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28/07/22 Briefing




The S&P 500 futures are down 13 points and are trading 0.4% below fair value. The Nasdaq 100 futures are down 90 points and are trading 0.9% below fair value. The Dow Jones Industrial Average futures are down 64 points and are trading 0.1% below fair value.

Amid a flood of earnings since yesterday's close, the market is poised for a weaker open this morning. Market participants are seemingly concentrating on disappointing guidance from the likes of Meta Platforms (META), Qualcomm (QCOM), and Best Buy (BBY).

Also, there's some contentions that the post-FOMC rally yesterday was overdone.

In other developments, Senators Manchin and Schumer have reached an agreement to vote on the Inflation Reduction Act of 2022. The bill will reduce deficit by $306 billion with 15% minimum corporate tax, invest in the technologies needed for all fuel types -- from hydrogen, nuclear, renewables, fossil fuels and energy storage. Also, it extends ACA subsidies and allows Medicare to negotiate prescription drugs and closes the carried interest loophole. 

In addition, the Senate passed a long-awaited $280 billion bill, which includes $52 billion for semiconductor manufacturing, to help the U.S. fend off competition from China. On a related note, President Biden is scheduled to speak with President Xi at 8:30 a.m. ET.

That call will start at the same time that the Advanced Q2 GDP report will be released. Market participants are anxious to see if the report will mark the second straight contraction in GDP. 

The 2-yr note yield is down four basis points to 2.96% while the 10-yr note yield is up four basis points to 2.77%.

In corporate news:

  • Meta Platforms (META 162.72, -6.86, -4.1%): misses by $0.09, reports revs in-line, DAUs increased 3%; guides Q3 revs below consensus, lowers 2022 expense guidance; announces CFO transition

  • Ford (F 14.07, +0.88, +6.7%): beats by $0.24, beats on revs; co raises quarterly dividend by 50% to $0.15/sh, new yield is 4.6%

  • Qualcomm (QCOM 148.25, -5.17, -3.4%): beats by $0.09, reports revs in-line; guides Q4 EPS in-line, revs below consensus

  • Merck (MRK 91.75, +0.52, +0.6%): beats by $0.16, beats on revs; guides FY22 EPS below consensus, raises revs in-line

  • Pfizer (PFE 52.40, +0.85, +1.7%): beats by $0.26, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • Etsy (ETSY 102.87, +7.37, +7.7%): beats by $0.19, beats on revs; GMS in line with guidance; guides Q3 revs in-line

  • Teladoc (TDOC 32.40, -10.84, -25.1%): beats by $0.15, reports revs in-line; guides Q3 EPS below consensus, revs in-line; reaffirms FY22revs guidance

  • Lam Research (LRCX 462.00, -4.66, -1.0%): beats by $1.50, beats on revs; guides Q1 EPS above consensus, revs in-line

  • ServiceNow (NOW 419.89, -28.71, -6.4%): beats by $0.07, reports revs in-line

  • Columbia Sportswear (COLM 73.50, -1.19, -1.6%): beats by $0.08, misses on revs; guides FY22EPS below consensus, revs below consensus due to macroeconomic conditions

  • O'Reilly Auto (ORLY 671.90, -17.50, -2.5%): misses by $0.21, reports revs in-line; cuts FY22EPS, revs, comps guidance

  • Best Buy (BBY 71.75, -2.74, -3.7%): expects Q2 FY23comparable sales1 to decline approximately 13%, with revenue approximately 7.5% higher than pre-pandemic Q2 FY20; downgraded to Hold from Buy at Jefferies

  • Honeywell (HON 185.70, +2.04, +1.1%): beats by $0.07, beats on revs; guides FY22EPS in-line, revs in-line; names Vimal Kapur as COO effective immediately

  • Southwest Air (LUV 38.40, -2.37, -5.8%): beats by $0.12, reports revs in-line

  • Spirit Airlines (SAVE 25.27, +0.91, +4.0%): has terminated the merger agreement with Frontier Group (ULCC); JetBlue Airways and Spirit Airlines announce that their boards of directors have approved a definitive merger agreement under which JetBlue will acquire Spirit for $33.50/share in cash

  • Stanley Black & Decker (SWK 101.26, -16.19, -13.8%): misses by $0.36, misses on revs; slashed FY22EPS below consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: +0.2%, India's Sensex: +1.9%, South Korea's Kospi: +0.8%, Australia's ASX All Ordinaries: +1.1%.

