Trade Deficit; Consumer Credit for April; EIA Weekly Petroleum
Status Report; Canada International Merchandise Trade for April;
Bank of Canada Rate Decision
Today's Top Headlines/Must Reads:
- Treasury's $1 Trillion Debt Deluge Threatens Market Calm
- Why All the Recession Chatter? Let's Talk About a Slower
- Lawmakers Try Again to Curb Visa, Mastercard Fees, With
- U.S. Nears Deal to Produce GE Jet-Fighter Engine in India
Follow WSJ market coverage here
Stock futures edged lower on Wednesday, weighed down by a
bigger-than-expected drop in Chinese exports.
China's exports dropped 7.5% from a year ago in May, far
outpacing the 1% decline expected by economists. The slowdown is
the latest sign that the world's second-largest economy is
contending with a fading recovery, stoking fresh concerns about
global growth. Read more here .
Europe's Stoxx 600 edged down 0.2%. In mainland China, the
Shanghai Composite gained 0.1%. Hong Kong's Hang Seng added 0.8%,
while Japan's Nikkei 225 fell 1.8%.
Stocks to Watch
Coinbase shares have dropped sharply for two straight sessions,
after it and rival Binance were both sued by the SEC. Early trading
Wednesday pointed to a modest recovery, with Coinbase stock rising
2% ahead of the opening bell.
Couchbase revenue guidance for the second quarter came short of
analysts' estimates. Shares fell 18% in after-hours trading.
Casey's General Stores profit and revenue declined in the fourth
quarter. Shares fell 4.6% in aftermarket trading.
Cue Health said its Covid-19 molecular test has received a De
Novo marketing authorization from the FDA. Shares fell 3.7% in
Dave & Buster's Entertainment shares rose off-hours, after
it posted profit that beat analysts' estimates.
Shopify extended its rise in extended trading. Shares had risen
more than 6% Tuesday after the company completed the sale of its
Stitch Fix gained 7.6% in premarket trading. The company
reported a fiscal third-quarter loss narrower than analysts'
expectations and announced more cost-cutting initiatives.
Yext rose more than 17% after the company raised its fiscal-year
revenue and profit guidance.
The dollar edged higher as traders are wary of selling the
currency before inflation data due on Tuesday, despite growing
speculation that the Fed could pause raising interest rates next
week, ING said.
"The dollar's resilience probably denotes reluctance to add
dollar shorts ahead of the U.S. CPI risk event on 13th June - which
is still seen as having the potential to tilt the balance to a hike
the following day."
The Turkish lira sank to new lows against the dollar on
Wednesday, as concerns mounted over challenges facing the country's
new finance minister, and a report emerged that state lenders have
stopped selling dollars to defend it.
Citing traders, Bloomberg reported that state lenders were no
longer trying to prop up the lira with costly dollar sales, which
could be a sign of the new incoming finance minister's promise of a
more "rational economic policy."
The report noted that the country's state banks don't comment on
market interventions. Read more here .
Read Sterling Could Fall as Higher UK Rates May Hit Economy
Oil prices were lower for a second day in Europe, with Chinese
trade data showing a slump in exports and imports and as the EIA
said U.S. demand will rise at a slower pace than expected this
Base metals were mixed with gold lower in early London trade, as
demand concerns and macro headwinds continued to weigh and despite
bright spots in commodity data coming from China, ANZ said, with
imports in May beating expectations.
"The prospects of new stimulus should support commodities
demand," ANZ added.
Valuation remains a headwind for M&A in the North American
copper industry, with building a mine still cheaper than buying one
despite inflation, Citi said.
"Building a new mine is increasingly expensive (circa
$30,000/ton) but still cheaper than buying (circa
Nonetheless, history suggests strong copper prices will result
in more dealmaking, according to Citi, which said investor interest
in copper M&A is very high.
"The most likely target in our coverage still appears to be"
First Quantum. Freeport McMoRan "is a potential consolidator, but
the company message remains focused on organic opportunities."
Read Iron Ore Uptick Unlikely to Last
TODAY'S TOP HEADLINES
The Global Brands Coming to a Shopping Mall Near You
American consumers have long been renowned for their spending
power. Now global retailers want a bigger slice of the action.
Once wary of America, foreign fashion brands such as Mango,
Uniqlo and Zara are joining retail giants including Lego and IKEA
in pursuing major U.S. expansions. Executives say they are
encouraged by the country's upbeat economic prospects relative to
other parts of the world, and a growing sense that American
shoppers have become more receptive to new brands.
