Market Snapshot
| Dow | 34071.98 | +219.41 | (0.65%) | | Nasdaq | 13573.71 | -18.42 | (-0.14%) | | SP 500 | 4390.64 | +12.51 | (0.29%) | | 10-yr Note | -33/32 | 3.85 |
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| | NYSE | Adv 2023 | Dec 939 | Vol 823 mln | | Nasdaq | Adv 2602 | Dec 1777 | Vol 4.39 bln |
Industry Watch
| Strong: Financials, Materials, Industrials, Health Care, Energy, Real Estate |
| | Weak: Consumer Staples, Communication Services, Utilities |
Moving the Market
--Upward revision to Q1 GDP and downturn in initial jobless claims help temper hard landing concerns
-- All 23 banks pass the Fed's annual stress test
-- Micron says it is confident that industry bottom has already formed
-- Spike in Treasury yields following Q1 GDP and initial jobless claims reports
-- Excitement surrounding three IPOs today
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Closing Stock Market Summary
29-Jun-23 16:25 ET
Dow +269.76 at 34122.33, Nasdaq -0.42 at 13591.71, S&P +19.58 at 4397.71
[BRIEFING.COM] The broader stock market behaved well today, underpinned by some pleasing economic data, word that all 23 banks passed the Federal Reserve's annual stress test, and quarter-end rebalancing activity.
Small-cap stocks outperformed their larger peers, cyclical sectors outperformed countercyclical sectors, and value stocks outpaced growth stocks. That pattern was an offshoot of the understanding that weekly initial jobless claims for the week ending June 24 declined by 26,000 from the prior week to 239,000 and that consumer spending was stronger than thought in the first quarter, driving an upward revision to Q1 GDP growth to 2.0% from 1.3%.
That news provided a basis to favor more economically-sensitive stocks, which have trailed the mega-cap stocks throughout the second quarter and the year. In turn, it provided a basis for Treasuries to sell off on the belief that the good economic news will persuade the Fed to raise rates again and to keep them higher for longer. The 2-yr note yield jumped 16 basis points to 4.88% and the 10-yr note yield rose 14 basis points to 3.85%.
The U.S. Dollar Index followed suit with the rate-hike expectations, advancing 0.4% to 103.33.
The stock market tolerated the jump in market rates, focusing instead on the idea that the economy continues to defy recession expectations. Accordingly, today's best-performing sectors were financials (+1.7%), materials (+1.3%), energy (+1.1%), industrials (+0.9%), and real estate (+0.9%).
The financials were strong from the get go, riding the strength in the bank stocks and the investment banks, the latter of which were enthused by the completion of three IPOs today: Fidelis Insurance (FIHL 13.18, -0.82, -5.9%), Kodiak Gas Services (KGS 15.85, -0.15, -0.9%), and Savers Value Village (SVV 22.99, +4.99, +27.7%). The SPDR S&P Bank ETF (KBE) increased 1.8% while the SPDR S&P Regional Banking ETF (KRE) rose 1.9%.
JPMorgan Chase (JPM 143.46, +4.87, +3.5%) and Goldman Sachs (GS 323.24, +9.58, +3.1%) were the biggest winners in the Dow Jones Industrial Average but they had plenty of company. 22 of the 30 components ended with a gain.
In fact, the majority of publicly-traded stocks ended with a gain today. Advancers outpaced decliners by a better than 2-to-1 margin at the NYSE and by a roughly 13-to-9 margin at the Nasdaq. The Invesco S&P 500 Equal Weight ETF (RSP) increased 0.8%, finishing ahead of the Vanguard Mega-Cap Growth ETF (MGK), which was flat, by a large margin.
Micron (MU 64.33, -2.74, -4.1%), which reported its fiscal Q3 results after Wednesday's close, was not one of the winning stocks even though it said it had confidence that an industry bottom has already formed. Reportedly, investors were relatively disappointed in the chip maker's near-term revenue guidance being crimped by a reduced 2023 outlook for PC and smartphone unit volumes. That helped explain why Intel (INTC 32.91, -0.66, -2.0%) underperformed today as well.
Separately, small-cap stocks stood out today. The Russell 2000, driven by gains in its bank and energy stocks, increased 1.2% compared to a 0.5% gain for the S&P 500, which, to be fair, closed near its best levels of the session just below 4,400.
