>>> Tradegate Pre-Mkt

DAX:
  • Vonovia (VNA TH) +1.5%
    • Vonovia Upgraded to Buy at Kempen & Co; PT 47 Euros
  • Henkel (HEN3 TH) +1.2%
    • Henkel Potential Underlined, Delivery Still a Mystery: Jefferies
  • Covestro (1COV TH) +0.9%
  • VW (VOW3 TH) +0.5%
  • ThyssenKrupp (TKA TH) +0.4%
    • Marshall Wace Reduces Short Position in ThyssenKrupp to 0.86%
  • BMW (BMW TH) flat
    • BMW Widens Lead Over Mercedes at Half-Year Mark With SUV Lineup
  • BASF (BAS TH) -0.1%
  • Deutsche Post (DPW TH) -0.1%
  • Infineon (IFX TH) -0.7%
  • Deutsche Bank (DBK TH) -1.2%
    • Deutsche Bank Explores Selling Unwanted Assets Amid Revamp (1)
MDAX:
  • Puma (PUM TH) +1.1%
  • Telefonica Deutschland (O2D TH) +0.9%
  • ProSieben (PSM TH) +0.8%
  • Deutsche PBB (PBB TH) +0.8%
  • Rocket Internet (RKET TH) +0.4%
  • Fuchs Petrolub (FPE3 TH) +0.4%
  • Airbus (AIR TH) +0.1%
  • Evotec SE (EVT TH) Flat
  • Siemens Healthineers (SHL TH) Flat
SDAX:
  • Nordex (NDX1 TH) +3%
    • Nordex 2Q Order Intake Doubles to 2 Gigawatts
  • Leoni (LEO TH) +1.4%
  • DIC Asset (DIC TH) +1%
  • S&T (GROA TH) +0.1%
  • Steinhoff (SNH TH) Flat
  • Heidelberger Druck (HDD TH) -0.5%
    • Voleon Reduces Short Position in Heidelberger Druck to 0.59%
  • Kloeckner (KCO TH) -0.6%
  • RIB Software (RIB TH) -0.7%

>>> What to look at today - 3rd of July 2019

 Stocks in Asia were mostly lower Wednesday alongside U.S. equity futures as investors took a breather after four weeks of gains. Ten-year Treasury yields dipped to the lowest since November 2016 following a disappointing run of economic data.
Shares indexes in Japan, China and South Korea led losses, while equities in Australia edged higher. The yen hit its high for the session after the Bank of Japan made small tweaks to its bond buying program. The rally extended in Treasuries and gold. News on European Central Bank and Federal Reserve leadership appointments underlined the prospect for easier monetary policy, which could offer support for a range of assets.
- US After Hours USNA -16% and TSLA +7% on Q2 updates

Nikkei -0.69% Hang Seng -0.19% CSI -0.76% Shanghai -0.76% Shenzen -0.90%

Eur$ 1.1286 CNH 6.8927 CNY 6.8866 JPY 107.69 GBP 1.2586 CHF 0.9858 TRY 5.6395 RUB 63.4086 WTI$ 565.47 +0.39% XBT

S&P -0.09% EuroStoxx +0.00% Dax+0.12% FTSE +0.10%SMI

Macro :
- Lagarde to Succeed Draghi as ECB Chief As Economy Weakens
-

Keep an eye on :
- ACS SM : ACS of Spain Sells 50% Stake in Canada Highway Project
- AI FP : Air Liquide Sees Currency Impact on 2Q Group Rev. Around 2%
- AGFB BB : DuPont, Agfa Agree to Drop Suit Over Cyrel Printing-Plates Pact
- BAYN GY : Austria Set to Be First in EU to Ban Glyphosate in Herbicides
- BOI FP : France to Rule on Homeopathy Reimbursement in Coming Days: AFP
- DBK GY : Deutsche Bank Explores Selling Unwanted Assets as Part of Revamp
- DTE GY : Deutsche Telekom to Cut About 1,200 Sales Jobs: Handelsblatt
- ENI IM : Eni, Sonatrach to Accelerate New North Berkine Oil/Gas Projects
- ETL FP : Eutelsat Investing in Broadpeak to Add Services for Clients: CEO
- FCA IM : Fiat Chrysler’s Ram Charges; Tesla Sales: N.A. Industrials Wrap
- TFC LN : Filtronic Says Performance is in Line With Guidance
- FDP LN : First Derivatives Holder Brian G Conlon to Offer 1.5m Shrs
- IIA AV : Immofinanz Sees Increase to 2Q Earnings From Property Valuation, Immofinanz Sees EU100 Million Property Valuation Gain in 2Q (1)
- ITE LN : ITE Remains Confident of Meeting Expectations
- LOGN SW : Logitech Proposes New Board Members, Annual Dividend Boost
- MS IM : Mediaset Receives Request From Vivendi for Shareholder Meeting
- NCCB SS : NCC Sees SEK43m Provision Impacting 2Q Earnings
- NDX1 GY : Nordex 2Q Order Intake Doubles to 2 Gigawatts
- OR FP : Clarins Is Not for Sale, Clarins Holders Tell Figaro
- PLCS NO : Polarcus 2Q Vessel Utilization 72% vs 85% Year Earlier
- RNO FP : Nissan Ends Middle East Venture With Close Ties to Carlos Ghosn
- ROG SW : Roche’s Genentech: Positive Results in Xofluza Phase III Study
- SAN FP : Santander Reaches Agreement to Buy Its Madrid HQ: Europa Press
- GLE FP : SocGen Chairman Says Was Slow to Cut Jobs at Trading Unit: FT
- TNG FP : Transgene Says Raises EU48.7M Through Capital Increase
- VOD LN : Vodafone 5G Network Opens New Front in Britain’s Wireless Wars
- VOW3 GY : VW June U.S. Auto Sales +6.8%
- ZUBN SW : Zueblin Immobilien Names CFO Friederich as New CEO
- ZURN SW : Zurich Insurance EMEA CEO Amanda Blanc Resigns

