Newsquawk Daily European Equity Opening News

2nd August 2024

ASIA

APAC stocks suffered firm losses following the bloodbath and flight-to-quality stateside which was triggered by weak ISM Manufacturing data, while geopolitical concerns and mixed earnings added to the downbeat sentiment. ASX 200 declined amid the broad weakness and with firm losses seen across all sectors. Nikkei 225 fell beneath 37,000 for the first time since April, while the Topix index followed the benchmark into correction territory. Hang Seng and Shanghai Comp. were pressured which saw the former give up the 17,000 status and the mainland index also retreated, while there were bearish comments on trade from a Mofcom official who stressed the seriousness of difficulties and challenges in foreign trade.

SK Hynix (000660 KS) - Co. pressured in excess of 10% in APAC trade as chip stocks continue to sell off.

EUROPEAN CLOSES

CLOSES: DAX: -2.30% at 18,083, FTSE 100: -1.01% at 8,283, CAC 40: -2.14% at 7,370, Euro Stoxx 50: -2.30% at 4,761, AEX: -1.46% at 907, IBEX 35: -1.90% at 10,854, FTSE MIB: -2.68% at 32,857, SMI: +0.29% at 12,317, PSI: -0.70% at 6,662.

SECTORS: Healthcare 0.56%, Consumer Stpl -0.04%, Telecoms -0.46%, Utilities -0.80%, Energy -1.00%, Materials -1.17%, IT -1.95%, Industrials -2.33%, Financials -2.86%, Consumer Disc -3.00%

FTSE 100

GSK (GSK LN) - US FDA has expanded the use of D-1-blocking antibody therapy, dostarlimab (Jemperli), for a broader group of patients with endometrial cancer. (Newswires)

Glencore (GLEN LN) - European Commission has cleared the deal between Bunge (BG) and Viterra. (Newswires) Viterra is backed by Glencore

IAG (IAG LN) - CEO says we remain committed to the strategy, incl. competing effectively from Madrid and developing in the market there. Acquisition of Air Europa does not make sense to shareholders. (Newswires)

OTHER UK COMPANIES

Ocado (OCDO LN) - Successful prices GBP 450mln senior unsecured notes. (Newswires)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Axa (CS FP) - H1 (EUR): GWP/Other Revenue 59.8bln (prev. 55.7bln), Underlying Earnings 4.2bln (prev. 4.1bln), Net 4bln (prev. 3.8bln). Acquires Nobis for 423mln. CEO: H1 result “gives us confidence in achieving an underlying earnings per share growth by year-end that will be in line with the 6% to 8% plan target”. (Axa)

BNP Paribas (BNP FP) - Co. is in exclusive talks with Axa (CS FP) to purchase its asset management arm for EUR 5.1bln. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Bpost (BPOST BB) - Q2 (EUR): adj. EBIT 58mln (exp. 61mln), Operating Income 988mln. FY24 EBIT guidance is a reiteration of the early-July communication. (Newswires)

Fincantieri (FCT IM) - Appoints Biagio Mazzotta as Chairman. (Newswires)

Pirelli (PIRC IM) - Q2 (EUR): Revenue 1.75bln (exp. 1.73bln), Net 130mln (exp. 127mln), adj. EBIT 276mln (exp. 271mln). Confirms guidance provided in March. (Newswires)

Reply (REY IM) - H1 (EUR): EBITDA 180mln (prev. 154mln), EBIT 146mln (prev. 123mln), PBT 146mln (prev. 113mln), Turnover 1.13bln (prev. 1.04bln). (Reply)

Salvatore Ferragamo (SFER IM) - Q2 (EUR): Revenue 296bln (exp. 247mln). H1: Net 5.7mln, Revenue 523mln, EBITDA 117mln. (Newswires)

Stellantis (STLAM IM/STALP FP) - Co. held 28% of the Italian market share in July. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Sandvik (SAND SS) upgraded to Overweight from Underweight at Barclays

US

CLOSES: SPX -1.4% at 5,447, NDX -2.4% at 18,890, DJIA -1.2% at 40,348, RUT -3% at 2,186

SECTORS: Technology -3.36%, Energy -2.56%, Consumer Discretionary -2.25%, Industrials -1.83%, Financials -1.38%, Materials -0.35%, Communication Services +0.89%, Health +1.06%, Consumer Staples +1.09%, Real Estate +1.58%, Utilities +1.85%.

Amazon (AMZN) - Amazon shares fell after weaker than expected sales in the current quarter, and soft sales guidance for the next quarter. It reported Q2 EPS of 1.26 (exp. 1.03), Q2 revenue USD 148bln (exp. 148.56bln). Q2 Online stores net sales USD 55.39bln (exp. 55.55bln), Physical Stores net sales USD 5.21bln (exp. 5.26bln); AWS net sales USD 26.28bln (exp. 25.98bln). Q2 Capex 17.62bln (exp. 15.56bln, vs Q1 14.94bln; previously guided capex higher in Q2 through Q4 compared with Q1). For the next quarter, it sees Q3 operating income between USD 11.5bln-15.0bln (exp. 15.66), and sees Q3 net sales between USD 154bln-158.5bln (exp. 158.2bln).

