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Writer's pictureSimon Charles Hooper

10/05/23 Briefing



The S&P 500 futures are down 4 points and are trading slightly below fair value. The Nasdaq 100 futures are down 2 points and are trading slightly below fair value. The Dow Jones Industrial Average futures are down 61 points and are trading 0.2% below fair value.

Stock futures are on the softer side again this morning. Debt ceiling issues continue to draw focus after yesterday's meeting between President Biden and congressional leaders showed no signs that they had moved closer to a deal. The officials plan to meet again on Friday. Some trepidation ahead of the April Consumer Price Index at 8:30 a.m. EThas been another limiting factor this morning.

There has been a fair amount of earnings news since yesterday's close that has received mixed reactions from market participants, yet none of the earnings news has swayed the market in a meaningful way. 

The 2-yr Treasury note yield is up five basis points to 4.05% and the 10-yr note yield is down one basis point to 3.50%. The U.S. Dollar Index is up 0.1% to 101.75.

The weekly MBA Mortgage Applications Index rose 6.3% with refinancing applications jumping 10% and purchase applications rising 5%.

In corporate news:

  • Airbnb (ABNB 109.71, -17.36, -13.7%): beats by $0.08, beats on revs; guides Q2 revs in-line, Nights and Experiences booked growth to be lower than sales growth; reiterates FY23 adjusted EBITDA margins in-line with FY22

  • Upstart (UPST 19.12, +5.03, +35.7%): misses by $0.77, beats on revs; guides Q2 EPS above consensus, revs above consensus

  • RingCentral (RNG 28.28, +1.78, +6.7%): beats by $0.07, beats on revs; guides Q2 EPS above consensus, revs in-line; raises FY23 EPS above consensus, revs in-line

  • Rivian Automotive (RIVN 14.78, +0.92, +6.6%): beats by $0.33, reports revs in-line; reaffirms FY23 production guidance

  • Twilio (TWLO 46.78, -9.22, -16.5%): beats by $0.26, reports revs in-line; guides Q2 EPS in-line, revs below consensus

  • Wynn Resorts (WYNN 122.45, +0.75, +0.7%): beats by $0.29, beats on revs; reinstates dividend

  • Akamai Tech (AKAM 83.05, +4.17, +5.3%): beats by $0.08, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs above consensus; provides upside Q2/FY 23 guidance, announces 3% workforce reduction in Q2

  • Electronic Arts (EA 128.50, +3.09, +2.5%): misses by $0.46, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY24 EPS in-line, revs in-line

  • Affirm (AFRM 11.56, -0.77, -6.3%): beats by $0.15, beats on revs; guides Q4 revs in-line; guides FY23 revs above consensus

  • Dutch Bros (BROS 30.19, -2.26, -7.0%): beats by $0.01, misses on revs; reaffirms FY23 guidance

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: -0.5%, China's Shanghai Composite: -1.2%, India's Sensex: +0.3%, South Korea's Kospi: -0.5%, Australia's ASX All Ordinaries: -0.1%.

    • In economic data:

      • Japan's March Leading Index -0.7% m/m (last 1.4%) and Coincident Indicator 0.0% m/m (last 2.5%)

      • South Korea's March Current Account surplus $270 mln (expected deficit of -$800 mln; last deficit of $520 mln). April Unemployment Rate 2.6%, as expected (last 2.7%)

    • In news:

      • Bank of Japan Governor Ueda repeated that ETF purchases are part of large-scale easing and that there are no current problems with these purchases.

      • Australia's Treasury is maintaining its FY22/23 growth forecast at 3.25% while the inflation forecast was lowered to 3.25 from 3.75%.

      • There are growing expectations that the State Bank of Vietnam will continue cutting rates.

  • Major European indices trade a bit below their flat lines while Spain's IBEX (+0.1%) outperforms. STOXX Europe 600: -0.2%, Germany's DAX: -0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.2%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: +0.1%.

    • In economic data:

      • Germany's April CPI 0.4% m/m, as expected (last 0.8%); 7.2% yr/yr, as expected (last 7.4%)

      • Italy's March Industrial Production -0.6% m/m (expected 0.3%; last -0.2%); -3.2% yr/yr (expected -1.7%; last -2.3%)

    • In news:

      • European Central Bank President Lagarde said in an interview with Nikkei that there is more ground to cover in the central bank's fight against inflation while policymaker Schnabel also said that more has to be done to slow inflation.

      • Credit Agricole reported better than expected results for Q1.

