The S&P 500 futures are unchanged and are trading roughly in line with fair value. The Nasdaq 100 futures are up 3 points and are trading slightly above fair value. The Dow Jones Industrial Average futures are down 1 point and are trading slightly below fair value.
Both buyers are sellers are lacking conviction this morning ahead of day two of Fed Chair Powell's testimony before Congress. Equity futures had been slightly higher earlier, but have deteriorated somewhat and now skew slightly negative.
Yesterday's close marked the first time since 1981 that the 2s10s spread was more than 100 basis points, reflecting worries about the Fed possibly taking rates too high and forcing a recession. The 2-yr note yield is up three basis points this morning at 5.04% and the 10-yr note yield is unchanged at 3.97%.
The weekly MBA Mortgage Application Index rose 7.4% with refinancing applications increasing 9.0% and purchase applications rising 7.0%.
In corporate news:
CrowdStrike (CRWD 132.00, +7.07, +5.7%): beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Diversey Holdings (DSEY 8.22, +2.27, +38.2%): to be acquired by Solenis for $4.6 bln, or $8.40/share
Shoals Technologies (SHLS 24.35, -2.20, -8.3%): prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Tesla (TSLA 184.87, -2.84, -1.5%) downgraded to Hold from Buy at Berenberg
Scorpio Tankers (STNG 61.74, +1.33, +2.2%): JPMorgan initiated coverage at Overweight
Occidental Petro (OXY 62.53, +1.68, +2.8%): 10% owner Berkshire Hathaway (BRK.A / BRK.B) bought another 5,801,791 shares worth ~$354.5 mln (3/3-3/7 transaction dates)
Stitch Fix (SFIX 4.5400, -0.43, -8.7%): misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Yext (YEXT 7.78, -0.71, -8.4%): beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Casey's General (CASY 211.51, +1.81, +0.9%): beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
United Natural Foods (UNFI 32.09, -8.87, -21.7%): misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Campbell Soup (CPB 52.95, +0.82, +1.6%): beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -2.4%, China's Shanghai Composite: -0.1%, India's Sensex: +0.2%, South Korea's Kospi: -1.3%, Australia's ASX All Ordinaries: -0.8%.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
In news:
Japan's Upper House will vote on the nominations to the Bank of Japan on Friday.
Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate.
Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
Major European indices trade near their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.2%.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
In news:
European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates.
Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose.
Tiremaker Continental expects rising sales and margin improvement in 2023.
U.S. equity futures:
S&P 500 Futures: -2 @ 3,984
DJIA Futures: -35 @ 32,822
Nasdaq 100 Futures: -3 @ 12,149
Overseas:
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Commodities:
Crude Oil -0.36 @ 77.22
Nat Gas -0.065 @ 2.622
Gold -1.25 @ 1818.75
Silver -0.001 @ 20.198
Copper +0.0353 @ 4.0103
Earnings/Guidance:
ABM Industries ( ABM ▾ 3.01% ) beats by $0.02, misses on revs; reaffirms FY23 EPS guidance
Adidas AG ( ADDYY ) reports Q4 results; extends appointment of CFO
Agiliti ( AGTI ▾ 4.26% ) misses by $0.01, beats on revs; guides FY23 EPS below consensus, revs in-line
Arlo Technologies ( ARLO ▾ 5.87% ) beats by $0.06, beats on revs; guides Q1 EPS mostly above consensus, revs above consensus
Campbell Soup ( CPB ▴ 0.34% ) beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Casey's General ( CASY ▾ 2.78% ) beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
Couchbase ( BASE ▾ 7.48% ) beats by $0.16, beats on revs; guides Q1 revs in-line; guides FY24 revs below consensus
Cricut ( CRCT ▾ 2.39% ) misses by $0.01, beats on revs (single est)
CrowdStrike ( CRWD ▾ 1.68% ) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Forward Air ( FWRD ▾ 1.67% ) provides update on 1Q23 performance; shipments per day decreased 6.7%, continues to target 2023 with higher net income per diluted share than 2022
Globalstar ( GSAT ▴ 0.87% ) reiterates its FY23 guidance
International Money Express ( IMXI ▾ 6.04% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs in-line
Korn/Ferry ( KFY ▾ 3.20% ) beats by $0.09, beats on revs; guides Q4 EPS in-line
LifeStance Health Group ( LFST ▾ 1.55% ) reports Q4 (Dec) results, beats on revs; guides FY23 revs above consensus
Life Time ( LTH ▾ 0.12% ) reports EPS in-line, revs in-line; guides Q1 revs in-line; reaffirms FY23 revs guidance
Maxeon Solar ( MAXN ▴ 0.18% ) reports Q4 results, beats on revs, guides Q1 revenue above consensus, FY23 revenue below consensus
Membership Collective Group ( MCG ▴ 6.50% ) beats on top and bottom lines; sees FY23 revs in-line with consensus
Nuvei Corporation ( NVEI ▾ 3.17% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs above consensus
REV Group ( REVG ▾ 4.84% ) beats by $0.13, beats on revs; reiterates FY23 revs in-line
Stellantis ( STLA ▾ 2.06% ) and other automotive groups in Italy announce agreement with unions to salary increases, according to Reuters
Stitch Fix ( SFIX ▾ 4.81% ) misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Sumo Logic ( SUMO ▾ 2.95% ) beats by $0.06, beats on revs; company to be acquired by entities affiliated with Francisco Partners Management
The Vita Coco Company ( COCO ▾ 4.11% ) misses by $0.09, beats on revs; guides FY23 revs below consensus
United Natural Foods ( UNFI ▾ 5.30% ) misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Vertex ( VERX ▾ 0.89% ) beats by $0.02, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
Viridian Therapeutics ( VRDN ▾ 3.07% ) misses by $0.41, misses on revs
W&T Offshore ( WTI ▾ 0.92% ) beats by $0.07, beats on revs
Yext ( YEXT ▾ 6.68% ) beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Zymeworks ( ZYME ▾ 1.86% ) beats by $1.60, beats on revs
News:
Biden administration seeking to increase Pentagon budget above $835 bln, according to Bloomberg
Albertsons ( ACI ▾ 0.10% ) established a retention program to incentivize and promote retention of a key group of Company employees to help consummate the Kroger (KR) merger
Ares Management ( ARES ▾ 6.78% ) reportedly backing Toys 'R' Us owner WHP Global to the tune of $1.6 bln valuation, according to Bloomberg
Baidu ( BIDU ▴ 0.73% ) to test AI chat feature next week, according to DigiTimes
Biogen ( BIIB ▾ 0.94% ) has elected Caroline Dorsa as Chair of the Board of Directors, effective immediately following the Company's 2023 Annual Meeting of Stockholders
BioMarin Pharmaceutical ( BMRN ▾ 2.69% ) announces that the FDA accepted New Drug Application (sNDA) for VOXZOGO (vosoritide) for injection to expand treatment in the United States to include children with achondroplasia under the age of 5
Boston Beer Co ( SAM ▾ 3.44% ) CFO Frank H Smalla stepping down to pursue another opportunity; Matthew D Murphy to serve as interim CFO
Catalyst Pharma ( CPRX ▾ 2.72% ) provided litigation updates
Chart Industries ( GTLS ▾ 8.23% ) and GenH2 execute MoU for hydrogen liquefaction systems
Cidara Therapeutics ( CDTX ▴ 4.00% ) Presents Preclinical Data on CD73-Targeting Drug-Fc Conjugate at the 2023 ESMO Targeted Anticancer Therapies Congress
Community Healthcare Trust ( CHCT ▾ 3.96% ) appoints David H Dupuy, former Interim CEO since February 10, as permanent CEO, effective March 6
DBV Technologies ( DBVT ▾ 4.14% ) Announces First Patient Screened in VITESSE Phase 3 Clinical Trial in Peanut-Allergic Children 4 - 7 Years Old
Ford Motor ( F ▾ 2.81% ) to discount Mustang Mach-E vehicle in China by $5,700 (40K yuan) until the end of April, according to Reuters
Genco Shipping & Trading ( GNK ▾ 1.40% ) COO Robert Hughes resigned in connection with an internal consolidation of the Company's business departments, following discussions that commenced on March 2
Geo Group ( GEO ▾ 1.53% ) awarded a new five-year contract, inclusive of renewal options, by Santa Clara County, California for the use of BI VeriWatch
Grupo Aeroportuario Del Sureste ( ASR ▾ 2.28% ) reports February 2023 traffic
Kaman ( KAMN ▾ 3.59% ) and PHI Aviation Announce Commercial Agreement
Mesoblast ( MESO ▾ 4.29% ) receives FDA acceptance of resubmission of BLA for Remestemcel-L
