Morning Preview: August 08, 2022

Early Look
Monday, August 8, 2022
Futures |
Up/Down |
% |
Last |
Dow |
131.00 |
0.40% |
32,888 |
S&P 500 |
19.25 |
0.47% |
4,166 |
Nasdaq |
83.50 |
0.63% |
13,312 |
U.S. stock futures add to last week gains as futures look higher by +0.47% at 4,166 after stocks wavered Friday following the better-than-expected July jobs report, as investors assessed what a strong labor market would mean for the Fed’s rate tightening campaign. The Dow was up 76.65 points, the S&P 500 fell 0.16% and the Nasdaq slipped -0.5%. For the week, unofficially, the S&P rose 0.36%, the Dow lost 0.13%, the Nasdaq gained 2.15%. A big week coming up for inflation data as the July consumer price data (CPI) is due Wednesday, with investors expecting some cooling in the pace of headline price rises to 8.7% YoY for July vs 9.1% previous. However, core CPI is expected to tick higher to 6.1% YoY vs 5.9% previous. Earnings this week begin to slow down with only roughly 25ish S&P companies expected to report, Disney (DIS) being among the biggest, but a few other momentum/highly anticipated names this week to watch include: BNTX, COIN, GOLD, NCLH, NVAX, PLTR, RBLX, TSN and UPST. In Asian markets, The Nikkei Index rises 73 points to 28,249, the Shanghai Index gains 9 points to 3,236, and the Hang Seng Index slides -156 points to 20,045. In Europe, the German DAX gains +0.6% to 13,650, while the FTSE 100 rises roughly +0.5% to 7,475. Over the weekend, the U.S. Senate narrowly passed President Joe Biden’s Inflation Reduction Act on Sunday by a margin of 51-50, aiming to cut government deficits and consumer medical bills while boosting climate-change spending, increasing corporate income.
Market Closing Prices Yesterday
· The S&P 500 Index dropped -6.75 points, or 0.16%, to 4,145.19
· The Dow Jones Industrial Average rose 76.65 points, or 0.23%, to 32,803.47
· The Nasdaq Composite slipped -63.03 points, or 0.50%, to 12,657.56
· The Russell 2000 Index advanced 15.37 points, or 0.81% to 1,921.82
Economic Calendar for Today
· No Major Economic Data
Earnings Calendar:
· Earnings Before the Open: AMR ANIP APRN CMRX CLVS D DCTH DINO DXPE ELAN ENR HE HEP III KOS MKTX OSG PLTR PMTS PRTY RETA THS TSN VTRS
· Earnings After the Close: ACAD ACM AEL AIG AMBC APLS APPS ASUR ATER ATRA AVLR AZPN BCOR BIRD BKD BLNK BW BWXT CARA CARG CBT CLOV CSTL CURO DDD DM DOCN DOOR EAR EHTH ENTA ESE FRPT FSK GBT GDRX GOEV GRPN HCI HEAR HIMS ICUI IVC LAZR LGND LMND LPSN MARA ME MESA NCMI NE NNI NVAX NWSA OKE PFG PRA PRAA PRI PUBM QLYS ROOT SDC SKT SWAV SWCH TASK TREX TSE TTWO TXG UPST VAC VECO VLDR VRM VSAT XPER YMAB
Macro |
Up/Down |
Last |
Nymex |
-0.98 |
88.03 |
Brent |
-1.02 |
93.90 |
Gold |
3.70 |
1,794.90 |
EUR/USD |
0.0006 |
1.0187 |
JPY/USD |
-0.16 |
134.81 |
10-Year Note |
-0.043 |
2.797% |
World News
· The U.S. Senate narrowly passed President Joe Biden’s Inflation Reduction Act on Sunday by a margin of 51-50 (VP Harris the deciding vote), aiming to cut government deficits and consumer medical bills while boosting climate-change spending, increasing corporate income taxes, and creating a new 1% levy on stock buybacks. Plans call for the bill to soon go before the U.S. House, where Democrats have a slightly larger majority
· Taiwan said China’s military drills on Saturday appeared to be simulating an attack on its main island, as Chinese warplanes and warships crossed the strait’s median line in a continued show of force – Bloomberg
· Fed’s Bowman said this weekend the Fed should consider 75bps hikes until inflation meaningfully declines; size of the next rate increase will be decided by economic data; sees growth picking up in second half then moderating in 2023; cations that rate hikes could lead to a slowdown in job gains and potentially spark employment losses
