Early Look

Friday, August 30, 2024

Following yesterday’s roller coaster which ended up pretty much right where we began, US equity futures climbed overnight ahead of more inflation, spending and consumer sentiment data. Though MRVL (+9.5% pre-mkt) looks to enjoy a post-NVDA relief rally, earnings after the close last night did not generally move the needle on overall investor sentiment, so the macro data will guide the day. Ahead of Core PCE results, Fed implied probabilities see 67.5% likelihood of a 25bps cut and 32.5% for a 50bps cut at the September meeting with a 3.227% implied rate a year out.

In Asian markets, the Nikkei rallied 0.74% to 38,647, the Shanghai gained 0.68% to 2,842 and the Hang Seng jumped 1.14% to 17,989. In Europe, Eurozone inflation fell to the lowest level in three years, UK mortgage lending was a bit stronger and Eurozone, Italian and German unemployment data was a bit better. As a result, the DAX climbed 0.14% to 18,938, while the FTSE 100 added 0.28% to 8,402. In commodities, WTI crude held flattish at $75.96, natgas futures slipped 0.66% to $2.12 and gold dipped $7/oz to $2,552. The Dollar index was flat while yields dipped slightly ahead of PCE data.

• The Dow Jones Industrial Average added 243.63 points, or 0.59%, to 41,335.05.
• The Nasdaq Composite lost 39.60 points, or 0.23%, to 17,516.43.
• The Russell 2000 Index gained 14.35 points, or 0.66% to 2,202.98

• 8:30 AM ET US Personal Spending
• 8:30 AM ET US Core PCE Price Index
• 9:45 AM ET          Chicago Business Barometer (PMI)
• 10:00 AM ET       University of Michigan Sentiment (Final)

• Impacts continue after millions were advised to evacuate as Typhoon Shanshan hit southwest Japan yesterday. Toyota, Nissan, Honda, Sony and Tokyo Electron were among companies suspending factory operations as power outages impacted the area.

• Lululemon Athletica (LULU) Shares initially fell & turned green last night after reporting: Q2 EPS $3.15 vs est $2.93, op Inc $540.226Mm vs est $507.52Mm on revs $2.371B vs est $2.408B, comps +2%, gr mgn 59.6%; guides Q3 revs $2.34-2.365B vs est $2.407B and EPS $2.68-2.73 vs est $2.70; sees FY revs $10.375-10.475B vs est $10.618B and EPS $13.95-14.15 vs est $14.00.
• Dollar General (DG) Influential analyst Chuck Grom of Gordon Haskett downgrades DG to Hold from Buy with $90 PT after the close yesterday.
• Tyson Foods (TSN) Tyson Foods names Curt Calaway CFO, troubled scion John Tyson remains with company.

• Intuitive Machines (LUNR) Shares launched 21% higher after the company reported winning a $116.9M NASA lunar contract award last night.
• Enviri Corporation (NVRI) announced the sale of Reed Minerals to Speyside Equity for $45M last night.
• IPG Photonics (IPGP) announced selling Russian operations for $51M y’day.
• A-Mark Precious Metals (AMRK) last night reported preliminary Q4 EPS $1.20 vs est $0.69; reports preliminary Q4 revenue $2.52B vs est $2.72.
• Tesla (TSLA) Tesla Beijing to recall 870 imported model X EVs, China regulator say

• HUM UNH CB CI CVS ELV After the close last night Former Pres. Trump says he will have insurance companies cover IVF costs. [The average cost of a traditional IVF cycle in the United States can range from $14,000 to $20,000 or more, depending on factors such as location, clinic, and additional procedures; 413K IVF cycles were performed in the U.S. in 2021.]
• P3 Health Partners (PIII) announced last night that Leif Pedersen, an experienced finance, operational and value-based care executive, will join the company as CFO effective October 1, 2024. Pedersen succeeds Atul Kavthekar, who will continue as CFO until September 30, 2024, after which he will serve as a Strategic Advisor to the company.
• Evoke Pharma (EVOK) files $50M mixed securities shelf last night.
• Grail (GRAL) Results of GRAIL’s Galleri(R) Multi-Cancer Early Detection Blood Test in Prostate Cancer Published in JCO Precision Oncology; shows efficacy

• Marvell Tech (MRVL) Shares rose sharply last night after reporting: Q2 adj EPS $0.30 vs est $0.30 on revs $1.27B vs est $1.25B; guides Q3 revs $1.45B +/- 5% vs est $1.4B, adj gr mgn 61%, adj op exp $465Mm, adj EPS $0.35-0.45 vs est $0.38.
• Dell Technologies (DELL) Shares were higher last night after reporting: Q2 adj EPS $1.89 vs est $1.71, adj op Inc $2.034B vs est $1.859B on revs $25.026B vs est $24.142B; says coming PC refresh cycle and longer-term impacts of AI will create tailwinds for PC market, beginning to realize benefits of AI across own business.
• MongoDB (MDB) Shares jumped last night after reporting: Q2 adj EPS $0.70 vs est $0.49 on revs $478.1Mm vs est $464.14Mm, adj op Inc $52.5Mm; sees Q3 revs $493-497Mm vs est $478.78Mm, adj EPS $0.65-0.68 vs est $0.60; sees FY revs $1.92-1.93B vs est $1.9B and adj EPS $2.33-2.47 vs est $2.26.
• Elastic NV (ESTC) Shares fell sharply last night after reporting: Q1adj EPS $0.35 vs est $0.25 on revs $347Mm vs est $344.7Mm, adj op Inc $37Mm vs est $32.1Mm; guides Q2 revs $353-355Mm vs est $360.87Mm and adj EPS $0.37-0.39 vs est $0.33; sees FY revs $1.436-1.444B vs est $1.478B, adj op mgn 12.5% and adj EPS $1.52-1.56 vs est $1.42; says sees volume of customer commitments impacted by segmentation change impacting revs this year.
• Autodesk (ADSK) Shares rose 6% last night after reporting: Q2 adj EPS $2.15 vs est $2.00 on revs $1.51B vs est $1.482B, adj op mgn 37%; sees Q3 revs $1.555-1.570B vs est $1.545B and adj EPS $2.08-2.14 vs est $2.12; sees FY revs approx +11% vs est +10%, adn op mgn 35-36% and adj EPS $8.18-8.31 vs est $8.12.
• NXP Semiconductors (NXPI) approved an additional $2B buyback authorization.
• Lam Research (LRCX) Increases Quarterly Dividend From $2.00 To $2.30 Per Share.
• Intel (INTC) The company is discussing various scenarios, including a split of its product-design and manufacturing businesses, as well as which factory projects might potentially be scrapped, said the people, who asked not to be identified because the deliberations are private.