The S&P 500 futures are down 5 points and are trading 0.1% below fair value. The Nasdaq 100 futures are down 27 points and are trading 0.2% below fair value. The Dow Jones Industrial Average futures are down 19 points and are trading 0.1% below fair value.
Equity futures indicate a flattish open following three straight days of gains.
Treasuries are mixed this morning. 2-yr note yield is down one basis point to 4.90% and the 10-yr note yield is up three basis points to 4.15%.
The weekly MBA Mortgage Applications Index showed a 2.3% rise in total applications following last week's 4.2% decline.
The second estimate for Q2 GDP will be released at 8:30 a.m. ET. Other data today includes:
8:15 ET: August ADP Employment Change (Briefing.comconsensus 195,000; prior 324,000)
8:30 ET: July advance goods trade balance (prior -$87.8 bln), advance Retail Inventories (prior 0.3%), and advance Wholesale Inventories (prior -0.5%)
10:00 ET: July Pending Home Sales (Briefing.comconsensus -1.3%; prior 0.3%)
10:30 ET: Weekly crude oil inventories (prior -6.14 mln)
In corporate news:
Ambarella (AMBA 59.38, -16.40, -21.6%): beats by $0.06, reports revs in-line; guides Q3 revs well below consensus
Box (BOX 27.66, -3.14, -10.2%): beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY24 EPS in-line, revs below consensus; expands stock repurchase program by $100 mln
Hewlett Packard Enterprise (HPE 16.54, -0.30, -1.8%):beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line; guides FY23 EPS in-line, expects FY23 revs of +4-6% in CC
HP Inc. (HPQ 28.75, -2.62, -8.4%): reports EPS in-line, misses on revs; guides Q4 EPS in-line
Texas Instruments (TXN 167.14, -3.55, -2.1%): downgraded to Underperform from Mkt Perform at Bernstein
PVH (PVH 83.30, +2.48, +3.1%): beats by $0.22, reports revs in-line; guides Q3 EPS below consensus; guides FY24 EPS above consensus, reaffirms revenue guidance; increases FY24 planned repurchases to $400 mln
Patterson Companies (PDCO 31.40, -1.93, -5.8%): reports EPS in-line, revs in-line; reaffirms FY24 EPS guidance
Sunrun (RUN 15.80, +0.64, +4.2%): upgraded to Buy from Neutral at Citigroup
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: UNCH, China's Shanghai Composite: UNCH, India's Sensex: UNCH, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +1.2%.
In economic data:
Japan's August Household Confidence 36.2 (expected 37.5; last 37.1)
Australia's July Building Approvals -8.1% m/m (expected -0.8%; last -7.9%); -6.4% yr/yr (last -7.3%). July Private House Approvals 0.1% m/m (last -1.0%). Q2 Construction Work Done 0.4% qtr/qtr (expected 1.0%; last 3.8%) and July Monthly CPI Indicator 4.9% yr/yr (expected 5.2%; last 5.4%)
New Zealand's July Building Consents -5.2% m/m (expected 0.2%; last 3.4%)
In news:
Some of the biggest state-owned banks in China are considering another cut to the deposit rate in an attempt to boost growth.
Troubled developer Country Garden issued more stock.
Toyota resumed work at 12 of its 14 plants in Japan after a daylong stoppage caused by a system malfunction.
Reserve Bank of Australia Deputy Governor Bullock said that the central bank may have to hike again due to persistently high inflation.
Major European indices trade on a mostly lower note. STOXX Europe 600: -0.2%, Germany's DAX: -0.4%, U.K.'s FTSE 100: +0.2%, France's CAC 40: -0.4%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: -0.2%.