Palantir Technologies ( PLTR ▾ 4.42% ) selected by the State Department to provide the Bureau of Medical Services with data management services; contract is worth $99.6 mln over five years
Parsons ( PSN ▾ 1.05% ) establishes strategic partnership with Microsoft (MSFT), accelerating the digital transformation of global infrastructure
PayPal ( PYPL ▾ 3.29% ) CFO Blake Jorgensen stepping down, effective immediately; will remain with company as senior advisor through September 15, 2023
Pembina Pipeline ( PBA ▾ 1.44% ) approves renewal of share repurchase program
SAGE Therapeutics ( SAGE ▾ 8.15% ) and Biogen (BIIB) share update on FDA Advisory Committee for Zuranolone
Silvergate ( SI ▾ 11.27% ) looking to avoid shutdown, according to Bloomberg
Starbucks ( SBUX ▾ 0.92% ): Howard Schultz to testify about labor practices at Starbucks, according to the Wall Street Journal
The Vita Coco Company ( COCO ▾ 4.11% ) appoints Corey Baker to CFO role, effective immediately upon the filing of the company's annual report
Trevi Therapeutics ( TRVI ▾ 14.21% ) announced that the USPTO issued a notice of allowance for nalbuphine ER's method of treatment of chronic cough in idiopathic pulmonary fibrosis
Volaris Aviation ( VLRS ▾ 9.57% ) reports February 2023 traffic results; capacity increased by 20.4% yr/yr and RPMs increased by 21.2%
Walt Disney ( DIS ▾ 2.67% ) halts production of two Star Wars titles, according to Variety
WeWork ( WE ▾ 13.94% ) in talks to restructure over $3 bln in outstanding debt, according to the New York Times
M&A:
Diversey Holdings ( DSEY ▾ 0.37% ) to be acquired by Solenis for $4.6 bln, or $8.40/share
Kimball ( KBAL ▴ 0.32% ): HNI Corporation (HNI) to acquire Kimball International in a cash and stock transaction valued at approximately $485 mln
Marathon Petroleum ( MPC ▴ 0.13% ) announced the acquisition of a 49.9% interest in LF Bioenergy from Cresta Fund Management for $50 mln
Syndicate:
AerCap ( AER ▾ 1.55% ) files for 111,500,000 share common stock offering by selling shareholder
AerSale ( ASLE ▾ 2.80% ) files mixed securities shelf offering
Affirm ( AFRM ▾ 8.31% ) entered into an additional privately negotiated transaction with a holder of its outstanding 0% Convertible Senior Notes due 2026
Banc of California ( BANC ▾ 2.01% ) files mixed securities shelf offering
Bed Bath & Beyond ( BBBY ▴ 8.94% ) says it received additional proceeds from the previously announced equity offering
BridgeBio Pharma ( BBIO ▾ 8.88% ) prices offering of 8,823,530 shares of its common stock at a public offering price of $17.00 per share
Burlington Stores ( BURL ▴ 1.01% ) entered into privately negotiated exchange agreements with holders of $110.3 mln 2.25% Convertible Senior Notes due 2025
Citigroup ( C ▾ 0.53% ) files mixed securities shelf offering
Granite Constr ( GVA ▾ 2.59% ) awarded approximately $30 mln contract by the City of Lancaster, CA
Permian Resources ( PR ▾ 2.01% ) prices secondary offering of 27.5 mln shares of common stock at $11.00 per share
Portillo's ( PTLO ▾ 1.29% ) prices offering of 8.0 mln shares of common stock at $21.05 per share
Verona Pharma ( VRNA ▾ 3.22% ) files mixed securities shelf offering
Shoals Technologies ( SHLS ▾ 5.86% ) prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Southwest Gas ( SWX ▾ 0.59% ) commences an underwritten public offering of $215 mln in shares of its common stock
IPOs:
Softbank ( SFTBY ): Ziroom considering Hong Kong IPO to raise about $1 bln as soon as this year, according to Bloomberg
Expected to Price:
Atlas Energy Solutions (NYSE: AESI): The provider of frac sand and logistics services in the Permian Basis is expected to price its 18.0 M share IPO between $20-$23.
Gapping Up/Down
Gapping up:
MESO +13.9%, MAXN +13.2%, ZYME +12.4%, ARLO +12.3%, WE +7.9%, CRWD +6.8%, DBVT +6.6%, WTI +4.6%, COCO +4.4%, OXY +3%, BASE +2.6%, LFST +2.1%, VRNA +1.9%, RIVN +1.7%, VLRS +1.1%, PBA +0.9%, CASY +0.9%
Gapping down:
SOUN -10.5%, SHLS -8.4%, SFIX -6.8%, YEXT -5.9%, MBC -5.8%, PTLO -5%, BANC -4.9%, ASLE -4.8%, AGTI -4.3%, PR -3.3%, SWX -3.2%, IMXI -3.1%, MODN -2.2%, ACI -2%, CDTX -1.2%, AER -1%, SAM -0.9%, GSAT -0.8%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
AGNC Investment (AGNC) upgraded to Overweight from Neutral at JP Morgan; tgt $12.50
Atlantica Yield (AY) upgraded to Buy from Neutral at BofA Securities; tgt $32
CMS Energy (CMS) upgraded to Buy from Neutral at BofA Securities
CrowdStrike (CRWD) upgraded to Buy from Hold at WestPark Capital; tgt $203
Sea Limited (SE) upgraded to Buy from Hold at UOB Kay Hian; tgt $94.34
Downgrades:
Ares Commercial Real Estate (ACRE) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $12.50
Cara Therapeutics (CARA) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $6
Edwards Lifesciences (EW) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $78
Offerpad Solutions (OPAD) downgraded to Neutral from Overweight at JP Morgan
TDCX (TDCX) downgraded to Hold from Buy at HSBC; tgt $13
Tesla (TSLA) downgraded to Hold from Buy at Berenberg; tgt raised to $210
Zscaler (ZS) downgraded to Neutral from Outperform at KGI Securities; tgt $130
Others:
Axon (AXON) initiated with a Buy at Goldman; tgt $263
Bowlero (BOWL) initiated with a Buy at Canaccord Genuity; tgt $22
Karuna Therapeutics (KRTX) initiated with a Neutral at Cantor Fitzgerald; tgt $214
Lantheus Holdings (LNTH) initiated with a Mkt Outperform at JMP Securities; tgt $120
Napco Security Systems (NSSC) initiated with an Outperform at William Blair
Piedmont Lithium (PLL) initiated with an Outperform at Macquarie; tgt $140
Sabre (SABR) initiated with an Underperform at Bernstein; tgt $4
Scorpio Tankers (STNG) initiated with an Overweight at JP Morgan; tgt $87
Solid Power (SLDP) resumed with a Buy at Needham; tgt $5
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Mar 4 (Briefing.com Consensus NA; Prior -5.7%)
08:15 ET: ADP Employment Change for Feb (Briefing.com Consensus 195K; Prior 106K)
08:30 ET: Trade Balance for Jan (Briefing.com Consensus -$69.0B; Prior -$67.4B)
10:00 ET: JOLTS - Job Openings for Jan (Briefing.com Consensus NA; Prior 11.012M)
10:30 ET: EIA Crude Oil Inventories for Mar 4 (Briefing.com Consensus NA; Prior 1.17M)
14:00 ET: Fed's Beige Book for Mar
Earnings:
Monday (Mar 6)
Morning: AZUL CIEN RIDE
Afternoon: AVAV CVGW DOMO GWRE NTNX TCOM WW
Tuesday (Mar 7)
Morning: MASS DKS DOLE SWIM SE MCRB SQSP THO
Afternoon: AGTI ARLO CASY BASE CRCT CRWD SFIX WTI YEXT
Wednesday (Mar 8)
Morning: ABM BF.B CPB IMXI KFY LTH LFST REVG COCO UNFI VERX VRDN
Afternoon: ASAN ESTE EOLS MDB NDLS ONL SMRT SOVO
Thursday (Mar 9)
Morning: BJ GCO HLLY JD PSFE TTC
Afternoon: BIRD AOUT DOCU LOCO GPS HCP HRT AVO ORCL SWBI ULTA MTN WPM ZUMZ
Friday (Mar 10)
Morning: BKE GENI
Asia & Europe detail:
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Upper House will vote on the nominations to the Bank of Japan on Friday. Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate. Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
---Equity Markets---
Japan's Nikkei: +0.5%
Hong Kong's Hang Seng: -2.4%
China's Shanghai Composite: -0.1%
India's Sensex: +0.2%
South Korea's Kospi: -1.3%
Australia's ASX All Ordinaries: -0.8%
---FX---
USD/JPY: +0.1% to 137.25
USD/CNH: -0.3% to 6.9721
USD/INR: UNCH at 81.95
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Major European indices trade near their flat lines. European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates. Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose. Tiremaker Continental expects rising sales and margin improvement in 2023.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
---Equity Markets---
STOXX Europe 600: -0.1%
Germany's DAX: +0.2%
U.K.'s FTSE 100: -0.1%
France's CAC 40: -0.1%
Italy's FTSE MIB: +0.2%
Spain's IBEX 35: +0.2%
---FX---
EUR/USD: -0.1% to 1.0540
GBP/USD: +0.1% to 1.1842
USD/CHF: +0.1% to 0.9427The S&P 500 futures are unchanged and are trading roughly in line with fair value. The Nasdaq 100 futures are up 3 points and are trading slightly above fair value. The Dow Jones Industrial Average futures are down 1 point and are trading slightly below fair value.
Both buyers are sellers are lacking conviction this morning ahead of day two of Fed Chair Powell's testimony before Congress. Equity futures had been slightly higher earlier, but have deteriorated somewhat and now skew slightly negative.
