Early Look
Tuesday, August 27, 2024
|
Futures |
Up/Down |
% |
Last |
|
Dow |
-42.00 |
0.10% |
41,293 |
|
S&P 500 |
-4.25 |
0.07% |
5,633 |
|
Nasdaq |
-6.50 |
0.03% |
19,585 |
U.S. futures are looking flat after finishing mixed on Monday, as the S&P 500 finished lower led by weakness in mega cap tech names like Nvidia (NVDA), dipping ahead of its quarterly report on Wednesday afternoon, while investors awaited inflation data on Friday (core PCE) for clues about the path of interest-rate cuts by the Federal Reserve. The Nasdaq also declined, but the Dow Jones Industrial Average was supported by gains in industrials and financials, hitting intraday record highs before closing just slightly up. Copper prices are higher, rising to their highest in nearly six weeks after touching $9,418 for the highest level since July 18 on rising expectations of an imminent interest rate cut in the United States, a weaker dollar and signs of improving demand in top consumer China. Middle East developments remained fluid and continued to prop up the US dollar, crude oil, and gold prices. Japan’s slower-than-expected July producer services inflation nudged yen lower. In Asian markets, The Nikkei Index gained 178 points to 38,288, the Shanghai Index fell -6 points to 2,848, and the Hang Seng Index climbed 75 points to 17,874. In Europe, the German DAX is higher by 31 points to 18,648, while the FTSE 100 is up 15 points to 8,343. In currency markets, the British Pound extends gains vs. the U.S. dollar to its highest since March 2022 as options show traders see upside risks for sterling into the September central bank meetings. The Japanese yen is the weakest, falling 0.2% to around 144.8 per dollar.
Market Closing Prices Yesterday
- The S&P 500 Index dropped -17.77 points, or 0.32%, to 5,616.84.
- The Dow Jones Industrial Average rose 65.44 points, or 0.16%, to 41,240.52.
- The Nasdaq Composite dropped -152.03 points, or 0.85%, to 17,725.77.
- The Russell 2000 Index slipped -0.78 points, or 0.04% to 2,217.92.
Economic Calendar for Today
- 7:45 AM ET ICSC Weekly Retail Sales
- 8:55 AM ET Johnson/Redbook Weekly Sales
- 9:00 AM ET Monthly Home Prices Index M/M for June
- 9:00 AM ET CaseShiller 20-city M/M for June…est. +0.3%
- 10:00 AM ET Consumer Confidence for August…est. 100.7
- 10:00 AM ET Richmond Fed Index for August…prior -17
- 1:00 PM ET US Treasury to sell $69B in 2-year notes
- 4:30 PM ET API Weekly Inventory Data
Earnings Calendar:
- Earnings Before the Open: BMO BNS CTRN HAIN REX SCSC
- Earnings After the Close: AMBA AMWD BOX JWN NCNO OOMA PVH S SMTC WALD
Other Key Events:
- Jefferies Semiconductor, IT Hardware & Communication Technology Summit, 8/27-8/28, in Chicago, IL
|
Macro |
Up/Down |
Last |
|
Nymex |
-0.50 |
76.92 |
|
Brent |
-0.45 |
80.98 |
|
Gold |
-9.90 |
2,545.30 |
|
EUR/USD |
0.0005 |
1.1166 |
|
JPY/USD |
0.26 |
144.78 |
|
10-Year Note |
+0.03 |
3.848% |
World News
- China’s total industrial profits rose by 4.1% in July from a year earlier, compared with 3.6% in the previous month, led mainly by foreign and private enterprises. In the first seven months, total profits at state-owned enterprise increased by just 1%, while rising by 9.9% and 7.3% respectively at foreign and private enterprises.
Sector News Breakdown
Consumer
- The National Football League Players Association sued DraftKings (DKNG) in New York federal court on Monday, accusing the sports-betting giant of refusing to pay what it owes for using NFL player likenesses on non-fungible tokens.
- ChargePoint Holdings (CHPT) said it has partnered with Daimler Buses to integrate its telematics and charge management systems with Mercedes-Benz and Setra brand buses.
- Hershey (HSY) was downgraded to Sell from Neutral at Citigroup, which said volume weakness and cocoa inflation presented looming downside risk.
