Early Look
Wednesday, July 3, 2024
|
Futures |
Up/Down |
% |
Last |
|
Dow |
60.00 |
0.15% |
39,748 |
|
S&P 500 |
2.25 |
0.04% |
5,571 |
|
Nasdaq |
12.50 |
0.06% |
20,267 |
Another day, another record for U.S. stocks on Tuesday as the S&P 500 index closed above 5,500 for first time, while Tesla (TSLA) propels Nasdaq to fresh records, rising over 10% after monthly delivery numbers, rising for the 6th straight trading day. The Nasdaq Composite advanced 0.8%, ending near 18,028 to score a fresh record close. The rally in U.S. stocks was also helped by a pullback in Treasury yields after Federal Reserve Chair Jerome Powell acknowledged that inflation is back on a downward path. U.S. markets will have a shortened trading session Wednesday and will be closed Thursday for the Fourth of July holiday. European stocks rose, tracking a record S&P 500 close, on optimism about U.S. interest-rate cuts. In Asian markets, The Nikkei Index surged 506 points or 1.25% to 40,580, the Shanghai Index fell -14 points to 2,982, and the Hang Seng Index jumped 209 points to 17,978. In Europe, the German DAX is up 170 points to 18,333, while the FTSE 100 is up 42 points to 8,164. In oil futures, West Texas Intermediate (WTI) steadied near a two-month high on signs of a big drawdown in U.S. crude stockpiles. Heading into the abbreviated stock trading session (markets close at 1:00 PM), U.S. futures and oil prices are flat after a strong rally late yesterday saw the S&P and Nasdaq close at the highs for a second straight day this week. Hurricane Beryl becomes Category 4 storm with 155-mph winds. There is potential for Beryl to turn northwest so residents in the U.S., especially those along the Texas coast, should monitor the storm.
Market Closing Prices Yesterday
- The S&P 500 Index gained 33.92 points, or 0.62%, to 5,509.01.
- The Dow Jones Industrial Average rose 162.33 points, or 0.41%, to 39,331.85.
- The Nasdaq Composite jumped 149.46 points, or 0.84%, to 18,028.76.
- The Russell 2000 Index advanced 3.81 points, or 0.19% to 2,033.87.
Economic Calendar for Today
- U.S. Markets early close at 1:00 PM ET in observance of Fourth of July Holiday
- 7:00 AM ET MBA Mortgage Applications Data
- 7:00 AM ET Fed’s Williams Speaks on Panel at ECB Forum
- 7:30 AM ET Challenger Layoffs for June
- 8:15 AM ET ADP Private Payroll Employment for June…est. 160K
- 8:30 AM ET International Trade for May…est. (-$76.2B)
- 8:30 AM ET Weekly Jobless Claims…est. 235K
- 8:30 AM ET Continuing Jobless Claims…est. 1.84M
- 9:45 AM ET S&P Global Composite PMI June-Final…prior 54.6
- 9:45 AM ET S&P Global Services PMI June-Final…prior 55.1
- 10:00 AM ET Durable Goods Orders M/M for May
- 10:00 AM ET ISM Non-Manufacturing PMI for June…est. 52.5
- 10:30 AM ET Weekly DOE Inventory Data
- 2:00 PM ET FOMC Meeting Minutes
Earnings Calendar:
- Earnings Before the Open: STZ
|
Macro |
Up/Down |
Last |
|
Nymex |
0.05 |
82.86 |
|
Brent |
0.00 |
86.24 |
|
Gold |
25.40 |
2,358.80 |
|
EUR/USD |
0.0015 |
1.0759 |
|
JPY/USD |
0.45 |
161.89 |
|
10-Year Note |
-0.008 |
4.428% |
Sector News Breakdown
Consumer
- Rivian (RIVN) last night denied media reports that said it was in early talks with Volkswagen to extend their partnership beyond a recently announced software joint venture. Handelsblatt reported that an extended partnership might include producing the Rivian smaller and less expensive R2 SUV at VW’s South Carolina plant
- Tesla (TSLA) shares rise 3% pre mkt trading, adding to the prior day 10% advance after monthly EV delivery data as analysts raise their price target; comes into the day with 6-day win streak.
Energy, Industrials and Materials
- Alaska Airlines’ (ALK) flight attendants are set for an average pay increase of 32% as part of a new three-year tentative labor agreement with the airline, a union representing the employees said.
- The American Petroleum Institute reported US crude inventories decreased by 9.2 million barrels last week.
- Vitol Group purchased two liquefied natural gas bunkering vessels and secured another on a long-term time charter.
Financials
- MarketAxess Holdings Inc. (MKTX) announced trading volume and preliminary variable transaction fees per million for June and the second quarter. Said for Q2, delivered 12.4% growth in total credit ADV, driven by strength in U.S. high-grade (+13.0%), emerging markets (+23.0%), municipals (+34.2%) and Eurobonds (+8.3%). For June, posted total average daily volume (“ADV”) of $36.5 billion, up 33.8% (+13.5% M/M) on strong growth in total credit ADV to $14.0 billion, up 14.3% (+5.0% M/M), and a 49.8% increase in total rates ADV (+19.4% M/M).
- Repay Holding (RPAY) announces offering $260 million in convertible notes.
Healthcare
- Aslan Pharmaceuticals (ASLN) announces plan to implement ads ratio change; plan to change ratio of ADSs to its ordinary shares to one ADS representing 200 ordinary shares; effect of ratio change on ADS trading price on Nasdaq capital market is expected to take place at opening of trading on July 3rd
- Avid BioServices (CDMO) Q4 adjusted EPS loss (-$0.070 vs. est. loss (-$0.04); Q4 revs $42.98M vs. est. $42.14M; sees FY25 revenue $160M-$168M vs. consensus $164M.
- CureVac (CVAC) shares soared in premarket trading after the company ceded full rights to its influenza and Covid-19 mRNA vaccine candidates to GSK, part of a strategic restructuring and cost-cutting effort.
Technology, Media & Telecom
- Paramount Global (PARA) shares rise over 7% after hours after the WSJ reported Skydance Media has reached a preliminary agreement to buy Shari Redstone’s family company National Amusements and merge with PARA. Skydance will pay $1.75 billion for National Amusements as part of the deal. https://tinyurl.com/tvk48e35
- Charter (CHTR) downgraded to Sell from Neutral at Citigroup and cut tgt to $255 from $280.
- DouYu International Holdings (DOYU) declares a special cash dividend of $9.76 per share.
- Nano Dimension Ltd. (NNDM) and Desktop Metal, Inc. (DM) have entered into a definitive agreement under which Nano Dimension will acquire all outstanding shares of Desktop Metal in an all-cash transaction for $5.50 per share, for total consideration of approximately $183M, subject to possible downward adjustments to $4.07 per share.
- The EU mulls closing off import duty exemption, potentially impacting Shein, Temu – Bloomberg reported.
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.