US Index Futures are down in premarket trading on Tuesday, reflecting data on German inflation, the Chinese trade balance and awaiting corporate earnings.

By 07:22 AM, Dow Jones futures (DOWI:DJI) were down 234 points, or 0.66%. S&P 500 futures were down 0.71%, while Nasdaq-100 futures were down 0.77%. The 10-year Treasury yield was at 3.99%.

In Germany, inflation, measured by the consumer price index, increased by 6.2% on a monthly basis, in line with the consensus. A survey by the European Central Bank (ECB) shows that consumer expectations for inflation in the euro zone dropped in June, both for the next 12 months and for the next three years, changing from 3.9% to 3.4%, and from 2.5% to 2.3%, respectively.

In Asia, markets closed without a single direction, reverberating weaker data from the Chinese trade balance. In July, exports fell 14.5% in the annual comparison, worse than the projection, which expected a drop of 12.8%, while imports had a reduction of 12.4% in the period, far surpassing the low consensus of 5.1%.

The weak numbers confirm the difficulty that the world’s second largest economy has had to expand business, amid difficulties around the globe, which suffers from inflation and high interest rates.

In addition, the PBoC, the Chinese central bank, injected 6 billion yuan into the economy, and even increased the dollar parity rate by 15 points, to 7.1365%. All efforts aimed at heating up economic activity. With that, the “onshore yuan” dropped 160 basis points against the dollar, registering the biggest devaluation since the 20th of July, according to local agencies.

On Tuesday’s economic agenda, investors will follow, at 8:30 am, the release of the trade balance for June, in which the consensus expects a deficit of US$ 65 billion, while at 10:00 am it will be the turn of wholesale stocks for June, which is forecast for a drop of 0.30%.

Investors will follow speeches by two members of the Federal Reserve: Patrick Harker of the Philadelphia Borough at 8:15 am and Thomas Barkin of Richmond at 8:30 am.

At 1 pm, the government holds the three-year Treasury auction. At 4:30 pm, last week’s API oil inventories will be released.

In commodities markets, West Texas Intermediate crude for September was down 1.61% to settle at $80.61 a barrel. Brent crude for October was down 1.63% near $83.95 a barrel. Iron ore futures traded in Dalian, China fell 0.28%, at US$ 99.10 per tonne, continuing the movement of recent days.

On Monday, US stock markets rallied on expectations that Friday’s jobs report will lead to an end to US rate hikes. During yesterday, there were not many factors influencing the direction of the market. Despite that, the S&P 500 rose 0.90% and managed to break a four-day losing streak, but the Nasdaq 100 fared weaker, up 0.61%. The Dow gained 407.51 points or 1.16%, the best return in about seven weeks.

Michelle Bowman, Governor of the Federal Reserve, hinted yesterday at the possibility of further hikes in interest rates. Meanwhile, John Williams, president of the Federal Reserve Bank of New York, stressed the importance of keeping monetary policy tight for some time to come, although he acknowledged the chance of rate cuts next year if inflation eases.

Ahead of Tuesday’s corporate results, traders are awaiting reports from United Parcel Services (NYSE:UPS), Eli Lilly (NYSE:LLY), DataDog (NASDAQ:DDOG), Capri Holdings (NYSE:CPRI), AMC Entertainment (NYSE:AMC), ahead of market opening. Following the market’s closure, reports are expected from Rivian (NASDAQ:RIVN), Upstart (NASDAQ:UPST), Twilio (NYSE:TWLO), among others.

Wall Street Corporate Highlights for Today

Amazon (NASDAQ:AMZN) – Amazon is scheduled to launch the first internet satellites under the Kuiper program later next month, using the United Launch Alliance (ULA) joint venture Atlas V rocket, after changing plans to avoid delays. The launch is scheduled for September 26th. Initially planned for ULA’s Vulcan rocket, delays led Amazon to opt for the Atlas V. The company invested $10 billion in the satellite internet project, aimed at competing with SpaceX and its Starlink program.

Meta Platforms (NASDAQ:META) – Meta is seeking to lift a fine imposed by Norway’s data regulator due to privacy violations committed by the owner of Facebook and Instagram. The $97,700 daily fine effective Aug. 14 has broader European implications. Meta is seeking an injunction against the fine, with a hearing scheduled for August 22. The Norwegian data regulator claims that Meta cannot collect user data in Norway for targeted advertising. The fine can be made permanent and extended to the whole of Europe.