 

U.S. equity futures:

  • S&P 500 Futures: -3 @ 4,116

  • DJIA Futures: -44 @ 33,518

  • Nasdaq 100 Futures: -3 @ 13,198

Overseas:

  • Europe: DAX -0.2%, FTSE -0.1%, CAC -0.2%

  • Asia: Nikkei -0.4%, Hang Seng -0.5%, Shanghai Composite -1.2%

Commodities:

  • Crude Oil -0.71 @ 73.00

  • Nat Gas -0.039 @ 2.288

  • Gold -6.85 @ 2036.05

  • Silver -0.125 @ 25.773

  • Copper -0.0465 @ 3.855


 

Earnings/Guidance:

  • 1stdibs.com(DIBS) beats by $0.01, beats on revs; guides Q2 revs in-line

  • Affirm (AFRM) beats by $0.15, beats on revs; guides Q4 revs in-line; guides FY23 revs above consensus

  • Agiliti (AGTI) beats by $0.04, beats on revs; reaffirms FY23 EPS, revs guidance

  • Agilon Health (AGL) misses by $0.02, beats on revs; guides Q2 and FY23 revenue above consensus

  • Airbnb (ABNB) beats by $0.08, beats on revs; guides Q2 revs in-line, Nights and Experiences booked growth to be lower than sales growth; reiterates FY23 adjusted EBITDA margins in-line with FY22

  • Akamai Tech (AKAM) beats by $0.08, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs above consensus

  • Alcon (ALC) beats by $0.09, reports revs in-line; guides FY23 EPS in-line, reaffirms FY23 revs guidance

  • Allbirds (BIRD) beats by $0.02, beats on revs; guides Q2 revs above consensus

  • Amicus Therapeutics (FOLD) misses by $0.04, beats on revs; expects FY23 Galafold sales growth of +12-17%; on-track to achieve non-GAAP profitability in 2H23

  • Appian (APPN) beats by $0.03, beats on revs; guides Q2 EPS mostly below consensus, revs in-line; guides FY23 EPS in-line, revs above consensus

  • Angi Inc. (ANGI) reports EPS in-line, beats on revs

  • Arcus Biosciences (RCUS) beats by $0.08, beats on revs

  • Array Tech (ARRY) beats by $0.21, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Axon (AXON) beats by $0.34, beats on revs; raises FY23 revs guidance

  • Azenta (AZTA) misses by $0.04, misses on revs; guides Q3 EPS below consensus, revs below consensus; announces business realignment

  • B2Gold (BTG) beats by $0.01, beats on revs; guides for FY23 total gold production of between 1,000,000 and 1,080,000 ounces, 

  • Babcock & Wilcox Enterprises (BW) misses by $0.06, beats on revs

  • Beam Therapeutics (BEAM) misses by $0.03, beats on revs

  • BigBear.ai (BBAI) misses by $0.12, beats on revs; reaffirms FY23 revs guidance; appoints Norm Laudermilch as COO

  • Bloom Energy (BE) misses by $0.01, beats on revs; reaffirms FY23 revs in-line

  • Brinks (BCO) beats by $0.06, beats on revs; raises FY23 EPS guidance, reaffirms FY23 revs guidance

  • Cadre Holdings (CDRE) beats by $0.06, reports revs in-line; reaffirms FY23 revs guidance

  • Camtek (CAMT) beats by $0.01, reports revs in-line

  • CarGurus (CARG) beats by $0.10, beats on revs; guides Q2 EPS above consensus, revs in-line

  • Celsius (CELH) beats by $0.21, beats on revs

  • Chinook Therapeutics (KDNY) misses by $0.03, beats on revs

  • Celanese (CE) beats by $0.38, reports revs in-line; guides Q2 EPS below consensus

  • Cellebrite DI (CLBT) beats by $0.01, beats on revs; reaffirms FY23 revs guidance

  • Ceva (CEVA) misses by $0.12, misses on revs

  • Clean Energy Fuels (CLNE) misses by $0.04, beats on revs

  • Coherent (COHR) misses by $0.24, misses on revs; guides Q4 EPS below consensus, revs below consensus

  • Compass (COMP) misses by $0.10, beats on revs; guides Q2 revs in-line

  • Coupang (CPNG) reports EPS in-line, beats on revs

  • Cricut (CRCT) reports EPS in-line, misses on revs (single estimate)

  • Custom Truck One Source (CTOS) beats by $0.03, beats on revs; guides FY23 revs in-line

  • Cutera (CUTR) reports Q1 (Mar) results, misses on revs; CFO Rohan Seth has stepped down

  • Darling Ingredients (DAR) reports Q1 (Mar) results, beats on revs

  • Diodes (DIOD) beats by $0.12, reports revs in-line; guides Q2 revs in-line

  • Duolingo (DUOL) beats by $0.18, beats on revs; guides Q2 revs above consensus; guides FY23 revs above consensus

  • Dutch Bros (BROS) beats by $0.01, misses on revs; reaffirms FY23 guidance

  • Electronic Arts (EA) misses by $0.46, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY24 EPS in-line, revs in-line

