- CTS Eventim (EVD TH) +2%
- Hugo Boss (BOSS TH) +1.8%
- Hugo Boss Upgraded at Jefferies, Sees Guidance as Conservative
- GSK PLC (GS7 TH) +1.6%
- Renault (RNL TH) +1.5%
- Anglo American (NGLB TH) +1.3%
- Lanxess (LXS TH) +0.9%
- Air Liquide (AIL TH) +0.9%
- Unilever (UNVB TH) +0.9%
- Nestle, Henkel Cut at MS With Defensive Qualities to Be Tested
- Novo Nordisk (NOVC TH) -1.1%
- Adidas (ADS TH) -1.1%
- Asian Sportswear Stocks Decline on Nike’s Downbeat Forecast
- HelloFresh (HFG TH) -1.2%
- Henkel (HEN3 TH) -2.5%
- Nestle, Henkel Cut at MS With Defensive Qualities to Be Tested
- Prosus (1TY TH) -3.6%
- Tencent Leads China Tech Losses as Prosus Sale Plan Sours Mood
- Stock gained about 24% over the past three trading days
DAX:
- Adidas (ADS TH) -1.1%
- Asian Sportswear Stocks Decline on Nike’s Downbeat Forecast
- HelloFresh (HFG TH) -1.3%
- Henkel (HEN3 TH) -2.1%
- Nestle, Henkel Cut at MS With Defensive Qualities to Be Tested
MDAX:
- Hugo Boss (BOSS TH) +2%
- Hugo Boss Upgraded at Jefferies, Sees Guidance as Conservative
- CTS Eventim (EVD TH) +1.9%
- Thyssenkrupp (TKA TH) +1.2%
SDAX:
- VERBIO Vereinigte (VBK TH) +2%
- Ceconomy (CEC TH) +1.8%
- Wacker Neuson (WAC TH) +1.7%
- Adler Group (ADJ TH) -3.7%
Stocks struggled for traction in Asia on Tuesday as a global bounce from a bear market stalled amid ongoing worries about high inflation and slowing economic growth. An Asian equity index fell for the first session in four. Chinese tech shares were among the weaker performers on concerns that investors may look to take profits after a strong rally.
US and European equity futures dipped following losses for the S&P 500 and Nasdaq 100 on Monday. Institutional portfolio rebalancing at month- and quarter-end may also be affecting trading flows. Caution in the Asian session was evident in a stronger yen and a climb in Treasuries that left the 10-year yield around 3.17%. Crude rose past $110 a barrel -- Libya and Ecuador flagged potential output cuts on political unrest. Rallies in risk assets have proved fleeting this year as higher borrowing costs to fight inflation restrain economic activity. Some analysts argue still-bullish earnings estimates are next in line for a reality check. The People’s Bank of China pledged to keep monetary policy supportive to help the nation’s economy. It signaled that stimulus would likely focus on boosting credit rather than lowering interest rates. In the Bavarian Alps, Russia’s war in Ukraine and limiting its profits from rising energy prices have been among the main topics of discussion at a Group of Seven summit. G-7 leaders are set to instruct ministers to explore implementing a price cap on Russian gas. The leaders are also expected to mention a mechanism to cap prices on Russian oil in the final communique. US After Hours Lots of comments from banks on stress test, many plan to raise dividends; NKE -2.6% falls on earnings/guidance; FTX CEO pours cold water on HOOD -5% M&A talk, according to MarketWatch
Nikkei +0.42% Hang Seng -0.46% CSI +0.18% Shanghai +0.16% Shenzen +0.49%
Eur$ 1.0579 CNH 6.6961 CNY 6.6969 JPY 135.41 GBP 1.2267 CHF 0.9567 RUB 54.5031 TRY 16.5904 WTI$ 110.54 +0.89% Gold 1,825.35 +0.14% BTC 20,747 -0.72% ETH 1,186.82 -1.23%
S&P +0.13% Nasdaq +0.19% EuroStoxx -0.25% FTSE -0.02% Dax -0.26% SMI +0.06%
Macro :
- Goldman Sachs Says US Rates Market Underprices Recession Risk
- Pulled IPOs Are Starting to Pile Up Again in Europe: ECM Watch
- Credit Contagion from Record Fosun Rout Is Limited: China Today
- UK Plan to Override Brexit Deal Passes Hurdle Amid Tory Dissent
Keep an eye on :
- AIBG ID : Irish Govt. to Sell About 134M Shares in AIB Group: Terms
- AIR FP : Park Aerospace Says Fully Supports Airbus A320 Ramp-Up
- ACX GY : Bet-at-Home Says it Loses Legal Dispute; Cuts FY Rev. Forecast
- AKZA NA : AkzoNobel Names Gregoire Poux-Guillaume New CEO as of Nov. 1
- ACA FP : Credit Agricole Said to Eye Parts of Poland’s Getin Noble Bank
