Morning Reads

Morning Reads

Futures

Options

PREMIUM

This Morning

S&P 500 futures are up 8 points and are trading 0.1% above fair value. The Nasdaq 100 futures are up 34 points and are 0.1% above fair value. The Dow Jones Industrial Average futures are up 39 points and are trading 0.2% above fair value.

Futures for the major indices are modestly higher with market participants waiting to see if yesterday's retreat will fuel a buy-the-dip trade or a longer phase of consolidation. 

More central bank news is in play today. Norges Bank raised its key rate by 50 basis points to 1.75% and said it expects to raise the rate further in September. Also, European Central Bank policymaker Schnabel said that she expects another big interest rate hike in September despite the growing risk of recession.

On a related note, Eurozone CPI was up 8.9% year-over-year versus 8.6% in June.

The U.S. and Taiwan will hold trade and investment talks this fall, according to the Wall Street Journal.

Energy complex futures are higher this morning. WTI crude oil futures are up 1.2% to $89.16/bbl. Natural gas futures are up 0.8% to $9.32/mmbtu. Unleaded gasoline futures are up 1.1% to $2.96.gal.

Treasury yields are lower with the 2-yr note yield down five basis points to 3.23% while the 10-yr note yield is down two basis points to 2.87%.

  • Tapestry (TPR 36.70, -0.41, -1.10%): beats by $0.01, reports revs in-line; guides FY23 EPS below consensus, revs above consensus
  • Estee Lauder (EL 271.55, -4.97, -1.80%): beats by $0.06, beats on revs; guides FY23 revs below consensus
  • BJ's Wholesale (BJ 73.15, +4.02, +5.82%): beats by $0.25, beats on revs; Q2 total comps +19.8% or +7.6% ex-gas; raises FY23 EPS and comp guidance
  • Kohl's (KSS 31.00, -2.95, -8.69%): misses by $0.01, beats on revs; guides FY23 EPS below consensus, revs below consensus
  • Bath & Body Works (BBWI 40.52, +0.33, +0.82%):  beats by $0.11, reports revs in-line; guides Q3 EPS below consensus, sales down mid-to-high-single digits; guides FY23 EPS in-line, sales down mid-to-high-single digits
  • Cisco (CSCO 49.20, +2.54, +5.44%): beats by $0.01, beats on revs; guides OctQ EPS in-line, revs above consensus; guides FY23 EPS in-line, revs above consensus
  • Wolfspeed (WOLF 104.60, +18.95, +22.12%): beats by $0.08, beats on revs; guides Q1 (Sep) EPS in-line, revs above consensus; expects FY26 revs +30-40% higher than previous forecast
  • Synopsys (SNPS 387.78, +6.78, +1.78%): beats by $0.11, beats on revs; guides Q4 (Oct) EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus
  • Keysight (KEYS 176.72, +7.43, +4.39%): beats by $0.22, beats on revs; guides Q4 EPS above consensus, revs in-line
  • Earnings/Guidance:
    • Bath & Body Works (BBWI) beats by $0.11, reports revs in-line; guides Q3 EPS below consensus, sales down mid-to-high-single digits; guides FY23 EPS in-line, sales down mid-to-high-single digits
    • BJ's Wholesale (BJ) beats by $0.25, beats on revs; Q2 total comps +19.8% or +7.6% ex-gas; raises FY23 EPS and comp guidance
    • Canadian Solar (CSIQ) beats by $0.74, beats on revs; guides Q3 revs above consensus; raises FY22 revs above consensus
    • Cisco (CSCO) beats by $0.01, beats on revs; guides OctQ EPS in-line, revs above consensus; guides FY23 EPS in-line, revs above consensus
    • Estee Lauder (EL) beats by $0.06, beats on revs; guides FY23 revs below consensus
    • Keysight (KEYS) beats by $0.22, beats on revs; guides Q4 EPS above consensus, revs in-line
    • Kohl's (KSS) misses by $0.01, beats on revs; guides FY23 EPS below consensus, revs below consensus
    • Melco Resorts & Entertainment (MLCO) misses by $0.09, misses on revs
    • NetEase (NTES) beats by CNY1.08, reports revs in-line
    • NICE (NICE) beats by $0.06, beats on revs; guides Q3 EPS in-line, revs in-line; raises FY22 EPS in-line, revs above consensus
    • Sociedad Quimica y Minera (SQM) reports Q2 results; beats on revs
    • SpartanNash (SPTN) beats by $0.12, beats on revs; reaffirms FY22 EPS guidance, guides FY22 revs above consensus
    • Synopsys (SNPS) beats by $0.11, beats on revs; guides Q4 (Oct) EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus
    • Tapestry (TPR) beats by $0.01, reports revs in-line; guides FY23 EPS below consensus, revs above consensus
    • Wolfspeed (WOLF) beats by $0.08, beats on revs; guides Q1 (Sep) EPS in-line, revs above consensus; expects FY26 revs +30-40% higher than previous forecast
  • General News:
    • US and Taiwan will hold trade and investment talks this fall, according to Financial Times
    • Iran's demands for guarantees have stalled nuclear talks, according to the Wall Street Journal
