Early Look

Tuesday, July 11, 2023

Futures	Up/Down	%	Last
Dow	8.00	0.02%	34,154
S&P 500	4.25	0.10%	4,448
Nasdaq	23.50	0.16%	15,210

 

 

A quiet trading session overnight for US futures, edging slightly higher this morning after major averages snapped losing streaks on Monday ahead of a busy week of data. Asian markets were modestly higher and Europe mixed. U.S. stocks finished higher on Monday as investors look ahead to inflation data and corporate earnings later in the week. The Dow Jones Industrial Average snapped a four-day losing streak, while the S&P 500 index snapped its 3-day losing streak. Market participants are awaiting key data on U.S. consumer prices due on Wednesday morning (CPI) for more clarity on whether there has been a considerable slowdown in inflation. In Asian markets, The Nikkei Index rose 13 points to 32,203, the Shanghai Index gained 17 points to 3,221, and the Hang Seng Index jumped 180 points to 18,659. In Europe, the German DAX is up 45 points to 15,718, while the FTSE 100 id down -15 points to 7,257.

 

Market Closing Prices Yesterday

·     The S&P 500 Index climbed 10.58 points, or 0.24%, to 4,409.53.

·     The Dow Jones Industrial Average rose 209.52 points, or 0.62%, to 33,944.40.

·     The Nasdaq Composite gained 24.77 points, or 0.18%, to 13,685.48.

·     The Russell 2000 Index advanced 30.59 points, or 1.64% to 1,895.25.

 

Economic Calendar for Today

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

·     7:45 AM ET           ICSC Weekly Retail Sales

·     8:55 AM ET           Johnson/Redbook Weekly Sales

·     1:00 PM ET           US Treasury to sell $40B in 3-year notes.

·     4:30 PM ET           API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: ANGO BYRN

·     Earnings After the Close: MLKN OPTT PCYO

 

Other Key Events:

·     Bank America FinTech Trailblazers Conference, 7/11 in New York

·     JMP Securities Technology Forum, 7/11 in CA

·     SEMICON West 2023, 7/11-7/13

 

 

Macro	Up/Down	Last
Nymex	0.29	73.28
Brent	0.30	77.99
Gold	11.40	1,942.40
EUR/USD	0.0011	1.101
JPY/USD	-1.04	140.27
10-Year Note	-0.044	3.962%

 

 

World News

·     The PBoC extended two of 16 property support measures to end-2024, requiring commercial banks to firstly extend the existing loans to help ensure completion of construction projects and secondly maintain the current risk classification of these existing loans to the property developers.

·     German ZEW Economic Sentiment Index in Germany decreased to -14.70 points in July from -8.5 in June and was below consensus estimate of -10.5.

·     US June Small Business Optimism rises to 91.0; vs. Est. 89.9 to its highest since November; Net percentage of firms expecting a better economy rises to -40%; net percentage of firms anticipating higher selling prices falls to 29%, lowest since March 2021.

 

Sector News Breakdown

Consumer

·     Toyota (TM) downgraded to Equal Weight from Overweight at Morgan Stanley.

·     PriceSmart (PSMT) Q3 EPS $0.94c vs. est. $0.41; Q3 revs rose 6.4% y/y to $1.10B, in-line with consensus; announces $75M share repurchase program; Q3 net warehouse club sales rose 7.1% y/y to $1.07B; had 51 Warehouse Clubs in operation as of May 31, 2023, vs. 50 y/y.

·     Uber Technologies (UBER) Chief Financial Officer Nelson Chai is planning to leave the ride-hailing company, Bloomberg News reported on Monday, citing people familiar with the matter.

 

Energy, Industrials and Materials

·     3M (MMM) upgraded to Neutral from Underperform at bank America as sees several n-t positive catalysts for 3M, including the recently announced $10.5B-$12.5B settlement to resolve PFAS drinking water claims that came in below buyside and legal experts’ expectations.

·     Dominion Energy (D) said it has concluded a robust and competitive sale process and executed a definitive agreement to sell its 50% noncontrolling limited partner interest in Cove Point LNG, LP, to Berkshire Hathaway Energy, which currently operates the facility and owns a 100% general partner and 25% limited partner interest.

·     Nutrien (NTR) announces potash production curtailments due to port of Vancouver strike; says expects full-year 2023 potash adjusted EBITDA will fall below bottom end of its previous guidance range; said prolonged disruption at port of Vancouver could also impact production at our other potash mines in Saskatchewan.

·     WD-40 (WDFC) Q3 EPS $1.38 vs. est. $1.22; Q3 gross margins 50.6%; Q3 revs $141.7M vs. est. $138.42M; reaffirms FY23 EPS view of $4.80-$5.00 and revenue view of $535M-$600M; approves new 50M share buyback plan to replace expiring plan.

 

Financials

·     JP Morgan (JPM) upgraded to Buy from Hold at Jefferies and raise tgt to $165 from $149 as believes investor focus on capital build has distracted attention away from what is among the highest quality franchises.

·     U.S. Bancorp (USB) upgraded to Buy from Neutral at Bank America and raise tgt to $40 from $38.

·     KKR (KKR) explores options for NVC China including sale – Bloomberg News reports.

 

Healthcare

·     Iovance Biotherapeutics Inc (IOVA) announced a 20 mln share offering priced at $7.50, 14.7% discount to last sale of $8.79.

·     Prothena Corporation (PRTA) said Bristol Myers Squibb (BMY) exercised its option under the global neuroscience research and development collaboration to obtain the exclusive worldwide commercial rights for PRX005 and will pay Prothena $55 million.

·     Rockwell Medical (RMTI) acquires hemodialysis concentrates business from Evoqua Water; raises FY23 outlook.

·     Viridian Therapeutics Inc. (VRDN) reported preliminary data from an ongoing trial of its eye disease drug on Monday, sending shares lower.

 

Technology, Media & Telecom

·     CalAmp (CAMP) Q1 EPS loss (-$0.11) vs. est. $0.04; Q1 revs $70.9M vs. est. $75.9M; guides Q2 revenue $67M-$73M, below consensus $77.14M and sees Q2 adjusted EBITDA $5M-$9M; shares rally after company said in the past weeks, they have received unsolicited inbound inquiries, as a result the Board has formed a special committee to help us explore all strategic alternatives.

·     E2Open parent (ETWO) Q1 EPS $0.05 in-line with consensus on revs $160.1M vs. est. $160.6M; Q1 adj Ebitda $53.8M; subs rev $134.9M; guides FY24 revs to range of $655M-$670M, reflecting a 1.6% organic growth rate at the mid-point.

·     VOXX International (VOXX) Q1 EPS loss (-$0.45) vs. est. loss (-$0.22); Q1 revs $111.9M vs. est. $122.34M (and down from $128.7M last year); said anticipate continued global softness & in process of realigning operations/reducing workforce.