Tesla (NASDAQ:TSLA) – Tesla Chief Financial Officer Zachary Kirkhorn has resigned, surprising analysts who considered him a possible successor to CEO Elon Musk. The company did not give reasons for the departure. Vaibhav Taneja, 45, took office. Kirkhorn, a 13-year Tesla veteran, was known for his communication skills and balance between Musk and was visible on calls with analysts.

Lucid (NASDAQ:LCID) – Luxury electric vehicle maker Lucid has maintained its annual production target, confirming SUV production for next year. While it reported second-quarter earnings and earnings below estimates, strong liquidity from a $3 billion equity offering put it ahead of supply-challenged rivals. The company lowered prices to increase demand and face competition from Tesla.

Moody’s (NYSE:MCO) – Moody’s cut U.S. bank ratings, warning of weak funding risks. Ten banks had ratings downgraded, six big ones under review for downgrade. Profit pressures have increased, especially on home loans. Agency changed perspective of eleven creditors to negative.

UBS (NYSE:UBS) – UBS unveiled a revamp of its investment banking division, selecting heads of mergers and acquisitions and restructuring the unit to compete with Wall Street. The company seeks to hire and promote talent, but it also plans hundreds of exits. The transformation includes the appointment of leaders such as global co-heads of coverage, chiefs of staff and global co-heads of mergers and acquisitions, notably members of Credit Suisse.

Goldman Sachs (NYSE:GS) – Jeff Currie, Global Head of Commodity Research at Goldman Sachs and a renowned analyst who accurately predicted the rise in commodity prices in the 2000s, is retiring after 27 years with the firm. His influence was significant, coining terms such as “Revenge of the Old Economy” to describe the commodity supercycle. Responsibilities will be taken over by Daan Struyven, Sam Dart and Nick Snowdon. Currie’s departure is the latest in a string of notable departures from Goldman Sachs in recent months.

Wells Fargo (NYSE:WFC) – Wells Fargo announced that Malcolm Price has joined its corporate and investment bank (CIB) as head of financial sponsors, following 35 years at Credit Suisse. Price played a significant role in developing the financial sponsor hedging business at Credit Suisse and has led other sectors.

LPL Financial Holdings (NASDAQ:LPLA) – LPL will add direct indexing capabilities, allowing financial advisors to customize stock indexes for clients. This approach seeks to optimize tax and ESG issues, benefiting investors with large positions. LPL is the largest independent brokerage in the US, with 22,000 advisors and $1.24 trillion in assets.

PayPal (NASDAQ:PYPL) – PayPal launched a dollar stablecoin, becoming a pioneer among financial technology companies in adopting digital currencies for payments and transfers. The announcement reflects confidence in the cryptocurrency industry despite recent regulatory challenges and meltdowns. The stablecoin PYUSD is backed by dollars and US Treasuries, issued by Paxos Trust Co., and will be gradually available in the US. Visa also plans to utilize cryptocurrencies for settlements. 

Proterra (NASDAQ:PTRA) – Electric vehicle parts supplier Proterra has filed for Chapter 11 bankruptcy protection due to supply chain constraints, reduced demand and funding shortages. The company intends to operate normally and file bankruptcy motions to fund its operations.

Yellow Corp (NASDAQ:YELL) – Trucking company Yellow Corp declared Chapter 11 bankruptcy, sending nearly 30,000 workers seeking employment. The company blames the International Brotherhood of Teamsters union for the situation, while analysts point to debt and low shipping rates as factors. The US government could face losses after bailing out the company in 2020.

Snap Inc (NYSE:SNAP) – The UK data regulator is investigating Snapchat to assess whether the platform is removing underage users. Snap was reported to have removed few children under the age of 13 from the platform in the UK, despite Ofcom’s estimates of thousands of underage users. The ICO collects information prior to an official investigation. Snap is under pressure after reports of indecent distribution of children’s images. The decision to formally investigate will be taken in the coming months.

Adobe (NASDAQ:ADBE) – Adobe’s $20 billion bid for cloud design platform Figma has raised antitrust concerns in the EU. The European Commission is investigating the deal due to concerns about reduced competition in interactive design markets. The acquisition could allow Adobe to restrict competition and affect Figma’s growth. The decision will be taken by December 14th.

Black Knight (NYSE:BKI),  Intercontinental Exchange (NYSE:ICE) – The United States Federal Trade Commission (FTC) has expressed its desire to drop the lawsuit against the $11.7 billion acquisition of data provider Black Knight by the Intercontinental Exchange (ICE ), which owns the NYSE. The companies are seeking an agreement to finalize the deal, and the case was scheduled for trial. The FTC originally expressed concerns about the concentration of market power. Black Knight has already agreed to sell its Optimal Blue business to address the concerns. The parties involved are seeking an agreement by August 25.