- BSLN SW : Basilea to File Ceftobiprole Antibiotic in US Around Year End
- CLNX SM : *CELLNEX SEEKS EU6B LOAN FOR DEUTSCHE TELEKOM TOWERS BID: CONFI
- ERICB SS : Ericsson, Vonage Working to Close Transaction Before End of July
- ERF FP : Eurofins Gets EU308m Offers to Repurchase EU600m of Hybrid Bonds
- GSK LN :GSK’s £40 Billion Consumer Arm Said to Pick Citi, UBS as Brokers
- HELN SW : Helvetia Increases Stake in Caser to 80%; No Terms
- HOOD US : Bankman-Fried’s FTX Said to Be Seeking Path for Robinhood Deal
- LAM LN : Lamprell, Blofeld In Talks for Debt Facility Payment Extension
- LUNE SS : Lundin Energy Cuts Est. Total Capital Costs For Karskruv to $90m
- MEDX SW : Medmix Chairman Won’t Run for Re-Election; Is New AkzoNobel CEO
- NESTE FH : Neste to Invest $2 Billion in New Renewable Products Refinery
- NKE US : Nike Shares Rise on 4Q Revenue Beat, Buyback Plans: Snapshot (1)
- EGL PL : Mota-Engil Wins EU128.8m Stadium Contract in Guinea
- OVS IM : OVS Signs MoU on Possible Purchase of Coin Department Stores
- S30 FP : Solutions 30 Enters Exclusive Talks for Purchase of EnergyGo
- SAN FP : Sanofi Says EU Commission Approves Xenpozyme as ASMD Treatment
- SAN SM : *SANTANDER HIRES CS, GOLDMAN SACHS TO BID FOR BANAMEX: EXPANSION
- SPM IM : Saipem Awarded ~$1.25b Contracts in the Middle East
- SHEL LN : Dutch Regulator Approves Shell, Total Cooperation in CO2 Storage
- SIE GY : Siemens to Buy Buildings Software Firm Brightly for $1.6 Billion
- SIE GY : VW Nears Deal to Sell Stake in Electrify America to Siemens: DJ
- STLA IM : Stellantis’s Italian Battery Plant to Start Production in 2026
- TSLA US ; Electrek.co: Tesla pauses some Berlin-built Model Y deliveries over electric motor issue https://t.co/UcolwJUf5I by
- TTE FP : French Strikes May Curb Output at Power Plants June 28-July 31
- TTE FP : Dutch Regulator Approves Shell, Total Cooperation in CO2 Storage
- TIT IM : Telecom Italia to Get State Guarantee for $2.1B Loan: Reuters
- VOW GY : VW Nears Deal to Sell Stake in Electrify America to Siemens: DJ
- WISE LN : UK Battery-Storage Firm Field Raises $95 Million of New Funding
>>> Up
* Dino Polska Raised to Overweight at Morgan Stanley; PT 342 zloty
* Legal & General Raised to Market Perform at KBW; PT 250 pence
* Molson Coors Raised to Neutral at Goldman; PT $54
* Saipem Raised to Buy at AlphaValue/Baader
>>> Down
* Aena Cut to Neutral at Oddo BHF; PT 130 euros
* Belimo Cut to Hold at Berenberg; PT 357 Swiss francs
* Boston Beer Cut to Sell at Goldman; PT $318
* Danske Bank Cut to Underweight at JPMorgan; PT 95 kroner
* Everfuel Cut to Neutral at SpareBank; PT 60 kroner
* Henkel Cut to Underweight at Morgan Stanley; PT 56 euros
* Nestle Cut to Equal-Weight at Morgan Stanley
* Nestle ADRs Cut to Equal-Weight at Morgan Stanley; PT $128
* Prosus Cut to Hold at Investec; PT 66 euros
* Severn Trent Cut to Underweight at JPMorgan; PT 2,700 pence
* Stillfront Cut to Sell at SEB Equities; PT 20 kronor
* VAT Cut to Hold at Berenberg; PT 286 Swiss francs
>>> Initiation
* Celanese Rated New Underperform at Credit Suisse; PT $105
* EDP Renovaveis Reinstated Buy at Jefferies; PT 27.50 euros
* EDP Rated New Buy at Jefferies; PT 5.70 euros
* GN Store Nord Reinstated Buy at Nordea; PT 450 kroner
* Marks Electrical Group Rated New Buy at Berenberg; PT 120 pence
* Softcat Rated New Buy at Shore Capital
* ZEN LN Rated New Corporate at Alternative Resource Capital
>>> Call
* Citi Cuts S&P 500 Target for Recession, Soft Landing Scenarios
* EDP, EDP Renovaveis Both Started With Buy Ratings at Jefferies
* Hugo Boss Upgraded at Jefferies, Sees Guidance as Conservative
* Nestle, Henkel Cut at MS With Defensive Qualities to Be Tested
* Softcat New Buy at Shore on ‘Robust’ Competitive Positioning
* VAT, Belimo Downgraded as Berenberg Slashes Swiss Industrial PTs
After Hours Summary: Lots of comments from banks on stress test, many plan to raise dividends; NKE -2.6% falls on earnings/guidance; FTX CEO pours cold water on HOOD -5% M&A talk, according to MarketWatchAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: None
