The S&P 500 futures are up 10 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 51 points and are trading 0.4% above fair value. The Dow Jones Industrial Average futures are up 100 points and are trading 0.3% above fair value.
Equity futures have a positive disposition, building on Friday's gains with positive price action in the mega cap stocks and a news driven pop in 3M (MMM) helping in the effort.
Brokerage stocks outperformed in China after officials confirmed reports that the stamp duty on stock trades will be cut in half. On a related note, Commerce Secretary Gina Raimondo will visit China this week to discuss advanced technology and semiconductor investment restrictions.
There is no U.S. economic data of note today; however, the coming week will feature important releases that include the August Consumer Confidence Index, July JOLTS - Job Openings Report, the second estimate for Q2 GDP, July Personal Income and Spending, the August ISM Manufacturing Index, and the August Employment Situation Report.
The 2-yr note yield is up three basis points to 5.08% and the 10-yr note yield is down one basis points to 4.23%.
In corporate news:
Horizon Therapeutics plc (HZNP 112.25, +5.58, +5.2%): FTC files motion to withdraw matter from adjudication regarding Amgen (AMGN) deal for HZNP
XPeng (XPEV 18.54, +1.05, +5.9%): to expand in A-class Smart EV Segment through strategic partnership with DiDi (DIDIY)
3M (MMM 104.20, +5.25, +5.3%): to pay $5.5 bln to resolve military earplug lawsuits, according to Bloomberg
Hawaiian Electric (HE 13.03, +3.37, +34.2%): Provides Update on Lahaina Fires, Response
RPT Realty (RPT 11.01, +1.44, +15.1%): Kimco Realty (KIM) to acquire RPT Realty in all-stock transaction; will host a joint conference call on August 28, 2023 at 8:30 a.m. ET
NovoCure (NVCR 17.51, -12.26, -41.2%): Provides update on phase 3 ENGOT-ov50 / GOG-3029 / INNOVATE-3 trial evaluating tumor treating fields therapy in platinum-resistant ovarian cancer; did not meet its primary endpoint of overall survival (OS) at the final analysis
Hersha Hospitality Trust (HT 9.72, +3.44, +54.8%): be acquired by KSL Capital Partners; common shareholders to receive $10.00/share in cash, a 60% premium to prior closing price
Abcam (ABMC 23.45, +0.09, +0.4%): to be acquired by Danaher (DHR) for $24.00 per share
Boston Scientific (BSX 53.66, +2.90, +5.7%): reports ADVENT study of the FARAPULSE Pulsed Field Ablation System meets primary efficacy and safety endpointsBSX
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a higher note. Japan's Nikkei: +1.7%, Hong Kong's Hang Seng: +1.0%, China's Shanghai Composite: +1.1%, India's Sensex: +0.2%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: +0.5%.
In economic data:
China's July Industrial Profit -15.5% YTD (last -16.8%)
Japan's June Leading Index -0.2% m/m, as expected (last 1.1%) and Coincident Indicator 0.8% m/m (expected 0.9%; last 0.1%)
Australia's July Retail Sales 0.5% m/m (expected 0.3%; last -0.8%)
In news:
Brokerage stocks outperformed in China after officials confirmed reports that stamp duty on stock trades will be cut in half. In addition, officials are reducing margin financing requirements, restricting refinancing options for listed companies, and restricting share sales by large shareholders.
Shares of developer Evergrande were relisted in Hong Kong.
There is growing speculation that Xi Jinping is facing a growing power struggle within the Communist Party and within the People's Liberation Army.
Australia's retail sales rebounded in July from a contraction that was reported for June.
Major European indices trade in the green while the U.K.'s FTSE is closed for a Bank Holiday. STOXX Europe 600: +0.5%, Germany's DAX: +0.5%, U.K.'s FTSE 100: CLOSED, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +1.0%.
In economic data:
Eurozone's July M3 Money Supply -0.4% yr/yr (expected 0.0%; last 0.6%), July Private Sector Loans 1.3% yr/yr (expected 1.4%; last 1.7%), and July loans to nonfinancials 2.2% yr/yr (expected 2.5%; last 3.0%)
In news:
European Central Bank President Lagarde said at the Jackson Hole Symposium that interest rates will be set as high as necessary to slow inflation and that price expectations must be anchored. Meanwhile, policymaker Kazaks said that there is no rush to declare an end to the ECB's rate hike campaign.