In economic data:
Eurozone's August Business and Consumer Survey 93.3 (expected 93.7; last 94.5)
Germany's July Import Price Index -0.6% m/m (expected 0.0%; last -1.6%); -13.2% yr/yr (expected -12.9%; last -11.4%)
U.K.'s July Mortgage Approvals 49,440 (expected 51,000; last 54,610), July Mortgage Lending GBP230 mln (expected -GBP460 mln; last GBP110 mln). July BoE Consumer Credit GBP1.191 bln (expected GBP1.300 bln; last GBP1.637 bln)
Italy's August Consumer Confidence 106.5 (expected 105.6; last 106.7) and Business Confidence 97.8 (expected 98.0; last 99.1). May Industrial Sales 0.4% m/m (expected -0.1%; last 1.6%); 1.3% yr/yr (expected 7.5%; last -0.5%)
Spain's August CPI 0.5% m/m (expected 0.4%; last 0.2%); 2.6% yr/yr, as expected (last 2.3%)
Swiss August KOF Leading Indicators 91.1 (expected 91.5; last 92.1) and August ZEW Expectations -38.6 (expected -31.3; last -32.6)
In news:
Spain's CPI accelerated to 2.6% yr/yr from 2.3% in the flash reading for August while some of Germany's regional CPI readings also showed an uptick ahead of the 8:00 ETrelease of Germany's full CPI report.
British Foreign Secretary Cleverly said during his trip to Beijing that the U.K. is looking for a pragmatic relationship with China.
The EU is on track to import a record amount of liquid natural gas from Russia this year.
U.S. equity futures:
S&P 500 Futures -3 @ 4,495
DJIA Futures: -36 @ 34,816
Nasdaq 100 Futures: -14 @ 15,363
Overseas:
Europe: DAX -0.4%, FTSE +0.2%, CAC -0.4%
Asia: Nikkei +0.3%, Hang Seng UNCH, Shanghai Composite UNCH
Commodities:
Crude Oil +0.52 @ 81.68
Nat Gas +0.045 @ 2.707
Gold +2.05 @ 1967.15
Silver -0.128 @ 24.66
Copper -0.014 @ 3.825
Earnings/Guidance:
Ambarella (AMBA) beats by $0.06, reports revs in-line; guides Q3 revs well below consensus
American Woodmark (AMWD) beats by $0.48, reports revs in-line, guides FY24 revs below consensus
ANI Pharma (ANIP) raises FY23 guidance in slide presentation
Box (BOX) beats by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY24 EPS in-line, revs below consensus; expands stock repurchase program by $100 mln
Conn's (CONN) beats by $0.14, reports revs in-line
Harmony Gold (HMY) beats by $0.04
Hewlett Packard Enterprise (HPE) beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line; guides FY23 EPS in-line, expects FY23 revs of +4-6% in CC
HP Inc. (HPQ) reports EPS in-line, misses on revs; guides Q4 EPS in-line
Johnson & Johnson (JNJ) updates FY23 guidance following completion of the Kenvue (KVUE) separation
MasterCraft (MCFT) beats by $0.24, beats on revs; guides Q1 EPS below consensus, revs below two analyst estimate; guides FY24 EPS below consensus, revs below consensus
nCino (NCNO) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY24 EPS in-line, revs in-line
Patterson Companies (PDCO) reports EPS in-line, revs in-line; reaffirms FY24 EPS guidance
Prudential Plc (PUK) reports H1 results
PVH (PVH) beats by $0.22, reports revs in-line; guides Q3 EPS below consensus; guides FY24 EPS above consensus, reaffirms revenue guidance; increases FY24 planned repurchases to $400 mln
ZTO Express (ZTO) beats by RMB0.27, misses on revs
News:
China rejects U.S. comment that it is "uninvestable", according to Reuters
Hurricane Idalia is expected to make landfall on Florida coast shortly as a category 4 storm
TSA expects to screen more than 14 million passengers during the Labor Day holiday weekend from Sept. 1, 2023 through Sept. 6, 2023
10x Genomics (TXG) ships over 100 Xenium Analyzer instruments in the eight months since the platform's launch
AAR Corp (AIR) signs two multi-year commercial agreements with Moog Inc.