  • Emergent BioSolutions (EBS) misses by $1.83, beats on revs; guides Q2 revs above consensus; reaffirms FY23 revs guidance

  • Endeavor Group (EDR) reports Q1 results, revs in-line; guides FY23 revs; to commence repurchases of up to $300 mln, plans to initiate dividend for first time

  • Endeavour Silver (EXK) misses by $0.26, beats on revs

  • Esco Tech (ESE) beats by $0.05, beats on revs; guides Q3 EPS in-line; guides FY23 EPS in-line, revs above consensus

  • European Wax Center (EWCZ) reports Q1 results; misses on revs; sees FY23 revs in-line with consensus

  • EverCommerce (EVCM) reports Q1 (Mar) results, beats on revs; guides Q2 revs in-line; guides FY23 revs in-line

  • Everi (EVRI) beats by $0.19, beats on revs; reaffirms FY23 EPS guidance, authorizes new $180 mln share repurchase program

  • Evolus (EOLS) reports Q1 (Mar) results, beats on revs; reaffirms FY23 revs guidance

  • Exact Sciences (EXAS) beats by $0.24, beats on revs; raises FY23 revenue guidance

  • Exelixis (EXEL) reports EPS in-line, misses on revs; reaffirms FY23 revs guidance

  • Expensify (EXFY) misses by $0.15, misses on revs; details buyback plan

  • First Advantage Corp. (FA) reports EPS in-line, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Flywire (FLYW) misses by $0.02, beats on revs; guides Q2 revs above consensus; raises FY23 revs guidance

  • Franchise Group (FRG) misses by $0.42, reports revs in-line; to be acquired by consortium led by management group for $30.00 per share cash

  • GoodRx (GDRX) reports EPS in-line, beats on revs; guides Q2 revs below consensus; guides FY23 revs below consensus

  • GoPro (GPRO) misses by $0.03, beats on revs

  • Grocery Outlet (GO) beats by $0.04, beats on revs; raises FY23 guidance

  • Guardant Health (GH) beats by $0.01, beats on revs; raises FY23 revs guidance

  • GXO Logistics (GXO) beats by $0.06, reports revs in-line; guides FY23 EPS in-line

  • H & R Block (HRB) misses by $0.26, reports revs in-line; lowers FY23 EPS and revenue guidance below consensus due to softer industry volumes

  • Halozyme Therapeutics (HALO) misses by $0.01, misses on revs; reaffirms FY23 EPS, revs guidance

  • Health Catalyst (HCAT) beats by $0.09, beats on revs; guides Q2 revs in-line; guides FY23 revs in-line

  • Hecla Mining (HL) misses by $0.01, beats on revs

  • HireRight Holdings (HRT) misses by $0.09, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Hostess Brands (TWNK) beats by $0.01, beats on revs; guides FY23 EPS in-line, revs in-line; announces buyback

  • Houlihan Lokey (HLI) beats by $0.19, beats on revs; increases dividend

  • IAC Inc. (IAC) reports Q1 (Mar) results, beats on revs

  • ICF International (ICFI) beats by $0.02, beats on revs; guides FY23 EPS in-line, reaffirms FY23 revs guidance

  • ICHOR Corporation (ICHR) beats by $0.10, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; expects revs to be sequentially higher in 2H23

  • Immunocore (IMCR) misses by 0.01, beats on revs

  • Invitae (NVTA) beats by $0.16, reports revs in-line; reaffirms FY23 revs guidance

  • Iovance Biotherapeutics (IOVA) beats by $0.23

  • iRobot (IRBT) reports Q1 (Mar) results, misses on revs

  • Jackson Financial (JXN) misses by $0.80

  • Kinross Gold (KGC) beats by $0.02, misses on revs

  • Kornit Digital (KRNT) beats by $0.01, misses on revs; guides Q2 revs in-line

  • LegalZoom.com(LZ) beats by $0.01, beats on revs; guides Q2 revs above consensus; guides FY23 revs mostly above consensus

  • Li Auto (LI) beats by $0.02, reports revs in-line; guides Q2 revs above consensus

  • LifeStance Health Group (LFST) misses by $0.06, beats on revs; guides Q2 revs in-line; reaffirms FY23 revs guidance

  • Light & Wonder (LNW) misses by $0.03, beats on revs

  • Lincoln National (LNC) misses by $0.01, misses on revs

  • LivePerson (LPSN) misses by $0.02, reports revs in-line; lowers FY23 revs below consensus

  • Luminar Technologies (LAZR) misses by $0.03, beats on revs; reaffirms FY23 revs guidance