>>> Europe : Brokers Upgrades & Downgrades - 3rd of July 2019

>>> Up
* Aker Solutions Raised to Equal-weight at Morgan Stanley
* Avanza Upgraded to Hold at SEB Equities; Price Target 75 Kronor
* BCP Upgraded to Buy at Jefferies; PT 32 Cents
* Castellum Upgraded to Buy at Kempen & Co; PT 195 Kronor
* EDF Upgraded to Buy at HSBC; PT 13.50 Euros
* Fabege Upgraded to Buy at Kempen & Co; PT 155 Kronor
* Sophos Upgraded to Overweight at JPMorgan; PT 4.80 Pounds
* Standard Chartered Upgraded to Buy at SocGen; PT 8.40 Pounds
* Vonovia Upgraded to Buy at Kempen & Co; PT 47 Euros
* Wood Upgraded to Overweight at Morgan Stanley; PT 7 Pounds

>>> Down
* Assa Abloy Downgraded to Equal-weight at Barclays; PT 220 Kronor
* Catena Downgraded to Neutral at Kempen & Co; PT 295 Kronor
* Henkel Upgraded to Buy at Goldman; PT 100 Euros
* Intesa Downgraded to Underperform at Jefferies
* Petrofac Cut to Equal-weight at Morgan Stanley; PT 5.30 Pounds
* PGS ASA Cut to Equal-weight at Morgan Stanley; PT 18 Kroner
* SpareBank 1 SR Downgraded to Hold at Carnegie; PT 108 Kroner
* Valeo Downgraded to Underperform at MainFirst; PT 24 Euros
* Vallourec Cut to Underweight at Morgan Stanley; PT 3 Euros
* Wartsila Downgraded to Underweight at JPMorgan; PT 12.50 Euros

>>> Initiation
* Dart Group Rated New Hold at Jefferies; PT 9 Pounds
* Klaveness Combination Carriers Rated New Buy at ABG
* MIPS AB Downgraded to Hold at ABG; Price Target 190 Kronor
* PATRIZIA AG Rated New Outperform at MainFirst; PT 22.80 Euros
* Stroeer Rated New Buy at Commerzbank; PT 80 Euros
* Thomas Cook Downgraded to Hold at Jefferies; PT 13 Pence
* TUI Rated New Underperform at Jefferies

>>> Call
* Henkel Potential Underlined, Delivery Still a Mystery: Jefferies
* Fertilizer Sector Cut to Market Weight on RBC’s Best Ideas List
* Watch Cybersecurity Stocks as Broadcom Eyes Symantec Takeover
* Europe Travel Weakness Not Over, TUI New Underperform: Jefferies
* BCP Gets Double Upgrade, Models Adjusted After Draghi: Jefferies

>>> US After Hours Summary: USNA -16% and TSLA +7% on Q2 updates

After Hours Summary: USNA -16% and TSLA +7% on Q2 updates

After Hours Gainers:

Companies trading higher in after hours in reaction to sales/guidance: TSLA +6.9% (reports record Q2 deliveries, above estimates; orders exceeded deliveries)

Companies trading higher in after hours in reaction to news: BTX +7.8% (announced the pricing of the sale of 2,250,000 shares of common stock of OncoCyte (OCX) at $2/share for gross proceeds of $4.5 mln), SALT +3% (President buys 125K of co's common stock), BIDU +0.3% (will provide updates to its businesses at conference today - will include that June average DAUs of Baidu App reached 188 million)

