28/07/23 Briefing

The S&P 500 futures are up 24 points and are trading 0.5% above fair value. The Nasdaq 100 futures are up 140 points and are trading 0.9% above fair value. The Dow Jones Industrial Average futures are up 117 points and are trading 0.3% above fair value.

Stock futures indicate a higher open. Market participants continue to show an inclination to buy on any weakness despite the massive index gains to start the year. The slate of earnings news since yesterday's close, which featured several blue chip names, has received mostly positive reactions, helping to boost the broader market. 

There has also been some helpful rebound action in the mega cap stocks. 

The Bank of Japan made no changes to its interest rates, but voted to conduct yield curve control policies with greater flexibility, allowing the 10-yr JGB yield to rise up to 1.0% while maintaining the target at 0.50%. The news gave a brief boost to the yen before the currency returned to little changed against the dollar. The U.S. Dollar Index is down 0.3% to 101.44 with USD/JPY -0.2% to 139.15.

The 2-yr Treasury note yield is down six basis points to 4.86% and the 10-yr note yield is down five basis points to 3.96%.

In corporate news:

• Intel (INTC 36.67, +2.10, +6.1%): beats by $0.17, beats on revs, gross margin of 39.8% compared to guidance of 37.5%; guides Q3 EPS above consensus, revs in-line; Demand for AI expanding pipeline of business engagements

• Ford Motor (F 13.62, -0.11, -0.8%): beats by $0.18, beats on revs; raises FY23 adjusted EBIT and FCF guidance; raises FY23 EBIT guidance for Pro and Blue segments but lowers EBIT guidance for EV segment

• Procter & Gamble (PG 154.88, +2.77, +1.8%): beats by $0.05, beats on revs; guides FY24 EPS in-line, revs in-line

• Chevron (CVX 158.67, -0.99, -0.6%): misses by $0.04, beats on revs (EPS in line with pre-announcement on 7/24)

• Exxon Mobil (XOM 105.00, -0.42, -0.4%): misses by $0.09, beats on revs

• Colgate-Palmolive (CL 77.30, +0.19, +0.3%): beats by $0.02, beats on revs

• Boston Beer Co (SAM 345.01, +31.46, +10.0%): beats by $1.34, beats on revs; reaffirms FY23 EPS guidance

• Coursera (COUR 15.55, +2.54, +19.5%): misses by $0.11, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus; upgraded to Overweight from Neutral at Cantor Fitzgerald

• First Solar (FSLR 221.20, +22.40, +11.3%): beats by $0.59, beats on revs; guides FY23 EPS in-line, revs in-line; upgraded to Buy from Neutral at BofA Securities

• Juniper Networks (JPNR 27.71, -1.98, -6.7%): beats by $0.04, beats on revs; guides Q3 EPS below consensus, revs below consensus

• KLA Corporation (KLAC 497.50, +15.15, +3.1%): beats by $0.54, beats on revs; guides Q1 EPS above consensus, revs in-line

• Mondelez Int'l (MDLZ 74.33, +1.97, +2.7%): beats by $0.07, beats on revs; guides FY23 EPS above consensus

• Roku (ROKU 74.47, +6.28, +9.2%): beats by $0.50, beats on revs; guides Q3 revs above consensus

• T-Mobile US (TMUS 138.66, -1.22, -0.9%): beats by $0.17, reports revs in-line; raises FY23 guidance

• XPeng (XPEV 21.49, +1.27, +6.3%): upgraded to Buy from Hold at Jefferies

• Sleep Number (SNBR 28.80, -9.66, -25.1%): beats by $0.04, misses on revs; guides FY23 EPS in-line; appoints new CFO; expects Q3 EPS slightly below $0.22 (may not compare to $0.65 FactSet consensus); expecting demand to be up mid to high single digits compared to last year with net sales down low to mid-single digits due to the impact of year-over-year backlog changes

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: -0.4% (+1.4% for the week), Hong Kong's Hang Seng: +1.4% (+4.4% for the week), China's Shanghai Composite: +1.8% (+3.4% for the week), India's Sensex: -0.2% (-0.8% for the week), South Korea's Kospi: +0.2% (-0.1% for the week), Australia's ASX All Ordinaries: -0.7% (+1.2% for the week).

