Early Look

Monday, August 19, 2024

U.S. futures are flat overnight, with the S&P (Spuz) holding last weeks gains, trading at 5,577 ahead of a quiet day of economic data and earnings as markets await the start of the Jackson Hole Fed Symposium this week. The S&P 500 Index capped its best weekly performance since November on Friday, ending with a +3.9% advance for the week, closing at 5,554.25, led higher by technology, consumer discretionary, and financials while the Dow Jones Industrial climbed 2.9% and the Nasdaq climbed 5.3%, led by a 9% jump in semiconductors (SOX). The S&P 500 and Nasdaq each settled Friday with 6-day winning streaks. A key focus this week will be Jackson Hole Wyoming, where the Federal Reserve hosts its annual symposium, highlighted Friday, when Fed Chair Jerome Powell speaks about the economic outlook in a keynote address at 10:00 AM ET. The event will also see speeches by other major global policymakers including BoE Governor Bailey, who is also speaking on Friday. Also, this week, the Democratic National Convention in Chicago, Illinois starts tonight. In Asian markets, The Nikkei Index declined -674 points to 37,388, the Shanghai Index rose 14 points to 2,893, and the Hang Seng Index rose 139 points to 17,569. In Europe, the German DAX is up 25 points to 18,347, while the FTSE 100 is down -8 points to 8,303. Japanese markets slip as the yen strengthened by 0.85% to 146.36. The VIX rose 6% this morning to 15.70 after tumbling from highs of 65 earlier this month as recession fears have eased.

• The Dow Jones Industrial Average rose 110.97 points, or 0.24%, to 40,659.76.
• The Nasdaq Composite gained 37.22 points, or 0.21%, to 17,631.72.
• The Russell 2000 Index advanced 6.45 points, or 0.30% to 2,141.92.

• Earnings After the Close: AGAE BTBT DBGI DDD FLXS MICS PANW

• D.R. Horton (DHI) mentioned positively in Barron’ saying it is the home builder stock to buy now as shares look attractive. Article notes D.R. Horton stock isn’t a bet on housing statistics one way or the other. It’s a bet on a company, one that has historically paid off handsomely for investors, with shares returning about 25% annually over the past 10 years.
• Dutch Bros (BROS), Shake Shack (SHAK), and Sweetgreen (SG) downgraded to Neutral from Overweight at Piper Sandler.
• The Estée Lauder Companies’ (EL) President & CEO Fabrizio Freda announces intention to retire at the end of fiscal year 2025; the board of directors is well advanced in CEO succession process; Q4 adj EPS $0.64 vs. est. $0.26 while sales rose 6.8% y/y to $3.87B vs. est. $3.81B; Asia Pacific net sales $1.21B, -7.5% y/y; forecasts continued soft consumer sentiment in China in 2025; forecasts 2025 organic net sales -1% to +2%.

• North American shippers such as fertilizer supplier Nutrien (NTR) and U.S. logistics firm C.H. Robinson (CHRW) are bracing for simultaneous stoppages at the Canadian operations of Canadian National Railway (CNI) and Canadian Pacific Kansas City (CP) that could cost the nation’s economy billions of dollars. A strike or lockout could start on Thursday.

• Medtronic (MDT) mentioned positively in Barron’s noting shares are down slightly this year as investors express concerns that weight-loss drugs may reduce demand for some Medtronic’s diabetes and cardiovascular products, as well as equipment the company makes for bariatric weight loss surgical procedures for obese patients. The article notes shares could also get a boost from using generative AI to develop even more effective treatments and equipment.
• Rocket Pharmaceuticals (RCKT) files mixed-securities shelf.

• HP Inc. (HPQ) downgraded to Equal Weight from Overweight at Morgan Stanley.
• Xperi (XPER) shares jumped late Friday after the co agreed to sell substantially all the assets and certain liabilities of its majority owned Perceive unit to Amazon.com (AMZN) for $80M in cash.