• Co today announced that together with ExxonMobil Canada, it has entered into an agreement with Whitecap Resources Inc. for the sale of XTO Energy Canada, which is jointly owned by Imperial and ExxonMobil Canada, for a total cash consideration of $1.9 billion ($940 million Imperial's share).
• The sale is expected to close before the end of the third quarter 2022, subject to regulatory approvals.

• Omnicell Inc (OMCL) will replace Coherent Inc. (COHR) in the S&P MidCap 400, and Stride Inc (LRN) will replace Omnicell in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, July 5.
  • S&P MidCap 400 constituent II-VI Inc. (IIVI) is acquiring Coherent in a deal expected to be completed on July 1, pending final closing conditions.
• Southwestern Energy Co. (SWN) will replace CDK Global Inc. (CDK) in the S&P MidCap 400, and Frontdoor Inc. (FTDR) will replace Southwestern Energy in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, July 6.
  • Brookfield Business Partners LP is acquiring CDK Global in a tender offer expected to be completed on July 5.
• Ormat Technologies Inc. (ORA) will replace CMC Materials Inc. (CCMP) in the S&P MidCap 400 effective prior to the opening of trading on Thursday, July 7.
  • Entegris Inc. (ENTG) is acquiring CMC Materials in a transaction expected to be completed on July 6.
• Enhabit Inc. (EHAB) will replace Loyalty Ventures Inc. (LYLT) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, July 5.
  • S&P MidCap 400 constituent Encompass Health Corp. (EHC) is spinning off Enhabit in a transaction expected to be completed prior to the open on Friday, July 1, pending final conditions.
• Sun Country Airlines Holdings Inc. (SNCY) will replace Neenah Inc. (NP) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, July 5.
  • SchweitzerMauduit International Inc. (SWM) is acquiring Neenah in a transaction expected to be completed on July 1.

• Labcorp Drug Development and BML will begin work on a new laboratory facility in the city of Kawagoe, Saitama, expanding capacity and services for pharmaceutical and biotechnology clients, bolstering Labcorp Drug Development's central laboratory services offerings in Japan and sets the stage for a continued acceleration of companion diagnostic capabilities.

• A narrowly divided Federal Trade Commission (FTC) brought this factually flawed and legally baseless civil lawsuit after the Chair refused Walmart the due process of hearing directly from the company, and even the Justice Department refused to take this case to court.
  
• Claiming an unprecedented expansion of the FTC's authority, the agency seeks to blame Walmart for fraud that the agency already attributed to another company while that company was under the federal government's direct supervision.
  
• Walmart will defend the company's robust anti-fraud efforts that have helped protect countless consumers, all while Walmart has driven down prices and saved consumers an estimated $6 billion in money transfer fees.
• See release

• The $36 million contract award is for the competitive prototyping phase that will span 14 months.

• Co announces that Marcel Kessler has been appointed as the company's Chief Executive Officer and President, and has been elected to the company's Board of Directors, all effective July 1, 2022.
• David Rintoul, the company's current Chief Executive Officer and President, previously informed the company of his intention to retire from the company and resign from the Board effective as of June 30, 2022.

• Earnings/guidance gainers: None
• Earnings/guidance losers: AVAV -7.3%, PRGS -2.1%

• Co enters into a binding term sheet with GLP Capital, the operating partnership of Gaming and Leisure Properties (GLPI), to acquire the real property assets of Bally's two Rhode Island casino properties: Bally's Twin River Lincoln Casino Resort and Bally's Tiverton Casino & Hotel.
• Bally's will immediately lease back both properties and continue to own, control, and manage all the gaming operations of the facilities on an uninterrupted basis.
• Total consideration for the acquisition is $1 bln. Both properties are expected to be added to the existing Bally's Master Lease between GLPI and Bally's with incremental rent of $76.3 mln.
• If all third-party consents and approvals for the acquisition of Lincoln are not timely received, then GLP will instead acquire the real property assets of the Hard Rock Hotel & Casino Biloxi in Mississippi along with Tiverton for total consideration of $635 mln.

The stock market opened mostly higher after a few pieces of relatively positive news. Beijing and Shanghai reported zero COVID cases for the first time since February, fueling hope of fully reopening China's economy. In addition, several banks increased their dividend and/or share repurchase plans after the Fed's stress test. Shortly after the open, the Dow, Nasdaq, and S&P 500 gained 1.3%, 1.0%, 1.2%, respectively.

A reversal of trading mentality took hold after the weaker-than-expected Consumer Confidence Index for June at 10:00 a.m. ET. That report conjured stagflation worries with the Expectations Index dropping to its lowest level (66.4) since March 2013 and the year-ahead inflation expectations increasing to 8.0% from 7.5%.

The three main indices couldn't keep the bounce effort going and sold off steadily after that, ultimately finishing near their worst levels of the day. The S&P 500 for its part closed a fraction below Friday's low.

The mega caps did not help sentiment today, showing strong downside leadership that seemingly weighed on most stocks. The Vanguard Mega Cap Growth ETF (MGK) closed down 3.4% versus the Invesco S&P 500 Equal Weight ETF (RSP) which closed down by 1.5%. The Russell 2000 was down 1.9% and S&P Mid Cap 400 was down 1.4%.

In addition, market breadth saw a complete turnaround from where it started the session. Earlier, advancers led decliners at the NYSE by a 2-to-1 margin. By the close, decliners led advancers by a greater than 2-to-1 margin at the NYSE and the Nasdaq.

Ten of the 11 S&P 500 sectors closed in the red with losses ranging from 0.4% (utilities) to 4.0% (consumer discretionary). The lone holdout in the green was energy, up 2.7%.

The energy sector, which closed with all components in the green, benefitted from higher oil prices ($111.96, +2.26, +2.4%), which stemmed from the reopening push in China and a Reuters report indicating Saudi Arabia and the UAE have limited spare capacity to boost output.

The consumer discretionary sector was dragged down by its mega cap components, Amazon.com (AMZN 107.40, -5.82, -5.1%) and Tesla (TSLA 697.99, -36.77, -5.0%), but also Nike (NKE 102.78, -7.72, -7.0%) which reached a new 52-week low following its fiscal Q4 earnings report and soft fiscal Q1 revenue guidance. The few standouts in the sectors included Wynn Resorts (WYNN 59.49, +1.80, +3.12%) and Las Vegas Sands (LVS 34.51, +1.34, +4.0%), which drafted off the China reopening sentiment.

Reviewing today's economic data:

• The Conference Board's Consumer Confidence Index dropped to 98.7 in June (Briefing.com consensus 101.0) from a downwardly revised 103.2 (from 106.4) in May. This is the lowest reading since February 2021 and compares to 128.9 in the same period a year ago.
  • The key takeaway from the report is the sharp drop in consumers' expectations, which was driven primarily by inflation concerns. The Expectations Index sits at a level that is a likely portent of weaker growth in the second half of the year and raises the risk of recession by year end.
• The Advance report for International Trade in Goods in May showed a deficit of $104.3 billion, versus a revised $106.7 billion (from $105.9 billion) in April. The Advance report for Retail Inventories in May rose 1.1% versus the prior month's increase of 0.7%. The Advance report for Wholesale Inventories in May rose 2.0% versus April's revised increased of 2.3% (from 2.1%).
• The S&P Case-Shiller Home Price Index for April was 21.2% (Briefing.com consensus 21.1%) compared to the prior revised reading of 21.1% (from 21.2%). The FHFA Housing Price Index for April was 1.6% compared to the prior revised reading of 1.6% (from 1.5%).

Looking ahead to Wednesday, the weekly MBA Mortgage Applications Index (prior 4.2%) will be released at 7:00 ET. The Q1 GDP Third Estimate (Briefing.com consensus -1.5%; prior -1.5%) and Q1 GDP Deflator Third Estimate (Briefing.com consensus 8.1%; prior 8.1%) will be released at 8:30 ET. The weekly EIA Crude Oil Inventories will be released at 10:30 ET.

• Dow Jones Industrial Average: -14.8% YTD
• S&P 500: -19.8% YTD
• S&P 400: -18.8% YTD
• Russell 2000: -22.6% YTD
• Nasdaq Composite: -28.5% YTD

• Co announces that its subsidiary, PHH Mortgage, has entered into an agreement with Federal Home Loan Bank of Indianapolis to purchase mortgage servicing rights through its Mortgage Purchase Program.
• FHLBank Indianapolis has more than 300 depository members and 100 participating financial institutions that originate about $2 billion annually who sell loans into MPP to replenish their capital and minimize portfolio risk.
  

• The repurchase transactions represent FNF's total equity ownership in Cannae which FNF received in connection with the split-off of Fidelity National Financial Ventures, Cannae's predecessor, in 2017.
• "Buying our shares from FNF further demonstrates our commitment to our shareholders by aggressively repurchasing our shares while also removing an overhang that existed given FNF's requirement to sell these shares by November 2022. We remain committed to our buyback program..."
• Since May 2021, Cannae has repurchased approximately 11.6 mln shares, representing 12.7% of shares outstanding.

• Reports Q2 (May) earnings of $1.04 per share, $0.09 better than the S&P Capital IQ Consensus of $0.95; revenues rose 15.1% year/year to $148.7 mln vs the $146.45 mln S&P Capital IQ Consensus.
• Annualized Recurring Revenue (ARR) of $486 million increased 13% year-over-year on a constant currency basis.
• Co issues downside guidance for Q3, sees EPS of $0.96-$0.98 vs. $1.10 S&P Capital IQ Consensus; sees Q3 revs of $147-$150 mln vs. $160.92 mln S&P Capital IQ Consensus.
• Co issues in-line guidance for FY22, sees EPS of $4.01-$4.09 vs. $4.06 S&P Capital IQ Consensus; sees FY22 revs of $609-$617 mln vs. $612.76 mln S&P Capital IQ Consensus.

• Leveraged combined expertise to introduce DuraForm PAx Natural -- a first-to-market material available for all Selective Laser Sintering platforms.

• Co announces that co-founder, CEO Ben Silbermann will transition to the newly created role of Executive Chairman, and online commerce expert.
• Bill Ready will become CEO and a member of the Board of Directors, effective June 29.
• Ready is joining Pinterest from Google (GOOG), where he served as President of Commerce, Payments & Next Billion Users and oversaw Google's vision, strategy and the delivery of its commerce products. Prior to Google, Ready served in various senior leadership roles at PayPal (PYPL), including COO.

• Reports Q4 (Apr) earnings of $0.30 per share, excluding non-recurring items, $0.10 worse than the S&P Capital IQ Consensus of $0.40; revenues fell 2.5% year/year to $132.62 mln vs the $134.16 mln S&P Capital IQ Consensus.
• Co issues guidance for FY23, sees EPS of $1.35-1.65, excluding non-recurring items, vs. $1.80 S&P Capital IQ Consensus; sees FY23 revs of $490-520 mln vs. $513.50 mln S&P Capital IQ Consensus.
• Co added, "During the quarter, the Company continued to face supply chain constraints and a tight labor market, but several factors point to strengthening demand and an overall improving outlook. First, the federal government passed its fiscal 2022 omnibus appropriations bill in March, and contract decision-making has begun to accelerate -- which, we believe, will continue through the end of September."

• Co announces it will implement an operating expense streamlining plan that will include a reduction of employee and non-employee expenses across the organization. The Company plans to continue to drive the launch of TYRVAYA with approximately 150-200 field-based sales resources.
• To reflect these strategic priorities, the company is also announcing that Daniel Lochner, its current Chief Financial Officer, will take on additional responsibilities now serving in a dual role as the Company's Chief Financial Officer and Chief Business Officer.
• Michael Campbell, the company's current Vice President of Sales and Commercial Operations, will be promoted to Senior Vice President, Head of Commercial, and John Snisarenko, Chief Commercial Officer, will retire from the company effective July 1, 2022.
• The plan is expected to reduce operating expenses by approximately $6-8 million in the second half of 2022, net of severance costs, and reduce operating expenses by approximately $40-48 million in 2023.
• The reduction in operating expenses is expected to be primarily driven by lower non-employee-related general and administrative and research and development expenses, and to a lesser extent, by the reduction of up to 50 roles across the organization.

• Co reaches settlement agreement that has been submitted to the Washington Utilities and Transportation Commission for its consideration. If approved, new rates would take effect in Dec. 2022 and Dec. 2023.
• The settlement includes, among other things, agreement on electric and natural gas revenue requirement increases for both years of the multi-year rate plan.
• If approved, the settlement agreement is designed to increase annual electric revenues by $38 mln effective in Dec. 2022 and $12.5 mln effective in Dec. 2023 and increase annual natural gas revenues by $7.5 mln effective in Dec. 2022 and $1.5 million effective in Dec. 2023.

• Based on the latest inspection reports, Marathon's miners in Montana may have sufficient power to come back online in a reduced capacity as early as the first week of July.

• Co announces that it has entered into a binding term sheet with Bally's Corporation (BALY) to acquire the real property assets of Bally's two Rhode Island casino properties -- Bally's Twin River Lincoln Casino Resort and Bally's Tiverton Casino & Hotel -- subject to customary regulatory approvals with Bally's Twin River Lincoln Casino Resort also subject to lender consent.
• Pursuant to the terms of the transaction, Bally's will immediately lease back both properties and continue to own, control, and manage all the gaming operations of the facilities on an uninterrupted basis.
• Total consideration for the acquisition is $1.0 billion and GLPI expects the transaction to be accretive to earnings upon closing in late 2022.
• GLPI intends to fund the transaction through a mix of debt, equity, and OP units.
• In connection with GLPI's commitment to consummate the Bally's acquisitions, it also agreed to pre-fund, at Bally's election, a deposit of up to $200.0 million, which will be credited or repaid to GLPI at the earlier of closing and December 31, 2023, in either case along with a $9.0 million transaction fee payable at closing.
• If all third-party consents and approvals for the acquisition of Lincoln are not timely received, then GLPI will instead acquire the real property assets of the Hard Rock Hotel & Casino Biloxi in Mississippi along with Bally's Tiverton Casino & Hotel, for total rent of $48.5 million, at the same combined 7.6% capitalization rate with total a payment of $635 million.
• In that event, GLPI will also have the option, subject to receipt of required consents, to acquire the real property assets of Lincoln prior to December 31, 2024 for a purchase price of $771 million and additional rent of $58.8 million.

• Co announces that the FDA has approved LungFit PH to treat term and near-term neonates with hypoxic respiratory failure (often referred to as persistent pulmonary hypertension of the newborn or PPHN) (prescription use only).
• LungFit PH is the initial device from the LungFit therapeutic platform of nitric oxide generators that use our patented Ionizer technology and is the first FDA-approved product for Beyond Air.
  • It is the first and only nitric oxide generator and delivery system indicated for the treatment of term and near-term neonates with hypoxic respiratory failure that uses ambient air to provide unlimited, on-demand nitric oxide.
  • Eliminates the need for traditional nitric oxide tanks from the hospital setting and the associated burdens to providers.
  • LungFit PH is the first FDA-approved product from Beyond Air's LungFit therapeutic platform of nitric oxide generators targeting pulmonary disease.

• This decision is now subject to a public consultation period, which is due to end at 23:45 (BST) on July 13, 2022. Subject to this consultation, the UK Secretary of State will be in a position to approve the Acquisition without further review.

• This Afternoon: AVAV PRGS
  
• Tomorrow Morning: BBBY GIS MKC MSM PDCO PAYX SCHN UNF

• Healthcare: ENDP (413.01 mln +98.69%), KZR (40.3 mln +42.73%)
• Consumer Discretionary: TOUR (74.99 mln +52.99%), NIO (68.41 mln -2.53%), AMZN (55.02 mln -4.95%), CCL (37.79 mln -1.33%), F (35.77 mln -1.79%)
• Information Technology: XELA (100.27 mln -2.47%), AMD (78.32 mln -6.19%), AAPL (44.36 mln -2.57%), NVDA (35.49 mln -4.92%)
• Financials: TQQQ (159.36 mln -8.07%), SQQQ (97.67 mln +8.19%), QQQ (48.1 mln -2.69%), ITUB (38.27 mln -2.91%), BAC (35.78 mln -0.27%), BBD (32.05 mln -3.32%)
• Energy: SWN (33.92 mln +1.67%), OXY (32.61 mln +4.04%)

• Healthcare: KZR (24.81x +42.73%), ENDP (15.9x +98.69%), QTNT (1.74x +0%)
• Industrials: WNC (2.66x -0.76%)
• Consumer Discretionary: TOUR (454.27x +52.99%), NKE (3.69x -6.83%), HTHT (3.05x +7.72%)
• Information Technology: COHR (3.23x +0.34%), BDC (2.36x -0.11%), QCOM (2.24x +4.91%), INFN (1.73x +1.1%)
• Financials: EEMA (8.05x -0.04%), VNQI (2.17x +0.13%), FTSL (2.09x -0.18%), LEO (1.83x +1.56%), COWN (1.79x +0.6%)
• Energy: TRP (2.58x +1.22%)
• Consumer Staples: FDP (1.76x +1.16%)
• Utilities: POR (2.72x -2.3%)

The following are some of today's most notable large cap movers of interest ($10 bln - $200 bln market cap), ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

• TCOM (27.63 +12.45%): beats by RMB0.49, beats on revs.
• QCOM (133.34 +4.84%): added to US1 List at BofA Securities.
• EQNR (35.19 +3.03%): The Co and SSE Thermal are stepping up ambitions to contribute to decarbonization in the UK. The companies are buying power company Triton Power from Energy Capital Partners, an energy-transition infrastructure investor, and are starting preparations to use hydrogen in the Saltend Power Station.