  • In economic data:

  • South Korea's August Manufacturing BSI Index 80 (last 82)

  • Australia's June Retail Sales 0.2% m/m (expected 0.5%; last 0.9%). Q2 Import Price Index 4.3% qtr/qtr (last 5.1%) and Export Price Index 10.1% qtr/qtr (last 14.6%)

  • New Zealand's July ANZ Business Confidence -56.7 (last -62.6)

  • In news:

  • Mitsubishi Motors raised its outlook for FY22and noted that the chip shortage has eased more than expected.

  • Hong Kong will lower its growth forecast.

  • FT reported that the People's Bank of China is planning a $148 bln bailout of property developers.

  • Australia's treasurer said that inflation is expected to peak at 7.75% in Q4.

  • Major European indices trade on a mixed note with Spain's IBEX (-1.0%) showing relative weakness. STOXX Europe 600: +0.5%, Germany's DAX: UNCH, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.1%, Italy's FTSE MIB: +1.1%, Spain's IBEX 35: -1.0%.

  • In economic data:

  • Eurozone's July Business and Consumer Survey 99.0 (expected 102.0; last 103.5)

  • France's June PPI 1.3% m/m (last -0.3%)

  • Italy's May Industrial Sales 1.4% m/m (last 2.8%); 23.6% yr/yr (last 22.0%). June non-EU trade deficit EUR2.82 bln (last deficit of EUR260 mln)

  • Spain's June Retail Sales 1.0% yr/yr (expected 1.3%; last 1.3%). Q2 Unemployment Rate 12.48% (expected 13.00%; last 13.65%). July Business Confidence -5.2 (last 2.3)

  • In news:

  • European Central Bank policymaker Visco said that the next ECB rate hike will depend on the trend in the real economy and that it is too early to say where rates will peak.

  • The spread between Italy's 10-yr yield and Germany's 10-yr yield is rising back to its high from mid-June.

  • Germany is likely to report hotter than expected July PPI at 8:00 ETafter a sharp increase in a key regional inflation report.


U.S. equity futures:

  • S&P 500 Futures: -12 @ 4,011

  • DJIA Futures: -85 @ 32,144

  • Nasdaq 100 Futures: -54 @ 12,517

Overseas:

  • Europe: DAX UNCH, FTSE -0.1%, CAC +0.1%

  • Asia: Nikkei +0.4%, Hang Seng -0.2%, Shanghai Composite +0.2%

Commodities:

  • Crude Oil +2.47 @ 99.73

  • Nat Gas  -0.164 @ 8.390

  • Gold +18.14 @ 1737.50

  • Silver +0.737  @ 19.332

  • Copper +0.0498 @ 3.4798

U.S. Summary:

  • Earnings/Guidance:

  • 8x8 (EGHT) beats by $0.06, reports revs in-line; guides Q2 revs below consensus; guides FY23 revs below consensus

  • Acadia Healthcare (ACHC) beats by $0.06, reports revs in-line; guides FY22 EPS in-line, revs in-line

  • AGCO Corp (AGCO) beats by $0.27, reports revs in-line; reaffirms FY22 EPS guidance, guides FY22 revs in-line

  • Agnico-Eagle Mines (AEM) reports EPS in-line, beats on revs, payable gold production of 858,170 ounces

  • Alamos (AGI) beats by $0.01, misses on revs

  • Align Tech (ALGN) misses by $0.23, misses on revs

  • Allegion (ALLE) beats by $0.04, reports revs in-line; guides FY22 EPS below consensus, revs below consensus

  • Allegro Microsystems (ALGM) beats by $0.02, beats on revs; guides Q2 EPS above consensus, revs above consensus

  • Amedisys (AMED) beats by $0.24, misses on revs; reaffirms FY22 EPS guidance, guides FY22 revs below consensus

  • American Water Works (AWK) beats by $0.05, misses on revs; reaffirms FY22 EPS guidance

  • Anglo American (NGLOY) reports H1 results; revs decline 17% yr/yr

  • Anheuser-Busch InBev (BUD) reports EPS in-line, beats on revs

  • A.O. Smith (AOS) beats by $0.01, reports revs in-line; reaffirms FY22 EPS guidance; lowers FY22 revenue guidance

  • ArcelorMittal (MT) misses by $0.05, beats on revs

  • Arch Capital (ACGL) beats by $0.25, beats on revs

  • Arch Coal (ARCH) misses by $2.49, beats on revs

  • ASGN Incorporated (ASGN) beats by $0.06, beats on revs; also announces a new $400 mln stock repurchase program

  • AvalonBay (AVB) beats by $0.06, beats on revs

  • Barclays PLC (BCS) reports H1 results; continues to target RoTE greater than 10%

