Morning Preview: October 18, 2024
Early Look
Friday, October 18, 2024
Futures |
Up/Down |
% |
Last |
Dow |
9.00 |
0.02% |
43,520 |
S&P 500 |
9.50 |
0.16% |
5,896 |
Nasdaq |
75.25 |
0.37% |
20,444 |
Major U.S. stock indexes finished mixed yesterday following a very strong start, but calls for more stimulus in China after a weak GDP report and better results from NFLX have US equity futures following Asia higher. We will see US Housing Starts data this morning, but no broad inflation data to muddy the waters so perhaps it will be a less volatile day in the markets. Of course, we also will hear from multiple Fed speakers so there is a wildcard.
In Asian markets, the Nikkei Index added 0.18% to 38,981, the Shanghai Index gained 92.18 to 3,261and the Hang Seng Index jumped by 725 points to 20,804 on hopes for China stimulus. In Europe, the German DAX is higher by about 43 to 19,627 while the FTSE 100 added almost 128 points to 35,160. WTI crude futures dipped slightly back to $70.30 after holding slight gains overnight and natgas was looking flattish at $2.349. Gold futures were jumping again, adding $20, or 0.75%, to $2,727.
Market Closing Prices Yesterday
- The S&P 500 Index dipped -1.00 point, or -0.02%, to 5,841.47.
- The Dow Jones Industrial Average added 161.35 points, or 0.37%, to 43,239.05.
- The Nasdaq Composite gained 6.53 points, or 0.04%, to 18,373.61.
- The Russell 2000 Index declined -5.82 points, or -0.25% to 2,280.85.
Economic Calendar for Today
- 8:30 AM ET US Housing Starts estimated 1.35Mm, previous 1.356Mm.
- 8:30 AM ET US Housing Starts Mo/Mo estimated -0.4%, previous +9.6%.
- 8:30 AM ET US Building Permits estimated 1.46Mm, previous $1.47Mm.
- 9:30 AM ET Fed’s Bostic Speaks.
- 10:00 AM ET Fed’s Kashkari Speaks.
- 12:10 PM ET Fed’s Waller Speaks.
- 12:30 PM ET Fed’s Bostic Speaks.
- 1:00 PM ET US Baker Hughes Total Rig Count previous 586.
- 1:00 PM ET US Baker Hughes Oil Rig Count previous 481.
Earnings Calendar:
- Earnings Before the Open: AXP, SLB, ALLY, CMA, FITB, INDB, PG, RF, SFNC
Other Key Events:
- UK Retail Sales and Core Retail Sales Mo/Mo.
- Eurozone Construction Output Mo/Mo.
Macro |
Up/Down |
Last |
Nymex |
-0.39 |
70.28 |
Brent |
-0.41 |
74.04 |
Gold |
20.00 |
2,727 |
EUR/USD |
0.0013 |
1.0843 |
JPY/USD |
-0.217 |
149.94 |
10-Year Note |
+0.08 |
4.096% |
World News
- China’s GDP grew at the weakest pace since early 2023 in Q3 as the property sector continued to drag, more than offsetting better factory output and consumption results. The data supports recent calls for more stimulus.
- Hezbollah has said it will escalate its war with Israel following the death of Hamas leader Sinwar.
- A court-appointed mediator in Canada has proposed a $23.6B settlement by Phillip Morris, British American Tobacco and Japan Tobacco to end lengthy litigation.
Sector News Breakdown
Consumer
- Embraer’s (ERJ) CEO in interview states our focus is to sell current products; no plans for narrow-body aircraft as of now; says Embraer still open to partnerships w/ Boeing (BA) in the future.
- Garrett (GTX) and SinoTruk sign Letter of Intent to bring leading high-speed electrified powertrain to E-trucks.
- SOBR Safe (SOBR) shares gapped sharply higher after the nanocap stock filed a Request for Withdrawal of Registration Statement on Form S-1.
- Tesla (TSLA) Multiple sources told China Daily that Tesla Inc has yet to receive regulatory approval from Chinese authorities to launch its full self-driving or FSD functions in the country and is seeking permission to gather some data on its own to train its autonomous driving system.
Energy, Industrials and Materials
- Forward Air (FRWD) shares gapped at the end of regular trading after Freight Waves reported that they had “retained investment bankers to sell company, sources say Expedited trucking company said to be moving forward with sales process.”
- Fluor Corp (FLR) announced that their joint venture received notice to proceed on Hanford Integrated Tank disposition contract; contract has estimated ceiling of $45B over 10 years; Fluor will recognize earnings from contract in Q4 2024.