Large Cap Losers

• NET (45.35 -7.92%): Cloudflare among top lagers as First Trust Cloud ETF (-3.8%) lags in the tech sector today amid broader weakness in growth stocks.
• LI (36.51 -6.70%): Li Auto to sell $2 bln in ADSs through at-the-market offering.
• AMD (80.54 -6.52%): Cyber criminals claim that AMD has been targeted by extortion group RansomHouse, according to The Register.

• Today's top 20 % gainers
  • Healthcare: ENDP (0.76 +98.69%), KZR (8.25 +42.73%)
  • Consumer Discretionary: TOUR (0.79 +52.99%), HTHT (38.53 +7.72%), LE (12.22 +7.57%), MLCO (6.27 +6.81%), LVS (34.62 +4.37%)
  • Information Technology: QCOM (133.42 +4.91%)
  • Financials: SQQQ (56.26 +8.19%), IVR (14.19 +6.37%)
  • Energy: BPT (24.46 +7.19%), SLCA (12.16 +5.31%), EC (11.46 +5.01%), ERF (14.46 +4.78%), HES (111.75 +4.48%), CPG (7.81 +4.34%)
  Today's top 20 % losers
  • Healthcare: AXDX (0.97 -14.14%), RIGL (1.08 -11.89%), PACB (4.83 -9.04%), KPTI (4.59 -8.85%), TCDA (9.72 -8.78%), NVTA (2.64 -8.65%)
  • Industrials: AFI (0.26 -27.9%),
  • Consumer Discretionary: CVNA (24.85 -18.09%), FTCH (7.92 -10.87%), W (50.6 -9.16%), QUOT (3.37 -8.67%),
  • Information Technology: AVYA (2.4 -14.29%), PLAB (19.27 -9.95%), HUBS (307.57 -7.73%),
  • Financials: TQQQ (25.12 -8.07%),
  • Energy: CLNE (4.95 -8.93%),

Opening Losses Narrowed

• U.S. Treasuries ended Tuesday just below their flat lines after recovering the bulk of their modest early gains. The market appeared on track for an extension of yesterday's losses after Treasury futures retreated overnight. The losses took place alongside gains in most global equity markets, with overall sentiment receiving a boost from news that China is reducing quarantine requirements for international travelers. Treasuries added to their modest starting losses during the first few minutes of action but found support shortly after the 10-yr yield ticked above the 3.250% mark. Treasuries climbed above their starting levels during the first hour of action, continuing their rebound alongside a weak showing from equities. However, even with the weakness in stocks, Treasuries found resistance near their flat lines, spending the afternoon in a narrow range just below highs. The U.S. Treasury capped this week's note auction slate with a weak $40 bln 7-yr note offering, but the sale did not pressure the cash market, even though it drew a 2.1 bps tail. Crude oil climbed back above its 50-day moving average (110.30) while the U.S. Dollar Index rose 0.5% to 104.50.
• Yield Check:
  • 2-yr: +2 bps to 3.14%
  • 3-yr: +2 bps to 3.23%
  • 5-yr: UNCH at 3.26%
  • 10-yr: +1 bp to 3.21%
  • 30-yr: +1 bp to 3.31%

• News:
  • China's National Development and Reform Commission acknowledged challenges associated with stabilizing prices and the job market.
  • South Korea's prime minister called on his government to come up with a plan to stabilize inflation.
  • Moody's affirmed Australia's Aaa rating with a Stable outlook.
  • NATO Secretary General indicated that Turkey will no longer object to admitting Sweden and Finland into the alliance.
  • European Central Bank President Lagarde repeated that the ECB is planning a 25-bps rate hike in July, followed by another hike in September.
  • The U.K.'s House of Commons voted in favor of overriding elements of the Northern Ireland protocol.
  • Japan's May BoJ Core CPI was up 1.5% yr/yr, as expected (last 1.4%).
  • Germany's July GfK Consumer Climate fell to -27.4 from -26.2 (expected -27.6).
  • France's June Consumer Confidence fell to 82 from 85 (expected 84).
  • Italy's April Industrial Sales rose 2.7% m/m (last 2.5%), increasing 22.0% yr/yr (last 21.6%).
  • $40 bln 7-year Treasury auction results (prior 12-auction average):
    • High yield: 3.280% (1.766%).
    • Bid-to-cover: 2.48 (2.36).
    • Indirect bid: 61.9% (62.7%).
    • Direct bid: 20.4% (21.2%).
• Today's Data:
  • The Conference Board's Consumer Confidence Index dropped to 98.7 in June (Briefing.com consensus 101.0) from a downwardly revised 103.2 (from 106.4) in May. This is the lowest reading since February 2021 and compares to 128.9 in the same period a year ago.
    • The key takeaway from the report is the sharp drop in consumers' expectations, which was driven primarily by inflation concerns. The Expectations Index sits at a level that is a likely portent of weaker growth in the second half of the year and raises the risk of recession by year end. 
  • The advance goods trade deficit narrowed to $104.30 bln in May from a revised deficit of $106.70 bln (from -$105.90 bln) in April.
  • Advance Retail Inventories increased by 1.1% in May after increasing 0.7% in April.
  • Advance Wholesale Inventories increased by 2.0% in May after increasing a revised 2.3% (from 2.1%) in April.
  • The FHFA Housing Price Index rose 1.6% in April after increasing a revised 1.6% (from 1.5%) in March.
  • The S&P Case-Shiller Home Price Index rose 21.2% in April (Briefing.com consensus 21.1%) after increasing a revised 21.1% (from 21.2%) in March.
• Commodities:
  • WTI crude: +2.4% to $111.96/bbl
  • Gold: -0.1% to $1821.90/ozt
  • Copper: +0.6% to $3.77/lb
• Currencies:
  • EUR/USD: -0.6% to 1.0520
  • GBP/USD: -0.7% to 1.2180
  • USD/CNH: +0.3% to 6.7054
  • USD/JPY: +0.6% to 136.23
• The Day Ahead:
  • 7:00 ET: Weekly MBA Mortgage Index (prior 4.2%)
  • 8:30 ET: Q1 GDP -- third estimate (Briefing.com consensus -1.5%; prior -1.5%) and Q1 GDP Deflator -- third estimate (Briefing.com consensus 8.1%; prior 8.1%)
  • 10:30 ET: Weekly crude oil inventories

• CL00-USA Crude Oil futures rose $2.62 (2.4%) to $111.96/barrel
• NG00-USA Nat Gas $0.01 fell (-0.17%) to $6.51/MMBtu
• RB00-USA RBOB Gasoline settled $0.13 higher (3.49%) at $3.85/gallon
• HO00-USA Heating oil futures settled $0.01 higher (0.35%) at $4.13/gallon

The following are some of today's most notable mid cap movers of interest ($2 bln - $10 bln market cap), ranked by % change (all stocks over 100K average daily volume).

Mid Cap Gainers

• MLCO (6.33 +7.84%): Trends higher as China lowers quarantine requirements for COVID-19.
• ATHM (38.69 +7.32%): placed on 90-day Positive Catalyst Watch at Citigroup.
• VG (18.50 +5.23%): Ericsson (ERIC) continues to work closely with the Committee on Foreign Investment in the United States as it reviews its proposed acquisition of Vonage Holdings Corp. (VG). The merger has cleared all other requisite foreign and US regulatory approval requirements, and the parties are working to conclude the regulatory process as expeditiously as possible.

Mid Cap Losers

• FTCH (7.91 -10.92%): downgraded to Neutral from Buy at UBS
• CXM (10.56 -7.24%): Chief Technology Officer sold 25,000 shares at $11.50 - $11.58 worth ~$288K.
• ETSY (74.22 -7.97%): Continues to be weakest performer in the sector, slipping into the lower half of its range from Thursday.

• GC00-USA gold settled today's session down $1.70 (0.09%) at $1,821.90/oz
• SI00-USA silver settled today's session $0.34 lower (1.58%) at $20.81/oz
• HG00 copper settled $0.02 higher (0.63%) at $3.77/lb

• The Arm Total Compute Solutions 2022 and Cadence tools provide customers with an efficient path to tapeout.
• Cadence optimized its RTL-to-GDS digital flow and delivered corresponding 5nm and 7nm RAKs for Arm Cortex-A715 and Cortex-X3 CPUs and Mali-G715 and Immortalis-G715 GPUs, making it simpler for designers to get to market faster and improve quality of results.
• Cadence verification flow lets customers improve verification throughput and achieve advanced software debug.
• The Cadence digital and verification flows were used in the development of TCS22.

Walt Disney's (DIS) shares outperform the broader markets today after the company confirmed it would reopen Shanghai Disney on June 30. DIS did reopen some areas of the park earlier this month only to close them down again due to COVID-19 concerns yesterday.

• During DIS's Q2 (Mar) earnings call in mid-May, the company estimated that closures at its Asia theme parks (i.e., Hong Kong Disneyland and Shanghai Disney) would adversely impact Q3 (Jun) operating income by up to $350 mln yr/yr. At the time, DIS commented that it did not have visibility into a reopening date for either park, setting up today's news as a positive development.
  • DIS's total operating income in Q2 for its Disney Parks, Experiences, and Products (DPEP) segment was $1.76 bln, putting the $350 mln dent at a meaningful ~20% of total DPEP operating income.
• The reopening date coincides with a softening of COVID-19 restrictions in China. Reports indicate that the region is easing its quarantine and COVID testing rules for travelers, such as cutting the isolation time for inbound travels in half to one week. Although this may still deter a larger influx of travelers, it is a step in the right direction for local businesses, especially those dependent on tourism like DIS.
• China-based Trip.com (TCOM) commented yesterday after the close that while the short-term travel environment may not seem optimistic, demand is still strong, brightening the longer-term outlook.
• Lastly, although unclear about the impact on total revenue, DIS's reopening of its Shanghai park is good news for Comcast-owned (CMCS.A) Universal Beijing Resort, which opened to the general public in September 2021.

• The meeting will be followed with a written notice in the coming days. The visit was the second from the Ministry of Environment in response to a leak of leach solution containing approximately eight kilograms of diluted cyanide at the pler mine site on June 21.
• During the implementation of these initiatives, it is expected that the pler operations will remain temporarily suspended. SSR Mining expects to implement these initiatives in a timely fashion and bring the pler operation back to full capacity in the coming weeks once Ministry of Environment Officials are satisfied with the implementation.

• Boeing (BA, 139.68 +0.96 , +0.69% ): Making seven-week highs, now about +28% higher off the mid-June lows
• Travelers (TRV, 169.475 +1.98 , +1.19% ): Testing 20-day Moving Average (169.60) as shares are on 3-day winning streak
• Home Depot (HD, 272.96 -9.73 , -3.44% ): Failing back towards last week's lows
• Salesforce (CRM, 173.25 -8.06 , -4.45% ): Pulling back to 50-day Moving Average (175.24) as shares start the week with back-to=back down days
• Nike (NKE, 104.38 -6.12 , -5.54% ): Trying to avoid falling below 100 for the first time since July 2020

Taking an early look at the options market, we found the following names that may be worth watching throughout the day for further indication of investor expectations given their options volume and implied volatility movement.

Stocks seeing volatility buying (bullish call buying/bearish put buying):

Calls:

• MS Jul 80 calls are seeing interest with 890 contracts trading vs. open int of 140, pushing implied vol up around 0 points to ~37%. The Co discussed stress test results, increased dividend, and announced a $20 bln share repurchase earlier
• WPC Jul 80 calls are seeing interest with 3320 contracts trading vs. open int of 20, pushing implied vol up around 9 points to ~44%. Wolfe Research initiated with a Peer Perform earlier
• QCOM Sep 150 calls are seeing interest with 5420 contracts trading vs. open int of 320, pushing implied vol up around 5 points to ~44%. Stock trading higher (+5%) after BofA added to US1 List. 2900 contracts traded in a single transaction

Puts:

• ZIM Jul 44 puts are seeing interest with 1090 contracts trading vs. open int of 30, pushing implied vol up around 1 points to ~85.46%. The Co will report its next earnings in August
• BYND Aug 20 puts are seeing interest with 1590 contracts trading vs. open int of 40, pushing implied vol up around 8 points to ~149%. The Co's next earnings report will be in August
• BA Jul 144 puts are seeing interest with 1250 contracts trading vs. open int of 20, pushing implied vol up around 5 points to ~58%. The Co is expected to report its next earnings in late July

Sentiment: The CBOE Put/Call ratio is currently: 0.93, VIX: (27.61, +0.66, +2.5%).
July 15 is options expiration -- the last day to trade July equity options.
*Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments. Data provided by IVolatility.com.

Treasury Auction Results

• $40 bln 7-year Treasury auction:
  • Auction results:
    • High yield: 3.280% (When-Issued: 3.259%)
    • Bid-to-cover: 2.48
    • Indirect bid: 61.9%
    • Direct bid: 20.4%
  • Average results of previous 12 auctions:
    • High yield: 1.766%
    • Bid-to-cover: 2.36
    • Indirect bid: 62.7%
    • Direct bid: 21.2%

The following are some of today's most notable small cap movers of interest ($300 mln - $2 bln market cap), ranked by % change (all stocks over 100K average daily volume).

Small Cap Gainers

• KZR (8.74 +51.04%): The Co announced positive topline results from the MISSION Phase 2 Trial evaluating zetomipzomib for the treatment of patients with lupus nephritis.
• ESTE (16.31 +11.10%): The Co announced northern Delaware basin asset acquisition for ~$627 million.
• LE (12.31 +8.36%): The Co announced $50 million share repurchase authorization.

Small Cap Losers

• CGNT (4.66 -27.49%): The Co misses by $0.89, misses on revs.
• SHEN (22.30 -12.73%): downgraded to Mkt Perform from Strong Buy at Raymond James.
• BGXX (2.53 -9.96%): The Co provides an update on the progress made on its world-class agricultural complex in Grants, New Mexico.

The market opened on a higher note to start the day. Early sentiment was driven by reports that Beijing and Shanghai had zero COVID cases for the first time since February in addition to a number of banks increasing their dividend and/or share repurchase plans after the Fed's stress test. The Dow, Nasdaq, and S&P 500 gained 1.3%, 1.0%, 1.2%, respectively.

There was a shift in trading mentality, however, after the weaker-than-expected Consumer Confidence Index for June at 10:00 a.m. ET. That report conjured stagflation worries with the Expectations Index dropping to its lowest level (66.4) since March 2013 and the year-ahead inflation expectations increasing to 8.0% from 7.5%. The three main indices sold off steadily after that report and are currently near their lows for the session.

The mega cap stocks have been an important downside driver. The Vanguard Mega Cap Growth ETF (MGK) is down 2.2% versus the Invesco S&P 500 Equal Weight ETF (RSP) which is down by a more modest 0.3%.

With the mega caps dragging down the three main indices, the small and mid cap stocks are faring better. The Russell 2000 (-0.6%) and S&P Mid Cap 400 (-0.3%) are outperforming the broader market today.

The S&P 500 energy sector (+2.4%) is the only sector showing sizable gains. It's benefitting from higher oil prices ($111.68, +2.11, +2.0%), which are flowing from the reopening push in China and a Reuters report indicating Saudi Arabia and the UAE have limited spare capacity to boost output.

The other sectors trading in the green today are the utilities (+0.3%) and financials (+0.1%).

The biggest laggards are the consumer discretionary (-2.5%), information technology (-2.0%), communication services (-1.9%), and health care (-1.1%) sectors.

Nike (NKE 105.37, -5.13, -4.6%) has been a key drag on the consumer discretionary sector following its fiscal Q4 earnings report and soft fiscal Q1 revenue guidance, but Amazon.com (AMZN 109.08, -4.14, -3.6%) and Tesla (TSLA 709.36, -25.27, -3.5%) have been the most influential drags.

Reviewing today's economic data:

• The Conference Board's Consumer Confidence Index dropped to 98.7 in June (Briefing.com consensus 101.0) from a downwardly revised 103.2 (from 106.4) in May. This is the lowest reading since February 2021 and compares to 128.9 in the same period a year ago.
  • The key takeaway from the report is the sharp drop in consumers' expectations, which was driven primarily by inflation concerns. The Expectations Index sits at a level that is a likely portent of weaker growth in the second half of the year and raises the risk of recession by year end.
• The Advance report for International Trade in Goods in May showed a deficit of $104.3 billion, versus a revised $106.7 billion (from $105.9 billion) in April. The Advance report for Retail Inventories in May rose 1.1% versus the prior month's increase of 0.7%. The Advance report for Wholesale Inventories in May rose 2.0% versus April's revised increased of 2.3% (from 2.1%).
• The S&P Case-Shiller Home Price Index for April was 21.2% (Briefing.com consensus 21.1%) compared to the prior revised reading of 21.1% (from 21.2%). The FHFA Housing Price Index for April was 1.6% compared to the prior revised reading of 1.6% (from 1.5%).

