- Adyen (1N8 TH) +2.8%
- Adyen Raised to Overweight at Barclays; PT 900 euros
- Nel (D7G TH) +1.2%
- Nel Chooses Detroit Suburb for Next Gigafactory
- Kion (KGX TH) +0.9%
- BAT (BMT TH) +0.6%
- BAT’s Vuse Vape Items Targeted in Healthier Choices Patent Suit
- Subsea 7 (SOC TH) +0.5%
- SUBSEA 7 GETS RECOMMMENDATION FOR ‘MAJOR’ SUBSEA CONTRACT
- Puma (PUM TH) -0.5%
- Investors Remain Vigilant About Increases in CEO Compensation
- Vonovia (VNA TH) -0.5%
- Sartorius (SRT3 TH) -0.6%
- Brenntag (BNR TH) -0.6%
- TUI (TUI1 TH) -0.6%
- HelloFresh (HFG TH) -0.8%
- Stellantis (8TI TH) -0.9%
- Musk: UAW Demands Would Drive Big Three Bankrupt in ‘Fast Lane’
- Vodafone (VODI TH) -1%
- Macquarie, Abrdn in Talks for Digi Spain Fiber Stake: Expansion
- H&M (HMSB TH) -1.7%
- H&M Warns September Sales Are Sliding on Hot Autumn Weather
- NN Group (2NN TH) -5.6%
- NN to Appeal Court’s Interim Ruling on Unit-Linked Insurance
DAX:
- Zalando (ZAL TH) +1.2%
- Deutsche Bank (DBK TH) -0.5%
- Deutsche Bank Names Luis Mendes Chief Country Officer for Brazil
MDAX:
- Kion (KGX TH) +1%
- Telefonica Deutschland (O2D TH) +0.6%
- TAG Immobilien (TEG TH) -2.6%
- TAG Immobilien Cut to Hold at HSBC; PT 11 euros
SDAX:
- KWS Saat (KWS TH) +4%
- KWS Saat Sees 2024 Ebit Margin 11% to 13%
- Deutz (DEZ TH) +1.8%
- Eckert & Ziegler (EUZ TH) +1.6%
- Schaeffler (SHA TH) +0.8%
- Heidelberger Druck (HDD TH) +0.7%
- Deutsche PBB (PBB TH) +0.5%
>>> Up
* Acciona Raised to Sector Perform at RBC; PT 125 euros
* Acciona Energia Raised to Outperform at RBC; PT 31 euros
* Adyen Raised to Overweight at Barclays; PT 900 euros
* DSV Raised to Overweight at JPMorgan; PT 1,390 kroner
* Johnson Controls Raised to Buy at HSBC; PT $69
* Logitech Raised to Neutral at BNPP Exane; PT 69 Swiss francs
* Logitech Raised to Neutral at BNPP Exane; PT 69 Swiss francs
* Soltec Power Raised to Buy at JB Capital Markets; PT 5.60 euros
* Wienerberger Raised to Overweight at Morgan Stanley
>>> Down
* Agripower France Cut to Hold at Stifel; PT 2.30 euros
>>> Down
* Agripower France Cut to Hold at Stifel; PT 2.30 euros
* British Land Cut to Underperform at Jefferies; PT 250 pence
* Centrica Cut to Equal-Weight at Morgan Stanley; PT 190 pence
* Derwent London Cut to Hold at Jefferies; PT 1,913 pence
* Great Portland Cut to Hold at Jefferies; PT 387 pence
* Kuehne + Nagel Cut to Underweight at JPMorgan
* Land Sec. Cut to Underperform at Jefferies; PT 465 pence
* TAG Immobilien Cut to Hold at HSBC; PT 11 euros
>>> Initiation
>>> Initiation
* L'Oreal Rated New Outperform at CICC; PT 450 euros
* RELX Re-Initiated Buy at Berenberg; PT 3,270 pence
* RELX Re-Initiated Buy at Berenberg; PT 3,270 pence
* Secure Rated New Buy at Investec; PT 1,745 pence
>>> Call
* British Land Among Cuts at Jefferies on Weak Office Outlook
>>> Call
* British Land Among Cuts at Jefferies on Weak Office Outlook
* Centrica Cut at Morgan Stanley as Stock Reaches Fair Value
* Wienerberger Raised, Too Much Pessimism in Price: Morgan Stanley
Asian stocks held near the lowest levels since March, under pressure from a likely protracted period of higher US interest rates and a relentless property crisis in China. A benchmark of Asian shares fell for a third straight session as benchmarks in Japan and Australia declined, while losses in South Korean shares placed the Kospi Index on track for a six-month low. Equities in Hong Kong gained with those on the mainland cooling after sharp gains earlier as China reported improved industrial profits, in a rise that appeared to shrug off further turmoil in the property sector. A gauge of Chinese property developers fell for a third day. Cifi Holdings Group Co. shares halved after trading was reinstated after a six-month break, China Evergrande Group’s billionaire founder and chairman Hui Ka Yan was placed under police control, and Country Garden Holdings Co Ltd faced fresh interest payment deadlines. A looming holiday that will shut markets on the mainland for six trading days also added to the sentiment. US equity futures ticked higher after the S&P 500 and Nasdaq 100 indexes both slumped 1.5% Tuesday. The selling pushed Wall Street’s fear gauge — the Cboe Volatility Index or VIX — to the highest since May after US consumer confidence fell to a four-month low. Pressure on equities left the MSCI All Country World Index, one of the broadest measures of global equities, lower for a ninth day, heading for its longest losing streak in more than a decade. China will just about meet its economic growth target of around 5% for this year, the latest Bloomberg survey shows, although the ongoing property crisis is raising the risk of a miss.
