Traders Market Weekly: Balancing Expectations, Earnings and Money Flow

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    Cirrus Logic (CRUS) implements workforce reduction of approximately 5% in response to overall market conditions; CEO John Forsyth to reduce base salary by 10%, effective immediately.


    Lions Gate Entertainment (LGF.A) files Form 10 in connection with its planned separation into two independent, publicly traded companies.

    LGF.A up 2.5%


    Fair Value for Thursday, July 13:

    S&P 500: 4,506
    Nasdaq 100: 15,441
    DJIA: 34,544


    Equity indices in the Asia-Pacific region ended Thursday on a higher note.

    Japan’s Nikkei: +1.5%,
    Hong Kong’s Hang Seng: +2.6%,
    China’s Shanghai Composite: +1.3%,
    India’s Sensex: +0.3%,
    South Korea’s Kospi: +0.6%,
    Australia’s ASX All Ordinaries: +1.6%.


    Australia’s July MI Inflation Expectations 5.2% (expected 5.1%; last 5.2%)

    New Zealand’s June Business NZ PMI 47.5 (expected 49.8; last 48.9).
    June Electronic Card Retail Sales 1.0% m/m (expected -0.2%; last -1.7%); 4.2% yr/yr (expected 9.9%; last 3.3%).
    June Food Price Index 1.6% m/m (expected 1.5%; last 0.3%)


    China’s June trade surplus $70.62 bln (expected surplus of $74.80 bln; last surplus of $65.81 bln).
    June Imports -6.8% yr/yr (expected -4.0%; last -4.5%)
    Exports -12.4% yr/yr (expected -9.5%; last -7.5%)


    South Korea’s Import Price Index -15.7% yr/yr (expected -15.2%; last -12.3%)
    Export Price Index -14.7% yr/yr (expected -11.6%; last -11.3%)

    The Bank of Korea left its base rate unchanged at 3.50%, as expected, but also left the door open to an additional rate hike in the future.


    Technology stocks had a strong showing in Hong Kong after Chinese officials pledged to provide support for individual businesses and announced that regulation of “platform firms” will be improved.

    China Economic Daily highlighted the risks associated with local government financing vehicles due to heavy indebtedness.


    Major European indices trade in positive territory.

    STOXX Europe 600: +0.7%,
    Germany’s DAX: +0.6%,
    U.K.’s FTSE 100: +0.5%,
    France’s CAC 40: +0.8%,
    Italy’s FTSE MIB: +1.0%,
    Spain’s IBEX 35: +0.5%.


    U.K.’s May Construction Output -0.2% m/m (expected 0.0%; last -0.9%); 0.2% yr/yr (expected 0.8%; last 2.7%).
    May GDP -0.1% m/m (expected -0.3%; last 0.2%).
    May Industrial Production -0.6% m/m (expected -0.4%; last -0.2%); -2.3% yr/yr, as expected (last -1.6%).
    May Manufacturing Production -0.2% m/m (expected -0.4%; last -0.2%); -1.2% yr/yr (expected -1.7%; last -0.6%).
    May trade deficit GBP18.72 bln (expected deficit of GBP14.70 bln; last deficit of GBP14.64 bln)

    The Bank of England’s quarterly bank survey showed that mortgage defaults have reached their highest level since 2009 in Q2.

    British homebuilder Barratt Developments lowered its deliveries forecast for FY24 due to high rates.

    British Prime Minister Sunak is reportedly in favor of a 6% pay increase for public sector workers.


    Eurozone’s May Industrial Production 0.2% m/m (expected 0.3%; last 1.0%); -2.2% yr/yr (expected -1.2%; last 0.2%)

    France’s June CPI 0.2% m/m, as expected (last -0.1%); 4.5% yr/yr, as expected (last 5.1%)

    European Central Bank policymaker Visco said that he is somewhat against the preference for additional tightening, adding that the peak rate is not far away. Meanwhile, policymaker Stournaras said that a September rate hike is not a done deal, given the weakening economy.


    Delta Air Lines (DAL 50.10, +2.15, +4.5%): beats by $0.28, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY23 EPS in-line, revs in-line

    PepsiCo (PEP 188.40, +5.23, +2.9%): beats by $0.13, beats on revs; raises FY23 EPS above consensus

    Fastenal (FAST 57.10, -1.63, -2.8%): misses by $0.01, reports revs in-line


    Cirrus Logic (CRUS 85.31, +2.49, +3.0%): implements workforce reduction of approximately 5% in response to overall market conditions; CEO John Forsyth to reduce base salary by 10%, effective immediately


    Carvana (CVNA 36.66, -2.23, -5.7%): downgraded to Underweight from Neutral at JPMorgan

    Coinbase (COIN 84.93, -1.02, -1.2%): downgraded to Underweight from Equal Weight at Barclays

    SoFi Technologies (SOFI 8.88, -0.32, -3.5%): downgraded to Underweight from Equal-Weight at Morgan Stanley


    The Producer Price Index for final demand increased 0.1% month-over-month in June (consensus 0.2%) following a downwardly revised 0.4% decline (from -0.3%) in May. The index for final demand, less foods and energy (“core PPI”), also increased 0.1% month-over-month ( consensus 0.2%) following a downwardly revised 0.1% increase (from 0.2%) in May.

    On a year-over-year basis, the Producer Price Index for final demand was up just 0.1% while the Producer Price Index for final demand, less foods and energy, was up 2.4%.

    The key takeaway from the report is that wholesale inflation pressures are clearly moderating, which should be a boon for profit margins for companies able to retain pricing power.

Viewing 15 posts - 61 through 75 (of 108 total)
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