Overall trading volume was on the lighter side with just 823 million shares traded at the NYSE.
- Nasdaq Composite: +29.9% YTD
- S&P 500: +14.5% YTD
- Russell 2000: +5.5% YTD
- S&P Midcap 400: +6.8% YTD
- Dow Jones Industrial Average: +2.9% YTD
Reviewing today's economic data:
- The third estimate for Q1 GDP saw a strikingly large, upward revision to 2.0% from 1.3% (Briefing.com consensus 1.3%), as consumer spending proved to be stronger than thought, while the GDP Deflator was revised down to 4.1% from 4.2% (Briefing.com consensus 4.2%).
- Granted this is a backward-looking report, yet the key takeaway is that it underscores how the strength of the labor market fueled consumer spending in the first quarter and helped forestall any recession-like trajectory in the U.S. economy.
- Initial jobless claims for the week ending June 24 decreased by 26,000 to 239,000 (Briefing.com consensus 266,000) while continuing jobless claims for the week ending June 17 decreased by 19,000 to 1.742 million.
- In the recessions seen since 1980, initial jobless claims have averaged north of 375,000, so the key takeaway from today's report is that the labor market continues to be resilient, which is a good portent for the economy.
- May Pending Home Sales declined 2.7% month-over-month (Briefing.com consensus -0.8%) following a downwardly revised 0.4% decline (from 0.0%) in April.
Looking ahead to Friday, market participants will receive the following economic data:
- 8:30 a.m. ET: May Personal Income (Briefing.com consensus 0.4%; prior 0.4%), Personal Spending (Briefing.com consensus 0.3%; prior 0.8%), PCE Price Index (Briefing.com consensus 0.1%; prior 0.4%), and Core-PCE Price Index (Briefing.com consensus 0.3%; prior 0.4%)
- 10:00 a.m. ET: June University of Michigan Consumer Sentiment - Final (Briefing.com consensus 63.9; prior 63.9)
A look at Friday's trading catalysts
29-Jun-23 15:30 ET
Dow +252.51 at 34105.08, Nasdaq -18.31 at 13573.82, S&P +15.54 at 4393.67
[BRIEFING.COM] The stock market is in the home stretch of today's trading, respecting the mixed pattern seen since the open that has featured the underperformance of the Nasdaq Composite and positive showings from the other indices.
Economic data released before the open (Q1 GDP revision and weekly initial jobless claims) served as a catalyst for today's trading and economic data released before Friday's open is expected to be a catalyst in Friday's trading.
The economic release that will be a focal point is the May Personal Income and Spending Report, which includes the PCE Price Index and the core-PCE Price Index -- the Fed's preferred inflation gauge. Market participants will be spinning that number as one that is either friendly for the monetary policy outlook or unfriendly. The PCE Price Index was up 4.4% year-over-year in April (versus 4.2% in March) and the core-PCE Price Index was up 4.7% year-over-year in April (versus 4.6% in March). Market participants will want to see those numbers, particularly the core number, trending lower.
Another report certain to grab some extra attention is the earnings report from Dow component Nike (NKE 113.20, +0.17, +0.2%). Nike will report its quarterly results after today's close. Nike's stock has been a disappointment this year, down 3.3% versus a 14.4% gain for the market-cap weighted S&P 500, a 4.9% gain for the Equal-Weight S&P 500, and a 2.8% gain for the Dow Jones Industrial Average.
Small caps take the lead
29-Jun-23 15:00 ET
Dow +219.41 at 34071.98, Nasdaq -18.42 at 13573.71, S&P +12.51 at 4390.64
[BRIEFING.COM] The clock has changed today, yet the trading trend seen today hasn't deviated much from when the session began. We still have a market that is being led by the "others" today, which is to say those stocks that don't hold the label of being a mega-cap stock.
In particular, the small-cap stocks have been outperforming their larger peers. The Russell 2000, supported predominately by gains in its energy and bank components, is up 1.1%. The S&P Midcap 400 Index is up 0.9%.
Conversely, the Nasdaq 100 is down 0.4%, the Vanguard Mega-Cap Growth ETF (MGK) is down 0.2%, and the Russell 3000 Growth Index is flat.
It's a stretch at this point to say we are seeing a changing of the guard when it comes to leadership, yet it is typically viewed in a positive light when the "others" are leading and the broader market is holding up despite some weakness in the mega-cap space and rising Treasury yields.
