After Hours Summary: Biden releases COVID plan ahead of speech tonight; APLS -31.1% falls on clinical data; AFRM +19.5% and PLAY +7.4% rise on earnings; AOUT -7.2% and ZUMZ -3.7% fall on earningsAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: AFRM +19.5%, AMRK +8.5%, PLAY +7.4%, FIZZ +5.8%, PWSC +2.5%, ZS +2.1%, VRNT +1.1%
Companies trading higher in after hours in reaction to news: ISEE +46.1% (in reaction to peer APLS study results), TTOO +25.8% (T2SARS-CoV-2 panel proves capable of detecting the Mu B.1.621 and Iota B.1.526 variants), SANW +12.8% (INGR enters into stevia pilot production supply agreement with SANW), CDR +8.8% (confirms initiation of dual-track review of strategic alternatives; also names new CFO), CORT +7.1% (to present results from Phase 2 trial of relacorilant), DXLG +4.3% (stock offering), CBIO +3.4% (in reaction to peer APLS study results), AVID +1.9% (authorizes $115 mln share repurchase program), ATAI +1.9% (ATAI announces usability study of Introspect's digital therapeutic app technology), WFC +1.2% (issues statement on OCC enforcement action), HELE +1% (announces new $500 mln share repurchase authorization), SPNE +1% (KIDS enters into distribution agreement with SPNE for 7D Surgical FLASH Navigation platform), UIHC +0.9% (provides estimated catastrophe losses for Q3), STT +0.6% (stock offering), TYL +0.1% (acquires Arx)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: COOK -9.8%, AOUT -7.2%, SUMO -4.5%, CXM -4.4%, ZUMZ -3.7%, TTWO -2% (reiterates FY22 outlook; next GTA titles due out March '22), TDC -0.6% (provides highlights from Investor Day, reaffirms FY21 guidance, guides FY22 EPS below consensus)
Companies trading lower in after hours in reaction to news: APLS -31.1% (phase 3 DERBY study of pegcetacoplan did not meet endpoint; OAKS study met the primary endpoint), NFE -2.3% (NFE and Norsk Hydro finalize terms for natural gas supply to refinery), BXMT -2.2% (stock offering), WSC -1.1% (stock offering), PRCH -0.2% (acquires CSE Insurance and American Home Protect), BILL -0.2% (stock offering)
Now that we’re officially into the month of September, the launch of Apple’s fall products is closer than ever before. This year, we expect Apple to unveil the iPhone 13 lineup and the Apple Watch Series 7, while there are also new iPads and Macs on the horizon as well. Head below as we round up what to expect from Apple’s September 14 event.
Table of contents
Apple September 14 event details
Apple this week officially confirmed its highly-anticipated September event for September 14. The event will take place at 10 a.m. PT/1 p.m. ET and will be completely virtual due to the pandemic. Apple is teasing the event with the tagline: “California Dreaming.”
As has become the trend with Apple’s virtual events over the last 18 months, we expect the September event to be pre-recorded video with incredible production value. Expect appearances from Apple CEO Tim Cook and other Apple executives. You’ll be able to stream the event through Apple’s website, Apple’s YouTube channel, and through the Apple TV application on iPhone, iPad, and Mac.
- How to watch Apple’s iPhone 13 ‘California streaming’ event on any device
- Apple hypes next week’s iPhone 13 event with AR portal experience
iPhone 13
Unlike last year, which saw the iPhone 12 suffer from a delayed release in October and November, the iPhone 13 is believed to be on track for an announcement and release in September.
What can you expect from the iPhone 13 this year? As of now, rumors suggest that the iPhone 13 will be similar in design to the iPhone 12, but with a smaller notch. The iPhone 13 Pro and iPhone 13 Pro Max are expected to feature notable camera improvements, as well as ProMotion displays with 120Hz refresh rate support.
Most recently, Bloomberg and Ming-Chi Kuo reported that the iPhone 13 will feature new satellite communication technology. These features, which could be enabled via a software update in the future, would allow users to send emergency messages when in areas without cell service.