Abeona Therapeutics (ABEO) announces "positive" Pre-BLA meeting with FDA for EB-101 and plans for BLA submission
Alkermes (ALKS) settles VIVITROL patent litigation with Teva (TEVA)
Alphabet (GOOG) expands the Duet AI in Google Cloud preview with new capabilities, including providing AI assistance
Alphabet (GOOG) expands Duet AI, an AI-powered collaborator, across Google Cloud
Amazon (AMZN) made the decision to end the Amazon Honeycode beta service, effective February 29, 2024
Amazon (AMZN): US watchdog wrote to Amazon regarding use of unapproved drugs, according to Financial Times
Amneal Pharmaceuticals (AMRX): HHS and FDA officials visited AMRX's manufacturing facility in Matoda, India
ARMOUR Residential REIT (ARR) approves 1-for-5 reverse stock split
Banco de Chile (BCH) and Citigroup (C) agreed to extend the term of the Cooperation Agreement, Global Connectivity Agreement and the Amended and Restated Trademark License Agreement
Biogen (BIIB) Alzheimer's drug Leqembi ramp up has been slow amid workforce and capacity issues, according to Stat News
Brookfield Real Assets Income Fund (RA) will reset its monthly distribution from $0.1990 per share to $0.1180 per share
Cencora (COR) announced the completion of its name and stock ticker change from AmerisourceBergen Corporation (ABC)
Choice Hotels (CHH) announced key executive appointments that position the company for continued future growth
Citigroup (C): SEC charging Citigroup Global Markets for violating recordkeeping requirements
Cleveland-Cliffs (CLF) and United Steelworkers reach tentative labor agreement for Northshore Mining Operations
Contango ORE (CTGO) announces commencement of mining operations at Manh Choh Mine and re-start of drilling at Lucky Shot Mine
Douglas Emmett (DEI) Chairman Dan A. Emmett announced his retirement as an executive officer of the Company effective August 24, 2023
Exact Sciences (EXAS) announced that the National Cancer Institute (NCI) has selected the company's testing laboratory in Phoenix, AZ to participate in the ComboMATCH clinical trials
FibroGen (FGEN) Announces Topline Results from LELANTOS-2, a Phase 3 Clinical Study of Pamrevlumab in Ambulatory Duchenne Muscular Dystrophy
Goldman (GS) purchased UK and US companies with Chinese state funds, according to Financial Times
Huntington Ingalls (HII) receives DDG 1000 modernization contract
InflaRx (IFRX) marketing authorization application for vilobelimab for treatment of critically ill COVID-19 patients under review by European Medicines Agency
Kamada (KMDA) announces shareholder approval and planned closing of $60 million private placement with FIMI Opportunity Funds
Mosaic (MOS) CEO James O'Rourke to resign, effective December 31; appoints Bruce Bodine, current Senior VP North America, as successor
NASDAQ (NDAQ) appoints Sarah Youngwood as CFO, effective December 1; succeeds Ann Dennison
Netflix (NFLX) announces all the new mobile games joining Netflix in August
Novocure (NVCR) announces The Lancet Oncology publishes primary data from Phase 3 LUNAR Clinical Trial in patients with metastatic non-small cell lung cancer after platinum-based therapies
Origin Materials (ORGN) announces appointment of Pam Haley as interim CFO
Outlook Therapeutics (OTLK): FDA issues Complete Response Letter (CRL) for ONS-5010 BLA based on CMC and need for further confirmatory clinical evidence
PotlatchDeltic (PCH) appoints Wayne Wasechek as CFO, effective immediately; previously served as interim CFO
REGENXBIO (RGNX) announced that initial interim data from a first-in-human single-patient, investigator-initiated trial of RGX-181 for the treatment of late-infantile neuronal ceroid lipofuscinosis type 2 (CLN2) disease, a form of Batten disease, were present
Science Applications (SAIC) awarded $575 mln U.S. Air Force contract
Sempra Energy (SRE) to participate in the evaluation of a proposed project to produce e-natural gas, a form of carbon recycling, in the U.S. Gulf Coast
Southern (SO) provides Georgia PSC and Vogtle updates
Sysco (SYY) appoints Greg Bertrand as COO, effective September 1
Toyota (TM) resumes Japan production after system issue, according to CNN
Transocean (RIG) announced that Oil and Natural Gas Corporation Ltd awarded the Dhirubhai Deepwater KG1 a binding Notification of Award for work offshore India
Vitesse (VTS) appoints James Henderson as the Company's Chief Financial Officer
Woodside Energy Group (WDS) reported that Trion field development plan has been approved by the Mexican regulator, Comision Nacional de Hidrocarburos
