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PREMIUM

This Morning

S&P 500 futures are down 2 point and are trading in-line with fair value. The Nasdaq 100 futures are down 18 points and are trading 0.2% below fair value. The Dow Jones Industrial Average futures are up 4 points and are trading slightly above fair value.

Equity futures are not doing much this morning. It's a bit of a wait-and-see trade with market participants looking to see if the market can build on yesterday's gain. Participants also await the ECB decision and Fed Chair Powell's discussion at the Cato Institute’s 40th Annual Monetary Conference later this morning.

In overseas news, British Prime Minister Truss announced that a fracking ban will be lifted and that household energy bills will be limited to GBP2,500 per annum for the next two years.

Japan's Q2 GDP was better-than-expected at 3.5% year-over-year from the last reading of 2.2% year-over-year. Japan's deputy chief cabinet secretary said that the yen's movement is being watched with a strong sense of urgency. USD/JPY -0.2% to 143.46.

Energy complex futures are mixed after yesterday's sell-off. WTI crude oil futures are up 0.2% to $82.06/bbl. Natural gas futures are down 0.2% to $7.82/mmbtu. 

Treasury yields are lower this morning. The 2-yr note yield is down four basis points to 3.41% while the 10-yr note yield is down five basis points to 3.22%.

In corporate news:

  • McCormick (MKC 79.46, -5.54, -6.52%): guides Q3 (Aug) EPS and revs below consensus and trims its FY22 outlook due to inflationary pressures resulting in higher price elasticity than expected as well as ongoing supply chain disruptions
  • American Eagle (AEO 10.06, -1.53, -13.20%):  misses by $0.10, reports revs in-line; will pause dividend; plans to cut expenses and cap-ex
  • GameStop (GME 25.60, +1.56, +6.49%): beats by $0.07, misses on revs;  enters into partnership with FTX, making company FTX's preferred retail partner in the U.S.
  • Casey's General (CASY 217.90, -3.50, -1.58%): beats by $0.41, reports revs in-line, inside comps +6.3%, fuel gallons comps -2.3%; reaffirms FY23 outlook of +4-6% inside comps and fuel gallons comps of flat to +2%
  • Asana (ASAN 23.54, +4.50, +23.63%): beats by $0.05, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY23 revs above consensus; expects to reach free cash flow positive before the end of CY24
  • Advanced Micro (AMD 80.44, +0.83, +1.04%):  initiated with a Buy at Stifel
  • First Solar (FSLR 139.24, +4.44, +3.29%): upgraded to Buy from Sell at Goldman Sachs

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note. Japan's Nikkei: +2.3%, Hong Kong's Hang Seng: -1.0%, China's Shanghai Composite: -0.3%, India's Sensex: +1.1%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: +1.8%.
    • In economic data:
      • China's August FX Reserves $3.055 trln (expected $3.079 trln; last $3.104 trln)
      • Japan's Q2 GDP 0.9% qtr/qtr (expected 0.7%; last 0.5%); 3.5% yr/yr (expected 2.9%; last 2.2%). Q2 Capital Expenditure 2.0% qtr/qtr (expected 1.8%; last 1.4%) and Q2 Private Consumption 1.2% qtr/qtr (expected 1.1%; last 0.1%). July Current Account surplus JPY229 bln (expected surplus of JPY714 bln; last deficit of JPY132 bln). August Economy Watchers Current Index 45.5 (last 43.8)
      • Australia's July trade surplus AUD8.733 bln (expected surplus of AUD14.50 bln; last surplus of AUD17.13 bln). July Imports 5.0% m/m (last 0.7%) and Exports -10.0% yr/yr (last 4.9%)
      • New Zealand's Q2 Manufacturing Sales Volume -4.9% qtr/qtr (last -3.5%)
    • In news:
      • Evergrande's headquarters in Hong Kong have reportedly been seized by a lender.
      • Chinese health authorities are encouraging people to avoid travel during next National Day holidays at the start of October.
      • Japan's deputy chief cabinet secretary said that the yen's movement is being watched with a strong sense of urgency.
      • Reserve Bank of Australia Governor Lowe said that the case for slower rate hikes becomes clearer as rates rise.
  • Major European indices trade near their flat lines with Germany's DAX (-0.5%) struggling to keep up. STOXX Europe 600: +0.2%, Germany's DAX: -0.5%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.2%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: -0.4%.
    • In economic data:
      • France's Q2 nonfarm payrolls 0.4% qtr/qtr (expected 0.5%; last 0.3%). July trade deficit EUR14.50 bln (expected deficit of EUR13.60 bln; last deficit of EUR13.10 bln). July Current Account deficit EUR5.30 bln (last deficit of EUR1.50 bln)
      • Swiss August Unemployment Rate 2.1% (expected 2.2%; last 2.2%)
    • In news:
      • British Prime Minister Truss announced that a fracking ban will be lifted and that household energy bills will be limited to GBP2,500 per annum for the next two years.
      • Germany is also expected to announce energy subsidies for households and businesses, though Germany's economy minister said that subsidies can't continue forever.
      • Germany's Institute for Solid State Research forecast a recession for next year.
      • The European Central Bank is expected to announce a 75-bps rate hike at 8:15 ET, followed by ECB President Lagarde's press conference at 10:15 ET.


