September S&P 500 E-Mini futures (ESU24) are down -0.10%, and September Nasdaq 100 E-Mini futures (NQU24) are up +0.03% this morning as market participants geared up for U.S. weekly jobless claims data and the next round of quarterly results while also awaiting remarks from a Federal Reserve official.
In yesterday’s trading session, Wall Street’s major indices closed lower. Super Micro Computer (SMCI) tumbled over -20% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the artificial intelligence server company reported weaker-than-expected Q4 adjusted EPS. Also, Airbnb (ABNB) plunged more than -13% after the company reported mixed Q2 results, issued below-consensus Q3 revenue guidance, and warned of slowing demand from U.S. vacationers. In addition, Charles River Laboratories (CRL) slumped over -12% after lowering its FY24 guidance. On the bullish side, Fortinet (FTNT) surged more than +25% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the cybersecurity firm posted upbeat Q2 results, offered solid Q3 guidance, and lifted its full-year revenue forecast. Also, Axon Enterprise (AXON) advanced over +18% after the company reported better-than-expected Q2 results and raised its FY24 revenue guidance.
Economic data on Wednesday showed that U.S. consumer credit increased by +$8.93B in June, weaker than expectations of +$9.80B.
Meanwhile, U.S. rate futures have priced in a 27.5% chance of a 25 basis point rate cut and a 72.5% probability of a 50 basis point rate cut at the September FOMC meeting.
On the earnings front, notable companies like Eli Lilly (LLY), Gilead Sciences (GILD), Datadog (DDOG), Expedia (EXPE), The Trade Desk (TTD), Take-Two Interactive (TTWO), Paramount Global (PARA), and Capri Holdings (CPRI) are slated to release their quarterly results today.
On the economic data front, investors will focus on U.S. Initial Jobless Claims data, set to be released in a couple of hours. Economists estimate this figure to come in at 241K, compared to last week’s number of 249K.
U.S. Wholesale Inventories data will be reported today as well. Economists expect June’s figure to be +0.2% m/m, compared to +0.6% m/m in May.
In addition, market participants will be looking toward a speech from Richmond Fed President Thomas Barkin.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 3.913%, down -1.34%.
The Euro Stoxx 50 futures are down -0.79% this morning, erasing some of the previous session’s gains as the market struggled to maintain its recovery from the recent sell-off and investors continued to weigh the economic and monetary outlook. Technology and mining stocks led the declines on Thursday. Meanwhile, investors are waiting for German inflation data due on Friday to gain a clearer picture of Europe’s largest economy as it contends with a potential recession. In corporate news, Entain Plc (ENT.LN) surged over +9% after the British gambling group reported better-than-expected Q2 results and boosted its full-year guidance. Also, Deutsche Telekom Ag (DTE.D.DX) rose more than +1% after the telecom firm reported an increase in its Q2 net profit and lifted its full-year free cash flow guidance.
The European economic data slate is empty on Thursday.
Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed flat, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.74%.
China’s Shanghai Composite Index reversed early losses and ended flat today, bucking weakness in broader Asian markets, as some investors possibly viewed the Chinese market as a safe haven despite a stuttering economic recovery. Property stocks advanced on Thursday, buoyed by positive sentiment after Shenzhen unveiled a citywide initiative to purchase unsold housing inventories and turn them into public housing. At the same time, shipping and automobile stocks lost ground. Meanwhile, Montreal-based BCA Research upgraded its rating on Chinese offshore stocks to Neutral from Underweight and increased its rating on onshore shares to Overweight from Neutral in a report on Wednesday. It noted that Chinese risk assets may experience less downturn compared to their global counterparts if the latter fall into bear markets. In other news, the National Association of Financial Market Institutional Investors, a regulatory agency supported by the People’s Bank of China, announced on Wednesday that it is investigating four rural commercial banks in eastern Jiangsu province for possibly manipulating government bond prices. Investor focus is now on Chinese inflation data for July, set for release on Friday, which is expected to provide valuable insights into China’s economic health.
Japan’s Nikkei 225 Stock Index closed lower today after the Bank of Japan indicated potential further monetary tightening. Financial and technology stocks underperformed on Thursday, while energy stocks gained ground. Data released by the Finance Ministry on Thursday revealed that Japan’s current account surplus grew to 1,533.5 billion yen in June from 1,519.4 billion yen in the same month a year earlier, marking the 17th consecutive month of surplus in the current account. Meanwhile, a summary of opinions from last week’s Bank of Japan meeting released on Thursday indicated that some BOJ board members advocated for the continued increase of interest rates, with one suggesting they should eventually rise to at least around 1%. In other news, Japanese Finance Minister Shunichi Suzuki stated on Thursday that authorities are closely monitoring stock market developments but are not yet in the phase of taking specific actions. In corporate news, Lasertec soared over +22% after the microchip equipment maker announced that its full-year net profit is expected to increase by 25%. Also, Nitori Holdings climbed more than +8% after the home interior goods retailer reported a 7.5% increase in its quarterly recurring profit. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +3.55% to 46.62.