  • Baxter (BAX) reports EPS in-line, misses on revs; guides Q3 EPS below consensus; guides FY22 EPS below consensus

  • Best Buy (BBY) expects Q2 FY23 comparable sales1 to decline approximately 13%, with revenue approximately 7.5% higher than pre-pandemic Q2 FY20

  • Boot Barn Holdings (BOOT) beats by $0.11, reports revs in-line; guides FY23 EPS below consensus, revs below consensus

  • Carlisle Cos (CSL) beats by $1.16, beats on revs

  • Cenovus Energy (CVE) beats by $0.32

  • Century Communities (CCS) beats by $0.32, beats on revs

  • Chemed (CHE) beats by $0.06, misses on revs; narrows FY22 EPS guidance

  • Churchill Downs (CHDN) misses by $0.09, misses on revs

  • Cheesecake Factory (CAKE) misses by $0.25, reports revs in-line

  • Cincinnati Fincl (CINF) misses by $0.39

  • Cognizant Tech (CTSH) beats by $0.05, reports revs in-line; guides Q3 revs below consensus; raises FY22 EPS guidance; lowers FY22 revenue guidance

  • Columbia Sportswear (COLM) beats by $0.08, misses on revs; guides FY22 EPS below consensus, revs below consensus due to macroeconomic conditions

  • Comcast (CMCSA) beats by $0.09, reports revs in-line

  • Comfort Systems (FIX) beats by $0.16, beats on revs

  • Community Health (CYH) reports Q2 (Jun) results, misses on revs; guides FY22 revs below consensus

  • CONMED (CNMD) beats by $0.01, beats on revs; lowers FY22 EPS and revenue guidance

  • Core Labs (CLB) misses by $0.02, reports revs in-line; guides Q3 EPS below consensus, revs in-line

  • Coursera (COUR) misses by $0.01, misses on revs; guides Q3 revs below consensus; guides FY22 revs below consensus

  • Duke Realty (DRE) reports FFO in-line, revs in-line

  • Element Solutions (ESI) beats by $0.02, reports revs in-line; guides FY22 EPS in-line

  • EMCOR Group (EME) beats by $0.29, beats on revs; guides FY22 EPS in-line, revs above consensus; also increases dividend and authorizes new $500 mln share repurchase plan

  • Equinix (EQIX) beats by $2.53, reports revs in-line

  • EQT Corp. (EQT) beats by $0.03, misses on revs; raises quarterly base dividend 20% to $0.15/share

  • Etsy (ETSY) beats by $0.19, beats on revs; GMS in line with guidance; guides Q3 revs in-line

  • Euronet (EEFT) beats by $0.05, beats on revs; guides FY22EPS below consensus

  • FirstCash (FCFS) beats by $0.10, beats on revs

  • Flex (FLEX) beats by $0.06, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY23EPS in-line, revs above consensus

  • Flowserve (FLS) beats by $0.05, reports revs in-line; reaffirms FY22EPS guidance, revs guidance

  • Ford Motor (F) beats by $0.24, beats on revs; co raises quarterly dividend by 50% to $0.15/sh, new yield is 4.6%

  • FormFactor (FORM) beats by $0.03, reports revs in-line; guides Q3 EPS below consensus, revs below consensus

  • Fortive (FTV) beats by $0.06, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY22EPS mostly above consensus, revs in-line

  • Fortune Brands Home & Security (FBHS) beats by $0.08, beats on revs; guides FY22EPS in-line, revs above consensus

  • Forward Air (FWRD) beats by $0.21, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; guides FY22EPS above consensus

  • Fresenius Medical (FMS) and DaVita (DVA): Fresenius SE & Co. KGaA revised guidance noting "significantly worsening headwinds at Fresenius Medical Care impact Group net income in FY/22"

  • Frontier Group Holdings (ULCC) beats by $0.02, beats on revs; sees Q3 RASM growth of over 20%; mutually terminated merger agreement with Spirit Airlines

  • Globe Life (GL) beats by $0.02, misses on revs; slightly raises FY22EPS guide

  • Goosehead Insurance (GSHD) misses by $0.01, beats on revs; lowers FY22revs below consensus

  • Graco (GGG) beats by $0.01, beats on revs

  • Harley-Davidson (HOG) beats by $0.41, beats on revs; reaffirms outlook

  • Hershey Foods (HSY) beats by $0.12, beats on revs; raises FY22guidance; 

  • Hertz Global (HTZ) beats by $0.02, reports revs in-line

  • Hologic (HOLX) beats by $0.25, beats on revs; guides Q4 EPS in-line, revs in-line; raises FY22EPS above consensus, revs above consensus