• In economic data:

• Japan's July CPI 2.5% yr/yr (last 2.3%). July Tokyo CPI 3.2% yr/yr (expected 2.8%; last 3.2%) and Tokyo Core CPI 3.0% yr/yr (expected 2.9%; last 3.2%)

• South Korea's June Retail Sales 1.0% m/m (expected 0.0%; last 0.4%). June Industrial Production -1.0% m/m (expected -0.3%; last 3.0%); -5.6% yr/yr (expected -5.5%; last -7.6%)

• Singapore's Q2 URA Property Index -0.2% qtr/qtr (expected -0.4%; last -0.4%)

• Australia's Q2 PPI 0.5% qtr/qtr (expected 0.9%; last 0.7%); 3.9% yr/yr, as expected (last 4.9%). June Retail Sales -0.8% m/m (expected 0.0%; last 0.8%)

• In news:

• The Bank of Japan made no changes to its interest rates, but voted to conduct yield curve control policies with greater flexibility, allowing the 10-yr JGB yield to rise up to 1.0% while maintaining the target at 0.50%. The news gave a brief boost to the yen before the currency returned to little changed against the dollar.

• China's Premier Li Qiang repeated that steps are being taken to open up China's economy.

• The People's Bank of China will support bond issuance of tech startups.

• Major European indices trade near their flat lines. STOXX Europe 600: -0.3% (+1.1% week-to-date), Germany's DAX: +0.1% (+1.5% week-to-date), U.K.'s FTSE 100: +0.1% (+0.5% week-to-date), France's CAC 40: -0.2% (+0.3% week-to-date), Italy's FTSE MIB: -0.2% (+2.4% week-to-date), Spain's IBEX 35: UNCH (+1.3% week-to-date).

• In economic data:

• Eurozone's July Business and Consumer Survey 94.5 (expected 95.0; last 95.3)

• Germany's Q2 GDP -0.2% qtr/qtr (expected 0.1%; last -0.3%); -0.6% yr/yr (last -0.2%)

• France's Q2 GDP 0.5% qtr/qtr (expected 0.1%; last 0.1%); 0.9% yr/yr (last 0.9%). June Consumer Spending 0.9% m/m (expected 0.1%; last 0.6%). June CPI 0.0% m/m (expected 0.2%; last 0.2%); 4.3% yr/yr, as expected (last 4.5%). June PPI -1.1% m/m (expected -2.8%; last -1.5%); 3.0% yr/yr (last 5.6%)

• Italy's June PPI -0.3% m/m (expected -6.3%; last -2.3%); -5.5% yr/yr (expected -12.9%; last -4.3%). May Industrial Sales 1.5% m/m (expected -0.1%; last -1.9%); -0.5% yr/yr (expected 0.3%; last -1.9%)

• Spain's Q2 GDP 0.4% qtr/qtr, as expected (last 0.5%); 1.8% yr/yr (expected 2.0%; last 4.2%). July CPI 0.1% m/m (expected -0.4%; last 0.6%); 2.3% yr/yr (expected 1.6%; last 1.9%)

• Swiss July KOF Leading Indicators 92.2 (expected 90.5; last 90.7)

• In news:

• European Central Bank policymakers have pushed back against speculation that a rate cut could take place as early as September with policymaker Simkus saying that a cut is unlikely even in the first half of 2024.

• Germany's Q2 GDP showed a slight improvement from Q1 but remained in contraction.

• BBVA reported better than expected results for the quarter while BASF lowered its capital expenditure forecast for the year.

U.S. equity futures:

• S&P 500 Futures: +26 @ 4,563

• DJIA Futures: +126 @ 35,409

• Nasdaq 100 Futures: +150 @ 15,615

Overseas:

• Europe: DAX +0.1%, FTSE +0.1%, CAC -0.2%

• Asia: Nikkei -0.4%, Hang Seng +1.4%, Shanghai Composite +1.8%

Commodities:

• Crude Oil -0.26 @ 79.83

• Nat Gas +0.004 @ 2.599

• Gold +9.90 @ 1955.60

• Silver +0.081 @ 24.448

• Copper +0.0304 @ 3.9095

Earnings/Guidance:

• Acadia Healthcare (ACHC) beats by $0.06, beats on revs; raises FY23 guidance

• AllianceBernstein (AB) misses by $0.05 (two estimates), beats on revs

• Allison Transmission (ALSN) beats by $0.29, beats on revs; raises FY23 revs in-line

• American Homes 4 Rent (AMH) reports Q2 (Jun) results, revs in-line; guides FY23 FFO in-line

