Early premarket gappersGapping up:
- CHMA +17.9%, CDNA +14.9%, ANW +12.9%, AMRS +10%, HEAR +9%, TTD +8.2%, CWH +5.7%, CAPR +4.7%, XXII +4.5%, AEZS +4%, NDLS +3.8%, CUDA +3.2%, EFII +3.1%, CATB +2.5%, CYTX +2.4%, WPM +1.6%, JWN +1.6%, CRSP +1.1%, ETSY +0.9%, EPAY +0.9%, AUPH +0.7%
Gapping down:
- ETRM -27.8%, UNXL -27.3%, SNAP -14.7%, BBOX -7.4%, NVDA -7%, KINS -5.4%, SPHS -5.2%, BIOC -4.8%, NCLH -4.1%, CBAY -3.9%, SMH -3.1%, CBI -2.7%, AMD -2.6%, LXFT -2.5%, CXRX -2.3%, MU -1.8%, TU -1.6%, NRG -1.5%, TXMD -1.2%, TWTR -1%, SOXX -0.8%, SQ -0.6%
Weibo, Baidu (BIDU), and WeChat (TCEHY) may be looked at by China regulators for alleged violation of cyber regulations
A collection of prominent names in the tech industry have teamed up with Toyota to work on developing big data systems to support self-driving cars and other future automotive advances.
Denso, Ericsson, Intel and NTT Docomo joined hands with the Japanese car giant to announce the Automotive Edge Computing Consortium today. The group said it has plans to add “relevant global technology leaders” to its membership this year.
The companies has come together to tackle concerns around data usage in connected cars of the future, a critical component to making real-time mapping, driving assistance and other services go from theory to working in practice. Handling the huge volumes of data in a reliable and secure manner is critical.
“It is estimated that the data volume between vehicles and the cloud will reach 10 exabytes per month around 2025, approximately 10,000 times larger than the present volume. This expected increase will trigger the need for new architectures of network and computing infrastructure to support distributed resources and topology-aware storage capacity,” the group said in a statement.
To give an idea of scale, 10 exabytes is 10 billion gigabytes — a lot of data indeed.
Toyota has been pretty busy in the connected car space, to say the least. Last week, it took a stake in Mazda to advance its AI and autonomous tech push, and other notable advancements this year have included a connected car partnership with NTT, a move into the blockchain, and a $100 million fund to invest in AI startups.
Dow -0.93% S&P-1.45% Nasdaq -2.13% Russell -1.75%
US Market closed lower. Tech stocks led the retreat, sending the tech-heavy Nasdaq (-2.1%) and the S&P 500 (-1.5%) below their 50-day simple moving averages for the first time in a month. The Dow also finished solidly lower, dropping 0.9%. President Trump dialed up his warning to North Korea on Thursday afternoon, saying Tuesday's 'fire and fury' comment--in which the president promised action against North Korea if it continues to threaten the United States--may not have been tough enough. Pyongyang has threatened a strike on the U.S. territory of Guam, laying out a plan in detail, in response to Mr. Trump's Tuesday statement. Today's risk-off sentiment was distinguishable in the sector standings as countercyclical groups largely outperformed their cyclical peers. In total, ten of eleven sectors settled in negative territory with the rate-sensitive utilities group (+0.3%) being the lone advancer as a rally in the Treasury market left rates lower across the curve; the benchmark 10-yr yield dropped three basis points to 2.21%. CBOE Volatility Index (VIX 15.74, +4.63) surged 41.7% to a four-month high after drifting near an all-time low from mid-July to early August. US After Hours TTD +10%, ANW +9%, CWH / CAPR +5%, UPLD +4%, JWN +3% higher and SNAP -17%, NVDA -7% lower following earnings/guidance, CUDA +5% on S&P SmallCap 600 addition news. With Japan closed for holiday, equity markets across Asia have extended the declines seen in the prior session (Hang Seng -1.8%, Kospi -1.6%, Shanghai -1.6%), amid lingering worries related to North Korea, rise in VIX and the over 2.4% decline seen in the Nasdaq in NY trading. As such, technology stocks have underperformed (Tencent -3%, Hynix -4%), along with commodity related names (Rusal -4.5%). Bucking the trend, shares of Noble Group have risen over 10% following its H1 results. Chinese defense companies are also moving higher with North Korea in focus. Looking ahead, traders are focusing on the US July CPI figures which are due to be released later today.