The stock market has surrendered its opening gain amid losses in six sectors, including the influential consumer discretionary sector (-2.5%), which sits at the bottom of today's leaderboard.

Key factors driving today's performance include:

• Weak leadership from top components Amazon (AMZN 108.56, -4.66, -4.1%) and Tesla (TSLA 710.49, -24.27, -3.3%) as they pull back from last week's strong rally. The two names are now down a respective 6.8% and 3.6% for the week after rallying a respective 9.6% and 13.4% last week.
• Disappointing showing from NIKE (NKE 105.61, -4.89, -4.4%) as cautious guidance for Q1 outweighs a Q4 beat.
• Weak Consumer Sentiment report for June fueling renewed worries about stagflation.
• Outperformance among casino names amid news that China is reducing the quarantine requirement for international visitors.

Notable movers:

• Etsy (ETSY 76.10, -4.55, -5.6%): weakest performer in the sector, slipping into the lower half of its range from Thursday.
• NIKE (NKE 105.61, -4.89, -4.4%): rallied to its best level in nearly two weeks before turning negative. Company beat Q4 EPS expectations on in-line revenue, issued weaker than expected guidance for Q1, and authorized an $18 bln buyback. 
• Amazon (AMZN 108.56, -4.66, -4.1%): revisiting its opening level from Wednesday.
• Tesla (TSLA 710.49, -24.27, -3.3%): slipping past its opening level from Friday after surrendering an early gain.
• Home Depot (HD 273.94, -8.75, -3.1%): slipping to the midpoint of its range from Thursday.
• D.R. Horton (DHI 118.23, -3.70, -3.0%): falling from its best level in nearly three weeks after finding resistance near its 50-day moving average (124.53).
• Best Buy (BBY 70.20, -1.94, -2.7%): revisiting its opening level from Thursday.
• Ulta Beauty (ULTA 391.91, -8.58, -2.1%): falling past its 50-day moving average (396.97) toward its 200-day moving average (386.64).
• McDonald's (MCD 245.41, -1.62, -0.7%): falling past its 50-day moving average (245.47) after surrendering an earlier gain and finding resistance near its 200-day moving average (248.90).
• Royal Caribbean (RCL 41.39, +1.06, +2.6%): hit a two-week high before narrowing its gain.
• Wynn Resorts (WYNN 61.18, +3.49, +6.0%): rallying to its best level in over two weeks with its 50-day moving average (64.60) looming above.
• Las Vegas Sands (LVS 35.35, +2.18, +6.6%): best performer in the sector, rallying past its 50-day moving average (34.18) to its best level in nearly three weeks.

• The latest pilot will span six-plus weeks during July and August and take place along the I-45 corridor between Houston and Dallas, the location of J.B. Hunt and Waymo's original pilot nearly one year ago. It will be the first in-depth transportation of home furnishings retail freight between J.B. Hunt and Waymo Via (the company's autonomous Class 8 trucking unit powered by the Waymo Driver technology).
• Throughout the multi-week pilot, J.B. Hunt; Waymo, a subsidiary of Alphabet (GOOG), and Wayfair will monitor and evaluate data relating to delivery logistics, loading and unloading freight, autonomous performance, and factors influencing the overall driving and non-driving experience. The pilot will use J.B. Hunt 360 technology to automate several processes such as check calls and transactions to improve driving efficiency. Autonomous specialists - a commercially licensed driver and a software technician -- will be in the cab for the duration of each trip to monitor the Waymo Driver's operations.
• As part of their long-term collaboration, J.B. Hunt and Waymo are exploring technology integration opportunities with J.B. Hunt 360. For example, the J.B. Hunt 360box drop-and-hook freight program that includes more than 12,000 available trailers has the potential to provide a near-term, efficient solution for shippers that would make autonomous driving technology available in the digital freight marketplace for the first time.

Economic Data Summary:

• May Adv. Intl. Trade in Goods -$104.3 bln; Prior was revised to -$106.7 bln from -$105.9 bln
• May Adv. Retail Inventories 1.1%; Prior 0.7%
• May Adv. Wholesale Inventories 2.0%; Prior was revised to 2.3% from 2.1%
• April FHFA Housing Price Index 1.6%; Prior was revised to 1.6% from 1.5%
• April S&P Case-Shiller Home Price Index 21.2% (Briefing.com consensus 21.1%); Prior was revised to 21.1% from 21.2%
• June Consumer Confidence 98.7 (Briefing.com consensus 101.0); Prior was revised to 103.2 from 106.4
  • The key takeaway from the report is the sharp drop in consumers' expectations, which was driven primarily by inflation concerns. The Expectations Index sits at a level that is a likely portent of weaker growth in the second half of the year and raises the risk of recession by year end.

Fed/Treasury Events Summary:

• New York Fed President John Williams (voting FOMC member) CNBC interview this morning
  • Mr. Williams said: Recession is not his base case, but he is expecting growth to slow "quite a bit". He is expecting 1-1.5% GDP growth for the year, financial conditions have tightened, and he expects the Fed to get into restrictive territory next year on interest rates to bring inflation down.

Upcoming Economic Data:

• Weekly MBA Mortgage Applications Index due out Wednesday at 7:00 ET (Prior 4.2%)
• Q1 GDP - Third Estimate due out Wednesday at 8:30 ET (Briefing.com consensus -1.5%; Prior -1.5%)
• Q1 GDP Deflator - Third Estimate due out Wednesday at 8:30 ET (Briefing.com consensus 8.1%; Prior 8.1%)

Upcoming Fed/Treasury Events:

• Fed's Mester June 29 at 6:30 ET
• Fed Chairman Jerome Powell June 29 at 9:00 ET
• Fed's Bullard June 29 at 13:05 ET

• Lands' End (LE +11%) is making a huge move today. The catalyst is a share buyback announcement. Normally you do not see such a big move based just on a share buyback authorization. However, what stands out here is the size of the authorization at $50 mln. When compared to LE's $425 mln market cap, that is a whopping 12% of shares outstanding.
• Lands' End has been struggling in recent quarters, including posting a loss in Q1 (Apr) and another loss is expected in Q2 (Jul). LE has been hurt by supply chain delays, which impacts the flow of new styles and colors. In addition, LE has been hurt by an industry-wide slowdown in online traffic, particularly in the apparel category. Most of LE's sales are made online. Inflation for food and fuel also has impacted discretionary spending for many consumers.
• The company expects to report EPS of $0.60-0.88 this year. After losses in Q1 and another expected in Q2, that points to some robust EPS results in Q3 and especially in the Q4 holiday period. At the mid-point of EPS guidance, LE trades at a P/E of 17.3x, which is still pretty expensive. However, analysts are expecting a big EPS increase next year, so the stock is pretty cheap on a forward P/E basis.
• Regardless, it is clear management is frustrated with the stock performance. However, it has slowly started to tick higher over the past couple of weeks.

• Impinj releases the Impinj E910 RAIN RFID reader chip for next-generation enterprise-grade readers that can quickly and reliably discover and engage a high-volume of connected items such as retail apparel, pallets, airline baggage, and automobile parts.
• The Impinj E910 reader chip delivers the industry-leading performance, low power consumption, and ease of use needed for loss prevention, inventory management, and supply-chain automation solutions.

• Genasys received the order under the Army's Acoustic Hailing Device (AHD) Program of Record.

Treasury Auction Preview

• $40 bln 7-year Treasury note auction (results at 13:00 ET)
  • Prior auction results:
    • High yield: 2.777%
    • Bid-to-cover: 2.69
    • Indirect bid: 77.9%
    • Direct bid: 15.9%
  • Average results of previous 12 auctions:
    • High yield: 1.766%
    • Bid-to-cover: 2.36
    • Indirect bid: 62.7%
    • Direct bid: 21.2%

The stock market had a robust start to the day. Shortly after the start of trading, the Dow, Nasdaq, and S&P 500 were up 1.3%, 1.0%, and 1.2%, respectively, bolstered by reports that Beijing and Shanghai reported zero COVID cases for the first time since February, and a number of banks increasing their dividend and/or share repurchase plans following the Fed's stress test.

Those gains, however, quickly vanished in the wake of a weaker-than-expected Consumer Confidence Index for June at 10:00 a.m. ET. That report conjured stagflation worries with the Expectations Index dropping to its lowest level (66.4) since March 2013 and the year-ahead inflation expectations increasing to 8.0% from 7.5%.

The Treasury market had a more muted reaction to the report. It was already a bit weaker for the session, but didn't move much after the data. Currently, the 2-yr note yield is up one basis point to 3.13% and the 10-yr note yield is up three basis points to 3.22% after running into resistance at 3.25% in the overnight trade.

Once again, the energy sector (+2.8%) is a winning standout. It is benefitting from higher oil prices ($110.64, +1.08, +1.0%), which are flowing from the reopening push in China and a Reuters report indicating Saudi Arabia and the UAE have limited spare capacity to boost output.

It should be noted that the energy sector has been the hardest-hit sector this month. Entering today, it was down 15.0% for the month.

Separately, the mega-cap stocks continue to weigh heavily on the major indices. The Vanguard Mega-Cap Growth ETF (MGK) is down 1.4%, but the Invesco S&P 500 Equal Weight ETF (RSP) is flat. In fact, market breadth shows advancers leading decliners by a 2-to-1 margin at the NYSE.

Losses among the mega-cap stocks are holding back the heavily-weighted consumer discretionary (-1.9%), information technology (-1.3%), and communication services (-0.9%) sectors.

The Russell 2000 is up 0.4%; the Dow Jones Industrial Average is down 0.1%; the S&P 500 is down 0.4%; and the Nasdaq Composite is down 1.1%.

• Reiterates recommendation that stockholders vote FOR the merger agreement with Frontier on the WHITE proxy card ahead of the special meeting of Spirit stockholders on June 30, 2022.
• Latest JetBlue offer does not address serious regulatory concerns or deliver greater value.
• Frontier merger provides opportunity for significantly more value of at least $50 per share and greater certainty of completion.

Six sectors display gains with energy (+3.1%) holding the early lead by a wide margin.

Key factors driving today's performance include:

• Continuation of yesterday's outperformance as the sector rebounds from a weak start to the month. The group is already up 5.9% for the week, but still down 11.9% for the month, which leaves the sector at the bottom of the June leaderboard.
• Support from a higher price of oil. WTI crude remains up $0.43, or 0.4%, at $110.00/bbl, after marking an early high at $111.72. Crude climbed above its 50-day moving average (110.27) in early trade, but is now back below that level.

Notable movers:

• Occidental Petroleum (OXY 61.65, +2.75, +4.7%): best performer in the sector, rallied above its 50-day moving average (62.14) before slipping back below that mark. Berkshire Hathaway (BKR.B 278.59, +0.19, +0.1%) disclosed the purchase of $44 mln worth of shares last week.
• Diamondback Energy (FANG 130.21, +5.82, +4.7%): rising to a one-week high.
• Marathon Oil (MRO 24.16, +1.04, +4.5%): rising to a one-week high.
• ConocoPhillips (COP 96.15, +3.92, +4.3%): rising to a one-week high after finding support near its 200-day moving average (87.21) last week.
• Hess (HES 111.46, +4.50, +4.2%): approached its 50-day moving average (113.77) before slipping back below that mark.
• Exxon Mobil (XOM 91.78, +2.75, +3.1%): rising back above its 50-day moving average (91.40). CEO predicted increased investment in fossil fuel production, according to FT.
• Williams Companies (WMB 31.51, +0.92, +3.0%): bouncing off its 200-day moving average (30.49) to its best level in two weeks.
• Valero (VLO 115.43, +3.19, +2.8%): rising toward its 50-day moving average (121.99).
• Kinder Morgan (KMI 17.20, +0.37, +2.2%): approached its 200-day moving average (17.56) before narrowing its gain.
• Baker Hughes (BKR 30.05, +0.61, +2.1%): rising to a one-week high.
• Chevron (CVX 150.49, +2.92, +2.0%): weakest performer in the sector, touched a one-week high before narrowing its gain.

Taking an early look at the options market, we found the following names that may be worth watching throughout the day for further indication of investor expectations given their options volume and implied volatility movement.

Stocks seeing volatility buying (bullish call buying/bearish put buying):

Calls:

• MS Jul 81 calls are seeing interest with 1120 contracts trading vs. open int of 180, pushing implied vol up around 3 points to ~41%. The Co discussed stress test results, increased dividend, and announced a $20 bln share repurchase earlier

Puts:

• ZIM Jul 44 puts are seeing interest with 1070 contracts trading vs. open int of 30, pushing implied vol up around 8 points to ~92%. The Co will report its next earnings in August.

Sentiment: The CBOE Put/Call ratio is currently: 0.80, VIX: (26.57, -0.38, -1.41%).
July 15 is options expiration -- the last day to trade July equity options.
*Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments. Data provided by IVolatility.com.

The major indices opened on a higher note. The Nasdaq Composite, which lagged the other three indices yesterday, sits in third place with a gain of 0.7%.

An early look at the 11 S&P 500 sectors shows every sector trading up with the cyclical sectors leading the outperformers, indicating a possible ease in growth concerns for the time being. Energy (+3.4%), financials (+1.9%), industrials (+1.6%), and materials (+1.4%) lead with the defensive-oriented health care (+0.3%) and consumer staples (+0.6%) sectors near the rear of the pack. 

The 10-yr note yield is up two basis points to 3.22%. The 2-yr note yield is up one basis point to 3.13%.

Just in, the Consumer Confidence Index for June was 98.7 (Briefing.com consensus 101.0) versus the prior revised reading of 103.2 (from 106.4).

• Gainers: TCOM +11.23% IDCC +1.49% DLTR +0.83% SNX +0.46%
• Decliners: JEF -0.36% NKE -2.92% CNXC -3.30% EPAC -5.97% CGNT -29.28%

• The Arizona Cardinals Football Club today announce Shift4 (FOUR) as a proud payment processing partner. Shift4 will process payments for all Cardinals ticketing transactions at State Farm Stadium, including Super Bowl LVII in February 2023, through an integration with SeatGeek.
• E-ONE, a subsidiary of REV Group (REVG), announces it is building an all-electric Vector Rescue Decon truck for the City of Varennes Fire Safety Service in Quebec; the first Rescue truck using the first fully electric North America- style fire truck design.
• Tyler Technologies (TYL) has signed an agreement in Lima, Ohio. The agreement is with the Lima Police Department for Tyler's Enterprise Public Safety suite, powered by New World, and the Lima Municipal Court, Clerk of Court and Adult Probation department for Tyler's Enterprise Justice suite, powered by Odyssey.

The market is poised to open slightly higher today. The S&P 500 futures are up 13 points and are trading 0.3% above fair value. The Nasdaq 100 futures are up 36 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are up 153 points and are trading 0.6% above fair value.

Heading into the open, the 2-yr note yield is down one basis point to 3.11%. The 10-yr note yield is up four basis points to 3.23%.

Separately, the S&P Case-Shiller Home Price Index for April was 21.2% (Briefing.com consensus 21.1%) compared to the prior revised reading of 21.1% (from 21.2%). The FHFA Housing Price Index for April was 1.6% compared to the prior revised reading of 1.6% (from 1.5%).

At 10:00 ET, the Consumer Confidence Index for June (Briefing.com consensus 101.0; prior 106.4) will be released.

• UP and HTZ announced a new strategic partnership to give Wheels Up members access to Hertz's industry-leading electric vehicle offerings and new, premium benefits.
• Wheels Up members have access to a variety of high-end vehicles, including Tesla and Polestar models from the largest rental fleet of electric vehicles in North America. The EV models are available for rent from Hertz at 111 private airports, with plans to expand to more than 500 private airports in the coming months. Members also receive complimentary President's Circle top-tier status in the award-winning Hertz Gold Plus Rewards loyalty program. President's Circle is Hertz's highest loyalty membership tier and includes an elevated selection of vehicles, guaranteed upgrades, dedicated customer support and more bespoke benefits.
• This partnership is the latest step by Wheels Up in its efforts to expand its product offerings and provide a seamless first- to last-mile travel solution for its members and customers. With the added benefit of providing members access to Hertz's fleet of EV models, the partnership complements Wheels Up's carbon offset program, allowing members to reduce their carbon footprint on the ground and in the air.