PGA Tour Deal With LIV Golf Puts Sponsors on the Spot
Sponsors and other companies affiliated with the PGA Tour will
face a reckoning in the wake of the golf powerhouse's decision to
combine with the Saudi-backed upstart LIV Golf, marketing
Golf sponsorship has historically offered brands from FedEx to
Rolex the opportunity to reach affluent audiences for hours or days
at a time via a sport that has for the most part avoided
German Industrial Production Rose Less Than Expected in April as
Car Production Weighs
Industrial production in Germany ticked up less than expected in
April, as motor-vehicle manufacturing dipped, adding to concerns
about the country's key manufacturing base.
Industrial output-comprising production in manufacturing, energy
and construction-rose 0.3% in April compared with the previous
month on a price, seasonally and calendar-adjusted basis, from an
upwardly revised 2.1% fall in March, data from the German
statistics office Destatis showed Wednesday.
China's EV Juggernaut Is a Warning for the West
China rocked the auto world twice this year. First, its electric
vehicles stunned Western rivals at the Shanghai auto show with
their quality, features and price. Then came reports that in the
first quarter of 2023 it dethroned Japan as the world's largest
How is China in contention to lead the world's most lucrative
and prestigious consumer goods market, one long dominated by
American, European, Japanese and South Korean nameplates? The
answer is a unique combination of industrial policy, protectionism
and homegrown competitive dynamism. Western policy makers and
business leaders are better prepared for the first two than the
Southern Ukrainian Towns Inundated as Floodwaters From Burst Dam
Floodwaters continued to rise on Wednesday after a major dam and
power station in a Russian-occupied part of Ukraine were destroyed,
forcing thousands of people to flee their homes and throwing a
curveball on the battlefield.
The rupture on Tuesday has added another dimension to a
humanitarian crisis resulting from a war that has killed tens of
thousands and displaced millions. It unleashed a torrent of water
that inundated dozens of towns and villages along the Dnipro River
separating Russian and Ukrainian-held parts of the southern Kherson
Chinese, Hong Kong, Iranian Firms Sanctioned for Allegedly
Aiding Iran Missile Program
The U.S. Treasury has placed sanctions on six entities and seven
individuals in China, Hong Kong and Iran for allegedly helping Iran
obtain technology for use in its ballistic missile program.
The Treasury's Office of Foreign Assets Control alleges that the
businesses and individuals obtained component materials for some of
the biggest players in Iran's ballistic missile development
program. These include Iran's Ministry of Defense and Armed Forces
Logistics, and affiliated groups such as Parchin Chemical Industry
and P.B. Sadr, which served as an intermediary helping Parchin to
acquire missile propellant, according to the Treasury.
Write to email@example.com TODAY IN CANADA
mdf commerce 4Q
Economic Calendar (ET):
0830 Q1 Labour productivity, hourly compensation & unit
0830 Apr International merchandise trade
1000 Bank of Canada interest rate announcement
Stocks to Watch:
C21 Investments Receives Cease Trade Order Due to Delay in
Filing Annual Financial Results; Filing Delayed to Allow Auditors
to Address Error in Tax Provision for Prior Years; Working With
Auditors to Restate 2022 Financials, Complete Audit of
Champion Iron Provides Update on Effect of Quebec Forest Fires;
No Damages to Facilities; Not Aware of Any Significant Damages to
Railway or Third-Party Infrastructure; Sees Services to Resume in
Near-Term; Sees Material Delays in Sales of Iron Ore Produced Due
to Service Interruption of Railway
Stingray 4Q EPS C$0.06; 4Q Rev C$78.9M; 4Q Adj EPS C$0.21
Expected Major Events for Wednesday
05:00/JPN: Apr Indexes of Business Conditions - Preliminary
06:00/UK: May Halifax House Price Index
06:00/GER: Apr Industrial Production Index
06:45/FRA: Apr Foreign trade
06:45/FRA: Apr Balance of payments
08:00/ITA: Apr Retail Sales
08:30/UK: May Narrow money (Notes & Coin) and reserve
08:30/UK: 1Q Household Finance Review
11:00/US: 06/02 MBA Weekly Mortgage Applications Survey
12:30/CAN: 1Q Labour productivity, hourly compensation &
unit labour cost
12:30/CAN: Apr International merchandise trade
12:30/US: Apr U.S. International Trade in Goods &
14:00/CAN: Bank of Canada interest rate announcement
14:00/US: May Online Help Wanted Index
14:30/US: 06/02 EIA Weekly Petroleum Status Report
19:00/US: Apr Consumer Credit
23:01/UK: May RICS Residential Market Survey
23:01/UK: May KPMG and REC UK Report on Jobs
23:50/JPN: May Bank Lending
23:50/JPN: 1Q 2nd Preliminary Quarterly GDP Estimates
23:50/JPN: May International Transactions in Securities
23:50/JPN: 1Q Quarterly External Debt & International
23:50/JPN: Apr Balance of Payments
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
ADF Group (DRX.T) is expected to report for 1Q.