Nikkei Closed Hang Seng -1.91% CSI -1.42% Shanghai -1.44% Shenzen -0.75%
Eur$ 1.1763 CNH 6.6913 CNY 6.6719 JPY 109.19 GBP 1.2986 CHF 0.9618 RUB 60.1944 WTI$ 48.24 -0.72%
S&P -0.03% EuroStoxx -0.29% FTSE -0.45% DAX -0.32% SMI -0.21%
Macro :
- WTI Crude Outlook Bullish, Analysts Say in Weekly Survey
- Trump Intensifies Warnings to North Korea on Missile Threat
- MiFID II Will Upend Investment Research. The Question Is, How?
Keep an eye on :
- ADP FP : ADP July Traffic at Paris Airports Rises 4.3%
- AKZA NA : Elliott Fails to Get Court Backing on Bid to Oust Akzo Chairman
- B5A GY : Bauer First Half Ebit EU25.7 Mln
- BMPS IM : Monte Paschi Capital at EU15.7b After Precautionary Recap
- DWNI GY : Deutsche Wohnen Raises 2017 Rental Growth Forecast
- IGY GY : Innogy 1H Profit Rises 16%, Beats Estimates; Confirms FY Outlook
- SKB GY : Koenig & Bauer Cut to Hold at Bankhaus Lampe
- NVDA US : Nvidia 2Q Adjusted EPS Beats Highest Estimate; Shares Rise 6.1%
- NVDA US : Nvidia Sinks on Slowing Second-Quarter Data Center Growth
- UG FP : France May Lift Incentives to Ditch Polluting Vehicles: Echos
- RNO FP : France May Lift Incentives to Ditch Polluting Vehicles: Echos
- RIO LN : Rio Has Made ‘Breakthrough Steps’ on Lithium Project Technology
- SBMO NA : SBM Confirms Settlement Contract With Insurer Group on Yme Claim
- SNAP US : Snap Falls to All-Time Low Post-Market After 2Q Miss, Snap CEO and Co-Founder not Planning to Sell Shares this Year
- TLG GY : TLG Immobilien Sees Full Year FFO I EU90 Mln To EU92 Mln
- VOW3 GY : Volkswagen Mulls U.K. Version of German Diesel Rebate Deal
>>> Up
* Aareal Bank Raised to Buy at Nord/LB, PT EU39.50
* Axalta Raised to Overweight at JPMorgan, PT $31
* BlueJay Mining Raised to Strong Buy at SP Angel, PT 24p
* Henkel Raised to Buy at DZ Bank, PT EU128
* Lufthansa Raised to Hold at Commerzbank, PT EU21
* RBS Raised to Hold at HSBC, PT GBP2.50
* SAF Holland Raised to Buy at Montega, PT EU18
* Vernalis Raised to Buy at Panmure Gordon & Co, PT 31p
* Voestalpine Raised to Add at AlphaValue
>>> Down
* Deutsche Bank Cut to Reduce at HSBC, PT EU14
* Dixons Carphone Cut to Underperform at Exane
* DONG Energy Cut to Reduce at Kepler Cheuvreux, PT DKK305
* FCC Cut to Sell at AlphaValue
* Genel Energy Cut to Reduce at GMP, PT GBP1.20
* Goldman Sachs Cut to Hold at HSBC, PT $238
* Henkel Cut to Sector Perform at RBC, PT EU116
* Koenig & Bauer Cut to Hold at Bankhaus Lampe
* OHB Cut to Hold at HSBC, PT EU32
* Shire Cut to Equal-weight at Barclays
* Tullow Cut to Reduce at GMP, PT GBP1.60
>>> Initiation
* BAT Reinstated Neutral at Goldman
* Prosegur Reinstated Buy at Goldman, PT EU6.60
* Unicaja Banco New Neutral at Citi, PT EU1.40
Asia Mid-Session Market Update: Asian equities and currencies extend sell off amid focus on North Korea and ahead of US CPI data; Asian tech tracks weakness in Nasdaq
***Asia Summary***
- With Japan closed for holiday, equity markets across Asia have extended the declines seen in the prior session (Hang Seng -1.8%, Kospi -1.6%, Shanghai -1.6%), amid lingering worries related to North Korea, rise in VIX and the over 2.4% decline seen in the Nasdaq in NY trading. As such, technology stocks have underperformed (Tencent -3%, Hynix -4%), along with commodity related names (Rusal -4.5%). Bucking the trend, shares of Noble Group have risen over 10% following its H1 results. Chinese defense companies are also moving higher with North Korea in focus.
