Morning Reads

Morning Reads

Futures

PREMIUM

Upgrades/Downgrades

Upgrades

  • Citi upgraded APA Corp. (APA) to Buy from Neutral with a price target of $58, up from $40. The firm notes the company offers an underappreciated growth story, combining upcoming exposure to the strength in global gas prices coupled with base volume growth, and potentially supplemented by a Suriname development longer term. APA's free cash flow growth in over the next three years at strip is 2%, whereas the average exploration and production declines over 20%, says the firm.
  • Cowen upgraded Carpenter Technology (CRS) to Outperform from Market Perform with a $45 price target. The firm notes the recent pullback in the shares provides an attractive entry point. The firm sees accelerating earnings gains and a catalyst-rich backdrop with 787, 737 and A320 rate hikes as well as the investor day. %). Lead times in Carpenter's "high margin" aero engine products are greater than 40 weeks, the firm points out.
  • Piper Sandler upgraded Carvana (CVNA) to Overweight from Neutral with a price target of $73, down from $98. The firm notes the company is now 1/10th as valuable as it was 12 months ago, and many realistic scenarios suggest that Carvana is grossly undervalued. The company's value is a function of market share in the used car market and profitability, says the firm, who says he's analyzed Carvana in these terms, and that "there's reason for optimism." The firm admits, however, that rising interest rates are a risk and bankruptcy is a real possibility.

Downgrades

  • Mizuho downgraded Adobe (ADBE) to Neutral from Buy with a price target of $440, down from $480, ahead of the company's fiscal Q3 results on September 15. The firm notes channel checks this quarter were indicative of a more difficult environment than expected, even allowing for a challenging macro. The firm believes Adobe guided conservatively enough for Q3, but wouldn't be surprised by a guide down for Q4. The firm also thinks Street revenue and earnings estimates for fiscal 2023 look too high. As such, the shares could be range-bound over the near- to medium-term, writes the firm.
  • Wells Fargo downgraded Cable One (CABO) to Equal Weight from Overweight with a price target of $1,200, down from $1,700. Cable One is still the best house in the Cable neighborhood, but the firm's view of the sector is incrementally worse ahead of the capex cycle. The firm believes Cable One has the best network and needs to likely spend the least to get to DOCSIS 4.0, but it's still going to pressure free cash flow longer term at a time when the macro and competition may also hinder growth.

Others

  • Goldman initiated coverage of Agilon Health (AGL) with a Buy rating and $38 price target. The firm believes Agilon is well positioned in the large and growing Medicare value-based care market. The firm notes the company's capital efficient go-to-market strategy is a key differentiator in this attractive market.
  • Stifel initiated coverage of Darling Ingredients (DAR) with a Buy rating and $101 price target. The firm notes the company controls 15% of the world's waste fats and greases and its management team is widely regarded as industry leaders. The firm says the company's scale and experience make it a natural consolidator of the highly fragmented rendering market, allowing it to enhance feedstock security and benefit from a rising price environment for waste fats/greases.
  • Evercore ISI initiated coverage of Enovis (ENOV) with an Outperform rating and $68 price target. Along with triple digit percentage margin expansion, Enovis has laid out a path to high teens to greater

This Morning

 S&P 500 futures are up 23 points and are trading 0.6% above fair value. The Nasdaq 100 futures are up 84 points and are trading 0.7% above fair value. The Dow Jones Industrial Average futures are up 113 points and are trading 0.3% above fair value.

Equity futures indicate a higher open driven by carryover momentum following last week's rebound effort. There's also some hesitation ahead of tomorrow's August CPI report at 8:30 a.m. ET. 

The White House is expected to tighten restrictions on semiconductor chip exports to China, according to the Reuters.

In central bank news, there's some speculation that China will lower its medium-term lending facility rate. European Central Bank policymakers are reportedly preparing to raise the key rate to 2.00% with some lobbying for restrictive policy. ECB policymaker Nagel said that clearer steps will need to be taken if inflation doesn't ease, adding that it could exceed 10.0% at its peak, which is expected in December.

Energy complex futures are making upside moves this morning. WTI crude oil futures are up 0.8% to $87.52/bbl. Natural gas futures are up 1.2% to $8.09/mmbtu.