Yesterday's close marked the first time since 1981 that the 2s10s spread was more than 100 basis points, reflecting worries about the Fed possibly taking rates too high and forcing a recession. The 2-yr note yield is up three basis points this morning at 5.04% and the 10-yr note yield is unchanged at 3.97%.
The weekly MBA Mortgage Application Index rose 7.4% with refinancing applications increasing 9.0% and purchase applications rising 7.0%.
In corporate news:
CrowdStrike (CRWD 132.00, +7.07, +5.7%): beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Diversey Holdings (DSEY 8.22, +2.27, +38.2%): to be acquired by Solenis for $4.6 bln, or $8.40/share
Shoals Technologies (SHLS 24.35, -2.20, -8.3%): prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Tesla (TSLA 184.87, -2.84, -1.5%) downgraded to Hold from Buy at Berenberg
Scorpio Tankers (STNG 61.74, +1.33, +2.2%): JPMorgan initiated coverage at Overweight
Occidental Petro (OXY 62.53, +1.68, +2.8%): 10% owner Berkshire Hathaway (BRK.A / BRK.B) bought another 5,801,791 shares worth ~$354.5 mln (3/3-3/7 transaction dates)
Stitch Fix (SFIX 4.5400, -0.43, -8.7%): misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Yext (YEXT 7.78, -0.71, -8.4%): beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Casey's General (CASY 211.51, +1.81, +0.9%): beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
United Natural Foods (UNFI 32.09, -8.87, -21.7%): misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Campbell Soup (CPB 52.95, +0.82, +1.6%): beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -2.4%, China's Shanghai Composite: -0.1%, India's Sensex: +0.2%, South Korea's Kospi: -1.3%, Australia's ASX All Ordinaries: -0.8%.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
In news:
Japan's Upper House will vote on the nominations to the Bank of Japan on Friday.
Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate.
Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
Major European indices trade near their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.2%.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
In news:
European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates.
Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose.
Tiremaker Continental expects rising sales and margin improvement in 2023.
U.S. equity futures:
S&P 500 Futures: -2 @ 3,984
DJIA Futures: -35 @ 32,822
Nasdaq 100 Futures: -3 @ 12,149
Overseas:
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Commodities:
Crude Oil -0.36 @ 77.22
Nat Gas -0.065 @ 2.622
Gold -1.25 @ 1818.75
Silver -0.001 @ 20.198
Copper +0.0353 @ 4.0103
Earnings/Guidance:
ABM Industries ( ABM ▾ 3.01% ) beats by $0.02, misses on revs; reaffirms FY23 EPS guidance
Adidas AG ( ADDYY ) reports Q4 results; extends appointment of CFO
Agiliti ( AGTI ▾ 4.26% ) misses by $0.01, beats on revs; guides FY23 EPS below consensus, revs in-line
Arlo Technologies ( ARLO ▾ 5.87% ) beats by $0.06, beats on revs; guides Q1 EPS mostly above consensus, revs above consensus
Campbell Soup ( CPB ▴ 0.34% ) beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Casey's General ( CASY ▾ 2.78% ) beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
Couchbase ( BASE ▾ 7.48% ) beats by $0.16, beats on revs; guides Q1 revs in-line; guides FY24 revs below consensus
Cricut ( CRCT ▾ 2.39% ) misses by $0.01, beats on revs (single est)
CrowdStrike ( CRWD ▾ 1.68% ) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Forward Air ( FWRD ▾ 1.67% ) provides update on 1Q23 performance; shipments per day decreased 6.7%, continues to target 2023 with higher net income per diluted share than 2022
Globalstar ( GSAT ▴ 0.87% ) reiterates its FY23 guidance
International Money Express ( IMXI ▾ 6.04% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs in-line
Korn/Ferry ( KFY ▾ 3.20% ) beats by $0.09, beats on revs; guides Q4 EPS in-line
LifeStance Health Group ( LFST ▾ 1.55% ) reports Q4 (Dec) results, beats on revs; guides FY23 revs above consensus
Life Time ( LTH ▾ 0.12% ) reports EPS in-line, revs in-line; guides Q1 revs in-line; reaffirms FY23 revs guidance
Maxeon Solar ( MAXN ▴ 0.18% ) reports Q4 results, beats on revs, guides Q1 revenue above consensus, FY23 revenue below consensus
Membership Collective Group ( MCG ▴ 6.50% ) beats on top and bottom lines; sees FY23 revs in-line with consensus
Nuvei Corporation ( NVEI ▾ 3.17% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs above consensus
REV Group ( REVG ▾ 4.84% ) beats by $0.13, beats on revs; reiterates FY23 revs in-line
Stellantis ( STLA ▾ 2.06% ) and other automotive groups in Italy announce agreement with unions to salary increases, according to Reuters
Stitch Fix ( SFIX ▾ 4.81% ) misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Sumo Logic ( SUMO ▾ 2.95% ) beats by $0.06, beats on revs; company to be acquired by entities affiliated with Francisco Partners Management
The Vita Coco Company ( COCO ▾ 4.11% ) misses by $0.09, beats on revs; guides FY23 revs below consensus
United Natural Foods ( UNFI ▾ 5.30% ) misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Vertex ( VERX ▾ 0.89% ) beats by $0.02, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
Viridian Therapeutics ( VRDN ▾ 3.07% ) misses by $0.41, misses on revs
W&T Offshore ( WTI ▾ 0.92% ) beats by $0.07, beats on revs
Yext ( YEXT ▾ 6.68% ) beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Zymeworks ( ZYME ▾ 1.86% ) beats by $1.60, beats on revs
News:
Biden administration seeking to increase Pentagon budget above $835 bln, according to Bloomberg
Albertsons ( ACI ▾ 0.10% ) established a retention program to incentivize and promote retention of a key group of Company employees to help consummate the Kroger (KR) merger
Ares Management ( ARES ▾ 6.78% ) reportedly backing Toys 'R' Us owner WHP Global to the tune of $1.6 bln valuation, according to Bloomberg
Baidu ( BIDU ▴ 0.73% ) to test AI chat feature next week, according to DigiTimes
Biogen ( BIIB ▾ 0.94% ) has elected Caroline Dorsa as Chair of the Board of Directors, effective immediately following the Company's 2023 Annual Meeting of Stockholders
BioMarin Pharmaceutical ( BMRN ▾ 2.69% ) announces that the FDA accepted New Drug Application (sNDA) for VOXZOGO (vosoritide) for injection to expand treatment in the United States to include children with achondroplasia under the age of 5
Boston Beer Co ( SAM ▾ 3.44% ) CFO Frank H Smalla stepping down to pursue another opportunity; Matthew D Murphy to serve as interim CFO
Catalyst Pharma ( CPRX ▾ 2.72% ) provided litigation updates
Chart Industries ( GTLS ▾ 8.23% ) and GenH2 execute MoU for hydrogen liquefaction systems
Cidara Therapeutics ( CDTX ▴ 4.00% ) Presents Preclinical Data on CD73-Targeting Drug-Fc Conjugate at the 2023 ESMO Targeted Anticancer Therapies Congress
Community Healthcare Trust ( CHCT ▾ 3.96% ) appoints David H Dupuy, former Interim CEO since February 10, as permanent CEO, effective March 6
DBV Technologies ( DBVT ▾ 4.14% ) Announces First Patient Screened in VITESSE Phase 3 Clinical Trial in Peanut-Allergic Children 4 - 7 Years Old
Ford Motor ( F ▾ 2.81% ) to discount Mustang Mach-E vehicle in China by $5,700 (40K yuan) until the end of April, according to Reuters
Genco Shipping & Trading ( GNK ▾ 1.40% ) COO Robert Hughes resigned in connection with an internal consolidation of the Company's business departments, following discussions that commenced on March 2
Geo Group ( GEO ▾ 1.53% ) awarded a new five-year contract, inclusive of renewal options, by Santa Clara County, California for the use of BI VeriWatch
Grupo Aeroportuario Del Sureste ( ASR ▾ 2.28% ) reports February 2023 traffic
Kaman ( KAMN ▾ 3.59% ) and PHI Aviation Announce Commercial Agreement
Mesoblast ( MESO ▾ 4.29% ) receives FDA acceptance of resubmission of BLA for Remestemcel-L
Palantir Technologies ( PLTR ▾ 4.42% ) selected by the State Department to provide the Bureau of Medical Services with data management services; contract is worth $99.6 mln over five years
Parsons ( PSN ▾ 1.05% ) establishes strategic partnership with Microsoft (MSFT), accelerating the digital transformation of global infrastructure
PayPal ( PYPL ▾ 3.29% ) CFO Blake Jorgensen stepping down, effective immediately; will remain with company as senior advisor through September 15, 2023
