The Dow is Giving Bullish Vibes

Author

Faro Capital
July 21, 2023

Good Morning,

Yesterday S&P 500 and the Nasdaq dropped while the Dow Jones rose 163 points higher. This marks a nine-day streak of gains for the Dow. Johnson & Johnson was the biggest winner propping up the Dow higher. Tesla dropped after reporting Q2 gross margins hit a four-year low and Elon implying future price cuts.

Canadian stocks dropped yesterday, overturning the previous two days of gains.

Brazilian stocks on the Ibovespa rose a tad higher. Investors are digesting and analyzing the economic reforms presented by the Minister of Finance Fernando Haddad. The top performers were Natura & Co, Ambev, BB Seguridade, and Pao Acucar.

El Salvador trade gap drops in June. El Salvador reported a trade deficit of $721.3M in June vs a gap of $950.25M in May. Imports dropped 13.9% ($1.31B) and exports dropped 5.9% (588.9M), all on a year over year basis.

Markets: Before the Open

Top News Stories

Canada

  • Newmont Corp. to acquire Newcrest Mining, Newcrest interim CEO to depart (BNN)

  • Montreal, SAF+ Consortium, to supply aviation fuel to Air France-KLM Group (BNN)

  • Metro Worker in Toronto to avoid strike (BNN)

  • Goodfood Market report C$1.2M Q3 loss (BNN)

  • PrairieSky Royalty reported Q2 earnings of C$48M (BNN)

  • Quebec lends C$30M to Familiprix to automate distribution centers (MG)

  • Caisse de dépôt is interested in increasing Dubai assets (MG)

  • EV maker Lion Electric raised $142M to grow operations (MG)

  • Metro Vancouver homes are becoming unaffordable (VS)

U.S.

  • Walmart cuts price of Walmart+ (CNBC)

  • Johnson & Johnson beat earnings expectations (CNBC)

  • Homes sales in June drop (CNBC)

  • Netflix subscriptions rose 8% as password crackdowns continue (CNBC)

  • United Airlines reports record earnings (CNBC)

  • Barbie & Oppenheimer could give a shot in the arm to Hollywood (CNBC)

  • Carvana stock is on a tear this year (CNBC)

  • Morgan Stanley beats estimates (CNBC)

  • Messi’s signing could double revenues of Inter Miami (CNBC)

  • Bank of America beats estimates (CNBC)

  • Chipotle partners with operator to open in the Middle East (CNBC)

  • TSMC delays production of Arizona plant (CNBC)

  • AMC rethinks price changes to cinema seats (BBG)

  • Philip Morris to leave goal for $1B healthcare business (BBG)

  • U.S. sales first offshore wind rights in Gulf of Mexico (USN)

  • Copper miners feel the pinch prices drop & labor cost increase (USN)

Argentina

  • Companies look to raise funds before elections (BBG)

  • Delegation travels to D.C. for IMF talk (USN)

  • Argentina trade gap hits record (BAT)

  • Corporacion America International to invest $112M to build ammonia plant in Burgos, Spain (BAT)

  • Public debt hits a record $400B (BAT)

Brazil

  • Lula looks to increase relations with Africa during a trip to Cape Verde (USN)

  • Car maker WEG reports Q2 net profit up 50% (USN)

  • Lula will issue a counter proposal to Mercosur trade deal between 2-3 weeks (USN)

  • Economic activity dropped 2% in May (USN)

  • H&M to enter Brazil (USN)

  • Fruit exports rose 14% in 1H 2023 (RIO)

  • Mining sector grew 6% in 1H 2023 (RIO)

  • Beef exports drop 1%in 1H of 2023 (RIO)

  • Vale’s iron production rose 6% 1H of 2023 (RIO)

  • Government proposes taxes targeting investment funds (RIO)

  • Japan stops poultry imports from Santa Catarina due to brid flu (RIO)

Colombia

  • The Minister of Mines & Energy resigns due to corruption scandal (USN)

  • Gilinski ups his offer for Grupo Exito, $586.5M for 51% in the supermarket operator (USN)

  • Cementos Argos puts $130M for climate initiatives (PORT)

  • JetSmart Airlines announces new routes between Colombia & Peru (PORT)

  • Colombina is named one of the most sustainable companies in the world (PORT)

  • Supermarket Justo is coming to Colombia (ELT)

Cuba

  • Cuba woes continue with government import/export plan failure, country is struggling to earn foreign currency (USN)

Dominican Republic

  • Dominican Republic named top 5 avocado exporter in the world, exporting 634K tons a year (ELD)

  • Pacific Credit Rating give Banco Lafise a credit rating of A (ELD)

  • 75% of loans by Bagrícola is destined for the agricultural sector (ELD)

Panama

  • UN Shipping agency names Panama’s Dominguez as Secretary-General (USN)

  • Ex-President Martinelli sentenced to a 10-yrs in jail for money laundering (USN)

  • Ex-President Varela banned from entering the U.S. due to corruption (USN)

Peru 

  • Protests in copper mining regions continue (USN)

Mexico

  • Car production grew 16.2% in June (MB)

  • Hy2gen to conduct feasibility test for an off-grid ammonia plant in Campeche (MB)

  • EU to invest in Mexico renewable energy intiative (MB)

  • Fitch Ratings downgrades PEMEX’s credit rating (MB)

  • Santander launches first green mortgage (MB)

  • Dark web market to hit $8T in 2023 (MB)

Insights

WD-40 Company Q3 FY 2023 Highlights:

· Gross Margin: Q3 FY23 50.6% vs. Q3 FY22 47.7%

· YTD Net Sales were $396.8M, a 2% increase y/y

· Canadian Maintenance Product (MP) sales down 23% y/y

· Australia sales down 14% y/y

· China sales up 39% y/y

· U.S. MP sales up 21% y/y

Q3 FY23 Guidance: 

· Sales Growth between 3.5% & 7.5%

· Gross Margin 51% & 52%

· Net Sales $535M - $560M

Conagra Company FY2023 Highlights:

· Net sales increased 6.4%, Organic net sales rose 6.6%

· Operating Margin dropped 291bps to 8.8%

· Diluted EPS FY2023 $1.42

· Company's Board of Directors approved an increase of annual dividend from $1.32 per share to $1.40 per share. The Company's new quarterly dividend payment of $0.35 per share of Conagra common stock will be paid on August 31, 2023.

FY24 Guidance:

· Organic net sales increase expected to be 1%

· Adjusted operating margin between 16% - 16.5%

· Adjusted EPS between $2.70 - $2.75

Equity LifeStyle Properties Company Q2 FY2023 Highlights:

· Total Rev. $370M, $4.7M increase y/y

· Net Income $62.9M, $1.4M increase y/y

· Net Income per common share $0.34, $0.01 increase y/y

 

FY23 Guidance:

· Net income per Common share $1.59 – $1.69

· Non-Core Portfolio Income of $22.8M - $26.8M

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