Daily Brief United States: Apollo Global Management , Chevron Corp, Amer Sports , Meta Platforms (Facebook), Guess? Inc, Axon Enterprise , iShares Russell 2000 ETF, USD, JAKKS Pacific , Ainos and more

• The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
• In this insight, we take a look at the upcoming constituent changes in the run up to the September 2024 index rebal event.
• We expect two regular changes during September. More interestingly, a couple of SP500 members are working on spin-offs which could trigger some high-impact deletions over the next few months.

• Chevron’s Q2 revenue is set to dip 0.6% YoY, with EPS projected to drop 4.5% YoY on the back of lower refinery margins and natural gas prices.
• Higher Brent crude prices and strong production may help Chevron partially offset Q2’s challenges.
• Unplanned downtime at two Australian LNG plants during Q2 raises concerns about a drop in production.

• Amer Sports (AS US) raised around US$1.3bn in its US IPO in Feb 2024, after pricing its IPO below its initial range.
• Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
• In this note, we talk about the upcoming lock-up expiry and deal dynamics.

• Meta is expected to report a 58% YoY increase in EPS to $4.71, with revenue climbing 20% YoY to $38.29B, driven by robust ad performance.
• Meta plans a 20% cut in Reality Labs’ budget through 2026, aiming to save $3B while shifting focus to upcoming hardware production.
• In Q1, increased daily active users and a 6% rise in average ad prices have boosted Meta’s ad revenue, despite heightened competition and regulatory pressures. Likely to continue.

• We are reiterating our Buy rating, $37 price target and projections for Guess?
• after visiting stores in Long Island and the Metropolitan New York City area.
• With the return of hot and humid weather, we believe Guess?

• Axon sells a public safety technology ecosystem that includes three main product groups, TASERs, body-worn cameras and other sensors, and evidence software, amongst a host of other software services, including virtual reality training.
• Axon’s solutions really seek to solve three of the biggest problems facing public safety, too many officers and too many suspects are dying from gunshots.
• Axon solves for this is as the monopoly provider of TASERs globally. A TASER can be used as an alternative to firearms to temporarily incapacitate a suspect so that they may be restrained with a much, much lower chance of doing physical harm.

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• Breadth has expanded significantly in recent weeks with the Russell 2000 (IWM) breaking above major 2.5-year resistance at $210; $210 is now critical support moving forward.
• Technology/Large-Cap growth/Nasdaq 100 (QQQ) has consolidated after getting extended, and with June 12 gap support on QQQ getting filled/breaking today, it appears this pullback is likely to continue.
• The SPX is breaking its 20-day MA. June 12th gap at 5375-5409 is potential support, but it appears a pullback in the SPX and QQQ may be headed to 5191/$449.

• Credit spreads have traded in a tight range despite various market events
• High yield spreads have tightened throughout the month
• Macro factors like growth, inflation, and Fed policies are more important for credit markets than the political environment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• We are reiterating our Buy rating, projections and $24 price target for JAKKS Pacific with the company announcing 2Q24 (June) results after the close on Wednesday.
• While we do not expect, nor have we projected, a strong 2Q, we do believe management will be upbeat on a number of key fronts, including: 1) Cleaning up inventory levels in anticipation of Holiday strength and new launches; 2) gearing up for more normalized Halloween costume demand; 3) initial launches for The Simpsons lines to key domestic and international retailers; 4) progress on the international expansion front; 5) the initial shipments for the Authentic Brands partnership and 6) potential demand for Moana 2 and Sonic the Hedgehog 3 Holiday movies.
• Further, we expect the balance sheet has remained debt free, cash rich and management will provide an update on potential return to shareholders.

• Enrolled first subject in feline oral disease study, paving way for animal health opportunity.
• The randomized, double- blind Veldona animal study will enroll 30 cats with feline chronic gingivostomatitis (FCGS) at a single Taiwan clinical site.
• Two dosage groups, a low dose (6,000 IU) and high dose (12,000 IU), will be evaluated. The first enrolled subject will be dosed later this week.