US EQUITY OPEN: Indices open the green with PCE in the rear view ahead of risk events

Analysis details (15:05)

OPEN:

• US indices opened in the green, (SPX +0.9%, NDX +0.8%) with outperformance in the Russell 2000 (+1.8%) and continuing on its recent strength seen. The key highlight on Friday was of course the US PCE report for June, whereby Core M/M and Y/Y came in marginally above expectations, while PCE price index came in line with expectations. The reaction was largely limited to the bond complex, where Treasuries initially saw a two way reaction but ultimately saw notable gains once the dust settled with the data doing little to change the Fed narrative. Overall, Treasuries are firmer across the curve with the greatest gains in the short-end.


• Sectors opened almost exclusively in the green, with only Energy in the red and weighed on by weakness in the crude complex on the known themes, such as sluggish China demand. Industrials sits atop of the pile, and buoyed by stellar 3M (MMM) (+13.5%) earnings. Elsewhere, CrowdStrike (CRWD) (+1%) CEO said in excess of 97% of Window sensors were back online.


• The Dollar is flat and hovering around session lows, with Antipodeans outperforming and attempting to reclaw back some of its recent losses. Precious metals (XAU, XAG) are diverging, with spot gold seeing gains and spot silver weakness.


• Looking ahead, the calendar is pretty sparse with only the weekly Baker Hughes schedule. 

EARNINGS:

• 
  Bristol-Myers Squibb (BMY) - Reported strong earnings and raised guidance, as well as Phase 3 trials for cendakimab meeting the endpoint.


• 
  Centene (CNC) - Top and bottom line surpassed expectations, and raised FY24 revenue view.


• 
  AON (AON) - Adj. EPS missed and H1 FCF and cash from operations decreased.


• 
  3M (MMM) - Top and bottom line impressed, alongside lifting the lower end of FY adj. EPS guidance.


• 
  Norfolk Southern (NSC) - Profit topped consensus.


• 
  Colgate-Palmolive (C) - Exceeded Adj. EPS and revenue forecasts.


• 
  Charter Communications (CHTR) - Multiple metrics were stronger than expected citing revenue growth on increases in residential mobile service, residential Internet, enterprise and other revenues.


• 
  Coursera (COUR) - Top and bottom line beat.


• 
  T. Rowe Price (TROW) - Missed on EPS and revenue.

STOCK SPECIFICS:

• 
  CrowdStrike (CRWD) - CEO said that over 87% of Windows sensors are back online after a global outage caused by a faulty software update in their Falcon platform.

26 Jul 2024 - 15:01- EquitiesResearch Sheet- Source: Newsquawk