Aceragen Inc (ACGN) is expected to report for 1Q.
Advaxis Inc (ADXS) is expected to report for 2Q.
BMTC Group Inc (GBT.T) is expected to report for 1Q.
BeyondSpring Inc (BYSI) is expected to report $-0.67 for 1Q.
Brown-Forman Corp - B Share (BFA,BFB) is expected to report
$0.41 for 4Q.
Campbell Soup (CPB) is expected to report $0.63 for 3Q.
Clearday Inc (CLRD) is expected to report for 1Q.
Crown Crafts (CRWS) is expected to report for 4Q.
DXI Capital Corp (DXI.H.V) is expected to report for 1Q.
Daktronics (DAKT) is expected to report $0.14 for 4Q.
Dollarama (DLMAF,DOL.T) is expected to report $0.59 for 1Q.
GameStop Corp (GME,GMEB) is expected to report $-0.15 for
Greif Inc - A Share (GEF,GEFB) is expected to report $1.31 for
HashiCorp Inc (HCP) is expected to report for 1Q.
Ideanomics Inc (IDEX) is expected to report for 1Q.
J W Mays Inc (MAYS) is expected to report for 3Q.
J.Jill (JILL) is expected to report for 1Q.
Lakeland Industries (LAKE) is expected to report $0.12 for
Lovesac Co (LOVE) is expected to report $-0.42 for 1Q.
North West Co Inc (NWC.T) is expected to report for 1Q.
Ollie's Bargain Outlet Holdings Inc (OLLI) is expected to report
$0.46 for 1Q.
Oxford Industries (OXM) is expected to report $1.33 for 1Q.
Rent the Runway Inc (RENT) is expected to report for 1Q.
Royale Energy (ROYL) is expected to report for 1Q.
Semtech (SMTC) is expected to report $-0.60 for 1Q.
Silver Bull Resources Inc (SVB.T) is expected to report for
Smartsheet Inc (SMAR) is expected to report $-0.34 for 1Q.
TVI Pacific Inc (TVI.V,TVIPF) is expected to report for 1Q.
Torrid Holdings Inc (CURV) is expected to report for 1Q.
Transcontinental Inc - Class A (TCL.A.T,TCL.B.T,TCLAF) is
expected to report for 2Q.
,TCOM) is expected to report for 1Q.
Tupperware Brands Corp (TUP) is expected to report $0.92 for
United Natural Foods Inc (UNFI) is expected to report $0.46 for
Vera Bradley Inc (VRA) is expected to report $-0.24 for 1Q.
Verint (VRNT) is expected to report $-0.05 for 1Q.
VersaBank (VBNK.T) is expected to report $0.34 for 2Q.
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ANALYST RATINGS ACTIONS
AMC Networks Cut to Underweight From Equal-Weight by Morgan
Amedisys Cut to Neutral From Outperform by Credit Suisse
American Electric Power Cut to Neutral From Buy by UBS
Apple Cut to Neutral From Buy by DA Davidson
AT&T Raised to Market Perform From Underperform by
Bellerophon Therapeutics Cut to Hold From Buy by Laidlaw &
Cabot Corp Cut to Neutral From Overweight by JP Morgan
CenterPoint Energy Cut to Neutral From Buy by UBS
Cigna Raised to Buy From Neutral by B of A Securities
CMS Energy Raised to Buy From Neutral by UBS
Community Bank System Raised to Outperform From Market Perform
by Raymond James
Dollar General Cut to Neutral From Outperform by Daiwa
DTE Energy Raised to Buy From Neutral by UBS
EPAM Systems Cut to Equal-Weight From Overweight by Barclays
EPAM Systems Cut to Neutral From Buy by Citigroup
EPAM Systems Cut to Neutral From Overweight by Piper Sandler
EPAM Systems Cut to Sector Weight From Overweight by Keybanc
Lennox Raised to Overweight From Sector Weight by Keybanc
Lumen Technologies Raised to Market Perform From Underperform by
Molson Coors Beverage Raised to Neutral From Underperform by B
of A Securities
NBT Bancorp Cut to Outperform From Strong Buy by Raymond
NiSource Raised to Buy From Neutral by UBS
Oscar Health Raised to Neutral From Underperform by B of A
SiteOne Landscape Supply Raised to Buy From Hold by Truist
SJW Group Cut to Neutral From Buy by UBS
Ultragenyx Pharma Raised to Outperform From In-Line by Evercore
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
June 07, 2023 06:07 ET (10:07 GMT)
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