- With the weakness in equities and generally “risk-off” sentiment, the Aussie has declined by over 0.40%. RBA Governor Lowe also reiterated his preference for a weaker currency. With the Asian equity weakness and North Korea tensions, Asian currencies are broadly weaker, with the Philippine Peso declining to its lowest level since 2006. The Korean Won has weakened by 0.2%, after the sharp losses seen on Thursday’s session.
- Looking ahead, traders are focusing on the US July CPI figures which are due to be released later today.
***Key economic data***
- (CN) China July Fiscal Revenues CNY1.65T, +11.1% y/y; Fiscal Spending CNY1.35T, +5.4% y/y
- (KR) South Korea July Export Price Index M/M: 1.0% v -0.2% prior; Y/Y: 8.0% v 4.7% prior
- (SG) SINGAPORE Q2 FINAL GDP Q/Q: 2.2% V 0.5%E; Y/Y: 2.9% V 2.5%E
- (NZ) NEW ZEALAND JULY BUSINESS NZ MANUFACTURING PMI: 55.4 V 56.2 PRIOR
- (NZ) New Zealand REINZ July House Sales Y/Y: -24.5% v -24.7% prior
***Speakers and Press***
Australia
- (AU) RBA Gov Lowe: Not prepared to intervene at moment, but prepared to intervene in A$ in 'extreme' situations
China
- (CN) China Cybersecurity Authority: Probing Tencent, Baidu, Sina Weibo for violation of cybersecurity laws
- (CN) China said to consider curbs on certain money market fund investments - China Securities Times
Japan
- (JP) Japan readies missile shield following the recent North Korea threat related to Guam - Japanese Press
- (JP) According to Japanese press poll, 64% are against PM Abe serving a third term as LDP Head
Other
- (KR) US Defense Sec Mattis: Diplomatic efforts on North Korea are 'gaining traction'
- (KR) South Korea Ministries held meeting to discuss the economy and markets, to take measures if sees unusual market movements
- (PH) Philippines Central Bank Governor Espenilla: BSP following 'flexible' FX rate policy; Peso (PHP) movement 'modest' and its CPI pass-through is muted
- (SA) Saudi Oil Min Al-Falih: More oil output cuts must be collective
***Asian Equity Indices/Futures (00:30ET)***
- Nikkei closed for holiday, Hang Seng -1.8%%, Shanghai Composite -1.6%, ASX200 -1.3%, Kospi -1.6%
- Equity Futures: S&P500 -0.1% ; Nasdaq -0.4% , Dax flat , FTSE100 flat
***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1761-1.1777; JPY 108.91-109.22 ; AUD 0.7839-0.7876; NZD 0.7252-0.7283
- Aug Gold +0.1% at 1,291 /oz; Aug Crude Oil -0.3% at $48.47/brl; Sept Copper -0.7% at $2.89/lb
- GLD SPDR Gold Trust ETF daily holdings unchanged at 786.9 tons
- (AU) Australia sells July 2022 Bonds, avg yield 2.1337%, bid to cover 4.69x
- (CN) PBOC SETS YUAN REFERENCE RATE AT: 6.6642 V 6.6770 PRIOR
- (CN) China PBoC OMO injects CNY130B in v CNY90B in 7 and 14-day reverse repo prior
***Equities notable movers***
Australia
- National Australia Bank, NAB.AU Q3 Cash Profit +5%, general weakness the Australian banking sector; -1.4%
***US markets on close: Dow -0.9%, S&P500 -1.5%, Nasdaq -2.1%, Russell -1.8% ***
- Best Sector in S&P500: Utilities +0.3%
- Worst Sector in S&P500: Technology -2%
- At the close: VIX 16.04 (+4.93 pts); Treasuries: 2-yr 1.34% (-1bp), 10-yr 2.25% (-1bp), 30-yr 2.83% (-2bps)
***US Market Summary***
- US markets extended their opening losses into the afternoon, after European equities closed at their lowest level since March, as heightened tensions on the Korean peninsula still reverberated globally and Pres Trump made further bellicose remarks on the situation. All sectors except utilities are in the red for the day, with tech sending the Nasdaq to its worst three-day slide since November. Kohl's and Macy's led retail names lower after earnings and guidance. The Dollar weakened throughout the session after PPI data came in lower than expected and NY Fed President Dudley sounded more cautious about the inflation outlook than he did just a couple of months ago. Treasury yields dropped as investors showed appetite for the 30-year bond auction mid-day amidst the geopolitical tensions. The VIX popped to a three-month high, and gold futures are up at their best levels since June.