That speaks to a healthy rotation within the stock market that is associated with bull market action; however, what's missing in the move is stronger trading volume. Volume equals conviction, and in this bull market regard, that conviction is still lacking.
Wells Fargo higher following Fed's stress test results, MKC slips after earnings
29-Jun-23 14:30 ET
Dow +208.30 at 34060.87, Nasdaq -28.39 at 13563.74, S&P +10.06 at 4388.19
[BRIEFING.COM] The S&P 500 (+0.23%) is firmly in second place on Thursday afternoon.
S&P 500 constituents Wells Fargo (WFC 42.33, +1.71, +4.21%), EQT Corp. (EQT 40.93, +1.18, +2.97%), and Stanley Black & Decker (SWK 94.46, +2.34, +2.54%) dot the top of the standings. WFC alongside other financial stocks moves higher following the Fed's stress test results which were out overnight, while EQT finds modest gains in part owing to gains in crude oil futures.
Meanwhile, CPG company McCormick (MKC 87.26, -4.59, -5.00%) is today's top laggard following earnings.
Gold lower on Thursday
29-Jun-23 14:00 ET
Dow +246.86 at 34099.43, Nasdaq -11.74 at 13580.39, S&P +14.47 at 4392.60
[BRIEFING.COM] With about two hours to go on Thursday the tech-heavy Nasdaq Composite (-0.09%) remains in the red.
Gold futures settled $4.30 lower (-0.2%) to $1,917.90/oz, extending week-to-date losses to about -0.6%.
Meanwhile, the U.S. Dollar Index is up about +0.4% to $103.29.
Good economic data, cautious-looking response
There wasn't much change in the major indices yesterday as market participants ingested the latest plate of policy remarks from Fed Chair Powell, which tasted a lot like prior servings.
Briefly, he said more tightening will likely be needed because of the strength of the labor market, that one shouldn't take rate hikes at consecutive meetings off the table, and that he thinks core inflation won't get back to the Fed's 2.0% target rate until 2025.
The fed funds futures market didn't react much at all to Mr. Powell's remarks, signifying that it still doesn't believe the Fed is going to raise rates more than once before the end of the year.
It will be interesting to see today if that perspective changes at all knowing that there has been a stream of some good economic news that has triggered a spike in Treasury yields and has taken some steam out of the equity futures market.
Currently, the S&P 500 futures, which had been up 17 points, are up four points and are trading 0.1% above fair value, the Nasdaq 100 futures, which had been up 70 points, are up three points and are trading in-line with fair value, and the Dow Jones Industrial Average futures, which had been up 100 points, are up 45 points and are trading 0.1% above fair value.
The third estimate for Q1 GDP saw a strikingly large, upward revision to 2.0% from 1.3% (Briefing.com consensus 1.3%), as consumer spending proved to be stronger than thought, while the GDP Deflator was revised down to 4.1% from 4.2% (Briefing.com consensus 4.2%).
Granted this is a backward-looking report, yet the key takeaway is that it underscores how the strength of the labor market fueled consumer spending in the first quarter and helped forestall any recession-like trajectory in the U.S. economy.
A more current view of the labor market has reinforced that perspective.
Initial jobless claims for the week ending June 24 decreased by 26,000 to 239,000 (Briefing.com consensus 266,000) while continuing jobless claims for the week ending June 17 decreased by 19,000 to 1.742 million.
In the recessions seen since 1980, initial jobless claims have averaged north of 375,000, so the key takeaway from today's report is that the labor market continues to be resilient, which is a good portent for the economy.
The Treasury market looks to be less enamored of this favorable view. The 2-yr note yield is up 16 basis points to 4.88% and the 10-yr note yield is up nine basis points to 3.80%.
Separately, all 23 banks passed the Fed's annual stress test and their stocks are taking advantage of the passing grade. The SPDR S&P Bank ETF (KBE) is up 1.5% in what one could reasonably call a relief trade. Micron (MU), meanwhile, is up 1.5% after reporting better-than-expected fiscal Q3 results and indicating that it is confident an industry bottom has already formed.
