Producer Price Index for July; Weekly Jobless Claims
Stock futures rose on Thursday, potentally pushing the major
indexes to their highest in three months, as hopes that inflation
may have peaked continued to power the risk asset rally.
Hopes that the pace of price rises has hit a peak encouraged
investors to believe the Federal Reserve can be less aggressive in
hiking borrowing costs and that consumer confidence can
"The softer than expected inflation reading pushed the market
odds narrowly back in favor of a +50 basis point Fed hike in
September...and delivered a significant boost to long-duration
assets," said Ian Williams, economics and strategy research analyst
at Peel Hunt.
Alex Pelle, U.S. economist at Mizuho, said in a note to clients:
"We do have some very preliminary evidence that inflation may be
taking a step down from an underlying pace around 8% to the
something closer to the 5% level. This is a level that will still
keep the Fed hiking, but the July round of data--taken as
given--gives the bulls an early win."
Fed officials, however, were quick to note that inflation
remains "unacceptably high." Chicago Fed President Charles Evans
said he expects the central bank "will be increasing rates the rest
of this year and into next year to make sure inflation gets back to
our 2% objective."
Jeffrey Roach, chief economist at LPL Financial said the Fed
"still has a lot of work to in tightening financial conditions,"
and that inflation "is clearly still the primary concern for policy
But Roach said that as inflation slows the Fed could revert to
raising rates by 0.5 a percentage point at its next meeting in
September. Ahead of the inflation print on Wednesday, Fed watchers
were forecasting the central bank would raise rates for the third
straight time by 0.75 a percentage point.
"Traders are growing confident that if the next inflation report
on Sep. 13 confirms this softening pricing pressure trend, the Fed
may seriously consider a smaller pace of tightening," said Edward
Moya, senior market analyst at Oanda.
"It is too early to say that the Fed will only raise rates by a
half-point in September, but if inflation keeps on cooling sharply
the Fed's dovish tendencies will return."
The dollar continued to lose ground in Europe after it slumped
on Wednesday, with the ICE Dollar Index down by the most since June
and earlier in the day had traded at its lowest levels since March
Evidence that price pressures might have peaked could convince
the Fed to deliver smaller interest-rate rises, said Ebury.
"At the time of writing, markets are now pricing in not much
more than a one-in-three chance of a 75 basis point rate increase
at the Fed's September meeting, down from almost 70% prior the
Bond yields barely moved in Europe, after they fell on Wednesday
as investors increased their bets on a less hawkish Fed next month,
reducing the inverted spread to its lowest point in five days.
But some pundits warned it is too early to call victory over
inflation. Amherst Pierpont said that CPI analysis by the Cleveland
and the Atlanta Fed show inflation's underlying trend well above
target. PPI due later Thursday is forecast to slow down, and
jobless claims are expected to be slightly higher.
Asset manager Louis Navellier said that concerns for an even
more hawkish Fed are easing, which is "best reflected by the shift
in expectations for the next Fed increase in September from 75bps
to 50bps, with 50bps now considered a 2/3 likelihood from 1/3
before the CPI numbers."
Oil prices turned higher after the IEA said that demand would be
stronger than expected due to increased power generation.
The agency said heatwaves were driving more demand for
electricity to power fans and air conditioning units. With natural
gas prices so high and supplies scarce, power plants--particularly
in Europe--were switching to oil as an alternative fuel source.
The IEA raised its demand forecasts for 2022 by 500,000 barrels
Read: European Heatwaves Boost Demand for Oil, IEA Says
Read: European Natural Gas Prices Rise as Rhine River Levels
Pose Fresh Bottleneck
Base metals were higher in Europe while gold dipped, with
investors more confident about the global economy following the
latest U.S. inflation data.
"Investors are gaining confidence that the Fed finally has
inflation under control," Peak Trading Research said, adding that
risk assets like commodities were now more appealing.
TODAY'S TOP HEADLINES
Sonos Loses Its CFO as the Speaker Maker Faces Economic
Sonos Inc. is losing its chief financial officer as the company
faces economic challenges and has cut its outlook for the fiscal
The Santa Barbara, Calif.-based maker of smart speakers said
Wednesday that Brittany Bagley will resign effective Sept. 1 after
more than three years as CFO. Chief Legal Officer Eddie Lazarus
will serve as interim finance chief.
Disney Barely Hedges Its Streaming Bet
Disney sure isn't playing it safe with streaming.