  • Honeywell (HON) beats by $0.07, beats on revs; guides FY22EPS in-line, revs in-line

  • ICON plc (ICLR) beats by $0.07, reports revs in-line; guides FY22EPS above consensus, revs below consensus

  • Impinj (PI) beats by $0.12, beats on revs; guides Q3 EPS above consensus, revs above consensus

  • InMode (INMD) beats by $0.08, beats on revs; guides FY22EPS above consensus, revs above consensus

  • Invitation Homes (INVH) beats by $0.01, beats on revs; guides FY22FFO in-line

  • Janus Henderson Group (JHG) misses by $0.02, reports revs in-line

  • JBT Corp (JBT) misses by $0.09, misses on revs; guides Q3 EPS below consensus; guides FY22EPS below consensus

  • Keurig Dr Pepper (KDP) reports EPS in-line, beats on revs

  • Kilroy Realty (KRC) beats by $0.06, beats on revs; guides FY22FFO in-line

  • Kimco Realty (KIM) beats by $0.02, reports revs in-line; raises FY22FFO mostly above consensus; raises dividend

  • Kinross Gold (KGC) misses by $0.04, misses on revs

  • Kirby (KEX) beats by $0.05, beats on revs

  • Laboratory Corp (LH) beats by $0.28, misses on revs; guides FY22EPS in-line, lowers FY22revenue guidance; to spin off Clinical Development unit to shareholders

  • Lam Research (LRCX) beats by $1.50, beats on revs; guides Q1 EPS above consensus, revs in-line

  • Lending Club (LC) beats by $0.05, beats on revs; guides Q3 revs below consensus; reaffirms FY22revs guidance

  • LendingTree (TREE) beats by $0.24, reports revs in-line; guides Q3 revs below consensus; lowers FY22revs below consensus

  • Lennox Int'l (LII) beats by $0.25, beats on revs; raises FY22EPS and revenue guidance

  • Lincoln Electric (LECO) beats by $0.21, beats on revs

  • Martin Marietta (MLM) beats by $0.18, beats on revs

  • Masco (MAS) misses by $0.04, reports revs in-line; guides FY22EPS in-line

  • Materialise (MTLS) reports EPS in-line, beats on revs; guides FY22revs below consensus

  • MaxLinear (MXL) beats by $0.10, reports revs in-line; guides Q3 revs in-line

  • MDC Holdings (MDC) beats by $0.09, beats on revs

  • Meritage (MTH) beats by $0.90, beats on revs

  • Merit Medical (MMSI) beats by $0.15, beats on revs; raises FY22EPS in-line, revs in-line

  • Merck (MRK) beats by $0.16, beats on revs; guides FY22EPS below consensus, raises revs in-line

  • Meta Platforms (META) misses by $0.09, reports revs in-line, DAUs increased 3%; guides Q3 revs below consensus, lowers 2022 expense guidance; announces CFO transition

  • Methanex (MEOH) misses by $0.57, reports revs in-line; increases dividend 20%

  • Mid-America Aptmt (MAA) beats by $0.01, beats on revs; raises FY22FFO in-line

  • MKS Instruments (MKSI) beats by $0.28, beats on revs; guides Q3 EPS in-line, revs in-line

  • Moelis (MC) beats by $0.14, beats on revs

  • Molina Healthcare (MOH) beats by $0.18, beats on revs; raises FY22guidance

  • MSA Safety (MSA) beats by $0.04, beats on revs

  • Myovant Sciences (MYOV) beats by $0.04, beats on revs

  • NCR Corp (NCR) beats by $0.11, beats on revs; Board continues to pursue its previously announced strategic review process

  • Nestle (NSRGY) reports H1 results, revs increased 9%

  • NETGEAR (NTGR) beats by $0.05, beats on revs; guides Q3 revs above consensus

  • Noodles & Co (NDLS) misses by $0.02, reports revs in-line, comps +5.1%; guides Q3 revs in-line, comps in the low-single digits

  • Northrop Grumman (NOC) misses by $0.04, misses on revs; reaffirms FY22EPS guidance, revs guidance

  • NorthWestern (NWE) beats by $0.01, beats on revs; guides FY22EPS in-line

  • NOV Inc. (NOV) beats by $0.14, beats on revs

  • Oceaneering Intl (OII) misses by $0.05, reports revs in-line

  • OneMain Holdings (OMF) misses by $0.10, interest income up 3%

  • Orange (ORAN) reports Q2 results; misses on revs, reaffirms outlook

  • O'Reilly Auto (ORLY) misses by $0.21, reports revs in-line; cuts FY22EPS, revs, comps guidance

