Early Look

Tuesday, September 12, 2023

Futures	Up/Down	%	Last
Dow	-57.00	0.16%	34,955
S&P 500	-10.25	0.22%	4,529
Nasdaq	-33.50	0.21%	15,641

 

 

Stock futures are looking slightly lower after major averages finished higher on Monday led by tech and communications. Tech seeing a little pullback this morning as a softer cloud revenue outlook from software giant Oracle (ORCL) has shares down over -9%. Today’s attention stays with technology after Oracle and as Apple (AAPL) holds its annual product launch this afternoon where a new iPhone is expected to be unveiled at a higher price point and as the first of two major DOJ cases against Google goes to trial Tuesday. U.S. stocks closed higher Monday, with Tesla fueling the S&P 500 index’s gains while the DJIA rose for a third straight day, ending 0.3% higher. Stocks rose to start a big week of inflation data (CPI data on Wednesday and PPI on Thursday). The dollar stabilizes after Monday’s selloff; yen hovers around 146.65/USD and the Treasury 10-year yield steady around 4.29%. In Asian markets, The Nikkei Index gained 308 points to 32,776, the Shanghai Index fell -5 points to 3,137, and the Hang Seng Index dropped -70 points to 18,025. In Europe, the German DAX is down about -40 points to 15,759, while the FTSE 100 rises 40 points to 7,538.

 

Market Closing Prices Yesterday

·     The S&P 500 Index climbed 30.10 points, or 0.68%, to 4,487.59.

·     The Dow Jones Industrial Average rose 88.18 points, or 0.26%, to 34,664.77.

·     The Nasdaq Composite gained 156.37 points, or 1.14%, to 13,917.89.

·     The Russell 2000 Index advanced 3.60 points, or 0.19% to 1,855.14

 

Economic Calendar for Today

·     6:00 AM ET            NFIB Small Business Optimism for Aug

·     7:45 AM ET            ICSC Weekly Retail Sales

·     8:55 AM ET            Johnson/Redbook Weekly Sales

·     1:00 PM ET            US Treasury to sell $38B in 10-year notes.

·     4:30 PM ET            API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: VNCE

·     Earnings After the Close: EGIO EPM FARM INNV MAMA

 

Other Key Events:

·     Apple (AAPL) set Sept. 12 date for its launch of iphone 15, and new watches.

·     Goldman Sachs Annual CEEMEA Financials Symposium, 9/11-9/12, in London

·     Goldman Sachs Annual Global Retailing Conference, 9/12-9/13, in New York

·     Goldman Sachs China+ Conference 2023, 9/12-9/13, in Hong Kong

·     HC Wainright Annual Global Investment Conference, 9/11-9/13, in New York

·     RBC Capital Global Industrials Conference, 9/12-9/13, in Las Vegas

·     Roth MKM 10th Annual Solar & Storage Symposium at SPI, 9/12-9/13, in Las Vegas

·     Salesforce Dreamforce 2023 in San Francisco, 9/12-9/14

·     Truist Securities Internet Growth Summit (virtual), 9/12-9/15

 

 

Macro	Up/Down	Last
Nymex	0.72	88.01
Brent	0.66	91.30
Gold	-7.00	1,940.20
EUR/USD	-0.0032	1.0718
JPY/USD	0.28	146.86
10-Year Note	-0.008	4.28%

 

 

World News

·     NFIB Small Business Optimism Index: 91.3 vs. 91.7 consensus, 91.9 in July.

·     Australian business conditions improved 0.2 to 13 according to the NAB survey because of a lift in trading and employment. Confidence also improved 1 point to 2.

·     Shutdown risk looms as US Congress faces spending, impeachment brawl ‘; The main dispute among House Republicans is a demand by roughly three-dozen members of the hardline House Freedom Caucus to cut spending for fiscal 2024 to $1.47 trillion — about $120 billion less than Biden and Republican House Speaker Kevin McCarthy agreed in May – Reuters.

·     The British pound drops to below $1.25 after UK labor market data highlighted stagflation risks to the economy. Sterling underperforms G-10 FX.

