Search

29/07/22 Briefing





The S&P 500 futures up 23 points and are trading 0.5% above fair value. The Nasdaq 100 futures are up 116 points and are trading 0.7% above fair value. The Dow Jones Industrial Average futures are up 53 points and are trading 1.3% above fair value.

The futures for the major indices are indicating a modestly higher open fueled by carryover momentum from yesterday's rally. This is aided by better-than-feared quarterly results from Apple (AAPL) and Amazon.com(AMZN), along with better-than-expected results from Chevron (CVX) and Exxon (XOM).

Also, Eurozone GDP was up 0.7% qtr/qtr in Q2, meanwhile the July CPI was at a record high of 8.9% yr/yr.

Market participants will receive the June Personal Income and Spending report at 8:30 a.m. ET. The focal point for this report is the PCE Price Index. Also out at 8:30 a.m. ETis the Q2 Employment Cost Index. At 9:45 a.m. ET, the July Chicago PMI will be released while the July University of Michigan Consumer Sentiment Final reading is out at 10:00 a.m. ET.

Energy futures are up this morning. WTI crude oil futures are up 2.4% to $98.75/bbl. Natural gas futures are up 1.0% to $8.21/mmbtu. Unleaded gasoline futures are up 1.2% to $3.13/gal.

The Treasury market is mixed with the 2-yr note yield down one basis point to 2.87% while the 10-yr note yield is up two basis points to 2.70%.

In corporate news:

  • Apple (AAPL 161.05, +3.70, +2.4%): reports top line beat on better than expected iPhone revenue; wearables and Macs miss estimates; CEO Tim Cook says supply constraints came in slightly below the range of $4-8 billion guidance range

  • Amazon.com(AMZN 137.55, +15.27, +12.5%): reports Q2 (Jun) results, beats on revs and operating income; guides Q3 revs in-line

  • Chevron (CVX 155.94, +5.55, +3.6%): beats by $0.79, beats on revs

  • Exxon Mobil (XOM 94.53, +1.89, +2.0%): beats by $0.25, beats on revs

  • Intel (INTC 35.30, -4.41, -11.11%): misses by $0.41, misses on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY22 guidance

  • Roku (ROKU 65.58, -19.59, -23.00%): misses by $0.14, misses on revs; guides Q3 revs below consensus, withdraws its full year revenue growth estimate

  • Procter & Gamble (PG 143.50, -4.56, -3.08%):  misses by $0.02, reports revs in-line; guides FY23 midpoint below consensus, revs mostly below consensus

  • DexCom (DXCM 76.84, -10.15, -11.67%): misses by $0.02, misses on revs; guides FY22 revs below consensus

  • Five9 (FIVN 110.00, +11.62, +11.81%): beats by $0.16, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus

  • Mohawk (MHK 134.80, -1.62, -1.19%): beats by $0.12, reports revs in-line; guides Q3 EPS below consensus

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: -0.1% (-0.4% for the week), Hong Kong's Hang Seng: -2.3% (-2.2% for the week), China's Shanghai Composite: -0.9% (-0.5% for the week), India's Sensex: +1.3% (+2.7% for the week), South Korea's Kospi: +0.7% (+2.4% for the week), Australia's ASX All Ordinaries: +0.8% (+2.3% for the week).

  • In economic data:

  • China's June FDI 17.4% (last 17.3%)

  • Japan's June Retail Sales 1.5% yr/yr (expected 2.8%; last 3.7%), June Industrial Production 8.9% m/m (expected 3.7%; last -7.5%), June Unemployment Rate 2.6% (expected 2.5%; last 2.6%). July Housing Starts -2.2% yr/yr (expected -1.2%; last -4.3%), July Household Confidence 30.2 (last 32.1), and June Construction Orders 15.5% yr/yr (last 19.5%). July Tokyo CPI 2.5% yr/yr (last 2.3%) and Tokyo Core CPI 2.3% (expected 2.2%; last 2.1%)

  • South Korea's June Industrial Production 1.9% m/m (expected -0.4%; last 0.2%); 1.4% yr/yr (expected 2.0%; last 7.4%). June Retail Sales -0.9% m/m (last -0.2%)

  • Australia's Q2 PPI 1.4% qtr/qtr, as expected (last 1.6%); 5.6% yr/yr (last 4.9%). June Private Sector Credit 0.9% m/m (last 0.8%) and June Housing Credit 0.6% m/m (last 0.6%)

  • In news:

  • Japan's Tokyo Core CPI increased at its fastest pace since 2014 in the July reading.