  • Oshkosh (OSK) misses by $0.44, misses on revs; guides FY22EPS below consensus, revs below consensus; declares dividend

  • Pathward Financial (CASH) beats by $0.01, misses on revs; guides FY22EPS in-line; guides FY23EPS below consensus

  • Pegasystems (PEGA) misses by $0.43, misses on revs

  • Pfizer (PFE) beats by $0.26, beats on revs; reaffirms FY22EPS guidance, revs guidance

  • Piedmont Office Realty Trust (PDM) misses by $0.02; lowers FY22FFO guidance

  • Pilgrim's Pride (PPC) beats by $0.38, beats on revs

  • Plexus (PLXS) beats by $0.23, beats on revs; guides Q4 revs above consensus

  • PTC (PTC) misses by $0.10, misses on revs; guides FY22revs in-line

  • Qualcomm (QCOM) beats by $0.09, reports revs in-line; guides Q4 EPS in-line, revs below consensus

  • Reliance Steel (RS) beats by $0.13, beats on revs; guides Q3 EPS below consensus; refreshes stock repurchase authorization to $1 bln

  • Sallie Mae (SLM) beats by $0.03; guides FY22EPS below consensus

  • Samsung (SSNLF) reports Q2 results

  • Sanofi (SNY) beats by 0.08, beats on revs; raises FY22EPS guidance

  • ServiceNow (NOW) beats by $0.07, reports revs in-line

  • Shell plc (SHEL) beats by $0.08; beats on revs

  • Silicon Motion (SIMO) beats by $0.12, misses on revs

  • Sirius XM (SIRI) misses by $0.01, reports revs in-line

  • SITE Centers beats by $0.03, beats on revs; guides FY22FFO in-line

  • SJW (SJW) misses on top and bottom lines; reaffirms FY22EPS guidance

  • Sleep Number (SNBR) beats by $0.92, beats on revs; lowers FY22EPS and revenue guidance

  • Smith & Nephew (SNN) reports in-line earnings, misses on revs; reaffirms FY22revs outlook

  • Sonic Automotive (SAH) misses by $0.10, misses on revs

  • Southwest Air (LUV) beats by $0.12, reports revs in-line

  • SPS Commerce (SPSC) beats by $0.04, reports revs in-line; guides Q3 EPS in-line, revs above consensus; guides FY22EPS above consensus, revs above consensus; authorizes up to $50 mln for share repurchases

  • SS&C Techs (SSNC) misses by $0.07, misses on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY22guidance

  • STAG Industrial (STAG) beats by $0.02, reports revs in-line

  • Stanley Black & Decker (SWK) misses by $0.36, misses on revs; slashed FY22EPS below consensus

  • Stellantis (STLA) reports H1 results; beats on revs; reaffirms FY22outlook

  • STMicroelectronics (STM) beats by $0.13, beats on revs; guides Q3 revs above consensus

  • Sunnova Energy (NOVA) misses by $0.10, beats on revs

  • Takeda Pharma (TAK) beats on top and bottom lines; reaffirms outlook

  • TechnipFMC (FTI) misses by $0.03, reports revs in-line; reaffirms FY22revs guidance; authorizes $400 mln share repurchase plan; reaffirms intent to initiate a quarterly dividend in 2H23

  • Teladoc (TDOC) beats by $0.15, reports revs in-line; guides Q3 EPS below consensus, revs in-line; reaffirms FY22revs guidance

  • Teleflex (TFX) beats by $0.05, misses on revs; lowers FY22EPS below consensus

  • The Shyft Group (SHYF) beats by $0.03, beats on revs; guides FY22EPS in-line, revs below consensus

  • TotalEnergies SE (TTE) reports Q2 results; beats on revs

  • Tronox (TROX) misses by $0.01, misses on revs; reaffirms FY22EPS guidance

  • Tyler Tech (TYL) beats by $0.06, beats on revs; guides FY22EPS below consensus, revs in-line

  • United Rentals (URI) beats by $1.41, beats on revs; raises FY22revs above consensus

  • Upwork (UPWK) beats by $0.04, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY22EPS in-line, revs above consensus

  • Valero Energy (VLO) beats by $2.16, beats on revs

  • VICI Properties (VICI) beats by $0.03, beats on revs; reaffirms FY22AFFO guidance

  • Vista Outdoor (VSTO) beats by $0.41, beats on revs; guides FY23EPS in-line, revs in-line

