Gapping down
In reaction to earnings/guidance:
- JOAN -17.7%, ASAN -8.8%, HCP -8.6%, ZUMZ -5.9%, CRWD -4.7%, RH -4.2% (also authorizes an additional $2 bln to stock repurchase program), IOT -3.2%, COO -2.3%, AAL -1% (guidance)
Other news:
- TSLA -5% (Elon Musk tweets "Tesla AI Day pushed to Sept 30 as we may have an Optimus prototype working by then")
- KREF -4.9% (prices offering of 7.0 mln shares of common stock)
- COIN -4.1% (will extend its hiring pause for the foreseeable future and rescind a number of accepted offers)
- FARO -2.6% (names new chairman)
- DM -2.3% (stock offering)
- RIOT -1.9% (provides production and operations update for May)
- PINS -1.7% (to acquire THE YES)
- SAVE -1.6% (Spirit Airlines and Frontier Airlines (ULCC) amend merger agreement; reverse termination fee of $250 million offers greater stockholder protections)
- TS -1.5% (resolves SEC investigation into legacy issue in Brazil)
Analyst comments:
- AON -1.5% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
- MMC -1.3% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
Gapping up
In reaction to earnings/guidance:
- OKTA +15.8%, STNE +12.9%, PHR +5.6%, NAPA +4.6%, NX +4.6%, STKL +3.3% (reaffirms guidance), DOOO +3%, PD +1.7%, ALK +1% (updates its Q2 outlook; raises Q2 revenue guidance), CVGW +0.7%
Other news:
- TPTX +116.8% (Bristol Myers Squibb (BMY) will acquire Turning Point Therapeutics for $76.00 per share; expected to be accretive to Non-GAAP earnings per share beginning in 2025)
- AMLX +24.9% (receives PDUFA date extension for AMX0035; scheduled for September 29)
- KSS +7.3% (auction delayed indefinitely as several suitors bowed out according to NY Post)
- CHGG +6.3% (increases securities repurchase program by $1 bln)
- BIOT +6.3% (Biotech Acquisition Company and Blade Therapeutics postpone Extraordinary Meeting of Shareholders to approve proposed business combination)
- TGTX +6.1% (Announces Presentation of Exploratory Analyses from the ULTIMATE I & II Phase 3 Trials of Ublituximab in Multiple Sclerosis at the 2022 Consortium of Multiple Sclerosis Centers Annual Meeting)
- IPHA +5% (Announces IPH5201 Phase 2 Study in Lung Cancer)
- LOCO +4.9% (names new CFO)
- ALXO +4% (announces evorpacept clinical program updates)
- WOR +1.8% (acquires Level5 Tools for $55 mln)
- ICPT +1.4% (announces new clinical trial and real-world outcomes data for Ocaliva in PBC; plans to include these data in an evidence package that will be submitted to U.S. FDA in 2H 2022)
- AEO +1.2% (announces a series of actions to strengthen capital structure)
- AUPH +1% (presented data demonstrating the efficacy of LUPKYNIS for the treatment of people with lupus nephritis)
Analyst comments:
- POR +1.8% (upgraded to Buy from Neutral at Goldman)
- HT +0.9% (upgraded to Buy from Hold at Jefferies)
- VOYA +0.9% (upgraded to Buy from Neutral at Goldman)
- MLM +0.7% (upgraded to Overweight from Neutral at JP Morgan)
Early premarket gappers
- Gapping up:
- OKTA +17.7%, STNE +17%, IPHA +8%, NAPA +7.1%, NX +6.8%, KSS +6.6%, BIOT +6.3%, CHGG +5.9%, PHR +5.6%, LOCO +4.9%, DOOO +3.5%, PD +3%, GREE +2.6%, WOR +1.8%, CLPT +1.6%, LULU +1.5%, ALK +1%, CVGW +0.7%, IOT +0.6%
- Gapping down:
- JOAN -19.2%, ZUMZ -7.9%, ASAN -5%, KREF -4.9%, CRWD -4.6%, COO -3.2%, FARO -2.6%, COIN -2.5%, AMT -1.7%, TS -1.6%, MMAT -1.1%, RIOT -1%, SAVE -0.6%, RH -0.6%, DM -0.5%
>>> Up
* Brenntag Raised to Buy at Baader Helvea; PT 102 euros
* Exel Composites Raised to Buy at OP Corporate Bank
* Martin Marietta Raised to Overweight at JPMorgan; PT $410
* Rheinmetall Raised to Buy at M.M. Warburg; PT 240 euros (+)
* Springvest Raised to Reduce at Inderes; PT 6.70 euros
* Wacker Chemie Raised to Hold at SocGen; PT 173 euros (+)
>>> Down
* Harvia Cut to Accumulate at OP Corporate Bank; PT 47 euros
* Lions Gate Target Cut at Barrington in Spinoff Anticipation
* Micron Cut to Underweight at Piper Sandler; PT $70
>>> Initiation
* Greenvolt Rated New Neutral at Mediobanca SpA; PT 7.82 euros
* PGS Resumed Buy at Kepler Cheuvreux; PT 13 kroner (+)
>>> Call
- TUI (TUI1 TH) +3.4%
- Vestas (VWSB TH) +2%
- Adidas (ADS TH) +1.8%
- Leonardo (FMNB TH) +1.8%
- Brenntag (BNR TH) +1.7%
- Voestalpine (VAS TH) +1.7%
- Kingspan (KRX TH) -3.4%
US State Department struggles to get its fact sheet straight on Taiwan
- After triggering an angry response from Beijing, officials amend document on relations with Taipei for the second time in weeks
- Latest change restores a line making clear that Washington does not support independence for the island
The US State Department has again updated its fact sheet on its relations with Taiwan, restoring a line to say it does not support independence for the self-ruled island, which Beijing regards as its territory.
