Early Look

Tuesday, September 3, 2024

Here we go. August finished on a positive note but now we face September and October, two of the more volatile months historically, as well as an election. Could be a bumpy ride. Today’s economic reports shouldn’t be especially market-moving, though, and most traders likely will be more focused on the employment data later in the week. Still, US equities slipped overnight with Nasdaq futures testing the support pivot at $19,451. Lastly, with the September Fed meeting just a couple weeks away, implied probabilities now see 69% likelihood of a 25bps cut and 31% for a 50bps cut at that meeting with a 3.261% implied rate a year out.

In Asian markets, the Nikkei slipped 0.04% to 38,686, the Shanghai faded 0.29% to 2,803 and the Hang Seng eased 0.23% to 17,651. In Europe, Swiss CPI came in a little below expectations and GDP yr/yr was a beat, but markets worked lower. The DAX fell 0.49% to 18,838, while the FTSE 100 slumped 0.51% to 8,321. In commodities, WTI crude rolled 1.6% to $72.35, nat gas futures rose 3.29% to $2.197 and gold held a modest gain of $1.50/oz to $2,529. The Dollar index gained again to $101.82.

• The Dow Jones Industrial Average added 227.98 points, or 0.55%, to 41,563.08.
• The Nasdaq Composite rose 197.22 points, or 1.13%, to 17,713.63.
• The Russell 2000 Index gained 14.65 points, or 0.67% to 2,217.63

• 10:00 AM ET US ISM Manufacturing PMI
• 10:00 AM ET US Construction Spending mo/mo
• 10:00 AM ET US ISM Manufacturing New Orders Index

• Earnings After the Close: ASAN GTLB HQY OS PD ZS

• SOI Friday night PR: Solaris Oilfield Infrastructure, Inc. announced today that all of the proposals related to its previously announced acquisition of Mobile Energy Rentals LLC were approved by the requisite holders of Solaris common stock at the Company’s special meeting of stockholders held earlier Friday.
• ASC Ardmore Shipping Corp files for mixed shelf of up to $500M – SEC filing on Friday.
• CSX On Friday night announced it has secured new five-year tentative collective bargaining agreements with International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers (IBB) and the Transportation Communications Union (TCU).
• TXO files $250M mixed securities shelf and files to sell 2.5M common units for holders on Friday.
• RACE SAN UNCRY in 2 PR’s on Friday, Ferrari announced the termination of partnership with Santander and a multi-year partnership with Unicredit.
• China auto sales numbers for August 2024 were released:
• VWAGY – VW Weighs First-Ever Germany Plant Closures to Cut Costs.
• X NPSCY Harris to Say US Steel Should Remain Domestically Owned, Run. Per WSJ
• EADSY Cathay Pacific inspects Airbus A350 fleet after engine part failure.
• BMWYY BMW Worldwide recalling Mini Cooper SE electric models, company says.
• BX Blackstone has agreed to buy an 80% stake ($1.2B) in a European warehouse portfolio run by landlord Burstone (BTNJ.J), the latest push by the U.S. investment manager into warehouses that have boomed alongside the rise of e-commerce.
• ALMSY – Alstom closes sale of North American signaling business to Knorr-Bremse.
• LUV Elliott now owns enough (10%) of Southwest Airlines to call a special meeting.
• GM General Motors Ecuador factory closes doors for good
• BA Shares are lower in pre-market trading after a downgrade to Underweight from Equal Weight at Wells Fargo.
• LNZA LanzaTech signs master license agreement with Sekisui for plants in Japan.
• TSLA Tesla plans six-seat Model Y, production slated for 2025 in China, sources say per Reuters