U.S. equity futures:

  • S&P 500 Futures: -1 @ 3,978
  • DJIA Futures: +9 @ 31,590
  • Nasdaq 100 Futures: -14 @ 12,246

Overseas:

  • Europe: DAX -0.5%, FTSE +0.1%, CAC +0.2%
  • Asia: Nikkei +2.3%, Hang Seng -1.0%, Shanghai Composite -0.3%

Commodities:

  • Crude Oil +0.22 @ 82.22
  • Nat Gas  -0.007 @ 7.835
  • Gold +9.35 @ 1737.15
  • Silver +0.325  @ 18.585
  • Copper +0.0837 @ 3.5142


U.S. Summary:

  • Earnings/Guidance:
    • AeroVironment (AVAV) reports Q1 (Jul) results, beats on revs; reaffirms FY23 EPS guidance, revs guidance
    • Altice USA (ATUS) appoints Dennis Mathew to position of CEO, effective October 3, 2022
    • American Eagle (AEO) misses by $0.10, reports revs in-line; will pause dividend; plans to cut expenses and cap-ex
    • ArcBest (ARCB) reports August 2022 consolidated revenues grew approximately 32% on a per day basis compared to August 2021
    • Asana (ASAN) beats by $0.05, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY23 revs above consensus; expects to reach free cash flow positive before the end of CY24
    • Bilibili (BILI) misses by CNY0.53, reports revs in-line; guides Q3 revs below consensus
    • Casey's General (CASY) beats by $0.41, reports revs in-line, inside comps +6.3%, fuel gallons comps -2.3%; reaffirms FY23 outlook of +4-6% inside comps and fuel gallons comps of flat to +2%
    • Cedar Fair (FUN) reports record revenues through Labor Day 2022
    • ChipMOS TECHNOLOGIES (IMOS) reports August revs declined 28.5% yr/yr to ~NT$1.72 bln
    • Clear Channel Outdoor (CCO) reaffirms guidance ahead of Investor Day
    • Copart (CPRT) beats by $0.03, beats on revs
    • Couchbase (BASE) beats by $0.09, beats on revs; guides Q3 revs in-line; guides FY23 revs above consensus
    • Dave & Buster's (PLAY) reports Q2 (Jul) results, beats on revs; comparable sales at Dave & Buster’s branded stores increased 9.6% compared with the same period in 2019
    • Descartes (DSGX) reports EPS in-line, beats on revs
    • FuelCell Energy (FCEL) misses by $0.02, beats on revs
    • GameStop (GME) beats by $0.07, misses on revs
    • Lovesac (LOVE) misses by $0.02, beats on revs
    • McCormick (MKC) guides Q3 (Aug) EPS and revs below consensus and trims its FY22 outlook due to inflationary pressures resulting in higher price elasticity than expected as well as ongoing supply chain disruptions
    • Phreesia (PHR) beats by $0.08, beats on revs; guides FY23 revs in-line
    • Reynolds Consumer Products (REYN) sees Q3 revs at low end of previous guidance; reaffirms EPS
    • Taiwan Semiconductor Manufacturing (TSM) reports August revs increased 58.7% to NT$218.1 bln
    • Torrid (CURV) misses by $0.02, reports revs in-line; guides Q3 revs below consensus; expects FY23 revs of $1.26-1.30 bln
    • Verint Systems (VRNT) beats by $0.03, misses on revs; reaffirms FY23 EPS guidance, lowers FY23 revenue guidance
    • Yext (YEXT) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs below consensus
  • General News:
    • Iran nuclear deal talks hit another roadblock, according to CNN
    • Russian President Putin threatened to completely stop all energy supplies to Europe and "let them freeze", CNBC
    • Democrats are preparing to draft legislation that would ban former President Trump from running for office again, but efforts are unlikely to succeed, according to the New York Times
    • China extends Chengdu lockdown, according to Reuters
    • California avoids blackouts for another day, according to Bloomberg
    • UK Prime Minister Liz Truss removes ban on fracking and approves more oil drilling
    • UK Prime Minister Liz Truss temporarily suspends green levies; will limit household energy bills to GBP 2,500 a year for the next two years
    • FDA takes significant action to help expand access to monkeypox testing