  • The approval rating of South Korea's President Yoon has dropped to 28% from 32%.

  • China's Ministry of Commerce noted that the foundation for a recovery in consumption is not solid and that more efforts are needed to increase consumption.

  • The Reserve Bank of Australia is expected to announce a 50-bps rate hike on Tuesday.

  • Major European indices trade on a firmly higher note. STOXX Europe 600: +0.9% (+2.6% week-to-date), Germany's DAX: +1.1% (+1.7% week-to-date), U.K.'s FTSE 100: +0.8% (+1.8% week-to-date), France's CAC 40: +1.5% (+3.5% week-to-date), Italy's FTSE MIB: +2.0% (+5.4% week-to-date), Spain's IBEX 35: +0.8% (+1.2% week-to-date.

  • In economic data:

  • Eurozone's Q2 flash GDP 0.7% qtr/qtr (expected 0.2%; last 0.6%); 4.0% yr/yr (expected 3.4%; last 5.4%). July CPI 0.1% m/m (expected -0.1%; last 0.8%); 8.9% yr/yr (expected 8.6%; last 8.6%)

  • Germany's Q2 flash GDP 0.0% qtr/qtr (expected 0.1%; last 0.8%); 1.5% yr/yr (expected 1.8%; last 3.9%). June Import Price Index 1.0% m/m (expected 0.8%; last 0.9%); 29.9% yr/yr, as expected (last 30.6%). July Unemployment Change 48,000 (expected 15,000; last 132,000) and Unemployment Rate 5.4%, as expected (last 5.3%)

  • U.K.'s June Mortgage Approvals 63,730 (expected 65,000; last 65,680), June Mortgage Lending GBP5.27 bln (expected GBP5.40 bln; last GBP8.04 bln), and June BoE Consumer Credit GBP1.781 bln (expected GBP1.000 bln; last GBP903 mln)

  • France's Q2 flash GDP 0.5% qtr/qtr (expected 0.2%; last -0.2%); 4.2% yr/yr (expected 3.7%; last 4.8%). June Consumer Spending 0.2% m/m (expected -0.6%; last 0.4%). July CPI 0.3% m/m, as expected (last 0.7%); 6.1% yr/yr (expected 6.0%; last 5.8%)

  • Italy's Q2 flash GDP 1.0% qtr/qtr (expected 0.3%; last 0.1%); 4.6% yr/yr (expected 3.7%; last 6.2%)

  • Spain's Q2 flash GDP 1.1% qtr/qtr (expected 0.4%; last 0.2%); 6.3% yr/yr (expected 5.5%; last 6.3%). July CPI -0.2% m/m (expected -0.3%; last 1.9%); 10.8% yr/yr (expected 10.6%; last 10.2%)

  • Swiss June Retail Sales 1.2% yr/yr, as expected (last -1.3%) and July KOF Leading Indicators 90.1 (expected 95.2; last 95.2)

  • In news:

  • Flash Q2 GDP readings from Italy, Spain, and France beat expectations while Germany missed estimates slightly, reporting no growth.

  • There is continued uncertainty about the viability of the EU's gas consumption reduction plan as opposition keeps mounting.

  • Renault raised its guidance for the fiscal year. BBVA and Standard Chartered reported better than expected results.