The entertainment giant's fiscal third-quarter results late
Wednesday were largely a hit. Revenue and operating income
surpassed Wall Street's expectations, thanks mostly to strength in
its domestic theme parks, where operating profits are now exceeding
prepandemic levels. The company's cable TV and broadcast business
held steady, and it managed to add 14.4 million net new subscribers
to its Disney+ streaming service-well over the 10 million additions
expected by analysts and the best growth the service has seen in
six quarters. Disney's share price jumped nearly 7% following the
Walgreens Helped Fuel San Francisco Opioid Epidemic, Judge
A federal judge found Walgreen Co. helped exacerbate the opioid
epidemic in San Francisco, the latest decision in opioid-related
lawsuits aimed at pharmacy chains around the U.S.
Walgreens, the largest retail pharmacy in San Francisco, for
more than a decade failed to adequately halt suspicious orders of
opioids that could be used illegally, U.S. District Judge Charles
R. Breyer said in an opinion issued Wednesday. He found the company
liable "for substantially contributing to the public nuisance," the
opioid epidemic, in San Francisco, he wrote.
Bumble Sales Rise On Higher User Spending
Bumble Inc. sales climbed in the latest quarter, driven by
higher spending by users on its dating apps as prepandemic
conditions have largely returned.
But the online dating company trimmed its 2022 revenue range to
$920 million to $930 million, down from its prior forecast of $934
million to $944 million, largely due to a higher impact from
foreign currency movements. Its outlook for sales in the current
quarter also fell short of Wall Street expectations.
Ex-JPMorgan Traders Convicted in Federal Fraud Trial
A federal jury in Chicago convicted two former traders of
JPMorgan Chase & Co.'s precious metals desk who had been
charged with manipulating gold prices, finding they used misleading
orders to rig prices.
The convictions are the capstone of a seven-year Justice
Department campaign to punish a style of deceptive trading in
futures markets known as spoofing. The rapid-fire strategy was
prevalent at some Wall Street banks before Congress outlawed
spoofing in 2010, and persisted even after its prohibition,
according to prosecutors. JPMorgan paid $920 million in 2020 to
settle regulatory and criminal charges against the bank over the
Siemens Swung to Loss in 3Q on Impairment Charge; Cut EPS Target
for FY 2022
Siemens AG cut the outlook for earnings per share for the full
fiscal year after it swung to a loss in its third quarter due to an
impairment on its investment in Siemens Energy AG.
The German industrial conglomerate said Thursday that its net
loss was 1.66 billion euros ($1.71 billion) for the period ended
June 30, compared with a profit of EUR1.35 billion a year earlier.
Analysts had forecast a loss of EUR532 million, according to
consensus estimates provided by Siemens.
Daimler Truck 2Q Profit, Revenue Rose
Daimler Truck Holding AG on Thursday posted an increase in sales
and net profit in the second quarter and confirmed its previously
given full-year revenue guidance.
The German commercial-vehicles maker said quarterly net profit
was 922 million euros ($949.6 million), compared with EUR601
million a year earlier.
European Heat Waves Boost Demand for Oil, IEA Says
Summer heat waves in Europe and scarce supplies of pricey
natural gas are boosting demand for oil as power stations look for
alternative fuels to meet the surging demand for electricity, the
International Energy Agency said.
Unprecedented temperatures across the continent have put an
unexpected strain on the region's power grids, lifting demand for
electricity to power fans and air-conditioning units in what is
typically a quiet period for energy demand.
Fed Likely to Want Further Evidence of Inflation Slowdown
A slowdown in inflation last month, following recent indications
of a robust labor market, complicates the Federal Reserve's
decision on how much to raise interest rates next month.
Data on inflation and economic activity are likely to guide
whether central bank officials lift their benchmark federal-funds
rate by a half-percentage point or three-quarters of a point at
their Sept. 20-21 policy meeting. They have said they want to see
evidence that price pressures and economic growth are cooling
before they moderate their pace of rate increases.
Federal Trade Commission Expected to Launch Effort to Expand
Online Privacy Protection
WASHINGTON-The Federal Trade Commission is expected to begin
writing federal rules to expand online privacy protections as soon
as Thursday, according to people familiar with the matter.
