • Teck Resources (TECK) misses by CAD0.05, beats on revs

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

  • Teledyne Tech (TDY) beats by $0.05, reports revs in-line; guides Q3 EPS below consensus; guides FY22 EPS below consensus

  • Tempur Sealy Int'l (TPX) reports EPS in-line, misses on revs; guides FY22 EPS below consensus, revs below consensus

  • Tenable (TENB) beats by $0.04, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY22 EPS in-line, reaffirms FY22 revs guidance

  • Teradyne (TER) beats by $0.07, beats on revs; guides Q3 EPS below consensus, revs below consensus

  • Teva Pharma (TEVA) beats by $0.12, reports revs in-line; lowers FY22 EPS in-line, revs mostly below consensus; announces agreement in principle on terms for nationwide opioids settlement

  • Texas Instruments (TXN) beats by $0.33, beats on revs; guides Q3 EPS in-line, revs in-line

  • T-Mobile US (TMUS) misses by $0.46, misses on revs

  • TriNet Group (TNET) beats by $0.57; guides Q3 EPS above consensus; guides FY22 EPS above consensus

  • Trinity Industries (TRN) misses by $0.03; guides FY22 EPS in-line

  • Trustmark (TRMK) beats by $0.09, beats on revs

  • Turning Point Brands (TPB) misses by $0.04, misses on revs; provides segment outlook

  • UDR (UDR) misses by $0.05, reports revs in-line; guides Q3 AFFO below consensus; guides FY22 AFFO below consensus

  • UMB Financial Corporation (UMBF) beats by $0.93, net interest income increased 6.9%

  • United Micro (UMC) misses by NT$0.08, beats on revs

  • Veritex Holdings (VBTX) misses by $0.14, misses on revs

  • Visa (V) beats by $0.23, beats on revs

  • Waste Mgmt (WM) beats by $0.05, beats on revs; guides FY22 revs above consensus

  • WesBanco Inc (WSBC) reports EPS in-line, misses on revs

  • Wyndham Hotels & Resorts (WH) beats by $0.13, beats on revs; guides FY22 EPS in-line

  • Zions Bancorp (ZION) misses by $0.07, beats on revs

  • Zurn Elkay Water Solutions (ZWS) beats by $0.03, beats on revs; expects Q3 Zurn sales to increase by high-teens percentage, expects Elkay sales to be between $145-$155 mln

  • General News:

  • Wuhan district orders lockdown for 1 million people after they found some COVID-19 cases, according toBloomberg

  • President Biden will speak with Chinese President Xi on Thursday, according to Bloomberg

  • President Biden considering $10,000 in student loan relief, according to Bloomberg

  • Senate Majority Leader Chuck Schumer (D-NY) tells donors that technology antitrust bill does not have votes to pass, according to Bloomberg

  • White House estimates that they need $7 bln in funding for monkeypox response, according to Washington Post

  • White House Economic Advisor Brian Deese says there will not be any oil reserve releases outside of 6 month window

  • US will look into technology companies entry into Buy Now Pay Later space, according to Financial Times

  • S&P revised Italy outlook to Stable from Positive on risks to reforms; ratings affirmed

  • AAR Corp (AIR) was awarded a two-year contract with two option years by the Norwegian Defence Logistics Organisation to provide commercial common parts for the Royal Norwegian Air Force P-8A aircraft fleet of five aircraft

  • AbCellera Biologics (ABCL) and Versant Ventures announce a multi-year collaboration to discover therapeutic antibodies for multiple targets selected by Versant's portfolio of biologics-focused biotechs

  • Algoma Steel Group (ASTL) has been notified by United Steelworkers Local 2724 that their members have successfully ratified their collective agreement, providing an enhanced economic package for their members and importantly setting out the process to transition the workforce to electric arc steelmaking

  • American Superconductor (AMSC) announces $40 mln of new energy power systems orders

  • Axalta Coating Systems (AXTA) CEO Robert Bryant stepping down to pursue other opportunities, effective August 31

  • BioNTech (BNTX) and Pfizer (PFE) announce Phase 2 study to evaluate the safety, tolerability, and immune response of an enhanced COVID-19 mRNA-based vaccine candidate at a 30 g dose level