U.S. equity futures:

  • S&P 500 Futures: +24 @ 4,096

  • DJIA Futures: +55 @ 32,585

  • Nasdaq 100 Futures: +117 @ 12,835

Overseas:

  • Europe: DAX +1.1%, FTSE +0.8%, CAC +1.5%

  • Asia: Nikkei -0.1%, Hang Seng -2.3%, Shanghai Composite -0.9%

Commodities:

  • Crude Oil +2.24 @ 98.66

  • Nat Gas  +0.221 @ 8.355

  • Gold +8.00 @ 1758.30

  • Silver +0.094  @ 19.962

  • Copper +0.0345 @ 3.5090

U.S. Summary:

  • Earnings/Guidance:

  • 2U (TWOU) beats by $0.07, misses on revs; guides FY22 revs below consensus

  • AbbVie (ABBV) beats by $0.06, reports revs in-line; reaffirms FY22 EPS guidance

  • Amazon (AMZN) reports Q2 (Jun) results, beats on revs and operating income; guides Q3 revs in-line

  • Aon (AON) beats by $0.08, reports revs in-line

  • AppFolio (APPF) beats by $0.11, beats on revs; guides FY22 revs in-line

  • Apple (AAPL) reports top line beat on better than expected iPhone revenue; wearables and Macs miss estimates; CEO Tim Cook says supply constraints came in slightly below the range of $4-8 billion guidance range

  • ArcBest (ARCB) beats by $0.35, beats on revs

  • Arthur J. Gallagher (AJG) beats by $0.02, reports revs in-line

  • AstraZeneca (AZN) beats by $0.14, beats on revs; reaffirms FY22 EPS guidance, guides FY22 revs above consensus

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

  • Avaya Holdings (AVYA) outlines downside prelim Q3 results; will implement cost-cutting measures

  • Banco Santander Mexico (BSMX) reports Q2 results

  • Barnes Group (B) beats by $0.08, misses on revs; guides FY22 EPS below consensus

  • Beazer Homes (BZH) beats by $0.34, misses on revs

  • Bio-Rad Labs (BIO) beats by $0.67, beats on revs

  • Bloomin' Brands (BLMN) beats by $0.06, beats on revs, US comps -0.4%; guides Q3 EPS below consensus, revs above consensus; reaffirms FY22 EPS guidance, guides FY22 revs above consensus

  • Booz Allen Hamilton (BAH) beats by $0.07, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Carter's (CRI) misses by $0.33, misses on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY22 guidance

  • Casella Waste (CWST) beats by $0.09, beats on revs; raises FY22 revs outlook

  • Cboe Global Markets (CBOE) misses by $0.02, reports revs in-line

  • Celanese (CE) beats by $0.43, beats on revs; guides Q3 EPS in-line; reaffirms FY22 EPS guidance

  • Chart Industries (GTLS) beats by $0.04, beats on revs; guides FY22 EPS above consensus, revs in-line

  • Chemours (CC) beats by $0.47, beats on revs

  • Chevron (CVX) beats by $0.79, beats on revs

  • Church & Dwight (CHD) beats by $0.04, misses on revs; guides Q3 EPS below consensus; guides FY22 EPS below consensus, lowers revenue growth guidance

  • Clearfield (CLFD) beats by $0.25, beats on revs; guides FY22 revs above consensus

  • CNH Industrial (CNHI) beats by $0.06, beats on revs; guides FY22 revs above consensus

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

  • Colgate-Palmolive (CL) beats by $0.01, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • Continental Resources (CLR) beats by $0.28, reports revs in-line

  • Corp Office Props (OFC) beats by $0.01, beats on revs; issues guidance

  • Cousins Prop (CUZ) beats by $0.03, misses on revs; guides FY22 FFO mostly below consensus

  • Deckers Outdoor (DECK) beats by $0.42, beats on revs; guides FY23 EPS in-line, revs in-line; approves $1.2 bln repurchase program

  • Dexcom (DXCM) misses by $0.02, misses on revs; guides FY22 revs below consensus

  • Digital Realty Trust (DLR) beats by $0.07, misses on revs; reaffirms FY22 core FFO guidance, guides FY22 revs in-line

  • Dril-Quip (DRQ) misses by $0.04, beats on revs

  • Eastman Chemical (EMN) beats by $0.13, reports revs in-line; guides FY22 EPS in-line