-- Patrick J. O'Hare, Briefing.com
BlackBerry extends its rally on explosive Q1 results; however, drilling deeper reveals flaws (BB)
BlackBerry (BB +7%) continues its rally after exceeding Q1 (May) estimates and reiterating its long-term financial targets yesterday after the close. The internet-of-things (IoT) and cybersecurity software developer has continually surprised investors, delivering widening earnings beats over the past three quarters. As a result, shares are up nearly 70% from December lows.
- BlackBerry also returned to operating in the green in Q1, posting adjusted EPS of $0.06, topping estimates by double-digits and marking one of the company's widest beats since abandoning smartphone production in 2016. Gross margin expansion of 700 bps yr/yr to 60% was a major contributor to BlackBerry's sizeable earnings outperformance.
- Meanwhile, revs more than doubled yr/yr to $373 mln, cruising past estimates. However, it is worth pointing out that the bulk of BlackBerry's Q1 revs emanated from a patent sale, which netted $218 mln. Backing out this gain, BlackBerry's sales growth was just under analyst expectations.
- In fact, management acknowledged that core IoT and Cybersecurity revs were on the lighter side in Q1, chalking it up to two primary factors. First, several industry players revised their development plans, causing delays related to BlackBerry's software. Second, the macroeconomic environment remains challenging, hurting regional production volumes and, thus, royalty revenue (~7% of FY23 revs).
- As has been the case over the past few quarters, the depressed macroeconomy is impacting a mixed set of OEMs and geographies. China's production during the first half of 2023 was significantly softer than anticipated. In contrast, in many other parts of the world, including North America and Europe, output was relatively steady, helped by easing supply constraints.
- Looking ahead, BlackBerry reiterated its three-year revenue CAGR provided last month within its IoT and Cybersecurity segments of +18-22% and +9-12%, respectively. BlackBerry also reaffirmed its FY24 (Feb) sales outlook of $665-700 mln and continued to forecast +12-15% annualized growth on a consolidated basis over the next three years (through FY26).
- Also, due to the volatile demand backdrop, BlackBerry noted that it will remain selective on potential investments and will continue to reduce its EPS loss and operating cash flow usage during FY24.
After registering sturdy Q4 (Feb) numbers in March, BlackBerry was confident the momentum witnessed during that quarter would carry into FY24. It is always encouraging to see management's bullish predictions materialize. Still, considerable risks surround BlackBerry, given that its software competes with prominent tech firms like Microsoft (MSFT) and familiar cybersecurity names like CrowdStrike (CRWD). This makes it highly susceptible to customer switching and competitive pressures. Even though the company continues to prove its doubters wrong, it would not be surprising to see the market steadily fade its post-Q1 rally, especially given that its revenue growth was tepid when removing the one-time gain on a patent sale.
McCormick not spicing it up as much as investors would have liked; upside not as large as Q1 (MKC)
McCormick (MKC -3%) is not spicing it up as much as investors would have liked with its Q2 (May) earnings results this morning. After a huge EPS beat in Q1, which followed three EPS misses, this supplier of spices, seasoning mixes, and condiments followed that up with a much smaller beat in Q2 with revenue being roughly in-line although a very slight miss. MKC also bumped up FY23 EPS guidance by more than the Q2 upside, which implies modest 2H upside. However, revenue guidance was just reaffirmed at +5-7%. In addition to earnings, MKC also named Brendan Foley as its new CEO, effective September 1.
- Breaking down the numbers a bit, Q2 revenue rose 8% yr/yr to $1.66 bln, or +10% constant currency (CC). Its CC sales growth reflected an 11% increase from pricing actions partially offset by a 1% volume and mix decline. Included in the volume decline is a net 1% increase from lapping prior year COVID-related disruption in China, its Kitchen Basics divestiture, and the exit of the Consumer business in Russia. It also includes a 1% volume decline from exiting low margin business.
- To understand how MKC is doing, we need to analyze its segments independently because each segment is affected by the market in different ways. Its two segments are Consumer (59% of FY22 revs) and Flavor Solutions (41%), which caters to food manufacturers and foodservice customers.
- On the Consumer side, sales increased 5% yr/yr to $912 mln, or +7% CC reflecting a 9% increase from pricing actions partially offset by a 2% volume decline. MKC kicked off the grilling season at the end of Q2 and MKC says the early results are good as several condiment brands delivered double-digit growth.