Companies trading higher in after hours in reaction to news: KZR +104.7% (announces positive topline results from the MISSION Phase 2 trial), CRNT +24.4% (AVNW to acquire all shares of CRNT that it does not already own for $2.80/sh), SAVE +5.4% (JBLU increases offer to acquire SAVE), IVR +4.9% (reduces leverage and rotates Agency RMBS portfolio into higher coupons), MS +3.4% (discusses stress test results, to increase dividend and announces $20 bln share buyback plan), EPIX +3% (presents clinical update on EPI-7386), LOVE +2.6% (Lovesac and Joybird resolve patent litigation), GFF +2.5% (declares special cash dividend of $2/sh), GS +1.7% (discusses stress test results, to increase dividend by 25%), HPE +1.2% (announces a new partner program), HBAN +1% (discusses stress test results, exceeded all minimum capital levels), ULCC +1% (JBLU increases offer to acquire SAVE), PH +0.8% (awarded a max $444.4 mln DLA contract for actuators), ONB +0.7% (UMBF to acquire the health savings account business of ONB), C +0.3% (discusses stress test results, intends to maintain current dividend), LMT +0.2% (Sikorsky Aircraft awarded $2.28 bln Army contract; also reduces gross pension obligation by $4.3 bln), COF +0.2% (discusses stress test results, SCB is 3.1%), GILD +0.1% (resubmits NDA to FDA for lenacapavir), JPM +0.1% (discusses stress test results, intends to maintain current dividend)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: JEF -4.5% (also authorizes new $250 mln share repurchase program), CNXC -4.3%, NKE -2.6% (also authorizes new $18 bln share repurchase program), TCOM -0.3%
Companies trading lower in after hours in reaction to news: HOOD -5% (FTX CEO says co not having any active M&A conversations with HOOD, according to MarketWatch), LZB -3.1% (Lovesac and Joybird resolve patent litigation), RF -0.9% (discusses stress test results, to consider increasing dividend), F -0.2% (to recall of about 2,900 F-150 Lightning trucks due to a software issue, according to Reuters), GES -0.2% (completes previously disclosed $175 mln ASR program), STT -0.2% (discusses stress test results, to increase dividend by 10%, to begin its existing share repurchase program in Q4), BAC -0.1% (discusses stress test results, to increase dividend by 5%), BK -0.1% (discusses stress test results, to increase dividend by 9%), JBLU -0.1% (JBLU increases offer to acquire SAVE), CFG -0.1% (discusses stress test results, increases share repurchase authorization to $1 bln; will consider dividend increase)
Closing Stock Market SummaryThe major indices did not move a whole lot in either direction today which is not necessarily a bad thing for sentiment after last week's rally. Similar rally efforts this year have been met with a tendency to sell into the strength.
A general lack of conviction on both sides of the tape could be seen in the advance-decline line. Market breadth at both the NYSE and Nasdaq was roughly flat today.
The major indices were pulled down by the mega caps. The Vanguard Mega Cap Growth ETF (MGK) closed down 1.0%. Relative weakness here is not completely surprising as the mega caps outperformed last week with a gain of 8.0%.
The broader market held up better on the day, evidenced by the more modest 0.1% decline in the Invesco S&P 500 Equal Weight ETF (RSP). Most mega cap constituents closed in the red with Amazon.com (AMZN 113.22, -3.24, -2.8%) exhibiting the largest loss. Apple (AAPL 141.66, +0.00, +0.0%), the best performing mega cap, closed flat after Reuters reported today that Supreme Court decided not to hear Apple's patent challenge with Qualcomm (QCOM 127.18, +2.08, +1.7%).
Further showing that the mega caps pulled down the broader market is the outperformance seen in small and mid cap stocks. The Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.3%) both closed with modest gains.