• Ameris Bancorp (ABCB) misses by $0.22, beats on revs

• Aon (AON) misses by $0.07, reports revs in-line

• AppFolio (APPF) reports Q2 (Jun) results, beats on revs; guides FY23 revs above consensus

• AptarGroup (ATR) beats by $0.09, reports revs in-line; guides Q3 EPS above consensus

• ArcBest (ARCB) misses by $0.50, reports revs in-line

• Arthur J. Gallagher (AJD) beats by $0.04, beats on revs

• AstraZeneca (AZN) beats by $1.16, beats on revs; reaffirms FY23 EPS guidance, revs guidance

• Avantor (AVTR) misses by $0.01, misses on revs

• Axonics Modulation (AXNX) misses by $0.03, beats on revs; raises FY23 revs above consensus

• Axos Financial (AX) beats by $0.23, beats on revs

• Balchem (BCPC) beats by $0.22, misses on revs

• Barnes Group (B) beats by $0.04, reports revs in-line; reaffirms FY23 guidance

• Beazer Homes (BZH) beats by $0.54, beats on revs

• BJ Restaurants (BJRI) beats by $0.18, reports revs in-line

• Booz Allen Hamilton (BAH) beats by $0.22, beats on revs; guides FY24 EPS in-line, revs in-line

• Boston Beer Co (SAM) beats by $1.34, beats on revs; reaffirms FY23 EPS guidance

• Boyd Gaming (BYD) misses by $0.09, reports revs in-line

• Canadian Pacific (CP) misses by CC0.11, misses on revs; guides FY23 EPS below consensus

• Carter's (CRI) beats by $0.10, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; lowers FY23 guidance

• Casella Waste (CWST) misses by $0.01, misses on revs; guides FY23 revs above consensus

• Charter Comm (CHTR) misses by $0.01, misses on revs

• Chart Industries (GTLS) beats by $0.24, misses on revs; guides FY23 EPS in-line, reaffirms FY23 revs guidance

• Chemours (CC) beats by $0.03, misses on revs

• Chevron (CVX) misses by $0.04, beats on revs (EPS in line with pre-announcement on 7/24)

• Church & Dwight (CHD) beats by $0.12, beats on revs; guides Q3 revs in-line; guides FY23 revs above consensus

• Centene (CNC) beats by $0.05, beats on revs; raises FY23 EPS in-line; reaffirms FY24 EPS guidance

• Cincinnati Fincl (CINF) beats by $0.47, beats on revs

• CNH Industrial (CNHI) beats by $0.04, beats on revs; reaffirms FY23 revs guidance

• Colgate-Palmolive (CL) beats by $0.02, beats on revs

• Corp Office Props (OFC) beats by $0.01, beats on revs; guides Q3 FFO in-line; guides FY23 FFO in-line

• Coursera (COUR) misses by $0.11, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus

• Cousins Prop (CUZ) beats by $0.03, beats on revs; guides FY23 FFO in-line

• Customers Bancorp (CUBI) beats by $0.19

• Dana Inc (DAN) beats by $0.20, beats on revs; guides FY23 EPS in-line, revs in-line

• Deckers Outdoor (DECK) beats by $0.18, beats on revs; guides FY24 EPS in-line, revs below consensus

• Dexcom (DXCM) beats by $0.11, beats on revs; raises FY23 revs mostly above consensus

• Digital Realty Trust (DLR) beats by $0.03, reports revs in-line; guides FY23 FFO below consensus, reaffirms FY23 revs guidance

• Eastern Bankshares (EBC) reports EPS in-line, reports revs of $195.4 mln

• Eastman Chemical (EMN) beats by $0.06, misses on revs; lowers FY23 EPS below consensus

• Edison (EIX) beats by $0.06, misses on revs; reaffirms FY23 EPS guidance

• Eldorado Gold (EGO) misses by $0.01, misses on revs, gold production down 4% yr/yr

• Enphase Energy (ENPH) beats by $0.19, misses on revs; guides Q3 revs below consensus; announces new share repurchase program of up to $1.0 bln

• Ensign Group (ENSG) misses by $0.02, reports revs in-line; guides FY23 EPS in-line, revs in-line

• Eos Energy (EOSE) sees Q2 revs below consensus; provides update to customer backlog

• Equity Residential (EQR) reports FFO in-line, revs in-line; guides Q3 FFO in-line; guides FY23 FFO above consensus

• Essex Property (ESS) beats by $0.05; guides Q3 FFO in-line; guides FY23 FFO above consensus