  • Ecovyst (ECVT) beats by $0.04, beats on revs; raises FY22 revs above consensus

  • Edison (EIX) beats by $0.04, beats on revs; reaffirms FY22 EPS guidance

  • Edwards Lifesciences (EW) misses by $0.01, misses on revs; guides Q3 EPS in-line, revs below consensus; guides FY22 EPS in-line, revs below consensus

  • Essential Properties Realty Trust (EPRT) reports Q2 (Jun) results, revs in-line

  • Eversource Energy (ES) misses by $0.01, beats on revs; guides FY22 EPS in-line

  • Exponent (EXPO) beats by $0.04, beats on revs; reaffirms FY22 revs guidance

  • Exxon Mobil (XOM) beats by $0.25, beats on revs

  • Federated Hermes (FHI) misses by $0.06, reports revs in-line

  • First Solar (FSLR) beats by $0.65, beats on revs; lowers FY22 EPS guidance, raises revenue guidance

  • Five9 (FIVN) beats by $0.16, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus

  • Gaming and Leisure Properties (GLPI) beats by $0.03, reports revs in-line; guides FY22 FFO above consensus

  • Hartford Financial (HIG) beats by $0.62; authorizes new $3.0 bln share repurchase program

  • Hercules Capital (HTGC) reports EPS in-line, revs in-line; increase quarterly base distribution to $0.35/sh

  • Holley Inc. (HLLY) guides Q2 and FY22 revenue below consensus

  • Houlihan Lokey (HLI) beats by $0.16, beats on revs; declares dividend

  • Huron Consulting (HURN) beats by $0.03, beats on revs; guides FY22 EPS above consensus, revs above consensus

  • IMAX (IMAX) misses by $0.06, reports revs in-line

  • ImmunoGen (IMGN) misses by $0.03, misses on revs; guides FY22 revs in-line

  • Infinera (INFN) beats by $0.03, beats on revs; guides Q3 revs in-line

  • Intel (INTC) misses by $0.41, misses on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY22 guidance

  • KLA Corporation (KLAC) beats by $0.32, beats on revs; guides Q1 EPS midpoint above consensus, revs midpoint above consensus

  • L3Harris (LHX) beats by $0.05, misses on revs; guides FY22 EPS in-line, revs in-line

  • Lemaitre Vascular (LMAT) misses by $0.01, beats on revs; guides Q3 EPS below consensus, revs in-line; guides Q4 (Dec) EPS in-line, revs in-line

  • LyondellBasell (LYB) beats by $0.49, beats on revs

  • Magna (MGA) misses by $0.09, beats on revs; raises FY22 revs in-line

  • Mettler-Toledo (MTD) beats by $0.62, beats on revs; guides Q3 EPS above consensus; guides FY22 EPS above consensus

  • Minerals Tech (MTX) beats by $0.05, beats on revs

  • Mirion Technologies (MIR) beats by $0.01, misses on revs; reaffirms FY22 EPS guidance

  • Mohawk (MHK) beats by $0.12, reports revs in-line; guides Q3 EPS below consensus

  • Natl Instruments (NATI) beats by $0.03, beats on revs; guides Q3 EPS in-line, revs in-line

  • NatWest Group plc (NWG) reports H1 results; provides outlook

  • Newell Brands (NWL) beats by $0.10, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY22 EPS below consensus, revs below consensus

  • nVent Electric (NVT) beats by $0.03, beats on revs; guides Q3 EPS in-line; guides FY22 EPS in-line, raises reported sales growth guidance

  • Olin (OLN) beats by $0.23, misses on revs; lowers FY22 adj. EBITDA expectations; approves $2.0 bln share repurchase

  • Phillips 66 (PSX) beats by $1.01, beats on revs

  • Procter & Gamble (PG) misses by $0.02, reports revs in-line; guides FY23 midpoint below consensus, revs mostly below consensus

  • PROS Holdings (PROS) beats by $0.04, beats on revs; guides Q3 EPS in-line, revs above consensus; raises FY22 revenue guidance

