Wake Up Wall Street (SPY): AMC apes pop as market slumbers ahead of CPI and infrastructure bill
Here is what you need to know on Tuesday, August 10:
The stock market may as well have taken a long weekend as Monday saw little change across the main indices. Apple stock registered a range of a mere 118 ticks (see more), while the major indices were trading flat in anticipation of the big inflation data on Wednesday. AMC did manage to excite, releasing some decent results after Monday's close with revenue well ahead of expectations. AMC apes jumped loose and sent the stock up 6% in the post-market. This earnings season is drawing to a close, and once again it has been impressive with nearly 90% of companies beating analyst expectations. Once again we wonder just how those analysts can get it so wrong, so consistently. Clearly, the market has started to ignore them with the majority of beats not seeing the expected bullish follow-through from stock prices. Investor expectations are clearly higher than analyst ones.
Oil continues to be the most interesting commodity as the dump continues. Now down at $67.75, the oil market is worried about the Delta wave, though equities appear to ignore it. Oil also got a serious jolt on Monday from the UN climate change report.
The dollar is consolidating after recent strength, currently at 1.1720 versus the euro, while Gold is down to $1,730. Bitcoin is slightly lower but still at $45,400, while the US 10-year advances to 1.3% ahead of Wednesday's inflation data. We think inflation is due to make a return to the forefront of investors' concerns. The Fed did a pretty good job of hammering those concerns during the summer, and the equity market was happy to take the bait. Looking through earnings reports, the number of companies reporting supply constraints and raw material price increases has been growing.
European markets are mixed: Eurostoxx +0.2%, FTSE -0.1% and Dax +0.2%.
US futures are flat: Dow -0.05%, S&P +.0.01% and Nasdaq +0.1%.
SPY stock news and forecast
German ZEW sentiment index well behind estimates, 40.4 versus 55 estimates.
US Senate vote is due on the $1 trillion infrastructure bill later today.
Moderna (MRNA) up another 2% in premarket after booster shot comments by CDC. Also BNTX NVAX up similar.
Lufax Holding (LU) results better than expected, stock up 11% in premarket.
AMC up 8% premarket on results and $2 billion liquidity pile.
Kansas City Southern (KSU) up 7% as Canadian Pacific (CP) formalizes offer at $300 per share for KSU.
SVB Financial (SIVB) down 4% premarket on pricing of an underwritten public offering.
First Republic Bank (FRC) down 4% premarket on 2m share offering.
3D Systems (DDD) earnings beat on EPS and revenue, shares up 14% premarket.
Planet Fitness (PLNT) missed EPS but revenue ahead.
Coinbase (COIN) reports after the market close.
FUBO Tv (FUBO) reports after the market closes.
Fisker (FSKR) up 12% as Morgan Stanley resumes coverage with a buy rating.
Upgrades, downgrades and premarket
Source: Benzinga Pro
Economic releases
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
