Durable Goods for August, EIA Weekly Petroleum Report; Earnings
from Micron Technology
Today's Top Headlines/Must Reads:
- The Stock Market Has an Earnings Problem
- Chinese Central Bank Vows to Step Up Policy Support
- This Ford vs. GM Feud Could Shape the Future of EVs in
Follow WSJ market coverage here
A dip in Treasury yields early Wednesday coincided with a pick
up in stock-index futures as some investors sensed the market's
latest retreat is overdone.
"September's end can't come soon enough based on the action
we're seeing in stocks this week. It's a bloodbath in small-caps,"
Bespoke Investment Group said.
However, worries over possibly prolonged Federeal Reserve
tightening and U.S. politics may cap gains.
"Investors continue to grapple with the implications of an
extended period of elevated interest rates and the potential
economic repercussions, and they seem to favor the cut-run maneuver
this week," SPI Asset Management said.
"Heightened investor anxiety due to the looming possibility of a
partial U.S. government shutdown is not helping matters," it
rose 0.3% in premarket trading after slumping 4% on Wednesday after
the FTC said it was suing the company.
Costco Wholesale reported fourth-quarter earnings and sales that
beat analysts' estimates but the stock fell 2.1% in premarket
trading after it failed to provide an update on a potential
increase in membership fees, a move that many on Wall Street
believe is overdue.
Hayward Holdings rose 9.5%, after S&P Dow Jones Indices said
the company would join the S&P SmallCap 600 index.
MillerKnoll raised its fiscal 2024 outlook, saying it expects
adjusted earnings $1.85 to $2.15 a share, better than its previous
guidance for profit of $1.70 and $2 a share. The stock rose
Peloton Interactive was rising 1% after naming Nick Caldwell as
its next chief product officer.
Tuesday's Post-Close Movers
Cardiff Oncology reported positive data in two trials evaluating
the use of onvansertib to treat different types of cancer. Shares
Morphic Holdings said CEO Praveen Tipirneni would take a medical
leave of absence after suffering an "emergent medical event."
Shares fell 7.2%.
The dollar extended gains, hitting another ten-month high
against a basket of currencies, helped as investor worries over a
potential government shutdown lifted safe-haven assets, Swissquote
"Investors continue to dump stocks and buy dollars on looming
uncertainty regarding whether the government will be shut in three
There is progress regarding a six-week short-term funding deal,
but getting an approval from the Senate will be a challenge,
Read End-of-Month Rebalancing Could Boost Demand for US
Oil prices were rising, as worries over supply, stemming from
Saudi-led production cuts, provided support to energy markets.
"The likelihood of $100 a barrel has certainly increased
following Saudi Arabia and Russia's decision to extend cuts to oil
production and exports earlier this month," Commonwealth Bank of
Both OPEC and the IEA forecast of deficits should mean prices
are well supported, with the only major caveat being worries over
global economic growth, it added.
"We continue to believe though that global growth concerns will
weigh more materially on global oil demand when labor markets
Base metals and gold struggled for momentum in early London
trading, as worries over demand and higher inflation kept prices
"Tepid demand has led to a significant increase in exchange
inventories, " ING said.
"LME copper inventories increased to a fresh one-year high of
164,000 tons with inflows of around 110,000 tons since mid-July,"
it said, noting that net longs for copper in London have fallen to
a three-month low amid weak demand in China.
Read Interest Rates Remaining High Likely to Keep Pressure on
TODAY'S TOP HEADLINES
TikTok Employees Say Executive Moves to U.S. Show China Parent's
TikTok has spent the past three years trying to convince U.S.
lawmakers it can operate independently in this country from its
China-based parent company, ByteDance. After recent personnel
moves, some employees aren't so sure.
Since the start of the year, a string of high-level executives
have transferred from ByteDance to TikTok, taking on some of the
top jobs in the popular video-sharing app's moneymaking operations.
Some moved to the U.S. from ByteDance's Beijing headquarters.
Hollywood's Writers Emerge From Strike as Winners-for Now
Hollywood writers are able to return to work Wednesday after a
five-month strike, having secured major wins in the form of
staffing guarantees, increased pay and the potential for more
upside when streaming shows hit big.
Now comes the test of whether those hard-fought victories
actually translate into fatter paychecks and more job opportunities
across the union's membership base.
China Has Second Thoughts About Controlling Prices in Its Multi
Trillion-Dollar Housing Market
HONG KONG-China's gigantic real estate bubble has popped, but
despite the market's prolonged downturn, prices still haven't
In part, that is because of price controls which many Chinese
cities imposed on housing over the past two years to keep values
stable. Now China is starting to loosen the rules-with
Senators Unveil Bipartisan Funding Deal to Avert Government
WASHINGTON-The Senate moved ahead Tuesday with its own approach
to averting a partial government shutdown, advancing legislation
that would extend funding through Nov. 17 while also providing
about $6 billion apiece for Ukraine and for disaster relief.
The Senate proposal-the only bipartisan approach currently being
pursued by congressional leaders-sets up a showdown with House
Speaker Kevin McCarthy. The California Republican wants to extend
government funding but on the condition that Congress also enact
strict border-security measures and exclude any new support for
Kyiv to keep his conference united.