• Exponent (EXPO) misses by $0.01, reports revs in-line; expects FY23 revs before reimbursements to grow in the high-single to low-double digits yr/yr

• Exxon Mobil (XOM) misses by $0.09, beats on revs

• Federated Hermes (FHI) misses by $0.01, beats on revs

• First Solar (FSLR) beats by $0.59, beats on revs; guides FY23 EPS in-line, revs in-line

• Ford Motor (F) beats by $0.18, beats on revs; raises FY23 adjusted EBIT and FCF guidance; raises FY23 EBIT guidance for Pro and Blue segments but lowers EBIT guidance for EV segment

• Fortune Brands Innovations (FBIN) beats by $0.04, reports revs in-line; raises FY23 EPS in-line, raises revenue outlook

• Gaming and Leisure Properties (GLPI) beats by $0.01, reports revs in-line; guides FY23 FFO in-line

• Genmab (GMAB) sees H1 revs above consensus; raises FY23 revs guidance

• Hartford Financial (HIG) beats by $0.05, reports revs in-line

• Healthpeak (PEAK) misses by $0.04; raises FY23 FFO in-line

• Houlihan Lokey (HLI) misses by $0.13, misses on revs; seeing improvements in M&A environment

• Hub Group (HUBG) beats by $0.08, misses on revs; guides FY23 EPS in-line, revs below consensus

• Huron Consulting (HURN) beats by $0.38, beats on revs; guides FY23 EPS above consensus, revs above consensus

• Intel (INTC) beats by $0.17, beats on revs, gross margin of 39.8% compared to guidance of 37.5%; guides Q3 EPS above consensus, revs in-line

• Juniper Networks (JNPR) beats by $0.04, beats on revs; guides Q3 EPS below consensus, revs below consensus

• KLA Corporation (KLAC) beats by $0.54, beats on revs; guides Q1 EPS above consensus, revs in-line

• Live Nation (LYV) beats by $0.37, beats on revs; expects record 2023 and continued growth in 2024

• LPL Financial (LPLA) beats by $0.08, beats on revs

• LTC Properties (LTC) beats by $0.01, beats on revs

• Matthews (MATW) beat by $0.08, beats on revs; reaffirms guidance for FY23

• McGrath RentCorp (MGRC) beats by $0.25, beats on revs; guides FY23 revs above two analyst estimate

• Meritage (MTH) beats by $1.57, beats on revs; provides FY23 guidance

• Mettler-Toledo (MTD) misses by $0.28, misses on revs; guides Q3 EPS below consensus; guides FY23 EPS below consensus

• Mohawk (MHK) beats by $0.11, reports revs in-line; guides Q3 EPS below consensus

• Mondelez Int'l (MDLZ) beats by $0.07, beats on revs; guides FY23 EPS above consensus

• Natl Instruments (NATI) misses by $0.07, misses on revs

• NatWest Group (NWG) reports H1 results; reaffirms guidance

• Newell Brands (NWL) beats by $0.11, beats on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY23 EPS guidance below consensus, revs below consensus

• nVent Electric (NVT) beats by $0.09, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs in-line

• Olin (OLN) beats by $0.11, misses on revs

• Ovintiv (OVV) reports Q2 results

• Pebblebrook Hotel Trust (PEB) beats by $0.06, reports revs in-line; guides Q3 FFO in-line

• PennyMac (PFSI) misses by $0.51, misses on revs

• Portland Gen Elec (POR) misses by $0.05, beats on revs; reaffirms FY23 EPS guidance

• Principal Fincl (PFG) misses by $0.12; hikes dividend 2% to $0.65/share

• Procter & Gamble (PG) beats by $0.05, beats on revs; guides FY24 EPS in-line, revs in-line

• Roku (ROKU) beats by $0.50, beats on revs; guides Q3 revs above consensus

• Saia (SAIA) beats by $0.14, misses on revs

• Sanofi (SNY) reports Q2 results; misses on revs; raises FY23 EPS outlook; acquires Qunol

• Silicon Motion (SIMO) misses by $0.07, beats on revs; optimistic the industry is positioned for recovery in 2H23

• Skechers USA (SKX) beats by $0.44, beats on revs; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS above consensus, revs in-line

• SkyWest (SKYW) beats handily on EPS, beats on revs

• Sleep Number (SNBR) beats by $0.04, misses on revs; guides FY23 EPS in-line; appoints new CFO

• South State (SSB) misses by $0.20, beats on revs

• SPS Commerce (SPSC) beats by $0.06, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