If adopted, the rules could impose significant new
responsibilities on businesses that handle consumer data, including
potentially barring certain kinds of data collection practices, the
FBI's Trump Search Stirs Talk, Except by Those Who Conducted
The FBI search of former President Donald Trump's Mar-a-Lago
home Monday was unprecedented, prompting days of global news
coverage and commentary on motivations, implications and
Key players no one has heard from: the Justice Department or the
Federal Bureau of Investigation.
Write to firstname.lastname@example.org TODAY IN CANADA
2Q unless stated otherwise
Algonquin Pwr & Utilities
Altus Grp Limited
Brookfield Asst Mgmnt
Canada Goose Hldgs (1Q)
CES Energy Solutions
Computer Modelling (1Q)
Gogold Resources (4Q)
Hut 8 Mining
mdf commerce (1Q)
Silvercorp Metals (1Q)
Tidewtr Midstrm & Infr
WELL Health Tech
Wheaton Precs Mtls
Stocks to Watch:
Africa Oil 2Q EPS 1c; Net $5.65M
AutoCanada 2Q EPS C$1.33; Net C$39.1M; Rev C$1.69M
Badger Infrastructure Solutions 2Q Rev $144.2M; EPS 14C
Enerflex 2Q EPS C$0.15; Net C$13.4M; Rev C$372.1M; Underlying
Driver of Enerflex's Business Is the Demand for Natural Gas, the
Outlook for Which Is Robust; Continued Growth of Liquefied Natural
Gas Exports Off the US Gulf Coast and Need for Reliable Power
Generation in Regions Like Latin Amer and the Middle East Present
Strong Demand Fundamentals
Fortuna Silver Mines 2Q EPS 1c; Net $1.7M; Sales $167.9M;
Inflation Situation Remains Dynamic and Company Expects Higher
Input Costs to Remain for 2H of Yr and Beyond; To Mitigate
Inflationary Pressure on Cost Structure the Co Will Continue to
Focus on Operational Efficiencies and Cost Optimization Across All
Mining Ops; Even With These Efforts It Is Expected the Continued
Cost Pressure Will Push the San Jose and Lindero Mines Toward Upper
End of Our Cost Guidance
Mandalay Resources 2Q Rev $50.1M; EPS 3C
Pan American Silver 2Q Rev $340.47B; Loss/Shr 83c
VIQ Solutions 2Q Loss/Shr 11c; Loss $3.2M; Rev $12.4M
Expected Major Events for Thursday
08:00/FRA: Aug IEA Oil Market Report
08:30/UK: 2Q Mortgage and landlord possession statistics
08:30/UK: 2Q Mortgage Arrears and Possessions data
12:30/US: Jul PPI
12:30/US: 08/06 Unemployment Insurance Weekly Claims Report -
12:30/US: U.S. Weekly Export Sales
13:00/RUS: Weekly International Reserves
14:30/US: 08/05 EIA Weekly Natural Gas Storage Report
16:59/GER: Jun Balance of Payments
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Thursday
Aravive Inc (ARAV) is expected to report $-0.59 for 2Q.
Axcella Health Inc (AXLA) is expected to report for 2Q.
Bellerophon Therapeutics Inc (BLPH) is expected to report for
CI Financial Corp (CIFAF,CIX.T) is expected to report $0.74 for
Cabaletta Bio Inc (CABA) is expected to report for 2Q.
Cardinal Health Inc (CAH) is expected to report $0.77 for
Catalyst Biosciences Inc (CBIO) is expected to report $-0.25 for
Computer Modelling Group Ltd (CMG.T) is expected to report $0.05
CorEnergy Infrastructure Trust Inc (CORR) is expected to report
Dentsply Sirona Inc (XRAY) is expected to report $0.39 for
Evelo Biosciences Inc (EVLO) is expected to report $-0.51 for
Fulcrum Therapeutics Inc (FULC) is expected to report for
Golden Minerals (AUMN,AUMN.T) is expected to report for 2Q.
HLS Therapeutics Inc (HLS.T) is expected to report for 2Q.
Hanesbrands Inc (HBI) is expected to report $0.32 for 2Q.
Hudson Global Inc (HSON) is expected to report for 2Q.
Kala Pharmaceuticals Inc (KALA) is expected to report $-0.39 for
La Jolla Pharmaceutical (LJPC) is expected to report $-1.04 for
Latham Group Inc (SWIM) is expected to report for 2Q.
Liquidia Corp (LQDA) is expected to report $-0.24 for 2Q.
