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Morning Prep 08/21
S&P futures: +18.5, or +0.42% vs prior close as of 6:50ET.
Synopsis:
- Equity Update: S&P equity futures are trading below the last update but above Friday's close due to a positive session in Europe and a mixed close in Asia.
- Market Sentiment: General negativity with concerns over rate pressure, China's growth, depleted savings, bank downgrades, and technical deterioration.
- Positive Influences: Stabilization in FY23 consensus earnings, Q2 earnings season, consumer resilience, last week's July retail sales data, and earnings/guidance from major retailers.
- Economic Calendar: Nothing on the US calendar. Fed's Jackson Hole symposium on Friday. China's structural headwinds, policy responses, and property sector contagion dominate headlines.
- Rate Adjustments: PBoC cut 1-year LPR by 10 bp to 3.45% and 5-year LPR at 4.20%, smaller than expected. German PPI declined more than expected.
- Earnings: Zoom Video ($ZM), Nordson ($NDSN) reporting after the close.
- Macro calendar: Empty.
European Markets:
- FTSE 100 +0.59%
- DAX +0.69%
- CAC40 +1.15%
Corporate News and Highlights:
- Crest Nicholson Holdings ($CRST.LN) cut FY outlook.
- Self Storage Group ($SSG.NO), B&S Group ($BSGR.NA), and Aluflexpack ($AFP.SW) lower post-Q2/ H1 earnings.
- Direct Line ($DLG.LN) in CEO talks.
- Covestro ($1COV.GR) new CFO.
- Finnair ($FIA1S.FH) CEO steps down.
- Polymetal International ($POLY.LN) to sell Russian business.
- Entain ($ENT.LN) in talks over a deal for Racing.com.
Company News Highlights:
- +2.8% $INDV.LN (Indivior) -- agreement with end payor class.
- -5.6% $FIA1S.FH (Finnair) -- CEO steps down.
- -0.6% $BVB.GR (Borussia Dortmund) -- FY net income report.
Asian Markets:
- Nikkei +0.37%
- Hang Seng -1.82%
- Shanghai Composite -1.24%
Corporate News and Highlights:
- Concerns over PBOC’s smaller-than-expected LPR cuts.
- Goldman Sachs lowers outlook on Chinese stocks.
- Bondholders' demands at Country Garden ($2007.HK).
- Concerns over Woodside Energy's ($WDS.AU) North West Shelf.
- A2 Milk ($ATM.NZ) reports dragging demand.
Company News Highlights:
- +3.9% $136.HK (China Ruyi Holdings) -- H1 net loss expected.
- +2.4% $011200.KS (HMM) -- potential offer.
- -22.4% $9959.HK (Linklogis) -- H1 net income guidance.
International news:
- Italy's endorsement for ECB post.
- UK jobs market cools in July.
- Netherlands and Denmark donate F-16 jets to Ukraine.
- Ukraine's deal with global insurers.
- China's military exercises around Taiwan.
- US, Japan, and South Korea boost security cooperation.
- Concerns over the debt crisis in South Korea.
US Morning News:
- $NNVC (NanoViricides): Phase 1a/1b human clinical trial of NV-CoV-2 shows progress.
- $AVGO (Broadcom): Confirms that its acquisition of $VMW (VMware) is expected to close on 30-Oct-23.
- $NNDM (Nano Dimension): Q2 EPS reported at ($0.04), an improvement from year-ago ($0.15).
- $GFGDU (The Growth for Good Acquisition Corporation): Shareholder meeting postponed to 28-Aug-23 for merger consideration with ZeroNox.
- $GGAUF (Genesis Growth Tech Acquisition) and NextTrip: Mutual agreement to terminate the merger plan.
- $NXE (NexGen): Finished Provincial Environmental Assessment technical review; submitted Final Environmental Impact Statement.
- $AVA (Avista): Investigation finds no indication of involvement in the ignition of Gray Fire in Washington.
- $NKLA (Nikola): Files $125M offering of Series A-1 Senior Convertible Notes due in 2024.
- $JNJ (Johnson & Johnson): Announces preliminary results of Kenvue exchange offer.
