Early Look

Monday, September 9, 2024

U.S. equites are looking to rebound following the sharpest weekly drop of the year for major averages as investors digested a weaker jobs outlook, while markets brace for another round of inflation data Wednesday and Thursday (CPI/PPI). So just how bad was it last week? For the week, the S&P 500 fell -4.25%, the Nasdaq declined -5.77%, and the Dow fell -2.93% as both the Dow Industrials, and S&P 500 register biggest weekly% drop since March 2023. The Nasdaq registered its biggest weekly% drop since January 2022 led by weakness in semis (AVGO, NVDA, AMD, ARM) as the Philadelphia SE Semiconductor Index (SOX) logged its biggest weekly percentage drop since March 2020 (down -12.22%). Attention turns to tech again today as Apple (AAPL) annual product event this afternoon where new versions of the iPhone, AirPods, and other features are expected. Treasuries declined to start the week with traders looking ahead to US inflation data for further clues on whether the Federal Reserve will deliver a jumbo interest-rate cut this year. Yields on two-year notes rose as much as 5-bps to 3.70%. In Asian markets, The Nikkei Index fell -175 points to 36,215, the Shanghai Index dropped -29 points to 2,736, and the Hang Seng Index was down -247 points to 17,196. In Europe, the German DAX is up 100 points to 18,402, while the FTSE 100 is up 55 points to 8,236. We get Oracle (ORCL) earnings tonight after the close, but no major economic data or Fed speakers which are in their blackout period ahead of FOMC.

• The Dow Jones Industrial Average fell -410.34 points, or 1.01%, to 40,345.41.
• The Nasdaq Composite tumbled -436.83 points, or 2.55%, to 16,690.83.
• The Russell 2000 Index declined -40.65 points, or 1.91% to 2,091.41.

• 10:00 AM ET                Wholesale Inventory M/M for July…est. +0.3%
• 3:00 PM ET                   Consumer Credit for July…est. $12.45B

• Earnings After the Close: AVO CDMO CVGW LMNR MTRX ORCL PEV RBRK SKIL

• Goldman Sachs 12th Annual CEEMEA Financials Symposium, 9/9 in London
• Goldman Sachs Communacopia & Technology Conference, 9/9-9/12, in San Francisco, CA
• Oracle (ORCL) Cloud World 2024, 9/9-9/12, in Las Vegas, NV
• Roth MKM 11th Annual Solar & Storage Symposium at SPI, 9/9-9/12, in Anaheim, CA
• Wells Fargo Net Lease REIT Forum, 9/9 in New York

• France has asked the European Commission to extend beyond Sept. 20 a deadline for submitting a plan to reduce its public deficit to align with Paris’ 2025 draft budget, La Tribune du Dimanche said on Sunday.
• Former European Central Bank President Mario Draghi called on the EU to invest as much as €800 billion ($884 billion) extra a year and commit to the regular issuance of common bonds to make the bloc more competitive with China and the US. In his long-awaited report on European Union competitiveness – Bloomberg.

• American Airline Group (AAL) will replace TEGNA Inc. (TGNA) in the S&P MidCap 400, and TEGNA will replace Designer Brands Inc. (DBI) in the S&P SmallCap 600. Etsy (ETSY) will replace Haverty Furniture Companies Inc. (HVT) in the S&P SmallCap 600. Bio-Rad Laboratories (BIO) will replace Erie Indemnity (ERIE) in the S&P MidCap 400.
• CNH Industrial NV (CNH), Western Alliance Bancorp (WAL), Parsons Corp. (PSN), Hamilton Lane Inc. (HLNE), Viper Energy Inc. (VNOM) and S&P SmallCap 600 constituent Fabrinet (FN) will replace MP Materials Corp. (MP), Progyny Inc. (PGNY), Adient plc (ADNT), Wolfspeed Inc. (WOLF), Helen of Troy Ltd (HELE) and Ziff Davis Inc. (ZD) in the S&P MidCap 400 respectively effective prior to the open of trading on Monday, September 23.
• MP Materials, Progyny, Adient, Wolfspeed, Helen of Troy, and Ziff Davis will replace Calavo Growers Inc. (CVGW), Enhabit Inc. (EHAB), Mercer International Inc. (MERC), Compass Minerals International Inc. (CMP), 3D Systems Corp. (DDD), and Fabrinet (FN) in the S&P SmallCap 600 respectively.
• Zurn Elkay Water Solutions Corp. (ZWS), Clear Secure Inc. (YOU), TG Therapeutics Inc. (TGTX), Inspire Medical Systems Inc. (INSP), CSW Industrials Inc. (CSWI), ADMA Biologics Inc. (ADMA), and Impinj Inc. (PI) will replace Community Healthcare Trust Inc. (CHCT), Varex Imaging Corp. (VREX), Dine Brands Global Inc. (DIN), Nu Skin Enterprises Inc. (NUS), AMC Networks Inc. (AMCX), Olympic Steel Inc. (ZEUS) and B. Riley Financial Inc. (RILY) in the S&P SmallCap 600 respectively.

• Celsius Holdings Inc. (CELH) mentioned positively in Barron’s noting the energy drink maker slumped in recent months amid signals that the company’s growth had slowed, but the article noted those market reactions may be overblown as the company is expected to expand overseas, sell more online and get more products on grocery shelves.

• Joby Aviation Inc (JOBY) files for resale of up to 3.3M shares by the selling stockholder.
• Methanex (MEOH) said on Sunday it will acquire OCI Global’s methanol business in a cash-and-stock deal for $2.05B.
• NASA selects companies for commercial SmallSat Services Award worth up to $476M including BlackSky (BKSY), Planet Labs (PL), and Satellogic (SATL) – announced late Friday.
• Iron ore futures prices dropped for the seventh straight session on Monday as tepid Chinese economic data continued to weigh on the key consumer’s demand outlook for steel; Reuters noted the most-traded January iron ore contract on China’s Dalian Commodity Exchange ended morning trade 1.32% lower at 673 yuan ($94.70) a metric ton (lowest in a year)

• East West Bancorp Inc. (EWBC) lowered its full year loan growth outlook in an investor update. Now sees loan growth of 2% to 4% this year, previously it saw 3% to 5%.

• Summit Therapeutics (SMMT) demonstrated that the company’s experimental therapy has done what no other has done before: beat Merck’s (MRK) Keytruda in a head-to-head late-stage trial in lung cancer. The drug reduced the risk of tumor progression by 49% compared to the standard of care. – STAT News. https://tinyurl.com/2xcv8xyr
• A person in Missouri who didn’t report any contact with animals has tested positive for H5 bird flu, the state’s Department of Health and Senior Services and the Centers for Disease Control and Prevention said Friday. It’s not yet clear if the person was infected with the same virus strain that’s causing the ongoing outbreak among dairy cattle.