U.S. equity futures:
S&P 500 Futures +10 @ 4,416
DJIA Futures: +95 @ 34,442
Nasdaq 100 Futures: +51 @ 14,993
Overseas:
Europe: DAX +0.5%, FTSE CLOSED, CAC +0.7%
Asia: Nikkei +1.7%, Hang Seng +1.0%, Shanghai Composite +1.1%
Commodities:
Crude Oil +0.01 @ 79.84
Nat Gas +0.106 @ 2.763
Gold +2.25 @ 1942.15
Silver +0.016 @ 24.25
Copper +0.0135@ 3.7975
Earnings/Guidance:
ArcBest (ARCB) discloses Q3 update; currently targeting total average daily shipments of approximately 20,000 shipments per day compared to the 19,500 shipments-per-day target in July 2023
Baozun (BZUN) beats by RMB0.56, misses on revs
News:
Cleveland Fed President Loretta Mester (non-voter) in interview says another Fed rate hike will probably be needed, according to Reuters
Commerce Secretary Gina Raimondo will visit China this week to discuss advanced technology and semiconductor investment restrictions, according to the New York Times
China lowers stock trading taxes, according to Bloomberg
Bank of England Deputy Governor Ben Broadbent says rates might need to remain high for longer period of time, according to Bloomberg
President Biden will request funding for next round of coronavirus vaccines. He said it will be likely recommended that everyone get the vaccine, according to The Hill
Idalia could develop into hurricane and move towards gulf coast of Florida
Hollywood studios failed to close deal to end strike, according to Bloomberg
Unifor Detroit Three members deliver overwhelming strike mandate
3M (MMM) to pay $5.5 bln to resolve military earplug lawsuits, according to Bloomberg
Alnylam Pharma (ALNY) to appeal Delaware Court order construing certain claim terms in two patents
ANI Pharma (ANIP) announces the FDA approval and launch of estradiol gel, 0.1%
Arconic (ARNC) announces that Chris Ayers will become CEO and Chair of the Board, effective September 11, 2023
Bayer AG (BAYRY) unit BlueRock, reports Phase I study with bemdaneprocel in patients with Parkinson's disease met primary endpoint
Boston Scientific (BSX) reports ADVENT study of the FARAPULSE Pulsed Field Ablation System meets primary efficacy and safety endpoints
BridgeBio (BBIO) presents detailed positive results from Phase 3 ATTRibute-CM study of acoramidis for patients with transthyretin amyloid cardiomyopathy (ATTR-CM) at European Society of Cardiology Congress 2023
BrightView (BV) appoints Dale Asplund as CEO and announces $500 million strategic investment from One Rock Capital Partners
B. Riley Financial (RILY) leads financing for management buyout of Franchise Group (FRG)
Centrus Energy (LEU) and Oklo sign MOU for fuel, components, and power procurement
Eaton (ETN) has announced significant investments in its North American manufacturing and operations to support rapidly growing demand for its electrical solutions
Genelux (GNLX) appointed Lourie Zak as the Company's Chief Financial Officer
Hawaiian Electric (HE) Provides Update on Lahaina Fires, Response
Horizon Therapeutics plc (HZNP): FTC files motion to withdraw matter from adjudication regarding Amgen (AMGN) deal for HZNP
ImmunoGen (IMGN) announces collaboration with Takeda (TAK) to develop and commercialize ELAHERE in Japan
Innoviva (INVA) names Stephen Basso as CFO
Intercontinental Exchange (ICE) and and Black Knight (BKI) announce entry into agreement containing consent orders with FTC's Bureau of Competition
Knight-Swift (KNX) CEO and CFO to voluntarily reduce base salaries by approximately 20% thru year end 2023
Kroger (KR): Bags of frozen vegetables recalled at Kroger, according to the New York Post
Madison Square Garden (MSG): NYC will decide on Madison Square Garden's special permit on Monday, according to the New York Post
Marathon (MPC) Garyville plant shutdown after fire, according to Bloomberg
NaaS Technology (NAAS): new partnership forged between NewLink and NaaS Technology with CR Capital MGMT
Nano Dimension (NNDM) resumes its share repurchase plan immediately
New Found Gold Corp. (NFGC) Intercepts 198 G/t Au Over 2M, Defines 410M X 395M Mineralized Footprint at K2 Zone
NovoCure (NVCR) Provides update on phase 3 ENGOT-ov50 / GOG-3029 / INNOVATE-3 trial evaluating tumor treating fields therapy in platinum-resistant ovarian cancer
Rio Tinto (RIO) and First Quantum complete La Granja joint venture transaction
Scotts Miracle-Gro (SMG) promotes Nate Baxter to COO; Mike Lukemire to remain President until retirement in FY24
