10 things to watch on Friday, July 26
1. The S&P 500 and Nasdaq were headed for higher opens Friday after the Federal Reserve’s favorite inflation gauge, the core PCE price index, matched estimates. Both stock measures were tracking lower for the week, with Wednesday’s worst session since 2022 accounting for the bulk of the losses in the recent rotation out of tech shares. Megacap tech earnings Part 2 comes next week.
2. The June personal consumption expenditures index, excluding food and energy prices, showed a monthly increase of 0.2% and 2.6% on the year. Both were in line with expectations. The data didn’t sway the market odds on the Fed cutting interest rates three times this year, starting in September. No action is expected at next week’s central bank meeting.
3. 3M posted a solid quarter with top and bottom line beats. The stock jumped more than 6.5%. Segments: Safety & Industrial up 1.1%; Transportation & Electronics up 3.3%; and Consumer down 1.4%. The industrial conglomerate raised its full-year outlook. Two of the Club’s industrial names, Honeywell and Dover, reported earnings this week with mixed fortunes for their stocks.
4. Colgate-Palmolive beat on top and bottom lines, with organic sales growth of 9%. The consumer products giant backed its full-year net sales outlook of 2% to 5% growth.
5. Bristol Myers reported top and bottom line beats. The drugmaker also raised its full-year adjusted EPS outlook range to 60 to 90 cents from 40 to 70 cents.
6. Dexcom shares plunged more than 35% after the medical device company missed on revenue and cut its full-year outlook. Dexcom pointed to market share loss, execution and other factors for the shortfall. We think Club name Abbott Laboratories‘ Libre took share in the quarter. Following late week’s post-earnings decline, Abbott shares went on a four-session winning streak that ended with a decline Thursday.
7. Skechers raised its full-year guidance and announced $1 billion stock buyback. The stock rose nearly 3%.
8. Deutsche Bank upgraded Lockheed Martin to a buy and raised its price target on strong second-quarter results that pointed to a solid second half of the year. The analysts downgraded L3Harris to hold and cut their PT citing valuation concerns.
9. The new Alzheimer’s treatment from U.S.-based Biogen and Japan’s Eisai was rejected by EU regulators. Novo Nordisk‘s Wegovy wins EU backing for reducing heart risks. Club name Eli Lilly makes competing drugs on both fronts.
10. Deckers Outdoor popped more than 12% after the company reported a better-than-expected quarter and raised its full-year outlook, thanks to strength in its brands Hoka and UGG.
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