    • 22nd Century Group (XXII) eliminates the COO position; current COO Michael Zercher to leave company, effective September 30
    • AbbVie (ABBV) reports New MEASURE-AD Analyses Evaluate Clinical, Psychosocial and Economic Burdens in Atopic Dermatitis Patients
    • Air Lease (AL) announces lease placement of four new Airbus A321XLR aircraft with Air Transat
    • Alnylam (ALNY) Presents Positive Results from the APOLLO-B Phase 3 Study of Patisiran in Patients with ATTR Amyloidosis with Cardiomyopathy
    • Altria (MO): Jury Finds that Reynolds Vapor Company’s Vuse Alto Infringes Altria Patents
    • Amazon (AMZN) will slow down hiring rate, according to the Wall Street Journal
    • AMC (AMC): Cineworld commences chapter 11 cases with approximately $1.94 billion in debtor-in-possession financing commitments to facilitate a significant de-leveraging transaction and position company for long-term growth
    • Amylyx Pharmaceuticals (AMLX) announces FDA Advisory Committee supports approval of AMX0035 for the treatment of ALS
    • Apple (AAPL): China Guiyang lockdown could have negative effects to Apple data center, according to Bloomberg
    • AT&T (T) provides updates at investment conference
    • Bed Bath & Beyond (BBBY) CFO Gustavo Arnal was overwhelmed before he took his life, according to the Wall Street Journal
    • Biogen (BIIB): The New England Journal of Medicine Publishes Second Manuscript Reporting Positive Phase 2 Results for Biogen’s Litifilimab (BIIB059) in Lupus
    • BIO-TECHNE (TECH) PRESENTS INITIAL DATA ON SJÖGREN'S SYNDROME MONITORING ASSAY
    • Cardinal Health (CAH) announces pharmaceutical segment organizational changes
    • CareDx (CDNA) names Abhishek Jain as CFO, he had been interim CFO
    • Denison (DNN) Announces Expansion of High-Grade Uranium Mineralization at McClean Lake South
    • EMCOR Group (EME) companies awarded North American and European facilities portfolio contract with Siemens Energy
    • Endeavour Silver (EXK) Continues to Intersect Positive Drill Results at the Parral Project
    • Enthusiast Gaming Holdings (EGLX) announces strategic Web3 Collaboration with Coinbase (COIN)
    • Equinox Gold (EQX) reports an illegal blockade and suspension of operations at its Los Filos Mine
    • Erasca (ERAS) Presents Promising Preliminary Phase 1/1b Monotherapy Data for ERAS-007 ERK and ERAS-601 SHP2 Inhibitors Supporting Ongoing and Future Combination Trials
    • Exelixis (EXEL) Announces Detailed Results from Phase 3 COSMIC-313 Pivotal Trial in Patients with Previously Untreated Advanced Kidney Cancer at ESMO 2022
    • FREYR Battery (FREY) awarded an agreement to Italy-based NTE Process to supply a complete and integrated drying and powder handling system for FREYR’s planned battery cell Gigafactory in Norway, known as Giga Arctic
    • GameStop (GME) enters into partnership with FTX, making company FTX's preferred retail partner in the U.S.
    • General Motors (GM) aiming to introduce direct consumer sales channel in China, according to Reuters
    • Gilead Sciences (GILD) reports Trodelvy significantly improved overall survival in pre-treated HR+/HER2- metastatic breast cancer patients in TROPiCS-02 Study
    • Google (GOOG) News Showcase feature is behind schedule, according to the Wall Street Journal
    • HUTCHMED (HCM) Highlights Phase III FRESCO-2 MRCT Data Summary of Fruquintinib in Refractory Metastatic Colorectal Cancer from the Upcoming ESMO 2022 Presentation
    • InflaRx (IFRX) announces vilobelimab phase III results in critically Ill COVID-19 patients published in the Lancet respiratory medicine
    • Innoviz Technologies (INVZ): Asian-based OEM selected INVZ to serve as LiDAR supplier for production passenger vehicles