  • Redwood Trust (RWT) authorizes a $125 mln stock repurchase program, replacing its $100 mln program approved in 2018

  • Roku (ROKU) misses by $0.14, misses on revs; guides Q3 revs below consensus, withdraws its full year revenue growth estimate

  • Seagen (SGEN) beats by $0.16, beats on revs; guides FY22 revs in-line

  • Shell Midstream Partners (SHLX) misses by $0.05, beats on revs

  • SkyWest (SKYW) beats by $0.63, beats on revs

  • Sony (SONY) misses by JPY6.89, misses on revs; guides FY23 revs above consensus

  • South State (SSB) beats by $0.08, misses on revs

  • Texas Roadhouse (TXRH) beats by $0.05, reports revs in-line, comps of +7.6%; expects positive comp growth in FY22

  • TFI International (TFII) beats by $0.81, beats on revs

  • Ultra Clean Holdings (UCTT) beats by $0.01, beats on revs; guides Q3 EPS below consensus, revs in-line

  • Ultragenyx Pharma (RARE) misses by $0.62, beats on revs

  • U.S. Silica (SLCA) beats by $0.23, beats on revs

  • U.S. Steel (X) reports EPS in-line, beats on revs; announces $500 mln repurchase authorization

  • VeriSign (VRSN) beats by $0.02, reports revs in-line

  • V.F. Corp (VFC) misses by $0.05, beats on revs; guides FY23 EPS below consensus

  • Weyerhaeuser (WY) beats by $0.08, beats on revs

  • W.P. Carey (WPC) beats by $0.08, reports revs in-line; guides FY22 FFO above consensus

  • Yamana Gold (AUY) beats by $0.02, beats on revs

  • Yum China (YUMC) beats by $0.19, misses on revs, same store sales declined by 16%; maintains 2022 outlook to open approximately 1,000 to 1,200 net new stores

  • Zendesk (ZEN) beats by $0.02, reports revs in-line; Note: co previously announced it is being acquired

  • General News:

  • Chinese President Xi warned President Biden not to "play with fire" regarding House Speaker Nancy Pelosi's potential trip to Taiwan, according to Financial Times

  • Russia attacks northern Ukraine with missiles and rockets, according to the Wall Street Journal

  • Inflation Reduction Act will require that millions of acres of land be allocated for oil and gas production over the next 10 years, according to the Wall Street Journal

  • Inflation Reduction Act includes extension of $7500 tax credit for EV purchases, according to Bloomberg

  • Severe thunderstorms caused flooding in several Las Vegas casinos, according to NBC News

  • The Biden administration will offer updated coronavirus vaccines to battle Omicron BA.5 in September, according to the New York Times

  • AbbVie (ABBV) receives EC approval for RINVOQ

  • Avaya Holdings (AVYA) announces that Alan Masarek has been appointed as its President and CEO and as a member of Avaya's Board of Directors, effective August 1, 2022

  • Barnes Group (B) announces the planned closure of production operations at its Engineered Components facility located in Bristol, Connecticut

  • Barrick (GOLD) reports the initial assay results for the 2022 drill program

  • Bristol-Myers (BMY) provides update on CheckMate -914 trial evaluating opdivo (nivolumab) plus yervoy (ipilimumab) as adjuvant treatment of localized renal cell carcinoma

  • Enanta Pharmaceuticals (ENTA) announces "positive" topline data from a Phase 1 study assessing the safety, tolerability, and pharmacokinetics of orally administered single ascending doses and multiple ascending doses of EDP-235 in healthy adult subjects

  • Enbridge & Pacific Energy (ENB) announce partnership in Woodfibre LNG

  • Eni S.p.A. (E) first offshore exploration well in Abu Dhabi results in another significant gas discovery

  • General Dynamics' (GD) subsidiary General Dynamics Electric Boat Corp awarded $698 mln U.S. Navy contract

  • Heritage Commerce Corp. (HTBK) announces that Walter T. Kaczmarek will be stepping down as President and Chief Executive Officer of the Company, effective September 15, 2022