M&A:
Brookfield Infrastructure (BIP): Pacific National is interested in BIP Linx unit, according to Australian
Cognex (CGNX) to acquire Moritex from Trustar Capital for approximately $275 mln in cash; to be accretive to GAAP EPS in 2025
Gaming and Leisure Properties (GLPI) acquires land under the Hard Rock Casino in Rockford, IL for $100 million, enters into 99-year ground lease with tenant
Hut 8 Mining (HUT): Independent Proxy Advisory Firm Glass Lewis Recommends Hut 8 Shareholders Vote for Merger of Equals with US Bitcoin Corp
Inotiv (NOTV) divests its Israeli Businesses to Harlan Holdings
Modine Manufacturing (MOD) announces sale of coatings aftermarket application facilities in Florida and California; terms of deal not disclosed
Novo Nordisk A/S (NVO) acquires Embark Biotech, including its lead asset targeting obesity and other cardiometabolic diseases
Syndicate:
MicroVision (MVIS) enters into an at-the-market issuance sales agreement to sell up to $35 mln shares of common stock
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
PODD +3.5%, PUK +3.3%, SIRI +3%, MVIS+2.7%, NOTV +2.6%, PVH +1.5%, LYFT+1.1%, CGNX +1%, CLF +1%, CONN +0.9%, AVT +0.7%
Gapping down:
OTLK -75.1%, FGEN -22.3%, AMBA -20.8%, BOX -9.2%, HPQ -8.5%, NCNO -6.4%, ZTO-5%, ARR -4.1%, HUT -3%, SAIC -2.1%, AMWD -2%, HPE -2%, MOD -1.1%, GLPI -1%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Hercules Capital (HTGC) upgraded to Buy from Neutral at Compass Point; tgt $17.50
Sunrun (RUN) upgraded to Buy from Neutral at Citigroup; tgt lowered to $21
UDR (UDR) upgraded to Sector Outperform from Sector Perform at Scotiabank; tgt raised to $45
Downgrades:
Ambarella (AMBA) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $65
Bancolombia S.A. (CIB) downgraded to Market Perform from Outperform at Itau BBA
Centene (CNC) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $73
Greentree Hospitality (GHG) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $4
Heineken (HEINY) downgraded to Underperform from Sector Perform at RBC Capital Mkts
Highwoods Prop (HIW) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $22
Peloton (PTON) downgraded to Neutral from Outperform at Macquarie; tgt $7
Rockwell Automation (ROK) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $287
Sibanye-Stillwater (SBSW) downgraded to Neutral from Buy at BofA Securities
Texas Instruments (TXN) downgraded to Underperform from Mkt Perform at Bernstein; tgt $145
Others:
Airbus (EADSY) resumed with a Buy at Stifel
Align Tech (ALGN) initiated with a Buy at HSBC Securities; tgt $450
Atour Lifestyle Hldgs. Ltd. (ATAT) initiated with an Overweight at Morgan Stanley; tgt $36
AZZ (AZZ) initiated with a Buy at B. Riley Securities; tgt $64
BCB Bancorp (BCBP) initiated with a Buy at Janney
Cognex (CGNX) initiated with a Neutral at Citigroup; tgt $52
Fluence (FLNC) initiated with an Overweight at Barclays; tgt $31
Gulfport Energy (GPOR) initiated with an Outperform at Evercore ISI; tgt $135
Stem (STEM) initiated with an Equal Weight at Barclays; tgt $6
TotalEnergies SE (TTE) resumed with a Neutral at Citigroup
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Aug 26 (Briefing.comConsensus NA; Prior -4.2%)
08:15 ET: ADP Employment Change for Aug (Briefing.comConsensus 195K; Prior 324K)
08:30 ET: Adv. Intl. Trade in Goods for July (Briefing.comConsensus NA; Prior -$87.8B)
08:30 ET: Adv. Retail Inventories for July (Briefing.comConsensus NA; Prior 0.7%)
08:30 ET: Adv. Wholesale Inventories for July (Briefing.comConsensus NA; Prior -0.3%)
08:30 ET: GDP - Second Estimate for Q2 (Briefing.comConsensus 2.4%; Prior 2.4%)
08:30 ET: GDP Deflator - Second Estimate for Q2 (Briefing.comConsensus 2.2%; Prior 2.2%)
10:00 ET: Pending Home Sales for July (Briefing.comConsensus -1.3%; Prior 0.3%)
10:30 ET: EIA Crude Oil Inventories for Aug 26 (Briefing.comConsensus NA; Prior -6.14M)
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 +0.3%, Hang Seng UNCH, Shanghai Composite UNCH
Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Some of the biggest state-owned banks in China are considering another cut to the deposit rate in an attempt to boost growth. Troubled developer Country Garden issued more stock. Toyota resumed work at 12 of its 14 plants in Japan after a daylong stoppage caused by a system malfunction. Reserve Bank of Australia Deputy Governor Bullock said that the central bank may have to hike again due to persistently high inflation.