Pembina Pipeline ( PBA ▾ 1.44% ) approves renewal of share repurchase program
SAGE Therapeutics ( SAGE ▾ 8.15% ) and Biogen (BIIB) share update on FDA Advisory Committee for Zuranolone
Silvergate ( SI ▾ 11.27% ) looking to avoid shutdown, according to Bloomberg
Starbucks ( SBUX ▾ 0.92% ): Howard Schultz to testify about labor practices at Starbucks, according to the Wall Street Journal
The Vita Coco Company ( COCO ▾ 4.11% ) appoints Corey Baker to CFO role, effective immediately upon the filing of the company's annual report
Trevi Therapeutics ( TRVI ▾ 14.21% ) announced that the USPTO issued a notice of allowance for nalbuphine ER's method of treatment of chronic cough in idiopathic pulmonary fibrosis
Volaris Aviation ( VLRS ▾ 9.57% ) reports February 2023 traffic results; capacity increased by 20.4% yr/yr and RPMs increased by 21.2%
Walt Disney ( DIS ▾ 2.67% ) halts production of two Star Wars titles, according to Variety
WeWork ( WE ▾ 13.94% ) in talks to restructure over $3 bln in outstanding debt, according to the New York Times
M&A:
Diversey Holdings ( DSEY ▾ 0.37% ) to be acquired by Solenis for $4.6 bln, or $8.40/share
Kimball ( KBAL ▴ 0.32% ): HNI Corporation (HNI) to acquire Kimball International in a cash and stock transaction valued at approximately $485 mln
Marathon Petroleum ( MPC ▴ 0.13% ) announced the acquisition of a 49.9% interest in LF Bioenergy from Cresta Fund Management for $50 mln
Syndicate:
AerCap ( AER ▾ 1.55% ) files for 111,500,000 share common stock offering by selling shareholder
AerSale ( ASLE ▾ 2.80% ) files mixed securities shelf offering
Affirm ( AFRM ▾ 8.31% ) entered into an additional privately negotiated transaction with a holder of its outstanding 0% Convertible Senior Notes due 2026
Banc of California ( BANC ▾ 2.01% ) files mixed securities shelf offering
Bed Bath & Beyond ( BBBY ▴ 8.94% ) says it received additional proceeds from the previously announced equity offering
BridgeBio Pharma ( BBIO ▾ 8.88% ) prices offering of 8,823,530 shares of its common stock at a public offering price of $17.00 per share
Burlington Stores ( BURL ▴ 1.01% ) entered into privately negotiated exchange agreements with holders of $110.3 mln 2.25% Convertible Senior Notes due 2025
Citigroup ( C ▾ 0.53% ) files mixed securities shelf offering
Granite Constr ( GVA ▾ 2.59% ) awarded approximately $30 mln contract by the City of Lancaster, CA
Permian Resources ( PR ▾ 2.01% ) prices secondary offering of 27.5 mln shares of common stock at $11.00 per share
Portillo's ( PTLO ▾ 1.29% ) prices offering of 8.0 mln shares of common stock at $21.05 per share
Verona Pharma ( VRNA ▾ 3.22% ) files mixed securities shelf offering
Shoals Technologies ( SHLS ▾ 5.86% ) prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Southwest Gas ( SWX ▾ 0.59% ) commences an underwritten public offering of $215 mln in shares of its common stock
IPOs:
Softbank ( SFTBY ): Ziroom considering Hong Kong IPO to raise about $1 bln as soon as this year, according to Bloomberg
Expected to Price:
Atlas Energy Solutions (NYSE: AESI): The provider of frac sand and logistics services in the Permian Basis is expected to price its 18.0 M share IPO between $20-$23.
Gapping Up/Down
Gapping up:
MESO +13.9%, MAXN +13.2%, ZYME +12.4%, ARLO +12.3%, WE +7.9%, CRWD +6.8%, DBVT +6.6%, WTI +4.6%, COCO +4.4%, OXY +3%, BASE +2.6%, LFST +2.1%, VRNA +1.9%, RIVN +1.7%, VLRS +1.1%, PBA +0.9%, CASY +0.9%
Gapping down:
SOUN -10.5%, SHLS -8.4%, SFIX -6.8%, YEXT -5.9%, MBC -5.8%, PTLO -5%, BANC -4.9%, ASLE -4.8%, AGTI -4.3%, PR -3.3%, SWX -3.2%, IMXI -3.1%, MODN -2.2%, ACI -2%, CDTX -1.2%, AER -1%, SAM -0.9%, GSAT -0.8%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
AGNC Investment (AGNC) upgraded to Overweight from Neutral at JP Morgan; tgt $12.50
Atlantica Yield (AY) upgraded to Buy from Neutral at BofA Securities; tgt $32
CMS Energy (CMS) upgraded to Buy from Neutral at BofA Securities
CrowdStrike (CRWD) upgraded to Buy from Hold at WestPark Capital; tgt $203
Sea Limited (SE) upgraded to Buy from Hold at UOB Kay Hian; tgt $94.34
Downgrades:
Ares Commercial Real Estate (ACRE) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $12.50
Cara Therapeutics (CARA) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $6
Edwards Lifesciences (EW) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $78
Offerpad Solutions (OPAD) downgraded to Neutral from Overweight at JP Morgan
TDCX (TDCX) downgraded to Hold from Buy at HSBC; tgt $13
Tesla (TSLA) downgraded to Hold from Buy at Berenberg; tgt raised to $210
Zscaler (ZS) downgraded to Neutral from Outperform at KGI Securities; tgt $130
Others:
Axon (AXON) initiated with a Buy at Goldman; tgt $263
Bowlero (BOWL) initiated with a Buy at Canaccord Genuity; tgt $22
Karuna Therapeutics (KRTX) initiated with a Neutral at Cantor Fitzgerald; tgt $214
Lantheus Holdings (LNTH) initiated with a Mkt Outperform at JMP Securities; tgt $120
Napco Security Systems (NSSC) initiated with an Outperform at William Blair
Piedmont Lithium (PLL) initiated with an Outperform at Macquarie; tgt $140
Sabre (SABR) initiated with an Underperform at Bernstein; tgt $4
Scorpio Tankers (STNG) initiated with an Overweight at JP Morgan; tgt $87
Solid Power (SLDP) resumed with a Buy at Needham; tgt $5
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Mar 4 (Briefing.com Consensus NA; Prior -5.7%)
08:15 ET: ADP Employment Change for Feb (Briefing.com Consensus 195K; Prior 106K)
08:30 ET: Trade Balance for Jan (Briefing.com Consensus -$69.0B; Prior -$67.4B)
10:00 ET: JOLTS - Job Openings for Jan (Briefing.com Consensus NA; Prior 11.012M)
10:30 ET: EIA Crude Oil Inventories for Mar 4 (Briefing.com Consensus NA; Prior 1.17M)
14:00 ET: Fed's Beige Book for Mar
Earnings:
Monday (Mar 6)
Morning: AZUL CIEN RIDE
Afternoon: AVAV CVGW DOMO GWRE NTNX TCOM WW
Tuesday (Mar 7)
Morning: MASS DKS DOLE SWIM SE MCRB SQSP THO
Afternoon: AGTI ARLO CASY BASE CRCT CRWD SFIX WTI YEXT
Wednesday (Mar 8)
Morning: ABM BF.B CPB IMXI KFY LTH LFST REVG COCO UNFI VERX VRDN
Afternoon: ASAN ESTE EOLS MDB NDLS ONL SMRT SOVO
Thursday (Mar 9)
Morning: BJ GCO HLLY JD PSFE TTC
Afternoon: BIRD AOUT DOCU LOCO GPS HCP HRT AVO ORCL SWBI ULTA MTN WPM ZUMZ
Friday (Mar 10)
Morning: BKE GENI
Asia & Europe detail:
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Upper House will vote on the nominations to the Bank of Japan on Friday. Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate. Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
---Equity Markets---
Japan's Nikkei: +0.5%
Hong Kong's Hang Seng: -2.4%
China's Shanghai Composite: -0.1%
India's Sensex: +0.2%
South Korea's Kospi: -1.3%
Australia's ASX All Ordinaries: -0.8%
---FX---
USD/JPY: +0.1% to 137.25
USD/CNH: -0.3% to 6.9721
USD/INR: UNCH at 81.95
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Major European indices trade near their flat lines. European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates. Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose. Tiremaker Continental expects rising sales and margin improvement in 2023.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
---Equity Markets---
STOXX Europe 600: -0.1%
Germany's DAX: +0.2%
U.K.'s FTSE 100: -0.1%
France's CAC 40: -0.1%
Italy's FTSE MIB: +0.2%
Spain's IBEX 35: +0.2%
---FX---
EUR/USD: -0.1% to 1.0540
GBP/USD: +0.1% to 1.1842
USD/CHF: +0.1% to 0.9427The S&P 500 futures are unchanged and are trading roughly in line with fair value. The Nasdaq 100 futures are up 3 points and are trading slightly above fair value. The Dow Jones Industrial Average futures are down 1 point and are trading slightly below fair value.
Both buyers are sellers are lacking conviction this morning ahead of day two of Fed Chair Powell's testimony before Congress. Equity futures had been slightly higher earlier, but have deteriorated somewhat and now skew slightly negative.
Yesterday's close marked the first time since 1981 that the 2s10s spread was more than 100 basis points, reflecting worries about the Fed possibly taking rates too high and forcing a recession. The 2-yr note yield is up three basis points this morning at 5.04% and the 10-yr note yield is unchanged at 3.97%.
The weekly MBA Mortgage Application Index rose 7.4% with refinancing applications increasing 9.0% and purchase applications rising 7.0%.