- FS segment sales jumped 12% to $747 mln, or +13% CC, reflecting a 14% increase from pricing actions. Q2 marked MKC's ninth consecutive quarter with double-digit CC sales growth. Growth was led by pricing actions in all three regions. MKC is now priced to cover current year inflation and it's continuing to recover cost inflation or pricing lag for the last two years. Seasonings growth was strong, including volume growth related to new products.
- MKC did note that in Asia it was lapping COVID-related disruptions in China. While its business is recovering in Asia, MKC concedes that its recovery was slower than internal expectations as the pace of reopening has proven to be more gradual and consumer spending was pressured by macro headwinds in the region. MKC remains optimistic for a more normal operating environment emerging in China as the year progresses and as it enters 2024.
Overall, investors are bit disappointed with MKC's Q2 results. MKC has been raising prices to catch up to rising input costs. This was among the reasons why MKC uncharacteristically reported three EPS misses last fiscal year. MKC has been closing the gap, but it sounds like it's still catching up from the past two years. China was another trouble spot. It sounds like the recovery there will take more time. As for the CEO news, he is a long time insider, so we would not expect a lot of changes. Maybe investors wanted to see an outsider provide a new perspective.
Micron says worst of inventory glut is behind it, but immediate upturn in demand not expected (MU)
Memory chip maker Micron (MU) saw revenue plunge by 57% in 3Q23 -- its largest yr/yr drop in over five years -- while posting its third consecutive quarterly net loss, but investors are also contemplating a meaningful recovery in the second half of the year. That expectation is tied to some encouraging commentary from MU CEO Sanjay Mehrotra, most notably including his proclamation that "the memory industry has passed through its trough in revenue" and that most PC and smartphone customers have worked through their excess inventories.
That doesn't mean that the current and near-term demand environment is booming.
- In fact, the midpoint of MU's Q4 revenue guidance of $3.7-$4.1 bln still indicates a yr/yr decline of about 41%. During the earnings call, MU lowered its 2023 outlook for PC and smartphone unit volumes, predicting PCs to decline by low double-digits and smartphones to fall by a mid-single-digit percentage.
- Previously, the company forecasted PC unit volume to decline by a mid-single-digit rate, with smartphones down slightly yr/yr.
Sluggish end market demand isn't the only challenge that MU is contending with.
- On May 22, the company confirmed that the Cyberspace Administration of China concluded that its products present a cybersecurity risk, notifying critical information infrastructure operators in China to stop using MU's products.
- Last night, MU warned that this action represents a significant headwind that's impacting its outlook and slowing its recovery. The company added that a low-double-digit percentage of its total global revenue is at risk.
These issues, though, are only part of the story.
- Although MU isn't currently experiencing the same kind of surge in AI-based revenue as NVIDIA (NVDA), the company did generate higher-than-expected revenue for memory chips inside AI servers.
- According to MU, AI servers require six-to-eight times the amount of DRAM content compared to a regular server, and three times the amount of NAND content. As data centers around the world transition to support AI technology, and as the PC and smartphone markets normalize, MU predicts that it will see a record TAM in 2025.
- Additionally, with the supply-demand situation improving, DRAM and NAND prices are also gradually rising. In turn, MU's margins are trending higher, although they remain subdued. In Q3, non-GAAP gross margin improved to (16.1)% compared to (31.4)% last quarter. Mr. Mehrotra stated that he expects margins to improve further as the year progresses.
After initially rallying in the wake of MU's better-than-expected report, shares have turned south as traders lock in profits following a 34% year-to-date gain for the stock. The move higher suggests that an anticipated 2H23 rebound in demand was already partly baked into the stock. While the worst of the supply-demand imbalance may be in the rearview mirror, the near-term outlook remains muted, especially with the recent action from the Cyberspace Administration of China.
Paychex's initial rally fades as light Q4 results and FY24 guidance keep shares in check (PAYX)
Paychex's (PAYX -1%) pockets are a tad light today following its Q4 (May) report. Shares initially jumped around +2% before pulling back, keeping pressure on Paychex's lengthy downward trend. The stock is down over 20% from August highs. The human capital management (HCM) software developer's headline numbers mostly aligned with consensus. Meanwhile, Paychex's initial FY24 outlook was relatively decent, projecting adjusted EPS above consensus and revs in line.
