Daily Brief United States: S&P 500 INDEX, Honeywell International, Ford Motor Co, Mondelez International, Procter & Gamble Co, HNI Corp, KLA-Tencor Corp, Norfolk Southern, Northrop Grumman, OpGen and more

• The 2023 multi-month rally in APAC markets started roughly in autumn 2022, in sync with the US market rally, then stalled when the US market began to pull back.
• We propose an analysis of the S&P500 MONTHLY, to find support levels to be used as a proxy for predicting APAC bloc’s markets supports.
• Main forecast: August/September could be down, but the current MRM pattern reading is bullish – the correction (currently at Q2 supports) should not last beyond end of September.

• Honeywell International delivered a mixed set of results for the quarter, with revenues well below Wall Street expectations but managed an earnings beat.
• The company’s organic sales increased year on year in the quarter, led by double-digit growth in commercial aerospace, process solutions, and UOP.
• We give Honeywell International a ‘Hold’ rating with a revised target price.

• Ford Motor delivered an all-around beat in the previous quarter.
• With over $47 billion in liquidity at the end of the quarter, Ford Motor has sufficient funds for future investments.
• We give Ford Motor Company a ‘Hold’ rating with a revised target price.

• Mondelez International managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• The company managed double-digit organic net revenue growth across each area, good pricing execution, decent profit dollar growth, and carried out considerable brand investments.
• We give Mondelez International a ‘Hold’ rating with a revised target price.

• Procter & Gamble surpassed the revenue and earnings expectations of Wall Street.
• Growth was widespread across the company’s segments, with organic sales increasing in all ten product categories.
• Fabric Care, Home Care, and Hair Care increased by high single digits, while Skin and Personal Care, Baby Care, Family Care, and Grooming increased by mid-singles.

• KLA Corporation delivered a positive result and managed an all-around beat in the last quarter.
• KLA demonstrated consistent execution amid a competitive market by delivering results at the upper end of the guidance and commitment range.
• We give KLA Corporation a ‘Hold rating with a revised target price.

• Norfolk Southern delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
• Materials, Automotive shipping was strong owing to new lane offerings and a weak local crop in the Southeast.
• Despite increased export volumes, the mix of export steam and export metallurgical coal shifted negatively, and lower seaborne coal prices resulted in poorer revenue per unit.

• Northrop Grumman managed to exceed analyst expectations in terms of revenue as well as earnings.
• The company’s revenues increased in the second quarter, with each of its 4 business sectors making significant contributions.
• Global demand for their products is also increasing as their allies increase defense spending to combat emerging threats.

Despite the active second quarter with developments across all operational fronts, OpGen’s cash concerns have increased the risk of the company as a going concern. With a cash balance of $3.2m at end Q223, OpGen has a cash runway into September 2023, meaning the need for immediate financing will be critical. Key quarterly highlights included the extension of the FIND R&D collaboration, a non-exclusive distribution agreement with Fisher Healthcare and new commercial contracts for both Unyvero and ARES services. While topline growth was a little subdued year-on-year due to one-off income in Q222, the operating loss for the period slightly improved to $5.2m (vs $5.3m in Q222), reflecting tighter cost controls and low clinical activity. If management is able to bridge the funding gap, its efforts in building the commercial groundwork could benefit the second half of the year across Unyvero, Acuitas and ARES. Due to the funding announcement, we have put our estimates and valuation on hold and will reassess as financing updates become available.