Apple (AAPL) - Apple ended afterhours trading +0.6% after reporting its Q3 numbers, where iPhone sales declined but still topped expectations, and services revenues topped estimates. Q3 EPS 1.40 (exp. 1.35), Q3 revenue USD 85.78bln (exp. 84.53bln); sales in Greater China improved vs H1 of the year, but still missed expectations at USD 14.73bln (exp. 15.26bln). By segment, Q3 iPhone revenue USD 39.30bln (exp. 38.95bln), Mac revenue USD 7.01bln (exp. 6.98bln), iPad revenue USD 7.16bln (exp. 6.63bln), Wearables, home and accessories rev. USD 8.10bln (exp. 7.79bln). Meanwhile, Products revenue was USD 61.56bln (exp. 60.63bln) in Q3, and Q3 Service revenue was USD 24.21bln (exp. 23.96bln). CEO Cook said it will continue to make significant investments in AI technology. CEO said FX will remain headwind in Q4, with a negative revenue impact of around 1.5% Y/Y. Sees Q4 revenue growth at a similar rate vs Q3; sees services revenue growing double digits at a rate similar to what it reported in the first three quarters of this fiscal year.

Booking Holdings (BKNG) - Shares fell over 6% afterhours as it missed on total travel bookings sales, and expects room nights growth to ease. Q2 adj. EPS 41.90 (exp. 38.37), Q2 revenue USD 5.86bln (exp. 5.77bln). Q2 room nights booked +7% Q/Q. Q2 gross travel bookings +4% Q/Q at USD 41.4bln (exp. 41.7bln). Sees Q3 revenue growth between 2-4%, sees Q3 room nights growth of 3-5%, sees Q3 gross bookings growth between 2-4%. Raises FY24 revenue growth view to more than 7%, but cut FY gross bookings outlook to faster than 6%, and sees FY adj. EPS growth of more than 15%.DoorDash (DASH) - Shares surged in afterhours trading, despite a profit shortfall, DASH saw growth in delivery orders and issued firm guidance. It reported Q2 EPS of -0.38 (exp. -0.09), Q2 revenue of USD 2.63bln (exp. 2.54bln). Q2 marketplace gross order value was USD 19.71bln (exp. 19.3bln), adj. gross margin 49.2% (exp. 48.1%). Exec said consumer demand on the platform is stronger than it's ever been. Sees Q3 EBITDA between USD 470-540mln (exp. 453.3mln), Q3 revenue seen between USD 19.4-19.8bln (exp. 19.4bln).

Intel (INTC) - Shares tumbled almost 20% in afterhours trading, after it missed on the top- and bottom-line, issued weak guidance, and will implement a cost reduction plan including suspending its dividend. It reported Q2 adj. EPS of 0.02 (exp. 0.10), Q2 revenue USD 12.83bln (exp. 12.94bln). Will suspend its dividend starting in Q4, and announced a USD 10bln cost reduction plan where it will implement headcount reductions of more than 15% of the workforce. Sees Q3 revenue between USD 12.5-13.5bln (exp. 14.38bln), sees Q3 adj. gross margin of 38% (exp. 45.5%), and sees a Q3 adj. EPS of -0.03 (exp. +0.30).

Microchip Technology (MCHP) - The semiconductor company's shares fell over 5% in afterhours trading after it issued weak guidance. Q1 adj. EPS 0.54 (exp. 0.52), Q1 revenue USD 1.24bln (exp. 1.24bln). Raises quarterly dividend +10.7% to 0.4540/shr. Exec said that while the 'green shoots' it saw last quarter continued, they have not developed as robustly as anticipated. Said the macro environment particularly for industrial and automotive markets, especially in Europe and the Americas, continues to be weaker than expected, resulting in an extended period over which the inventory correction is playing out. Sees Q2 net sales between USD 1.12-1.18bln (exp. 1.31bln), and sees Q2 adj. EPS between 0.40-0.46 (exp. 0.59).

MicroStrategy (MSTR) - Q2 adj. EPS -7.62 (exp. -0.11), Q2 revenue USD 111.4mln (exp. 120mln). Announced that it will be selling some Class A common stock; may sell these shares occasionally, in one or more separate sales. MicroStrategy holds 226,500 bitcoins, reflecting a current market value 70% higher than its cost basis. Continues to achieve "positive BTC Yield," a new KPI that it is introducing, and targeting 4-8% annually over each of the next three years.

Snap Inc (SNAP) - Shares ended afterhours trading 16% lower after the social media company issued weak guidance. It reported Q2 adj. EPS 0.02 (exp. 0.02), Q2 revenue USD 1.24bln (exp. 1.25bln). Q2 daily active users 432mln (exp. 431.2mln), Q2 ARPU USD 2.86 (exp. 2.90), Q2 adj. EBITDA USD 55mln (exp. 41mln). Sees Q3 adj. EBITDA between USD 70mln-100mln (USD 85mln at the midpoint vs consensus expectations for 110.5mln).

02 Aug 2024 - 06:45- Exclusive- Source: Newsquawk