The US Dollar Index is down 0.8% to 108.13.

The 2-yr Treasury note yield, which reached 3.58% overnight, is down four basis points to 3.53% while the 10-yr note yield is down four basis points to 3.28%.

In corporate news:

  • Bristol-Myers (BMY 75.75, +5.59, +7.97%): receives FDA approval for Sotyktu
  • Walt Disney (DIS 115.88, +0.70, +0.61%): activist Dan Loeb reportedly calling off his push to spin off ESPN, according to CNBC
  • Newmont Goldcorp (NEM 44.16, +0.99, +2.29%): initiated with a Buy at Goldman
  • Carvana (CVNA 39.03, +2.41, +6.58%): upgraded to Overweight from Neutral at Piper Sandler
  • iShares Nasdaq Biotech ETF (IBB 128.63, +0.23, +0.18%): President Biden signed executive order to launch a national biotechnology and biomanufacturing initiative

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region began the week on a higher note, though overall volume was reduced due to holiday closures in China, Hong Kong, and South Korea. Japan's Nikkei: +1.2%, Hong Kong's Hang Seng: CLOSED, China's Shanghai Composite: CLOSED, India's Sensex: +0.5%, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: +1.0%.
    • In economic data:
      • Japan's August Machine Tool Orders 10.7% yr/yr (last 5.5%)
      • New Zealand's July Visitor Arrivals 41.8% m/m (last 30.1%)
    • In news:
      • There was some speculation that China will lower its medium-term lending facility rate.
      • Japan is expected to scrap its limit on daily visitor arrivals as early as this week.
      • New Zealand is lifting its mask and vaccine mandates.
  • Major European indices trade on a firmly higher note. STOXX Europe 600: +1.1%, Germany's DAX: +1.5%, U.K.'s FTSE 100: +1.2%, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.6%, Spain's IBEX 35: +1.3%.
    • In economic data:
      • U.K.'s July GDP 0.2% m/m (expected 0.3%; last -0.6%). July Construction Output -0.8% m/m (expected 0.5%; last -1.4%); 4.3% yr/yr (expected 5.6%; last 4.1%). July Industrial Production -0.3% m/m (expected 0.4%; last -0.9%); 1.1% yr/yr (expected 1.9%; last 2.4%). July Manufacturing Production 0.1% m/m (expected 0.4%; last -1.6%); 1.1% yr/yr (expected 1.6%; last 1.3%). July trade deficit GBP19.36 bln (expected deficit of GBP22.30 bln; last deficit of GBP22.85 bln)
      • Italy's July Industrial Production 0.4% m/m (expected 0.3%; last -2.0%); -1.4% yr/yr (expected -0.4%; last -1.1%)
    • In news:
      • European Central Bank policymakers are reportedly preparing to raise the key rate to 2.00% with some lobbying for restrictive policy.
      • ECB policymaker Nagel said that clearer steps will need to be taken if inflation doesn't ease, adding that it could exceed 10.0% at its peak, which is expected in December.
      • French Finance Minister Le Maire said that consumers will have to absorb some of the effect of higher energy prices.

U.S. equity futures:

  • S&P 500 Futures: +23 @ 4,091
  • DJIA Futures: +108 @ 32,259
  • Nasdaq 100 Futures: +81 @ 12,669

Overseas:

  • Europe: DAX +1.5%, FTSE +1.2%, CAC +1.2%
  • Asia: Nikkei +1.2%, Hang Seng CLOSED, Shanghai Composite CLOSED

Commodities:

  • Crude Oil +0.72 @ 87.51
  • Nat Gas  +0.088 @ 8.084
  • Gold +10.60 @ 1739.20
  • Silver +0.600  @ 19.367
  • Copper +0.0340 @ 3.6620


U.S. Summary
:

