Early Look

Tuesday, August 29, 2023

Futures	Up/Down	%	Last
Dow	10.00	0.03%	34,604
S&P 500	2.25	0.06%	4,445
Nasdaq	10.50	0.07%	15,103

 

 

US equity futures struggled for direction overnight as traders awaited a raft of economic data the next few days, including the monthly jobs figures (tomorrow and Friday) and clues on the outlook for global central bank policies. S&P 500 futures and Nasdaq 100 edging higher after China signaled further measures to support its economy. In Asian markets, Chinese stocks advanced for a second day after Beijing ushered in stimulus measures boosting capital markets. The Chinese government over the weekend said it would halve stamp duty on securities transactions to 0.05% from 0.1%. The Nikkei Index rose 56 points to 32,226, the Shanghai Index rose 37 points to 3,135, and the Hang Seng Index jumped 353 points to 18,484. European stocks rise a second day, following gains in Asia as the German DAX is up 90 points to 15,883, while the FTSE 100 rises 118 points to 7,456. Hurricane Idalia is set to intensify into an “extremely dangerous” major storm, bringing strong winds and floods, as it barrels north toward Florida’s Gulf Coast, set to make landfall on Wednesday in Western Florida.

 

Market Closing Prices Yesterday

·     The S&P 500 Index gained 27.60 points, or 0.63%, to 4,433.31.

·     The Dow Jones Industrial Average rose 213.08 points, or 0.62%, to 34,559.98.

·     The Nasdaq Composite surged 114.48 points, or 0.84%, to 13,705.13.

·     The Russell 2000 Index advanced 15.38 points, or 0.71% to 1,869.01.

 

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 Price Index for June

·     9:00 AM ET                  CaseShiller 20-city M/M for June

·     10:00 AM ET                Consumer Confidence for August

·     10:00 AM ET                JOLTs Job Openings for July

·     1:00 PM ET                   US Treasury to sell $35B in 7-year notes.

·     4:30 PM ET                   API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: AMWD BBY BIG CHS CTLT DCI MBUU SCVL SJM

·     Earnings After the Close: AMBA BOX HPE HPQ NCNO PVH

 

Other Key Events:

·     Piper 2023 Texas Bank Tour, 8/28-8/30, in Dallas, TX

·     Stephens Restaurant Investor Field Trip, 8/28-8/30

·     Stifel Tech Executive Summit Deer Valley, 8/28-8/30, in Utah

·     William Blair West Coast Med Tech & Life Sciences Field Trip, 8/28-8/31 in San Diego

 

 

Macro	Up/Down	Last
Nymex	0.59	80.69
Brent	0.64	85.06
Gold	1.80	1,948.60
EUR/USD	-0.0009	1.0810
JPY/USD	0.13	146.67
10-Year Note	-0.004	4.208%

 

 

World News

·     German consumer sentiment is expected to fall in September, due to declining income expectations as the institute’s consumer sentiment index fell to -25.5 heading into September from a slightly revised -24.6 in August, below expectations of reading of -24.3.

 

Sector News Breakdown

Consumer

·     Amazon (AMZN) raised the amount some customers must spend on its site to get free shipping. To qualify for no-cost deliveries, some Amazon customers who don’t have Prime memberships now need to spend $35, up from $25 previously.

·     E.L.F. Beauty (ELF) has signed a definitive agreement to acquire Naturium, a fast-growing, high performance skin care brand, for $355 million in a combination of cash and stock.

·     JoAnn Stores (JOAN) Q2 adj EPS ($1.44) vs est. ($1.15) on sales $453.8Mm vs est. $437.4Mm; sees FY net sales down 1-3% vs est. -2.95% and adj EBITDA $85-95Mm vs est. $82.4Mm.

·     Nio Inc. (NIO) Q2 adj EPS loss (-$0.51) and vehicle sales were $990.9M; Q2 vehicle deliveries were 23,530 and sees Q3 deliveries 55K-57K.

·     Shoe Carnival (SCVL) Q2 EPS $0.71 vs. est. $0.84; Q2 revs $294.6M vs. est. $286.35M; Q2 comp store sales fell (-6.5%); lowers FY23 EPS view to $3.10- $3.25 from $3.60-$3.85 (est. $3.12) and lowers FY23 revenue view to $1.19B-$1.21B from $1.23B-$1.25B.

·     Toyota Motors (TM) has suspended operations at 12 plants in Japan due to a possible systems glitch, Bloomberg reported.

 

Energy, Industrials and Materials

·     3M (MMM) announces combat arms settlement as will contribute a total amount of $6.0 bln between 2023 and 2029; says agreement is not an admission of liability; because of agreement, company will record a pre-tax charge of approximately $4.2 bln in q3 of 2023.

·     Donaldson (DCI) Q4 adj EPS $0.78 in-line with consensus and revs $879.5M vs. est. $895.95M; sees FY24 EPS $3.14-$3.30 vs. consensus $3.19 and revenue growth of 3%-7% vs. est. $3.55B.

·     Heico (HEI) Q3 EPS $0.74 vs est. $0.73 on sales $722.9Mm vs est. $701.7Mm, EBITDA $179.8Mm vs est. $181.67Mm; for remainder of FY23, continue to see net sales growth in both FSG and ETG for remainder of FY23.

 

Financials

·     Bank of Montreal (BMO) Q3 adjusted EPS C$2.78 vs, C$3.09 last year; Q3 revenue C$7.93B vs. C$6.1B last year; reports Q3 CET1 capital ratio 12.3%.

·     Goosehead Insurance (GSHD) will replace NuVasive (NUVA) in the S&P SmallCap 600.

·     Jackson Financial (JXN) will replace NexTier Oilfield Solutions (NEX) in the S&P SmallCap 600.

 

Healthcare

·     Catalent (CTLT) is near reaching a resolution with Elliott Investment Management that would result in a shake-up of the U.S. contract drug manufacturer’s board of directors after its share price lost half of its value in the past year, Reuters reported.

·     Haemonetics (HAE) has announced that for the first time, patients have been treated with the company’s Vascade MVP Venous Vascular Closure system in Germany.

 

Technology, Media & Telecom

·     AT&T (T) and Verizon (VZ) both upgraded to Buy ratings at Citigroup saying the wireless competitive environment is showing positive signs of stabilization that should help operating performance.

·     CalAmp (CAMP), announced that Jeff Gardner, the Company’s President, and Chief Executive Officer, passed away unexpectedly on Sunday August 27th due to presumed natural causes.

·     PDD Holdings (PDD) Q2 adj EPS $1.44 vs. est. $1.01; Q2 revs $7.2B vs. est. $6.07B.