After Hours Losers:

Companies trading lower in after hours in reaction to guidance: USNA -16.3% (issues downside Q2 guidance and cuts FY19 outlook)

Companies trading lower in after hours in reaction to news: NUS -1.3% (following USNA guidance), FLDM -1.5% (10% owner Levin Easterly Partners sold 187K shares worth ~$2.3 mln)

>>> US Close Dow+0.26% S&P +0.29% Nasdaq +0.22% Russell -0.58%

Closing Market Summary: S&P 500 Climbs While Small Caps Lag

The Dow (+0.3%), Nasdaq (+0.2%), and S&P 500 (+0.3%) ended Tuesday on a modestly higher note thanks to a late push that lifted the indices out of the red. Relative weakness among small cap names sent the Russell 2000 lower by 0.6%.

Equity indices started the day near their flat lines while a modest wave of buying interest lifted the averages to session highs one hour after the open. However, the opening push saw limited participation from cyclical sectors, leading to a midday pullback. That lack of participation was most visible in the technology sector (+0.3%) where the PHLX Semiconductor Index lost 1.4%, trimming this week's gain to 1.2%. 22 out of 30 index members recorded losses of at least 1.0% while yesterday's leader—Inphi (IPHI 52.20, -1.47, -2.7%)—was the second weakest performer, falling 2.7%.

The broader technology sector was able to eke out a slim gain and its late strength helped send the key indices to fresh highs ahead of the close while most of the remaining cyclical sectors settled in the red. Financials (-0.2%) were pressured by renewed strength in Treasuries of longer tenors while energy (-1.7%) retreated amid a 4.8% drop in the price of oil. WTI crude fell beneath the confluence of its 50-day (58.72) and 200-day (58.74) moving averages, ending the day at its lowest level in eight sessions.

Elsewhere, relative weakness in the Dow Jones Transportation Average (-0.8%) kept the industrials sector (-0.1%) in negative territory. Delta Airlines (DAL 58.54, +0.75, +1.3%) bucked the trend among DJTA members, after boosting its Q2 guidance.

Staying on the earnings front, Greenbrier (GBX 28.71, -2.14, -6.9%) briefly slid to a fresh 2019 low after missing Q3 estimates and guiding Q4 results below expectations. Conversely, Amarin (AMRN 22.37, +3.13, +16.3%) rallied after issuing above-consensus guidance for Q2 and FY19.

Countercyclical sectors recorded gains across the board, which helped the S&P 500 stage its late rally. Rate-sensitive real estate (+1.8%) and utilities (+1.2%) finished in the lead.

Longer-dated Treasuries settled near their session highs while the 3-month bill underperformed with no apparent catalyst. The 10-yr yield fell six basis points to 1.98% while the 3-month yield rose three basis points to 2.19%.

Curiously, gold futures rallied to recover their entire decline from yesterday. The yellow metal settled higher by 1.5% at $1408.55/ozt and continued its advance after the 13:30 ET close of the pit session. The rally in gold accelerated after NBC reported that Vice President Mike Pence was called back to Washington just before his plane was about to touch down in New Hampshire. The vice president's spokeswoman later said that there is no cause for alarm while an unnamed White House official told Bloomberg that the reason for the return will be revealed "weeks from now."

On the international front, EU officials have agreed on nominees to top EU jobs. All nominations were in-line with this morning's report from Die Welt. Germany's Defense Minister Ursula von der Leyen was nominated to replace EU Commission President Jean-Claude Juncker while IMF Managing Director Christine Lagarde was nominated to take over for Mario Draghi at the ECB. Belgian Prime Minister Charles Michel was proposed as the replacement for EU Council President Tusk while Josep Borrell Fontelles was nominated to replace Federica Mogherini as the High Representative for Foreign Affairs and Security Policy. The nominees still need to be approved by the EU Parliament.

Investors did not receive any economic data of note. Tomorrow, the weekly MBA Mortgage Index (prior 1.3%) will be reported at 7:00 ET, followed by the June ADP Employment Change report (Briefing.com consensus 145,000; prior 27,000) at 8:15 ET. May trade balance (consensus -$54.40 bln; prior -$50.80 bln) and weekly Initial Claims (consensus 222,000; prior 227,000) will be reported at 8:30 ET while May Factory Orders ( consensus -0.5%; prior -0.8%) and the June ISM Non-Manufacturing Index (consensus 55.8; prior 56.9) will be released at 10:00 ET.

  • Nasdaq Composite +22.2% YTD
  • S&P 500 +18.6% YTD
  • Russell 2000 +15.6% YTD
  • Dow Jones Industrial Average +14.8% YTD