• PFS, a premier eCommerce order fulfillment provider and business unit of PFSweb (PFSW), has launched a new U.S. order fulfillment operation for Tubby Todd.
• Emerson (EMR) has been selected by Albioma to help transition its coal-fired Bois Rouge plant to 100% renewable energy. As part of Albioma's wider mission to transition all of its existing fossil fuel plants to renewable energy, Emerson's automation systems and software will enable the coal-fired power station to convert to biomass feedstock.
• AMD (AMD) announces that the Versal AI Core series, with AMD AI Engine technology, has been selected by Canon for its Free Viewpoint Video System expected to revolutionize the viewing experience for live sport broadcasts and webcasts. Versal AI Core devices deliver powerful machine learning-based video processing at the edge for Canon camera systems.
• SentinelOne (S) announces a new integration with Torq, a no-code security automation platform. The combination of SentinelOne and Torq allows security teams to accelerate response time, reduce alert fatigue, and improve overall security posture.
• Micron Technology (MU) is shipping the world's first 176-layer NAND SATA SSD designed for data center workloads. The Micron 5400 SATA SSD is the most advanced data center SATA SSD available. Built on a proven 11th generation SATA architecture, the Micron 5400 SSD enables broad use cases, delivers significantly better performance than traditional hard disk drives, and extends the life of SATA platforms.

• Indianapolis-based Community Health Network and GRAIL (ILMN) announced a partnership to offer Galleri, GRAIL's multi-cancer early detection blood test, to individuals at Community Health Network's sites of care. Community Health Network, central Indiana's leading integrated healthcare system with more than 200 sites of care, will be the first healthcare system to offer the Galleri test to patients in its area.
• Stemtech Corporation (STEK) announced that the Company increased independent business partner recruiting by 38% for the period from April 1, 2022 through June 20, 2022, as compared to the same period last year. Independent business partners include distributors, customers, wholesale buyers, business builders and VIP Customers.

• CF Acquisition Corp. VI (CFVI) merger partner Rumble announced a exclusive partnership with Right Side Broadcasting Network to manage advertisements, including host-read "live" advertisements, for the network through the end of 2022. As part of the partnership, RSBN will stream the featured portions of its live political coverage exclusively on Rumble, including its coverage of rallies by 45th President Donald J. Trump.
• JetBlue Travel Products, a subsidiary of JetBlue Airways (JBLU), announced a multi-year partnership extension with Allianz Partners USA (ALIZY), bolstering their relationship for the busy summer season and beyond. The partnership provides JetBlue customers the ability to protect both their flights and vacation packages with travel insurance. The contract re-affirms Allianz Partners as the official travel insurance provider of JetBlue Airways and JetBlue Travel Products.
• Tapestry's (TPR) Coach introduces the Coach x Tom Wesselmann collection with a global campaign starring Hari Nef, Kai-Isaiah Jamal and Manami Kinoshita, photographed by Juergen Teller.

• Co  announced that it has completed the $25 million share repurchase program authorized by its Board of Directors in August of 2021. Through this program, the company repurchased and retired over 1.8 million shares of common stock in aggregate, or approximately 6% of shares outstanding, at an average price of $13.67 per share.
• Additionally, the company's Board of Directors has authorized an additional share repurchase program of up to $25 million worth of shares of ChannelAdvisor common stock through June 30, 2023. This timeframe may be extended or shortened by the Board of Directors. Repurchases, if any, will be made from time-to-time on the open market at prevailing prices or in negotiated transactions off the market.

• Novant Health, Magellan Rx Management, and Cardinal Health (CAH) began long-range drone deliveries in North Carolina. Powering this on-demand delivery system is Zipline, the global leader in instant logistics.
• Guidehouse, a leading global provider of consulting services to public sector and commercial clients, announces a strategic alliance with Palantir Technologies (PLTR). The partnership will combine Guidehouse's next generation consulting services with Palantir's cutting-edge Foundry software platform to help clients outwit complexity.
• The U.S. Department of Health and Human Services (HHS) has awarded a joint $90 million, five-year agreement to CITI, the software services and product company, and C3 AI (AI), the Enterprise AI application software company, through its partnership with Carahsoft.
• Skechers (SKX) announced that the world's third largest athletic lifestyle footwear brand has opened its biggest East Coast retail destination in New Jersey. Centered around The Comfort Technology Company and its many innovations, the new nearly 22,000-square-foot superstore at The Mills at Jersey Gardens will showcase the brand's renowned styles and latest innovations for men, women and children.

• Starting today, the channels will be available for users to access through The Roku Channel's Live TV Guide. Through the partnership, NBCUniversal Local will bring local news channels from its NBC stations in major markets around the United States, including New York, Los Angeles, Chicago, Philadelphia, Dallas/Fort Worth, Washington DC, Hartford (CT), and South Florida, to The Roku Channel. Additional NBCUniversal Local channels will be added to The Roku Channel's Live TV Guide in the coming months.
• The partnership with NBCUniversal Local marks the first time that local news programming will be available for users on The Roku Channel.

• Remark Holdings (MARK) announced that Robert Gatchell would be joining Remark as Senior Executive Vice President of Operations, where he will provide leadership for the emerging security platform for Remark and help define strategic missions for the company in the realm of emergency preparedness and risk-based solutions.
• Nuvve Holding (NVVE) and Switch are partnering to integrate Nuvve's vehicle-to-grid (V2G) GIVeTM platform with Switch's charging management platform for operations and maintenance.

• Kevin Wampler will transition out of his role as Chief Financial Officer upon the appointment of a successor. Mr. Wampler will remain with the Company as an advisor until April 2023 to ensure a smooth transition.
• Chief Legal Officer and Corporate Secretary William Old, Chief Operating Officer Thomas O'Boyle, Chief Strategy Officer David Jacobs and Chief Information Officer Andy Paisley are no longer with the Company. Searches for successors are underway, and the Company is in advanced discussions with several candidates for certain positions.
• Dollar Tree reaffirms its fiscal 2022 outlook provided on May 26, 2022 - EPS of $7.80 -8.20 vs. $8.18 S&P Capital IQ Consensus; revs of $27.76 -28.14 bln vs. $28.12 bln S&P Capital IQ Consensus.

The S&P 500 futures are up 11 points and are trading 0.3% above fair value. The Nasdaq 100 futures are up 25 points and are trading 0.2% above fair value.

Equity indices in the Asia-Pacific region ended Tuesday on a higher note after overcoming a weak start. China reduced the required quarantine time for international travelers. China's National Development and Reform Commission acknowledged challenges associated with stabilizing prices and the job market. There was growing speculation that the Bank of Japan will struggle to maintain its ultra-loose policy in the face of global inflation. South Korea's Prime Minister called on his government to come up with a plan to stabilize inflation.

• In economic data:
  • Japan's May BoJ Core CPI 1.5% yr/yr, as expected (last 1.4%)

---Equity Markets---

• Japan's Nikkei: +0.7%
• Hong Kong's Hang Seng: +0.9%
• China's Shanghai Composite: +0.9%
• India's Sensex: UNCH
• South Korea's Kospi: +0.8%
• Australia's ASX All Ordinaries: +0.9%

Major European indices trade on a firmly higher note. European Central Bank President Lagarde repeated that the ECB is planning a 25-bps rate hike in July, followed by another hike in September. The ECB is reportedly working on a scheme to cap the borrowing costs of highly indebted countries. The U.K.'s House of Commons voted in favor of overriding elements of the Northern Ireland protocol.

• In economic data:
  • Germany's July GfK Consumer Climate -27.4 (expected -27.6; last -26.2)
  • France's June Consumer Confidence 82 (expected 84; last 85)
  • Italy's April Industrial Sales 2.7% m/m (last 2.5%); 22.0% yr/yr (last 21.6%)

---Equity Markets---

• STOXX Europe 600: +0.6%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: +1.2%
• France's CAC 40: +1.1%
• Italy's FTSE MIB: +1.1%
• Spain's IBEX 35: +1.3%

• The Company intends to use the net proceeds from the ATM Offering for (i) research and development of next-generation electric vehicle technologies including technologies for BEVs, smart cabin, and autonomous driving, (ii) development and manufacture of future platforms and car models, and (iii) working capital needs and general corporate purposes.

• New Production of Direct Reduced (DR)-grade Pellets: U. S. Steel plans to break ground in Fall 2022 at one of its two Minnesota Ore Operations facilities, Keetac or Minntac, to construct a system dedicated to producing DR-grade pellets. This will enable one of the Company's existing pelletizing plants to not only create DR-grade pellets but also maintain the optionality to continue producing blast furnace-grade pellets. The Company does not expect the approximately $150 million DR-grade pellet investment to change the 2022 capital spending budget and will continue to prudently manage future capex in-line with its strategic priorities. DR-grade pellets are a critical feedstock for ironmaking in a direct reduced iron (DRI) or hot briquetted iron (HBI) process that ultimately supplies EAF steelmaking. Upon completion, the Company would have the option to sell the new pellets to third-party DRI / HBI producers or use them to feed a potential future DRI or HBI facility of its own. The DR-grade pellets produced would be a new product line for U. S. Steel. The investment and expected timeline are subject to state and local support and receipt of regulatory permitting.
• Non-Binding Letter of Intent: Progressing towards an agreement for U. S. Steel to supply SunCoke (SXC) with iron ore to produce pig iron: U. S. Steel signed a Non-Binding Letter of Intent with SunCoke Energy, Inc., a raw material processing and handling company, setting forth the preliminary terms for a potential arrangement under which SunCoke would acquire the two blast furnaces at Granite City Works and build a 2 million ton granulated pig iron production facility. Upon completion of the proposed facility, SunCoke would supply U. S. Steel access to 100% of the pig iron production for the next ten years.

• PBIO will focus on advanced technology in the biochemical industry and creating and formulating new compounds that can change the outcomes of healthcare.
• ProPhase Labs also announced that it has executed a license agreement with Global BioLife, Inc. (Global BioLife), a wholly-owned subsidiary of DSS, Inc., for Equivir and Equivir G, proprietary compounds developed by Global Research and Discovery Group (GRDG), Global BioLife's scientific research partner, which have shown to be potential treatments to limit the occurrence and or reduce the risk and severity of viral outbreaks.
• Under the terms of the agreement, ProPhase Labs has obtained exclusive rights worldwide to develop and commercialize Equivir and Equivir G.
• The agreement between ProPhase Labs and Global BioLife comes just prior to the commencement of human clinical trials for Equivir. ProPhase is currently in contact with leading clinical research organizations to initiate these trials in the coming months.

• Co issues upside guidance for Q2 (Jun), sees Q2 (Jun) revs of $120-124 mln from $114-124 mln vs. $117.45 mln two analyst estimate.
• The company also announced it closed a license agreement covering consumer electronics and other products. The revised guidance includes approximately $98 million to $100 million of recurring revenue. The remaining revenue relates to past sales driven by the above-noted agreement as well as connected automobile license agreements with GM and Ford Motor Company through a licensing platform. This revenue guidance does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any arbitration or dispute resolutions that may occur, during the balance of second quarter 2022.

• Handmade Design was founded in 2015 with a core value built around "learning by doing together". This core value is reflected in the company's approach to researching to discover clients' true needs, aligning these insights with business goals and then allowing them to inform every step of the agile process from design to delivery. Today, Handmade has about 50 employees based primarily in So Paulo, Brazil with expertise across the design discipline and a strong capacity to perform strategic work in remote settings. Handmade Design has delivered more than 100 solutions to address the business challenges of large companies in Brazil such as Petlove, iFood, Santander and Ita.
• The acquisition is expected to close in the third quarter of Thoughtworks' fiscal year 2022, subject to customary closing conditions. Financial details are not being disclosed.

• Intralot do Brasil, the lottery operator for over a decade for Loteria Mineira, the official lottery in Brasil's second largest state, Minas Gerais. The agreement with Intralot do Brasil, owned by SAGA Business Intelligence, after acquiring the local company and operations in 2021 from Intralot S.A, marks NeoGames' entry into the Brazilian market with an end-to-end solution of iLottery and online Sports Betting. The agreement is the Company's first cooperation with BtoBet, its recently acquired Sports Betting solution as part of Aspire Global.
• The comprehensive digital solution is expected to build on the existing, successful retail lottery and digital keno program in the state. NeoGames will provide Intralot do Brasil with its industry leading NeoSphere platform, a variety of powerful eInstant games from the NeoGames Studio tailored to the local market, and a wide range of services. The solution will also include a complete online Sports Betting solution and services from Aspire Global's BtoBet, customized for the Brazilian market.

• Reports Q3 (May) earnings of $0.16 per share, excluding non-recurring items, $0.12 worse than the S&P Capital IQ Consensus of $0.28; revenues rose 6.1% year/year to $151.9 mln vs the $155.1 mln S&P Capital IQ Consensus.
• Co issues lowered guidance for FY22, sees FY22 revs of $560-570 mln from $570-580 mln vs. $576.83 mln S&P Capital IQ Consensus.
• "As we move into the last quarter of fiscal 2022, we believe we are well positioned within our markets to further capitalize on improving demand. We are also keenly focused on executing the initiatives in our ASCEND transformation program to unlock significant opportunities for value creation across the organization, which we expect will generate incremental adjusted EBITDA of $40 to $50 million and will cost $60 to $65 million over the life of the program. Should we begin to see markets soften, we expect our transformation efforts, which are already underway, will position us well. We continue to proactively manage inflationary pressures and supply chain issues that impact our business and expect these challenges to persist for the foreseeable future. Due to the ongoing impact of the stronger US dollar, we have refined our full year net sales guidance range to $560 to $570 million from $560 to $580 million. In addition, we expect incremental adjusted EBITDA margins of 35% to 45% excluding the impact of foreign currency and the incremental receivable reserve in the third quarter related to a MENAC agent."

The S&P 500 futures are up 9 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 59 points and are trading 0.5% above fair value.

Just in, the Advance report for International Trade in Goods in May showed a deficit of $104.3 billion, versus a revised $106.7 billion (from $105.9 billion) in April. The Advance report for Retail Inventories in May rose 1.1% versus the prior month's increase of 0.7%. The Advance report for Wholesale Inventories in May rose 2.0% versus April's revised increased of 2.3% (from 2.1%).

• Steel Dynamics owns 55 percent of the joint venture, with Aymium owning the remaining 45 percent. The entity will operate under the name SDI Biocarbon Solutions, LLC. Initial plans for the joint venture include the construction and operation of a biocarbon production facility to supply Steel Dynamics' electric arc furnace steel mills with a renewable alternative to fossil fuel carbon using Aymium's patented technology.
• The initial facility's production capability is expected to be more than 160,000 metric tons per year, for an estimated capital investment of $125 million to $150 million. The facility is planned to begin operations late 2023.

• GXO Logistics (GXO) has expanded warehouse operations with BBQGuys more than 300% thanks to the ongoing collaboration that started in August 2021. The Baton Rouge-based company, a leading ecommerce company specializing in grills and other outdoor living products, now occupies more than 170,000 square feet of warehouse space at GXO Direct facilites in San Bernardino, Calif, and Mechanicsburg, Penn., helping it provide best-in-class service to more customers coast-to-coast. To watch leaders from BBQGuys discuss the critical role logistics plays in their company's growth plans.
• Marqeta (MQ) announces a significant expansion of its credit platform with a new, intuitive dashboard and over 40 new credit APIs that enable customers to design, test, and launch differentiated credit card experiences. Marqeta's credit platform provides customers with greater flexibility and control than legacy credit solutions, with customers also having the option to leverage First National Bank of Omaha's leading program management and banking capabilities alongside these new features.
• Wejo Group Limited (WEJO) announces a collaboration with Ford Motor Company (F) in Europe which gives Wejo access to personalized connected vehicle data from Ford vehicles across the continent. This supports the provision of data and insights to insurance providers that leverage user-based intelligence for end-to-end insurance. Insurance providers, in turn, can leverage the data to better understand driving behaviors and to drive efficiencies, including by minimizing fraud.
• Bayer (BAYRY) unveils Calantic Digital Solutions, a new cloud-hosted platform delivering access to digital applications, including AI-enabled programs, for medical imaging. The offering contains tools to help triage critical patient findings for expedited review, improve lesion detection and automate tasks. With this launch, Bayer expands its radiology portfolio beyond contrast media, devices, software and services, with the ultimate goal of supporting healthcare professionals to aid in the detection of disease patterns throughout the patient's journey.

• VMware (VMW) unveiled VMware vSphere+ and VMware vSAN+ to help organizations bring the benefits of the cloud to their existing on-premises infrastructure with no disruption to their workloads or hosts. Introduced at VMworld 2021 as a technology preview known as Project Arctic, these new offerings will help customers enhance their infrastructure by providing centralized cloud-based infrastructure management, integrated Kubernetes, access to new hybrid cloud services, and a flexible subscription model.
• CN (CNI) announced plans to invest approximately $85 million in Wisconsin in 2022. This includes investments in technology, capacity, rolling stock units and company-wide decarbonization initiatives, as well as network improvements. These investments will power sustainable growth and ensure the continued safe movement of goods in Wisconsin and everywhere on CN's transcontinental network.
  