  • Volkswagen AG (VWAGY) reports Q2 results; revs rise 3%; reaffirms FY22outlook

  • Willis Towers Watson (WTW) beats by $0.03, misses on revs

  • Xcel Energy (XEL) reports EPS in-line, beats on revs; reaffirms FY22EPS guidance

  • General News:

  • House Democrats release summary of Inflation Reduction Act of 2022; will reduce deficit by $306 billion with 15% minimum corporate tax; invests in the technologies needed for all fuel types -- from hydrogen, nuclear, renewables, fossil fuels and energy storage; extends ACA subsidies and allows Medicare to negotiate prescription drugs

  • Senator Joe Manchin (D-WV) announced he has reached an agreement with Senate Majority Leader Chuck Schumer (D-NY) to vote on the Inflation Reduction Act of 2022; proposes 15% corporate minimum tax; act will invest in all fuel types - from hydrogen, nuclear, renewables, fossil fuels and energy storage; will help lower cost of health insurance and drugs

  • Senator Kyrsten Sinema (D-AZ) has not yet announced whether she will support reconciliation bill that includes tax increases, energy, and healthcare spending, according to Axios

  • Senate reconciliation bill includes new $4000 tax credit for used electric vehicles, according to Reuters

  • Doubleline Capital's Jeffrey Gundlach CNBC interview: Fed has regained credibility and is no longer behind the curve; He said he thinks a crash landing is avoidable, but there will be "noticeable economic distress"; Fed is getting close to end of rate hikes; he thinks rates will go to 3% and the Fed will pause

  • AbbVie's (ABBV) Allergan unit reaches agreement to pay over $2.0 bln in opioid settlement, according to Bloomberg

  • Alibaba (BABA): Jack Ma wants to cede control of Ant Group, according to the Wall Street Journal

  • Alphabet (GOOG): UK CMA issues July report on implementation of the Privacy Sandbox commitments

  • Archaea Energy (LFG) announces that its wholly-owned subsidiary Archaea Energy Marketing LLC has entered into a medium-term RNG purchase and sale agreement with UGI Utilities

  • Banco Santander Chile (BSAC): Romn Blanco will take over as Chief Executive Officer and country head of Banco Santander Chile, effective August 1, 2022

  • Charles Schwab (SCHW) increases quarterly cash dividend to $0.22/share from $0.20/share and authorizes $15 bln stock repurchase

  • Honeywell (HON) names Vimal Kapur as COO effective immediately

  • Ionis Pharma (IONS) announces "positive" topline results of the Phase 2b RE-THINC ESRD study of fesomersen, formerly IONIS-FXI-LRx, in patients with end-stage renal disease on hemodialysis

  • LabCorp (LH) aiming to spin-off clinical drug trial unit, according to the Wall Street Journal

  • Lazard (LAZ) increases quarterly dividend to $0.50/share from $0.47/share

  • Lending Club (LC) names Drew LaBenne CFO, effective September 1; current CFO Tom Casey will be retiring

  • Navios Maritime Partners (NMM) agreed to acquire a 36-vessel drybulk fleet for a gross purchase price of $835.0 mln, including the assumption of $441.6 mln of bank liabilities, bareboat obligations and finance leasing obligations, subject to debt and working capital adjustments from Navios Maritime Holdings (NM)

  • Northeast Comm. Bancorp's (NECB) Board authorized a stock repurchase program to acquire up to 1,637,794 shares, or 10%, of the Co's common stock

  • Organon (OGN) and Cirqle Biomedical have entered into a research collaboration and exclusive license agreement for a novel investigational non-hormonal, on-demand contraceptive candidate

  • Regeneron Pharma (REGN) announces that scientists from the Regeneron Genetics Center have uncovered rare genetic loss-of-function mutations in the CIDEB gene that are associated with substantial protection from liver disease, including serious diseases such as nonalcoholic steatohepatitis and cirrhosis

  • Rivian (RIVN) aiming to eliminate 6% of workforce, according to Bloomberg

  • Rocket Lab USA (RKLB) announces that its high-efficiency, radiation-hardened Coverglass Interconnected solar Cell assemblies will power the three Lockheed Martin (LMT) Next Gen OPIR GEO satellites for the United States Space Force

  • TechnipFMC (FTI) Board authorized a new $400 mln share repurchase program

  • Turning Point Therapeutics (TPTX) announces receipt of "positive" feedback from the U.S. Food and Drug Administration at a pre-New Drug Application meeting completed within the second quarter

  • Twitter (TWTR) is not against October 17trial date for Elon Musk buyout case, according to Bloomberg