Yields on Treasuries remain near decade highs while the Bloomberg dollar index held around its 2023 peak. The yen remains near 149 per dollar, keeping traders on edge for any step up in language from Japanese officials to gauge whether intervention to support the currency is on the horizon. One Fed speaker after another in the past week has delivered emphatic messages that they will keep policy tighter for longer if the economy is stronger than expected. The Fed’s hikes have hit consumer sentiment which dropped to 103 from a revised 108.7 in August, missing the median estimate of 105.5 in a Bloomberg survey of economists.
Meanwhile, Senate Democratic and Republican leaders agreed Tuesday on a plan to keep the government open through mid-November and provide $6 billion in assistance to Ukraine. The plan to avert a shutdown on Oct. 1 still needs to overcome gridlock in the House. Elsewhere in Asia, Australia’s monthly inflation gauge accelerated, reflecting global trends amid higher oil prices, bolstering the case for the Reserve Bank to hike at least one more time. In commodities, oil resumed its climb, moving back above $91 a barrel, as the effect of rapidly tightening supplies outweighed a weakening risk appetite in broader markets, while gold held around $1,900 an ounce. US After Hours COST -1.5% lower on earnings; MLKN +17% higher on earnings; HAYW +8.4% to join S&P SmallCap 600; MLI +2.9% declares 2-for-1 stock split.
Nikkei -0,09% Hang Seng +0,59% CSI +0,29% Shanghai +0,30% Shenzen +0,57%
Eur$ CNH CNY JPY GBP CHF RUB TRY WTI$ Gold BTC ETH
S&P +0,27% Nasdaq +0,24% EuroStoxx +0,12% FTSE -0,12% Dax +0,01% SMI
Macro :
- Quant Trader Mulvaney Gains 60% Fueled by Soft Commodities
- Las Vegas Culinary Union Members Vote to Authorize Strike
- VIX Index’s Only Rival Faces Extinction After Petition Is Denied
Keep an eye on :
Keep an eye on :
- ARGX BB : Argenx Slides After Rival Immunovant Reported Drug Trial Results
- AKE FP : Arkema Targets €12B Sales, ~18% Ebitda Margin by 2028
- BMPS IM : Italy May Hire Adviser for Paschi Stake Sale, Messaggero Reports
- BEIJB SS : Beijer Ref Buys AMSCO Supply; Sees Minor Positive Result Impact
- BSP NO : Black Sea Property Offers Up to NOK6.5 million Shares
- FLS DC : FLSmidth Gets DKK200 Million Order for South Africa Copper Mine
- GAM SW : Newgame Proposes GAM CEO Candidate, Up to CHF100m Funding
- HMB SS : *H&M 3Q OPER PROFIT SEK4.74B, EST. SEK4.53B
- HELN SW : Helvetia 1H Business Volume CHF6.69B
- HBH GY : Hornbach Holding 2Q Adjusted Ebit EU111.9M
- KWS GY : KWS Saat Sees 2024 Ebit Margin 11% to 13%
- NWOR LN : National World Arranging Backing for Telegraph Bid: Sky News
- NEXT NO : Next Biometrics Offering of 12m Shares Prices at NOK5/Share
- NN NA : NN to Appeal Court’s Interim Ruling on Unit-Linked Insurance
- NN NA : NN to Appeal Court’s Interim Ruling on Unit-Linked Insurance
- NOVOB DC : Novo Sees Controlled Wegovy Launches in Next Markets: Berlingske
- OSSD SS : OssDsign Offers SEK150 million Shares, Offering of 26.3m Shares Prices at SEK5.70/Share
- PDG LN : Pendragon to Consider Unsolicited Takeover Offer from AutoNation
- RNO FP : Renault: Alliance Model Moves Toward Project-By-Project Approach
- SBBB SS : Swedish Landlord SBB Sells Hospital to Strengthen Balance Sheet
- SHEL LN : Shell Limits Diesel Sales at Some Polish Stations as Prices Drop
- SHLF NO : Shelf Drilling Offering of 19.4m Shares Prices at NOK33/Share
- UBSG SW : UBS Seeks to Wipe Out €1.8 Billion Tax Fine at Top French Court
- FR FP : Valeo CEO Sees Limited Impact So Far from UAW Strikes in US
- VLTSA FP : Voltalia Cuts FY Outlook Following Brazil Blackouts
OpenAI Seeks New Valuation of Up to $90 Billion in Sale of Existing Shares
Startup was valued at about $29 billion in share sale earlier this year
OpenAI is talking to investors about a share sale that would value the artificial-intelligence startup behind ChatGPT at between $80 billion to $90 billion, almost triple its level earlier this year.