Adding to Recent Losses

• U.S. Treasuries are on track for an extension of yesterday's losses with longer tenors expected to show some relative weakness in the early going. Treasury futures climbed last evening, reaching their best levels amid early pressure on Asian equity markets. However, the early gains in Treasury futures faded as the night went on and global equity markets rallied, encouraged in part by news that China is reducing the required quarantine time for international travelers. Treasury futures reached their lows during the past hour, followed by a modest rebound. Crude oil is seeking its third consecutive gain after reclaiming its 50-day moving average (110.29) while the U.S. Treasury will cap this week's note auction slate with a $40 bln 7-yr note sale. The U.S. Dollar Index is up 0.2% at 104.12.
• Yield Check:
  • 2-yr: -1 bp to 3.11%
  • 3-yr: +2 bps to 3.23%
  • 5-yr: +2 bps to 3.28%
  • 10-yr: +5 bps to 3.24%
  • 30-yr: +3 bps to 3.34%

• News:
  • China's National Development and Reform Commission acknowledged challenges associated with stabilizing prices and the job market.
  • South Korea's Prime Minister called on his government to come up with a plan to stabilize inflation.
  • Moody's affirmed Australia's Aaa rating with a Stable outlook.
  • European Central Bank President Lagarde repeated that the ECB is planning a 25-bps rate hike in July, followed by another hike in September.
  • The U.K.'s House of Commons voted in favor of overriding elements of the Northern Ireland protocol.
  • Japan's May BoJ Core CPI was up 1.5% yr/yr, as expected (last 1.4%).
  • Germany's July GfK Consumer Climate fell to -27.4 from -26.2 (expected -27.6).
  • France's June Consumer Confidence fell to 82 from 85 (expected 84).
  • Italy's April Industrial Sales rose 2.7% m/m (last 2.5%), increasing 22.0% yr/yr (last 21.6%).
• Commodities:
  • WTI Crude: +1.6% to $111.36/bbl
  • Gold: +0.1% to $1825.70/ozt
  • Copper: +1.7% to $3.824/lb
• Currencies:
  • EUR/USD: -0.2% to 1.0562
  • GBP/USD: -0.3% to 1.2235
  • USD/CNH: +0.2% to 6.7009
  • USD/JPY: +0.4% to 135.98
• Data out Today:
  • 8:30 ET: May advance goods trade deficit (prior -$105.90 bln), May advance Retail Inventories (prior 0.7%), May advance Wholesale Inventories (prior 2.1%)
  • 9:00 ET: April FHFA Housing Price Index (prior 1.5%) and April S&P Case-Shiller Home Price Index (Briefing.com consensus 21.1%; prior 21.2%)
  • 10:00 ET: June Consumer Confidence (Briefing.com consensus 101.0; prior 106.4)
• Treasury Auctions:
  • 13:00 ET: $40 bln 7-yr Treasury note auction results

• Silicon Motion Technology (SIMO) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to the previously announced agreement under which MaxLinear, Inc. (MXL) will acquire Silicon Motion in a cash and stock transaction in which each American Depositary Share (ADS) of Silicon Motion, which represents four ordinary shares of Silicon Motion, will receive $93.54 in cash and 0.388 shares of MaxLinear common stock, and each ordinary share of Silicon Motion will receive $23.385 in cash and 0.097 shares of MaxLinear common stock.

• Air Products (APD) and Gunvor Petroleum Rotterdam, have signed a joint development agreement for an import terminal in Rotterdam. The agreement responds to the accelerating demand for green energy sources to meet climate objectives and the need to diversify energy sources. The import terminal is expected to provide green hydrogen to the Netherlands in 2026.
• Infinera (INFN) and NEC Corporation (NIPNY) announced that Neutral Networks deployed Infinera's ICE6 technology for its new transnational neutral fiber optic network NEXT. The companies worked closely together to design the largest optical network modernization between Mexico and the United States. With Infinera's ICE6 800G coherent technology, Neutral Networks' NEXT network will provide high-capacity services and pave the way for future growth in the region.
• Olink Holding AB (publ) (OLK) today announced the release of Olink Analyze 3.1. Olink Analyze is an R software package, a collection of functions written in R programming language, created to streamline the analysis of Olink data.
• Porch Group's (PRCH) announced the continued momentum of its national expansion with the introduction of service in Oklahoma.

• Petalfast Inc announced a partnership with Turning Point Brands (TPB) to drive distribution expansion of their iconic rolling paper brand, Zig-Zag. Turning Point is a manufacturer and distributor of national branded consumer products, including alternative smoking accessories and consumables.
• Charles River Laboratories International (CRL) announces the opening of its High Quality (HQ) Plasmid DNA Centre of Excellence at Bruntwood SciTech's Alderley Park in Cheshire, United Kingdom.
• BrainsWay (BWAY) announced that, for the first time, the Israeli Ministry of Health has approved coverage applicable to its Deep TMS system for the treatment of depression. The inclusion of the treatment within Israel's health basket of essential medical services means that the country's health funds must now make the treatment available to qualifying patients free of charge.
• Acknowledging that Return on Experience impacts business success in a variety of venues outside of hotels, resorts and casinos, Agilysys (AGYS) is introducing at HITEC Orlando 2022 13 Hospitality Solution Studios, each tailored to improve ROE in a specific type of venue.

• Hyliion and Cummins announced the two companies are joining forces to optimize the Cummins natural gas engine as the generator for the Hypertruck ERX powertrain.
• Together the companies plan to obtain key environmental certifications for Cummins' natural gas internal combustion engines to be used in Hyliion's Hypertruck ERX powertrain. The Hyliion Hypertruck ERX is an electric range extender semi-truck powertrain solution using onboard power generation to recharge the batteries.
• Start of production for the Hypertruck ERX with the ISX12N Cummins natural gas power is anticipated to begin in late 2023.

• Bright Green is on pace to complete renovation of its existing 22-acre facility this coming August. The Company has completed installation of medical-grade panels throughout the interior and exterior walls, and the greenhouse facility has been reglazed with special glass that transmits 98% light with a 20% haze, which is optimal light intensity based on the environmental conditions in Grants. A high-tech security solution is in the process of installation and inspections to ensure compliance with the Company's standard operating procedures and all federal security requirements. Clean rooms and offices are expected to be delivered and installed in the coming weeks
• Beyond the initial facility outlined above, the Company is also focused on the construction of two additional greenhouses that are 57-acres each and will facilitate cannabis research, development, cultivation, and manufacturing operations. Construction on Phase 2 is expected to commence in 2023 subject to capital and normalization of supply chainissues. Bright Green plans to equip these additional facilities with cutting-edge technologies supplied by Dalsem Greenhouse Solutions. The implementation of these, and other renewable energy technologies, should allow the Company to maintain a net-zero carbon footprint once operational.
• Once fully built out, Bright Green anticipates its facilities will be capable of producing up to ~100,000 grams of resin per day with a concentration of a minimum of 85% useful cannabinoids for commercialization. This capacity of this facility should yield more than 850 million grams per year.
• Bright Green construction projects are proceeding on schedule for the company's inspection by the DEA, now scheduled for later this summer. Following the DEA's authorization post-inspection, Bright Green will commence growing plants in its current 22-acre state-of-the-art production facility and selling cannabis to DEA-registered pharmaceutical companies to produce medicinal cannabis or cannabis preparations. DEA registration will also enable the Company to produce and sell cannabis for export internationally and to supply the growing cannabis clinical research market to those who hold a license comparable to a U.S. Schedule 1. The Company's first harvest is expected this fall.

• Co announced its decision to keep its Boots and No7 Beauty Company businesses under its existing ownership. This marks the conclusion of the review that began in January in line with the Company's strategic priorities. WBA has been encouraged by productive discussions held with a range of parties, receiving significant interest from prospective buyers. However, since launching the process, the global financial markets have suffered unexpected and dramatic change. As a result of market instability severely impacting financing availability, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No7 Beauty Company. Consequently, WBA has decided that it is in the best interests of shareholders to keep focusing on the further growth and profitability of the two businesses.
• The decision to retain the businesses has also been supported by the ongoing strong performance and growth of Boots and No7 Beauty Company, which have exceeded expectations despite challenging conditions. Boots is the UK's leading health and beauty retailer and benefits from its unique position as one of the most trusted and well-respected brands in the country. Since the formation of WBA at the end of 2014, the Company has significantly invested in Boots and No7 Beauty Company. Given their unmatched assets and unparalleled potential, Walgreens Boots Alliance will continue investing in the future of these two businesses.

• Co announced that II-VI has obtained antitrust clearance from the State Administration for Market Regulation of the People's Republic of China ("SAMR") for II-VI's pending acquisition of Coherent. The clearance decision from SAMR satisfies the closing condition set forth in the previously announced merger agreement regarding the receipt of antitrust approvals. II-VI expects the closing of its acquisition of Coherent (the "Merger") to occur on or about July 1, 2022.
• Under the terms of merger agreement, each share of Coherent common stock will be converted into the right to receive $220.00 in cash and 0.91 of a share of II-VI common stock upon the completion of the transaction.

The S&P 500 futures are up 22 points and are trading 0.4% above fair value. The Nasdaq 100 futures are up 55 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are up 197 points and are trading 0.7% above fair value.

A positive bias has taken root in the futures market, aided by reports that China has shortened its quarantine period for inbound visitors and that Shanghai and Beijing reported zero COVID cases for the first time since February.

Another support factor includes several banks, Morgan Stanley (MS) and Goldman Sachs (GS) among them, announcing dividend increases and/or share buyback programs following the Fed's stress test. JPMorgan Chase (JPM) and Citigroup (C) left their dividend plans unchanged.

The reopening optimism surrounding China has helped underpin oil prices ($111.27, +1.70, +1.5%), which have also been bolstered by a Reuters report indicating Saudi Arabia and the UAE have limited spare capacity to boost output.

Rising oil prices aren't helping to assuage headline inflation pressures any more than Nike's (NKE) inventory surge and fiscal Q1 revenue warning, and ECB President Lagarde suggesting the ECB could move faster on rate hikes if needed, are helping to assuage concerns about a broader earnings slowdown. Nonetheless, market participants seem to be favoring a quarter-end rebound bias based on rebalancing activity following a rough second quarter performance for the stock market.

The 2-yr note yield is up one basis point to 3.13%. The 10-yr note yield is up five basis points to 3.24%.

In corporate news:

• Nike (NKE 108.19, -2.31, -2.1%): beats by $0.08, reports revs in-line, gross margin decreased by 80 bps; Guides AugQ revenue below consensus; Authorizes new, four-year $18 bln share repurchase program for Class B common stock
• Spirit Airlines (SAVE 23.49, +0.92, +4.1%): JetBlue Airways (JBLU 8.74, -0.02, -0.2%) increases offer to acquire SAVE; adds ticking fee; increases reverse breakup fee and accelerated prepayment to $2.50/sh
• Robinhood Markets (HOOD 8.81, -0.31, -3.4%): FTX CEO said the company is not having any active M&A conversations with Robinhood, according to MarketWatch
• Morgan Stanley (MS 79.94, +2.50, +3.2%): increases quarterly dividend by 11% to $0.775/share; authorizes multi-year repurchase program for up to $20 bln in common stock

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a higher note after overcoming a weak start. Japan's Nikkei +0.7%; Hong Kong's Hang Seng +0.9%; China's Shanghai Composite +0.9%; India's SENSEX unchanged; South Korea's Kospi +0.8%; and Australia's All Ordinaries +0.9%.

• In economic data:
  • Japan's May BoJ Core CPI 1.5% yr/yr, as expected (last 1.4%)
• In news:
  • China's National Development and Reform Commission acknowledged challenges associated with stabilizing prices and the job market.
  • China lowers quarantine period for inbound visitors to 10 days from three weeks, according to Bloomberg
  • There was growing speculation that the Bank of Japan will struggle to maintain its ultra-loose policy in the face of global inflation.
  • South Korea's Prime Minister called on his government to come up with a plan to stabilize inflation.

• Major European indices trade on a firmly higher note. STOXX Europe 600 +0.7%; Germany's DAX +1.0%; UK's FTSE 100 +1.4%; France's CAC 40 +1.4%; Italy's FTSE MIB +1.4%; and Spain's IBEX 35 +1.6%.
  • In economic data:
    • Germany's July GfK Consumer Climate -27.4 (expected -27.6; last -26.2)
    • France's June Consumer Confidence 82 (expected 84; last 85)
    • Italy's April Industrial Sales 2.7% m/m (last 2.5%); 22.0% yr/yr (last 21.6%)
  • In news:
    • European Central Bank President Lagarde repeated that the ECB is planning a 25-bps rate hike in July, followed by another hike in September.
    • The ECB is reportedly working on a scheme to cap the borrowing costs of highly indebted countries.
    • The U.K.'s House of Commons voted in favor of overriding elements of the Northern Ireland protocol.

Gapping up
In reaction to earnings/guidance:

• TCOM +15.6%, RCM +3.3%, SNX +1.6%

Other news:

• KZR +92% (announces positive topline results from the MISSION Phase 2 trial)
• STRO +24.5% (Sutro Biopharma and Astellas to collaborate to advance novel immunostimulatory antibody-drug conjugates)
• CRNT +17.7% (AVNW to acquire all shares of CRNT that it does not already own for $2.80/sh)
• APYX +8% (announced the receipt of 510(k) clearance for the use of the Renuvion Dermal handpiece for specific dermatological procedures for the treatment of moderate to severe wrinkles and rhytides limited to patients with Fitzpatrick skin types I II or III)
• VLDR +7.1% (announced a multi-year agreement for its lidar sensors with Boston Dynamics)
• VG +6.4% (Ericsson (ERIC) provides update on its acquisition of Vonage)
• ROIV +6.4% (Roivant Sciences and Pfizer (PFE) unveil Priovant Therapeutics and ongoing registrational studies for oral brepocitinib; also reported earnings)
• EIGR +5% (announces results from multiple presentations)
• IDYA +5% (reports development candidate nomination of a potential first-in-class Pol Theta Helicase inhibitor in collaboration with GSK)
• IVR +4.9% (reduces leverage and rotates Agency RMBS portfolio into higher coupons)
• PLTK +4.9% (Joffre Capital aiming to purchase majority stake in PLTK according to Axios)
• SAVE +4.1% (JBLU increases offer to acquire SAVE; TIG Advisors sends letter to SAVE Board regarding its intention to vote "against" proposed merger with Frontier Group Holdings)
• OXY +4% (10% owner Berkshire Hathaway (Warren Buffett) disclosed the purchase of ~794K shares worth ~$44 mln (transaction date 6/23) )
• ULCC +3% (JBLU increases offer to acquire SAVE)
• EPIX +3% (presents clinical update on EPI-7386)
• MS +2.9% (discusses stress test results to increase dividend and announces $20 bln share buyback plan)
• LOVE +2.6% (Lovesac and Joybird resolve patent litigation)
• NLIT +2.6% (reschedules Special Meeting to approve acquisition)
• TFC +2.5% (discusses stress test results to increase dividend by 8%)
• GFF +2.4% (declares special cash dividend of $2/sh)
• ESTE +2.2% (announces northern Delaware basin asset acquisition for ~$627 million)
• AVNW +1.9% (AVNW to acquire all shares of CRNT that it does not already own for $2.80/sh)
• GES +1.8% (completes previously disclosed $175 mln ASR program)
• GS +1.8% (discusses stress test results to increase dividend by 25%)
• CFG +1.3% (discusses stress test results increases share repurchase authorization to $1 bln; will consider dividend increase)
• COF +1.3% (discusses stress test results SCB is 3.1%)
• C +1.3% (discusses stress test results intends to maintain current dividend)
• SDGR +1.3% (FDA cleared its investigational new drug application for its MALT1 inhibitor SGR-1505)
• BAC +1.2% (discusses stress test results to increase dividend by 5%)
• JPM +1.2% (discusses stress test results intends to maintain current dividend)
• HPE +1.2% (announces a new partner program)
• BLNK +1.2% (Trilantic Capital Partners discloses 5.7% passive stake)
• WFC +1% (discusses stress test results to increase dividend by 20%)
• FITB +1% (discusses stress test results to recommend to board to increase dividend)
• LE +1% (announces $50 million share repurchase authorization)

Analyst comments:

• FTNT +2.8% (upgraded to Outperform from Market Perform at BMO Capital Markets)

Gapping down
In reaction to earnings/guidance:

• CGNT -22.4%, CNXC -5.1%, JEF -2.6% (also authorizes new $250 mln share repurchase program), NKE -1.9% (also authorizes new $18 bln share repurchase program)

Other news:

• JAZZ -3.8% (Top-line Results from Phase 3 Trial Evaluating Nabiximols Oromucosal Spray)
• HOOD -3.4% (FTX CEO says co not having any active M&A conversations with HOOD according to MarketWatch)
• TAL -1.9% (Provides Update on Status under Holding Foreign Companies Accountable Act)
• LZB -0.9% (Lovesac and Joybird resolve patent litigation)
• STT -0.8% (discusses stress test results to increase dividend by 10% to begin its existing share repurchase program in Q4)
• PHG -0.7% (provides update on Philips Respironics' PE-PUR sound abatement foam test and research program)