In corporate news:
CrowdStrike (CRWD 132.00, +7.07, +5.7%): beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Diversey Holdings (DSEY 8.22, +2.27, +38.2%): to be acquired by Solenis for $4.6 bln, or $8.40/share
Shoals Technologies (SHLS 24.35, -2.20, -8.3%): prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Tesla (TSLA 184.87, -2.84, -1.5%) downgraded to Hold from Buy at Berenberg
Scorpio Tankers (STNG 61.74, +1.33, +2.2%): JPMorgan initiated coverage at Overweight
Occidental Petro (OXY 62.53, +1.68, +2.8%): 10% owner Berkshire Hathaway (BRK.A / BRK.B) bought another 5,801,791 shares worth ~$354.5 mln (3/3-3/7 transaction dates)
Stitch Fix (SFIX 4.5400, -0.43, -8.7%): misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Yext (YEXT 7.78, -0.71, -8.4%): beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Casey's General (CASY 211.51, +1.81, +0.9%): beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
United Natural Foods (UNFI 32.09, -8.87, -21.7%): misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Campbell Soup (CPB 52.95, +0.82, +1.6%): beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -2.4%, China's Shanghai Composite: -0.1%, India's Sensex: +0.2%, South Korea's Kospi: -1.3%, Australia's ASX All Ordinaries: -0.8%.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
In news:
Japan's Upper House will vote on the nominations to the Bank of Japan on Friday.
Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate.
Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
Major European indices trade near their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.2%.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
In news:
European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates.
Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose.
Tiremaker Continental expects rising sales and margin improvement in 2023.
U.S. equity futures:
S&P 500 Futures: -2 @ 3,984
DJIA Futures: -35 @ 32,822
Nasdaq 100 Futures: -3 @ 12,149
Overseas:
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Commodities:
Crude Oil -0.36 @ 77.22
Nat Gas -0.065 @ 2.622
Gold -1.25 @ 1818.75
Silver -0.001 @ 20.198
Copper +0.0353 @ 4.0103
Earnings/Guidance:
ABM Industries ( ABM ▾ 3.01% ) beats by $0.02, misses on revs; reaffirms FY23 EPS guidance
Adidas AG ( ADDYY ) reports Q4 results; extends appointment of CFO
Agiliti ( AGTI ▾ 4.26% ) misses by $0.01, beats on revs; guides FY23 EPS below consensus, revs in-line
Arlo Technologies ( ARLO ▾ 5.87% ) beats by $0.06, beats on revs; guides Q1 EPS mostly above consensus, revs above consensus
Campbell Soup ( CPB ▴ 0.34% ) beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Casey's General ( CASY ▾ 2.78% ) beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
Couchbase ( BASE ▾ 7.48% ) beats by $0.16, beats on revs; guides Q1 revs in-line; guides FY24 revs below consensus
Cricut ( CRCT ▾ 2.39% ) misses by $0.01, beats on revs (single est)
CrowdStrike ( CRWD ▾ 1.68% ) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Forward Air ( FWRD ▾ 1.67% ) provides update on 1Q23 performance; shipments per day decreased 6.7%, continues to target 2023 with higher net income per diluted share than 2022
Globalstar ( GSAT ▴ 0.87% ) reiterates its FY23 guidance
International Money Express ( IMXI ▾ 6.04% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs in-line
Korn/Ferry ( KFY ▾ 3.20% ) beats by $0.09, beats on revs; guides Q4 EPS in-line
LifeStance Health Group ( LFST ▾ 1.55% ) reports Q4 (Dec) results, beats on revs; guides FY23 revs above consensus
Life Time ( LTH ▾ 0.12% ) reports EPS in-line, revs in-line; guides Q1 revs in-line; reaffirms FY23 revs guidance
Maxeon Solar ( MAXN ▴ 0.18% ) reports Q4 results, beats on revs, guides Q1 revenue above consensus, FY23 revenue below consensus
Membership Collective Group ( MCG ▴ 6.50% ) beats on top and bottom lines; sees FY23 revs in-line with consensus
Nuvei Corporation ( NVEI ▾ 3.17% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs above consensus
REV Group ( REVG ▾ 4.84% ) beats by $0.13, beats on revs; reiterates FY23 revs in-line
Stellantis ( STLA ▾ 2.06% ) and other automotive groups in Italy announce agreement with unions to salary increases, according to Reuters
Stitch Fix ( SFIX ▾ 4.81% ) misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Sumo Logic ( SUMO ▾ 2.95% ) beats by $0.06, beats on revs; company to be acquired by entities affiliated with Francisco Partners Management
The Vita Coco Company ( COCO ▾ 4.11% ) misses by $0.09, beats on revs; guides FY23 revs below consensus
United Natural Foods ( UNFI ▾ 5.30% ) misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Vertex ( VERX ▾ 0.89% ) beats by $0.02, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
Viridian Therapeutics ( VRDN ▾ 3.07% ) misses by $0.41, misses on revs
W&T Offshore ( WTI ▾ 0.92% ) beats by $0.07, beats on revs
Yext ( YEXT ▾ 6.68% ) beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Zymeworks ( ZYME ▾ 1.86% ) beats by $1.60, beats on revs
News:
Biden administration seeking to increase Pentagon budget above $835 bln, according to Bloomberg
Albertsons ( ACI ▾ 0.10% ) established a retention program to incentivize and promote retention of a key group of Company employees to help consummate the Kroger (KR) merger
Ares Management ( ARES ▾ 6.78% ) reportedly backing Toys 'R' Us owner WHP Global to the tune of $1.6 bln valuation, according to Bloomberg
Baidu ( BIDU ▴ 0.73% ) to test AI chat feature next week, according to DigiTimes
Biogen ( BIIB ▾ 0.94% ) has elected Caroline Dorsa as Chair of the Board of Directors, effective immediately following the Company's 2023 Annual Meeting of Stockholders
BioMarin Pharmaceutical ( BMRN ▾ 2.69% ) announces that the FDA accepted New Drug Application (sNDA) for VOXZOGO (vosoritide) for injection to expand treatment in the United States to include children with achondroplasia under the age of 5
Boston Beer Co ( SAM ▾ 3.44% ) CFO Frank H Smalla stepping down to pursue another opportunity; Matthew D Murphy to serve as interim CFO
Catalyst Pharma ( CPRX ▾ 2.72% ) provided litigation updates
Chart Industries ( GTLS ▾ 8.23% ) and GenH2 execute MoU for hydrogen liquefaction systems
Cidara Therapeutics ( CDTX ▴ 4.00% ) Presents Preclinical Data on CD73-Targeting Drug-Fc Conjugate at the 2023 ESMO Targeted Anticancer Therapies Congress
Community Healthcare Trust ( CHCT ▾ 3.96% ) appoints David H Dupuy, former Interim CEO since February 10, as permanent CEO, effective March 6
DBV Technologies ( DBVT ▾ 4.14% ) Announces First Patient Screened in VITESSE Phase 3 Clinical Trial in Peanut-Allergic Children 4 - 7 Years Old
Ford Motor ( F ▾ 2.81% ) to discount Mustang Mach-E vehicle in China by $5,700 (40K yuan) until the end of April, according to Reuters
Genco Shipping & Trading ( GNK ▾ 1.40% ) COO Robert Hughes resigned in connection with an internal consolidation of the Company's business departments, following discussions that commenced on March 2
Geo Group ( GEO ▾ 1.53% ) awarded a new five-year contract, inclusive of renewal options, by Santa Clara County, California for the use of BI VeriWatch
Grupo Aeroportuario Del Sureste ( ASR ▾ 2.28% ) reports February 2023 traffic
Kaman ( KAMN ▾ 3.59% ) and PHI Aviation Announce Commercial Agreement
Mesoblast ( MESO ▾ 4.29% ) receives FDA acceptance of resubmission of BLA for Remestemcel-L
Palantir Technologies ( PLTR ▾ 4.42% ) selected by the State Department to provide the Bureau of Medical Services with data management services; contract is worth $99.6 mln over five years
Parsons ( PSN ▾ 1.05% ) establishes strategic partnership with Microsoft (MSFT), accelerating the digital transformation of global infrastructure
PayPal ( PYPL ▾ 3.29% ) CFO Blake Jorgensen stepping down, effective immediately; will remain with company as senior advisor through September 15, 2023
Pembina Pipeline ( PBA ▾ 1.44% ) approves renewal of share repurchase program
SAGE Therapeutics ( SAGE ▾ 8.15% ) and Biogen (BIIB) share update on FDA Advisory Committee for Zuranolone
Silvergate ( SI ▾ 11.27% ) looking to avoid shutdown, according to Bloomberg
Starbucks ( SBUX ▾ 0.92% ): Howard Schultz to testify about labor practices at Starbucks, according to the Wall Street Journal
The Vita Coco Company ( COCO ▾ 4.11% ) appoints Corey Baker to CFO role, effective immediately upon the filing of the company's annual report
Trevi Therapeutics ( TRVI ▾ 14.21% ) announced that the USPTO issued a notice of allowance for nalbuphine ER's method of treatment of chronic cough in idiopathic pulmonary fibrosis
Volaris Aviation ( VLRS ▾ 9.57% ) reports February 2023 traffic results; capacity increased by 20.4% yr/yr and RPMs increased by 21.2%
Walt Disney ( DIS ▾ 2.67% ) halts production of two Star Wars titles, according to Variety
WeWork ( WE ▾ 13.94% ) in talks to restructure over $3 bln in outstanding debt, according to the New York Times
M&A:
Diversey Holdings ( DSEY ▾ 0.37% ) to be acquired by Solenis for $4.6 bln, or $8.40/share
Kimball ( KBAL ▴ 0.32% ): HNI Corporation (HNI) to acquire Kimball International in a cash and stock transaction valued at approximately $485 mln
Marathon Petroleum ( MPC ▴ 0.13% ) announced the acquisition of a 49.9% interest in LF Bioenergy from Cresta Fund Management for $50 mln
Syndicate:
AerCap ( AER ▾ 1.55% ) files for 111,500,000 share common stock offering by selling shareholder
AerSale ( ASLE ▾ 2.80% ) files mixed securities shelf offering
Affirm ( AFRM ▾ 8.31% ) entered into an additional privately negotiated transaction with a holder of its outstanding 0% Convertible Senior Notes due 2026
Banc of California ( BANC ▾ 2.01% ) files mixed securities shelf offering
Bed Bath & Beyond ( BBBY ▴ 8.94% ) says it received additional proceeds from the previously announced equity offering
BridgeBio Pharma ( BBIO ▾ 8.88% ) prices offering of 8,823,530 shares of its common stock at a public offering price of $17.00 per share
Burlington Stores ( BURL ▴ 1.01% ) entered into privately negotiated exchange agreements with holders of $110.3 mln 2.25% Convertible Senior Notes due 2025
Citigroup ( C ▾ 0.53% ) files mixed securities shelf offering
Granite Constr ( GVA ▾ 2.59% ) awarded approximately $30 mln contract by the City of Lancaster, CA
Permian Resources ( PR ▾ 2.01% ) prices secondary offering of 27.5 mln shares of common stock at $11.00 per share
Portillo's ( PTLO ▾ 1.29% ) prices offering of 8.0 mln shares of common stock at $21.05 per share
Verona Pharma ( VRNA ▾ 3.22% ) files mixed securities shelf offering
Shoals Technologies ( SHLS ▾ 5.86% ) prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Southwest Gas ( SWX ▾ 0.59% ) commences an underwritten public offering of $215 mln in shares of its common stock
IPOs:
Softbank ( SFTBY ): Ziroom considering Hong Kong IPO to raise about $1 bln as soon as this year, according to Bloomberg
Expected to Price:
Atlas Energy Solutions (NYSE: AESI): The provider of frac sand and logistics services in the Permian Basis is expected to price its 18.0 M share IPO between $20-$23.