• SS&C Techs (SSNC) misses by $0.05, reports revs in-line; guides Q3 EPS below consensus, revs in-line; guides FY23 EPS below consensus, revs in-line; renews stock repurchase program

• Stevanato Group S.p.A. (STVN) beats by $0.01, beats on revs; reaffirms FY23 EPS guidance, revs guidance

• Sweetgreen (SG) reports Q2 (Jun) results, misses on revs; guides FY23 revs in-line

• TC Energy (TRP) beats by $0.24

• Texas Roadhouse (TXRH) beats by $0.02, reports revs in-line; Q2 comps of +9.1% at company restaurants

• T-Mobile US (TMUS) beats by $0.17, reports revs in-line; raises FY23 guidance

• Toyota Motor (TM) provides H1 sales and production update

• Ultra Clean Holdings (UCTT) misses by $0.09, misses on revs; guides Q3 EPS in-line, revs in-line

• U.S. Silica (SLCA) reports EPS in-line, misses on revs (single est); expects to invest at high-end of FY23 CapEx guidance

• U.S. Steel (X) beats by $0.13, misses on revs; customer demand robust for NGO steels

• Vale S.A. (VALE) reports Q2 results

• VeriSign (VRSN) beats by $0.04, reports revs in-line

• Weyerhaeuser (WY) beats by $0.11, misses on revs, reaffirms FY23 adjusted EBITDA guidance

• WisdomTree (WT) beats by $0.01, beats on revs

• W.P. Carey (WPC) beats by $0.07, beats on revs; guides FY23 FFO above consensus

News:

• Bank of Japan decided to conduct yield curve control with greater flexibility

• Senator Mitch McConnell's future in Republican leadership is in doubt following recent health related episodes, according to theNew York Times

• DOJ files additional charges against former President Trump for allegedly deleting security footage related to classified documents, according to the Washington Post

• Senate passes national defense authorization bill, but it will have to be reconciled with the House version, CNN

• 2U (TWOU) provided litigation update; hearing is currently scheduled for September 7, 2023

• American Airlines (AAL) reaches tentative agreement with pilots union

• Apollo Global Management (APO) has entered into exclusive discussions regarding a 1.5 bln financing for Air France-KLM's Flying Blue Loyalty program with commercial partners

• AstraZeneca (AZN) unit, Alexion, enters gene therapy agreement with Pfizer (PFE)

• Belite Bio (BLTE) announces that in its pivotal Phase 3 'PHOENIX' trial for subjects with GA, the first subject has been dosed at the Retina Associates of Southern California

• Boise Cascade (BCC) increases quarterly dividend to $0.20/share from $0.15/share

• Clorox (CLX) raises quarterly dividend to $1.20 per share from $1.18 per share

• Dell (DELL) and Anthony Charles Whitten, the Co-Chief Operating Officer, agreed that Mr. Whitten will resign from his position as Co-Chief Operating Officer effective as of August 18, 2023

• Digital Realty (DLR) and TPG announce joint venture of hyperscale data centers in Northern Virginia

• First Solar (FSLR) announces its intention to build a fifth manufacturing facility in the United States, investing up to $1.1 bln in further expanding America's capacity to produce its own photovoltaic (PV) solar modules

• Fluor (FLR) has been awarded a $487 million biotech expansion project in Denmark and is also mobilizing resources in the central U.S. for the first phase of a new life sciences production facility valued at $574 mln

• GameStop (GME) announces that CFO Diana Saadeh-Jajeh will resing from her role on August 11, 2023

• Gogo (GOGO) provides update on 5G launch; will delay launch due to design error

• Hudbay (HBM) announces potential for mine life extension in Snow Lake with the discovery of new mineralized zones near Lalor and Significant regional land consolidation

• Ionis Pharma (IONS) expands eplontersen agreement with AstraZeneca (AZN) to include exclusive rights in Latin America

• Iridium Communications (IRDM) approves additional $400 million share repurchase program through December 31, 2025

• KORU Medical Systems (KRMD) announces an agreement with a biopharmaceutical company to validate its FREEDOM Infusion System for use with the biopharma company's drug, a novel biologic

• LKQ (LKQ): The CMA considers that there are reasonable grounds for believing that the undertakings offered by LKQ Corporation, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002.