  • Cassava Sciences (SAVA) will face criminal investigation over Alzheimer's drug, according to Reuters

  • Charter Comm Spectrum (CHTR) hit with combined $7.37 billion verdict for robbery, murder of elderly woman by cable installer

  • Cintas (CTAS) increases quarterly cash dividend to $1.15/share from $0.95/share

  • Coinbase (COIN): Cathie Wood sold 1.41 mln shares of Coinbase, according to Bloomberg

  • Credit Suisse (CS) to name Ulrich Krner as CEO following reported exit of Thomas Gottstein, according to Financial Times

  • Dollar General (DG) announces plans for three new distribution centers

  • Dr. Reddy's Laboratories (RDY) announces the launch of Bortezomib for Injection, 3.5 mg Single-Dose Vial in the U.S. Market

  • Editas Medicine (EDIT) Announces Clinical Achievements in the Development of EDIT-301 for Sickle Cell Disease

  • Exxon Mobil (XOM) has made two new discoveries offshore Guyana to the southeast of the Liza and Payara developments in the Stabroek block

  • Granite Constr (GVA) has been awarded an ~$40 mln dollar contract for improvements to State Highway 288 in the Houston Metro Area

  • IDEAYA Biosciences (IDYA) announce clinical trial collaboration with Amgen (AMGN) to evaluate MAT2A-PRMT5 synthetic lethality combination in MTAP deleted tumors

  • MSA Safety (MSA) has been awarded a $9 mln contract from the London Fire Brigade to supply firefighters with MSA's new M1 Self-Contained Breathing Apparatus and telemetry technology

  • ObsEva (OBSV) plans to initiate a corporate restructuring and refocus the Company's development and commercialization strategy

  • PayPal (PYPL): Elliott Management has taken a stake in PayPal, according to the Wall Street Journal

  • PROG Holdings' (PRG) Progressive Leasing selected as exclusive provider of lease-to-own purchase options for Samsung.com

  • Prometheus Biosciences (RXDX) plans to file an IND for PRA052 in Q3 and expects to advance PRA052 into a Phase 1 trial in Q4

  • Sony (SONY) announces small scale company split

  • Summit Therapeutics (SMMT) announces that Dr. Maky Zanganeh has been appointed as Co-Chief Executive Officer & President, effective immediately

  • Sutro Biopharma (STRO) announces that the first patient has been dosed in a Phase 1 study of an investigational candidate resulting from the collaboration between Sutro and Merck (MRK) for the development of a novel cytokine derivative therapeutic for the treatment of cancer

  • Teck Resources (TECK) adds $500 mln to its share repurchase program; dividend of $0.125 per share

  • Teck Resources (TECK) CEO announces retirement

  • TopBuild's (BLD) Board authorizes up to $200 mln repurchase of common stock

  • Tritium DCFC (DCFC) announces that Rob Topol has joined as a senior member of the finance team and is planned to transition to the role of Chief Financial Officer ('CFO') of the Company

  • Twitter (TWTR) schedules shareholder meeting for September 13to discuss merger agreement with Elon Musk

  • Union Pacific (UNP) signs deal with Wabtec (WAB) for 600 locomotive modernizations featuring a suite of digital solutions and innovations

  • Walt Disney (DIS): Star Wars Knights of the Old Republic game may get paused, according to Bloomberg

  • Wells Fargo (WFC) increases quarterly common stock dividend to $0.30/share from $0.25/share

  • M&A:

  • Shaw Comms (SJR) and Rogers Comms (RCI) to extend outside dat of proposed merger to Dec. 31, 2022

  • WestRock (WRK) has entered into an agreement to acquire the remaining interest in Grupo Gondi for $970 mln, plus the assumption of debt, representing an estimated implied enterprise value of $1.763 bln

  • Syndicate

  • AlloVir (ALVR) announces securities purchase agreement to sell 27,458,095 shares of common stock in a registered direct offering; proceeds to equal approx. $126.6 mln

  • Legend Biotech (LEGN) prices offering of 8.14 ADSs for $43.00 per ADS

  • PepsiCo (PEP) files mixed securities shelf offering

  • IPOs:

