US EARLY MORNING: US index futures are little changed, and have pared back downside seen overnight; traders await Jackson Hole for next steer

US equity futures are slightly below neutral, and have been paring back losses seen overnight after soft global PMI data exacerbated growth fears. Wednesday’s price action has been subdued, with traders awaiting the Fed’s Jackson Hole Economic Symposium, where central bank officials are likely reiterate their hawkish stances and renew pledges to tackle inflation rather than provide any explicit dovish policy tilt; the full schedule of events will be released at 01:00BST August 25th (20:00EDT on August 24th). Treasury yields are narrower, in keeping with the cautious risk tone, with yields lower by 2-3bps, with the short-end outperforming. The Dollar Index is around flat and beneath 109.00, while the EUR continues to patrol territory sub-parity. Crude futures are a buck or so higher; API’s weekly inventory data reportedly showed a larger than expected draw in crude stocks – Crude -5.6mln (exp. -0.9mln), Cushing +0.7mln – though gasoline and distillate stocks, which traders have been looking at as a gaige of demand, were larger than expected, with gasoline stocks +0.3mln (exp. -1.5mln), and inventories of distillates +1.1mln (exp. +0.6mln). The US Day will see the release of Durable Goods data for July; Pending Home Sales for July; weekly DoE energy inventory data; the US Treasury will sell 5yr notes. Geopolitics will also be in focus given it is Ukraine’s independence day. Full Day Ahead here. 

CONSUMER CYCLICAL

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  Starbucks Corporation (SBUX) - The union representing Starbucks employees at around 200 of its cafes alleges the coffee chain closed two locations in retaliation for organising activities there, though the company cited business and safety reasons for the closures, Reuters reported.


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  Toll Brothers, Inc. (TOL) - Q3 EPS 2.35 (vs 1.87 Y/Y), Q3 revenue USD 2.49bln (exp. 2.5bln). Exec said Q3 deliveries were below guidance due to unforeseen delays with municipal inspectors, continued labour shortages and supply chain disruptions, as well as a softer demand environment. Sees Q4 deliveries between 3250-3550 units, and sees Q4 average delivered price of USD 935-955k per home. Lowered outlook for FY22 deliveries to 10-10.3K units (prev. guidance 11-11.5K), and raised its outlook for FY22 average delivered price per home to USD 915-925k (prev. guidance 890-910,000).


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  Advance Auto Parts Inc (AAP) - Q2 adj. EPS 3.74 (exp. 3.76), Q2 revenue USD 2.70bln (exp. 2.75bln). Lowers FY adj. EPS outlook to 12.75-13.25 from 13.30-13.85 (exp. 13.60bln); FY22 revenue seen between USD 11-11.2bln (exp. 11.34bln), and sees FY22 comp sales down 1% to breakeven.


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  Nordstrom, Inc. (JWN) - Q2 2022 adj. EPS 0.81 (exp. 0.80), Q2 revenue USD 4.10bln (exp. 3.99bln), Q2 Net sales 3.99bln,  (exp. 3.90bln). Q2 Nordstrom Brand net sales 2.77bln (exp. 2.67bln), Nordstrom Rack Brand net sales 1.22bln (exp. 1.23bln), Credit Card net revenues 104mln (exp. 97mln). Said it would be "aggressively right-sizing our inventory while investing in supply chain and merchandising capabilities that will benefit us in 2023 and beyond." Lowers FY22 adj. EPS outlook to 2.30-2.60 (exp. 3.05, prev. guidance 3.20-3.50), and lowers FY22 revenue outlook to growth of 5-7% (prev. guidance was for growth of 6-8%) to reflect revised plans for H2.


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  eBay Inc. (EBAY) - Acquires the myFitment Group of companies; the deal brings the myFitment companies' proven, leading technology in-house to help customers increase sales, satisfaction, eBay said. No terms were stated.


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  Urban Outfitters, Inc. (URBN) - Q2 22 adj. EPS 0.64 (exp. 0.67), Q2 revenue USD 1.18bln (exp. 1.18bln). Q2 comp retail segment sales +1% (exp. +1.18%). Q2 Gross margin 31.7% (exp. 32.4%). Q2 inventory USD 697.5mln (exp. 561.1mln).


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  La-Z-Boy Incorporated (LZB) - Q1 EPS 0.89 (exp. 0.67), Q1 revenue USD 604.1mln (exp. 566.1mln). Sees Q2 revenue between USD 590-605mln (exp. 595mln). Continues to anticipate results may vary significantly in 2023 due to current industry dynamics as well as macroeconomic and geopolitical uncertainty and its effect on consumer sentiment. Expects delivered sales for FY23 Q2 to be up 2-5% Y/Y.


