Indicators
Wake Up Call
- Hello ! Stock futures rose and bond yields fell after the latest inflation data reinforced speculation the Federal Reserve will be able to cut rates this year. Fed swaps are pricing in more easing in 2024.
- DATAS :
* US CPI MM, SA* (Jun) -0.1% vs. Exp. 0.1% (prev. 0.0%)
* US Core CPI MM, SA* (Jun) 0.1% vs. Exp. 0.2% (Prev. 0.2%); Unrounded 0.065% (prev. 0.163%)
* US Core CPI Index, SA* (Jun) 318.35 (Prev. 318.14)
* US Initial Jobless Claims w/e 222.0k vs. Exp. 236.0k (Prev. 238.0k, Rev. 239k)
* US Continued Jobless Claims w/e 1.852M vs. Exp. 1.86M (Prev. 1.858M, Rev. 1.856M)
* US Jobless Claims 4-Wk Avg w/e 233.5k (Prev. 238.5k, Rev. 238.75k)
Wall Street Movers
ALCOA +1.7% reported 2Q preliminary adj. EBITDA that beat the average analyst estimate. Sees lower alumina production and higher aluminum shipments for that period.
CONAGRA -1.60% cut FY25 organic net sales -1.5% to 0%, est +0.72% and adj EPS $2.60 to $2.65, est $2.69. Mixed 4Q results w/ net sales $2.91b, est $2.93n and adj EPS 61c, est 57c. Board of Directors has authorized the continuation of the Company’s annualized dividend rate of $1.40/sh >> peer LB -2%
COSTCO WHOLESALE +2.5% is boosting its basic membership fee for the first time since 2017, raising the charge for most memberships to $65 a year from $60.
DELTA AIRLINES -9% expects profit this quarter to fall short of est as heavy competition in the domestic market drives ticket prices down. 2Q adj revenue $15.41b, est $15.43b ; adj EPS $2.36, est $2.38 >> AAL -4.80% ; UAL -4.70%
PEPSICO -1.70% 2Q Net revenue $22.50b missed est $22.59b ; Core EPS $2.28 vs est $2.15. Still sees FY core EPS at least $8.15, est $8.16. Says shift to permissible snacks and zero sugar drinks are not related to weight loss drugs like NOVO NORDISK's weight loss drug Wegovy and is a broader consumer trend.
PFIZER +2.80% advances development of once-daily formulation of oral GLP-1 receptor against Danuglipron; ongoing study shows favourable pharmacokinetic profile for Danuglipron
At A Glance
- APPLE settles EU antitrust probe over Tap-and-Pay tech ; avoids EU fine.
- ESTEE LAUDER CFO Tracey Travis to depart later this year (WWD)
- JOHNSON & JOHNSON strengthens pipeline to lead in atopic dermatitis with the completion of the acquisition of Yellow Jersey Therapeutics, gaining ownership of NM26
- LUCID will need to continue raising money (CEO)
- RALPH LAUREN CEO says China is doing very well for co.
- QUANTUMSCAPE soars 30% after entering a pact with Volkswagen Group’s battery company PowerCo for lithium-metal technology.
Broker Moves
UPGRADES
- BIG LOTS raised to hold at Loop Capital
- OWENS CORNING raised to buy at Citi; PT $191
- REPUBLIC SERVICES raised to buy at Truist Secs; PT $220
- TEXAS INSTRUMENTS price target raised to $156 from $150 at Morgan Stanley
DOWNGRADES
- ABERCOMBIE & FITCH cut to hold at Argus
- DARDEN downgraded at Jefferies
- MICROCHIP TECHNOLOGY Morgan Stanley downgraded the chipmaker to equal-weight from overweight
- ON SEMICONDUCTOR cut by MS to underweight from equal weight
- STARBUCKS cut to negative at OTR Global
- UNITED THERAPEUTICS cut to equal-weight at Morgan Stanley
- WILLIAMS-SONOMA cut to sell at CFRA
INITIATIONS
- CITIZENS FINANCIAL rated new market perform at Raymond James
- ELECTRONIC ARTS assumed buy at Jefferies; PT $165
- NISOURCE rated new outperform at Mizuho Securities; PT $33
- UNUM rated new overweight at Piper Sandler; PT $57
Today's Key Events (UK Time)
- 4:15pm Fed's Bostic Speaks in Moderated Q&A
- 6:00pm Fed's Musalem Speaks in Q&A on Economy
- 7:00pm Monthly Budget Statement
Game Of Corporate Actions
DIV EX DATE
- Today : Accenture ($1.29); General Electric Co ($0.28); Oracle Corp ($0.4)
- Tomorrow : IDEX Corp($0.69)
EARNINGS
- Tomorrow bef mkt : JPM (@ noon) ; CITIGROUP (@ 1pm) ; WELLS FARGO (@ noon) ; Bank of New York Mellon; Fastenal