Morning Reads





This Morning

S&P 500 futures are down 14 points and are trading 0.4% below fair value. The Nasdaq 100 futures are down 85 point and are 0.8% below fair value. The Dow Jones Industrial Average futures are down 45 points and are trading slightly above fair value.

There's some hesitation in the market ahead of Wednesday's CPI report. Also, there is a feeling that the market is still due for a pullback after the recent gains.

President Biden is expected to sign the CHIPS Act today at 10:00 a.m. ET while the Inflation Reduction Act is headed to the House where a vote is expected on Friday. 

Energy futures are climbing this morning. WTI crude oil futures are up 1.3% to $91.94/bbl. Natural gas futures are up 1.5% to $7.71/mmbtu. Unleaded gasoline futures are up 1.7% to $2.93/gal.

Treasury yields are also on the rise ahead of the open. The 2-yr note yield is up four basis points to 3.24% while the 10-yr note yield is up four basis points to 2.80%.

In corporate news:

  • Micron (MU 59.05, -2.40, -3.91%): ahead of conference says Q4 revenue may come in at or below the low end of the revenue guidance range; announces $40 billion investment in leading-edge memory manufacturing in the US
  • Novavax (NVAX 38.80, -18.45, -32.23%) : reports Q2 (Jun) results, lowers FY22 revenue guidance
  • Boeing (BA 166.58, +0.69, +0.42%): FAA approved first Boeing 787 delivery.
  • GoodRx (GDRX 10.91, +3.15, +40.59%): beats by $0.02, beats on revs; guides Q3 revs below consensus
  • 3D Systems (DDD 11.41, -1.83, -13.82%): misses by $0.07, misses on revs; guides FY22 revs below consensus
  • Upstart (UPST 28.12, -4.15, -12.86%): misses by $0.07, misses on revs; guides Q3 EPS below consensus, revs below consensus
  • Trex (TREX 57.20, -6.63, -10.39%): beats by $0.12, beats on revs; expects a significant reduction in revs in 2H22
  • Olaplex (OLPX 17.45, +1.14, +6.99%): beats by $0.01, beats on revs; reaffirms FY22 revs guidance
  • GlobalFoundries (GFS 61.00, +1.81, +3.06%): beats by $0.13, beats on revs; guides Q3 EPS above consensus, revs above consensus
  • Qualys (QLYS 133.39, +5.96, +4.68%): beats by $0.10, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus
  • Take-Two (TTWO 121.19, -4.32, -3.44%):  misses by $1.61, misses on revs; guides Q2 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
  • Norwegian Cruise Line (NCLH 12.71, -0.82, -6.06%): misses by $0.31, misses on revs; doesn't provide specific guidance, but says it will report a loss in Q3
  • Signet Jewelers (SIG 65.02, -2.65, -3.92%): signed an agreement to acquire Blue Nile for $360 million in an all cash transaction; sees Q2 revs below consensus, lowers FY23 revenue guidance due to heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mixed note while markets in India and Singapore were closed for holidays. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: +0.3%, India's Sensex: CLOSED, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +0.3%.
    • In economic data:
      • Japan's July Machine Tool Orders 5.5% yr/yr (last 17.1%)
      • Australia's August Westpac Consumer Sentiment -3.0% (last -3.0%). July NAB Business Survey 20 (last 13) and Business Confidence 7 (last 2)
      • New Zealand's July Electronic Card Retail Sales -0.2% m/m (last 0.1%); -0.5% yr/yr (last 1.9%)
    • In news:
      • There was a report that Hong Kong would consider waiving a double stamp duty for homes purchased by Chinese residents, but it was eventually refuted.
      • The Reserve Bank of Australia will spend about a year exploring the use case for central bank digital currency.
  • Major European indices trade in the red. STOXX Europe 600: -0.6%, Germany's DAX: -0.9%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.4%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: -0.1%.
    • In economic data:
      • There was no notable data.
    • In news:
      • Bank of England policymaker Ramsden said that it is more likely than not that rates will have to continue rising.
      • InterContinental Hotels beat quarterly expectations, raised its dividend, and announced a buyback.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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