Gapping Up/Down
Gapping up:
MESO +13.9%, MAXN +13.2%, ZYME +12.4%, ARLO +12.3%, WE +7.9%, CRWD +6.8%, DBVT +6.6%, WTI +4.6%, COCO +4.4%, OXY +3%, BASE +2.6%, LFST +2.1%, VRNA +1.9%, RIVN +1.7%, VLRS +1.1%, PBA +0.9%, CASY +0.9%
Gapping down:
SOUN -10.5%, SHLS -8.4%, SFIX -6.8%, YEXT -5.9%, MBC -5.8%, PTLO -5%, BANC -4.9%, ASLE -4.8%, AGTI -4.3%, PR -3.3%, SWX -3.2%, IMXI -3.1%, MODN -2.2%, ACI -2%, CDTX -1.2%, AER -1%, SAM -0.9%, GSAT -0.8%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
AGNC Investment (AGNC) upgraded to Overweight from Neutral at JP Morgan; tgt $12.50
Atlantica Yield (AY) upgraded to Buy from Neutral at BofA Securities; tgt $32
CMS Energy (CMS) upgraded to Buy from Neutral at BofA Securities
CrowdStrike (CRWD) upgraded to Buy from Hold at WestPark Capital; tgt $203
Sea Limited (SE) upgraded to Buy from Hold at UOB Kay Hian; tgt $94.34
Downgrades:
Ares Commercial Real Estate (ACRE) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $12.50
Cara Therapeutics (CARA) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $6
Edwards Lifesciences (EW) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $78
Offerpad Solutions (OPAD) downgraded to Neutral from Overweight at JP Morgan
TDCX (TDCX) downgraded to Hold from Buy at HSBC; tgt $13
Tesla (TSLA) downgraded to Hold from Buy at Berenberg; tgt raised to $210
Zscaler (ZS) downgraded to Neutral from Outperform at KGI Securities; tgt $130
Others:
Axon (AXON) initiated with a Buy at Goldman; tgt $263
Bowlero (BOWL) initiated with a Buy at Canaccord Genuity; tgt $22
Karuna Therapeutics (KRTX) initiated with a Neutral at Cantor Fitzgerald; tgt $214
Lantheus Holdings (LNTH) initiated with a Mkt Outperform at JMP Securities; tgt $120
Napco Security Systems (NSSC) initiated with an Outperform at William Blair
Piedmont Lithium (PLL) initiated with an Outperform at Macquarie; tgt $140
Sabre (SABR) initiated with an Underperform at Bernstein; tgt $4
Scorpio Tankers (STNG) initiated with an Overweight at JP Morgan; tgt $87
Solid Power (SLDP) resumed with a Buy at Needham; tgt $5
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Mar 4 (Briefing.com Consensus NA; Prior -5.7%)
08:15 ET: ADP Employment Change for Feb (Briefing.com Consensus 195K; Prior 106K)
08:30 ET: Trade Balance for Jan (Briefing.com Consensus -$69.0B; Prior -$67.4B)
10:00 ET: JOLTS - Job Openings for Jan (Briefing.com Consensus NA; Prior 11.012M)
10:30 ET: EIA Crude Oil Inventories for Mar 4 (Briefing.com Consensus NA; Prior 1.17M)
14:00 ET: Fed's Beige Book for Mar
Earnings:
Monday (Mar 6)
Morning: AZUL CIEN RIDE
Afternoon: AVAV CVGW DOMO GWRE NTNX TCOM WW
Tuesday (Mar 7)
Morning: MASS DKS DOLE SWIM SE MCRB SQSP THO
Afternoon: AGTI ARLO CASY BASE CRCT CRWD SFIX WTI YEXT
Wednesday (Mar 8)
Morning: ABM BF.B CPB IMXI KFY LTH LFST REVG COCO UNFI VERX VRDN
Afternoon: ASAN ESTE EOLS MDB NDLS ONL SMRT SOVO
Thursday (Mar 9)
Morning: BJ GCO HLLY JD PSFE TTC
Afternoon: BIRD AOUT DOCU LOCO GPS HCP HRT AVO ORCL SWBI ULTA MTN WPM ZUMZ
Friday (Mar 10)
Morning: BKE GENI
Asia & Europe detail:
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Upper House will vote on the nominations to the Bank of Japan on Friday. Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate. Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
---Equity Markets---
Japan's Nikkei: +0.5%
Hong Kong's Hang Seng: -2.4%
China's Shanghai Composite: -0.1%
India's Sensex: +0.2%
South Korea's Kospi: -1.3%
Australia's ASX All Ordinaries: -0.8%
---FX---
USD/JPY: +0.1% to 137.25
USD/CNH: -0.3% to 6.9721
USD/INR: UNCH at 81.95
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Major European indices trade near their flat lines. European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates. Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose. Tiremaker Continental expects rising sales and margin improvement in 2023.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
---Equity Markets---
STOXX Europe 600: -0.1%
Germany's DAX: +0.2%
U.K.'s FTSE 100: -0.1%
France's CAC 40: -0.1%
Italy's FTSE MIB: +0.2%
Spain's IBEX 35: +0.2%
---FX---
EUR/USD: -0.1% to 1.0540
GBP/USD: +0.1% to 1.1842
USD/CHF: +0.1% to 0.9427The S&P 500 futures are unchanged and are trading roughly in line with fair value. The Nasdaq 100 futures are up 3 points and are trading slightly above fair value. The Dow Jones Industrial Average futures are down 1 point and are trading slightly below fair value.
Both buyers are sellers are lacking conviction this morning ahead of day two of Fed Chair Powell's testimony before Congress. Equity futures had been slightly higher earlier, but have deteriorated somewhat and now skew slightly negative.
Yesterday's close marked the first time since 1981 that the 2s10s spread was more than 100 basis points, reflecting worries about the Fed possibly taking rates too high and forcing a recession. The 2-yr note yield is up three basis points this morning at 5.04% and the 10-yr note yield is unchanged at 3.97%.
The weekly MBA Mortgage Application Index rose 7.4% with refinancing applications increasing 9.0% and purchase applications rising 7.0%.
In corporate news:
CrowdStrike (CRWD 132.00, +7.07, +5.7%): beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Diversey Holdings (DSEY 8.22, +2.27, +38.2%): to be acquired by Solenis for $4.6 bln, or $8.40/share
Shoals Technologies (SHLS 24.35, -2.20, -8.3%): prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Tesla (TSLA 184.87, -2.84, -1.5%) downgraded to Hold from Buy at Berenberg
Scorpio Tankers (STNG 61.74, +1.33, +2.2%): JPMorgan initiated coverage at Overweight
Occidental Petro (OXY 62.53, +1.68, +2.8%): 10% owner Berkshire Hathaway (BRK.A / BRK.B) bought another 5,801,791 shares worth ~$354.5 mln (3/3-3/7 transaction dates)
Stitch Fix (SFIX 4.5400, -0.43, -8.7%): misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Yext (YEXT 7.78, -0.71, -8.4%): beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Casey's General (CASY 211.51, +1.81, +0.9%): beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
United Natural Foods (UNFI 32.09, -8.87, -21.7%): misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Campbell Soup (CPB 52.95, +0.82, +1.6%): beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -2.4%, China's Shanghai Composite: -0.1%, India's Sensex: +0.2%, South Korea's Kospi: -1.3%, Australia's ASX All Ordinaries: -0.8%.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
In news:
Japan's Upper House will vote on the nominations to the Bank of Japan on Friday.
Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate.
Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
Major European indices trade near their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.2%.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
In news:
European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates.
Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose.
Tiremaker Continental expects rising sales and margin improvement in 2023.
U.S. equity futures:
S&P 500 Futures: -2 @ 3,984
DJIA Futures: -35 @ 32,822
Nasdaq 100 Futures: -3 @ 12,149
Overseas:
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Commodities:
Crude Oil -0.36 @ 77.22
Nat Gas -0.065 @ 2.622
Gold -1.25 @ 1818.75
Silver -0.001 @ 20.198
Copper +0.0353 @ 4.0103
Earnings/Guidance:
ABM Industries ( ABM ▾ 3.01% ) beats by $0.02, misses on revs; reaffirms FY23 EPS guidance
Adidas AG ( ADDYY ) reports Q4 results; extends appointment of CFO
Agiliti ( AGTI ▾ 4.26% ) misses by $0.01, beats on revs; guides FY23 EPS below consensus, revs in-line
Arlo Technologies ( ARLO ▾ 5.87% ) beats by $0.06, beats on revs; guides Q1 EPS mostly above consensus, revs above consensus
Campbell Soup ( CPB ▴ 0.34% ) beats by $0.06, beats on revs; raises lower end of guidance for FY23 EPS in-line, raises revs above consensus
Casey's General ( CASY ▾ 2.78% ) beats by $0.36, reports revs in-line; Expects FY23 same-store inside sales growth of approximately 6% to 7%
Couchbase ( BASE ▾ 7.48% ) beats by $0.16, beats on revs; guides Q1 revs in-line; guides FY24 revs below consensus
Cricut ( CRCT ▾ 2.39% ) misses by $0.01, beats on revs (single est)
CrowdStrike ( CRWD ▾ 1.68% ) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Forward Air ( FWRD ▾ 1.67% ) provides update on 1Q23 performance; shipments per day decreased 6.7%, continues to target 2023 with higher net income per diluted share than 2022
Globalstar ( GSAT ▴ 0.87% ) reiterates its FY23 guidance
International Money Express ( IMXI ▾ 6.04% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs in-line
Korn/Ferry ( KFY ▾ 3.20% ) beats by $0.09, beats on revs; guides Q4 EPS in-line
LifeStance Health Group ( LFST ▾ 1.55% ) reports Q4 (Dec) results, beats on revs; guides FY23 revs above consensus
Life Time ( LTH ▾ 0.12% ) reports EPS in-line, revs in-line; guides Q1 revs in-line; reaffirms FY23 revs guidance
Maxeon Solar ( MAXN ▴ 0.18% ) reports Q4 results, beats on revs, guides Q1 revenue above consensus, FY23 revenue below consensus
Membership Collective Group ( MCG ▴ 6.50% ) beats on top and bottom lines; sees FY23 revs in-line with consensus
Nuvei Corporation ( NVEI ▾ 3.17% ) beats by $0.03, reports revs in-line; guides Q1 revs in-line; guides FY23 revs above consensus
REV Group ( REVG ▾ 4.84% ) beats by $0.13, beats on revs; reiterates FY23 revs in-line
Stellantis ( STLA ▾ 2.06% ) and other automotive groups in Italy announce agreement with unions to salary increases, according to Reuters
Stitch Fix ( SFIX ▾ 4.81% ) misses by $0.25, reports revs in-line; guides Q3 revs in-line; announces new CFO, effective April 3
Sumo Logic ( SUMO ▾ 2.95% ) beats by $0.06, beats on revs; company to be acquired by entities affiliated with Francisco Partners Management
The Vita Coco Company ( COCO ▾ 4.11% ) misses by $0.09, beats on revs; guides FY23 revs below consensus
United Natural Foods ( UNFI ▾ 5.30% ) misses by $0.66, reports revs in-line; guides FY23 EPS below consensus, raises revs in-line
Vertex ( VERX ▾ 0.89% ) beats by $0.02, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
Viridian Therapeutics ( VRDN ▾ 3.07% ) misses by $0.41, misses on revs
W&T Offshore ( WTI ▾ 0.92% ) beats by $0.07, beats on revs
Yext ( YEXT ▾ 6.68% ) beats by $0.02, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
Zymeworks ( ZYME ▾ 1.86% ) beats by $1.60, beats on revs
News:
Biden administration seeking to increase Pentagon budget above $835 bln, according to Bloomberg
Albertsons ( ACI ▾ 0.10% ) established a retention program to incentivize and promote retention of a key group of Company employees to help consummate the Kroger (KR) merger
Ares Management ( ARES ▾ 6.78% ) reportedly backing Toys 'R' Us owner WHP Global to the tune of $1.6 bln valuation, according to Bloomberg
Baidu ( BIDU ▴ 0.73% ) to test AI chat feature next week, according to DigiTimes
Biogen ( BIIB ▾ 0.94% ) has elected Caroline Dorsa as Chair of the Board of Directors, effective immediately following the Company's 2023 Annual Meeting of Stockholders
BioMarin Pharmaceutical ( BMRN ▾ 2.69% ) announces that the FDA accepted New Drug Application (sNDA) for VOXZOGO (vosoritide) for injection to expand treatment in the United States to include children with achondroplasia under the age of 5
Boston Beer Co ( SAM ▾ 3.44% ) CFO Frank H Smalla stepping down to pursue another opportunity; Matthew D Murphy to serve as interim CFO
Catalyst Pharma ( CPRX ▾ 2.72% ) provided litigation updates
Chart Industries ( GTLS ▾ 8.23% ) and GenH2 execute MoU for hydrogen liquefaction systems
Cidara Therapeutics ( CDTX ▴ 4.00% ) Presents Preclinical Data on CD73-Targeting Drug-Fc Conjugate at the 2023 ESMO Targeted Anticancer Therapies Congress
Community Healthcare Trust ( CHCT ▾ 3.96% ) appoints David H Dupuy, former Interim CEO since February 10, as permanent CEO, effective March 6
DBV Technologies ( DBVT ▾ 4.14% ) Announces First Patient Screened in VITESSE Phase 3 Clinical Trial in Peanut-Allergic Children 4 - 7 Years Old
Ford Motor ( F ▾ 2.81% ) to discount Mustang Mach-E vehicle in China by $5,700 (40K yuan) until the end of April, according to Reuters
Genco Shipping & Trading ( GNK ▾ 1.40% ) COO Robert Hughes resigned in connection with an internal consolidation of the Company's business departments, following discussions that commenced on March 2
Geo Group ( GEO ▾ 1.53% ) awarded a new five-year contract, inclusive of renewal options, by Santa Clara County, California for the use of BI VeriWatch
Grupo Aeroportuario Del Sureste ( ASR ▾ 2.28% ) reports February 2023 traffic
Kaman ( KAMN ▾ 3.59% ) and PHI Aviation Announce Commercial Agreement
Mesoblast ( MESO ▾ 4.29% ) receives FDA acceptance of resubmission of BLA for Remestemcel-L
Palantir Technologies ( PLTR ▾ 4.42% ) selected by the State Department to provide the Bureau of Medical Services with data management services; contract is worth $99.6 mln over five years
Parsons ( PSN ▾ 1.05% ) establishes strategic partnership with Microsoft (MSFT), accelerating the digital transformation of global infrastructure
PayPal ( PYPL ▾ 3.29% ) CFO Blake Jorgensen stepping down, effective immediately; will remain with company as senior advisor through September 15, 2023
Pembina Pipeline ( PBA ▾ 1.44% ) approves renewal of share repurchase program
SAGE Therapeutics ( SAGE ▾ 8.15% ) and Biogen (BIIB) share update on FDA Advisory Committee for Zuranolone
Silvergate ( SI ▾ 11.27% ) looking to avoid shutdown, according to Bloomberg
Starbucks ( SBUX ▾ 0.92% ): Howard Schultz to testify about labor practices at Starbucks, according to the Wall Street Journal
The Vita Coco Company ( COCO ▾ 4.11% ) appoints Corey Baker to CFO role, effective immediately upon the filing of the company's annual report
Trevi Therapeutics ( TRVI ▾ 14.21% ) announced that the USPTO issued a notice of allowance for nalbuphine ER's method of treatment of chronic cough in idiopathic pulmonary fibrosis
Volaris Aviation ( VLRS ▾ 9.57% ) reports February 2023 traffic results; capacity increased by 20.4% yr/yr and RPMs increased by 21.2%
Walt Disney ( DIS ▾ 2.67% ) halts production of two Star Wars titles, according to Variety
WeWork ( WE ▾ 13.94% ) in talks to restructure over $3 bln in outstanding debt, according to the New York Times
M&A:
Diversey Holdings ( DSEY ▾ 0.37% ) to be acquired by Solenis for $4.6 bln, or $8.40/share
Kimball ( KBAL ▴ 0.32% ): HNI Corporation (HNI) to acquire Kimball International in a cash and stock transaction valued at approximately $485 mln
Marathon Petroleum ( MPC ▴ 0.13% ) announced the acquisition of a 49.9% interest in LF Bioenergy from Cresta Fund Management for $50 mln
Syndicate:
AerCap ( AER ▾ 1.55% ) files for 111,500,000 share common stock offering by selling shareholder
AerSale ( ASLE ▾ 2.80% ) files mixed securities shelf offering
Affirm ( AFRM ▾ 8.31% ) entered into an additional privately negotiated transaction with a holder of its outstanding 0% Convertible Senior Notes due 2026
Banc of California ( BANC ▾ 2.01% ) files mixed securities shelf offering
Bed Bath & Beyond ( BBBY ▴ 8.94% ) says it received additional proceeds from the previously announced equity offering
BridgeBio Pharma ( BBIO ▾ 8.88% ) prices offering of 8,823,530 shares of its common stock at a public offering price of $17.00 per share
Burlington Stores ( BURL ▴ 1.01% ) entered into privately negotiated exchange agreements with holders of $110.3 mln 2.25% Convertible Senior Notes due 2025
Citigroup ( C ▾ 0.53% ) files mixed securities shelf offering
Granite Constr ( GVA ▾ 2.59% ) awarded approximately $30 mln contract by the City of Lancaster, CA
Permian Resources ( PR ▾ 2.01% ) prices secondary offering of 27.5 mln shares of common stock at $11.00 per share
Portillo's ( PTLO ▾ 1.29% ) prices offering of 8.0 mln shares of common stock at $21.05 per share
Verona Pharma ( VRNA ▾ 3.22% ) files mixed securities shelf offering
Shoals Technologies ( SHLS ▾ 5.86% ) prices secondary offering of 24,501,650 shares of common stock by certain selling stockholders at $24.70 per share
Southwest Gas ( SWX ▾ 0.59% ) commences an underwritten public offering of $215 mln in shares of its common stock
IPOs:
Softbank ( SFTBY ): Ziroom considering Hong Kong IPO to raise about $1 bln as soon as this year, according to Bloomberg
Expected to Price:
Atlas Energy Solutions (NYSE: AESI): The provider of frac sand and logistics services in the Permian Basis is expected to price its 18.0 M share IPO between $20-$23.