  • Expected to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • TEVA +19.5%, AMSC +15.1%, ENPH +9.9%, CMG+8.6%, MANH +8.1%, UMC +6.8%, SIGA +6.7%, CHX+6.1%, BXP +5%, HLT +4.8%, NAVI +4.3%, SILK+4.3%, TECK +4.2%, STRO +4%, TNET +4%, EQR+3.9%, SKX +3.8%, MSFT +3.8%, LYG +3.8%, BYD+3.7%, PEB +3.7%, GOOG +3.6%, CNI +3.6%, NEX+3.3%, CS +3.1%, RXDX +3%, IEX +2.8%, TXN +2.8%, SPOT +2.8%, CSGP +2.7%, AGYS +2.3%, ET +2.1%, EQNR +2%, OTIS +1.7%, MTDR +1.5%, AMP +1.4%, WH +1.4%, PDS +1.4%, HA +1.3%, EGP +1.3%, SYK+1.3%, LEGN +1.2%, CODX +1%

  • Gapping down:

  • FXLV -56.1%, AXTA -7.3%, JNPR -5.2%, TER -5%, USNA -4.9%, NXGN -4.8%, RIO -3.8%, PGRE -2.8%, DB -2.8%, AXS -2%, ZION -2%, CHTR -1.9%, TENB-1.5%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Carvana (CVNA) upgraded to Mkt Perform from Underperform at Raymond James

  • Celestica (CLS) upgraded to Neutral from Sell at Citigroup; tgt $10

  • International Seaways (INSW) upgraded to Buy from Neutral at BTIG Research; tgt $30

  • Liberty Energy (LBRT) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $25

  • Downgrades:

  • F45 Training Holdings (FXLV) downgraded to Neutral from Outperform at Macquarie; tgt lowered to $4

  • McDonald's (MCD) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $259

  • Others:

  • Altair Engineering (ALTR) initiated with an Outperform at Oppenheimer; tgt $60

  • ANSYS (ANSS) initiated with an Outperform at Oppenheimer; tgt $285

  • Archer Aviation (ACHR) initiated with an Outperform at Raymond James; tgt $8

  • Autodesk (ADSK) initiated with an Outperform at Oppenheimer; tgt $320

  • BigCommerce (BIGC) initiated with a Perform at Oppenheimer

  • Bill.com(BILL) assumed with an Outperform at Oppenheimer; tgt $150

  • Eve Holding (EVEX) initiated with a Mkt Perform at Raymond James

  • Guidewire Software (GWRE) initiated with an Outperform at Oppenheimer; tgt $85

  • HubSpot (HUBS) initiated with an Outperform at Oppenheimer; tgt $350

  • Procore Technologies (PCOR) assumed with an Outperform at Oppenheimer; tgt lowered to $60

  • PTC (PTC) initiated with a Perform at Oppenheimer

  • Shopify (SHOP) assumed with an Outperform at Oppenheimer; tgt lowered to $45

  • SkillSoft (SKIL) assumed with a Perform at Oppenheimer

  • Squarespace (SQSP) initiated with a Perform at Oppenheimer

  • Veeva Systems (VEEV) initiated with an Outperform at Oppenheimer; tgt $250

  • Wix.com(WIX) assumed with a Perform at Oppenheimer

Upcoming Events:

  • Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for July 23 (Briefing.comConsensus NA; Prior -6.3%)

  • 08:30 ET: Durable Orders for June (Briefing.comConsensus -0.5%; Prior 0.7%)

  • 08:30 ET: Durable Orders, Ex-Transportation for June (Briefing.comConsensus 0.3%; Prior 0.7%)

  • 08:30 ET: Adv. Retail Inventories for June (Briefing.comConsensus NA; Prior 1.1%)

  • 08:30 ET: Adv. Int. Trade in Goods for June (Briefing.comConsensus NA; Prior -$104.3B)

  • 08:30 ET: Adv. Wholesale Inventories for June (Briefing.comConsensus NA; Prior 2.0%)

  • 10:00 ET: Pending Home Sales for June (Briefing.comConsensus -1.5%; Prior 0.7%)

  • 10:30 ET: EIA Crude Oil Inventories for July 23 (Briefing.comConsensus NA; Prior -0.446M)

  • 14:00 ET: FOMC Rate Decision (Briefing.comConsensus 2.375%; Prior 1.625%)