  • Earnings/Guidance:
    • Abcam (ABCM) reports in-line results; beats on revs
    • ASE Technology (ASX) reports August revs increased 26.5% yr/yr to NT$63.8 bln
    • SVB Financial Group (SIVB) provided its expectations for net interest margin and net interest income for the third quarter of 2022
  • General News:
    • White House expected to tighten restrictions on chip exports to China, according to Reuters
    • President Biden to launch a national biotechnology and biomanufacturing initiative
    • Phone manufacturers expected to follow Apple's plan for satellite-based emergency communication, according to the Wall Street Journal
    • A10 Networks (ATEN) purchased an aggregate of 3.5 mln of its shares from Summit
    • AbbVie (ABBV) presents New Late-Breaking Results from Phase 3 Trials of SKYRIZI (risankizumab) Evaluating Long-term Effect on Skin and Joint Symptoms in Patients with Psoriatic Arthritis at Week 100
    • ACADIA Pharmaceuticals (ACAD) receives acceptance from FDA for NDA of Trofinetide
    • Alector (ALEC) Initiates Phase 1 Clinical Trial of AL044 for the Treatment of Alzheimer’s Disease
    • Allakos (ALLK) Announces Initiation of Phase 2b Clinical Trial of Subcutaneous Lirentelimab in Chronic Spontaneous Urticaria
    • Amgen (AMGN) reports Lumakras (sotorasib) combined with Vectibix (panitumumab) shows confirmed 30% objective response rate in patients with KRAS G12C-mutated metastatic colorectal cancer
    • Apexigen (APGN) Presents New Data from a Phase 2 Trial Evaluating its CD40 Antibody, Sotigalimab, in Combination with Neoadjuvant Chemoradiation in Patients with Resectable Esophageal and Gastroesophageal Junction Cancers at ESMO Congress 2022
    • AstraZeneca (AZN) reports Imfinzi plus chemotherapy further improved overall survival benefit in advanced biliary tract cancer in the TOPAZ-1 Phase III trial, reducing the risk of death by 24% in additional follow-up
    • AstraZeneca (AZN) reports ENHERTU (fam-trastuzumab deruxtecan-nxki) Continues to Demonstrate Clinically Meaningful Tumor Response in Patients with HER2-mutant Metastatic Non-small Cell Lung Cancer
    • AstraZeneca (AZN) reports ENHERTU (fam-trastuzumab deruxtecan-nxki) Continues to Demonstrate Clinically Meaningful Tumor Response in Patients with HER2-mutant Metastatic Non-small Cell Lung Cancer
    • BeiGene (BGNE) Announces Data Presentations at ESMO 2022 Including Late-Breaking Oral Presentation for Tislelizumab in First-Line Unresectable Hepatocellular Cancer
    • Bluebirdbio's (BLUE) Chief Strategy and Financial Officer plans to leave to pursue new career opportunities; last day will be October 14, 2022
    • Bread Financial (BFH) makes comments on business trends and metrics at Barclays Financial Services Conference
    • Bristol Myers Squibb (BMY) Announces New Sotyktu (deucravacitinib) Long-Term Data Showing Clinical Efficacy Maintained for Up to Two Years with Continuous Treatment in Moderate-to-Severe Plaque Psoriasis
    • Bristol-Myers (BMY) receives FDA approval for Sotyktu
    • Cardiff Oncology (CRDF) Announces New Preclinical and Clinical Data from Program in KRAS-mutated Metastatic Colorectal Cancer (mCRC) at the ESMO Congress 2022
    • Centessa Pharmaceuticals (CNTA) Announces Non-Human Primate Pharmacokinetic and Safety Data for LB101 (PD-L1xCD47) Demonstrating Potential for Enhanced Therapeutic Index
    • Concert Pharmaceuticals (CNCE) Announces Presentation of CTP-543 THRIVE-AA1 Phase 3 Data in Alopecia Areata During Late Breaking Session at EADV Congress
    • Deciphera Pharmaceuticals, Inc. (DCPH) Presents Updated Phase 1/2 Data for Vimseltinib in TGCT at the European Society for Medical Oncology (ESMO) Congress 2022
    • Deciphera Pharmaceuticals, Inc. (DCPH) Presents Initial Phase 1 Single Agent Dose Escalation Data for First-in-Class ULK Inhibitor of Autophagy, DCC-3116, at the European Society for Medical Oncology (ESMO) Congress 2022
    • Deere (DE) expanding technology in its products, according to the Wall Street Journal
    • Disney (DIS) looking to add sports wagering app, according to Bloomberg
    • Dyne Therapeutics (DYN) Highlights DM1 and DMD Clinical Programs During “Spotlight on the Clinic” Virtual Event
    • EchoStar's (SATS) Hughes Network Systems started rolling out a new low-latency satellite internet offering to consumers in select U.S. markets