  • Xenon Pharmaceuticals (XENE) treatment of Dravet Syndrome granted orphan designation by FDA, according to FDA website

  • Yamana Gold (AUY) announces "positive" exploration drilling results at both Odyssey and Wasamac, as the Company continues to advance its strategic initiatives across its portfolio, further underpinning its strategic outlook and efforts to meaningfully extend its sustainable production platform

  • M&A:

  • ArcelorMittal (MT) acquires CSP in Brazile of $2.2 bln

  • PBF Energy (PBF) and PBF Logistics (PBFX) announce merger agreement whereby PBF will acquire PBFX through cash and stock

  • JetBlue Airways (JBLU) and Spirit Airlines (SAVE) announce that their boards of directors have approved a definitive merger agreement under which JetBlue will acquire Spirit for $33.50/share in cash

  • Laboratory Corp (LH) to spin off Clinical Development Business

  • Spirit Airlines (SAVE) has terminated the merger agreement with Frontier Group (ULCC)

  • Vista Outdoor (VSTO) announces the acquisition of Simms Fishing Products for a purchase price of $192.5 mln

  • WEX (WEX) plans to acquire Exxon Mobil's (XOM) Business Card program

  • Syndicate

  • Element Solutions (ESI) files mixed securities shelf offering

  • Global Water Resources (GWRS) commences common stock offering

  • Hubbell (HUBB) files mixed securities shelf offering

  • Lexicon Pharma (LXRX) commences common stock offering

  • IPOs:

  • Expected to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • NOVA +15%, PI +12.3%, RUN +11%, FSLR +9.5%, ARGX +8.8%, SPWR +8.3%, NTGR +6.9%, ETSY+6.1%, PBF +6%, MYOV +6%, MMSI +6%, F +5.6%, SEDG +5%, MAA +5%, PLXS +5%, AEM +5%, ESI+5%, SAVE +4.9%, AGI +4.8%, LXU +4.5%, CVE+4.1%, WFRD +4%, TMO +4%, CSIQ +3.9%, ENPH+3.8%, CHRW +3.8%, NMM +3.6%, CSL +3.5%, URI+3.5%, MUSA +3.4%, JKS +3.3%, GFL +3.2%, KGC+2.8%, DQ +2.7%, VICI +2.7%, EEFT +2.6%, PPC +2%, NOV +2%, RKLB +1.9%, VSTO +1.9%, RE +1.9%, GEL+1.8%, SCHW +1.6%, FBHS +1.6%, SHEL +1.5%, XEL+1.5%, LFG +1.4%, AUY +1.1%, MOH +1%

  • Gapping down:

  • CYH -50.6%, COUR -33.1%, TDOC -25.5%, LXRX-20.5%, FORM -17.1%, SWK -15.1%, FMS -13.7%, SNN -11%, PEGA -9.6%, CNMD -8.6%, NOW -7.4%, PTC -6.2%, NDLS -6.1%, BUD -5.9%, DVA -5.7%, META -5.5%, SNBR -5.3%, OSTK -5.2%, CCS -5%, SPSC -5%, BBY -4.5%, CTSH -4.4%, ORLY -4.3%, QS-4.3%, MEOH -4.1%, OMF -4.1%, BCS -4.1%, ORAN-4%, TTE -3.8%, ICLR -3.6%, QCOM -3.5%, STAG-3.5%, SIMO -3.4%, CLB -3.4%, BOOT -2.8%, AMED-2.8%, CINF -2.5%, EGHT -2.4%, CG -2.4%, WTW-2.4%, TROX -2.2%, CHDN -2.2%, EQT -2.1%, SJW-2.1%, COLM -1.6%, AR -1.6%, ULCC -1.3%, FOUN-1.2%, LC -1.2%, SNY -1.1%, LRCX -1%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Enphase Energy (ENPH) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $281

  • Equinix (EQIX) upgraded to Outperform from Perform at Oppenheimer; tgt $750

  • Teck Resources (TECK) upgraded to Buy from Hold at Canaccord Genuity

  • Downgrades:

  • Best Buy (BBY) downgraded to Hold from Buy at Jefferies; tgt lowered to $71

  • Boston Properties (BXP) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $100

  • Cognizant Tech (CTSH) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $77

  • Goosehead Insurance (GSHD) downgraded to Mkt Perform from Outperform at William Blair

  • LegalZoom.com(LZ) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9

  • Pathward Financial (CASH) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $45

  • Shopify (SHOP) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $32

  • Silicon Labs (SLAB) downgraded to Hold from Buy at Summit Insights

  • Taylor Morrison Home (TMHC) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $29

