Early Look

Monday, July 15, 2024

U.S. futures are surging amid rising odds of former President Donald Trump winning the U.S. election, after he survived an assassination attempt on Saturday, lifting stocks and the dollar, reviving risk appetite as U.S. equity futures climbed. The S&P 500, Nasdaq 100 and Dow futures were each up ~0.5%. Former president and Republican presidential candidate Donald Trump, 78, was shot in the ear in an assassination attempt during a campaign rally in Pennsylvania on Saturday. The Trump campaign has since said he was “doing well.” The FBI also said early on Sunday that it had identified 20-year-old Thomas Matthew Crooks of Bethel Park, PA – as the “subject involved” and Crooks was shot dead by Secret Service agents and an AR-15-style semiautomatic rifle was recovered near his body. Seeing early strength in many stock market sectors following the news and as earnings for second quarter get underway this week, with Dow component Goldman Sachs (GS) reporting this morning, and roughly around 45 S&P components this week overall (heavy financials and healthcare). Last week, the Russell 2000 Small-cap index was up 6%, its biggest weekly% gain since week ended November 3, 2023, amid rising interest rate cut expectations by the Fed after cooler SPI data last Thursday. The Dow jones Industrial Average was up 1.6% (hit intraday record high of 40,257.24), S&P 500 was up 0.9% (hit intraday record high 5,655.56), and the Nasdaq was up 0.2% (hit record high of 18,671.07 on Thursday before the selloff). In Asian markets, The Nikkei Index was closed, last settled at 41,190, the Shanghai Index rose 2 points to 2,972, and the Hang Seng Index dropped -277 points to 18,015. In Europe, the German DAX is down -34 points to 18,713, while the FTSE 100 is down -16 points to 8,236. Bitcoin prices surge 9% to $62,700.

• The Dow Jones Industrial Average rose 247.15 points, or 0.62%, to 40,000.90.
• The Nasdaq Composite jumped 115.04 points, or 0.63%, to 18,398.45.
• The Russell 2000 Index advanced 23.23 points, or 1.09% to 2,148.27.

• 12:00 PM ET                Fed’s Powell Interviewed by David Rubenstein
• 4:35 PM ET                   Fed’s Daly Speaks in Q&A on Economy, Tech

• Earnings After the Close: CFB FBK RMCF SFBS

• Republican National Convention 7/15-7/18, in Milwaukee, WI

• Franco-Nevada (FNV) said that it along with Osisko Gold Royalties will purchase gold from SolGold’s Cascabel project in Ecuador.
• Solar stocks (ARRY, ENPH, FSLR, RUN, NOVA, SEDG) one of few sectors pressured/tumbling this morning despite the broader stock market lift off; moves comes after President Trump odds of winning election surge after surviving an assassination attempt this weekend (current White House admin seen as very “green” friendly”).

• Bitcoin prices surge over 9% to $62,700 after ending around $57,605 late Friday, snapping a two-day losing streak. Coming into the day, Bitcoin is down about -7% month-to-date but still up 35% year-to-date (down -21% from its all-time high of $73,462.59 on March 13, 2024, and up 91% from 52 weeks ago (July 14, 2023), when it traded at $30,118.94.
• Prison stocks (GEO, CXW) see early strength amid the Trump news this weekend.

• DaVita Inc. (DVA): The US Federal Trade Commission is probing DaVita and Fresenius Medical Care AG over allegations that they made it hard for physicians to leave for rivals and start new businesses, Politico reported on Saturday.
• Lexeo Therapeutics (LXEO) said it received positive results in Phase 1/2 trials for its LX2006 treatment for Friedreich ataxia cardiomyopathy, a type of heart disease.

• Google parent Alphabet (GOOGL) is in advanced talks to acquire cybersecurity startup Wiz for roughly $23B, according to people familiar with the matter, in what would be its largest acquisition ever. A deal could come together soon, assuming the talks don’t fall apart, the people said, the WSJ reported this weekend.
• Super Micro Computer Inc. (SMCI) will replace Walgreens Boots Alliance (WBA) in the Nasdaq 100 Index and the Nasdaq 100 Equal Weighted Index prior to market open on July 22, Nasdaq said
• Global smartphone shipments rose 6.5% in the second quarter, driven by Samsung Electronics (SSNLF) and Apple (AAPL), preliminary data from IDC showed on Monday, but a full recovery in demand is yet to come around as it remained challenged in some markets.
• Taiwan Semiconductor Manufacturing (TSM) said it is expected to report a 30% rise in second-quarter profit on Thursday; TSM is set to report a net profit of T$236.1 billion ($7.25 billion) for the quarter ended June 30 – the estimate compares to the 2023 second-quarter net profit of T$181.8 billion.
• Trump Media (DJT) shares surged 50% after a failed assassination attack over the weekend boosted the former US president’s bid to return to the White House.