    • Edgewise Therapeutics (EWTX) Announces Positive 4-Month Interim Results from the ARCH Open Label Study of EDG-5506 in Adults with Becker Muscular Dystrophy
    • Equinox Gold (EQX) announces that the blockade at its Los Milos Mine in Mexico has been removed and operations resumed on September 10
    • Exact Sciences (EXAS) Demonstrates Power of Multi-Cancer Early Detection Approach with Data Presentation at the 2022 European Society for Medical Oncology Congress
    • Exelixis (EXEL) Announces Dose-Escalation Results from the Phase 1 STELLAR-001 Trial Evaluating XL092 Alone and in Combination with an Immune Checkpoint Inhibitor in Patients with Advanced Solid Tumors at ESMO 2022
    • Fortuna Silver Mines (FSM) extends gold mineralization at Sunbird and identifies new regional prospects at Séguéla
    • General Electric (GE) announces Board of Directors for future independent GE HealthCare; confirms target spin-off timing of first week of January 2023
    • Gritstone (GRTS) Presents Positive Initial Phase 2 Data in Late-Line Solid Tumor Patients Treated With KRAS-Directed Immunotherapy (SLATE) at ESMO 2022
    • Haemonetics (HAE) has earned CE mark certification for its VASCADE vascular closure and VASCADE MVP venous vascular closure systems
    • Hersha Hospitality Trust (HT) to sell two of its West Coast properties for gross proceeds of $125 million, or ~$455,000 per key
    • IDEAYA (IDYA) Reports Positive Interim Phase 2 Clinical Results for Darovasertib and Crizotinib Synthetic Lethal Combination in Metastatic Uveal Melanoma
    • I-Mab (IMAB) Announces Positive Phase 2 Data of Lemzoparlimab in Combination with Azacitidine (AZA) in Patients with Higher Risk Myelodysplastic Syndrome at ESMO 2022
    • Immatics (IMTX) Presents Comprehensive Preclinical Data Set for TCR Bispecific Candidate IMA402 Targeting PRAME at European Society for Medical Oncology (ESMO) Congress 2022
    • ImmunoGen (IMGN) Presents Additional Analyses Evaluating Mirvetuximab Soravtansine in Ovarian Cancer at ESMO
    • Int'l Paper (IP) and the Internal Revenue Service agreed to settle the previously disclosed 2015 timber monetization restructuring tax matter
    • Invitae (NVTA) announces collaboration with Simons Searchlight to accelerate research through data sharing
    • Keros Therapeutics (KROS) Presents Additional Clinical Data from its KER-012 Program and Preclinical Data from its KER-050 Program at the American Society of Bone and Mineral Research 2022 Annual Meeting
    • Lightning eMotors (ZEV) CFO Teresa Covington is retiring, effective October 2; David Agatston will join as new CFO beginning October 3
    • Liquidity Services (LQDT) announces the auction of energy surplus in the Gulf of Mexico for a leading oil and gas industry partner
    • Merck's (MRK) Five-Year Data for KEYTRUDA (pembrolizumab) Plus Chemotherapy Showed Sustained Survival Benefit Versus Chemotherapy Alone in Two Studies for Metastatic Non-Small Cell Lung Cancer
    • Merck (MRK) and Eisai Present Results From Phase 3 LEAP-002 Trial Evaluating KEYTRUDA (pembrolizumab) Plus LENVIMA® (lenvatinib) Versus LENVIMA Monotherapy in Patients With Unresectable Hepatocellular Carcinoma
    • MSG Sports' (MSGS) President and CEO to step down at end of year; also names David Hopkinson as COO, effective immediately
    • New Pacific (NEWP) Intercepts 111 Metres Grading 1.54 Grams Per Tonne Gold Near Surface at the Silverstrike Project
    • Nikola (NKLA) founder facing start of securities fraud trial this week, according to the Wall Street Journal
    • Novartis AG (NVS) reports Cosentyx shows clinically meaningful symptom improvements in patients with hidradenitis suppurativa in pivotal Phase III trials
    • Ocwen Financial (OCN) Comments On New Financial Eligibility Requirements Announced by FHFA and Ginnie Mae
    • POINT Biopharma (PNT) Provides Updated Efficacy and Safety Data from the Lead-In Cohort of the Phase 3 SPLASH Trial in mCRPC at ESMO Congress 2022
    • PyroGenesis Canada (PYR) announced termination of automatic securities disposition plan
    • Raytheon Technologies (RTX) awarded a $184 mln contract for ASARS-2B sensors