The Japanese June Current Account n.s.a. came in at 1.534T yen, weaker than expectations of 1.790T yen.
The Japanese July Economy Watchers Current Index arrived at 47.5, stronger than expectations of 47.4.
Pre-Market U.S. Stock Movers
Bumble (BMBL) plummeted about -35% in pre-market trading after the company reported mixed Q2 results, provided below-consensus Q3 revenue guidance, and trimmed its full-year revenue growth forecast.
Dutch Bros (BROS) plunged more than -20% in pre-market trading after the company raised its full-year revenue guidance, but the midpoint of the revised forecast was slightly below the consensus estimate.
Warner Bros. Discovery (WBD) slumped over -11% in pre-market trading after the company posted downbeat Q2 results.
Monster Beverage (MNST) slid more than -8% in pre-market trading after reporting weaker-than-expected Q2 results and warning of declining demand.
Zillow (ZG) climbed over +11% in pre-market trading after reporting a narrower-than-expected Q2 loss and naming a new chief executive.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - August 8th
Eli Lilly (LLY), Gilead (GILD), Brookfield (BN), Parker-Hannifin (PH), CRH (CRH), The Trade Desk (TTD), Cheniere Energy (LNG), Datadog (DDOG), Martin Marietta Materials (MLM), Restaurant Brands Int (QSR), Vistra Energy (VST), Take-Two (TTWO), Pembina Pipeline (PBA), TKO Holdings (TKO), Royalty Pharma (RPRX), News Corp (NWS), Expedia (EXPE), NRG (NRG), News Corp A (NWSA), Akamai (AKAM), Insulet (PODD), Viatris (VTRS), Credicorp (BAP), US Foods (USFD), Natera Inc (NTRA), Endeavor Group (EDR), Sendas Distribuidora (ASAI), ADS (WMS), Insmed (INSM), Lamar (LAMR), Cyberark Software (CYBR), ELF Beauty (ELF), Sharkninja (SN), Solventum (SOLV), Americold Realty (COLD), Onto Innovation (ONTO), Roivant Sciences (ROIV), Dropbox (DBX), Paramount Global (PARA), Cytokinetics Inc (CYTK), Choice Hotels (CHH), Genpact (G), Unity Software (U), Shift4 Payments Inc (FOUR), Murphy Oil (MUR), Nexstar (NXST), Nova (NVMI), Stepstone (STEP), MDU Resources (MDU), Sealed Air (SEE), Doximity (DOCS), Verra Mobility (VRRM), Avnet (AVT), Haemonetics (HAE), Main Street Capital (MAIN), Hilton Grand Vacations (HGV), Crinetics Pharma (CRNX), Nelnet (NNI), Capri Holdings (CPRI), B2Gold (BTG), Primo Water (PRMW), Walker&Dunlop (WD), Prestige Consumer Health (PBH), DXC Technology (DXC), Goodrx (GDRX), Euronav (CMBT), Cogent (CCOI), Arrowhead Pharma (ARWR), Five9 (FIVN), Douglas Emmett (DEI), Amicus (FOLD), Sweetgreen (SG), Under Armour A (UAA), Diodes (DIOD), Medical Properties (MPW), Synaptics (SYNA), Resideo Tech (REZI), Burford (BUR), Geron (GERN), CleanSpark (CLSK), DigitalOcean Holdings (DOCN), Consol Energy (CEIX), PENN Entertainment (PENN), Chesapeake Utilities (CPK), Evolent Health Inc (EVH), NAble (NABL), Paymentus (PAY), First Advantage (FA), Bloom Energy (BE), CarGurus (CARG), AMN Healthcare Services (AMN), Spectrum Brands (SPB), Rocket Lab USA (RKLB), Tecnoglass (TGLS), 10X Genomics (TXG), Privia Health Group (PRVA), Yelp (YELP), Globalstar Inc (GSAT), Lifestance Health Group (LFST), Iovance Biotherapeutics (IOVA), Arhaus (ARHS), Grindr (GRND), Nuscale Power (SMR), GCM Grosvenor (GCMG), Hanesbrands (HBI).
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