Sage Therapeutics (NASDAQ:SAGE) – Shares in Sage Therapeutics hit an all-time low on Monday after the US FDA approved the company’s Biogen-partnered pill (NASDAQ:BIIB) for postpartum depression, but the rejection as treatment for major depressive disorder raises uncertainties about business growth. Analysts point out that the market for major depressive disorder is considerably larger than that for postpartum depression. Biogen may terminate the development agreement with Sage to minimize losses. Sage is also considering job cuts following the FDA decision.

Novo Nordisk (NYSE:NVO) – Shares in Novo Nordisk rose in premarket trading on Tuesday after the company announced that its semaglutide obesity treatment, marketed as Wegovy, had achieved its primary goal in a study measuring the reduction of cardiovascular events. The 2.4 mg dose of semaglutide reduced the risk of adverse cardiovascular events by 20% in overweight or obese adults in the study called Select. Novo Nordisk will seek regulatory approval for label indication expansion in the US and EU in 2023.

Eli Lilly (NYSE:LLY) – Drugmaker Eli Lilly is about to report its second-quarter results, boosting its stock which is up about 50% in 12 months and 24% this year. Expectations are focused on the type 2 diabetes treatment, Mounjaro, which may receive approval to treat obesity. Other obesity drugs under development also draw optimism from analysts. Donanemab, a therapy for Alzheimer’s disease, is another point of interest following the approval of Biogen’s Leqembi.

Petrobras (NYSE:PBR) – Petrobras is considering an increase of up to 10% in investments for its next five-year business plan over the previous one, bringing capital expenditure to around US$86 billion, said the chief financial officer Sergio Caetano Leite in an interview on Monday. The 2024-2028 plan under discussion would include inflation adjustments of around US$4 billion and up to US$4 billion for new projects, with a focus on low-carbon initiatives. The company is pursuing a green transition under the leadership of President Luiz Inacio Lula da Silva.

Embraer (NYSE:ERJ) – Embraer maintained a two-year backlog for executive jets, driven by the continued increase in demand during the pandemic. The aircraft manufacturer expects to deliver up to 130 private jets in 2023. The company is meeting growing demand, particularly from customers looking to purchase their own aircraft. Executive aviation accounted for 28.5% of Embraer’s revenue in 2020, around 27% currently, while commercial aviation is also recovering.

Alibaba (NYSE:BABA) – Shares of Alibaba fell in premarket trade on unfavorable trade data from China, signaling a broader economic slowdown. The worse-than-expected drop in exports and imports reflects low demand for Chinese products and worries investors about government stimulus.

MercadoLibre (NASDAQ:MELI) – MercadoLibre reached five million customers in its insurance segment in less than four years, driven by investments in technology and a focus on low- and middle-income users. The offer of insurance through the marketplace and Mercado Pago allows for greater access, filling a gap in the region where Latin Americans have limited access to insurance products. With investment plans in logistics, technology and fintech, the company is expanding its financial and e-commerce ecosystem. In the second quarter, it recorded a 113% increase in net income.

Dish Network  (NASDAQ:DISH),  EchoStar Corp (NASDAQ:SATS) – Billionaire Charlie Ergen is considering a possible merger between his telecommunications companies, according to the Wall Street Journal. A deal could be announced soon. Dish is valued at around $4 billion, while EchoStar has a market cap of approximately $1.6 billion. The combination of companies would give Ergen the financial flexibility to compete in the national wireless networking market. EchoStar was spun off from Dish in 2008. Dish stock hit its lowest since 1999, while EchoStar rose 41% for the year.

Earnings

UPS (NYSE:UPS) – Shares in United Parcel Service fell to a six-week low after the announcement of lower-than-expected second-quarter revenue, leading to a cut in the full-year outlook. Net income fell to $2.08 billion, while revenue declined 10.9%, hit by labor negotiations. The company has adjusted its revenue outlook to around $93 billion for 2023, citing the impact of labor negotiations and costs associated with an interim deal. UPS confirmed its plans for capital expenditures, dividend payments and share repurchases.

Li Auto  (NASDAQ:LI) – Li Auto beat profit expectations on Tuesday, but its shares, owned by the Chinese electric vehicle company, fell about 2% in premarket trading. The company posted net income of $318.6 million. Revenue also beat estimates. The company delivered 86,533 vehicles in the quarter, an increase of more than 200% over the previous year.