The department changed its US relations with Taiwan fact sheet on May 5, deleting a declaration in place since 2018 that it “does not support Taiwan independence”.
But the line was reinstated in a new version dated May 28, in a change first reported by the Taiwanese Central News Agency on Friday.
“We oppose any unilateral changes to the status quo from either side; we do not support Taiwan independence; and we expect cross-strait differences to be resolved by peaceful means,” the latest version says.
The earlier update – which also removed a section recognising the People’s Republic of China as the sole legal government of China – triggered an angry response from Beijing, which regards the island as a breakaway province to be returned, by force if necessary.
The Chinese foreign ministry accused the US of using a “petty trick” with the amendment, to hollow out the one-China principle.
The fact sheet changes follow confusing signals from Washington regarding its policies towards Taiwan, after US President Joe Biden answered “yes” to the question of whether the US would back up the island militarily if it was attacked from the mainland.
His remarks sparked concerns last month over whether Washington is still following its long-standing policy of strategic ambiguity, which is deliberately unclear about US intentions in the event of a PLA attack on Taiwan.
Biden and other US officials later appeared to walk back the comment, saying US policy on Taiwan had not changed.
US State Department spokesman Ned Price said in May that the US does not support Taiwan independence and “we have repeatedly made this clear both in public and in private”.
US President Joe Biden says US military will defend Taiwan if attacked
Analysts said Beijing and Taipei should not read too much into Biden’s remarks. In their assessment, Washington does not want to see a cross-strait conflict.
Ties between Washington and Taipei have become closer in recent years – to the dismay of Beijing which fiercely opposes other countries forming official relations with the island.
On Wednesday, the US launched an economic cooperation initiative with Taipei, which Beijing denounced as a move that would endanger China-US relations.
US Secretary of Defence Lloyd Austin told Nikkei Asia in a written interview published on Wednesday that “the United States will make available to Taiwan defence articles and services necessary to enable it to maintain a sufficient self-defence capability commensurate with the Chinese threat”.
Chinese foreign ministry spokesman Zhao Lijian told reporters on Thursday that Beijing had always firmly opposed US arms sales to Taiwan, “which seriously infringe on China’s sovereignty and territorial integrity and seriously interfere in China’s internal affairs”.
DAX:
- Adidas (ADS TH) +1.8%
- Puma (PUM TH) +1.7%
- Daimler Truck (DTG TH) +1.6%
- Brenntag (BNR TH) +1.3%
- Brenntag Raised to Buy at Baader Helvea; PT 102 euros
- Delivery Hero (DHER TH) +1.2%
- Deutsche Bank (DBK TH) +0.5%
MDAX:
- Aroundtown (AT1 TH) +1.5%
- Wacker Chemie (WCH TH) +1.1%
- Wacker Chemie Raised to Hold at SocGen; PT 173 euros
- ProSieben (PSM TH) +1.1%
- Aurubis (NDA TH) +1.1%
- Watch Copper Stocks as Metal Surges on China Reopening Optimism
- Lanxess (LXS TH) +1%
SDAX:
- Deutz (DEZ TH) +2%
- VERBIO Vereinigte (VBK TH) +1.6%
- About You (YOU TH) +1.1%
- flatexDEGIRO (FTK TH) +0.8%
- Suedzucker (SZU TH) +0.8%