  • TJX (TJX) downgraded to Hold from Buy at Gordon Haskett; tgt lowered to $60

  • Others:

  • Bicycle Therapeutics (BCYC) initiated with an Overweight at Barclays; tgt $30

  • Five Below (FIVE) initiated with a Neutral at MKM Partners; tgt $115

  • Poshmark (POSH) assumed with a Neutral at MKM Partners; tgt $11

  • Semtech (SMTC) initiated with a Buy at The Benchmark Company; tgt $81

  • Shutterstock (SSTK) initiated with an Equal-Weight at Morgan Stanley; tgt $54

  • SQL Technologies (SKYX) initiated with a Buy at The Benchmark Company; tgt $15

  • Stitch Fix (SFIX) assumed with a Neutral at MKM Partners; tgt $6

  • Tractor Supply (TSCO) initiated with a Buy at MKM Partners; tgt $230

  • Wayfair (W) initiated with a Neutral at MKM Partners; tgt $50

Upcoming Events:

  • Econ Data:

  • 08:30 ET: GDP-Adv. for Q2 (Briefing.comConsensus 0.5%; Prior -1.6%)

  • 08:30 ET: Chain Deflator - Adv. for Q2 (Briefing.comConsensus 7.1%; Prior 8.2%)

  • 08:30 ET: Initial Claims for July 23 (Briefing.comConsensus 253K; Prior 251K)

  • 08:30 ET: Continuing Claims for July 16 (Briefing.comConsensus NA; Prior 1384K)

  • 10:30 ET: EIA Natural Gas Inventories for July 23 (Briefing.comConsensus NA; Prior +32 bcf)

  • 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 +0.4%, Hang Seng -0.2%, Shanghai Composite +0.2%

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Mitsubishi Motors raised its outlook for FY22 and noted that the chip shortage has eased more than expected. Hong Kong will lower its growth forecast. FT reported that the People's Bank of China is planning a $148 bln bailout of property developers. Australia's treasurer said that inflation is expected to peak at 7.75% in Q4.

  • In economic data:

  • South Korea's August Manufacturing BSI Index 80 (last 82)

  • Australia's June Retail Sales 0.2% m/m (expected 0.5%; last 0.9%). Q2 Import Price Index 4.3% qtr/qtr (last 5.1%) and Export Price Index 10.1% qtr/qtr (last 14.6%)

  • New Zealand's July ANZ Business Confidence -56.7 (last -62.6)

---Equity Markets---

  • Japan's Nikkei: +0.4%

  • Hong Kong's Hang Seng: -0.2%

  • China's Shanghai Composite: +0.2%

  • India's Sensex: +1.9%

  • South Korea's Kospi: +0.8%

  • Australia's ASX All Ordinaries: +1.1%

---FX---

  • USD/JPY: -0.7% to 135.57

  • USD/CNH: +0.2% to 6.7531

  • USD/INR: -0.3% to 79.63

Europe: DAX UNCH, FTSE -0.1%, CAC +0.1%

Major European indices trade on a mixed note with Spain's IBEX (-1.0%) showing relative weakness. European Central Bank policymaker Visco said that the next ECB rate hike will depend on the trend in the real economy and that it is too early to say where rates will peak. The spread between Italy's 10-yr yield and Germany's 10-yr yield is rising back to its high from mid-June. Germany is likely to report hotter than expected July PPI at 8:00 ETafter a sharp increase in a key regional inflation report.

  • In economic data:

  • Eurozone's July Business and Consumer Survey 99.0 (expected 102.0; last 103.5)

  • France's June PPI 1.3% m/m (last -0.3%)

  • Italy's May Industrial Sales 1.4% m/m (last 2.8%); 23.6% yr/yr (last 22.0%). June non-EU trade deficit EUR2.82 bln (last deficit of EUR260 mln)

  • Spain's June Retail Sales 1.0% yr/yr (expected 1.3%; last 1.3%). Q2 Unemployment Rate 12.48% (expected 13.00%; last 13.65%). July Business Confidence -5.2 (last 2.3)

---Equity Markets---

  • STOXX Europe 600: +0.5%

  • Germany's DAX: UNCH

  • U.K.'s FTSE 100: -0.1%

  • France's CAC 40: +0.1%

  • Italy's FTSE MIB: +1.1%

  • Spain's IBEX 35: -1.0%

---FX---

  • EUR/USD: -0.7% to 1.0129

  • GBP/USD: -0.3% to 1.2120

  • USD/CHF: +0.3% to 0.9622


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