Morning Markets
December E-Mini S&P 500 futures (ESZ23) are up +0.27%, and Dec Nasdaq 100 E-Mini futures (NQZ23) are up +0.17%.
Stock index futures this morning are moderately higher on lower bond yields. Also, some positive corporate news is giving stock index futures a lift. The markets are awaiting the University of Michigan’s U.S. Nov consumer sentiment report later this morning for market direction.
On the positive side, Doximity Inc is up more than +17% in pre-market trading after reporting stronger-than-expected Q2 adjusted Ebitda and raising its 2024 adjusted Ebitda forecast. Also, Hologic Inc is up more than +1% after reporting Q4 revenue above consensus. In addition, Dentsply Sirona, Toast Inc, and Southwestern Energy are all up more than +2% after being upgraded to outperform.
On the negative side, Illumina is down more than 10% after reporting weaker-than-expected Q3 revenue and cutting its full-year revenue forecast. Also, Unity Software is down more than -14% after reporting Q3 revenue below consensus, and Trade Desk is down more than -22% after forecasting Q4 revenue below consensus.
The markets are discounting a 10% chance for a +25 bp rate hike at the next FOMC meeting on Dec 12-13 FOMC and a 22% chance for that +25 bp rate hike at the following FOMC meeting on Jan 30-31, 2024. The markets are then expecting the FOMC to begin cutting rates later in 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European government bond yields today are mixed. The 10-year T-note yield is down -3.8 bp at 4.587%. The 10-year German bund yield is up +5.4 bp at 2.701%. The 10-year UK gilt yield is up +3.1 bp at 4.304%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.77%. China’s Shanghai Composite Index closed down -0.47%. Japan’s Nikkei Stock Index closed down -0.24%.
The Euro Stoxx 50 today is moderately lower. Some disappointing corporate news is weighing on stocks, with Diageo Plc down more than -14% after unexpectedly warning on its outlook for the first half of 2024, citing “materially weaker” sales in Latin America and the Caribbean. Also, European luxury stocks are under pressure, with Richemont down more than -5% after reporting an unexpected drop in earnings in the first half. In addition, higher European government bond yields are weighing on stocks after Fed Chair Powell on Thursday warned that interest rates may have to climb further.
Comments from ECB President Lagarde suggest she favors pausing ECB rate hikes when she said that keeping the deposit rate at its current 4% should be enough to tame inflation.
UK Q3 GDP was unch q/q and +0.6% y/y, stronger than expectations of -0.1% q/q and +0.5% y/y.
China’s Shanghai Composite today posted moderate losses. Chinese gaming stocks retreated today after Wynn Macau reported disappointing Q3 earnings. Also, technology stocks were under pressure after Hua Hong Semiconductor sank more than -10% after reporting Q3 earnings that were below consensus. Also, Chinese electric vehicle makers retreated following losses in Tesla on Thursday after HSBC initiated a sell-equivalent rating on the stock. Losses in the overall market were limited as property stocks rose after PBOC Governor Gongsheng said China’s property sector risks are under control.
Japan’s Nikkei Stock Index today closed slightly lower. Japanese stocks moved lower on negative carryover for Thursday’s slide in U.S. stocks after Fed Chair Powell warned that interest rates may have to rise further. Some disappointing corporate earnings results also weighed on the overall market when Softbank and Sony retreated after reporting results that missed expectations. Strength in exporter stocks limited losses in the overall market after the yen fell to a 1-week low against the dollar. Stocks also found some support after Japan’s cabinet approved a 13.2 trillion yen ($87.2 billion) extra budget to support Prime Minister Kishida’s latest economic package.
Pre-Market U.S. Stock Movers
Doximity Inc (DOCS) soared more than +17% in pre-market trading after reporting Q2 adjusted Ebitda of $54.2 million, better than the consensus of $44.8 million, and raising its 2024 adjusted Ebitda forecast to $207 million-$219 million from a previous forecast of $193 million-$209 million, stronger than the consensus of $200.4 million.
Hologic Inc (HOLX) rose more than +1% in pre-market trading after reporting Q4 revenue of $945.3 million, better than the consensus of $938.7 million.
Dentsply Sirona (XRAY) is up more than +2% in pre-market trading after William Blair upgraded the stock to outperform from market perform.
Toast Inc (TOST) climbed more than +2% in pre-market trading after Baird upgraded the stock to outperform from neutral.
Southwestern Energy (SWN) rose more than +2% in pre-market trading after Wolfe Research upgraded the stock to outperform from underperform.
Illumina (ILMN) slumped more than 10% in pre-market trading after reporting Q3 revenue of $1.12 billion, below the consensus of $1.13 billion, and cut its full-year revenue forecast to down -2% to -3% from a previous view of up about +1%.
Unity Software (U) sank more than -14% in pre-market trading after reporting Q3 revenue of $544.2 million, below the consensus of $549.8 million.
Wynn Resorts Ltd (WYNN) tumbled more than -5% after reporting Q3 Macau adjusted property Ebitdar of $77.9 million, well below the consensus of $94.6 million.
Trade Desk (TTD) plunged more than -22% in pre-market trading after forecasting Q4 revenue of $580 million, well below the consensus of $610.2 million.
Groupon (GRPN) plummeted more than -30% in pre-market trading after reporting an unexpected Q3 EPS loss of -12 cents, much weaker than the consensus of an +11 cents EPS profit.
Green Dot Corp (GDOT) tumbled more than -11% in pre-market trading after reporting Q3 adjusted EPS of 14 cents, well below the consensus of 21 cents, and Craig-Hallum Capital Group LLC downgraded the stock to hold from buy.
Earnings Reports (11/10/2023)
AirSculpt Technologies Inc (AIRS), American Realty Investors Inc (ARL), Aura Biosciences Inc (AURA), Boston Omaha Corp (BOC), Caledonia Mining Corp PLC (CMCL), Chase Corp (CCF), Contango ORE Inc (CTGO), HilleVax Inc (HLVX), Immuneering Corp (IMRX), Kezar Life Sciences Inc (KZR), Larimar Therapeutics Inc (LRMR), MeiraGTx Holdings plc (MGTX), NextDecade Corp (NEXT), Nuvalent Inc (NUVL), Poseida Therapeutics Inc (PSTX), Rain Oncology Inc (RAIN), RAPT Therapeutics Inc (RAPT), Savara Inc (SVRA), SKYX Platforms Corp (SKYX), StoneCo Ltd (STNE), System1 Inc (SST), Transcontinental Realty Invest (TCI), Waldencast plc (WALD).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
