Early Look

Tuesday, August 13, 2024

U.S. futures are flat as the S&P (Spuz) pullback from overnight highs of 5,401.75 back to 5,372.50 (flat) ahead of round 1 of key inflation economic data. Estimates for 8:30 AM ET producer price index (PPI) headline M/M for July is to rise +0.2% (prior +0.2%) and Y/Y to rise +2.3% (prior +2.6%). The core PPI (Ex: Food & Energy) for July est. +0.2% (prior +0.4%) and Y/Y for July est. +2.7% (prior +3.0%). After today, the more important consumer price index (CPI) report is due tomorrow morning and is expected to shape the outlook for rate cuts by the Fed at the September meeting. In stock news, Dow component and home improvement retail giant Home Depot (HD) reported better Q2 results, but shares dropped following mixed guidance after lowering its overall and comp sales FY outlooks. Oil prices remain active as traders are monitoring events in the Middle East after the US said an Iranian attack against Israel may come as soon as this week. In Asian markets, The Nikkei Index surged 1,207 points or 3.45% to settle at 36,232 after being closed yesterday for holiday, the Shanghai Index rose 9 points to 2,867, and the Hang Seng Index rose 62 points to 17,174. In Europe, the German DAX is -45 points to 17,680, while the FTSE 100 is down -15 points to 8,195. Treasury yields flattish as is the dollar and gold prices hold $2,500 ahead of the PPI.

• The Dow Jones Industrial Average fell -140.53 points, or 0.36%, to 39,357.01.
• The Nasdaq Composite gained 35.31 points, or 0.21%, to 16,780.61.
• The Russell 2000 Index declined -18.83 points, or 0.91% to 2,062.08.

• 7:45 AM ET ICSC Weekly Retail Sales
• 8:30 AM ET                  Producer Price Index (PPI) headline M/M for July…est. +0.2% (prior +0.2%)
• 8:30 AM ET                  Producer Price Index (PPI) headline Y/Y for July…est. +2.3% (prior +2.6%)
• 8:30 AM ET PPI Ex: Food & Energy (core) M/M for July…est. +0.2% (prior +0.4%)
• 8:30 AM ET PPI Ex: Food & Energy (core) Y/Y for July…est. +2.7% (prior +3.0%)
• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 1:15 PM ET                   Fed’s Bostic Speaks on Economy in Moderated Conversation
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: BEEM CTSO DMRC DRRX ICAD ICCC INTA INTZ KE MNR MRCY NATL OUST QMCO QUIK SND USPH

• JP Morgan Futures of Financials Forum, 8/13-8/14 (virtual)
• Oppenheimer 27th Annual Technology, Internet & Communications Conference, 8/12-8/14
• Wedbush PacGrow Healthcare Conference, 8/13-8/14, in New York

• German investor morale sunk more than expected in August, posting its strongest decline in two years, as the ZEW economic research institute said its sentiment index fell to 19.2 points from 41.8 points in July (est. 32.0).
• Tesla CEO Elon Musk’s interview with Donald Trump on X, the social media site formerly known as Twitter, was delayed by a cyberattack, according to a post on the platform from the billionaire. “There appears to be a massive DDOS attack on X. Working on shutting it down,” Musk said in the post. In a later post, Musk said, “We will proceed with the smaller number of concurrent listeners at 8:30 ET and then post the unedited audio immediately thereafter.” The conversation, as Musk called it in a post, was scheduled to launch at 8 P.M. Eastern time on X’s Spaces platform. The Space had over 20M views before Musk’s post about a DDOS attack, according to X’s count – Barron’s

• Home Depot (HD) Q2 adj EPS $4.67 vs. consensus $4.49; Q2 revenue $43.18B vs. consensus $43.06B; Q2 comparable store sales fell -3.3%, and comparable sales in the U.S. decreased -3.6%; sees FY24 adjusted EPS down 1%-3%, boosts FY24 revenue view to up 2.5%-3.5% from up 1%; lowers FY24 comp sales view to down 3%-4% from down 1%.
• Life Time Group (LTH) 12M share Secondary priced at $21.75.
• British automotive supplier Dowlais Group hit a record low on Tuesday after it cut its annual revenue forecast citing a slowdown in Europe’s electric vehicle (EV) market.

• Uranium Energy Corp (UEC) announces restart of ISR uranium production in Wyoming; first shipment of yellowcake expected in November Or December 2024; license amendment under review to increase Irigarayan capacity to 4.0 mln pounds.
• Western Midstream (WES) 19M share Spot Secondary priced at $36.10.

• Invesco Ltd. (IVZ) prelim month-end assets under management of $1,732.0 billion, an increase of 0.9% versus the previous month-end. The firm delivered net long-term inflows of $10.8 billion in the month. Non-management fee earning net inflows were $3.2 billion and money market net outflows were $12.1 billion.
• TeraWulf Inc. (WULF) Q2 adj EBITDA $19.5Mm vs est. $18.01Mm on revs $35.6Mm vs est. $35.44Mm.
• Victory Capital Holdings, Inc. (VCTR) reported Total Assets Under Management (AUM) of $172.1 billion, Other Assets of $4.8 billion, and Total Client Assets of $177.0 billion, as of July 31, 2024. For the month of July, the average Total AUM was $170.8 billion, average Other Assets was $5.0 billion, and average Total Client Assets was $175.7 billion.
• Virtus Investment Partners, Inc. (VRTS) prelim assets under management of $178.1 billion and other fee earning assets of $2.5 billion for total client assets of $180.6 billion as of July 31, 2024. The increase in AUM from June 30, 2024, primarily reflects market performance and positive net flows in retail separate accounts.

• Syros Pharmaceuticals (SYRS) announced that it will discontinue enrollment in the SELECT-AML-1 Phase 2 clinical trial evaluating the triplet regimen of tamibarotene in combination with venetoclax and azacitidine compared to the doublet regimen of venetoclax and azacitidine in newly diagnosed, unfit patients with acute myeloid leukemia (AML) and RARA gene overexpression. This decision is based on the results of a prespecified interim analysis of the trial.
• Swiss MedTech company Tecan (TCGGY) cut FY guidance citing weak demand; said expects FY24 sales in local currencies to range from on prior-year level to a decrease in mid-single-digit percentage range; shares of MedTech peers Sartorius (SOAGY) fell overseas, watch US peers (TMO, RGEN, AVTR, WAT, A).

• OnSemi (ON) is reiterating its full year expectation of at least 30% net sales growth on a constant currency basis. Considering the recent strength of the Swiss Franc and assuming spot rates persist at current levels for the remainder of the year, this implies reported net sales of at least CHF 2.26B in 2024.
• Rumble Inc. (RUM) Q2 EPS ($0.13) vs est. ($0.15) on revs $22.47Mm vs est. $19.69Mm; says expect revenues to continue to increase sequentially through 2024 and continue to expect to move materially towards adjusted EBITDA Breakeven in 2025 vs est. ($25.7Mm).
• Sea Limited (SE) Q2 EPS $0.14 vs. est. $0.17; Q2 revs $3.81B vs. consensus $3.68B; said they expect that Shopee will become adjusted EBITDA positive from Q3; revising up our guidance for Shopee’s 2024 FY GMV growth to mid-20%.
• Viant (DSP) Q2 adj EPS $0.08 vs. est. $0.01; Q2 revs $65.87M vs. consensus $65.09M; sees Q3 revenue $67.5M-$70.5M, vs. consensus $67.97M and sees Q3 adjusted EBITDA $11M-$12M.