  • Earnings:

  • Monday (Jul 25)

  • Morning:  BOH CBU DORM LKFN NEM PHG RPM SBSI SQSP

  • Afternoon: AGNC ARE ACC NTB BDN BRO CADE CDNS CALX CATY CLS CR WIRE FFIV HSTM HTLF HXL IBTX KALU LBRT LOGI MEDP NXPI PKG PCH RRC RNR SSD TBI UHS WHR WSFS

  • Tuesday (Jul 26)

  • Morning: MMM ACI ADM ARCC AWI AVNT CNC KO CVLT GLW CTS ECL FISV FELE GE GM GPK HUBB IRDM KMB MCD MCO MSCI NEOG NVR ONB PCAR PNR PGTI PII PHM RTX ST SSTK TRU UBS UPS WSO XRX

  • Afternoon:  AGYS GOOG AMP ABCB ASH AGR AXTA AXS BXP BYD CNI CHX CMG CB CSGP EGP ENPH EQR ESS FCF FIBK FE FCPT HA HIW HPP IEX JNPR LXFR MANH MTDR MSFT MDLZ NAVI NXGN NEX PGRE PEB RNST ROIC SILK SKX SYK TENB TER TXN AAN TNET TRMK UDR UMBF V WSBC WH ZION

Asia & Europe detail:

Asia: Nikkei +0.2%, Hang Seng -1.1%, Shanghai Composite -0.1%

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. China Securities Journal reported that about 70 cities will introduce measures to support the property market. South Korea's consumer confidence reached a 21-month low in the July reading. Japan's cabinet office raised Japan's economic assessment for the first time since April. Australia's treasurer warned that CPI will heat up and that the CPI forecast needs to be increased while cutting the GDP outlook.

  • In economic data:

  • China's June Industrial Profit 1.0% YTD (last 1.0%) o Japan's May Leading Index 101.2 (last 102.9) and Coincident Indicator -1.9% m/m (last 0.0%)

  • South Korea's July Consumer Confidence 86.0 (last 96.4)

  • Australia's Q2 CPI 1.8% qtr/qtr (expected 1.9%; last 2.1%); 6.1% yr/yr (expected 6.2%; last 5.1%)

---Equity Markets---

  • Japan's Nikkei: +0.2%

  • Hong Kong's Hang Seng: -1.1%

  • China's Shanghai Composite: -0.1%

  • India's Sensex: +1.0%

  • South Korea's Kospi: +0.1%

  • Australia's ASX All Ordinaries: +0.2%

---FX---

  • USD/JPY: -0.1% to 136.72

  • USD/CNH: -0.2% to 6.7503

  • USD/INR: UNCH at 79.87

Europe: DAX +0.2%, FTSE +0.5%, CAC +0.3%

Major European indices trade in the green. JPMorgan expects that the ECB will only raise rates by 50 bps before the end of the year, down from the previous forecast for 75-bps worth of rate hikes. Standard & Poor's reaffirmed Italy's BBB rating but lowered the outlook to Stable from Positive. Adidas lowered its outlook for the fiscal year. Germany's GfK consumer survey fell to a record low.

  • In economic data:

  • Eurozone's June M3 Money Supply 5.7% yr/yr (expected 5.4%; last 5.6%) and Private Sector Loans 4.6% yr/yr (last 4.6%)

  • Germany's August GfK Consumer Climate -30.6 (expected -28.9; last -27.7)

  • France's July Consumer Confidence 80, as expected (last 82)

  • Italy's July Consumer Confidence 94.8 (expected 96.6; last 98.3) and Business Confidence 106.7 (expected 108.0; last 109.5)

  • Swiss July ZEW Expectations -57.2 (last -72.7)

---Equity Markets---

  • STOXX Europe 600: +0.2%

  • Germany's DAX: +0.2%

  • U.K.'s FTSE 100: +0.5%

  • France's CAC 40: +0.3%

  • Italy's FTSE MIB: +0.7%

  • Spain's IBEX 35: +0.3%

---FX---

  • EUR/USD: +0.5% to 1.0163

  • GBP/USD: +0.3% to 1.2068

  • USD/CHF: -0.1% to 0.9613


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