Tecnoglass (TGLS) to more than double addressable market with strategic entry into vinyl windows
The Cigna Group (CI) announces 2024 Marketplace plans; Cigna Healthcare will offer affordable, comprehensive health care plans in the ACA Marketplace across 14 states in 2024
United Rentals (URI) confirms that COO Dale Asplund will be leaving the company on September 29to take the role of president and chief executive officer at another public company outside of the equipment rental industry
Verastem (VSTM) enters discovery and development collaboration with GenFleet Therapeutics to advance new programs targeting RAS pathway-driven cancers
Xinyuan Real Estate (XIN) announces progress achievement in debt restructuring
XPeng (VPEV) to expand in A-class Smart EV Segment through strategic partnership with DiDi (DIDIY)
M&A:
Abcam (ABCM) to be acquired by Danaher (DHR) for $24.00 per share
Centene (CNC) to divest Circle Health Group for $1.2 bln
China Petroleum (SNP) not interested in acquisition of Shell (SHEL) Singapore refinery, according to Reuters
Equinor (EQNR) acquires stake in Bayou Bend CCS Project
Expro Group (XPRO) to enhance subsea well access offering with acquisition of PRT Offshore
Hersha Hospitality Trust (HT) be acquired by KSL Capital Partners; common shareholders to receive $10.00/share in cash, a 60% premium to prior closing price
Jabil (JBL) enters into preliminary agreement relating to divest Mobility business
RPT Realty (RPT): Kimco Realty (KIM) to acquire RPT Realty in all-stock transaction
Skyline Champion (SKY) announced a definitive agreement to acquire Regional Enterprises
Syndicate:
Advance Auto files (AAP) mixed securities shelf offering
Atlas Lithium Corp. (ATLX) files for $75 mln mixed securities shelf offering
Immatics N.V. (IMTX) files for 2,419,818 shares of common stock by selling shareholder
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
HE +37.2%, BBIO +10.6%, ESPR +8%, MMM+5.8%, HZNP +5%, XPEV +4.4%, XIN +3.5%, JBL +3.2%, BZUN +2.7%, NVAX +1.9%, ACGL+1.7%, ALL +1.2%, BSX +1%, BNTX +0.9%, RIO +0.8%, VTLE +0.8%, FSR +0.7%
Gapping down:
ARCB -2%, ALNY -1.9%, NNDM -1.1%, ATLX-0.6%, AAP -0.5%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Akebia Therapeutics (AKBA) upgraded to Buy from Neutral at H.C. Wainwright; tgt $3.75
AppFolio (APPF) upgraded to Outperform from Mkt Perform at William Blair
Church & Dwight (CHD) upgraded to Buy from Hold at Truist; tgt raised to $105
Forward Air (FWRD) upgraded to Peer Perform from Underperform at Wolfe Research
MACOM Tech (MTSI) upgraded to Buy from Hold at The Benchmark Company; tgt $92
Mister Car Wash (MCW) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $12
UGI Corp (UGI) upgraded to Overweight from Equal Weight at Wells Fargo; tgt lowered to $27
Zimmer Biomet (ZBH) upgraded to Buy from Neutral at BTIG Research; tgt $139
Downgrades:
Atmos Energy (ATO) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $128
Century Therapeutics (IPSC) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $5
CrowdStrike (CRWD) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $167
Denbury (DEN) downgraded to Hold from Buy at Jefferies; tgt $91
Energizer (ENR) downgraded to Hold from Buy at Truist; tgt lowered to $35
Essex Property (ESS) downgraded to Hold from Buy at Truist; tgt raised to $266
L3Harris (LHX) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $210
Lyell Immunopharma (LYEL) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $5
Upwork (UPWK) downgraded to Neutral from Buy at BTIG Research
Others:
Cricut (CRCT) initiated with a Neutral at Citigroup; tgt $10.50
Duolingo (DUOL) resumed with a Mkt Perform at Raymond James
Emerson (EMR) resumed with an Equal Weight at Barclays; tgt $105
Liberty Live (LLYVA) initiated with a Buy at Seaport Research Partners; tgt $56
Nerdy (NRDY) resumed with an Outperform at Raymond James; tgt $5.50
NextGen Healthcare (NXGN) initiated with an Overweight at Cantor Fitzgerald; tgt $21
Pagaya (PGY) initiated with a Mkt Outperform at JMP Securities; tgt $2.75
Reneo Pharmaceuticals (RPHM) initiated with a Buy at H.C. Wainwright; tgt $30
Surf Air Mobility (SRFM) initiated with a Buy at Canaccord Genuity; tgt $3
Tetra Tech (TTEK) initiated with an Outperform at RBC Capital Mkts; tgt $181
Vesta Real Estate (VTMX) initiated with a Neutral at Goldman; tgt $36
Workiva (WK) initiated with an Outperform at Wolfe Research; tgt $120
Econ Data:
No economic data of note.