 

Sector News Breakdown

Consumer

·     Casey General (CASY) Q1 EPS $4.52 vs. est. $3.36; Q1 adj EBITDA $315.5M, +7.6% y/y vs. est. $264.8M; Q1 revs fell -13% y/y to $3.87B vs. est. $3.89B; now expects to add at least 150 stores in FY24; Q1 inside same-store sales increased 5.4% compared to prior year.

·     TikTok has officially rolled out its e-commerce business in the United States after months of testing, according to a blog post on Tuesday.

 

Energy, Industrials and Materials

·     AerCap (AER) 40.68M share Spot Secondary priced at $59.00; GE unit to sell about 40.7 mln AER at $59 each for about $2.44 bln in all.

·     United Parcel Service (UPS) said its new five-year deal with Teamsters-represented workers will cost less than $30 bln that was outlined by the union. The contract, which covers about 340,000 UPS workers in the United States, would increase wage and benefit costs at a 3.3% compound annual growth rate over the life of the agreement. Contract-related costs in H2 2023 are expected to be about $500 mln more than UPS expected.

·     Smurfit Kappa (SMFKY) and U.S. rival WestRock (WRK) agreed to merge to create the world’s largest listed paper and packaging company worth nearly $20 billion. WestRock stockholders will get one share in the new company, called Smurfit WestRock, and $5 in cash for each share they hold, which works out to $43.51 per share, the companies said in a statement.

 

Financials

·     Cohen & Steers, Inc. (CNS) preliminary assets under management of $80.0 billion as of August 31, 2023, a decrease of $2.3 billion from assets under management at July 31, 2023. The decrease was due to market depreciation of $2.2 billion and distributions of $157 million, partially offset by net inflows of $12 million.

·     Civeo (CVEO) has entered into a definitive agreement to sell its McClelland Lake Lodge assets to a US-based mining project for approximately C$49M, or $36M.

·     Hut 8 Mining Corp. (HUT) said it mined 103 Bitcoin in August 2023, resulting in an average production rate of approximately 3.3 Bitcoin per day. No Bitcoin were sold during the month.

 

Healthcare

·     Affimed (AFMD) announced that the FDA has granted fast track designation to the combination of its innate cell engager AFM13 with AlloNK for the potential treatment of relapsed/refractory Hodgkin lymphoma.

·     CVS Health Corp. (CVS) reaffirmed the company’s previously announced full year 2023 GAAP diluted earnings per share guidance range of $6.53 to $6.75 and reaffirm its full year 2023 adjusted EPS guidance range of $8.50 to $8.70.

·     MoonLake Immunotherapeutic (MLTX) Q4 adj EPS ($0.11) vs est. ($0.21) on revs $205.9Mm vs est. $208.23Mm; adj EBITDA $2.3Mm vs est. $(2.108Mm).

·     Sight Sciences (SGHT) lowers FY 23 revenue view to $80M-$82M from prior $89M -$94M (est. $92.12M).

 

Technology, Media & Telecom

·     Oracle Corp. (ORCL) shares fall -9%; Q1 adj EPS $1.19 vs est. $1.15 on revs $12.5B vs est. $12.47B, cloud revs $4.6B, adj op mgn 41%; Q1 deferred revenues were $11.1B, Q1 operating cash flow was $7.0B, up 9%, and Q1 free cash flow was $5.7 billion, up 21%; sees Q2 EPS $1.30-$1.34 vs. est. $1.25; sees Q2 revenue up 5%-7% and sees Q2 cloud revenue up 29%-31%.

·     Skillsoft Corp. (SKIL) Q2 EPS loss (-$0.18) vs. est. loss (-$0.16); Q2 revs $141.2M vs. est. $140M; Q2 total bookings continuing operations $129.2M; still sees ADJ EBITDA $100M-$105M, vs. est. $103M; still sees bookings $610M-$640M, and still sees GAAP revenue $555M.$585M.

·     Klaviyo (KVYO) 19.2M share IPO price range $25.00-$27.00.