Early Look

Tuesday, October 1, 2024

U.S. stock futures looking flat to mixed with the tech heavy Nasdaq edging higher overnight, Dow futures looking lower behind Boeing (BA) weakness, and S&P futures (Spuz) flat around 5,815. Stocks surged late Monday to close around the highs, ending September with its 5^th straight monthly gain and now rising 10 of the last 11 months heading into the final quarter of 2024. For the month (since August 30), the S&P 500 gained 2.01%, the Nasdaq climbed 2.69%, and the Dow climbed 1.85%. For the quarter (since June 28), the S&P 500 gained 5.53%, the Nasdaq climbed 2.58%, and the Dow climbed 8.21% in what has been a massive extended rally as the Fed followed through with aggressive rate cuts 2-weeks ago and remain on track for more this year and next! September also marks the 5th consecutive all-time high monthly close for the S&P 500. Oil prices slumped 17% in Q3 despite increased Middle East conflicts with Israel and Hamas. In Asian markets, The Nikkei Index jumped 732 points to 38,651, the Shanghai Index was closed for the start of its Golden Week holiday (rose over 8% the day before), and the Hang Seng Index was also closed for holiday. In Europe, the German DAX is up 53 points to 19,378, while the FTSE 100 rises 27 points to 8,264. The highlight later tonight is the Vice President debate between JD Vance and Tim Walz. A strike by dockworkers at 36 ports from Maine to Texas, the first in decades, began last night at Midnight and could impact supply chains and lead to shortages and higher prices if it stretches on for more than a few weeks. Workers began walking picket lines in a strike over wages and automation even though progress had been reported in contract talks. The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight.

• The Dow Jones Industrial Average rose 17.15 points, or 0.04%, to 42,330.15.
• The Nasdaq Composite jumped 69.58 points, or 0.38%, to 18,189.17.
• The Russell 2000 Index advanced 4.62 points, or 0.21% to 2,229.06

• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 9:45 AM ET S&P Global Manufacturing PMI, Sept-F…prior 47.0
• 10:00 AM ET                Construction Spending M/M for August…est. +0.1%
• 10:00 AM ET ISM Manufacturing PMI for September…est. 47.5
• 10:00 AM ET                JOLTs Job Openings for August…est. 7.655M (prior 7.673M)
• 10:30 AM ET                Dallas Fed Services for September…prior 8.7
• 11:00 AM ET                Fed’s Bostic Gives Opening Remarks
• 11:10 AM ET                Fed’s Bostic Moderates Conversation with Lisa Cook
• 4:30 PM ET API Weekly Inventory Data
• 6:15 PM ET                   Fed’s Bostic, Barkin, Collins on Moderated Panel

• Earnings After the Close: CALM LW NKE RGP

• McCormick (MKC) Q3 adj EPS $0.83 vs. est. $0.67 and revs $1.68B tops consensus $1.67B; raises FY24 adjusted EPS view to $2.85-$2.90 from $2.80-$2.85 (est. $2.86) and boosts FY24 revenue view to down 1% to up 1% from down 2% to flat; the co said outlook reflects commitment to strengthen volume trends and prioritize investments to drive profitable results and return to differentiated volume-led growth as the year progresses.
• PepsiCo (PEP) is in advanced talks to buy tortilla-chip maker Siete Foods for over $1B, The Wall Street Journal reported citing people familiar with the matter. The company had also drawn takeover interest from private-equity firms and other food companies in a competitive bidding process, the report stated.
• In Casinos (WYNN, MGM, LVS, MLCO): Macau’s gaming revenue rose 15.5% y/y in September, as casinos gear up for one of China’s biggest holidays. Gross gaming revenue (GGR) reached 17.25 billion patacas ($2.2 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Tuesday. The result is compared to the analyst estimate of a 14.2% increase and has returned to 78% of the pre-pandemic level seen in 2019 – Bloomberg.
• U.S.-listed shares of Chinese EV’s rise after monthly delivery data: XPENG’s (XPEV) smart EV deliveries set new monthly record of 21,352 units, up 39% Y/y and 52% M/m and its EV XPENG MONA M03’s first month deliveries exceeded 10,000 units; expects to unveil XPENG P7+, positioned as AI-defined car, this month. LI Auto (LI) announces it delivered 53,709 vehicles, up 48.9% Y/Y and Nio (NIO) reports 21,181 vehicle deliveries, up 35.4%; announces partnership with UK startup Monolith for real-time AI EV battery testing

• Boeing (BA) weighs raising at least $10 billion selling stock, Bloomberg reported as the planemaker is on cusp of seeing credit rating cut to junk; Boeing working with advisers on possible infusion after strike.
• General Dynamics (GD) downgraded to Equal Weight from Overweight at Wells Fargo.
• ZIM Integrated Shipping (ZIM) shares fall after dockworkers walked out of every major port on the US East and Gulf coasts, marking the beginning of a strike.
• Chicago corn futures declined after reaching a three-month high in the previous session when a U.S. government estimate of corn stockpiles fell short of trade expectations, triggering a rush of short covering. Soybean and wheat futures also fell. The most active corn contract was down 0.3% at $4.23-1/2 a bushel by 1008 GMT, after climbing to $4.28 on Monday for its highest since June 27.

• BGC Group (BGCP) updates its Q3 outlook saying they now expect to be around high-end of its previously stated outlook ranges for revenue and pre-tax adjusted earnings for Q3 2024.

• IGM Biosciences (IGMS) shares fell after its chief executive, scientific and medical officers stepped down amid a pivot to focus exclusively on autoimmunity.
• Shattuck Labs (STTK) announced a strategic pipeline prioritization to include the discontinuation of its clinical program, SL-172154. The company will turn its focus to SL-325, its DR3 antagonist antibody, and plans initial clinical development in patients with IBD, where TL1A/DR3 blocking antibodies have demonstrated compelling monotherapy efficacy.