Morning Preview: October 14, 2024

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Early Look

Monday, October 14, 2024

Futures

Up/Down

%

Last

Dow

-66.00

0.15%

43,077

S&P 500

10.25

0.17%

5,870

Nasdaq

61.50

0.30%

20,511

 

 

U.S. stock futures are holding last week gains, looking slightly higher after the S&P 500 and Dow each finished at record highs last week. The S&P, the Dow, Nasdaq post 5th straight week of gains; S&P 500 matches weekly winning streak ended in May. For the week, Dow up 1.2%, S&P 500 up 1.1%, Nasdaq up 1.1%. China US listed stocks slip after China pledged on Saturday to “significantly increase” debt to revive its sputtering economy but lacked key details of the overall size of the stimulus package. In Asian markets, The Nikkei Index rose 224 points to 39,605, the Shanghai Index jumped 66 points to 3,284, and the Hang Seng Index slipped -159 points to 21,092. In Europe, the German DAX is up 36 points to 19,410, while the FTSE 100 is down about -8 points to 8,245. Reminder that banks and the bond market are closed today for a holiday. After bank earnings on Friday helped boost financials and broader markets, Forty-one S&P 500 companies are expected to report results this week. A quiet day possibly ahead amid the Columbus Day holiday, with no economic data in the U.S. expected.

 

Market Closing Prices Yesterday

  • The S&P 500 Index climbed 34.98 points, or 0.61%, to 5,815.03.
  • The Dow Jones Industrial Average rose 409.74 points, or 0.97%, to 42,863.86.
  • The Nasdaq Composite gained 60.89 points, or 0.33%, to 18,342.94.
  • The Russell 2000 Index advanced 45.99 points, or 2.10% to 2,234.41.

Economic Calendar for Today

  • No Major Economic Data on Columbus Day holiday
  • 3:00 PM ET                   Fed’s Waller Speaks on the Economic Outlook

 

 

Macro

Up/Down

Last

Nymex

-1.78

73.80

Brent

-1.72

77.31

Gold

-1.30

2,675.00

EUR/USD

-0.0013

1.0924

JPY/USD

0.34

149.47

10-Year Note

Is closed

For holiday

 

World News

  • Late Friday, reports indicated that nearly all three branches of Iran’s government – the judiciary, the legislature and the executive branch – have been hit by heavy cyberattacks, and their information stolen,” said Firouzabadi, the ex-secretary of Iran’s Supreme Council of Cyberspace, without explaining when those attacks happened.
  • China exports rose 2.4% in dollar terms from a year earlier last month, down from 8.7% year-on-year growth in August, the Chinese customs office reported Monday. Imports rose just 0.3% in September. Economists had estimated that exports would rise about 6% and that imports would climb about 0.9%. China recorded a trade surplus of $81.7 billion in September, down from $91 billion in August.
  • China’s military launched a new round of war games near Taiwan, saying it was a warning to the “separatist acts of Taiwan independence forces”, drawing condemnation from the Taipei and U.S. governments. The Chinese military’s Eastern Theatre Command said the “Joint Sword-2024B” drills were taking place in the Taiwan Strait and areas to the north, south and east of Taiwan.
  • A Hezbollah drone strike killed four soldiers at a northern Israeli base, one of the deadliest attacks by the Iran-backed militia on the Jewish state in at least a year, as the army widens its offensive in southern Lebanon.

Sector News Breakdown

Consumer

  • Amer Sports (AS) was downgraded to Equal Weight from Overweight at Wells Fargo saying China growth continues to be impressive at AS but concerns about weak consumer demand and time for stimulus to be effective linger.
  • General Motors Co. (GM) and Barclays US Consumer Bank today announced they have entered into a long-term partnership agreement for Barclays to be the exclusive issuer of the GM Rewards Mastercard and the GM Business Mastercard in the United States starting next summer.
  • VF Corp. (VFC) downgraded to Underweight from Equal Weight and cut tgt to $15 at Wells Fargo saying current valuation appears to be baking in much more upside than appears realistic; says Vans’ average transaction value is deteriorating into 2Q25, which could be another sign of pricing headwinds.
  • The EU’s planned tariffs on Chinese-made EVs will lead to higher prices and deter buyers, Chinese EV giant BYD (BYDDF) warned, adding the tariffs proposed for its vehicles were not a fair, but that it had also not challenged them. Comments come from BYD Executive Vice President Stella Li telling Reuters at the Paris car show.

Energy, Industrials and Materials

  • Boeing (BA) said late Friday it will recognize $5 billion in earnings charges, announced plans to cut about 10% of jobs, and reported preliminary 3Q revenue $17.8B missing est. $18.58B and Q3 loss (-$9.97).
  • Caterpillar (CAT) downgraded to Underweight from Equal Weight at Morgan Stanley citing mounting pressures on CAT’s construction industries segment from potential destocking and cuts tgt to $332 from $349.

Financials

  • B. Riley (RILY) has agreed to sell its appraisal and valuations unit, Great American, to asset-management firm Oaktree Capital for about $400 million, the Wall Street Journal reported. Riley will receive about $203 million in cash, preferred equity interests in a new holding company for Great American worth about $183 million – WSJ
  • Discover Financial Services (DFS) credit card delinquency rate 1.70% at Sept end (up from 1.67% end of Aug) and its credit card charge-off rate 2.63% at Sept end (up from 2.48% in Aug).
  • Nu Holdings (NU) mentioned positively in Barron’s saying the stock is worth a look. The company is the owner of Nubank, Latin America’s largest Fintech bank focusing on the large population of underserved consumers. The growth portion of the equation comes from Nu’s rapidly expanding profits.
  • Upstart Holdings (UPST) upgraded to Neutral from Underperform and raised tgt to $45 from $10.

Healthcare

  • Lundbeck to acquire Longboard Pharmaceuticals (LBPH) in a Strategic Deal, Significantly Enhancing Its Neuroscience Pipeline; LBPH shareholders will receive $60 per share in a transaction valued at approximately $2.6B equity value and $2.5B net of cash, on a fully diluted basis; shares of LBPH +40 pre mkt after M&A deal.
  • AstraZeneca (AZN) and Daiichi Sankyo’s (DSNKY) Enhertu has received conditional approval in China as a monotherapy for the treatment of adult patients with unresectable, locally advanced or metastatic non-small cell lung cancer, NSCLC, whose tumors have activating HER2, ERBB2, mutations and who have received a prior systemic therapy.
  • Catalent (CTLT) has agreed to sell its oral drug development and small-scale manufacturing facility in Somerset, New Jersey to private contract drug manufacturer Ardena, the companies said on Monday. Reminder Novo Holdings signed a $16.5 billion deal to buy Catalent in February to boost Wegovy supply.
  • Cycle Pharmaceuticals Ltd. is still interested in acquiring Vanda Pharmaceuticals Inc. (VNDA) after one of Vanda’s drugs failed to receive regulatory approval, according to Bloomberg. The $488M offer has been reaffirmed by Cycle even though Vanda’s stock has fallen 29% since June, the people said.

Technology, Media & Telecom

  • Apple Inc. (AAPL) is reportedly planning to launch a more affordable version of its Vision headset — priced around $2,000 and without the eyesight feature — as early as next year – TechCrunch reports.
  • Taiwan Semi (TSM) is expected to report a 40% leap in Q3 profit on Thursday thanks to soaring demand; is set to report a net profit of T$298.2 billion ($9.27 billion) for the quarter ended Sept. 30 -t hat estimate compares to the 2023 third-quarter net profit of T$211 billion.

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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.

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