- Global Equity Overview: S&P futures are slightly down from our last report but remain buoyed above Wednesday's close, amidst varied sessions in European and Asian markets.
- Market Sentiments and Considerations: There's no significant shift in the overall market narrative. Pessimism looms with factors like upward pressure on interest rates, skepticism regarding the Fed's near-term peak policy signals, concerns about waning disinflation momentum, and more. Notable bullish perspectives include expectations of a soft landing and an earnings rebound in the latter half of the year and 2024. (I believe that these are all signs of a bottom in this correction, but it is just an observation)
- Today's Economic Calendar: Attention is drawn to U.S. economic releases including Initial claims, Philly Fed manufacturing, and Leading Economic Indicators. China continues to be a focus, with critical comments from Premier Li and reports on the housing market slump.
- Earnings and Corporate News: Walmart and Cisco are among the companies reporting this morning, with key insights from other market players. Earnings from Tapestry, Applied Materials, and others are also on the horizon.
- Macro Economic Indicators: Scheduled releases include the Philadelphia Fed Index, Weekly Initial Jobless Claims, and Leading Indicators.
- Indices: FTSE 100 (0.20%), DAX (0.12%), and CAC40 (0.13%) are mostly lower.
- Central Bank Activities: Norges Bank increased rates by 25 bps and signaled another tightening move. Latvian central bank chief Kazaks expressed reluctance to hike in September.
- Macroeconomic Releases: Includes Spain's June trade balance, Eurozone's June trade balance, and Netherlands' July unemployment rate.
- Political and Corporate Highlights: Acting Spanish PM faces parliamentary vote; reports from Aegon, Medigene, and others; M&A news includes acquisitions by BAE Systems and TE Connectivity.
- Indices: Nikkei (-0.44%), Hang Seng (-0.01%), Shanghai Composite (+0.43%).
- Market Dynamics: Asian equities ended mostly lower; volatility in Hong Kong; South Korea's currency weakened.
- Economic Indicators: Australian labor market is loosening; Japan's exports shrank; Singapore's non-oil export decline quickened.
- Corporate News: China Evergrande's investigation, Country Garden's bond warning, Woodside Energy's wage disputes, and others.
News Since Prior Close:
- International Developments: Ongoing concerns about China's housing market; Singapore's renewed export slump; Chinese corporate bond defaults causing market strains.
- Company News Highlights:
- +13.8% MEKKO.FH (Marimekko) -- Q2 earnings.
- -27.3% ADYEN.NA (Adyen) -- H1 earnings.
- +9.7% 1910.HK (Samsonite International) -- H1 reports.
- -6.0% 182400.KS (NKMAX Co Ltd) -- U.S. subsidiary approval for Nasdaq listing
US Morning News Summary:
Earnings and Financial Reports:
- $FORTY (Formula Systems (1985)): Q2 EPS $1.11, down from year-ago $2.12.
- $TPR (Tapestry): Q2 EPS $0.95, compared to FactSet consensus of $0.97 [16 estimates, $0.94-1.00].
- $SFL (SFL Corp.): Q2 EPS $0.13, significantly above FactSet's $0.04 consensus [4 estimates, ($0.05)-0.10].
- DESP (Despegar.com): Q2 EPS $0.25, a rebound from the year-ago ($0.26).
- $DOLE (Dole Plc): Q2 EPS $0.51 ex-items, beating FactSet's $0.35 [4 estimates, $0.29-0.38].
- SQM.B.CI (Sociedad Quimica y Minera de Chile): Q2 EPS $2.03, trailing FactSet's $2.44 [7 estimates, $1.93-3.20].
- $CSCO (Cisco Systems): Q4 EPS $1.14 ex-items, outpacing FactSet's $1.06 [23 estimates, $1.03-1.07].
- $SNPS (Synopsys): Q3 EPS $2.88 ex-items, surpassing FactSet's $2.74 [10 estimates, $2.72-2.77]; guidance raised.
Partnerships, Product Announcements, and Trials:
- KVHI ($KVHI): Three-year renewal of satellite partnership with Intelsat.
- FSR ($FSR): Additional details released on the Fisker Alaska pickup truck.
- $IMUX (Immunic): Completed enrollment of Phase 2 CALLIPER trial of vidofludimus calcium in progressive multiple sclerosis.
- $MODD (Modular Medical): Partnership with Phillips-Medisize to expand insulin delivery alternatives announced (yesterday post-close).
- $RVPH (Reviva Pharmaceuticals): Enrollment completed in phase 3 RECOVER study of Brilaroxazine in schizophrenia; topline data expected in October.
Corporate and Legal Matters:
- $DWACU (Digital World Acquisition): Postponed shareholder meeting to 5-Sep (yesterday post-close) - 8-K filing.
- $AHCO (AdaptHealth): Linde filed a lawsuit against incoming CEO Crispin Teufel - 8-K filing.
- $BALL (Ball Corporation): BAE Systems acquires Ball Aerospace for ~$5.55B in cash.
- $NYT (New York Times): Considering suing OpenAI to protect IP rights associated with reporting - NPR, citing sources.
- $TSN (Tyson Foods): Planning to divest China poultry business - Reuters.
- $NU (Nu Holdings): CEO David Velez sells 25M shares, reducing stake by 3% - Bloomberg.
- $PARA (Paramount Global): Drops plans to sell a majority stake in BET Media Group - Reuters.
Traded Higher Post-Close:
- $AVT (Avnet) +7.4% on earnings.
- $STNE (StoneCo) +3.4% on earnings.
- $CHGG (Chegg) +2.7%, announces increased authorization of securities repurchase program by $200M.
Traded Lower Post-Close:
- $KULR (KULR Technology Group) -35.2% on earnings, offering of indeterminate size.
- $CREX (Creative Realities) -29.4% on "reasonable best efforts" common stock offering of an indeterminate amount.
- $WOLF (Wolfspeed) -15.0% on earnings.
- $LOVE (Lovesac) -7.4%, internal investigation of financial statements; determines certain financial statements should no longer be relied upon.
Market Insights and Economic Data:
- S&P Futures: +7.5, or +0.17% vs prior close.
- FTSE 100: (0.17%) to 7344.72; DAX: (0.10%) to 15773.27.
- WTI Crude: +$0.69 or +0.87% to $80.07; Gold: ($1.40) or (0.07%) to $1926.90.
- Macau Visitor Arrivals: +28,176.9% y/y to 2.76M in July.
- Japan Jun Core Machinery Orders: m/m +2.7% vs consensus +4.5% and prior (7.6%).
- Upgrades: $ALC (Alcon) to overweight from neutral at JPMorgan.
- Downgrades: $SLG (SL Green Realty) to market performance from outperforming at BMO Capital Markets; $DEN (Denbury) to sector weight from overweight at KeyBanc.
Upcoming U.S. Earnings:
Did we finally find our bottom yesterday? I want to hear your opinions about it~