Earnings:
Monday (Aug 28)
Morning: BZUN
Afternoon: HEI
Tuesday (Aug 29)
Morning: AMWD BMO BNS BBY BIG CTLT DCI SJM MBUU NIO PDD
Afternoon: AMBA BOX HPE HPQ NCNO PVH ZTO
Wednesday (Aug 30)
Morning: BF.B CONN MCFT PDCO
Afternoon: CHWY COO CRWD FIVE GEF OKTA CRM VEEV VSCO
Unspecified: PSTG
Thursday (Aug 31)
Morning: FLWS ASO CAL CPB CM CIEN DG GCO GMS MOMO HRL BEKE OLLI SIG TITN UBS
Afternoon: AVGO DELL ESTC HCP LULU MDB NTNX OXM PD S VMW
Asia & Europe detail:
Asia: Nikkei +1.7%, Hang Seng +1.0%, Shanghai Composite +1.1%
Equity indices in the Asia-Pacific region began the week on a higher note. Brokerage stocks outperformed in China after officials confirmed reports that stamp duty on stock trades will be cut in half. In addition, officials are reducing margin financing requirements, restricting refinancing options for listed companies, and restricting share sales by large shareholders. Shares of developer Evergrande were relisted in Hong Kong. There is growing speculation that Xi Jinping is facing a growing power struggle within the Communist Party and within the People's Liberation Army. Australia's retail sales rebounded in July from a contraction that was reported for June.
In economic data:
China's July Industrial Profit -15.5% YTD (last -16.8%)
Japan's June Leading Index -0.2% m/m, as expected (last 1.1%) and Coincident Indicator 0.8% m/m (expected 0.9%; last 0.1%)
Australia's July Retail Sales 0.5% m/m (expected 0.3%; last -0.8%)
---Equity Markets---
Japan's Nikkei: +1.7%
Hong Kong's Hang Seng: +1.0%
China's Shanghai Composite: +1.1%
India's Sensex: +0.2%
South Korea's Kospi: +1.0%
Australia's ASX All Ordinaries: +0.5%
---FX---
USD/JPY: +0.1% to 146.54
USD/CNH: +0.2% to 7.3042
USD/INR: UNCH at 82.59
Europe: DAX +0.5%, FTSE CLOSED, CAC +0.7%
Major European indices trade in the green while the U.K.'s FTSE is closed for a Bank Holiday. European Central Bank President Lagarde said at the Jackson Hole Symposium that interest rates will be set as high as necessary to slow inflation and that price expectations must be anchored. Meanwhile, policymaker Kazaks said that there is no rush to declare an end to the ECB's rate hike campaign.
In economic data:
Eurozone's July M3 Money Supply -0.4% yr/yr (expected 0.0%; last 0.6%), July Private Sector Loans 1.3% yr/yr (expected 1.4%; last 1.7%), and July loans to nonfinancials 2.2% yr/yr (expected 2.5%; last 3.0%)
---Equity Markets---
STOXX Europe 600: +0.5%
Germany's DAX: +0.5%
U.K.'s FTSE 100: CLOSED
France's CAC 40: +0.7%
Italy's FTSE MIB: +0.8%
Spain's IBEX 35: +1.0%
---FX---
EUR/USD: +0.2% to 1.0810
GBP/USD: +0.1% to 1.2585
USD/CHF: UNCH at 0.8836
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