Analyst comments:

• FTCH -2.6% (downgraded to Neutral from Buy at UBS)
• EBAY -2.4% (downgraded to Neutral from Buy at UBS)
• EPZM -1.4% (downgraded to Market Perform from Outperform at Cowen)

Gapping down
In reaction to earnings/guidance:

• CGNT -22.4%, CNXC -5.1%, JEF -2.6% (also authorizes new $250 mln share repurchase program), NKE -1.9% (also authorizes new $18 bln share repurchase program)

Other news:

• JAZZ -3.8% (Top-line Results from Phase 3 Trial Evaluating Nabiximols Oromucosal Spray)
• HOOD -3.4% (FTX CEO says co not having any active M&A conversations with HOOD according to MarketWatch)
• TAL -1.9% (Provides Update on Status under Holding Foreign Companies Accountable Act)
• LZB -0.9% (Lovesac and Joybird resolve patent litigation)
• STT -0.8% (discusses stress test results to increase dividend by 10% to begin its existing share repurchase program in Q4)
• PHG -0.7% (provides update on Philips Respironics' PE-PUR sound abatement foam test and research program)

Analyst comments:

• FTCH -2.6% (downgraded to Neutral from Buy at UBS)
• EBAY -2.4% (downgraded to Neutral from Buy at UBS)
• EPZM -1.4% (downgraded to Market Perform from Outperform at Cowen)

Gapping up
In reaction to earnings/guidance:

• TCOM +15.6%, RCM +3.3%, SNX +1.6%

Other news:

• KZR +92% (announces positive topline results from the MISSION Phase 2 trial)
• STRO +24.5% (Sutro Biopharma and Astellas to collaborate to advance novel immunostimulatory antibody-drug conjugates)
• CRNT +17.7% (AVNW to acquire all shares of CRNT that it does not already own for $2.80/sh)
• APYX +8% (announced the receipt of 510(k) clearance for the use of the Renuvion Dermal handpiece for specific dermatological procedures for the treatment of moderate to severe wrinkles and rhytides limited to patients with Fitzpatrick skin types I II or III)
• VLDR +7.1% (announced a multi-year agreement for its lidar sensors with Boston Dynamics)
• VG +6.4% (Ericsson (ERIC) provides update on its acquisition of Vonage)
• ROIV +6.4% (Roivant Sciences and Pfizer (PFE) unveil Priovant Therapeutics and ongoing registrational studies for oral brepocitinib; also reported earnings)
• EIGR +5% (announces results from multiple presentations)
• IDYA +5% (reports development candidate nomination of a potential first-in-class Pol Theta Helicase inhibitor in collaboration with GSK)
• IVR +4.9% (reduces leverage and rotates Agency RMBS portfolio into higher coupons)
• PLTK +4.9% (Joffre Capital aiming to purchase majority stake in PLTK according to Axios)
• SAVE +4.1% (JBLU increases offer to acquire SAVE; TIG Advisors sends letter to SAVE Board regarding its intention to vote "against" proposed merger with Frontier Group Holdings)
• OXY +4% (10% owner Berkshire Hathaway (Warren Buffett) disclosed the purchase of ~794K shares worth ~$44 mln (transaction date 6/23) )
• ULCC +3% (JBLU increases offer to acquire SAVE)
• EPIX +3% (presents clinical update on EPI-7386)
• MS +2.9% (discusses stress test results to increase dividend and announces $20 bln share buyback plan)
• LOVE +2.6% (Lovesac and Joybird resolve patent litigation)
• NLIT +2.6% (reschedules Special Meeting to approve acquisition)
• TFC +2.5% (discusses stress test results to increase dividend by 8%)
• GFF +2.4% (declares special cash dividend of $2/sh)
• ESTE +2.2% (announces northern Delaware basin asset acquisition for ~$627 million)
• AVNW +1.9% (AVNW to acquire all shares of CRNT that it does not already own for $2.80/sh)
• GES +1.8% (completes previously disclosed $175 mln ASR program)
• GS +1.8% (discusses stress test results to increase dividend by 25%)
• CFG +1.3% (discusses stress test results increases share repurchase authorization to $1 bln; will consider dividend increase)
• COF +1.3% (discusses stress test results SCB is 3.1%)
• C +1.3% (discusses stress test results intends to maintain current dividend)
• SDGR +1.3% (FDA cleared its investigational new drug application for its MALT1 inhibitor SGR-1505)
• BAC +1.2% (discusses stress test results to increase dividend by 5%)
• JPM +1.2% (discusses stress test results intends to maintain current dividend)
• HPE +1.2% (announces a new partner program)
• BLNK +1.2% (Trilantic Capital Partners discloses 5.7% passive stake)
• WFC +1% (discusses stress test results to increase dividend by 20%)
• FITB +1% (discusses stress test results to recommend to board to increase dividend)
• LE +1% (announces $50 million share repurchase authorization)

Analyst comments:

• FTNT +2.8% (upgraded to Outperform from Market Perform at BMO Capital Markets)

• Co announces that its Board of Directors has authorized the repurchase of up to $50 million of the Company's common stock through February 2, 2024, the conclusion of its fiscal year 2023.
• Under the program, the Company may purchase its shares from time to time in the open market, in privately negotiated transactions, or by other means in accordance with federal securities laws. Simultaneously, the Company continues to explore debt refinancing options as part of its ongoing commitment to drive stockholder value.

Major European indices trade on a firmly higher note. European Central Bank President Lagarde repeated that the ECB is planning a 25-bps rate hike in July, followed by another hike in September. The ECB is reportedly working on a scheme to cap the borrowing costs of highly indebted countries. The U.K.'s House of Commons voted in favor of overriding elements of the Northern Ireland protocol.

• In economic data:
  • Germany's July GfK Consumer Climate -27.4 (expected -27.6; last -26.2)
  • France's June Consumer Confidence 82 (expected 84; last 85)
  • Italy's April Industrial Sales 2.7% m/m (last 2.5%); 22.0% yr/yr (last 21.6%)

---Equity Markets---

• STOXX Europe 600: +0.7%
• Germany's DAX: +1.0%
• U.K.'s FTSE 100: +1.4%
• France's CAC 40: +1.4%
• Italy's FTSE MIB: +1.4%
• Spain's IBEX 35: +1.6%

---FX---

• EUR/USD: UNCH at 1.0580
• GBP/USD: -0.2% to 1.2243
• USD/CHF: -0.2% to 0.9546

• Reports Q2 (May) earnings of $2.72 per share, $0.07 better than the S&P Capital IQ Consensus of $2.65; revenues rose 160.7% year/year to $15.27 bln vs the $15.25 bln S&P Capital IQ Consensus.
• Co issues in-line guidance for Q3, sees EPS of $2.50-2.90 vs. $2.66 S&P Capital IQ Consensus; sees Q3 revs of $14.5-15.5 bln vs. $15.4 bln S&P Capital IQ Consensus.
• Co reaffirms guidance for FY22, sees EPS of $11.15-11.65 vs. $11.49 S&P Capital IQ Consensus.

• Veritone (VERI) announced that the Porterville Police Department is now successfully utilizing its intelligent stop data collection and reporting application Veritone Contact to meet the stringent requirements of the California AB 953 Racial and Identity Profiling Act (RIPA) which, rolling out in waves since July 2018, went into full effect for over 500 California Law Enforcement Agencies (LEAs) January 1, 2022.
• Revolution Medicines (RVMD) announced the first patient was dosed in its Phase 1/1b monotherapy clinical trial of RMC-6236, the company's oral, potent, tri-complex RAS(ON) Inhibitor designed to treat patients with cancers driven by a variety of RAS mutations. RMC-6236, which the company refers to as a RASMULTI (ON) Inhibitor, is the first development candidate from Revolution Medicines' portfolio of novel RAS(ON) Inhibitors to enter clinical development.
• Fate Therapeutics (FATE) announced that it has expanded its off-the-shelf, iPSC-derived, cell-based cancer immunotherapy collaboration with ONO Pharmaceutical Co., Ltd. (OPHLY) to include the development of chimeric antigen receptor (CAR) NK cell collaboration candidates. In addition, as part of the collaboration's expansion, ONO will contribute novel binding domains targeting a second solid tumor antigen. Under the original Collaboration and Option Agreement entered into between Fate and ONO in September 2018, ONO has contributed novel binding domains targeting an initial solid tumor antigen, and Fate is currently conducting preclinical development of a multiplexed-engineered, iPSC-derived CAR T-cell product candidate for solid tumors.
• Kinross Gold (KGC) provides an update on its Red Lake, Ontario-based Great Bear project, as well as its Manh Choh project in Alaska and Curlew exploration project in Washington State. To date, Kinross has drilled approximately 83,000 metres and is on track to complete approximately 200,000 metres of exploration and infill drilling in 2022 on the LP Fault zone, the most significant discovery to date at the project. The Company has received additional assay results since its last update on May 10, 2022, with a selection of the new results from targets at the LP Fault zone highlighted in the table below. Kinross has increased the number of diamond drills at Great Bear from eight to 11 since its last update. Recent results showing high grade mineralization at depths of more than 500 metres also demonstrate the potential for a sizeable underground mine. In support of this, Kinross is analyzing an advanced exploration program that would establish an underground decline.

• Yunji (YJ) announced that the Company's ongoing development of innovative technology is yielding positive results. The recently-launched second generation of Yunji's megahit product, fruit and vegetable pressed candy from its private label Qingziyang, reached the milestone of five million sales within one minute and ten million sales within twenty minutes during its launch day on June 14, 2022.
• PayPal Holdings (PYPL) announced it is expanding its suite of credit offerings to include a new business credit card to better meet the everyday financing needs of small business owners.
• PureCycle Technologies (PCT) and the Jacksonville Jaguars are teaming up to help divert over half a million pieces of plastic waste at TIAA Bank Field from being landfilled or flowing into waterways.

• The aggregate purchase price of the Titus Acquisition is approximately $627 million consisting of $575 million in cash and approximately 3.9 million shares of Earthstone's Class A common stock valued at $52 million based on a closing share price of $13.51 on June 24, 2022, both subject to customary closing adjustments.
• The effective date of the Titus Acquisition will be August 1, 2022, with closing anticipated in the third quarter of 2022. The cash portion of the consideration is expected to be funded with cash on hand and borrowings under the Company's senior secured revolving credit facility (the "Credit Facility"). In conjunction with the Titus Acquisition, Earthstone has obtained $400 million of incremental commitments from existing lenders, increasing elected commitments under the Credit Facility from the current $800 million to $1.2 billion upon closing. Earthstone's current borrowing base is $1.4 billion and is expected to increase with the Titus Acquisition.

• Schrdinger expects to initiate a Phase 1 clinical trial of SGR-1505 in patients with relapsed or refractory B-cell lymphoma in the second half of 2022.
• The planned multi-center, dose-escalation study will be conducted in patients with relapsed or refractory B-cell malignancies to evaluate the safety, pharmacokinetics, pharmacodynamics, and preliminary signals of therapeutic activity of SGR-1505 as a monotherapy. Once the recommended dose is determined, an expansion cohort is planned to evaluate SGR-1505 in combination with other anti-cancer agents, such as BTK and BCL-2 inhibitors, in patients with specific B-cell malignancies.

• Reports Q1 (Apr) loss of $0.79 per share, $0.89 worse than the S&P Capital IQ Consensus of $0.10; revenues fell 24.7% year/year to $86.4 mln vs the $112.6 mln S&P Capital IQ Consensus.
• Co's Commentary - "We are disappointed with our first quarter results, which were impacted by slow pipeline conversion and supply chain. We have taken actions to improve our execution and cost structure in the current environment. At this time, we are unable to give guidance but continue to believe in the long-term opportunity."

• On June 27, 2022, Whirlpool, through its subsidiary Whirlpool EMEA SpA, entered into a share purchase agreement with Arelik A.S.("Arcelik") to sell the Company's Russian business to Arcelik for deferred payments. The sale includes the entirety of the Company's operations in Russia, including the Company's manufacturing site in Lipetsk, Russia, and the sales organization in Moscow, Russia, as well as sales operations in Kazakhstan and other select CIS countries. The deferred payments are expected to be made over a ten-year period and are subject to a cap based on the net asset value of the business as of closing, which is currently estimated at approximately 220 million. The deferred payments, subject to regulatory authorization or confirmation, will be based on business conditions, distributable reserves, defined liabilities, and cash and receipts existing on the balance sheet at closing. The purchase agreement is subject to additional conditions for closing, including obtaining regulatory approval and other customary conditions. The sale is expected to be finalized in the third quarter of 2022.
• The Company expects to record a loss between $300 million to $400 million during the second quarter of 2022 in connection with the transaction. The final amount is subject to changes based on the movements in working capital accounts, divestiture related costs and impacts of foreign currency.

Equity indices in the Asia-Pacific region ended Tuesday on a higher note after overcoming a weak start. China reduced the required quarantine time for international travelers. China's National Development and Reform Commission acknowledged challenges associated with stabilizing prices and the job market. There was growing speculation that the Bank of Japan will struggle to maintain its ultra-loose policy in the face of global inflation. South Korea's Prime Minister called on his government to come up with a plan to stabilize inflation.

• In economic data:
  • Japan's May BoJ Core CPI 1.5% yr/yr, as expected (last 1.4%)

---Equity Markets---

• Japan's Nikkei: +0.7%
• Hong Kong's Hang Seng: +0.9%
• China's Shanghai Composite: +0.9%
• India's Sensex: UNCH
• South Korea's Kospi: +0.8%
• Australia's ASX All Ordinaries: +0.9%

---FX---

• USD/JPY: +0.5% to 136.17
• USD/CNH: UNCH at 6.6890
• USD/INR: +0.5% to 78.84

• CPSS 10% owner bought 284,312 shares at $10.394 - $10.523 worth ~$2.96 mln.
• DVA Chief Operating Officer, DKC bought 20,000 shares at $77.52 - $77.76 worth ~$1.55 mln.
• OXY 10% owner Berkshire Hathaway (Warren Buffett) bought 794,389 shares at $55.0200 - $55.5000 worth ~$44 mln.
• VOXX President/CEO and 10% owner (2) bought 6,000 shares at $8.25 - $8.73 worth ~$52K.

Sellers:

• CXM Chief Technology Officer sold 25,000 shares at $11.50 - $11.58 worth ~$288K.
• FDS Director sold 1,000 shares at $390.62 worth ~$391K.
• JBL SVP operations sold 3,703 shares at $54.75 - $54.79 worth ~$203K.
• INTU Director sold 1,790 shares at ~$390.365 worth ~$699K.
• PARR 10% owner sold 100,000 shares at $15.19 - $16.35 worth ~$1.6 mln.

For regular updates on our insider summaries and commentary, please add Briefing ticker INSID to ticker alerts. Transactions exclude pre-arranged trading plans. Sales exclude option-related sell-offs.

• Co authorized the restart of spodumene concentrate production at its North American Lithium ("NAL") project located near Val-d'Or, Quebec. The NAL restart will feature significant operational upgrades totaling approximately $80 million aimed at improving product quality and plant utilization.
• Long-lead equipment was ordered and detailed design engineering commenced in late 2021 based on our jointly planned timeline. Operations at NAL are expected to commence in the first half of 2023. The NAL restart project will be entirely funded from pro-rata cash contributions by Sayona and Piedmont, with each party having completed significant capital raises in the first half of 2022.

• Stanley Black & Decker announced it has signed a definitive agreement for the sale of its STANLEY Oil & Gas business to Pipeline Technique Limited, a leading provider of solutions to the energy industry. The pending sale of STANLEY Oil & Gas encompasses pipeline services and equipment businesses including CRC-Evans Pipeline International, Pipeline Induction Heat Ltd. and STANLEY Inspection, which generated combined revenues of approximately $140 million in 2021.
• Stanley Black & Decker expects to incur a pre-tax, non-cash charge of approximately $125 to $200 million related to the write-down of the Oil & Gas net assets, which will be excluded from adjusted earnings. The results of the Oil & Gas business will remain in continuing operations and will not be reclassified as discontinued operations. The transaction is subject to regulatory approval and other customary closing conditions.
  

• Co has been selected to lead design services on Phase IV of the Boston Water and Sewer Commission's East Boston Sewer Separation project. The project is part of a comprehensive 30-year initiative to reduce pollutants discharged to Boston Harbor and its tributary waters and to modernize water infrastructure in the rapidly developing neighborhood.
• Stantec has partnered with the BWSC for more than 30 years, collaborating to complete some of Boston's most complex and demanding sewer separation and infrastructure improvement projects.