    • Oil companies will face climate change lawsuits from various states, according to the Wall Street Journal
    • Ethanol could benefit from carbon capture tax credits in climate law, according to Reuters
    • Germany to lower taxes on natural gas to 7%, according to Reuters
    • Amazon (AMZN) is looking for a senior movie studio executive, according to the Wall Street Journal
    • American Fincl (AFG) increases its annual dividend 12.5% to $2.52
    • Babcock & Wilcox Enterprises (BW) receives $42 mln contract for installation of environmental equipment for U.S. power plant
    • Bed Bath & Beyond (BBBY): SEC filing from RC Ventures regarding potential sale of 7.78 mln shares
    • BioCryst Pharma (BCRX) announces that the Saudi Food and Drug Authority has approved oral, once-daily ORLADEYO to prevent attacks of hereditary angioedema in adults and pediatric patients 12 years of age and older in Saudi Arabia
    • Ceragon (CRNT) urges shareholders to vote against Aviat's attempt to take control of the board on the white proxy card today
    • Continental Resources (CLR) announced Doug Lawler is being promoted to President and Chief Operating Officer
    • Cue Health (HLTH): clinical study demonstrates that its point of care molecular COVID-19 test is as accurate as a centralized lab-based RT-PCR
    • Eargo (EAR) supports new regulation on OTC hearing aids; co believes its hearing aids are within the FDA's requirements
    • Henry Schein (HSIC) announces that its Board of Directors has authorized the repurchase of up to $400 million of shares of the Company's common stock
    • Hut 8 Mining (HUT) establishes at-the-market equity program
    • HYZON Motors (HYZN) appoints Parker Meeks as President and Interim Chief Executive Officer
    • Middlesex Water (MSEX) has been awarded a 10-yr management contract with Avalon, New Jersey for day to day operations of the Borough’s water and sewer utility
    • Pebblebrook Hotel Trust (PEB) provides update on operating trends; Business travel demand, both group and transient, saw further improvement in July
    • PENN Entertainment (PENN) discloses it has exercised call options related to all outstanding shares of common stock of Barstool Sports not already owned by PENN; ownership of Barstool is now 100%
    • Perrigo (PRGO) issues statement responding to news story regarding ranitidine (Zantac) litigation
    • Personalis (PSNL) files amended complaint against Foresight Diagnostics to include newly-issued patent
    • Philips (PHG) to convene Extraordinary General Meeting of Shareholders to appoint Roy Jakobs as new President and CEO
    • Phillips 66 (PSX) increases its economic interest in DCP Midstream from 28.26% to 43.31%; also realigns its economic and governance interest in DCP and Gray Oak Pipeline through the merger of existing joint ventures owned with Enbridge
    • QuidelOrtho (QDEL) authorizes the repurchase of up to $300 mln of shares of common stock over next two years
    • Rolls Royce PLC (RYCEY) awarded $1.01 bln U.S. Navy firm-fixed-price, indefinite-delivery, requirements contract
    • Schrodinger (SDGR) appoints Geoffrey Porges as CFO
    • Tesla (TSLA) lowers delivery waiting times in China for Model Y, according to Reuters
    • Winnebago (WGO) approves 50% increase to quarterly cash dividend to $0.27/share (equates to new annualized yield of 1.7%); also approves new share repurchase program of up to $350 mln of common stock
  • M&A:
    • AeroVironment (AVAV) acquires Planck Aerosystems; terms of deal not disclosed
    • Blackstone (BX): EU Commission clears acquisition of Advarra by Blackstone and CPP Investments
    • Brooge Holdings (BROG) says majority shareholder, BPGIC Holdings, would like to take company private
    • Manchester United (MANU): British billionaire Jim Ratcliffe is interested in buying the company, according to Reuters
    • Manchester United (MANU): Glazer family has entered discussions to sell minority stake in Manchester United to Apollo (APO), according to Daily Mail
    • Phillips 66 (PSX) offers to acquire all publicy held common units of DCP Midstream (DCP) for cash for $34.75/common unit
    • Pixelworks (PXLW) announces strategic investment in Shanghai subsidiary
  • Syndicate
    • Accelerate Diagnostics (AXDX) commences public offering of shares
    • Rigetti Computing (RGTI) files for 23,648,889 share common stock offering by selling shareholder
    • UMB Financial Corporation (UMBF) files mixed securities shelf offering

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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