***US Afterhours Movers***
- After Market Movers
- AMRS Reports Q2 -$0.46 v -$1.06e, Rev $25.7M v $23.7Me; +11.9% afterhours
- CWH Reports Q2 $0.91 v $0.69e, Rev $1.3B v $1.16Be; +5.7% afterhours
- NVDA Reports Q2 $1.01 v $0.69e, Rev $2.23B v $1.95Be; Guides Q3 Rev $2.35B v $2.13Be; -4.5% afterhours
- SNAP Reports Q2 -$0.16 v -$0.14e, Rev $181.7M v $187Me; Daily active users (DAUs) 173M, +4% q/q, +21% y/y; -12.7% afterhours
After Hours Summary: TTD +10%, ANW +9%, CWH / CAPR +5%, UPLD +4%, JWN +3% higher and SNAP -17%, NVDA -7% lower following earnings/guidance, CUDA +5% on S&P SmallCap 600 addition newsAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: PCTY +13%, AMRS +11.9%, CHMA +10.7% (also has reached agreement with the FDA on the design of a new Phase 3 clinical trial for its octreotide capsules product candidate, Mycapssa), TTD +9.6%, ANW +9.4%, ZSAN +5.3%, CWH +4.9%, CAPR +4.7%, HEAR +4.5%, UPLD +4%, JWN +2.7%
Companies trading higher in after hours in reaction to news: CUDA +5.4% (to Join S&P SmallCap 600), XXII +4.5% (ongoing volatility), EFII +2.7% (files to delay its 10-Q; updates Q2 expectations excluding any adjustments from ongoing assessment/audit review), JCP +2.3% (higher with JWN and ahead of its own earnings report tomorrow before the open), NRG +1.2% (Bloomberg reporting that Global Infrastructure Partners and NextEra Energy might purchase NRG assets), ETSY +0.9% (Pres/CEO disclosed purchase of 64000 shares worth approx $1 mln)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: UNXL -27.3% (also discloses entry into equity purchase agreement with L2 Capital relating to an offering of an aggregate of up to 14,146,649 shares), SNAP -16.8%, NVDA -6.8%, BIOC -4.8%, CBAY -3.9%
Companies trading lower in after hours in reaction to news: ETRM -16.9% (commences public offering to consist of units comprised of one share of series B convertible preferred stock and one warrant to purchase shares of common stock), NCLH -3.3% (launches secondary public offering of 15 million of its ordinary shares by certain funds), TXMD -2.8% (announces regulatory update regarding the NDA for TX-004HR), CBI -2.3% (continued weakness), SQ -1.6% (continued weakness - closed down nearly 4% today), PFE -0.7% (discloses DOJ is investigating Greenstone generics business as of July), FB -0.4% and TWTR -0.3% (following SNAP results)
NVIDIA (NVDA) earnings/guidance is weighing on semiconductor/technology names (ETFs: SMH -3.1%, SOXX -0.9%): AMD -2.1%, MU -1.8% (also Bridgewater closed out position), MSFT -0.5%, XLNX -0.2%