Gapping Up/Down
Gapping up:
MESO +13.9%, MAXN +13.2%, ZYME +12.4%, ARLO +12.3%, WE +7.9%, CRWD +6.8%, DBVT +6.6%, WTI +4.6%, COCO +4.4%, OXY +3%, BASE +2.6%, LFST +2.1%, VRNA +1.9%, RIVN +1.7%, VLRS +1.1%, PBA +0.9%, CASY +0.9%
Gapping down:
SOUN -10.5%, SHLS -8.4%, SFIX -6.8%, YEXT -5.9%, MBC -5.8%, PTLO -5%, BANC -4.9%, ASLE -4.8%, AGTI -4.3%, PR -3.3%, SWX -3.2%, IMXI -3.1%, MODN -2.2%, ACI -2%, CDTX -1.2%, AER -1%, SAM -0.9%, GSAT -0.8%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
AGNC Investment (AGNC) upgraded to Overweight from Neutral at JP Morgan; tgt $12.50
Atlantica Yield (AY) upgraded to Buy from Neutral at BofA Securities; tgt $32
CMS Energy (CMS) upgraded to Buy from Neutral at BofA Securities
CrowdStrike (CRWD) upgraded to Buy from Hold at WestPark Capital; tgt $203
Sea Limited (SE) upgraded to Buy from Hold at UOB Kay Hian; tgt $94.34
Downgrades:
Ares Commercial Real Estate (ACRE) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $12.50
Cara Therapeutics (CARA) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $6
Edwards Lifesciences (EW) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $78
Offerpad Solutions (OPAD) downgraded to Neutral from Overweight at JP Morgan
TDCX (TDCX) downgraded to Hold from Buy at HSBC; tgt $13
Tesla (TSLA) downgraded to Hold from Buy at Berenberg; tgt raised to $210
Zscaler (ZS) downgraded to Neutral from Outperform at KGI Securities; tgt $130
Others:
Axon (AXON) initiated with a Buy at Goldman; tgt $263
Bowlero (BOWL) initiated with a Buy at Canaccord Genuity; tgt $22
Karuna Therapeutics (KRTX) initiated with a Neutral at Cantor Fitzgerald; tgt $214
Lantheus Holdings (LNTH) initiated with a Mkt Outperform at JMP Securities; tgt $120
Napco Security Systems (NSSC) initiated with an Outperform at William Blair
Piedmont Lithium (PLL) initiated with an Outperform at Macquarie; tgt $140
Sabre (SABR) initiated with an Underperform at Bernstein; tgt $4
Scorpio Tankers (STNG) initiated with an Overweight at JP Morgan; tgt $87
Solid Power (SLDP) resumed with a Buy at Needham; tgt $5
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Mar 4 (Briefing.com Consensus NA; Prior -5.7%)
08:15 ET: ADP Employment Change for Feb (Briefing.com Consensus 195K; Prior 106K)
08:30 ET: Trade Balance for Jan (Briefing.com Consensus -$69.0B; Prior -$67.4B)
10:00 ET: JOLTS - Job Openings for Jan (Briefing.com Consensus NA; Prior 11.012M)
10:30 ET: EIA Crude Oil Inventories for Mar 4 (Briefing.com Consensus NA; Prior 1.17M)
14:00 ET: Fed's Beige Book for Mar
Earnings:
Monday (Mar 6)
Morning: AZUL CIEN RIDE
Afternoon: AVAV CVGW DOMO GWRE NTNX TCOM WW
Tuesday (Mar 7)
Morning: MASS DKS DOLE SWIM SE MCRB SQSP THO
Afternoon: AGTI ARLO CASY BASE CRCT CRWD SFIX WTI YEXT
Wednesday (Mar 8)
Morning: ABM BF.B CPB IMXI KFY LTH LFST REVG COCO UNFI VERX VRDN
Afternoon: ASAN ESTE EOLS MDB NDLS ONL SMRT SOVO
Thursday (Mar 9)
Morning: BJ GCO HLLY JD PSFE TTC
Afternoon: BIRD AOUT DOCU LOCO GPS HCP HRT AVO ORCL SWBI ULTA MTN WPM ZUMZ
Friday (Mar 10)
Morning: BKE GENI
Asia & Europe detail:
Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai Composite -0.1%
Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note, weighed down by hawkish commentary from Fed Chairman Powell. Japan's Upper House will vote on the nominations to the Bank of Japan on Friday. Reserve Bank of Australia's Governor Lowe said that the central bank is getting closer to a point where a pause in rate hikes will be appropriate. Australia's Prime Minister Albanese will travel to Washington after this weekend's trip to India.
In economic data:
Japan's January Current Account deficit JPY1.977 trln (expected deficit of JPY818 bln; last deficit of JPY33 bln). January Leading Index -0.4% m/m (last -0.4%) and Coincident Indicator -3.0% m/m (last -0.2%). February Bank Lending 3.3% yr/yr (last 3.1%) and February Economy Watchers Current Index 52.0 (expected 49.1; last 48.5)
---Equity Markets---
Japan's Nikkei: +0.5%
Hong Kong's Hang Seng: -2.4%
China's Shanghai Composite: -0.1%
India's Sensex: +0.2%
South Korea's Kospi: -1.3%
Australia's ASX All Ordinaries: -0.8%
---FX---
USD/JPY: +0.1% to 137.25
USD/CNH: -0.3% to 6.9721
USD/INR: UNCH at 81.95
Europe: DAX +0.2%, FTSE -0.1%, CAC -0.1%
Major European indices trade near their flat lines. European Central Bank policymaker Knot said that the ECB will continue raising rates for "quite some time" after the March meeting while policymaker Visco said that he does not appreciate other members discussing a prolonged rise in rates. Elsewhere, Swiss National Bank President Jordan said that monetary policy remains too loose. Tiremaker Continental expects rising sales and margin improvement in 2023.
In economic data:
Eurozone's Q4 GDP 0.0% qtr/qtr (expected 0.1%; last 0.3%); 1.8% yr/yr (expected 1.9%; last 2.3%). Q4 Employment Change 0.3% qtr/qtr (expected 0.4%; last 0.3%); 1.5% yr/yr (expected 1.7%; last 1.8%)
Germany's January Retail Sales -0.3% m/m (expected 2.0%; last -5.3%); -6.9% yr/yr (expected -6.1%; last -6.4%). January Industrial Production 3.5% m/m (expected 1.4%; last -2.4%)
---Equity Markets---
STOXX Europe 600: -0.1%
Germany's DAX: +0.2%
U.K.'s FTSE 100: -0.1%
France's CAC 40: -0.1%
Italy's FTSE MIB: +0.2%
Spain's IBEX 35: +0.2%
---FX---
EUR/USD: -0.1% to 1.0540
GBP/USD: +0.1% to 1.1842
USD/CHF: +0.1% to 0.9427
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