- $NDAQ (Nasdaq): EU Commission will assess the acquisition of Nasdaq's European power trading by the European Energy Exchange.
- $ZEPP (Zepp Health): Reports Q2 adjusted EPADS at (CNY0.97) versus year-ago (CNY1.54).
- $OLB (OLB Group): Reports Q2 EPS of ($0.04) vs year-ago ($0.11).
- $CSSE (Chicken Soup for the Soul Entertainment): Repeats FY revenue guidance $400-450M vs FactSet $456.2M.
- $APP (Applovin): Plans to repurchase 15M shares owned by KKR Denali for $552.75M.
- $BTTR (Better Choice): Reports Q2 EPS of ($0.10) vs year-ago ($0.15).
- $LQDA (Liquidia): Evaluating patent claims covering the manufacture of treprostinil salts.
- $BLCM (Bellicum Pharmaceuticals): Engaging in talks with MDACC for potential asset sale.
- $JFIN (Jiaying Holdings): Q2 EPADS at CNY6.10 vs year-ago CNY4.72.
- $VMW (VMware): UK's CMA clears Broadcom's acquisition.
- $MAC (Macerich): Leasing volumes update provided.
- $IDYA (IDEAYA Biosciences): IND application clearance for Pol Theta Helicase development candidate GSK101 (IDE705).
- $J (Jacobs Solutions): Response to Sunday Times article by KBR.
- $HL (Hecla Mining): Update on Lucky Friday mine.
- $AXNX (Axonics): CFO Dan Dearen announces retirement.
- $ACG.LN (ACG Acquisition Co.): Revisions to the acquisition of Serrote, Santa Rita mines not yet agreed upon.
- $SY (So-Young International): Reports Q2 GAAP EPADS (CNY0.02) vs year-ago (CNY0.30).
- $PRT (PermRock Royalty Trust): Monthly cash distribution of $0.040201 per trust unit declared.
- $PANW (Palo Alto Networks): Q4 EPS $1.44 ex-items vs FactSet $1.29.
- $RNW (ReNew Energy Global): Q1 net income INR2.98B vs year-ago (INR104M).
- $NSSC (NAPCO Security Technologies): Guides Q4 revenue $44.7 vs FactSet $48.1M; announces restatement and dividend increase.
- $AZZ (AZZ Inc): Expects FY24 adjusted EPS $3.85-4.35 vs FactSet $4.00.
- $MMC (Marsh & McLennan Cos.): Acquiring Honan Insurance Group; terms undisclosed.
- $YELL (Yellow): Old Dominion Freight Line offers $1.5B to acquire Yellow's terminal portfolio.
- $DD (DuPont de Nemours): In advanced talks for a $1.8B sale of Delrin resins unit.
- $J (Jacobs Solutions): KBR is interested in Jacobs's CMS.
- $SCU (Sculptor Capital Management): Special committee statement responding to a media inquiry.
- $GS (Goldman Sachs): CEO retains board support despite internal backlash.
- $C (Citigroup): The CEO considers splitting the bank's division for increased control.
- $AMD (Advanced Micro Devices): UK to invest up to £100M on AI chips.
- $DATABRICKS (Databricks): Tech startups may reconsider IPOs amid ARM IPO.
Most-read stories:
- $2413.JP (M3): Acquires Messly.
- $CNU.NZ (Chorus): Releases FY23 sustainability report.
- $LATO.B.SS (Latour Investment): Reports Q2 income SEK977M vs FactSet SEK1.05B.
- $ATORX.SS (Alligator Bioscience): EMA grants orphan drug designation to mitazalimab for Pancreatic cancer.
- $THUNDR.SS (Thunderful Group): Reports Q2 EBIT SEK24.8M vs FactSet SEK48.6M.
Up/Downgrades:
Upgrades:
- $LSXMA (Liberty Media): Buy from neutral at Seaport Research Partners.
Downgrades:
- $PXD (Pioneer Natural Resources): Neutral from buy at Gerdes Energy Research.
- $PODD (Insulet): Neutral from outperform at Baird.
U.S. Earnings Today:
Data:
- Economic:
- Germany Jul PPI, China Loan Prime Rate, New Zealand Trade Balance.
Have a great week everyone!!
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