For more details on what to expect from the iPhone 13, be sure to check out our full guide right here with all of the latest rumors and expectations. Here are some tidbits:
- New 1TB storage option
- mmWave 5G in more countries
- Larger batteries
- A15 chip inside
- …and more
Apple Watch Series 7
The Apple Watch Series 7 is expected to bring a major redesign to Apple’s wearable for the first time since 2018. Rumors indicate that this year’s Apple Watch will feature a flat-edged design and be available in new 41mm and 45mm sizes, up from 40mm and 44mm. We expect it to be announced at Apple’s September event.
While health features are a major selling point of the Apple Watch, we aren’t expecting any major updates in this department this year. Apple is said to be working on updates to existing features, including blood oxygen measurement and irregular heart rhythm notifications.
However, reports in late August threw a wrench in expectations. Nikkei and Bloomberg both reported that the Apple Watch Series 7 is facing production delays due to its new design. This could mean that the Apple Watch Series 7 is not announced in September after all, but a more likely outcome is that the device is announced alongside the iPhone 13 but available at a later date and/or in very limited supplies at first.
Check out our full guide right here for more details on the Apple Watch Series 7 expectations.
iPad mini and entry-level iPad
While the iPad Pro was updated earlier this year with the M1 chip and other upgrades, Apple still has two other new iPads in the works for this year. 9to5Mac has reported that Apple is preparing a new iPad mini powered by the same A15 processor as the iPhone 13, as well as a new entry-level iPad with an A13 chip inside. The current 10.2-inch entry-level iPad is powered by the A12 Bionic chip.
Bloomberg has previously reported that Apple is working on a new iPad mini for release as soon as sometime later this year. The new iPad mini is expected to feature slimmer bezels and no Home button. Apple last updated the iPad mini in 2019, bringing a faster A12 Bionic processor.
While we expect these new iPads to be announced sometime this fall, it’s unclear whether the announcements will take place during the September event or perhaps during a second event sometime in October or November.
Software release dates
Finally, we also expect Apple to announce the official release dates for its next round of software updates. While iOS 15, watchOS 8, tvOS 15, and macOS Monterey were unveiled at WWDC, they are still only available in beta.
During the September event, we expect Apple to offer another look at the new features coming in iOS 15 and watchOS 8 and announce official release dates. macOS Monterey is likely not coming until later this year, in October or November.
What not to expect
Sadly, if you’ve been waiting for the M1X-powered 14-inch and 16-inch MacBook Pros, you’ll likely have to keep waiting. We don’t expect Apple to announce the new M1X Macs during its September event, with rumors currently suggesting a release in October or November is more likely.
The new MacBook Pros are expected to feature mini-LED displays, the return of MagSafe, HDMI, and SD card connectivity options. Apple is also working on a higher-end Mac mini powered by the same M1X chip.
Wrap up
Apple clearly has a lot in store for the month of September after a quiet July and August. Ranging from new iPhones to the release of iOS 15 and more, there’s a lot on the books that could certainly make for a packed September event.
What are you most looking forward to seeing from Apple in September? Let us know down in the comments!
Closing Stock Market SummaryThe S&P 500 (-0.5%), Dow Jones Industrial Average (-0.4%), and Nasdaq Composite (-0.3%) closed near session lows with modest losses on Thursday, while the small-cap Russell 2000 (-0.03%) closed relatively unchanged. This was the fourth straight decline for the S&P 500.
Eight of the 11 S&P 500 sectors finished in negative territory, led lower by the real estate (-2.1%) and health care (-1.2%) sectors with losses over 1.0%. The financials (+0.3%), energy (+0.1%), and materials (+0.1%) sectors bucked the negative trend with modest gains.
Relevant news included continued improvement in the weekly initial and continuing claims report, reduced Q3 outlooks from the airlines, and an ECB announcement that emergency asset purchases could be reduced by a moderate pace. Initial claims set another post-pandemic low at 310,000 (Briefing.com consensus 345,000).
None of it moved the market, though. In fact, the airline stocks rallied on the news, longer-dated Treasuries saw increased demand despite the weekly claims data, and financial stocks outperformed despite the subsequent decline in yields. The U.S. Global Jets ETF (JETS 22.97, +0.43, +1.9%) jumped 2%.
A strong $24 bln 30-year bond auction seemed to have more influence on the Treasury market. The 10-yr yield settled four basis points lower at 1.30% after trading at 1.33% before the results were released at 1:00 p.m. ET. The 2-yr yield declined one basis point to 0.21%. The U.S. Dollar Index decreased 0.2% to 92.50.