  • Icosavax (ICVX) announces the results from an end-to-end drug product investigation of IVX-411, a VLP vaccine candidate displaying the SARS-CoV-2 receptor-binding domain

  • ImmunityBio (IBRX): FDA accepted the Co's BLA for N-803 in BCG-Unresponsive Non-Muscle-Invasive Bladder Cancer Carcinoma In Situ; PDUFA target action date is May 23, 2023

  • Kinross Gold (KGC) authorizes repurchase up to 5% of shares outstanding

  • Montauk Renewables (MNTK) announces the Company has filed a provisional patent application with the U.S. Patent and Trademark Office pertaining to a combustion based oxygen removal condensate neutralization technology

  • O-I Glass (OI) will build a new greenfield glass plant in Bowling Green, KY

  • Pacific City Financial (PCB) announces stock repurchase plan

  • Toyota (TM) increased production reduction due to heavy rain in Japan, according to Reuters

  • M&A:

  • Denison Mines (DNN) confirms superior proposal for UEX Corporation

  • Orange (ORAN): EU Commission opens in-depth investigation into the proposed acquisition of VOO and Brutele by Orange

  • Uranium Energy (UEC) announces receipt of a competing offer to acquire UEX Corporation

  • Syndicate

  • Ares Capital (ARCC) commences 8 mln common stock offering

  • PPG Industries (PPG) files for $2 bln mixed securities shelf offering

  • Reservoir Media (RSVR) files for 62,877,201 share common stock offering by selling shareholders

  • VolitionRx (VNRX) commences common stock offering

  • IPOs:

  • Expected to Price:

  • No IPOs expected.

Gapping Up/Down

  • Gapping up:

  • AMZN +11.9%, FIVN +11.8%, MITK +9.6%, CC +8.9%, BHC +8.6%, SKYW +7.5%, BSMX +7.5%, NWG +6.7%, MERC +5.9%, INFN +5.5%, DECK +5.1%, BZH +4.6%, HIG +4.2%, X +4.1%, NATI +3.7%, HURN +3%, CLFD+3%, LBTYA +3%, OI +2.9%, EPRT +2.9%, SLCA+2.8%, OLN +2.7%, FSLR +2.7%, MGA +2.6%, IMAX+2.5%, AUY +2.3%, AAPL +2.3%, EMN +2.2%, HLI+1.9%, QRVO +1.8%, MTD +1.6%, SYNA +1.5%, CWST+1.5%, CRUS +1.4%, GOLD +1.3%, UEC +1.3%, RGP+1.2%, AJG +1.1%, ZEN +1.1%, VAL +1%

  • Gapping down:

  • ROKU -24.6%, DXCM -15.5%, HLLY -14.7%, AVYA-12.9%, VNRX -11.4%, AVTR -10.3%, INTC -9.3%, EW-7.7%, TTD -6.9%, DRQ -5%, TWOU -4.4%, UCTT-3.9%, ARCC -3.6%, LTC -3%, DLR -2.9%, APPF-2.9%, SONY -2.9%, VRSN -2.8%, AZN -2.5%, ICVX-2.1%, KLAC -2%, MNTK -1.3%, TXRH -1.3%, GLPI-1.2%, MHK -1.2%, VFC -1.1%, RWT -1%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • ExlService (EXLS) upgraded to Buy from Hold at Needham; tgt $190

  • Mid-America Aptmt (MAA) upgraded to Mkt Outperform from Mkt Perform at JMP Securities; tgt $220

  • New Oriental Education & Technology (EDU) upgraded to Buy from Neutral at BofA Securities; tgt raised to $36.60

  • NOV Inc. (NOV) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $15

  • Downgrades:

  • argenx (ARGX) downgraded to Neutral from Outperform at Robert W. Baird; tgt raised to $460

  • Bausch Health (BHC) downgraded to Hold from Buy at Truist

  • Bausch Health (BHC) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $5

  • Comcast (CMCSA) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $45

  • Comcast (CMCSA) downgraded to Underperform from Neutral at Macquarie; tgt lowered to $33