• Medifast (MED) unveils new product line, OPTAVIA ACTIVE; includes premium exercise supplements and protein powders expected to be rolled out next year

• Medtronic's (MDT) Palliare announces EU CE Mark approval under new medical devices regulation

• Merck (MRK) announces Phase 3 KEYNOTE-756 trial met primary endpoint of pathological complete response (pCR) rate in patients with high-risk, early-stage ER+/HER2- breast cancer

• NatWest Group plc (NWG) announces Alison Rose stepped down as Chief Executive Officer and as a Director of NatWest Group plc

• NovaGold Resources (NG) receives $25 million from Newmont Corporation (NEM)

• Nu Skin (NUS) appoints James Thomas as CFO after serving as interim CFO for the past four months

• SIGA Technologies (SIGA) announces that the U.S. Department of Health and Human Services exercised procurement options for the delivery of ~$113 mln worth of oral TPOXX treatment courses and ~$25 mln worth of IV TPOXX treatment courses

• Sleep Number (SNBR) announces the appointment of Francis Lee to Executive Vice President and Chief Financial Officer, effective August 14, 2023

• TC Energy (TRP) to unlock value by creating two premium energy infrastructure companies with intention to spin off Liquids Pipelines business

• Toyota Motor (TM) tenders part of the common shares of KDDI Corp (KDDIY)

• Vale S.A. (VALE) announces strategic partnership to accelerate the growth of its Energy Transition Metals business

• VNET Group (VNET) appoints Tim Chen as Chief Strategy Officer; names new CFO

• Voya Financial (VOYA) doubles quarterly cash dividend to $0.40/share from $0.20/share

• Walgreens Boots Alliance (WBA) announces the departure of James Kehoe, Executive Vice President and Global Chief Financial Officer

M&A:

• 3D Systems (DDD) announces target date of August 4for completion of previously announced merger agreement with Stratasys (SSYS)

• Assertio Therapeutics (ASRT) announces favorable vote on proposed acquisition of spectrum pharmaceuticals (SPPI)

• Nano Dimension (NNDM) intends to discontinue its Stratasys (SSYS) special tender offer and withdraw director nominees for SSYS board

• Reata Pharmaceuticals (RETA): Biogen (BIIB) confirms deal to acquire RETA for $172.50/share, representing enterprise value of $7.3 bln

• TopBuild (BLD) to acquire Specialty Products & Insulation in an all-cash transaction valued at $960 million

• Western Asset Mortgage (WMC) determines AG Mortgage Investment Trust (MITT) proposal is superior to Terra Property Trust merger agreement

Syndicate:

• Carvana (CVNA) raises $225 million through its at-the-market equity offering program, satisfying the public equity requirement of its exchange offer transaction support agreement announced last week

• Inozyme Pharma (INZY) prices offering of 12.5 mln shares of common stock at $4.80 per share

• Ovintiv (OVV) files for 31,777,596 shares of common stock by selling shareholder

IPOs:

• Expected to Price: No IPOs expected.

Gapping Up/Down

• Gapping up:

• SIGA +28.7%, COUR +15.6%, ROKU +9.8%, SAM +9.5%, FSLR +8.4%, BJRI +8%, SIMO+7.5%, INTC +7.1%, DDD +6.8%, MSGS +5%, BLD +5%, MTH +5%, PFS +4.4%, BZH +4.4%, SKX +4.3%, AZN +4.3%, TRP +4.1%, CUBI+4.1%, ALSN +4.1%, DXCM +4%, POR +3.9%, NWG +3.1%, FHI +3%, SHLS +2.9%, MDLZ+2.9%, KNSL +2.8%, HURN +2.8%, X +2.6%, CNC +2.6%, DLR +2.5%, , AMH +2.5%, TBBK+2.4%, CINF +2.4%, CVNA +2.3%, CWST+2%, IRDM +1.9%, AXNX +1.9%, CHPT+1.8%, APPF +1.8%, AB +1.8%, KLAC +1.8%, SPPI +1.7%, MED +1.7%, ATR +1.6%, IXHL+1.6%, ENSG +1.5%, AX +1.4%, AJG +1.3%, PEAK +1.3%, MTX +1%, EIX +0.9%, AON+0.9%, MATW +0.8%, AAL +0.7%

• Gapping down:

• SNBR -26.4%, ENPH -15.5%, SG -11%, GOGO -10.8%, JNPR -9%, SSNC -8.9%, UCTT-8.2%, INZY -7.1%, OLN -6.7%, MTD -6.4%, HLI -5.1%, EBC -5%, MHK -3.5%, TXRH-3.2%, ARCB -3.2%, PFSI -2.8%, AVTR-2.8%, SNY -2.7%, PFG -2.6%, CVX -2.4%, SLCA -2.3%, HUBG -2%, SKYW -2%, AROC-1.9%, F -1.4%, ABCB -1.4%, WY -1.4%, DECK -1.1%, VOYA -0.9%, BYD -0.8%