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  LVMH (LVMUY) - Beauty store Sephora is reportedly gearing up to re-enter the UK market in Q1 2023, with the first store likely in London's Westfield White City shopping centre, according to the Women's Wear Daily journal.


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  Richemont (CFRUY) - Wil take a non-cash charge of around EUR 2.7bln on YNAP investments.

ENERGY :

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  Private Inventory Survey - API’s weekly inventory data reportedly showed a larger than expected draw in crude stocks, though gasoline and distillate stocks were larger than expected. Crude -5.6mln (exp. -0.9mln), Cushing +0.7mln, Gasoline +0.3mln (exp. -1.5mln), Distillates +1.1mln (exp. +0.6mln).


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  Shell (SHEL) - Shell said it reached an agreement in-principle with unions at the Prelude Floating LNG site in Australia and the process to end industrial action is expected to be completed shortly, enabling the site to prepare for a restart.


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  Siemens Energy (SMNEY) - US Treasury grants licenses to work with the state-owned Petroleos de Venezuela to repair Venezuelan power plants, according to Bloomberg.


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  TotalEnergies (TTE) - TotalEnergies, INPEX and Woodside have partnered to develop a major offshore CO2 Sequestration Project.

MATERIALS:

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  Ecolab Inc. (ECL) - Disclosed that Bill Gates bought 58.7K shares on August 19th for USD 10.0mln, according to a filing.

INDUSTRIALS:

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  Fluor Corporation (FLR), Anglo American (NGLOY) - Fluor announced that first production of copper concentrate has been achieved at Anglo American’s Quellaveco project in Peru. Marks the beginning of testing the processing plant with ore and the ramping up of mining activities to demonstrate readiness for operations. Flur said this is a major milestone for Anglo American and its partner Mitsubishi Corporation as the project nears completion ahead of receiving final regulatory clearance for commercial operations to begin.


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  Toyota Motor Corporation (TM) - Toyota said it recognised the state of California's authority to set vehicle emissions standards under the US Clean Air Act, Reuters reported, making the automaker eligible for government fleet purchases by California.


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  Tractor Supply Company (TSCO) - Announced the groundbreaking of its new distribution center in Maumelle, Ark. The 1.2mln sqft facility represents an initial investment of USD 128mln.

COMMUNICATIONS:

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  Snap Inc. (SNAP) - Illinois residents who use Snapchat may be eligible for payouts of between USD 58-117 in a class-action privacy settlement reached this month by the app’s parent company, Snap. Inc, Chicago Tribune reported. The lawsuit alleges lenses and filters on Snapchat collect and store users’ biometric information without their informed consent in violation of Illinois’s biometric privacy laws.


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  Twitter (TWTR) - The social media company will combine teams working on reducing harmful content and spam bots.


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  Warner Bros. Discovery, Inc. (WBD) - Upcoming game 'Gotham Knights' has seen its release date moved forward to October 21st (prev. October 25th).

TECH:

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  Chip Names - Chinese merchants are reportedly concerned more by weak demand for mature integrated circuits from the consumer electronics sector than US trade sanctions, according to SCMP citing business merchants.


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  Intuit Inc. (INTU) - Q4 2022 Adj. EPS 1.10 (exp. 0.98), Q4 revenue USD 2.40bln (exp. 2.34bln). Board approves new USD 2bln share repurchase authorisation bringing the total buyback authorisation to USD 3.5bln. Exec said it had a very strong Q4, ended the year with momentum. Sees Q1 Adj. EPS 1.14-1.20 (exp. 1.86). Sees FY 2023 adjusted EPS 13.59-13.89 (exp. 13.89). Sees FY 2023 revenue 14.49bln-14.70bln (exp. 14.57bln).


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  Robinhood Markets (HOOD) - Added 300+ new OTC securities to trade on Robinhood.

FINANCIALS:

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  HSBC (HSBC) - Ping An co-CEO said HSBC was a significant investment, and it cared about long-term returns; added that Ping An is not an active investor, will support any proposals by investors that support long-term value improvements.

UTILITIES:

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  Iberdrola (IBDRY) - France's new energy regulator chief summoned Iberdrola after the its move to end thousands of French power retail contracts.

CONSUMER STAPLES:

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  Tattooed Chef, Inc. (TTCF), Walmart, Inc (WMT) - Tattooed Chef announced an expanded distribution agreement with Walmart that will increase the availability of its branded products at stores across the US.

HEALTH CARE:

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  Valneva (VALN) - WHO issued recommendations for use of the company’s inactivated COVID-19 vaccine.

REAL ESTATE:

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  CBRE Group (CBRE) - Board approved USD 2bln boost to its stock repurchase authorisation, in addition to the existing USD 2bln authorisation, which now has around USD 898mln remaining.

24 Aug 2022 - 09:31- Research Sheet- Source: Newsquawk