Of the 11 S&P 500 sectors, three closed in the green. Energy (+2.8%) was the leader by a decent margin followed by the defensive-oriented utilities (+0.8%) and health care (+0.4%) sectors.
The top laggards were the consumer discretionary (-1.1%), communication services (-1.1%), materials (-0.8%), and information technology (-0.6%) sectors.
Separately, Treasury note yields settled the session near their highs of the day after some relatively soft auction results for the 2-yr and 5-yr note yields. The 2-yr note yield rose six basis points to 3.12% while the 10-yr note yield rose seven basis points to 3.19%.
Reviewing today's economic data:
- Total durable goods orders increased 0.7% month-over-month (consensus +0.1%) following an unrevised 0.4% increase in April. Excluding transportation, durable goods orders also increased 0.7% ( consensus +0.4%) following a downwardly revised 0.2% increase (from 0.3%) in April.
- The key takeaway from the report is that business spending held up quite well in May, evidenced by the 0.5% increase in nondefense capital goods orders excluding aircraft.
- May Pending Home Sales 0.7% (consensus -3.5%); Prior was revised to -4.0% from -3.9%
Looking ahead to Tuesday, market participants will receive the following economic data: May advance goods trade deficit (prior -$105.90 bln), May advance Retail Inventories (prior 0.7%), and May advance Wholesale Inventories (prior 2.1%) at 8:30 a.m. ET. April FHFA Housing Price Index (prior 1.5%) and April S&P Case-Shiller Home Price Index (Briefing.com consensus 21.1%; prior 21.2%) at 9:00 a.m. ET.
The June Consumer Confidence reading (consensus 101.0; prior 106.4), released at 10:00 a.m. ET, will be watched closely after the June Consumer Sentiment Index was the lowest result on record.
- Dow Jones Industrial Average: -13.5% YTD
- S&P 500: -18.2% YTD
- S&P 400: -17.7% YTD
- Russell 2000: -21.1% YTD
- Nasdaq Composite: -26.3% YTD
BoJ reportedly might have been loaded with ¥600B in unrealized losses on govt bond holdings earlier in June - Nikkei
- Bank could fall into negative net worth if interest rates rise further
ExxonMobil chief predicts continuing surge in oil markets
‘It’s a question of how high prices eventually rise’ to spur investment, says Darren Woods
ExxonMobil’s chief executive predicted a resurgence of investment in fossil fuel production as he blamed soaring oil and gas prices on an “optimistic view” about how quickly the energy transition can happen.
Darren Woods, the head of the biggest western oil and gas supermajor, said pressure to reduce emissions by cutting production before addressing demand had left the world struggling to meet energy needs.
Governments had not only failed to deal “with the demand side of the equation” but also did not recognise “that you need a fairly robust set of alternative solutions if you’re going to reliably and affordably meet the needs of people”, Woods told the Financial Times.
Global crude prices have surged this year to well more than $100 a barrel as Russia’s invasion of Ukraine has tightened oil markets, fuelling decades-high inflation around the world. Brent crude was trading at about $116 a barrel on Monday.
Speaking to the FT on stage at a conference in Brussels organised by the German Marshall Fund, Woods said he expected the oil price to continue to climb until it spurs renewed investment in output.
“They always say that the cure to high prices is high prices. And that’s exactly what I think we’ll see. So it’s a question of how high prices eventually rise.”
Unlike its European rivals BP and Shell, which have committed to reduce oil and gas production over time to help lower emissions, Exxon has steadfastly resisted pressure to cut its production plans, and has large oil investments planned in the US, Brazil and Guyana.
Exxon came under pressure during the Covid-19 pandemic from activist investors who pushed the company to outline an energy transition strategy and successfully installed new directors to its board. The company has since announced a goal to reduce emissions from its own operations to net zero by 2050, but has resisted calls from to commit to reducing emissions created when its products are burnt.
Woods hit out at so-called “scope 3” targets for fuel consumption as “a crude approach” that would have unintended consequences.
“You’re going to drive the production and the growth in oil and gas out of the most visible . . . most responsible companies, into less visible, less transparent and potentially less responsible companies,” he said.
Still, even Exxon has pulled back its annual capital expenditure plans on oil and gas developments from before the pandemic. It now plans to spend $20bn to $25bn a year through 2027, compared to plans in 2019 to spend $30bn or more a year.
Woods said the world’s “pipeline” of new oil and gas projects was “thinner than it was in the past”, and that even with high prices, oil companies worried about the long-term demand for their product. Supply from US shale rock formations was also “not as productive as it was in the past”, exacerbating the supply shortfall, he said.
“These are multibillion-dollars investments with long time horizons,” he said. “How do you think about that with the uncertainty associated with the transition? That is a difficult balance to strike.”