    • Regeneron Pharma (REGN) reports Fianlimab (LAG-3 Inhibitor) Combined with Libtayo (cemiplimab) Demonstrates Greater than 60% Response Rates in Two Independent Cohorts of Patients with Advanced Melanoma Naïve to PD-1 or PD-L1 Inhibitors
    • Regeneron Pharma (REGN) reports Positive Neoadjuvant Libtayo (cemiplimab) Monotherapy Data in Resectable Cutaneous Squamous Cell Carcinoma Presented at ESMO and Published in NEJM
    • Relay Therapeutics (RLAY) reports Late Breaking Data Presented at ESMO Congress 2022 Demonstrate Potential of RLY-4008 to Transform Treatment Options for Cholangiocarcinoma Patients with FGFR2-Driven Disease
    • Ritchie Bros. (RBA) latest auction in Edmonton, Alberta generated $58+ mln in gross transaction value
    • Spectrum Pharma (SPPI) receives FDA approval for ROLVEDON injection; expects to launch product in Q4
    • SpringWorks Therapeutics (SWTX) Announces Data from Phase 3 DeFi Trial Evaluating Nirogacestat in Adult Patients with Progressing Desmoid Tumors at the European Society for Medical Oncology (ESMO) Congress 2022
    • Stellantis (STLA): There's a strike at Stellantis plant in Indiana, according to Reuters
    • Tesla (TSLA) planning domestic lithium refinery, according to the Wall Street Journal
    • Titan Medical (TMDI) Signs Definitive Agreement with Medtronic (MDT)
    • Veracyte (VCYT) presents New Data at ESMO 2022 Show Veracyte’s Decipher Prostate Genomic Classifier May Help Inform Personalized Treatment Decisions in Men with Advanced Prostate Cancer
    • Vera Therapeutics (VERA) amends license agreement with Novartis
    • Vertex Energy (VTNR) provides progress & strategic timeline update of mobile refinery renewable diesel conversion project
    • XPO Logistics (XPO) announced that Jay Silberkleit has been appointed chief information officer, effective upon the spin-off of XPO’s brokered transportation platform
  • M&A:
    • AnaptysBio (ANAB) sell royalty interest of Zejula for up to $45 mln
    • Clarivate (CLVT) announces that Newfold Digital acquires MarkMonitor from company for approximately $302.5 mln
    • DiamondHead Holdings Corp. (DHHC): Great Southern Homes to become a public company through a business combination with DiamondHead Holdings Corp. under the name United Homes Group
    • Endeavour Silver (EXK) entered into an agreement to sell a 100% interest in Minera Oro Silver de Mexico, S.A. de C.V., a wholly owned subsidiary of Endeavour to Grupo ROSGO
    • Lakeshore Acquisition II Corp (LBBB): Nature's Miracle to be listed on Nasdaq through business combination with Lakeshore Acquisition II Corp
    • Stepan Company (SCL) to acquire the surfactant business and associated assets of PerformanX Specialty Chemicals; expected to close in the third quarter of 2022
    • Twitter (TWTR): Elon Musk files amended 13D disclosing letter formally notifying Twitter that he has become aware of certain facts that serve as a new basis for terminating their merger
    • Twitter (TWTR) responds to most recent notice of purported termination of the Merger Agreement
    • Zendesk (ZEN): EC clears acquisition of joint control of Zendesk by H&F and Permira
  • Syndicate
    • Alnylam Pharma (ALNY) commences offering of $900 mln of convertible senior notes due 2027
    • Chicken Soup for the Soul Entertainment (CSSE) files for 7,745,453 share common stock offering by selling shareholders, relates to warrants
    • MicroStrategy (MSTR) enters into a Sales Agreement related to offering of up to $500 mln of common stock
    • Mirum Pharmaceuticals (MIRM) files mixed securities shelf offering
    • Relay Therapeutics (RLAY) announces underwritten offering of $300 mln in common stock
    • Shopify (SHOP) files mixed securities shelf offering
    • SmileDirectClub (SDC) files for $400 mln mixed securities shelf offering
    • Vector Grp (VGR) files mixed securities shelf offering
    • Viridian Therapeutics (VRDN) files mixed securities shelf offering
    • Vroom (VRM) files for $300 mln mixed securities shelf offering
    • WeTrade Group (WETG) files for $300 mln mixed securities shelf offering
  • IPOs:
    •  Expected to Price:
      • Corebridge Financial (NYSE: CRBG): The spin-off of AIG (AIG), which is one of the largest providers of retirement solutions and insurance products in the United States, is expected to price its 80.0 M share IPO between $21-$24.