In addition, the energy sector finished higher despite weaker oil prices ($68.18/bbl, -1.14, -1.6%). Evidently, there was some confusing price action in the market, which reflected some of the uncertainty market participants have about where the market is headed.
Lululemon athletica (LULU 420.71, +39.86, +10.5%) provided a clear indication of its business, and it was good. LULU shares rose 10.5% to record highs following its earnings report. RH (RH 725.00, +52.35, +7.8%) was another earnings winner while GameStop (GME 199.18, +0.38, +0.2%) overcame an intraday 10% decline following its report.
Separately, Biogen (BIIB 300.15, -21.40, -6.7%) said its Alzheimer's treatment is seeing a slower launch than initially anticipated. Moderna (MRNA 455.92, +33.02, +7.8%) announced significant advances across its portfolio of mRNA pipeline programs. BIIB shares fell nearly 7.0% while MRNA shares rose nearly 8.0%.
Reviewing Thursday's economic data:
- Initial claims for the week ending September 4 decreased by 35,000 to 310,000 ( consensus 345,000) from last week's revised level of 345,000 (from 340,000). Continuing claims for the week ending August 28 decreased by 22,000 to 2.783 mln from last week's revised level of 2.805 mln (from 2.748 mln).
- The key takeaway from the report is that the overall trend is moving in the right direction, albeit at a slow pace.
Looking ahead, investors will receive the Producer Price Index for August and Wholesale Inventories for July on Friday.
- S&P 500 +19.6% YTD
- Nasdaq Composite +18.3% YTD
- Dow Jones Industrial Average +14.0% YTD
- Russell 2000 +13.9% YTD
EU hawks set tough terms for talks on reform of fiscal rules
Change is possible after pandemic but debt-cutting targets must stay, insist the group of eight finance ministers
A group of hawkish EU finance ministers is preparing to take a tough line in talks over post-pandemic changes to the EU’s budget rules, insisting any reforms must not jeopardise fiscal sustainability or water down debt reduction targets.
A paper supported by finance ministers from eight countries — including Austria, the Netherlands, Denmark and the Czech Republic — declared a willingness to discuss “improvements” to the EU’s Stability and Growth Pact.
But they warned that member states must recommit to “sound public finances” and cutting public debt, which ballooned during the Covid-19 crisis.
In a clear signal to the European Commission, which is set to reopen a consultation on the rules, the eight ministers said “quality is more important than speed” when it comes to any change.
The paper is an early intervention in a politically fraught debate over whether and how the union should overhaul its complex fiscal framework, after member states’ deficits and debts blew out during the pandemic. The EU suspended its usual spending rules last year in response, giving member states more fiscal firepower to address the crisis.
The signatories to the paper include some of the EU’s most fiscally conservative states. The language reflects their deep suspicion of calls from other countries, mainly in southern European, for a looser fiscal regime.
In their paper, the eight ministers indicate that they are willing to see the fiscal rules reapplied without changes once the suspension ends, probably at the start of 2023.
“Sustainable public finances create confidence and fiscal space for political priorities and for dealing with future crises and challenges,” the paper says. “Reducing excessive debt ratios has to remain a common goal.”
The paper nevertheless reflects a recognition in some of the capitals that talks over whether aspects of the rules should be reconsidered is now unavoidable. The EU’s public debt ratio is expected to have risen 15 percentage points in just two years, to 94 per cent of GDP in 2021.
Many of the capitals are determined to counterbalance any changes in the rules with the imposition of tougher and more consistent enforcement.
The paper comes as finance ministers meet in Slovenia on Friday and Saturday, when the topic is expected to be informally discussed.
Policymakers including EU economics commissioner Paolo Gentiloni have been urging far-reaching legislative changes to the Stability and Growth Pact given the damage done to public finances during the crisis and the need for public investment.
Among the ideas being floated by economists and politicians are changes to strip out investment in green projects from deficit restrictions.
The eight ministers said “improvements should be made” to the SGP, but focused on simplifying the regime and making it more transparent and consistently applied.
It was critical that “new proposals do not jeopardise the fiscal sustainability of member states, the euro area or the union as a whole”, they wrote.
The paper was also supported by the finance ministers of Latvia, Slovakia, Sweden and Finland. Absent were the EU’s biggest member states — Germany, France, Italy and Spain.