Early Look
Tuesday, August 20, 2024
|
Futures |
Up/Down |
% |
Last |
|
Dow |
-2.00 |
0.01% |
41,018 |
|
S&P 500 |
5.25 |
0.10% |
5,635 |
|
Nasdaq |
28.50 |
0.14% |
19,886 |
U.S. futures are holding steady after yesterday’s stock market rally, as investors continue to wait for this week’s key catalysts, the Jackson Hole Symposium, with Fed Chairman Powell speaking Friday discussing rates and the economy. After yesterday’s market melt up, the S&P (SPY) finished with an 8th straight day of gains (closing at the highs) and now 10 straight days of higher lows for the S&P 500 (SPX), in an incredible bounce off the August 5th lows. The Nasdaq Composite also made it an 8th straight day of gains as investors continue to buy any/and all market dips, as the early aggressive August pullback on recession fears has been completely erased, with major averages not far off record highs. Shares of tech stocks get another boost overnight behind better earnings results from cyber company PANW. In Asian markets, The Nikkei Index jumped 674 points to 38,062, the Shanghai Index fell -27 points to 2,866, and the Hang Seng Index fell -58 points to 17,511. In Europe, the German DAX is down -20 points to 18,400, while the FTSE 100 is down -58 points to 8,298. Bitcoin prices resume upward momentum rising 2.75% to $60,735. In Sweden, their central bank cuts rates (as expected) for a second straight meeting).
Market Closing Prices Yesterday
- The S&P 500 Index gained 54.00 points, or 0.97%, to 5,608.25.
- The Dow Jones Industrial Average rose 236.77 points, or 0.58%, to 40,896.53.
- The Nasdaq Composite surged 245.05 points, or 1.39%, to 17,876.77.
- The Russell 2000 Index advanced 25.58 points, or 1.19% to 2,167.50.
Economic Calendar for Today
- 7:45 AM ET ICSC Weekly Retail Sales
- 8:55 AM ET Johnson/Redbook Weekly Sales
- 4:30 PM ET API Weekly Inventory Data
Earnings Calendar:
- Earnings Before the Open: AS CASI FUTU LOW MDT PINC VIPS WKHS XPEV
- Earnings After the Close: ADN COTY JBSS JKHY LEYS LZB SOL TOL
Other Key Events:
- Democratic National Convention, 8/19-8/22, in Chicago, IL
|
Macro |
Up/Down |
Last |
|
Nymex |
0.00 |
74.37 |
|
Brent |
0.01 |
77.67 |
|
Gold |
19.90 |
2,561.20 |
|
EUR/USD |
-0.001 |
1.1076 |
|
JPY/USD |
-0.20 |
146.37 |
|
10-Year Note |
+0.006 |
3.873% |
World News
- Sweden’s central bank lowered its key interest rate to 3.50% from 3.75% as expected and said it could speed up policy easing if price pressures do not pick up, holding out the possibility of up to three more cuts before year end.
Sector News Breakdown
Consumer
- Lowe’s (LOW) cuts its full-year guidance to $11.70-$11.90 from $12.00-$12.30 (est. $12.14) and lowers its FY24 revenue view to $82.7B-$83.2B from $84B-$85B (est. $84.15B) and FY24 comparable sales view to down 3.5%-4% from down 2%-3% saying the frozen housing market keeps consumers on the sidelines with big purchases and renovations; reported Q2 adjusted EPS $4.10 vs. consensus $3.97 and revs $23.59B vs. est. $23.9B; Q2 comp sales decreased (-5.1%).
- Alaska Air (ALK) and Hawaiian Airlines (HA) cleared a major milestone to combine companies after the Justice Department opted against challenging the deal on antitrust grounds, The Wall Street Journal reported. The airlines argue the combination would connect Hawaii to more destinations and give Alaska a platform for international expansion. https://tinyurl.com/7b2atvy2
- Food companies such as Kroger (KR), Albertsons (ACI), Campbells (CPB) Kraft Heinz (KHC), and Mondelez (MDLZ) are rebutting against claims it is ripping off U.S. consumers after Democratic presidential nominee Vice President Kamala Harris called for a federal ban on “price gouging,” the WSJ reported.
- Monster Beverage (MNST) board authorizes a new $500M share repurchase program.
- XPeng (XPEV) Q2 EPS loss (-$0.19) vs. est. loss (-$0.18); Q2 revs rose 60.2% y/y to $1.12B (or 8.111B yuan) vs. consensus $1.14B; total deliveries of vehicles were 30,207 in Q2, representing an increase of 30.2% y/y; sees deliveries of Q3 vehicles to be between 41,000 and 45,000, representing a year-over-year increase of approximately 2.5% to 12.5%; sees Q3 revs between 9.1 bln yuan and 9.8 bln yuan vs estimates of 10.4 bln yuan.
Energy, Industrials and Materials
- Oil prices remain under pressure after tumbling over 2% on Monday as hopes of a ceasefire in the Middle East have been keeping a lid on prices, after U.S. Secretary of State Blinken confirmed that Israel’s Prime Minister Netanyahu accepted a proposal to address the disagreements that have been standing in the way of a deal.
- Boeing (BA) shares slipped overnight after reports the company stopped test flights on 777-9 as it awaits certification after component between engine and airplane structure failed to perform during maintenance check; FAA says some 787 Dreamliners would require inspections.
Financials
- Chinese online brokerage Futu Holdings (FUTU) will look to develop its own overnight trading system for US stocks, founder and Chief Executive Officer Leaf Li told Bloomberg; separately, reported Q2 Total revenue HK$3.13B, +26% y/y vs. consensus of HK$2.86B.
Healthcare
- AstraZeneca’s (AZN) Fasenra has been approved in China by the country’s National Medical Products Association, or NMPA, for the maintenance treatment of patients 12 years of age and older with severe eosinophilic asthma, or SEA.
- BioMarin (BMRN) upgraded to Outperform from Market Perform at Bernstein and raised tgt to $110 from $94, ahead of the September 4 investor day.
- Kymera Therapeutics (KYMR) sold 5.5M shares, or $225M Spot Secondary (boosted from $200M) re-offered at $40.75.
- Premier (PINC) Q2 adj EPS $0.69 vs. est. $0.49; Q2 revs $350.27M vs. est. $313.21M; sees FY25 adjusted EPS $1.16-$1.28 vs. consensus $2.22 and sees FY25 revenue $930M-$1.02B vs. consensus $1.26B.
Technology, Media & Telecom
- Palo Alto Networks (PANW) Q4 adj EPS $1.51 tops consensus $1.41 and revs rose 12% y/y to $2.19B above est. $2.16B; Q1 product revs fell -5.3% y/y to $480.5M below consensus; raises guidance as forecasts Q1 revs $2.1-$2.13B vs. est. $2.11B and sees Q1 adj EPS $1.47-$1.49 above est. $1.43; forecasts 2025 adj EPS $6.18-$6.31 vs. est. $6.22 and guides 2025 revenue $9.10B-$9.15B as mid-point above est. $9.11B; authorizes additional $500 million for share repurchases.
- Fabrinet (FN) Q4 adj EPS $2.41 vs. est. $2.25; Q1 revs rise 15% y/y to $753.3M vs. est. $733M; guides Q1 adj EPS $2.33-$2.40 vs. est. $2.25 and guides Q1 revenue $760M-$780M vs. est. $748.7M.
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.