AMC Entertainment (NYSE:AMC) – Shares of AMC rose in premarket trade on Tuesday after the theater operator reported second-quarter results that beat expectations. With a 12% increase in attendance and higher spend per guest, the company posted a net profit of $8.6 million, compared to a loss of $121.6 million a year earlier. Revenue grew 15.6% to $1.35 billion, driven by increases in attendance, average ticket and food and beverage revenue per customer.

Paramount Global (NASDAQ:PARA) – Despite lower subscriber growth, Paramount Global has seen its post-earning reaction in equities take a positive turn. The addition of just 700,000 subscribers in the second quarter, compared with 4.1 million previously, did not prevent a 3.2% increase in premarket shares. The boost came from a deal to sell its publishing business and 47% growth in streaming subscription revenue, putting pressure on Disney to deliver similar results in its streaming strategy.

RingCentral  (NYSE:RNG) – Shares of RingCentral were down 12.4% in premarket Tuesday after the announcement that founder Vlad Shmunis will step down as CEO and become executive chairman. Tarek Robbiati, former CFO of Hewlett Packard Enterprise, has been named as the new CEO. The company also released its quarterly results, with revenue and earnings above expectations, reiterating the full-year revenue outlook but adjusting the earnings forecast due to interest expense.

Chegg (NYSE:CHGG) – Shares in Chegg were up 21.2% in premarket Tuesday as the online learning software provider reported better-than-expected second-quarter financial results and delivered a new AI-based strategy. For the quarter, revenue reached $182.9 million, beating forecasts. The company is focused on its generative AI experience, seeking improvements in personalized learning for students. CEO Dan Rosensweig highlighted the positive reception of the beta version of the AI ​​experience and the launch of the full version is planned for the fall.

BioNTech (NASDAQ:BNTX) – Like its competitors, BioNTech is also facing the “Covid vaccine curse”, with revenue falling to €168m, far below estimates of €692m. The company reported a loss of €0.79 per share, blaming Pfizer’s reduced profit-sharing. Shares fell 1.2% premarket, exemplifying challenges for vaccine companies. The analysis suggests that uncertainty will persist until these companies diversify beyond vaccines.

International Flavors & Fragrances (NYSE:IFF) – International Flavors & Fragrances fell about 22% in premarket Tuesday, due to nearly doubled high inventory costs and a reduction in forecast sales for the year. The company reported net income of US$ 27 million in the second quarter, against US$ 107 million in the same period of the previous year. Sales of food products and health and life sciences also fell.

Tyson Foods  (NYSE:TSN) – Tyson Foods missed Wall Street’s Q3 expectations due to lower chicken and pork prices and slowing demand for beef. The company also announced the closure of four more chicken plants in the US to reduce costs. Tyson faces market and macroeconomic challenges across different protein segments. Quarterly revenue fell 3% to $13.14 billion, below analyst expectations.

Palantir Technologies  (NYSE:PLTR) – Palantir Technologies slightly raised its full-year revenue forecast, planning to buy back up to $1 billion in shares, driven by growing demand for its artificial intelligence platform. CEO Alexander Karp highlighted the acceptance of the platform in more than 100 organizations, including healthcare and automotive, with ongoing negotiations with more than 300 companies. Second-quarter revenue reached $533.3 million, with government and commercial revenue growing 15% and 10%, respectively.

InterContinental Hotels Group  (NYSE:IHG) – IHG, owner of Holiday Inn, anticipates positive room revenue growth across regions in the second half of 2023 despite macroeconomic pressures. Global revenue per available room increased 17% in Q2, driven by higher rates and recovery in China. The group also increased dividends by 10% following a 27% increase in operating profit.

Beyond Meat  (NASDAQ:BYND) – Beyond Meat revised down its full-year revenue forecast and missed second-quarter net sales estimates due to slowing demand for meat products. Concerns about inflation and ambiguity about the health benefits of plant-based meats weigh on growth. The company has been implementing price cuts and now forecast revenue of between $360 million and $380 million for 2023. Quarterly net income was down nearly 31%, but cutting costs helped minimize losses.

KKR & Co  (NYSE:KKR) – KKR & Co reported a 23% decline in its second-quarter after-tax distributable earnings compared to a year earlier, attributed to a slowdown in asset sales, although after-tax distributable earnings per share have beaten analysts’ estimates. Its net income from asset disposals fell nearly 80%, reflecting restrictions on merger and acquisition activity due to higher interest rates, inflation and volatility. Fees generated from management and transactions increased by 31%, while KKR recorded a 5% increase in its private equity portfolio. Its assets under management increased to $519 billion.

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