Wake Up Call
- Hello ! Wall Street was poised to open steady today as traders retreated to the sidelines ahead of speeches by a slew of Fed policymakers. Activity thinned out sharply on Monday, with daily turnover on the NYSE at the lowest this year.
- “Markets’ hesitation reflects the change in central bankers’ stance as they have gone from being openly willing to cut rates to calling for patience,” said the head of macro research at Lombard Odier AM. “Sentiment is split, as higher rates can hit equities but it also means we are seeing better growth and earnings.”
- The main focus for markets is Wednesday’s results from NVIDIA, which has powered a large chunk of the S&P 500’s recent earnings. Co. shares rose 2.5% in New York on Monday, sending the Nasdaq 100 index to another record high.
Wall Street Movers
- LAM RESEARCH +4.3% approved a $10bn share repurchase authorization and a forward split of its outstanding shares of common stock at a ratio of 10:1.
- KEYSIGHT -2.6% sees Q3 adj EPS 4cst $1.30 to $1.36 ($1.45 exp) / Q2 adj EPS $1.41 ($1.39 exp)
- LOWE +2.7% Q1 Comparable sales -4.1% (-5.64% exp) / Net sales $21.36bn ($21.13bn exp) / Still sees FY25 EPS $12.00 to $12.30 ($12.17) / Comparable sales -2% to -3%, estimate -2.43%.
- MACY’S +3.4% boosts FY25 adj EPS $2.55 to $2.90, saw $2.45 to $2.85 ($2.62 exp) / Net sales $22.3bn to $22.9bn, saw $22.2bn to $22.9bn ($22.64bn exp) / Q1 Adj EPS 27c (14c exp).
- NORDSON -11% Q3 sales 4cst $645mn to $670mn ($705.3mn exp) / adjusted EPS $9.35 to $9.75, saw $10 to $10.50 ($10.23 exp) / Q2 EPS $2.05 ($2.31 exp) / Sales $650.6mn ($661.4mn exp) due to increased pressure from the agriculture cycle in Europe, which is causing OEMs to slow investments in spray implement purchases.
- PALO ALTO -6% Q4 rev 4cst $2.15bn to $2.17bn ($2.17bn exp) / Billings $3.43bn to $3.48 billion ($3.47bn exp) / Q3 Adj EPS $1.32 ($1.26 exp).
- PELOTON -5% as the company said it will offer $275m convertible senior notes due 2029 and enter into a $1b five-year term loan facility as it refinances debt.
- VINFAST -7.5% after TechCrunch reported that a fatal crash is under federal investigation by the National Highway Traffic Safety Administration.
- XPENG +5.4% Q2 rev 4cst ¥7.5bn to ¥8.3bn (¥9.24bn exp) / Q1 rev ¥6.55bn, ¥6.11bn.
- ZOOM -2% Q2 adj EPS 4cst $1.20 to $1.21 ($1.24 exp) / rev $1.15bn to $1.15bn ($1.15bn exp) / Q1 Rev $1.14bn ($1.13bn exp) / Adj EPS $1.35 ($1.19 exp).
At A Glance
- AMAZON Norway’s wealth fund said it would vote in favor of a resolution calling on Co. to disclose more information regarding the company’s lobbying payments and policies.
- AUTOZONE Q3 Comparable sales +1.9% (+3.3% exp) / EPS $36.69 ($35.95 exp) / Net sales $4.24bn ($4.29bn exp) / AutoZone repurchased $734.7mn of shares.
- BRISTOL MYERS was reassigned a PDUF goal date from the FDA for their BLA for the subcutaneous formulation of Opdivo.
- ELI LILLY China gave the greenlight to Eli Lilly’s blockbuster drug Tirzepatide for use in treating diabetes, a move that will intensify the drugmaker’s rivalry with Novo Nordisk overweight-loss drugs in the world’s second-largest market.
- EXXON MOBIL and SHELL are among energy giants evaluating bids for a stake in GALP ENERGIA’s major oil field offshore Namibia.
- IBM will release a family of AI models as open-source software, and it will help Saudi Arabia train an AI system in Arabic.
- KKR to acquire a minority stake in India’s Infinx, which provides automated and AI-backed billing support for health-care providers.
- SOUTHWEST AIRLINES said it will apply to the US Department of Transportation for daily nonstop service between Washington National Airport and Las Vegas.
Key Events
Tuesday
14:00 Fed's Barkin Gives Welcome Remarks, Fed's Waller Discusses US Economy
14:05 Fed's Williams Gives Opening Remarks
14:10 Fed's Bostic Offers Brief Welcome Remarks
13:30 US Philadelphia Fed Non-Manufacturing Activity
16:45 Fed's Barr Speaks in Fireside Chat
Wednesday
12:00 US MBA Mortgage Applications
14:40 Fed's Goolsbee Gives Opening Remarks
15:00 US Existing Home Sales
19:00 FOMC Meeting Minutes
Thursday
13:30 Initial Jobless Claims
14:45 S&P Global US Manufacturing & Services & Composites PMI
15:00 US New Home Sales
20:00 Fed's Bostic Participates in Student Q&A
Friday
13:30 US Durable Goods Orders, Cap Goods Orders & Ship Nondef Ex Air
14:35 Fed's Waller Gives Keynote Address on R*
15:00 U. of Mich. Sentiment
Game Of Corporate Actions
DIV EX DATE
- Today : Aflac ($0.5); Amcor ($0.125); Equinix ($4.26); MarketAxess ($0.74); Microchip Technology ($0.452); Teradyne ($0.12)
- Tomorrow : Discover FInancial ($0.70); SBA ($0.98); Walmart ($0.40)
TODAY EARNINGS
- Results aft mkt : --
TOMORROW
Results bef mkt : NVIDIA ; PDD ; Synopsys ; Target ; TJX
Results aft mkt : --