Early Look

Monday, July 31, 2023

Futures	Up/Down	%	Last
Dow	47.00	0.13%	35,639
S&P 500	4.25	0.09%	4,610
Nasdaq	-4.50	0.03%	15,852

 

 

Stock futures are looking modestly higher, trying to add to last week’s gains where for the week, the S&P 500 rose 1.0%, the Dow rose 0.6% and the Nasdaq rose 2.0%. Another massive week of corporate earnings on tap with roughly 1/3 of the S&P 500 reporting this week, highlighted by results from Apple (AAPL) and Amazon (AMZN), along with likes of Pfizer, Starbucks, EA, CVS and Coinbase. For the week ahead, 170 S&P 500 companies report results, with four from the Dow. In Asian markets, The Nikkei Index surged 412 points to 33,172, the Shanghai Index gained 15 points to 3,291, and the Hang Seng Index advanced 162 points to 20,078. In Europe, the German DAX is up 15 points to 16,485, while the FTSE 100 is down a few points to 7,690.

 

Market Closing Prices Yesterday

·     The S&P 500 Index gained 44.82 points, or 0.99%, to 4,582.23.

·     The Dow Jones Industrial Average rose 176.57 points, or 0.50%, to 35,459.29.

·     The Nasdaq Composite jumped 266.55 points, or 1.90%, to 14,316.66.

·     The Russell 2000 Index advanced 26.64 points, or 1.36% to 1,981.54.

 

Economic Calendar for Today

·     9:45 AM ET                  Chicago PMI for July

·     10:30 AM ET                Dallas Fed manufacturing for July

 

Earnings Calendar:

·     Earnings Before the Open: APLS ARLP CBU CNA IMGN L ON OXLC SJW SOFI SYM

·     Earnings After the Close: AAN AMKR AMRC ANET ARI AVB BCC BHE BMRN BRX CAR CNO CRC CRK CSR CWK DV ES FANG GDEN HLIT HOLX HUN INST KFRC KIDS KRC KRG LEG LSCC MPWR MSA OGS OTTR PCH PETS PGRE PLOW RIG RMBS RRX RSG RYI SANM SBAC SON THC TREX TRUE TTI TWO VNO VNOM VRNS WDC WWD ZI

 

Other Key Events:

·     China Caixin Manufacturing PMI Final for July

 

 

Macro	Up/Down	Last
Nymex	0.76	81.34
Brent	0.56	85.55
Gold	-4.80	1,995.10
EUR/USD	0.0021	1.1036
JPY/USD	0.17	142.33
10-Year Note	+0.01	3.979%

 

 

World News

·     China’s official manufacturing purchasing managers’ index rose to 49.3 in July from 49.0 in June, the National Bureau of Statistics said Monday and the result was above the forecast of 49.0 but remaining in contraction for the fourth consecutive month.

·     China’s services PMI eased from 53.2 to 51.5 in July for its 4th straight monthly decline and its lowest level this year.

·     Minneapolis Fed President Neel Kashkari said the Fed’s current assessment is that the U.S. will pull off a so-called soft landing and avoid a recession. But he noted that core inflation, currently around 4.1%, is still double the Fed’s 2% target.

·     The Bank of Japan made an unscheduled purchase of ¥300bn JGBs in the 5-year to 10-year sector after the 2-year JGB yield lifted above 0.0% for the first time since January. USDJPY lifted to its highest level in just over a week.

 

Sector News Breakdown

Consumer

·     Barnes & Noble Education (BNED) shares rise 20% pre mkt after saying it entered into an agreement with its stakeholders and strategic partners on refinancing terms.

·     Capri Holdings (CPRI) downgraded to Neutral from Overweight at JPMorgan.

·     Ford Motor Co. (F) has acknowledged in a letter to the National Highway Safety Administration a safety recall of 870,701 F-150 trucks equipped with a single exhaust system. Ford said the rear axle housing may damage the wiring harness, causing the electric parking brake to activate unexpectedly while driving.

·     Sweetgreen (SG) upgraded to Overweight from Neutral at Piper Sandler with $19 tgt.

·     Walmart (WMT) has paid $1.4B to buy out a large investor in Flipkart, further cementing its control of the Indian e-commerce giant, the WSJ reported. https://tinyurl.com/4snd69cf

·     Wayfair (W) upgraded to Overweight from Neutral at Piper Sandler and raised its price tgt to $97 from $35.

 

Energy, Industrials and Materials

·     Yellow Corp. (YELL) shuts down operations as the WSJ reported the 99-year-old company with 22,000 Teamsters employees advises customers and workers of shutdown. https://tinyurl.com/bdz9jzpr

 

Financials

·     CNA Financial (CNA) Q2 EPS $1.13 was in-line with consensus; Book value per share $32.22 vs. $35.06 y/y, est. $32.87; Property & casualty combined ratio 93.8% vs. 91% y/y.

·     Loews (L) Q2 EPS $1.58 vs. 68c last year; Q2 revs $3.93B vs. $3.39B last year and reports Q2 book value per share $78.56.

·     MetLife (MET) rises 2% after Bloomberg News reports that Singapore insurer Great Eastern Holdings is in talks to buy the company’s Malaysian venture.

·     The U.S. SEC requested Coinbase (COIN) halt trading in all cryptocurrencies other than bitcoin before suing the exchange last month for failing to register as a broker – Financial Times reports.

·     New York Community Bancorp (NYCB) upgraded to Buy from Hold at Deutsche Bank.

 

Healthcare

·     A New Jersey bankruptcy judge threw out the second chapter 11 case that Johnson & Johnson (JNJ) filed to resolve its mass talc liabilities late Friday, again shutting down the healthcare-product company’s plan to achieve an $8.9 billion settlement.

·     Allarity Therapeutics Inc (ALLR) shares rose after saying it entered into a clinical collaboration agreement with privately-held FivepHusion to develop FivepHusion’s chemotherapy candidate against solid tumors.

·     Apellis Pharmaceuticals (APLS) announced data from the GALE extension study following 30 months of continuous treatment with SYFOVRE, the first and only FDA approved treatment for geographic atrophy secondary to age-related macular degeneration.

·     ImmunoGen (IMGN) Q2 EPS loss (-$0.02) vs. est. loss (-$0.14); Q2 revs $83.2 vs. est. $48.35M; announces departure of Chief Medical Officer Anna Berkenblit; raises FY23 OpExp view to $350M-$365M from $320M-$335M; had $572.0M in cash and cash equivalents.

 

Technology, Media & Telecom

·     John Malone’s Liberty Media (LSXMA, LBRDA, LBTYA) empire is complex and frustrating. But recent moves could make investing in it less of a headache, providing an opportunity for investors willing to wade into the stocks, according to Barron’s.

·     Salesforce (CRM) downgraded to Equal Weight from Overweight at Morgan Stanley.

·     Tencent Music (TME) downgraded to Neutral from Buy at Citi.

·     Trip.com Group (TCOM) upgraded to Overweight from Neutral at JPMorgan.