0853 ET - Private employers added 98,000 jobs in June according to the latest ADP private payrolls report following a 122,000 gain in May. Economists polled by WSJ were expecting 110,000 in June. "The pace of hiring is telling a story of both supply and demand. We know it's taking people longer to find work, but there also are signs of labor supply constraints in certain industries," says Dr. Nela Richardson, Chief Economist of ADP in the report. June payroll numbers from the U.S. Labor department are due on Thursday and economists polled by WSJ expect 115,000 versus May's 172,000. The 10-year yield is 4.49% versus 4.42% Tuesday. The two-year yield is 4.19% compared to 4.14%. (patrick.sheridan@wsj.com)
0449 ET - Nike's emphasis on its sports business is showing early signs of paying off, though performance in China remains a drag on the company, Jefferies analysts write. The sportswear group's fiscal fourth-quarter results were better than feared, the analysts say. A renewed emphasis on sporting goods under Chief Executive Elliott Hill's "sport offense" was validated by a return to growth in Nike wholesale, the analysts say. However, weakness in direct sales through Nike stores and the company's app, as well as weakness in China, are the main challenges Nike faces. Shares fall 3.3% premarket, while European sports retailers also fall following the earnings. Adidas shares are down 1.3%, while Puma and JD Sports' London-listing drop 1.5% and 1.4%, respectively. (josephmichael.stonor@wsj.com)
0420 ET - Galderma could still raise guidance and beat expectations when it reports first-half results despite the U.S. Food and Drug Administration's decision not to approve its Relfydess injection, Jefferies analysts say in a research note. The decision has a minor effect on the Swiss skincare specialist's prospects, even if it drives near-term stock weakness, the analysts say. This poses no risk to the company's full-year guidance, and continuing strength in its dermatological skincare business means there is still room for an upgrade to top-line expectations, the analysts add. Shares in Galderma fall 5.6%. (adria.calatayud@wsj.com)
0420 ET - Galderma's failure to secure U.S. approval for its Relfydess product, a rival to AbbVie's Botox, doesn't shift the competitive landscape as rivals might face similar hurdles, Jefferies analysts say in a research note. The U.S. Food and Drug Administration's decision illustrates the challenges of producing neurotoxins like Relfydess, which are highly complex biologic drugs produced via fermentation and sensitive to subtle product variation, the analysts say. Daxxify--which competes with Relfydess and Botox in this market--also received multiple FDA rejection letters, they add. The decision doesn't reduce the likelihood that Relfydess will get U.S. approval, according to Jefferies. Shares in Galderma fall 5.3%. (adria.calatayud@wsj.com)
0244 ET - Galderma was hit by another U.S. Food and Drug Administration rejection for its Relfydess product and a U.S. launch this year no longer seems likely, Vontobel's Stefan Schneider says in a research note. The exact timing of the potential launch remains unknown as the Swiss skincare specialist awaits feedback from the FDA on a site visit, the analyst says. This is the second time Galderma is unsuccessful in an application for Relfydess, which was already declined by the FDA in 2023, the analyst adds. Vontobel removed U.S. expectations for Relfydess from its Galderma estimates after the first rejection, so the company's investment case remains intact, he says.(adria.calatayud@wsj.com)