Analyst Research (see Upgrades/Downgradescalendarfor full list):

• Upgrades

• ASE Technology (ASX) upgraded to Buy from Neutral at Goldman; tgt raised to $9.20

• Block (SQ) upgraded to Outperform from Underperform at Exane BNP Paribas; tgt $95

• Business First Bancshares (BFST) upgraded to Outperform from Mkt Perform at Raymond James; tgt $20

• Celestica (CLS) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $22

• Coursera (COUR) upgraded to Overweight from Neutral at Cantor Fitzgerald; tgt raised to $17

• Crocs (CROX) upgraded to Buy from Hold at Stifel; tgt lowered to $130

• Digital Realty Trust (DLR) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $138

• First Solar (FSLR) upgraded to Buy from Neutral at BofA Securities; tgt raised to $283

• Meta Platforms (META) upgraded to Buy from Hold at China Renaissance; tgt $380

• New York Community (NYCB) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $16

• Owens Corning (OC) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $133

• Parsons (PSN) upgraded to Buy from Hold at Truist; tgt raised to $60

• TC Energy (TRP) upgraded to Outperform from Sector Perform at National Bank Financial

• Teck Resources (TECK) upgraded to Outperform from Sector Perform at National Bank Financial

• The Trade Desk (TTD) upgraded to Buy from Neutral at BTIG Research; tgt $103

• Third Coast Bancshares (TCBX) upgraded to Outperform from Mkt Perform at Raymond James; tgt $23

• Downgrades:

• 2seventy bio (TSVT) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $13

• ASML (ASML) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $785

• CenterPoint (CNP) downgraded to Neutral from Buy at Mizuho

• Enphase Energy (ENPH) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $171

• Enphase Energy (ENPH) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $165

• Farmers and Merchants (FMAO) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $23.50

• Homology Medicines (FIXX) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $1.50

• Mersana Therapeutics (MRSN) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $1

• Millicom International Cellular (TIGO) downgraded to Neutral from Buy at New Street; tgt lowered to $18

• Origin Bancorp (OBK) downgraded to Mkt Perform from Outperform at Raymond Jame

• Perficient (PRFT) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $70

• Snap (SNAP) downgraded to Sell from Hold at China Renaissance; tgt $7

• Southwest Air (LUV) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $38

• Southwest Air (LUV) downgraded to Outperform from Strong Buy at Raymond James; tgt lowered to $40

• TC Energy (TRP) downgraded to Market Perform from Outperform at BMO Capital Markets

• Textainer Group (TGH) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt raised to $45

• The Shyft Group (SHYF) downgraded to Neutral from Buy at DA Davidson; tgt lowered to $16

• Valley National (VLY) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $11

• Wabtec (WAB) downgraded to Market Perform from Outperform at TD Cowen; tgt raised to $125

• Wingstop (WING) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $185

• Others:

• Belite Bio (BLTE) initiated with an Overweight at Cantor Fitzgerald; tgt $43

• Beyond Air (XAIR) initiated with an Overweight at Piper Sandler; tgt $10

• Hims & Hers Health (HIMS) initiated with an Outperform at TD Cowen; tgt $11

• Luna Innovations (LUNA) initiated with a Buy at Stifel; tgt $12.50

• Palantir Technologies (PLTR) initiated with an Outperform at Wedbush; tgt $25

• TeraWulf (WULF) initiated with an Overweight at Cantor Fitzgerald; tgt $4

Econ Data:

• 08:30 ET: Personal Income for June (Briefing.comConsensus 0.5%; Prior 0.4%)

• 08:30 ET: Personal Spending for June (Briefing.comConsensus 0.3%; Prior 0.1%)

• 08:30 ET: PCE Prices for June (Briefing.comConsensus 0.2%; Prior 0.1%)

• 08:30 ET: PCE Prices - Core for June (Briefing.comConsensus 0.2%; Prior 0.3%)

• 08:30 ET: Employment Cost Index for Q2 (Briefing.comConsensus 1.1%; Prior 1.2%)

• 10:00 ET: Univ. of Michigan Consumer Sentiment - Final for July (Briefing.comConsensus 72.6; Prior 72.6)

 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 -0.4%, Hang Seng +1.4%, Shanghai Composite +1.8%

Equity indices in the Asia-Pacific region ended the week on a mixed note. The Bank of Japan made no changes to its interest rates, but voted to conduct yield curve control policies with greater flexibility, allowing the 10-yr JGB yield to rise up to 1.0% while maintaining the target at 0.50%. The news gave a brief boost to the yen before the currency returned to little changed against the dollar. China's Premier Li Qiang repeated that steps are being taken to open up China's economy. The People's Bank of China will support bond issuance of tech startups.