• Gapping up:
  • KZR +73.5%, STRO +30.5%, CRNT +17.7%, TCOM +16.6%, ROIV +10%, VG +6.7%, EIGR +5%, IDYA +5%, SAVE +4.1%, GFF +4%, MS +3.6%, RCM +3.3%, OXY +3.1%, ULCC +3%, EPIX +3%, BLNK +3%, LOVE +2.6%, NLIT +2.6%, TFC +2.5%, GES +2.4%, COF +2.3%, AVNW +1.9%, USB +1.4%, GS +1.3%, IVR +1.2%, BAC +1.1%, F +1%, JPM +1%, FITB +1%
• Gapping down:
  • HOOD -3.2%, LZB -3.1%, JEF -2.8%, NKE -2.4%, TAL -1.2%, PHG -0.5%, CNXC -0.5%

• Reports Q4 (March) EPS of ($0.39) vs ($0.30) Capital IQ consensus; revs of $9.2 mln vs $11.6 mln consensus.

• Kite, a Gilead Company, announces that the European Commission (EC) has approved its CAR T-cell therapy Yescarta (axicabtagene ciloleucel) for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL) after three or more lines of systemic therapy. Yescarta has maintained orphan medicinal product designation in this indication.
• The approval is supported by data from the pivotal, single-arm Phase 2 ZUMA-5 international study in patients with relapsed or refractory FL who had received at least two prior lines of systemic therapy, including the combination of an anti-CD20 monoclonal antibody and an alkylating agent. Among patients who had received three or more lines of prior therapy (n=75), the overall response rate (ORR) was 91%, and the complete response (CR) rate was 77% at the 24-month analysis. The median duration of response (DoR) was 38.6 months, and the proportion of responders still in response at Month 24 was 56%.
  

• Roivant Sciences and Pfizer announced the unveiling of Priovant Therapeutics, dedicated to developing and commercializing novel therapies for autoimmune diseases with the greatest morbidity and mortality. Priovant was established in September 2021 through a transaction between Roivant (ROIV) and Pfizer (PFE), in which Pfizer licensed oral and topical brepocitinib's global development rights and US and Japan commercial rights to Priovant. Pfizer holds a 25% equity ownership interest in Priovant.
  • Brepocitinib is a potential first-in-class dual, selective inhibitor of TYK2 and JAK1; in all five placebo-controlled studies completed to date, oral brepocitinib generated statistically significant and clinically meaningful results
  • Priovant is developing brepocitinib in severe autoimmune diseases with few approved therapies and where dual inhibition of TYK2 and JAK1 may provide greater efficacy than inhibiting either alone
  • A single registrational Phase 3 trial evaluating oral brepocitinib in dermatomyositis (VALOR) was initiated earlier this quarter
  • An ongoing Phase 2b study in systemic lupus erythematosus (SLE), designed to serve as one of two registrational studies, is expected to generate top-line results in 2H 2023
    

• Co is pleased to release the results of its Feasibility Study on its wholly-owned Casino copper-gold-molybdenum deposit in the Yukon, Canada. The Study considered the Project being constructed as an open pit mine, with a concentrator processing 120,000 tonnes per day (t/d) to recover copper, gold, molybdenum and silver, as well as a 25,000 t/d oxide heap leach facility to recover gold, silver and copper.
• The Study supersedes all previous studies and incorporates an updated mineral resource and mineral reserve with an effective date of April 29, 2022. The Study examines the development of the Casino Project, which comprises the processing of 1.43 billion tonnes of Mineral Reserve for both the mill and heap leach, with deposition of mill tailings and mine waste in the Tailings Management Facility ("TMF") consistent with the design concepts considered during the Best Available Tailings Technology ("BATT") Study as a base case development.
• Metallurgical results obtained in 2021 indicated that gold recovery from the heap leach could be increased from 70% as outlined in the PEA to 80% by crushing the ore going to the heap leach to a p80 of 16 mm. This updated gold recovery and crush size have been incorporated in the Feasibility Study along with additional capital for the crushing circuit.
• This change, along with minor changes in grades and tonnage reporting to the heap leach pad, resulted in 20% greater gold predicted to be recovered through the heap leach circuit.

• IDEAYA Biosciences (IDYA) announced selection of a potential first-in-class Pol Theta Helicase development candidate. IDEAYA is collaborating with GSK on IND-enabling studies to support the evaluation of the Pol Theta Helicase DC in combination with niraparib, GSK's PARP inhibitor, for patients having tumors with BRCA or other homologous recombination (HR) mutations or homologous recombination deficiency (HRD).
  • IDEAYA and GSK are targeting an IND submission for the Pol Theta Helicase DC, subject to satisfactory completion of ongoing preclinical and IND-enabling studies, to enable first-in-human studies in the first half of 2023.
  • IDEAYA and GSK are collaborating on the ongoing IND-enabling studies, and GSK will lead clinical development for the Pol Theta program. GSK holds a global, exclusive license to develop and commercialize the Pol Theta Helicase DC and is responsible for all research and development costs for the program, including those incurred by IDEAYA. IDEAYA is eligible to receive future development and regulatory milestones of up to $485 million aggregate, inclusive of preclinical and clinical milestones of up to $10 million aggregate for advancing this asset through IND effectiveness.
  • Upon potential commercialization, IDEAYA will be eligible to receive up to $475 million of commercial milestones and tiered royalties on global net sales by GSK, its affiliates and their sublicensees ranging from high single digit to sub-teen double digit percentages, subject to certain customary reductions.
    

• Co  announced the proposed dual primary listing of its ordinary shares, par value US$0.00001 per share (the "Shares") by way of introduction on the Main Board of The Stock Exchange of Hong Kong Limited (the "SEHK"). The Company's American depositary shares (the "ADSs"), each representing three Shares, will continue to be primarily listed and traded on the New York Stock Exchange (the "NYSE").
• The Company has received a letter of in-principle approval to the listing application from the SEHK on June 28, 2022 (Beijing/Hong Kong Time) for the dual primary listing of the Shares on the Main Board of the SEHK (the "Proposed Listing"). Subject to the final listing approval from the SEHK, the Shares are expected to commence trading on the Main Board of the SEHK on July 4, 2022 (Beijing/Hong Kong Time) under the stock code "6638". The Shares will be traded in board lots of 500 Shares.
• In connection with the Company's expected listing on the SEHK, the Company's depositary facility for its ADSs is expected to be closed for the deposits of its Shares and will re-open on November 14, 2022.

• Duck Creek Technologies (DCT) announced it has agreed to acquire Prima XL, France-based Prima Solutions' flagship commercial reinsurance technology solution. Prima XL will further enhance Duck Creek's value to current and future customers by simplifying reinsurance management. The transaction terms also include an agreement by Duck Creek to purchase Prima Compliance for Solvency II, a compliance solution which Duck Creek intends to continue offering in the French marketplace.
• Mastercard (MA) and Paysafe (PSFE) announce the integration of Mastercard Send into Paysafe's payments platform, enhancing the payout capabilities offered to Paysafe's merchant customers in the UK and EU. The addition of Mastercard Send is the latest extension of the ongoing global relationship between the two companies which supports multiple Paysafe products and services. Mastercard Send enables people and organisations to send and receive money around the world in near real-time. It is designed to help banks, businesses and digital players modernise the way they send payments, giving people access to funds with speed, choice, and security wherever they interact.
• CME Group (CME) announced that it will add two new futures contracts to its suite of voluntary carbon products, which have quickly found market adoption since launching last year. The CBL N-GEO Trailing and CBL C-GEO Trailing futures contracts will be available for trading on August 8, 2022, pending regulatory review, allowing clients to trade offset credits that are no longer within the eligibility window of the existing CBL N-GEO and CBL C-GEO contracts. Xpansiv exchange CBL plans to launch the N-GEO Trailing spot contract on July 18, 2022. The C-GEO Trailing spot contract began trading in January.
• Illumina (ILMN) announced its participation in Time Boost Capital I LP, a 30 million genomics venture fund dedicated to providing match funding to startups graduating from Illumina Accelerator Cambridge with the aim to advance breakthroughs in human health. Illumina Accelerator, located in both San Francisco and Cambridge, is a company creation engine that partners with entrepreneurs to create genomics startups and advance innovative applications. Illumina joins a select group of US and European investors in the life sciences fund, including cornerstone investor LifeArc.
• Genius Sports (GENI) and Clue, a provider of intelligence and investigations software, have launched the most comprehensive integrity intelligence platform in world sport. As the trusted integrity partner to over 150 leagues and federations, Genius Sports will use the new system to help anticipate and detect global trends in betting-related corruption, support investigations and provide increased visibility to sports organizations worldwide. Clue's proprietary intelligence platform will heighten efficiency and interoperability between Genius Sports' Integrity, Trading and Quality Assurance teams, based across four continents.
  

• Aurora Mobile (JG) announced that it has upgraded its verification service JVerification to JG Secured Verification. Easily integrated to the existing verification systems, the upgraded service can empower businesses and internet platforms to develop a more efficient and secure defense solution against cybercrime and hacking risks while answering the rising cybersecurity needs and more stringent regulatory requirements for platform stability and security.
• Solectrac, makers of electric tractors and an operating company of Ideanomics (IDEX), announced the continued expansion of its certified dealer network with the addition of Ocala Tractor, LLC, Schow's Inc. and Georgia Land Equipment in Florida, Idaho and Georgia respectively. Solectrac's dealer network now spans the entire country.
• Equinor (EQNR) and SSE Thermal are stepping up ambitions to contribute to decarbonisation in the UK. The companies are buying power company Triton Power from Energy Capital Partners, an energy-transition infrastructure investor, and are starting preparations to use hydrogen in the Saltend Power Station.
• Arthur J. Gallagher & Co. (AJG) announced the acquisition of Erimus Group Limited. Erimus is an established retail insurance broker with a strong presence in the North East of England, serving a mainly regional commercial client base. Product offerings include commercial combined, business interruption, commercial property, cyber, D&O and employers liability insurance. Terms of the transaction were not disclosed.

• Enterprise Products Operating, a subsidiary of Enterprise Products Partners L.P. (EPD), recently filed applications for tax abatements for six proposed projects, including a proposed ethane to ethylene cracker that could be located in one of at least three jurisdictions. None of the six projects and their locations have been finalized, approved or sanctioned at this time. Furthermore, to clarify multiple media reports, while Enterprise has been working to develop and commercially underwrite an ethane to ethylene facility for a number of years, the company has neither approved nor sanctioned the construction of such a facility.
• Sanofi K.K., the Japanese subsidiary of Sanofi (SNY) and Health2Sync have entered into a partnering agreement to support healthcare professionals and people living with diabetes mellitus through digital support programs. This agreement in Japan again emphasizes the companies' ambition to realize a more comprehensive chronic disease management through digital solutions. Moving forward, Sanofi and Health2Sync plan to further collaborate in bringing innovative digital therapeutics solutions to patients and healthcare professionals in Japan and other markets.
• BlackBerry Limited (BB) and PATEO, a leading Internet of Vehicles technology service & product provider in China, announced that PATEO's intelligent cockpit, PATEO CONNECT+, will be powered by BlackBerry QNX technology and put into mass production in more than ten individual models across five OEMs, including VOYAH, Hozon New Energy, a top private car company in China and two international automakers.
• Teck Resources Limited (TECK) announced a Carbon Capture Utilization and Storage pilot project at its Trail Operations metallurgical complex in southern British Columbia. The CCUS pilot is expected to begin operation in the second half of 2023. The CCUS pilot supports Teck's Net-Zero Climate Change Strategy including our goal to reduce the carbon intensity of our operations by 33% by 2030 and achieve net-zero emissions by 2050.
• The Kraft Heinz Company (KHC) announced a 12-year virtual power purchase agreement with Repsol. This agreement is the Company's first investment in wind energy and is designed to help Kraft Heinz achieve its aspiration of procuring the majority of its electricity from renewable sources by 2025. Kraft Heinz is expected to source over 90 gigawatt hours/year of renewable energy from Spanish producer Repsol's largest wind project, Delta II (Aragon, Spain) -- equivalent to powering approximately 90 percent of Kraft Heinz's European manufacturing sites, which is the majority of its European load. The vPPA is expected to generate enough renewable electricity to power approximately 25,000 average EU households per year at its peak.

• Co commented on the results of the Federal Reserve's Dodd-Frank Act Stress Test ("DFAST") conducted in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.
• Based on its strong 2022 stress test results, the company expects to be subject to a preliminary stress capital buffer of 2.5 percent, unchanged from the current level, for the period beginning October 1, 2022, and ending on September 30, 2023. The Federal Reserve has stated that it expects to finalize the SCB for all firms by August 31, 2022. The SCB, when added to the Basel III Common Equity Tier 1 (CET1) minimum of 4.5 percent, requires the company to maintain a CET1 ratio above 7 percent through this period. The company's CET1 ratio was 9.8 percent as of March 31, 2022, under transitional regulatory capital requirements related to the current expected credit losses (CECL) methodology.
• Given the strong performance of this year's stress tests, additional capital distributions, whether through a potential common stock dividend increase or resumption of share repurchases under U.S. Bancorp's existing share repurchase program, will be determined after closing of the company's acquisition of MUFG Union Bank's core regional banking franchise. As previously disclosed, U.S. Bancorp suspended all common stock repurchases at the beginning of the third quarter of 2021, except for those done exclusively in connection with its stock-based compensation programs, due to the pending acquisition. Any additional capital distributions remain subject to the approval of U.S. Bancorp's Board of Directors and compliance with regulatory requirements.
  

• Astellas Pharma and Sutro Biopharma announced a worldwide, strategic collaboration and licensing agreement focused on the discovery and development of novel immunostimulatory antibody-drug conjugates (iADCs). The collaboration leverages the unique cancer-fighting potential of iADCs as a novel modality, enabled by Sutro's ability to engineer complex conjugated antibodies, and Astellas' global oncology R&D expertise.
• Under the terms of the agreement, Sutro will receive an upfront cash payment of US$90 million to develop iADCs for three biological targets and may be eligible to receive up to $422.5 million in development, regulatory and commercial milestones for each product candidate, and tiered royalties ranging from low double-digit to mid-teens on worldwide sales of any commercial products that may result from the collaboration, subject to Sutro's cost and profit sharing option for the United States.
• Sutro has the option to share in the costs and profits for developing and commercializing product candidates in the United States. If Sutro exercise this option for a particular product candidate, Astellas and Sutro will equally share the costs of such co-development and co-commercialization, with the resulting profits/losses from co-commercialization also shared equally in the United States.
  

• Northern Lights Acquisition Corp, a special purpose acquisition company, announced that it has again rescheduled its special meeting of stockholders to Tuesday, June 28, 2022 at 4:00 pm ET.
• The Company is also announcing that it has deposited an aggregate of $1,150,000 (representing $0.10 per public unit sold in the Company's initial public offering) into the Company's trust account to extend the period of time it has to consummate the Business Combination by three months from June 28, 2022 to September 28, 2022, although the Company currently anticipates that the Business Combination will close by June 30, 2022 subject to satisfaction or waiver of the closing conditions.
  

• Ericsson (ERIC) continues to work closely with the Committee on Foreign Investment in the United States as it reviews its proposed acquisition of Vonage Holdings Corp. (VG).
• The merger has cleared all other requisite foreign and US regulatory approval requirements, and the parties are working to conclude the regulatory process as expeditiously as possible. Ericsson and Vonage remain fully committed to this transaction and are working towards closing before end of July, 2022.

• The European Commission (EC) has approved Xenpozyme (olipudase alfa) as the first and only enzyme replacement therapy for the treatment of non-Central Nervous System (CNS) manifestations of Acid Sphingomyelinase Deficiency (ASMD) in pediatric and adult patients with ASMD type A/B or ASMD type B.
• The approval is based on positive data from the ASCEND and ASCEND-Peds clinical trials, in which Xenpozyme showed substantial and clinically relevant improvement in lung function (as measured by diffusing capacity of the lung for carbon monoxide, or DLco) and reduction of spleen and liver volumes, with a well-tolerated safety profile.
• Given the urgent unmet medical needs of the ASMD community, the European Medicines Agency (EMA) granted Xenpozyme PRIority MEdicines (PRIME) designation. Xenpozyme has also received special breakthrough designations from several other regulatory agencies around the world.

• The European Commission has granted marketing authorization for Nexviadyme (avalglucosidase alfa), an enzyme replacement therapy (ERT) for the long-term treatment of both late-onset and infantile-onset Pompe disease, a rare, progressive and debilitating muscle disorder.
• Nexviadyme is the first and only newly approved medicine for Pompe disease in Europe since 2006, when the European Commission authorized the marketing of alglucosidase alfa, branded Myozyme.

