Early Look

Monday, July 1, 2024

U.S. futures looking slightly higher to start the week, but the CBOE Volatility index (VIX) is also showing strength early up nearly 5% above the 13 level as markets prepare for a short and interrupted trading week. Stock markets have full days today and tomorrow, close early on Wednesday at 1:00 PM for the 4^th of July and are closed full on Thursday before a full day of trading on Friday. The S&P 500 wiped out an advance that reached a record, propelled by a slowdown in the Federal Reserve’s preferred measure of underlying inflation. The Nasdaq 100 also dropped after briefly surpassing the historic 20,000 mark. But by day’s end, traders were reluctant to extend the all-time highs. It has been a banner start for the week and year as noted: For the week, the S&P 500 fell 0.1%, the Dow fell 0.1% and the Nasdaq climbed 0.2%. For the month, the S&P 500 climbed 3.5%, the Dow climbed 1.1% and the Nasdaq climbed 6.0%. For the quarter, the S&P 500 climbed 3.9%, the Dow fell 1.7% and the Nasdaq climbed 8.3% and for the 1H’24, the S&P 500 jumped 14.48%, the Dow rose 4.72% and the Nasdaq surged 18.13%. Other notable total returns for the 1st half of year: Bitcoin +43% YTD, QQQ (Nasdaq 100) +17%, GLD (gold) +13%, IWM (U.S. small caps) +2%, TLT (20+yr Treasury) -6%. In Asian markets, The Nikkei Index rose 47 points to 39,631, the Shanghai Index rose 27 points to 2,994, and the Hang Seng Index was closed. In Europe, the German DAX is up 66 points to 18,301, while the FTSE 100 rises 23 points to 8,187

• The Dow Jones Industrial Average fell -45.20 points, or 0.12%, to 39,118.86.
• The Nasdaq Composite dropped -126.08 points, or 0.71%, to 17,732.60.
• The Russell 2000 Index advanced 9.34 points, or 0.46% to 2,047.69.

• 10:00 AM ET                Construction Spending M/M for May…est. +0.1%
• 10:00 AM ET ISM Manufacturing PMI for June…est. 49.1

• North Korea launched at least one short-range ballistic missile off its east coast Monday, South Korea’s military said, a day after the North vowed “offensive and overwhelming” responses to a new U.S. military drill with South Korea and Japan.
• Fun fact: Today, the Mets will pay Bobby Bonilla his 14th installment of $1,193,248.20. The Mets have, so far, paid $16,705,474.40 for him to NOT PLAY the 2000 season. There are 11 installments left, totaling $11,932,482.

• Li Auto Inc. (LI) said it delivered 47,774 vehicles in June 2024, up 46.7% y/y; this brought the Company’s second-quarter deliveries to 108,581, increasing 25.5% y/y. As of June 30, 2024, its cumulative deliveries reached 822,345 vehicles, ranking first among China’s emerging new energy auto brands.
• NIO Inc. (NIO) said it delivered 21,209 vehicles in June 2024, representing an increase of 98.1% y/y; deliveries consisted of 11,581 premium smart electric SUVs, and 9,628 premium smart electric sedans. NIO delivered 57,373 vehicles in the second quarter of 2024, representing an increase of 143.9% y/y.
• XPENG (XPEV) delivered 10,668 Smart EVs in June, representing a 24% increase y/y and up 5% over the prior month. This month the XPENG X9’s deliveries reached 1,687 units, with its cumulative total up to 13,143 units just half a year after its launch. Overall, XPENG delivered 52,028 Smart EVs in the first half year of 2024, a 26% increase from last year.
• Chicken Soup for the Soul Entertainment (CSSE), the parent company of the movie rental company Redbox filed for Chapter 11 bankruptcy protection on Friday.
• Tractor Supply (TSCO) decided to end DEI, and fast after a social-media blitz by former Hollywood director spread fear among company leaders that diversity criticism would hurt business – WSJ. https://tinyurl.com/yrf8b263

• GE’s (GE) renewable energy arm is being sued by American Electric Power Co. (AEP) for refusing to fix hundreds of defective wind turbine generators GE supplied for three wind power generation projects in Oklahoma.
• Honeywell (HON) mentioned positively in Barron’s saying its hard times are coming to an end and it’s time to buy the stock as a combination of operational improvements, M&A, and a relatively cheap valuation has the industrial company’s shares looking more attractive than they have in years.
• Maersk (AMKBY) shares +6.4% premarket after saying on Monday it had withdrawn from a DB Schenker sales process after a review identified challenges regarding the integration into its business.
• Transocean (RIG) files to sell 55.51M shares of common stock for holders.

• Citizens Financial (CFG) increases share repurchase program to $1.25B.
• Citigroup (C) raises quarterly dividend to $0.56 from $0.53; said its indicative Stress Capital Buffer (“SCB”) requirement is 4.1%, down from the current 4.3%, and Citi’s preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement is 12.1%, down from the current 12.3%, effective October 1, 2024.
• Goldman Sachs (GS) plans to raise the quarterly dividend to $3.00 from $2.75 per share.
• JPMorgan (JPM) raises quarterly dividend to $1.25 per share, authorizes $30B buyback.
• Morgan Stanley (MS) raises the quarterly dividend to $0.92c per share from $0.85.
• State Street (STT) raises the quarterly dividend to $0.76 per share after stress tests.
• Truist (TFC) board authorized a $5B buyback program through 2026.

• GE HealthCare (GEHC) files automatic mixed securities shelf.
• SpringWorks Therapeutics, Inc. (SWTX), announced that the Company has completed the submission of a New Drug Application (NDA) to the U.S. FDA for mirdametinib, an investigational MEK inhibitor, for the treatment of pediatric and adult patients with neurofibromatosis type 1- associated plexiform neurofibromas (NF1-PN).