• In economic data:

• Japan's July CPI 2.5% yr/yr (last 2.3%). July Tokyo CPI 3.2% yr/yr (expected 2.8%; last 3.2%) and Tokyo Core CPI 3.0% yr/yr (expected 2.9%; last 3.2%)

• South Korea's June Retail Sales 1.0% m/m (expected 0.0%; last 0.4%). June Industrial Production -1.0% m/m (expected -0.3%; last 3.0%); -5.6% yr/yr (expected -5.5%; last -7.6%)

• Singapore's Q2 URA Property Index -0.2% qtr/qtr (expected -0.4%; last -0.4%)

• Australia's Q2 PPI 0.5% qtr/qtr (expected 0.9%; last 0.7%); 3.9% yr/yr, as expected (last 4.9%). June Retail Sales -0.8% m/m (expected 0.0%; last 0.8%)

---Equity Markets---

• Japan's Nikkei: -0.4% (+1.4% for the week)

• Hong Kong's Hang Seng: +1.4% (+4.4% for the week)

• China's Shanghai Composite: +1.8% (+3.4% for the week)

• India's Sensex: -0.2% (-0.8% for the week)

• South Korea's Kospi: +0.2% (-0.1% for the week)

• Australia's ASX All Ordinaries: -0.7% (+1.2%for the week)

---FX---

• USD/JPY: -0.1% to 139.23

• USD/CNH: -0.1% to 7.1623

• USD/INR: +0.1% to 82.18

Europe: DAX +0.1%, FTSE +0.1%, CAC -0.2%

Major European indices trade near their flat lines. European Central Bank policymakers have pushed back against speculation that a rate cut could take place as early as September with policymaker Simkus saying that a cut is unlikely even in the first half of 2024. Germany's Q2 GDP showed a slight improvement from Q1 but remained in contraction. BBVA reported better than expected results for the quarter while BASF lowered its capital expenditure forecast for the year.

• In economic data:

• Eurozone's July Business and Consumer Survey 94.5 (expected 95.0; last 95.3)

• Germany's Q2 GDP -0.2% qtr/qtr (expected 0.1%; last -0.3%); -0.6% yr/yr (last -0.2%)

• France's Q2 GDP 0.5% qtr/qtr (expected 0.1%; last 0.1%); 0.9% yr/yr (last 0.9%). June Consumer Spending 0.9% m/m (expected 0.1%; last 0.6%). June CPI 0.0% m/m (expected 0.2%; last 0.2%); 4.3% yr/yr, as expected (last 4.5%). June PPI -1.1% m/m (expected -2.8%; last -1.5%); 3.0% yr/yr (last 5.6%)

• Italy's June PPI -0.3% m/m (expected -6.3%; last -2.3%); -5.5% yr/yr (expected -12.9%; last -4.3%). May Industrial Sales 1.5% m/m (expected -0.1%; last -1.9%); -0.5% yr/yr (expected 0.3%; last -1.9%)

• Spain's Q2 GDP 0.4% qtr/qtr, as expected (last 0.5%); 1.8% yr/yr (expected 2.0%; last 4.2%). July CPI 0.1% m/m (expected -0.4%; last 0.6%); 2.3% yr/yr (expected 1.6%; last 1.9%)

• Swiss July KOF Leading Indicators 92.2 (expected 90.5; last 90.7)

---Equity Markets---

• STOXX Europe 600: -0.3% (+1.1% week-to-date)

• Germany's DAX: +0.1% (+1.5% week-to-date)

• U.K.'s FTSE 100: +0.1% (+0.5% week-to-date)

• France's CAC 40: -0.2% (+0.3% week-to-date)

• Italy's FTSE MIB: -0.2% (+2.4% week-to-date)

• Spain's IBEX 35: UNCH (+1.3% week-to-date)

---FX---

• EUR/USD: +0.3% to 1.1011

• GBP/USD: +0.6% to 1.2873

• USD/CHF: -0.2% to 0.8674