Luna Innovations (LUNA) is expected to report $0.00 for 2Q.
Marinus Pharmaceuticals Inc (MRNS) is expected to report for
Matinas BioPharma Holdings Inc (MTNB) is expected to report
$-0.03 for 2Q.
McEwen Mining (MUX,MUX.T) is expected to report for 2Q.
ModivCare Inc (MODV) is expected to report for 2Q.
Neonode (NEON) is expected to report for 2Q.
ONEX Corp (Canada) (ONEX.T) is expected to report for 2Q.
Oncolytics Biotech Inc (ONC.T,ONCY) is expected to report $-0.11
OptiNose Inc (OPTN) is expected to report $-0.24 for 2Q.
Orgenesis Inc (ORGS) is expected to report $-0.02 for 2Q.
Primo Water Corp (PRMW,PRMW.T) is expected to report for 2Q.
Privia Health Group Inc (PRVA) is expected to report for 2Q.
Quarterhill Inc (QTRH,QTRH.T) is expected to report $-0.01 for
RGC Resources Inc (RGCO) is expected to report $0.48 for 3Q.
ReShape Lifesciences Inc (RSLS) is expected to report for
Rogers Sugar (RSGUF,RSI.T) is expected to report for 3Q.
Six Flags Entertainment Corp (SIX) is expected to report $1.02
Synthetic Biologics Inc (SYN) is expected to report for 2Q.
US Foods Holding Corp (USFD) is expected to report $0.57 for
UroGen Pharma Ltd (URGN) is expected to report $-1.34 for
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ANALYST RATINGS ACTIONS
Allbirds Cut to Equal-Weight From Overweight by Morgan
Allogene Therapeutics Cut to Market Perform From Outperform by
Altice USA Cut to Hold From Buy by HSBC
Amyris Cut to Neutral From Buy by Roth Capital
Berkeley Lights Cut to Neutral From Buy by BTIG
Berkeley Lights Cut to Neutral From Overweight by JP Morgan
Berkeley Lights Cut to Underweight From Equal-Weight by Morgan
BigBear.ai Cut to Perform From Outperform by Oppenheimer
Boxed Cut to Neutral From Buy by Citigroup
Cerence Cut to Hold From Buy by Craig-Hallum
Cerence Cut to Market Perform From Outperform by Raymond
CF Industries Raised to Overweight From Equal-Weight by
ChemoCentryx Cut to Hold From Buy by Stifel
Coinbase Cut to Underperform From Market Perform by Keefe,
Bruyette & Woods
Emcore Cut to Market Perform From Outperform by Northland
Energizer Holdings Cut to Equal-Weight From Overweight by Morgan
Equitrans Midstream Raised to Overweight From Equal-Weight by
iHeartMedia Cut to Neutral From Buy by Goldman Sachs
Invitae Cut to Underweight From Neutral by JP Morgan
LivePerson Cut to Hold From Buy by Loop Capital
Micron Technology Cut to Outperform From Strong Buy by Raymond
Minerva Surgical Cut to Underweight From Overweight by JP
Moody's Cut to Hold From Buy by Deutsche Bank
Okta Cut to Neutral From Buy by DA Davidson
Par Technology Cut to Hold From Buy by Jefferies
Quotient Technology Cut to Hold From Buy by Craig-Hallum
Rackspace Technology Cut to Market Perform From Outperform by
RealReal Cut to Underperform From Buy by B of A Securities
Repay Holdings Cut to Neutral From Buy by Citigroup
Roku Cut to Underperform From Market Perform by
ShotSpotter Raised to Buy From Hold by Lake Street
Singular Genomics Shares Slide as Supply-Chain Woes crimp
Singular Genomics Systems Cut to Neutral From Buy by Goldman
Singular Genomics Systems Cut to Underperform From Buy by B of A
Take-Two Interactive Cut to Hold From Buy by DZ Bank
TaskUs Cut to Neutral From Buy by Goldman Sachs
UWM Holdings Cut to Underperform From Neutral by Credit
V2X Raised to Buy From Hold by Stifel
Vertex Energy Cut to Perform From Outperform by Oppenheimer
WM Technology Cut to Hold From Buy by Stifel
WM Technology Cut to Neutral From Buy by BTIG
WM Technology Cut to Neutral From Overweight by Piper
Workhorse Group Cut to Neutral From Buy by Roth Capital
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
August 11, 2022 05:32 ET (09:32 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.