New York Judge Rules Trump Committed Fraud in Valuing Assets
A New York judge on Tuesday found that Donald Trump and his
family business committed fraud by making false and misleading
valuations on much of his real-estate empire and ordered the
cancellation of legal certificates that have allowed the Trumps to
do business in the state.
The ruling handed a significant early victory to state Attorney
General Letitia James, a Democrat, on part of her civil-fraud case
against Trump, which is set to go to trial next week. She sued the
former president last year and has accused Trump in court filings
of inflating his annual net worth by as much as $3.6 billion
between 2011 and 2021 by falsely valuing his properties.
What to Watch in the Second Republican Presidential Debate
Republican presidential candidates are running out of time-and
big stages-to take down former President Donald Trump.
They get another chance to make an impression Wednesday night
during the second debate for the 2024 GOP field at the Ronald
Reagan Presidential Library in California, a forum the front-runner
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TODAY IN CANADA
AGF Mgmt 3Q
H2O Innovation 4Q
Sangoma Tech 4Q
Economic Calendar (ET):
Nothing major scheduled
Stocks to Watch:
Guardian Capital's Guardian Smart Infrastructure Management
Announces First Direct Infrastructure Investment; Joint Venture of
Guardian Smart Infrastructure and Rieber & Son to Buy Rieber's
62.8% Stake in Q-Free ASA, Followed by Offer for Remaining Q-Free
Shares; Funding for Initial Investment and Proposed Follow-On
Investments Was Provided by Guardian and GSIM Management Team for
Total Initial Commitment of $100M
Expected Major Events for Wednesday
05:00/JPN: Jul Indexes of Business Conditions - Revision
06:00/JPN: Aug Revised Machine Tool Orders
06:00/GER: Oct GfK consumer climate survey
06:45/FRA: Sep Consumer confidence survey
08:30/UK: Aug Capital issuance statistics
11:00/US: 09/22 MBA Weekly Mortgage Applications Survey
12:30/US: Aug Advance Report on Durable Goods
12:30/US: 2Q U.S. International Investment Position
14:00/US: Aug Metropolitan Area Employment and Unemployment
14:30/US: 09/22 EIA Weekly Petroleum Status Report
17:59/UK: REC JobsOutlook survey
23:01/UK: Sep CBI Growth Indicator and Service Sector Survey
23:01/UK: Aug Zoopla House Price Index
23:01/UK: Aug UK monthly automotive manufacturing figures
23:50/JPN: Sep Provisional Trade Statistics for 1st 10 days of
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Wednesday
AGF Management Ltd - Class B (AGF.B.T) is expected to report
$0.31 for 3Q.
AppHarvest Inc (APPHQ) is expected to report for 2Q.
Astrotech (ASTC) is expected to report for 4Q.
Aytu BioPharma Inc (AYTU) is expected to report for 4Q.
Bed Bath & Beyond Inc (BBBYQ) is expected to report $0.01
Concentrix Corp (CNXC) is expected to report for 3Q.
Duckhorn Portfolio Inc (NAPA) is expected to report for 4Q.
Espey Manufacturing & Electronics Corp (ESP) is expected to
report for 4Q.
H2O Innovation (HEO.T) is expected to report for Full year.
HB Fuller Co (FUL) is expected to report $1.01 for 3Q.
Jefferies Financial Group Inc (JEF) is expected to report $0.33
Micron Technology (MU) is expected to report $-1.32 for 4Q.
Paychex Inc (PAYX) is expected to report $1.12 for 1Q.
Pro-Dex Inc (PDEX) is expected to report for 4Q.
S&W Seed (SANW) is expected to report $-0.09 for 4Q.
US Global Investors (GROW) is expected to report for 4Q.
Uranium Energy Corp (UEC) is expected to report for 4Q.
Waldencast PLC (WALD) is expected to report for 2Q.
Worthington Industries (WOR) is expected to report $0.88 for
bebe stores (BEBE) is expected to report for 4Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
Carlisle Cos Cut to Hold From Buy by Jefferies
Cleveland-Cliffs Raised to Buy From Neutral by Citigroup
Comerica Cut to Hold From Buy by Odeon Capital
DraftKings Raised to Overweight From Neutral by JP Morgan
Edwards Lifesciences Raised to Outperform From Perform by
Flowserve Raised to Buy From Hold by Jefferies
Frequency Therapeutics Cut to Neutral From Outperform by
Hudson Pacific Properties Raised to Buy From Neutral by BTIG
Nordson Cut to Hold From Buy by Jefferies
Olin Corp Cut to Equal-Weight From Overweight by Wells Fargo
Opendoor Technologies Raised to Hold From Underperform by Gordon
PNM Resources Raised to Buy From Neutral by Mizuho
Redfin Raised to Hold From Underperform by Gordon Haskett
SiteOne Landscape Supply Raised to Buy From Neutral by UBS
Steel Dynamics Raised to Buy From Neutral by Citigroup
Teradyne Raised to Outperform From Market Perform by Northland
W. P. Carey Cut to Market Perform From Outperform by BMO
Wingstop Raised to Buy From Hold by Stifel
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
September 27, 2023 06:19 ET (10:19 GMT)
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