• ALLR Allarity Therapeutics Inc files for offering of up to 18.5M shares by the selling stockholders – SEC filing on Friday.
• RLMD Relmada Therapeutics files $250M mixed securities shelf on Friday night.
• PSNL files to sell 3.5M shares of common stock for holders on Friday.
• CMPX files $300M mixed securities shelf on Friday.
• ACHC In a Saturday article the NY Times says: “Since the pandemic exacerbated a national mental health crisis, Acadia Healthcare’s revenue has soared. Its stock price has more than doubled. But a New York Times investigation found that some of that success was built on a disturbing practice: Acadia has lured patients into its facilities and held them against their will, even when detaining them was not medically necessary.”
• BMY Aug. 30 PR: The Primary Ciliary Dyskinesia Market is projected to grow by USD 160.2 million from 2024-2028, driven by increased awareness and AI-driven market transformation- Technavio.
• BMY Sept 1 PR: Long-Term Follow-Up Data from Phase 3 Study of CAMZYOS(R) (mavacamten) Underscores Established Efficacy and Safety Profile in Patients with Symptomatic Obstructive Hypertrophic Cardiomyopathy (oHCM).
• CI to reaffirm FY adjusted operating EPS at least $28.40 vs. consensus $28.51, in a regulatory filing.
• CYTK Sept. 1 PR: Cytokinetics Presents Additional Data From SEQUOIA-HCM at the European Society of Cardiology Congress 2024.
• CYTK Sept. 1 PR: Cytokinetics Presents New Data Related to the Safety and Long-Term Use of Aficamten at the European Society of Cardiology Congress 2024.
• BLTE Belite Bio announces appointment of Hendrik Scholl as Chief Medical Officer.
• IRTC PFE BMY iRhythm Technologies announced the presentation and publication of the GUARD-AF randomized clinical trial at the European Society of Cardiology Congress 2024. The trial was sponsored by Bristol-Myers Squibb-Pfizer Alliance and iRhythm provided the Zio XT patch ECG long-term continuous monitoring monitor used in the interventional arm of the study.
• ARWR PR: Arrowhead Pharmaceuticals Presents New Pivotal Phase 3 Data at ESC 2024 from PALISADE Study of Plozasiran in Patients with Familial Chylomicronemia Syndrome.
• MRNA Taiwan FDA approves Moderna’s COVID-19 vaccine for SARS-COV-2 variant JN.1.
• ILMN GRAL EU says Court of Justice judgment annuls decision to probe Illumina deal. EU’s top court sides with Illumina over probe into $8bn Grail acquisition; European Court of Justice says European Commission had no right to investigate tie-up. FT
• ENSG Ensign Group acquires seven skilled nursing facilities in Colorado.
• KLVA KalVista Announces FDA Acceptance of New Drug Application for Sebetralstat for Oral On-Demand Treatment of Hereditary Angioedema.

• BAC BRK/B Berkshire Hathaway Sells About $850M Worth of Bank of America Shares, selling 21M shares, according to a form 4 filing with the SEC late Friday.
• ARGT Milei vetoes Argentina pension bill amid congressional tension.
• TUR – Turkey Bids to Join BRICS in Push to Build Alliances Beyond West

• SMCI Super Micro Computer Inc., in a 10-K filing on Friday night (about the co’s delayed 10-K filing), the company: 1. Officially files with the SEC that their FY24 10-K will be delayed but adds, 2. They do not anticipate [the delayed] Form 10-K will contain any material changes to results for FY and quarter ended June 30, 2024.
• EWZ on Friday night, Brazil bans X, outlawing access to app for millions, the order follows months of back-and-forth between the social-media platform and Brazil’s highest court.
• FXI EWJ China Warns Japan of Retaliation Over Potential New Chip Curbs.
• SSNLF South Korea Wants US ‘Carrots’ for Embracing China Chip Curbs; Incentives make it easier to embrace US policy, minister says; Tighter US curbs will likely hurt Korea-China trip trade. – WSJ
• BX Blackstone Inc. is nearing a deal to acquire Australian data center operator AirTrunk for more than A$20 billion ($13.5 billion) including debt, people familiar with the matter said, in what could be one of the largest digital infrastructure deals this year. Per Bloomberg.
• INTC Intel CEO to pitch board on plans to shed assets, cut costs, source says per Reuters.
• ByteDance taps banks for $9.5 bln Asia dollar corporate loan, sources say per Reuters.
• HPE HP to continue $4 billion damages case against Mike Lynch’s estate in the U.K.
• AAPL SPOT DIS Apple’s partnership with India’s second-biggest telecoms firm will give the iPhone maker a sorely needed boost in a content market where it lags far behind the likes of Spotify and Walt Disney. Per Reuters.
• DIS T TPG – Walt Disney and satellite TV provider DirecTV failed to reach a new distribution deal for ESPN, ABC and other Disney-owned networks, the companies said on Sunday, resulting in more than 11 million DirecTV subscribers losing access to those networks.
• T – Communications Workers of America withdraws from mediation with AT&T.
• NOK T AT&T signs a multi-year agreement with Nokia to support its extensive fiber network footprint that passed 27.8 million total fiber locations as of the second quarter of 2024. — Nokia to provide fiber solutions in support of AT&T’s future network footprint expansion and upgrades. — Nokia helps AT&T boost broadband access for millions of users, ensuring a path to deliver the next generation of enhanced digital services.
• IRDM Iridium Unveils Iridium Certus GMDSS: Defining a New Standard in Maritime Safety and Communications.
• AAPL Japan no longer iPhone display supplier as Apple ends LCD use; U.S. tech giant to switch iPhone SE’s screen to OLEDs in 2025