Gapping Up/Down

  • Gapping up:
    • SPPI +19.7%, CLVS +14.8%, CRDF +9.3%, IMTX +8.3%, BMY +6.9%, IDYA +5.9%, APGN +5.8%, PNT +5.7%, EWTX +4.7%, CSSE +4.3%, IMAB +4%, FSM +3.2%, MSTR +3.1%, VGR +3%, OXY +2.1%, NVS +1.9%, AZN +1.2%, MRK +0.7%
  • Gapping down:
    • LYEL -4.9%, VCYT -3.9%, SWTX -3.4%, EXAS -3%, VRM -2.8%, MSGS -2.4%, ATEN -2.3%, AMGN -2.1%, RLAY -2.1%, IMGN -2%, SHOP -1.8%, TWTR -0.9%

Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades
    • APA Corp. (APA) upgraded to Buy from Neutral at Citigroup; tgt raised to $58
    • B2Gold (BTG) upgraded to Action List Buy from Buy at TD Securities
    • Canadian Nat'l Rail (CNI) upgraded to Buy from Neutral at BofA Securities; tgt raised to $135
    • Canadian Pacific (CP) upgraded to Buy from Neutral at BofA Securities; tgt raised to $87
    • Carpenter Tech (CRS) upgraded to Outperform from Market Perform at Cowen; tgt $45
    • Carvana (CVNA) upgraded to Overweight from Neutral at Piper Sandler; tgt lowered to $73
    • Enbridge (ENB) upgraded to Outperform from Mkt Perform at Raymond James
    • Telos Corporation (TLS) upgraded to Outperform from Neutral at Wedbush; tgt $15
    • Union Pacific (UNP) upgraded to Buy from Neutral at BofA Securities; tgt $260
  • Downgrades:
    • Adobe (ADBE) downgraded to Neutral from Buy at Mizuho; tgt lowered to $440
    • Cable ONE (CABO) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $1200
    • Corus Entertainment (CJREF) downgraded to Sector Perform from Outperform at National Bank Financial
    • Enghouse Systems (EGFSF) downgraded to Hold from Buy at TD Securities
    • Oak Street Health (OSH) downgraded to Neutral from Buy at Goldman; tgt lowered to $29
    • Occidental Petro (OXY) downgraded to Neutral from Buy at Citigroup; tgt raised to $67
    • Pernod-Ricard (PDRDY) downgraded to Hold from Buy at Deutsche Bank
  • Others:
    • Agilon Health (AGL) initiated with a Buy at Goldman; tgt $38
    • Agnico-Eagle Mines (AEM) initiated with a Buy at Goldman
    • Alphatec (ATEC) initiated with an Overweight at Morgan Stanley; tgt $13
    • Barrick (GOLD) initiated with a Neutral at Goldman; tgt $18
    • Bill.com (BILL) initiated with an Overweight at Morgan Stanley; tgt $220
    • CoStar Group (CSGP) initiated with a Market Perform at BMO Capital Markets; tgt $83
    • Dakota Gold Corp. (DC) initiated with a Speculative Buy at Canaccord Genuity; tgt $5.25
    • Darling Ingredients (DAR) initiated with a Buy at Stifel; tgt $101
    • Enovis Corporation (ENOV) initiated with a Buy at Canaccord Genuity; tgt $67
    • Enovis Corporation (ENOV) initiated with an Outperform at Evercore ISI; tgt $68
    • Franco-Nevada (FNV) initiated with a Neutral at Goldman
    • Jack In The Box (JACK) added to Best Ideas List at Wedbush; tgt raised to $115
    • Monday.com (MNDY) initiated with a Buy at Loop Capital; tgt $175
    • Newmont Goldcorp (NEM) initiated with a Buy at Goldman; tgt $53
    • Pagaya (PGY) initiated with a Market Perform at MoffettNathanson; tgt $12
    • PTC Therapeutics (PTCT) initiated with a Buy at Jefferies; tgt $62
    • Roblox (RBLX) initiated with an Underperform at Cowen; tgt $31
    • Wheaton Precious Metals (WPM) initiated with a Buy at Goldman