In economic data:
Japan's August Household Confidence 36.2 (expected 37.5; last 37.1)
Australia's Building Approvals -8.1% m/m (expected -0.8%; last -7.9%); -6.4% yr/yr (last -7.3%). July Private House Approvals 0.1% m/m (last -1.0%). Q2 Construction Work Done 0.4% qtr/qtr (expected 1.0%; last 3.8%) and July Monthly CPI Indicator 4.9% yr/yr (expected 5.2%; last 5.4%)
New Zealand's July Building Consents -5.2% m/m (expected 0.2%; last 3.4%)
---Equity Markets---
Japan's Nikkei: +0.3%
Hong Kong's Hang Seng: UNCH
China's Shanghai Composite: UNCH
India's Sensex: UNCH
South Korea's Kospi: +0.4%
Australia's ASX All Ordinaries: +1.2%
---FX---
USD/JPY: +0.3% to 146.34
USD/CNH: +0.3% to 7.2985
USD/INR: +0.2% to 82.68
Europe: DAX -0.4%, FTSE +0.2%, CAC -0.4%
Major European indices trade on a mostly lower note. Spain's CPI accelerated to 2.6% yr/yr from 2.3% in the flash reading for August while some of Germany's regional CPI readings also showed an uptick ahead of the 8:00 ETrelease of Germany's full CPI report. British Foreign Secretary Cleverly said during his trip to Beijing that the U.K. is looking for a pragmatic relationship with China. The EU is on track to import a record amount of liquid natural gas from Russia this year.
In economic data:
Eurozone's August Business and Consumer Survey 93.3 (expected 93.7; last 94.5)
Germany's July Import Price Index -0.6% m/m (expected 0.0%; last -1.6%); -13.2% yr/yr (expected -12.9%; last -11.4%)
U.K.'s July Mortgage Approvals 49,440 (expected 51,000; last 54,610), July Mortgage Lending GBP230 mln (expected -GBP460 mln; last GBP110 mln). July BoE Consumer Credit GBP1.191 bln (expected GBP1.300 bln; last GBP1.637 bln)
Italy's August Consumer Confidence 106.5 (expected 105.6; last 106.7) and Business Confidence 97.8 (expected 98.0; last 99.1). May Industrial Sales 0.4% m/m (expected -0.1%; last 1.6%); 1.3% yr/yr (expected 7.5%; last -0.5%)
Spain's August CPI 0.5% m/m (expected 0.4%; last 0.2%); 2.6% yr/yr, as expected (last 2.3%)
Swiss August KOF Leading Indicators 91.1 (expected 91.5; last 92.1) and August ZEW Expectations -38.6 (expected -31.3; last -32.6)
---Equity Markets---
STOXX Europe 600: -0.2%
Germany's DAX: -0.4%
U.K.'s FTSE 100: +0.2%
France's CAC 40: -0.4%
Italy's FTSE MIB: +0.1%
Spain's IBEX 35: -0.2%
---FX---
EUR/USD: +0.1% to 1.0889
GBP/USD: +0.1% to 1.2662
USD/CHF: +0.1% to 0.8793
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