  • Coursera (COUR) downgraded to Neutral from Buy at UBS

  • Edwards Lifesciences (EW) downgraded to Hold from Buy at Canaccord Genuity; tgt lowered to $106

  • Floor & Decor (FND) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $75

  • GDS Holdings (GDS) downgraded to Neutral from Buy at Nomura

  • Hayward Holdings (HAYW) downgraded to Neutral from Buy at Goldman; tgt lowered to $13

  • Holley Inc. (HLLY) downgraded to Hold from Buy at Jefferies; tgt lowered to $10

  • Holley Inc. (HLLY) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $9

  • Janus Henderson Group (JHG) downgraded to Sell from Neutral at Citigroup; tgt lowered to $22.10

  • Meta Platforms (META) downgraded to Sell from Hold at DZ Bank; tgt $140

  • Qualcomm (QCOM) downgraded to Hold from Buy at DZ Bank; tgt $150

  • Spirit Airlines (SAVE) downgraded to Underweight from Overweight at JP Morgan; tgt lowered to $29

  • Teleflex (TFX) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $248

  • Tilray (TLRY) downgraded to Sell from Hold at The Benchmark Company; tgt $3

  • Wingstop (WING) downgraded to Hold from Buy at Stifel; tgt $120

  • Others:

  • Evolent Health (EVH) initiated with an Outperform at RBC Capital Mkts; tgt $40

  • Stanley Black & Decker (SWK) downgraded to Peer Perform from Outperform at Wolfe Research

Upcoming Events:

  • Econ Data:

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

  • 08:30 ET: Personal Spending for June (Briefing.comConsensus 0.8%; Prior 0.2%)

  • 08:30 ET: PCE Prices for June (Briefing.comConsensus 1.0%; Prior 0.6%)

  • 08:30 ET: PCE Prices - Core for June (Briefing.comConsensus 0.6%; Prior 0.3%)

  • 08:30 ET: Employment Cost Index for Q2 (Briefing.comConsensus 1.1%; Prior 1.4%)

  • 09:45 ET: Chicago PMI for July (Briefing.comConsensus 56.2; Prior 56.0)

  • 10:00 ET: Univ. of Michigan Consumer Sentiment - Final for July (Briefing.comConsensus 51.1; Prior 51.1)

  • 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 -0.1%, Hang Seng -2.3%, Shanghai Composite -0.9%

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Tokyo Core CPI increased at its fastest pace since 2014 in the July reading. The approval rating of South Korea's President Yoon has dropped to 28% from 32%. China's Ministry of Commerce noted that the foundation for a recovery in consumption is not solid and that more efforts are needed to increase consumption. The Reserve Bank of Australia is expected to announce a 50-bps rate hike on Tuesday.

  • In economic data:

  • China's June FDI 17.4% (last 17.3%)

  • Japan's June Retail Sales 1.5% yr/yr (expected 2.8%; last 3.7%), June Industrial Production 8.9% m/m (expected 3.7%; last -7.5%), June Unemployment Rate 2.6% (expected 2.5%; last 2.6%). July Housing Starts -2.2% yr/yr (expected -1.2%; last -4.3%), July Household Confidence 30.2 (last 32.1), and June Construction Orders 15.5% yr/yr (last 19.5%). July Tokyo CPI 2.5% yr/yr (last 2.3%) and Tokyo Core CPI 2.3% (expected 2.2%; last 2.1%)

  • South Korea's June Industrial Production 1.9% m/m (expected -0.4%; last 0.2%); 1.4% yr/yr (expected 2.0%; last 7.4%). June Retail Sales -0.9% m/m (last -0.2%)

  • Australia's Q2 PPI 1.4% qtr/qtr, as expected (last 1.6%); 5.6% yr/yr (last 4.9%). June Private Sector Credit 0.9% m/m (last 0.8%) and June Housing Credit 0.6% m/m (last 0.6%)