The startup, which is 49% owned by Microsoft MSFT -1.70%decrease; red down pointing triangle, has told investors that it expects to reach $1 billion in revenue this year and generate many billions more in 2024, people familiar with the discussion said.
OpenAI ignited the current artificial intelligence fervor in Silicon Valley by releasing ChatGPT in November. While the basic version of the app is free, the company has been able to generate revenue mainly by charging individuals for access to a powerful version of ChatGPT and licensing the large language models behind that AI bot to businesses.
The deal is expected to allow employees to sell their existing shares as opposed to the company issuing new ones to raise additional capital. OpenAI representatives have begun pitching investors on the deal, the people said, though it is possible the terms could change.
The company is aiming to sell a few hundred million dollars worth of shares to Silicon Valley investors. In the past, venture firms like Sequoia Capital and Khosla Ventures have purchased OpenAI shares.
A valuation of $80 billion or more would make OpenAI one of the most highly-valued global startups, behind Elon Musk’s SpaceX and TikTok owner ByteDance.
The transaction would immediately give Microsoft a huge paper profit. The tech giant invested billions of dollars in the startup in January to help finance the intensive computing costs necessary to train its advanced AI models. At the time, OpenAI was valued at around $29 billion.
The company, run by Chief Executive Sam Altman, only began generating significant revenue after the release of ChatGPT in November, and its fast growth speaks to the speed at which some companies are embracing generative AI products.
This employee share sale could set a minimum price for any such additional fundraising from outside investors. OpenAI is widely expected to raise more money by issuing new shares as it seeks to keep up with computing costs required to develop and maintain its AI systems.
Altman is already fielding intense interest from investment giants like Masayoshi Son’s SoftBank, people familiar with the matter say. A capital raise would be separate from the tender offer process under way now.
OpenAI was formed in 2015 as a research-oriented nonprofit backed by Musk and other investors to build safe AI technology. In 2019, it shifted to a “capped profit” structure so it could accept billions of dollars in investments it needed to pay for computing power and hire senior AI talent from tech giants like Alphabet’s Google.
The shift triggered a backlash among a large faction of safety researchers at OpenAI, who worried that the change would lead the organization to give priority to profits over the safe development of the technology, The Wall Street Journal reported. Some of those researchers eventually left to start a rival lab called Anthropic, which signed an investment of as much as $4 billion from Amazon.com this week.
Altman has said he doesn’t plan for OpenAI to go public or sell itself to a buyer, meaning that these routine sales of existing shares are an important way for employees to cash out on stock.
OpenAI is intent on Microsoft holding a minority stake in the company, people familiar with the matter said, meaning that the tech giant likely wouldn’t be able to buy shares offered in any financing that would push its stake above 50%.