• Co announced the submission of a regulatory application to the Japanese Ministry of Health, Labour and Welfare (MHLW) for Shingrix (Zoster Vaccine Recombinant, Adjuvanted) for the prevention of shingles (herpes zoster) in adults aged 18 years and older who are at increased risk. This includes individuals with immunodeficiency or immunosuppression caused by known disease or therapy. Immunocompromised individuals are at greater risk of shingles and associated complications than immunocompetent individuals.
• Shingrix is already approved in Japan for adults aged 50 years and above

• The global equity markets are firm. S&P Futures are up about 16 points to trade around the 3920 area. The market saw early weakness but buyers were present around the 3885 zone, with 3885.75 representing the low print. Spoos swooped back to higher ground, peaking out at 3937.75 before drifting back to the current level.
• In Asia, China rose 0.9% while Japan gained 0.7%. The Shanghai Composite succumbed to early pressure but reversed after officials continued to tout potential policy measures to stimulate the economy. Additionally, health authorities reduced the quarantine period for inbound visitors which is an initial step toward easing COVID-19 restrictions. In Japan, the Nikkei also bounced back from early weakness to extend its winning streak to four. Energy stocks were among the best performers with Inpex Corp and Japan Petroleum advancing by 5%.
• In Europe, the major bourses are firmly in positive territory. The economic slate was light. German GfK Consumer Climate came in a couple ticks better than expectations at -27.4. With sentiment improving in China, luxury retailers continued to climb with the likes of LVMH and Kering up 2%. Energy giants, BP and Shell, are surging as much as 3% with crude oil futures back above $111.

Market Updates

• S&P Futures vs Fair Value: +16.0
• 10 yr Note: 3.223%
• USD/JPY: 135.87   +0.40
• EUR/USD: 1.0587  +0.0002
• Europe: FTSE: +1.1% DAX: +0.9% CAC: +1.4%
• Asia: Hang Seng: +0.9% Shanghai: +0.9%  Nikkei: +0.7%
• Gold (1827.70 +2.90) Silver (21.31 +0.14) Crude (111.06 +1.50)

• Co announces key aspects of its 2022 Capital Plan, which includes increasing its share repurchase authorization to $1 bln, which is an increase of $545 mln above the $455 mln of capacity remaining under the prior $750 mln authorization.
• Furthermore, co says it will consider an increase in the dividend for Q3.
• Co's announcement follows publication by the Fed of its stress tests and communication to Citizens of its preliminary SCB of 3.4%.
• Co has concluded that its proposed capital distributions under the Plan would be consistent with this preliminary SCB requirement over the relevant quarters.

• JetBlue modifies proposal to acquire Spirit (SAVE) based on discussions with Spirit shareholders, and issues open letter detailing the benefits of its superior proposal and the recent misleading statements made by Spirit.
• JetBlue today amends its already superior proposal as follows:
  • Increased accelerated prepayment to $2.50 per share, structured as a cash dividend to Spirit shareholders promptly following the Spirit shareholder vote.
  • Enhanced reverse break-up fee of $400 mln payable to Spirit in the unlikely event the transaction is not consummated for antitrust reasons.
  • Addition of a ticking fee mechanism, which would provide shareholders with a monthly prepayment of $0.10 per share between January 2023 and the consummation or termination of the transaction. This represents an estimated aggregate ticking fee of up to $1.80 per share, of which the first $1.15 per share in payments will offset the reverse break-up fee or the merger consideration.

• Co provides data from Fed stress test; Stress Capital Buffer (SCB) requirement would increase from the currently effective requirement of 3.0% to 4.0% for the four-quarter window of 4Q 2022 to 3Q 2023.
• Accordingly, effective October 1, 2022, Citi is required to maintain an 11.5% effective minimum Common Equity Tier 1 (CET 1) Capital ratio under the Standardized Approach, incorporating this SCB and its current GSIB surcharge of 3.0%. Citi's effective minimum CET 1 Capital ratio under the Advanced Approaches (using the fixed 2.5% Capital Conservation Buffer) will remain unchanged at 10%.
• Co plans to maintain the current dividend of $0.51 per share in Q3.

• PNC's Stress Capital Buffer (SCB) for the four-quarter period beginning Oct. 1, 2022 is 2.9%. PNC's Common Equity Tier 1 (CET1) ratio significantly exceeds the regulatory minimum (4.5%) plus our SCB, reflecting strong capital levels entering 2022 following the integration of BBVA USA.
• Earlier this quarter, our board of directors authorized a new repurchase framework, under the already approved authorization for repurchases of up to 100 mln, of which approximately 64% were still available for repurchase, as of March 31, 2022.
• This framework and our SCB results allow for the continuation of the co's recent quarterly dollar average share repurchase levels, as well as the flexibility to increase those levels should conditions warrant. As previously disclosed, on April 1, 2022, the PNC board of directors raised the quarterly dividend to $1.50 per share.

• Co says it has exceeded all minimum capital levels under the Fed's CCAR supervisory stress test.
• The Federal Reserve published an estimate of 6.3% for Huntington's modeled credit loss rate under the 2022 Supervisory Severely Adverse scenario which compares favorably to the peer median rate of 6.7%.
• "This year's stress testing exercise highlighted the robust credit strength of Huntington's balance sheet and our ability to withstand a severe economic downturn...Our capital levels remain strong, with robust liquidity, and we expect to expand pre-provision net revenue over the course of the year, consistent with our prior guidance. We continue to manage capital levels within our targeted operating range for Common Equity Tier 1 of 9-10%."

• Under the terms of the proposal, which was delivered to Ceragon's Board of Directors, Ceragon shareholders would receive $2.80 per share in cash.
• Aviat also remains open to offering a portion of the consideration in Aviat stock.
• Proposal represents a 51% premium to the 60-day volume weighted average trading price of Ceragon stock.

• Earnings/guidance gainers: NKE +1.1%
• Earnings/guidance losers: CNXC -4.5%, JEF -4.4%

• Co announces that it has completed the Federal Reserve's 2022 Comprehensive Capital Analysis and Review ("CCAR") stress test process. The Firm's indicative Stress Capital Buffer requirement is 4.0% (up from the current 3.2%) and the Firm's Standardized Common Equity Tier 1 capital ratio requirement including regulatory buffers is 12.0% (up from the current 11.2%).
• Co intends to maintain the current quarterly common stock dividend of $1.00 per share for the third quarter of 2022 in light of higher future capital requirements.

• Reports Q2 (May) earnings of $0.45 per share, may not be comparable to the S&P Capital IQ Consensus of $0.51; revenues fell 29.8% year/year to $1.37 bln vs the $1.26 bln S&P Capital IQ Consensus.
• Total Investment Banking and Capital Markets and Asset Management Net Revenues of $1.13 billion.
• Investment Banking net revenues of $687 million.
• Combined Capital Markets net revenues of $416 million.
• Authorizes the repurchase in the future of an additional up to $250 million of our common stock

• The transaction contemplates the transfer of approximately $500 million in client assets of which approximately $400 million are held in deposit accounts (based on numbers as of March 31, 2022).
• The assets, which are comprised of approximately 157,000 accounts across more than 3,000 employer groups, will expand UMB's direct-to-employer accounts.
• This acquisition is pending regulatory approval and is expected to close during the fourth quarter 2022.

• Co announces that it has received the results of the Fed's CCAR. Schwab's calculated stress capital buffer (SCB) was well below the 2.5% minimum, resulting in an SCB at that floor. This 2.5% SCB will be applicable to Schwab for the four-quarter period beginning October 1, 2022.
• Schwab's Common Equity Tier 1 (CET1) ratio of 18.9% as of March 31, 2022 was well in excess of the regulatory minimum of 4.5% combined with the SCB of 2.5% due to the relatively low risk nature of its balance sheet assets.
• Schwab ended Q1 with a consolidated Tier 1 Leverage Ratio of 6.1%, down slightly from 6.2% at year-end 2021.
• "Schwab's inaugural CCAR stress test results highlight our thoughtful approach to capital, and overall risk management. The strength of our ratios accentuates the durability of our all-weather model and reinforces our confidence that we are well positioned to serve our clients across a wide range of challenging macroeconomic environments. While there are no changes to our dividend or other capital actions to report today, we'll provide updates going forward as conditions and our plans change."

• Co announces that its affiliate, PalletOne, Inc., has acquired a 50 percent equity stake in Dempsey Wood Products. The purchase agreement includes options for PalletOne to purchase the remaining 50 percent of Dempsey after three years.
• Dempsey Wood Products produces kiln-dried lumber, pallet lumber, and other industrial wood products from a single location in Orangeburg, South Carolina.
• Dempsey had 2021 sales of $68.9 million, and its management team, including Ronald Dempsey and his son, Parker Dempsey, will continue in management roles.

• Co comments on CCAR and announces plans to increase its quarterly dividend by 5% to $0.22 per share beginning in Q3.
• Based on the 2022 CCAR results, Bank of America's stress capital buffer (SCB) will be approximately 100 bps higher than the current 2.5% level and will therefore add approximately 100 bps to co's CET1 minimum requirement of 9.5%.
• When finalized, this new SCB will be effective from October 1, 2022 to September 30, 2023. At March 31, 2022 Bank of America had $170 bln of regulatory CET1 capital and a CET1 ratio of 10.4%.
• Co says "the 2022 annual stress test results once again support that Bank of America maintains a strong capital position to serve its customers and clients through the current economic environment and our continued discipline around risk has us well prepared for a severe economic stress scenario."

• Co's calculated SCB under this year's supervisory stress test was well below the 2.5% minimum, preliminarily resulting in an SCB at that floor, which maintains common equity tier 1 ratio requirement at 8%.
• Co's Board of Directors will consider the common stock dividend at a regularly scheduled board meeting in Q3.
• The firm's capital position is strong and in Q4 it remains its intention to again begin its existing common share repurchase program in an amount reflecting interest rate levels and market conditions at the time.

• Co announces the resubmission of the New Drug Application (NDA) to the U.S. Food and Drug Administration for lenacapavir, an investigational, long-acting HIV-1 capsid inhibitor, for the treatment of HIV-1 infection in heavily treatment-experienced people with multi-drug resistant HIV-1 infection.
• Gilead resubmitted the NDA in response to the FDA Complete Response Letter issued in February 2022, which cited Chemistry Manufacturing and Controls issues relating to the compatibility of lenacapavir in borosilicate vials as the reason for the FDA action.
• The NDA resubmission contains comprehensive CMC data to support the compatibility of lenacapavir with an alternative vial type made from aluminosilicate glass.
• In addition, the NDA is supported by extensive pre-clinical and earlier clinical research data as well as data from the Phase 2/3 CAPELLA study, which evaluated the antiviral activity of lenacapavir administered every six months as a subcutaneous injection, in combination with other antiretroviral(s), in heavily treatment-experienced people with multi-drug resistant HIV-1 infection.
• Once accepted by the FDA, a new Prescription Drug User Fee Act date will be established.

• Co says increased expectations for accelerated interest rate hikes and balance sheet reduction by the Fed continue to weigh on Agency residential mortgage-backed securities (Agency RMBS) valuations.
• Co has taken actions to prudently manage its investment portfolio during recent market volatility. These actions include reducing leverage and rotating the Agency RMBS portfolio into higher coupons by selling 30-year 2.0% and 2.5% coupons and purchasing 4.0%, 4.5% and 5.0% coupons.
• Total investment portfolio stands at $5.2 bln, including $4.4 bln of Agency RMBS and $628 mln of to-be-announced securities forward contracts (TBAs).

• Co announces it has purchased group annuity contracts from Athene Holding (ATH), a retirement services company. Lockheed Martin will transfer approx $4.3 bln of its gross pension obligations and related plan assets for approximately 13,600 U.S. retirees and beneficiaries to Athene.
• Co expects to recognize a non-cash, non-operating settlement charge of approximately $4.50 per share in Q2.

• Reports Q4 (May) earnings of $0.90 per share, $0.08 better than the S&P Capital IQ Consensus of $0.82; revenues fell 0.8% year/year to $12.2 bln vs the $12.1 bln S&P Capital IQ Consensus.
• NIKE Direct reported revenues for the fourth quarter were $4.8 billion, up 7 percent compared to prior year and up 11 percent on a currency-neutral basis
• Wholesale reported revenues for the fourth quarter were $6.8 billion, down 7 percent compared to prior year and down 3 percent on a currency-neutral basis
• Gross margin for the fourth quarter decreased 80 basis points to 45 percent.
• Reports 25 percent growth in EMEA, 43 percent growth in APLA and 5 percent growth in North America, partially offset by a decline in Greater China.
• Share Repurchase Program: The company announced its Board of Directors has authorized a new four-year, $18 billion program to repurchase shares of NIKE's Class B Common Stock.

• Co announces the completion of its previously disclosed $175 mln accelerated share repurchase program.
• On June 24, co received final delivery of 5.2 mln shares under the ASR. When combined with the 3.3 mln upfront shares received at the inception of the ASR in March 2022, co repurchased 8.5 mln of its shares under the ASR at an average repurchase price of $20.68 per share.
• Co has repurchased a total of 9 mln shares for $186.7 mln, representing slightly over 14% of its outstanding shares.

The major indices did not move a whole lot in either direction today which is not necessarily a bad thing for sentiment after last week's rally. Similar rally efforts this year have been met with a tendency to sell into the strength.

A general lack of conviction on both sides of the tape could be seen in the advance-decline line. Market breadth at both the NYSE and Nasdaq was roughly flat today.

The major indices were pulled down by the mega caps. The Vanguard Mega Cap Growth ETF (MGK) closed down 1.0%. Relative weakness here is not completely surprising as the mega caps outperformed last week with a gain of 8.0%.

The broader market held up better on the day, evidenced by the more modest 0.1% decline in the Invesco S&P 500 Equal Weight ETF (RSP). Most mega cap constituents closed in the red with Amazon.com (AMZN 113.22, -3.24, -2.8%) exhibiting the largest loss. Apple (AAPL 141.66, +0.00, +0.0%), the best performing mega cap, closed flat after Reuters reported today that Supreme Court decided not to hear Apple's patent challenge with Qualcomm (QCOM 127.18, +2.08, +1.7%).

Further showing that the mega caps pulled down the broader market is the outperformance seen in small and mid cap stocks. The Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.3%) both closed with modest gains.

Of the 11 S&P 500 sectors, three closed in the green. Energy (+2.8%) was the leader by a decent margin followed by the defensive-oriented utilities (+0.8%) and health care (+0.4%) sectors. 

The top laggards were the consumer discretionary (-1.1%), communication services (-1.1%), materials (-0.8%), and information technology (-0.6%) sectors.

Separately, Treasury note yields settled the session near their highs of the day after some relatively soft auction results for the 2-yr and 5-yr notes. The 2-yr note yield rose six basis points to 3.12% while the 10-yr note yield rose seven basis points to 3.19%.

Reviewing today's economic data:

• Total durable goods orders increased 0.7% month-over-month (Briefing.com consensus +0.1%) following an unrevised 0.4% increase in April. Excluding transportation, durable goods orders also increased 0.7% (Briefing.com consensus +0.4%) following a downwardly revised 0.2% increase (from 0.3%) in April.
  • The key takeaway from the report is that business spending held up quite well in May, evidenced by the 0.5% increase in nondefense capital goods orders excluding aircraft.
• May Pending Home Sales 0.7% (Briefing.com consensus -3.5%); Prior was revised to -4.0% from -3.9%

Looking ahead to Tuesday, market participants will receive the following economic data: May advance goods trade deficit (prior -$105.90 bln), May advance Retail Inventories (prior 0.7%), and May advance Wholesale Inventories (prior 2.1%) at 8:30 a.m. ET. April FHFA Housing Price Index (prior 1.5%) and April S&P Case-Shiller Home Price Index (Briefing.com consensus 21.1%; prior 21.2%) at 9:00 a.m. ET.

The June Consumer Confidence reading (Briefing.com consensus 101.0; prior 106.4), released at 10:00 a.m. ET, will be watched closely after the June Consumer Sentiment Index was the lowest result on record.

• Dow Jones Industrial Average: -13.5% YTD
• S&P 500: -18.2% YTD
• S&P 400: -17.7% YTD
• Russell 2000: -21.1% YTD
• Nasdaq Composite: -26.3% YTD

• Co declared a special cash dividend of $2.00 per share payable on July 20, 2022 to shareholders of record as of the close of business on July 8, 2022.
• In addition, GFF has prepaid $300 million principal amount of its $800 million Term Loan B credit facility effective today, June 27, 2022. This prepayment permanently reduces the outstanding Term Loan B.

• Co announces that it has reached an agreement to amicably resolve its patent litigation against Stitch Industries, Inc. dba Joybird, a unit of La-Z-Boy (LZB).
• The lawsuit between the parties, captioned The Lovesac Company v. Stitch Industries, Inc. dba Joybird, Case No. 2:21-cv-09904-MCS-KS alleged infringement of United States Patent Nos. 7,213,885, 7,419,220, 8,783,778, 10,123,623, 10,154,733, and 10,806,261.
• The parties have reached a mutually agreeable business resolution and the lawsuit has been dismissed with prejudice.
• The terms of the parties' agreement are confidential.

• HPE Partner Ready Vantage is built to help partners adjust to today's changing market. The program focuses on partners with as-a-service practices and recognizes and develops partner expertise.
• Alongside the program, HPE also announced updates to the HPE Pro Series, new enhancements to Partner Connect, and a refresh to the HPE Partner Portal.