Upcoming Events:

  • Econ Data:
    • No economic data of note.


Asia & Europe detail:

Asia: Nikkei +1.2%, Hang Seng CLOSED, Shanghai Composite CLOSED

Equity indices in the Asia-Pacific region began the week on a higher note, though overall volume was reduced due to holiday closures in China, Hong Kong, and South Korea. There was some speculation that China will lower its medium-term lending facility rate. Japan is expected to scrap its limit on daily visitor arrivals as early as this week. New Zealand is lifting its mask and vaccine mandates.

  • In economic data:
    • Japan's August Machine Tool Orders 10.7% yr/yr (last 5.5%)
    • New Zealand's July Visitor Arrivals 41.8% m/m (last 30.1%)

---Equity Markets---

  • Japan's Nikkei: +1.2%
  • Hong Kong's Hang Seng: CLOSED
  • China's Shanghai Composite: CLOSED
  • India's Sensex: +0.5%
  • South Korea's Kospi: CLOSED
  • Australia's ASX All Ordinaries: +1.0%

---FX---

  • USD/JPY: +0.1% to 142.62
  • USD/CNH: -0.2% to 6.9184
  • USD/INR: -0.2% to 79.51


Europe: 
DAX +1.5%, FTSE +1.2%, CAC +1.2%

Major European indices trade on a firmly higher note. European Central Bank policymakers are reportedly preparing to raise the key rate to 2.00% with some lobbying for restrictive policy. ECB policymaker Nagel said that clearer steps will need to be taken if inflation doesn't ease, adding that it could exceed 10.0% at its peak, which is expected in December. French Finance Minister Le Maire said that consumers will have to absorb some of the effect of higher energy prices.

  • In economic data:
    • U.K.'s July GDP 0.2% m/m (expected 0.3%; last -0.6%). July Construction Output -0.8% m/m (expected 0.5%; last -1.4%); 4.3% yr/yr (expected 5.6%; last 4.1%). July Industrial Production -0.3% m/m (expected 0.4%; last -0.9%); 1.1% yr/yr (expected 1.9%; last 2.4%). July Manufacturing Production 0.1% m/m (expected 0.4%; last -1.6%); 1.1% yr/yr (expected 1.6%; last 1.3%). July trade deficit GBP19.36 bln (expected deficit of GBP22.30 bln; last deficit of GBP22.85 bln)
    • Italy's July Industrial Production 0.4% m/m (expected 0.3%; last -2.0%); -1.4% yr/yr (expected -0.4%; last -1.1%)

---Equity Markets---

  • STOXX Europe 600: +1.1%
  • Germany's DAX: +1.5%
  • U.K.'s FTSE 100: +1.2%
  • France's CAC 40: +1.2%
  • Italy's FTSE MIB: +1.6%
  • Spain's IBEX 35: +1.3%

---FX---

  • EUR/USD: +0.9% to 1.0132
  • GBP/USD: +0.8% to 1.1675
  • USD/CHF: -0.5% to 0.9551


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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