Sector News Breakdown
Consumer
· Dollar stores mentioned positively in Barron’s saying they are a good bet for investors during tough economic times because shoppers still need to purchase some goods and these retailers have outlets that are often accessible to more Americans – said Dollar General Corp. (DG) is preferable because its sales mix skews toward essentials over discretionary purchases
· Mullen Automotive (MULN) files to sell 524.07M shares of common stock for holders
Energy
· Renewable Energy, solar names among those to watch on Monday after the Senate narrowly passed President Joe Biden’s Inflation Reduction Act, boosting climate-change spending. The bill’s projected to help cut greenhouse gas emissions by about 40% from 2005 levels by the end of the decade. It allows roughly $374 billion in climate and energy spending such as expanded tax credits for renewable energy projects
· Goldman Sachs reduces 3Q and 4Q Brent forecasts to $110/bbl and $125/bbl, respectively, down from $140/bbl and $130/bbl.
Financials
· PayPal Holdings Inc. (PYPL) mentioned positively in Barron’s saying the FinTech company could be poised for big gains as the company refocuses on financial discipline and its core businesses. PYPL is also reviewing its capital-allocation and balance-sheet plans, measures requested by activist investor Elliott Management, which recently revealed a $2 billion stake in the company.
Healthcare
· BioNTech SE (BNTX) shares slid -5% after Q2 profit and revenue that fell below expectations but affirmed its full-year COVID-19 revenue outlook; Q2 net income dropped to EUR1.67 billion ($1.70 bln), or EUR6.45 a share, from EUR10.77 a share y/y vs. est. EUR7.08; Q2 revs fell to EUR3.20 billion ($3.26 billion) from EUR5.31 billion y/y and vs. est. EUR3.88 billion
· CVS Health Corp. (CVS) is seeking to buy Signify Health Inc., (SGFY), the WSJ reported this weekend according to people familiar with the matter. Signify Health is exploring strategic alternatives including a sale, The Wall Street Journal reported last week. Others also are in the mix, they said, and CVS could face competition from others https://on.wsj.com/3BMivS4
· Karuna Therapeutics (KRTX) said Monday that a novel combination pill reduced psychosis and related symptoms experienced by patients with schizophrenia, achieving the main goals of a late-stage clinical trial.
· Kodiak Sciences (KOD) announced that it has completed enrollment in its GLOW Phase 3 clinical trial of Tarcocimab Tedromer, in patients with Non-Proliferative Diabetic Retinopathy without diabetic macular edema
· Elanco (ELAN) Q2 adj EPS $0.36 vs. est. $0.25; Q2 revs $1.18B vs. est. $1.18B; lowers 2022 adjusted EPS view to $1.06-$1.13 from $1.15-$1.21 (est. $1.14) and cuts 2022 revenue view to $4.47B-$4.55B from $4.70B-$4.76B (est. $4.69B)
· Protagonist Therapeutics (PTGX) files $300M mixed securities shelf
Industrials & Materials
· Airbus (EADSY) shares could soar 35% over the next 12 months according to Barron’s as the company boosts production amid surging demand.
· General Electric Co.’s (GE) mentioned positively in Barron’s saying impending split into three separate units marks a sad end for what was once one of America’s greatest enterprises. Still, the breakup could represent opportunities for investors, given the stock trades for far less than the combined value of its parts.
· United Parcel Service Inc. (UPS) is nearing a deal to acquire Italy’s Bomi Group, according to people familiar with the matter, as the deal, worth several hundred million dollars, could be finalized as soon as Monday https://on.wsj.com/3Q79dod
Technology, Media & Telecom
· Altair Engineering (ALTR) files for shelf of up to 2.9 mln shares of Class A common stock
Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.