- Crown Holdings (CCK) reported Q3 results: ADJ EPS $1.99 vs. EST $1.80 on net sales $3.074B vs. EST $3.064B. Guides FY adj EPS $6.25-6.35 vs prior $6.00-6.25 and est $6.15; sees adj FCF still at least $750Mm with no more than $450Mm CAPEX.
- Schlumberger (SLB) SLB enters definitive agreement to sell its interests in the Palliser Block
Financials
- Bank OZK (OZK) reported last night: Q3 EPS $1.55 vs est $1.54 on NII $389.398M vs est $393.42M.
- OceanFirst Finl (OCFC) reported last night: Q3 adj EPS $0.39 vs est $0.38 on NII $82.2Mm vs est $83.16Mm; ROAA 0.71%, ROAE $5.68%, NIM 2.67%
- F.N.B. Corp (FNB) released earnings last night: Q3 adj EPS $0.34 vs est $0.35 on NII $323.329M vs est $321M.
- Western Alliance Bancorp (WAL) reported last night: Q3 EPS $1.80 vs est $1.89 on NII $696.9M vs est $692.56M; NIM 3.61%.
- Sam Altman’s Worldcoin rebrands to ‘World,’ unveils iris-scanning Orb.
- New York Community Bank (NYCB) announced it will lay off 700 employees, which accounts for 8% of its workforce, at its subsidiary Flagstar Bank. This move is part of a broader initiative to strengthen its financial foundation and improve competitiveness.
- Berkshire Hathaway (BRK.A) reports that it sold 8.7M share of Bank of America (BAC) in a Form 4 filing.
Healthcare
- Humacyte (HUMA) shares sold off sharply in the final ½ hour of trading after FDA discloses summary of violations at Humacyte’s Durham, NC facility.
- Intuitive Surgical (ISRG) reports Q3 adj EPS $1.84 vs est $1.63 on revs $2.038B vs est $2.001B last night.
- Aura Biosciences Inc. (AURA) shares initiated soared in the afterhours following an announcement that “Multiple Clinical Complete Responses Demonstrated Following Single Low Dose Administration of Bel-sar in Patients with Non-Muscle-Invasive Bladder Cancer (NMIBC) in Ongoing Phase 1 Trial.”
- Supernus (SUPN) announced promising data from open-label phase 2a study of spn-820 in adults with major depressive disorder; Phase 2A study shows rapid decrease in depressive symptoms; SPN-820 well-tolerated with few adverse events. Shares were volatile to the upside in post-market trading.
- Tenaya Therapeutics (TNYA) announced updates on TN-201 gene therapy program for MYBPC3-associated HCM; independent data safety and monitoring board endorsed dose escalation and broadening of eligibility criteria; Cohort 2 now enrolling; initial data from Cohort 1 to be reported in December 2024; highlights recently presented insights on pediatric MYBPC3-associated HCM.
- Bausch Health (BHC) rejects bondholders’ debt proposals, explores sale of vision care unit. — WSJ
- Merck (MRK) reports ‘positive’ results from Phase 2b/3 trial of clesrovimab.
- CVS Health (CVS) is naming longtime executive David Joyner as its new chief, succeeding Karen Lynch at the helm of the struggling healthcare giant. WSJ
Technology, Media & Telecom
- Netflix (NFLX) reported last night: Q3 EPS $5.40 vs est $5.12 on revs $9.825B vs est $9.769B; global paid net adds 5.07Mm; sees Q4 revs $10.13B vs est $10.042B and EPS $4.23 vs est $3.91; says increased prices in some countries in EMEA and Japan, to raise prices in Spain and Italy tomorrow. Shares were higher by over 4% in after-hours trading.
- NVIDIA Corp (NVDA) is reiterated as a Buy at BofA, and price target raised to $190 from $165 in an after-hours note.
- Intel (INTC) is looking to sell at least a minority stake in its Altera unit in a transaction that would raise several billion dollars in cash for the struggling chipmaker, according to people familiar with the matter. Intel is looking for a deal that values Altera at around $17 billion, said the people, who requested anonymity to speak freely about confidential information. Intel purchased Altera for $16.7 billion in 2015 per CNBC.
- Amazon (AMZN) Amazon’s cloud boss Matt Garman told employees in an all-hands meeting that if they don’t agree with its new five-day in-office mandate, they could leave for another company per CNBC.
- ASML Hldg (ASML) Taiwan Semiconductor (TSM) are the subject of an overnight post from respected tech analyst Ming-Chi Kuo: Market rumors suggest that ASML plans to raise equipment prices for TSMC. However, my understanding is that TSMC is likely to push for price reductions from ASML.
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.