Indicators
Wake Up Call
- Hello ! US equity futures were lower Tuesday as traders looked ahead to a speech from Federal Reserve Chair Jerome Powell for insights into the country's economy and inflation.
- FED POWELL to appear on a panel at the ECB's Sintra conference at 2.30pm UK ; will appear alongside ECB President Lagarde and BCB chief Campos Neto. In June, speaking after the FOMC policy announcement, where rates were left on hold, Chair Powell gave away little new information, and largely repeated what had been said before: he stressed that the Fed needs to see more evidence that inflation is returning to target in a sustainable way, though if the economy remained solid and inflation persists, the Fed was prepared to maintain rates at current levels for as long as appropriate. Powell also noted that no officials had rate hikes in their base case scenario, and repeated that if there was an unexpected weakening in the labour market, the Fed would be prepared to act, adding that if unemployment comes in above what the Fed expects, that would be considered an unexpected weakening.
- US JOLTS - Traders will also eye data on US job openings later Tuesday. Strength in hiring has so far helped the economy weather aggressive Fed tightening, which brought interest rates to the highest levels in two decades. With inflation still running above the central bank’s 2% target, the fear is that any further softening in labor conditions could start to snowball and put economic growth at risk.
- NO KINGS IN AMERICA - US President Biden said regarding the presidential immunity ruling that there are no kings in America and no one is above the law, while he added the decision means there are virtually no limits on what a president can do and it is a dangerous precedent. Biden said it is highly unlikely that a decision on Trump and January 6th will come before the election and the American people must decide whether Trump's assault on democracy makes him unfit to be president, as well as noted that Trump will be more emboldened to do what he wants to do. In relevant news, former President Trump moved to overturn his Manhattan conviction citing the Supreme Court immunity decision, according to NYT.
- EQUITY MARKET CLOSURE
- Half Session in the US on Wednesday (closing @ 6pm UK - Independence day observed)
- US closed on Thursday (Independence day)
Wall Street Movers
- AMAZON flat Amazon’s international arm is expected to achieve an annual profit, reversing years of losses, FT reports. Analysts predict a $1.6b operating profit in 2023, rising to over $5b next year. Improved logistics in key markets like Germany and the UK have driven this turnaround, the report added.
- BOEING flat is to plead guilty to fraud or face a criminal trial under DoJ offer, according to FT
- ELI LILLY -1.70% and Novo Nordisk are charging "unconscionably" high prices for their prescription drugs, President Joe Biden and Sen. Bernie Sanders said in a joint op-ed Tuesday in USA Today.
- GAMESTOP -1.80% a shareholder sued Keith Gill for allegedly orchestrating a “pump-and-dump” scheme, only to withdraw the suit days later.
- PARAMOUNT +3.6% Barry Diller is exploring a bid to take control of Paramount, according to NYT. Separately, Co. is reportedly hunting for a streaming partner and could kick off a wave of deals, via CNBC, Warner Bros. Discovery has an interest in merging Max and Paramount+ as a joint venture, according to CNBC citing sources.
- TESLA flat is projected to report a 5.8% drop in quarterly deliveries Tuesday, its second consecutive decline. The weakness underscores its struggle to keep up with rivals’ fresher offerings. Shares are down almost 16% this year.
- US IPO - NORTHERN DATA is said to be considering a US IPO of its AI unit that may fetch a valuation of as much as $16b.
At A Glance
- J&J says Carvykti beat standard drugs in late-stage blood cancer trial
- MODERNA wins bird flu vaccine deal with the US government
- SALESFORCE Shareholders rejected CEO Marc Benioff's compensation plan, with 404.8mln votes against and 339.3mln in favour.
- VIATRIS announced antitrust division of US DoJ advised it no longer considers Mylan, and its former President Rajiv Malik, a subject of its investigation in the generic drug industry
Broker Moves
UPGRADES
- ATLASSIAN Upgraded to Overweight at Piper Sandler; PT USD 225
- BANK OF AMERICA Upgraded to Buy at Seaport Global Securities
- COMERICA Upgraded to Outperform at Raymond James; PT USD 60
- FIRST CITIZENS Upgraded to Outperform at Raymond James; PT USD 1,900
- PAYPAL Upgraded to Positive at Susquehanna; PT USD 71
- PRINCIPAL FINANCIAL Upgraded to Neutral at JPMorgan; PT USD 96
- Buy at Goldman; PT USD 32 Waystar Holding (WAY) Initiated at New Overweight at JPMorgan; PT USD 24
DOWNGRADES
- CROWNDSTRIKE Downgraded to Neutral at Piper Sandler; PT USD 400
- DR HORTON Downgraded to Neutral at Citi; PT USD 156
- FIVERR Downgraded to Neutral at UBS; PT USD 25
- GOLDMAN SACHS Downgraded to Neutral at Seaport Global Securities
- INCYTE Downgraded to Underperform at BMO; PT USD 48
- LENNAR Downgraded to Market Perform at Raymond James + Downgraded to Neutral at Citi
INITIATIONS
- ADOBE Initiated at New Buy at CMB International; PT USD 645
- GE VERNOVA Initiated at New Neutral at Redburn; PT USD 178
Today's Key Events (UK Time)
2.30pm : Powell, Lagarde, Campos Neto Speak in Sintra
3pm : JOLTS Job Offer
Game Of Corporate Actions
DIV EX DATE
- Today : Republic Services ($0.535), Agilent Techologies ($0.236)
- Tomorrow : Campbell Soup ($0.37); Comcast ($0.31); Progressive ($0.1)
EARNINGS
- Tomorrow : Constellation Brands