    • Iridium Communications (IRDM) announced that it has reached an agreement with SpaceX to launch up to five of the company's remaining ground spare satellites from the Iridium NEXT program, on its Falcon 9 rocket
    • JetBlue Airways (JBLU): Air Emirates announces that its partnership with JetBlue ends on October 30, 2022
    • Linde plc (LIN) to increase green hydrogen production in the United States
    • MindMed (MNMD) Announces Positive Results from Collaborators' Placebo-Controlled Investigator-Initiated Trial Published in Peer-Reviewed Journal
    • Mirati Therapeutics (MRTX) Presents Late-Breaking Adagrasib Monotherapy and Combination Results in Advanced Colorectal Cancer
    • Momentus (MNTS) provided its fifth Mission Update on its inaugural Vigoride mission that launched on May 25
    • Olo Inc. (OLO) authorizes share repurchase program for up to $100 mln of common stock
    • Pfizer (PFE) awarded $4.85 bln U.S. Army modification contract
    • Quest Diagnostics (DGX) receives Emergency Use Authorization for proprietary Monkeypox test
    • Restaurant Brands Int'l's (QSR) exclusive operator of Tim Horton's coffee shops in China launches two ready-to-drink coffee products with Sinopec's Easy Joy convenience stores
    • Revance Therapeutics (RVNC) announces FDA approval of DAXXIFY for injection, the first and only peptide-formulated neuromodulator with long-lasting results
    • Silence Therapeutics (SLN) announces FDA fast track designation for SLN124, a novel investigational sirna therapy for the treatment of polycythemia vera
    • Silk Road Medical (SILK) Announces First Patient Enrolled in ROADSTER 3 Post Approval Study Evaluating TCAR® System in the Treatment of Standard Surgical Risk Patients
    • Stantec (STN) to develop framework to analyze impacts of PFAS on wastewater
    • Sun Communities (SUI) announces COO transition; Bruce Thelen, current Executive Vice President of Operations and Sales, will assume COO role effective December 31, 2022
    • Tesla (TSLA) delivered 76,965 China manufactured vehicles in August, according to Bloomberg
    • Teva Pharma (TEVA) reports Studies Show Effectiveness of AJOVY (fremanezumab) for Treatment of Migraine in Patients With Co-morbid Depression
    • The ONE Group (STKS) authorizes a share repurchase program for up to $10 mln; will expire in two years, unless further extended
    • Tilray (TLRY) announced that Breckenridge Distillery, a part of the Company’s U.S. business, has renewed and expanded its distribution agreement with Republic National Distributing Company
    • Toll Brothers (TOL) and Equity Residential to develop three new luxury rental communities in Dallas-Forth Worth area
    • Twitter (TWTR): Elon Musk will be allowed to amend Twitter countersuit, according to the Wall Street Journal
    • U.S. Xpress (USX) announces realignment plan primarily focused on improving its over-the-road operations; total costs expected to be reduced by approximately $25 mln on an annualized basis beginning in 4Q22
    • Vanda Pharma (VNDA) announced the notice of opportunity for an FDA hearing on Vanda's Supplemental New Drug Application for HETLIOZ
    • Veracyte (VCYT): New Data Suggest Veracyte’s Envisia Genomic Classifier Can Help Predict Disease Progression in Interstitial Lung Disease Patients Treated with Combination Immunosuppressive Therapy
    • Verint Systems (VRNT) CFO Douglas Robinson to step down; Grant Highlander promoted to succeed Robinson during Q4 (Jan)
    • ViewRay (VRAY) announced that GenesisCare purchased two additional MRIdian MRI-guided radiation therapy systems for installation at new-build comprehensive cancer centres
    • Walmart Plus (WMT) members will now get a Paramount+ (PARA) Essential subscription at no extra cost


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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