Early Look

Tuesday, June 11, 2024

U.S. futures are looking lower, reversing yesterday gains and tracking European markets lower a day after the S&P 500 and Nasdaq each touched fresh record highs ahead of several key macro related market catalysts this week including Wednesday CPI inflation data and FOMC policy meeting (no change expected), and Thursday producer prices (PPI). In Asian markets, The Nikkei Index rose 96 points to 39,134, the Shanghai Index fell -23 points to 3,028, and the Hang Seng Index declined -190 points to 18,176. In Europe, the German DAX is down -113 points to 18,381, while the FTSE 100 drops -61 points to 8,167. French government bonds fall again as investors struggle to look past heightened political uncertainty in the aftermath of the European Parliament elections. The euro extends declines against the dollar index (DXY) after hitting the weakest level in a month the day before. In stock news, Apple (AAPL) unveiled its long-awaited new artificial intelligence features, including a partnership with ChatGPT maker OpenAI. Gold edged lower, as traders await US inflation data and the Federal Reserve’s interest-rate decision on Wednesday for clues on the path for borrowing costs. Smallcaps underperform broader averages again pointing to sharp declines.

• The Dow Jones Industrial Average rose 69.05 points, or 0.18%, to 38,868.04.
• The Nasdaq Composite gained 59.40 points, or 0.35%, to 17,192.53.
• The Russell 2000 Index advanced 5.06 points, or 0.25% to 2,031.61.

• 7:45 AM ET ICSC Weekly Retail Sales
• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: CASY GME MAMA ORCL PETS RBRK STRM

• Deutsche Bank Global Auto Industry Conference, 6/11-6/12, in New York
• Goldman Sachs Annual Global Healthcare Conference, 6/10-6/13, in Miami, FL
• JP Morgan Canada 1×1 Forum, 6/10-6/11, in Toronto, CA
• Morgan Stanely Financials, Payments & CRE Conference, 6/10-6/12, in New York
• Oppenheimer 25th Annual Consumer Growth and E-Commerce Conference, 6/10-6/12
• Oppenheimer 2024 Software Bus Tour, 6/10-6/13, in San Francisco
• RBC Capital Financial Technology Conference, 6/11 in New York
• China CPI and PPI data for May

• Calavo Growers (CVGW) Q2 adj EPS $0.50 vs est. $0.36, adj EBITDA $13.4Mm vs est. $11.65Mm on revs $184.4Mm vs est. $160.46Mm.

• Cleveland-Cliffs (CLF) was downgraded to Neutral from Overweight at JP Morgan.
• Eastman Chemical Co (EMN) files mixed securities shelf.
• Scorpio Tankers Inc. (STNG) agreed to sell five MR product tankers (four 2012 built and one 2013 built), which have been contracted to be sold for $142.5M in aggregate to three separate buyers. The 2013 built vessel, STI Beryl, has been contracted to be sold for $36.6M.

• Target Hospitality (TH) shares tumble after a Wall Street Journal report that the Biden administration is closing an Immigration and Customs Enforcement detention center in Dilley, Texas, that was used to jail migrant families who crossed the border illegally.

• Sage Therapeutics (SAGE) shares surge pre mkt; announces phase 2 surveyor study reinforces cognitive impact of Huntington’s disease; surveyor study met its primary endpoint.
• Teladoc (TDOC) said Mala Murthy stepped down as acting Chief Executive Officer of company and will remain the company’s Chief Financial Officer.

• Apollo (APO) and Kyndryl (KD) have discussed an acquisition offer for DXC Technology (DXC) of between $22 and $25 per share, Reuters reported citing sources.
• AT&T (T) remains on track to meet all of financial guidance; said continues to make progress on its sustainable, long-term growth strategy and remains on track to meet all of its financial guidance; continues to see healthy customer demand for world-class 5G and fiber connectivity; AT&T still forecasts FY CAPEX $21B to $22B, est. $18.67B.
• Fortinet (FTNT) announced this morning that it is acquiring Lacework, a cloud security vendor, for an undisclosed amount.
• Skillsoft (SKIL) Q1 adj EPS ($3.37) vs est. ($3.63), adj EBITDA $19Mm vs est. $20.82Mm on revs $127.793Mm vs est. $133.38Mm; guides FY revs $530-550Mm vs est. $543.61Mm and adj EBITDA $105-110Mm vs est. $108.1Mm.
• SolarWinds (SWI) announced the appointment of Lewis Black as its Executive Vice President, Chief Financial Officer, and Treasurer to be effective in August 2024.
• Yext Inc. (YEXT) Q1 adj EPS ($0.05) vs est. $0.06, adj EBITDA $9.6Mm vs est. $9.825Mm on revs $96Mm vs est. $96.33Mm; guides Q2 revs $98-98.4Mm vs est. $98.42Mm, adj EBITDA $8.0-8.5Mm vs est. $14.51Mm and adj EPS $0.02-0.03 vs est. $0.09; sees FY revs $394-396Mm vs est. $400.31Mm, adj EBITDA $65-67Mm vs est. $59.52Mm; entered into a definitive agreement to acquire Hearsay Systems for $125M.