After Hours Summary: COST -1.5% lower on earnings; MLKN +17% higher on earnings; HAYW +8.4% to join S&P SmallCap 600; MLI +2.9% declares 2-for-1 stock split
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: MLKN +17%, RKLB +0.2% (guides Q3 revs below consensus)
Companies trading higher in after hours in reaction to news: HAYW +8.4% (to join S&P SmallCap 600), MLI +2.9% (declares 2-for-1 stock split), TVTX +2% (to present abstracts), PCRX +0.8% (CEO to retire), OVV +0.7% (renews share buyback program), SEVN +0.5% (names new CFO), IMVT +0.5% ($300 mln stock offering), AFRM +0.3% (WEAV partners with AFRM to expand payment options), TEVA +0.2% (Federal judge overturns $176.5 mln loss in TEVA lawsuit according to Reuters), WEAV +0.2% (WEAV partners with AFRM to expand payment options), PLTR +0.1% (awarded $250 mln U.S. Army contract)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: PRGS -1.6%, COST -1.5%, AIR -0.1%
Companies trading lower in after hours in reaction to news: MORF -6.2% (CEO to take a medical leave of absence), CIVI -2% (to move to S&P MidCap 400 from S&P SmallCap 600), ADVM -1.2% (announces Aflibercept Protein data from LUNA Phase 2 Trial), DHC -0.9% (names new CFO; also hires financial advisor to help it evaluate options to address near term capital needs), CRBU -0.6% (ABBV terminates collaboration and license agreement), VLD -0.4% (CFO resigns), CNC -0.3% (plans a 3% workforce reduction according to BizJournals), LLY -0.1% (Federal judge overturns $176.5 mln loss in TEVA lawsuit according to Reuters)
Closing Stock Market Summary
The major indices all fell more than 1.0% today, erasing yesterday's modest rebound right out of the gate. The negative bias was due in part to ongoing worries about higher interest rates.
The 10-yr note yield climbed another two basis points today to 4.56%, after hitting 4.48% at this morning's low, despite some weaker than expected new home sales and consumer confidence data released this morning. The 2-yr note yield rose two basis points to 5.12%.
Concerns about higher rates were stoked by JPMorgan Chase CEO, Jamie Dimon, who told the Times of India that he is not sure the world is prepared for 7%, and Minneapolis Fed President Kashkari (FOMC voter), who said, according to Bloomberg, that he thinks another rate hike before year end would likely be needed if the economy is stronger than expected.
Seasonality was cited as another potential factor contributing to the negative price action. September, historically, has been the worst month of the year for the S&P 500. With today's losses, the S&P 500, Nasdaq Composite, and Russell 2000 are now down 5.2%, 6.9%, and 7.2%, respectively, this month.
Mega caps and semiconductor stocks paced broad based losses, but it was the rate-sensitive utilities sector (-3.1%) that saw the biggest decline today. The Vanguard Mega Cap Growth ETF (MGK) fell 1.7% and the PHLX Semiconductor Index fell 1.8%. The market-cap weighted S&P 500, which fell 1.5%, closed below 4,300 for the first time since early June and near its worst level of the day.
Decliners had a nearly 6-to-1 lead over advancers at the NYSE and a greater than 2-to-1 lead at the Nasdaq. Volume picked up from yesterday, but remained below average at the NYSE and Nasdaq.
All 11 S&P 500 sectors closed in the red. The energy sector (-0.5%) saw the smallest decline as oil prices climbed ($90.49/bbl, +0.87, +1.0%). The consumer discretionary sector (-2.0%) was another laggard of note along with the information technology (-1.8%) and real estate (-1.8%) sectors.
Separately, Amazon.com (AMZN 125.98, -5.29, -4.0%) was an individual standout of note to the downside following news that the FTC and 17 state attorneys general are suing the company for illegally maintaining monopoly power.
- Nasdaq Composite: +24.8% YTD
- S&P 500: +11.3% YTD
- S&P Midcap 400: +1.7% YTD
- Dow Jones Industrial Average: +1.4% YTD
- Russell 2000: UNCH YTD
Reviewing today's economic data:
- July FHFA Housing Price Index 0.8%; Prior was revised to 0.4% from 0.3%
- July S&P Case-Shiller Home Price Index 0.1% ( consensus 0.5%); Prior -1.2%
- September Consumer Confidence 103.0 (consensus 105.0); Prior was revised to 108.7 from 106.1
- The key takeaway from the report is that the drop in consumer confidence was driven by consumers' weakening expectations for future business conditions, job availability, and incomes, all of which has the potential to translate into softer spending activity.
- August New Home Sales 675K (consensus 695K); Prior was revised to 739K from 714K
- The key takeaway from the report is that new home sales activity, which is measured on signed contracts, is being adversely impacted by high mortgage rates that have hurt affordability. New home sales in August were the lowest since March.
Looking ahead to Wednesday, participants will receive the following economic data:
- 7:00 ET: Weekly MBA Mortgage Index (prior 5.4%)
- 8:30 ET: August Durable Orders ( consensus -0.2%; prior -5.2%) and Durable Orders ex-transportation consensus 0.3%; prior 0.5%)
- 10:30 ET: Weekly crude oil inventories (prior -2.14 mln)