- Leslie’s (LESL) announced the appointment of Jason McDonell as CEO, effective September 9, replacing Michael Egeck who has departed the company and resigned from his board seat; LESL backs FY 24 EPS and rev outlook.
Energy, Industrials and Materials
- American Woodmark (AMWD) Q1 adj EPS $1.89 below consensus $2.40; Q1 revenue $459.1M vs. consensus $476.6M; sees FY low single-digit decline in net sales year-over-year and sees FY adj ebitda in the range of $225M-$245M.
- Avista Corp (AVA) CEO Dennis Vermillion announced to the company’s board of directors that he will retire from the company in the first quarter of 2025. Vermillion will transition his duties as CEO to Avista President and COO Heather Rosentrater.
- Heico (HEI) Q3 EPS $0.97 vs. est. $0.92; Q3 revs $992.2M vs. consensus $994.78M; results reflect outstanding 15% organic net sales growth in the Flight Support Group principally arising from increased demand across all its product lines and increased demand for the Electronic Technology Group’s defense, space and aerospace products.
- Linde (LIN) said it would invest more than $2 billion to build a clean hydrogen facility for supplying to Dow’s (DOW) Path2Zero production complex in Alberta, Canada.
Financials
- Bank of Montreal (BMO) Q3 adj EPS C$2.64 vs. est. C$2.75; Q3 provision for credit losses C$906M vs. est. C$745.2M; Overall revenue for the period increased to C$8.19 billion from C$8.05 billion last year; Net interest income for the period was 2.3% lower at C$4.79 billion, just ahead of the C$4.74 billion expected.
- Bank of Nova Scotia (BNS) Q3 adj EPS C$1.63, vs. est. C$1.62; Q3 provision for credit losses C$1.05B, +28% y/y; Q3 revenue C$8.36B, vs. est. C$8.52B
Healthcare
- Eli Lilly and Company (LLY) announced Zepbound (tirzepatide) 2.5 mg and 5 mg single-dose vials are available for self-pay for patients with an on-label prescription, significantly expanding the supply of Zepbound in response to high demand.
- Insulet Corporation (PODD) announced its groundbreaking Omnipod 5 Automated Insulin Delivery System (Omnipod 5) is now indicated for use by people with type 2 diabetes (ages 18 years and older) in the U.S., making it the first and only AID system FDA-cleared for both type 1 and type 2 diabetes management.
- Merck (MRK) announces phase 3 trial initiation for Bomedemstat, an investigational candidate for the treatment of certain patients with essential thrombocythemia.
- Roche Holding (RHHBY) said that the European Commission has approved PiaSky following a Phase III study which showed that PiaSky achieved disease control for a rare blood disorder known as paroxysmal nocturnal haemoglobinuria and was well tolerated when administered every four weeks via subcutaneous injection.
- Trinity Biotech Plc (TRIB) announced that it has received substantial additional orders for TrinScreen HIV. As a result of this strong demand and the successful scaling of production capacity, the Company is now increasing its expected 2024 sales revenue for TrinScreen HIV to approximately $10M, up from $8M previously.
Technology, Media & Telecom
- Apple Inc. (AAPL) said CFO Luca Maestri will transition from his role on January 1, 2025. Maestri will continue to lead the Corporate Services teams, including information systems and technology, information security, and real estate and development, reporting to Apple CEO Tim Cook. As part of a planned succession, Kevan Parekh, Apple’s Vice President of Financial Planning and Analysis, will become Chief Financial Officer and join the executive team.
- Criteo S.A. (CRTO) announced that CEO Megan Clarken has informed the Board of Directors of her intention to retire within the next 12 months. Clarken will continue to serve as CEO until her successor is named, at which time she will also step down from the Board. Clarken has also agreed to remain with Criteo in a senior advisor role.
- Trip.com (TCOM) Q2 adj EPS $1.00 vs. est. $0.74; Q2 revs $1.8B vs. consensus $1.79B; said looking ahead, dedicated to leveraging potential of AI to revolutionize the travel industry.
- JD.com (JD) announces $5.0 Billion new share repurchase program
- Western Digital Corp (WDC) files for mixed shelf; size not disclosed.
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.