Nasdaq Markets Outlook

The Markets Outlook is a mostly graphical daily curated roundup of the markets and the economy from Nasdaq's IR team.

1) KEY TAKEAWAYS

1) Equities mostly LOWER + TYields MIXED while 10YR continues to climb

DJ -0.2% S&P500 -0.1% Nasdaq -0.3% R2K +0.2% Cdn TSX -0.3%

Stoxx Europe 600 -0.2% APAC stocks LOWER, 10YR TYield = 4.209%

Dollar HIGHER, Gold $1,902, WTI +0%, $81; Brent +0%, $85, Bitcoin $29,060

NOTABLE HEADLINES / Global economic growth concerns stemming from China

• China Shadow Bank misses dozens of payments as risks grow-BBG
• China's economic woes mount trust firm misses payments-RTRS
• Banks slash China growth forecasts, with JPMorgan seeing 4.8%-BBG
• China digs deeper into tool bag in grapple with investor gloom-BBG
• How much worse can China's economic slowdown get?-RTRS

* source: CNBC

2) Earnings: Better-than-feared Q2 earnings | Margin strength makes up for softer revenues

"Firms’ sentiment on the economy and demand weaker, but optimism on margins and capital returns" -Barclays Emmanuel Cau

* source: Barclays' Emmanuel Cau

3) 3 themes from 2Q 2023 conference calls: AI, US economic growth, and drivers of sales growth

Managements discussed the impact that recent advances in artificial intelligence (AI) will have on their businesses

While many management teams were pessimistic on the economy in late 2022 and following banking stress in March, sentiment has improved

Management commentary from 2Q earnings calls indicates that the drivers of sales growth have varied at the company level

* source: Goldman Sachs Global Investment Research

4) BofA Global Fund Manager Survey: Cash levels across institutional investors fall...lowest since Nov 21

* source: BofA Global Fund Manager Survey

5) Credit events a concern with monetary tightening...

* source: BofA Global Fund Manager Survey

6) Y'day's retail sales off to a strong start in Q3

* source: Oxford Economics

7) Supply chain bottlenecks continue to ease

* source: Oxford Economics

8) "After rebounding over the first seven months of the year, homebuilder confidence dropped sharply in August, as the drag on demand from higher mortgage rates more than offset the shift towards new homes thanks to a lack of existing homes for sale."

* source: Oxford Economics

9) The Week Ahead | retail sales + FOMC minutes = highlights

* source: Grindstone Intelligence

2) ESG, COMPILED BY NATHAN GREENE

OFF TODAY

3) MARKETS, MACRO, CORPORATE NEWS

• Fed minutes set to show only a minority saw end of tightening-BBG
• High-yield default rate to climb as pressures mount, Fitch says-BBG
• Higher-for-longer rates regime pressures US recession trades-RTRS
• Hedge funds dumped Chinese stocks in August, says Goldman-RTRS
• BlackRock, fund managers brace for even more scrutiny over China-BBG
• Japan investors snap up U.S. bonds, expecting end of rate hikes-Nikkei
• UK inflation pressure stays strong despite fall in headline rate-RTRS
• Industrial output jump gives euro zone growth small boost-RTRS
• Schumer, McConnell voice support for StopGap funding bill-Politico
• Intel to call off $5.4 billion tower deal without Chinese approval-BBG
• Sanofi was mystery bidder that lost Reata to Biogen-BBG
• Warburg, Kelso make bid for Femsa’s $5 billion envoy unit-BBG
• Vornado explores possible sale of Manhattan’s Farley building-BBG
• Imugene in $60m cash call for new licensing deal; Bells on ticket-AFR
• ONGC, four others vie for Fortum projects-MINT
• Core Lithium asks investors for $120m to smarten up-AFR
• Occidental to buy Canadian startup carbon engineering for $1.1 billion-BBG
• UAW presses for strike vote at Detroit Three automakers-RTRS
• U.S. Steel takeover talk rattles manufacturers-WSJ
• Tesla cuts China prices for the second time in three days-BBG
• TPG approaches EY about buying stake in consulting arm-FT
• Oil/Energy Headlines: 1) China is buying the most Iranian oil in a decade, Kpler says-BBG 2) US asks Iran to stop selling drones to Russia-FT 3) Venezuela rejects auction process that could lead to Citgo breakup-RTRS