Indicators
Wake Up Call
- Hello ! US stocks are set to rise to another all-time high as traders await Federal Reserve Chair Jerome Powell’s testimony to Congress
- FED CHAIR POWELL TESTIMONY - Powell is likely to reiterate the commentary he made at the ECB's Sintra conference last week, where he said that modest further progress on inflation has been seen this year, but officials still needed 'greater confidence' before moving on to rate cuts. On the labour market specifically, a number of participants said policy should stand ready to respond to unexpected economic weakness, with the vast majority seeing US economic growth as having cooled gradually. Money markets have fully discounted two rate cuts this year, with around 51bps of rate cuts priced in by the end of the year; this pricing has moved dovishly in the wake of the June jobs data. This is in contrast to the Fed's median projection, which has pencilled in just one reduction this year. The first cut is fully priced by November, though there is around an 80% chance of it being seen in September.
- S&P 500 - Morgan Stanley strategist Michael Wilson said that investors should prepare for a stock-market correction due to uncertainties around US politics, corporate earnings, and Federal Reserve policy. He told Bloomberg that he predicts a 10% equity market correction is likely before the election, driven by the uncertainty.
- GSIB - Fed is considering updating how it calculates extra capital Global Systemically Important Banks (GSIB) must hold, according to sources cited by Reuters. Fed is mulling an update to its GSIB surcharge, in line with economic growth, potentially saving banks billions of dollars in capital, Reuters says. No final decision has been made, and deliberations are ongoing.
Wall Street Movers
- HELEN DE TROY -28% toward a record one-day selloff, after the consumer products company reported a big fiscal 1Q earnings miss and slashed its FY outlook, amid particular weakness in its beauty and wellness business.
- HELIOS TECHNOLOGIES -11% as CEO Josef Matosevic was placed on paid leave following allegations of a potential violation of the manufacturer’s code of conduct.
- INDUSTRIALS US industrials companies are expected to see a better year in 2025 no matter which candidate wins the US presidential election, but 2016 results suggest a higher business optimism and thus higher potential capital spending under a President Trump scenario, Jefferies analyst writes in a note.
At A Glance
- ELI LILLY Patients more likely to lose weight with Mounjaro than Ozempic, study says
- MODERNA, Mitsubishi Tanabe to Co-Promote mRNA Vaccines in Japan
- ORACLE & PALANTIR announce new innovation in cloud and AI to power businesses and governments globally
- PFIZER is replacing its chief scientific officer
- UNIQURE announced updated interim data including up to 24 months of follow-up for 29 treated patients in Phase 1/2 clinical trials of AMT-130 for the treatment of Huntington’s disease.
Broker Moves
UPGRADES
- BANK OF AMERICA upgraded to Neutral at Piper on inflecting net interest income
- CH ROBINSON Raised to Neutral at JPMorgan; PT $87
- CORNING Raised to Hold at HSBC; PT $37
- LENNAR Raised to Neutral at Wedbush; PT $144
- PRINCIPAL Upgraded at Raymond James on Growth Acceleration
DOWNGRADES
- NEXTERA ENERGY PARTNERS Cut to Market Perform at Raymond James
- PARAMOUNT Wolfe Cuts to Underperform
INITIATIONS
- AVERY DENNISON Rated New Buy at Stifel; PT $274.64
- EQUIFAX Rated New Outperform at Wolfe; PT $275
- INTERNATIONAL PAPER Rated New Hold at Stifel; PT $48.70
Today's Key Events (UK Time)
- 2.15pm Fed's Barr Speaks on Financial Inclusion
- 3.00pm Fed's Powell Testifies to Senate Banking Committee
- 6.30pm Fed's Bowman Speaks on Promoting Inclusive Financial System
Game Of Corporate Actions
DIV EX DATE
- Today : Dollar General Corp($0.59); Mastercard ($0.66); Salesforce ($0.4)
- Tomorrow : AT&T ($0.2775); Darden Restaurants ($1.4); General Mills ($0.6); Intuit ($0.9); UDR ($0.425); Verizon Communications ($0.665)
EARNINGS
- Tomorrow aft mkt : Costco Wholesale Corp