Asian markets finished mostly higher following Thursday’s move in the US. The Nikkei added 35bps on light volume as financials and industrials led gains. China underperformed again, finishing 1.34% lower, while Hong Kong closed up 40bps bolstered in part by a 3% jump by Tencent Holdings. Australia gained 20bps, while the Kospi finished 28bps higher and the Taiex added 7bps. The RBA reiterated that rates are likely to hold steady at least in the near term.
European markets opened marginally higher this morning before swiftly moving into negative territory. Italy leads the way lower, down 1.11%, while the UK is off 13bps and Germany is down 27bps. In economic news, the final reading of Eurozone July CPI was in line with estimates, and Austria July HCPI was also in line.
US equity futures are ~15bps lower with a Turkish court set to rule tomorrow on the release of the detained US pastor, which, if denied, would lead to further sanctions from the Trump Administration. In other news, the President has asked the SEC to review whether to replace quarterly corporate earnings reports with semi-annual releases. Economic data today is light with LEI and University of Michigan data at 10am. Crude futures are ~70bps higher ahead of weekly rig data at 1pm. OPEC+ announced it will delay the review of quota implementation by one week to August 27. In M&A news, CAVA Group will buy Zoe's (ZOES) for $12.75/sh in cash. In an article in O Globo, it was reported without citing sources that Tyson (TSN) may buy Marfrig’s (MRFG3 BZ) Keystone brand for $2.5bn. In other news, Tesla (TSLA) is offered lower this morning after an interview with the NYT drew more attention to Musk’s go-private tweets and the condition in which he decided to make the statements, citing multiple tearful moments by Musk who said no one reviewed the tweets before he sent them. The NYT also reported that Tesla (TSLA) may be searching for a COO to provide Musk with relief. The WSJ reported that Google (GOOGL) said it is not close to launching the Chinese search engine that made headlines in recent days. Dutch shipping giant, Maersk (MAERSKB DC) announced plans to spin-off its drilling unit into a separately-listed company on the Nasdaq Copenhagen as the company continues to shift its focus to its core transportation business. After the close Thursday, Antares Pharma (ATRS) and Teva (TEVA) announced FDA approval for their generic EpiPen. Bristol-Meyers’ (BMY) Opdivo was approved by the FDA for small cell lung cancer treatment. Regeneron (REGN) received FDA approval for its age-related macular degeneration treatment. A US District Court ruled that the State Department must conduct another environmental review of the XL pipeline (TRP CN, TRP US), possibly further delaying construction. Trans Mountain, which was bought from Kinder by the Canadian government, said that workers are on site preparing to clear a path for the arrival of construction crews in 2019. Apple (AAPL) will begin selling 13in MacBooks in September according to the Digitimes with an expected price of $1,200.
Earnings: This morning, Deere (DE) beat EPS estimates and reported better Q3 sales guidance. Thursday after the close Nordstrom (JWN) beat estimates and Nvidia (NVDA) and Applied Materials (AMAT) both missed guidance expectations.
Analyst Actions: Fluor (FLR) raised to buy at Canaccord, Viper Energy (VNOM) raised to buy at Stifel, Esperion (ESPR) raised to buy at Citi
| •|| ILMN - Illumina prices $650M offering of 0.0% convertible notes due 2023. The initial conversion price is $457.77/share.|
| •|| KRYS - Krystal Biotech announce 625K share private placement at $16/share to Frazier Healthcare Partners through Chardan|
| •|| AVEO - Aveo Pharmaceuticals intends to offer common stock in an underwritten public offering through Piper Jaffray pursuant to its $200mm mixed shelf registration|
| •|| AMRS - Amyris announces up to 7.4M-share secondary (for holders) through B. Riley FBR|