---Equity Markets---

  • Japan's Nikkei: -0.1% (-0.4% for the week)

  • Hong Kong's Hang Seng: -2.3% (-2.2% for the week)

  • China's Shanghai Composite: -0.9% (-0.5% for the week)

  • India's Sensex: +1.3% (+2.7% for the week)

  • South Korea's Kospi: +0.7% (+2.4% for the week)

  • Australia's ASX All Ordinaries: +0.8% (+2.3% for the week)

---FX---

  • USD/JPY: -0.8% to 133.25

  • USD/CNH: -0.1% to 6.7381

  • USD/INR: -0.5% to 79.24

Europe: DAX +1.1%, FTSE +0.8%, CAC +1.5%

Major European indices trade on a firmly higher note. Flash Q2 GDP readings from Italy, Spain, and France beat expectations while Germany missed estimates slightly, reporting no growth. There is continued uncertainty about the viability of the EU's gas consumption reduction plan as opposition keeps mounting. Renault raised its guidance for the fiscal year. BBVA and Standard Chartered reported better than expected results.

  • In economic data:

  • Eurozone's Q2 flash GDP 0.7% qtr/qtr (expected 0.2%; last 0.6%); 4.0% yr/yr (expected 3.4%; last 5.4%). July CPI 0.1% m/m (expected -0.1%; last 0.8%); 8.9% yr/yr (expected 8.6%; last 8.6%)

  • Germany's Q2 flash GDP 0.0% qtr/qtr (expected 0.1%; last 0.8%); 1.5% yr/yr (expected 1.8%; last 3.9%). June Import Price Index 1.0% m/m (expected 0.8%; last 0.9%); 29.9% yr/yr, as expected (last 30.6%). July Unemployment Change 48,000 (expected 15,000; last 132,000) and Unemployment Rate 5.4%, as expected (last 5.3%)

  • U.K.'s June Mortgage Approvals 63,730 (expected 65,000; last 65,680), June Mortgage Lending GBP5.27 bln (expected GBP5.40 bln; last GBP8.04 bln), and June BoE Consumer Credit GBP1.781 bln (expected GBP1.000 bln; last GBP903 mln)

  • France's Q2 flash GDP 0.5% qtr/qtr (expected 0.2%; last -0.2%); 4.2% yr/yr (expected 3.7%; last 4.8%). June Consumer Spending 0.2% m/m (expected -0.6%; last 0.4%). July CPI 0.3% m/m, as expected (last 0.7%); 6.1% yr/yr (expected 6.0%; last 5.8%)

  • Italy's Q2 flash GDP 1.0% qtr/qtr (expected 0.3%; last 0.1%); 4.6% yr/yr (expected 3.7%; last 6.2%)

  • Spain's Q2 flash GDP 1.1% qtr/qtr (expected 0.4%; last 0.2%); 6.3% yr/yr (expected 5.5%; last 6.3%). July CPI -0.2% m/m (expected -0.3%; last 1.9%); 10.8% yr/yr (expected 10.6%; last 10.2%)

  • Swiss June Retail Sales 1.2% yr/yr, as expected (last -1.3%) and July KOF Leading Indicators 90.1 (expected 95.2; last 95.2)

---Equity Markets---

  • STOXX Europe 600: +0.9% (+2.6% week-to-date)

  • Germany's DAX: +1.1% (+1.7% week-to-date)

  • U.K.'s FTSE 100: +0.8% (+1.8% week-to-date)

  • France's CAC 40: +1.5% (+3.5% week-to-date)

  • Italy's FTSE MIB: +2.0% (+5.4% week-to-date)

  • Spain's IBEX 35: +0.8% (+1.2% week-to-date)

---FX---

  • EUR/USD: +0.3% to 1.0225

  • GBP/USD: UNCH at 1.2172

  • USD/CHF: -0.2% to 0.9534


0 views0 comments

Recent Posts

See All

The S&P 500 futures are up 3 points and are trading % above fair value. The Nasdaq 100 futures are up 9 points and are trading roughly in-line with fair value. The Dow Jones Industrial Average futures