- Why are investors expressing their dissatisfaction? Earnings may have expanded 19.8% yr/yr to $0.97 per share, on top-line growth of 6.7% to $1.23 bln. However, following last quarter's outperformance, Paychex's headline Q4 results are insufficient to boost its stock above its 200-day moving average (113.72), which has acted as tough resistance throughout 2023. Additionally, given Paychex's track record, topping earnings and revenue estimates once over the past five years, the market likely anticipated another quarter of top and bottom-line upside.
- The shoulder-shrugging figures carried over into Paychex's guidance. Its FY24 adjusted EPS growth was a notable bright spot, forecasting growth of +9-10%, ahead of consensus. However, Paychex's sales growth outlook of +6-7% was merely in-line with analyst expectations. It also signaled a deceleration from the +8% jump delivered in FY23.
- Nevertheless, demand was still healthy during Q4. Revenue retention finished the year near record levels, and management remarked that it is noticing positive momentum trickling into FY24.
- Growth was fueled by Management Solutions, which gained 7% yr/yr to $905.2 mln. Factors boosting this segment included additional product penetration and more substantial price realization, resulting in higher revenue per client. Paychex anticipates demand to remain healthy during the front half of FY24, then moderating toward 2H24.
- Professional Employer Organization and Insurance Solutions sales growth of 5% lagged overall growth in the quarter. Paychex still experienced higher revenue per client. However, growth was tempered slightly by lower medical plan sales and participant volumes, which management expects to normalize as FY24 progresses.
- There were noticeable signs of distress, however, including client retention being adversely impacted by newly formed companies going out of business, primarily across lower revenue small clients. Meanwhile, Paychex noted that businesses of all sizes continued to deal with the complex regulatory environment, a competitive labor market, and tightening credit conditions.
Still, this was a decent quarter for Paychex; pricing stabilized, and demand remained relatively healthy. However, numbers came in rather light compared to previous quarters, generating some hesitancy amongst investors, who quickly sold today's initial relief rally. Paychex's Q4 results will likely keep expectations somewhat low ahead of peers' earnings over the next few months, including PCTY, PAYC, and WDAY.
Jefferies misses EPS estimates amid challenging climate, but "green shoots" appear in June (JEF)
Since the end of last quarter, the business climate has only become more challenging for investment banking firm Jefferies (JEF), as illustrated by the company's largest EPS miss in over four years. Already contending with macroeconomic headwinds in the form of higher interest rates and inflation, the fallout from the regional banking crisis and the uncertainty surrounding the U.S. debt ceiling created an even more difficult environment in Q2.
The company's earnings miss may be a harbinger for what's to come for other financial firms with significant investment banking and trading operations. On that note, Morgan Stanley (MS) and Goldman Sachs (GS) are scheduled to report Q2 earnings on July 18 and July 19, respectively.
- In JEF's Investment Banking segment, net revenue declined by 26% yr/yr to $510 mln, mostly due to weakness on the advisory side as M&A activity dried up amid tough conditions for deal making. On a qtr/qtr basis, advisory experienced a 14.5% drop in revenue, making the unit a laggard within the Investment Banking group.
- Conversely, momentum is building for equity underwriting following a dreadful period in 2022 when the IPO market froze up. Following a 70% yr/yr plunge in 4Q22, equity underwriting fees decreased by a far less drastic 20% last quarter, before jumping higher by 22% in Q2.
- The improvement reflects an IPO market that's gradually thawing out with nearly 50 deals pricing so far this year. For some perspective, there were only about 70 IPOs in all of 2022. However, the modest increase in IPO activity isn't the only driver behind the rebound in JEF's equity underwriting business.
- JEF's core strategy is to expand and grow its Investment Banking segment in order to take market share from the traditional leaders in the field, including MS and GS. Recently, the company has ramped up its hiring efforts, adding 21 new Managing Directors since the beginning of 2023. The hiring spree stands in stark contrast to other companies in the financial sector, some of which have announced significant layoffs, including in trading departments.
- Trading conditions were vastly improved compared to a year ago as JEF's Capital Markets unit saw a 30% yr/yr increase in revenue. Fixed income in particular was strong with trading revenue surging by 61% to $259.4 mln.
With JEF commenting that it increased market share in all of its businesses, and with the company stating that green shoots in the investment banking and capital markets businesses have popped up in June, it seems that Q2 may represent a turning point heading into the back half of the year. That possibility likely explains why the stock has turned higher this morning despite JEF's earnings miss.
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