Early Look

Friday, September 13, 2024

U.S. futures are edging quietly higher, looking to make it a 5^th straight day of gains for the S&P and Nasdaq after rallying 5.27% and 3.46% respectively this week so far, as investors erase most of last week’s pullback with all eyes focused on the FOMC meeting next week; anticipating a rate cut of at least 25-bps. S&P futures with narrow trading band overnight, roughly 20 points hitting highs of 5,617 after major stock averages closed near their highs for a second day on Thursday. Oil is headed for its first weekly advance after Hurricane Francine disrupted production. Gold prices touched new all-time highs this morning, up another +0.5% and rising as high as $2,600. The dollar falls to 140.52 against the Japanese yen overnight. In Asian markets, The Nikkei Index fell -251 points to 36,581, the Shanghai Index dropped -13 points to 2,704, and the Hang Seng Index rose 128 points to 17,369. In Europe, the German DAX is up 94 points to 18,613, while the FTSE 100 rises 21 points to 8,262. Treasury yields edge lower. In stock news, ORCL jumps over 5% after providing upbeat long-term guidance (after good earnings last week) while in home improvement retail, RH soars on earnings results, lifting comps (W, WSM). No Fed speakers expected, economic data coming up included Michigan sentiment and Import/Export Prices, and no major earnings this morning.

• The Dow Jones Industrial Average rose 235.06 points, or 0.58%, to 41,096.77.
• The Nasdaq Composite jumped 174.15 points, or 1.00%, to 17,569.68.
• The Russell 2000 Index advanced 25.57 points, or 1.22% to 2,129.42.

• 10:00 AM ET                University of Michigan Confidence, Sept-Prelim…est. 68.5 (prior 67.9)
• 10:00 AM ET                University of Michigan 1-yr and 5-yr inflation expectations
• 1:00 PM ET                   Baker Hughes Weekly rig count data

• U.S. consumers’ late payments on credit cards and other loans are starting to level off in recent months after rising earlier in the year, bankers and industry analysts said this week. The trend contrasts with recent data showing a surge in credit card loans being written off across the industry, as some Americans get back on a firmer financial footing.
• Russian Central bank raises key rate to 19.00%.

• Bath and Body Works (BBWI) said it will hire 30,000 new seasonal associates at its more than 1,800 stores in the US, Canada and Puerto Rico and 2,700 distribution center associates for its four central Ohio distribution centers.
• Flutter (FLUT) said it will buy a 56% stake in NSX Group, the operator of Brazilian gaming group Betnacional, for about $350 million as it seeks to expand in the soon-to-be regulated market.
• Keurig Dr Pepper Inc (KDP) increases annualized dividend rate by 7.0% to $0.92 per share.

• Halliburton (HAL) was downgraded to Sector Perform from Outperform and cut tgt to $37 from $44 saying the stock’s lower overall revenue diversification disadvantages it in a tepid commodity macro, making it less attractive.

• Moderna (MRNA) downgraded to Underweight from Neutral at JPMorgan and cut tgt to $70 from $88 saying while the reset to Moderna’s long-term guidance should not come as a surprise, JPMorgan is still lowering estimates.

• DigitalBridge Group Inc. (DBRG) is considering options including a sale of Southeast Asian firm EdgePoint Infrastructure, people with knowledge of the matter said – Bloomberg https://tinyurl.com/bdhyj992
• Oracle Corp. (ORCL) providing l-t guidance at a conference last night for 2026, up to 2029 (note they reported earnings last week and had backed FY25 revenue growth view up double digits); said forecasts at least $66B revenue in fiscal year 2026 and forecasts at least $104B revenue in fiscal year 2029.
• Salesforce (CRM) has unveiled Agentforce, a groundbreaking suite of autonomous AI agents that augment employees and handle tasks in service, sales, marketing, and commerce, driving unprecedented efficiency and customer satisfaction.
• Sony Music (SONY) is in advanced talks to buy the rights to music recorded by legendary English rock group Pink Floyd for about $500 million, the Financial Times reported on Friday.