  • Mannkind (MNKD) beats by $0.01, beats on revs

  • Marqeta (MQ) misses by $0.05, beats on revs; guides Q2 revs in-line

  • Masimo (MASI) beats by $0.04, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • MasterCraft (MCFT) beats by $0.32, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Matterport (MTTR) beats by $0.03, beats on revs; guides Q2 EPS in-line, revs in-line; guides FY23 EPS above consensus, revs in-line

  • Middleby (MIDD) beats by $0.22, beats on revs

  • Mirati Therapeutics (MRTX) beats by $0.39, beats on revs

  • Model N (MODN) beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs in-line

  • N-able (NABL) beats by $0.01, beats on revs; guides Q2 revs above consensus; guides FY23 revs above consensus

  • Natera (NTRA) misses by $0.07, beats on revs; guides FY23 revs above consensus

  • National Health (NHI) beats by $0.12, beats on revs; guides FY23 FFO above consensus

  • New York Times (NYT) beats by $0.02, misses on revs

  • Nomad Foods (NOMD) beats by $0.07, reports revs in-line; guides FY23 EPS in-line

  • Nuvei Corporation (NVEI) reports EPS in-line, beats on revs; guides Q2 revs below consensus; reaffirms FY23 revs guidance

  • Occidental Petro (OXY) misses by $0.17, misses on revs

  • ODP Corporation (ODP) beats by $0.44, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance

  • Olo Inc. (OLO) beats by $0.02, beats on revs; guides Q2 revs above consensus; guides FY23 revs above consensus

  • Open Lending (LPRO) beats by $0.03, beats on revs; guides Q2 revs in-line

  • Orion Office REIT (ONL) beats by $0.03 (two analyst estimate), reports revs in-line; reaffirms FY23 FFO guidance

  • Ormat Tech (ORA) misses by $0.06, misses on revs; guides FY23 revs in-line

  • Oscar Health (OSCR) misses by $0.09, beats on revs; reaffirms outlook

  • Ovintiv (OVV) reports Q1 (Mar) results, topped prior production targets; expects FY23 production of 520-545 MBOE/d; expects production volumes above 200 Mbbls/d in FY24

  • Performance Food Group (PFGC) beats by $0.12, misses on revs; guides FY23 revs below consensus; reiterates FY25 targets

  • PetIQ (PETQ) beats by $0.09, beats on revs; guides Q2 revs in-line; reaffirms FY23 revs guidance

  • Primoris Services (PRIM) beats by $0.19, beats on revs; reaffirms FY23 EPS guidance

  • ProAssurance (PRA) misses by $0.33, misses on revs

  • ProFrac Holding (ACDC) reports Q1 results; misses on revs

  • Prometheus Biosciences (RXDX) beats by $0.06, beats on revs

  • Proterra (PTRA) reports Q1 (Mar) results, misses on revs; reaffirms FY23 revs guidance

  • PubMatic (PUBM) beats by $0.10, beats on revs; guides Q2 revs in-line

  • Q2 Holdings (QTWO) reports Q1 (Mar) results, beats on revs; guides Q2 revs below consensus; guides FY23 revs below consensus

  • Rackspace Technology (RXT) beats by $0.01, reports revs in-line; guides Q2 EPS below consensus, revs below consensus

  • Rapid7 (RPD) beats by $0.07, beats on revs; guides Q2 EPS below consensus, revs in-line; raises FY23 EPS, revs outlook

  • Reata Pharmaceuticals (RETA) reports EPS in-line, misses on revs

  • Revance Therapeutics (RVNC) beats by $0.10, beats on revs

  • Reynolds Consumer Products (REYN) reports EPS in-line, beats on revs; guides Q2 revs in-line; guides FY23 EPS in-line, revs in-line

  • RingCentral (RNG) beats by $0.07, beats on revs; guides Q2 EPS above consensus, revs in-line; raises FY23 EPS above consensus, revs in-line

  • Sharecare (SHCR) misses by $0.06, beats on revs; guides Q2 revs in-line; raises bottom end of FY23 revenue guidance

  • Silk Road Medical (SILK) misses by $0.04, misses on revs; reaffirms FY23 revs guidance

  • Sitio Royalties Corp. (STR) beats by $0.05, misses on revs

  • Supernus Pharma (SUPN) misses by $0.02, beats on revs; reaffirms FY23 revs guidance

  • Syneos Health (SYNH) beats by $0.09, beats on revs

  • Taboola (TBLA) reports Q1 (Mar) results, beats on revs; guides Q2 revs below consensus; guides FY23 revs in-line; announces share buyback of up to $40 mln

  • Taiwan Semiconductor Manufacturing (TSM) reports April revs decreased 14.3% yr/yr to NT$147.90 bln

  • TechTarget (TTGT) reports Q1 (Mar) results, revs in-line; guides Q2 revs below consensus; lowers FY23 revs below consensus

  • Teva Pharma (TEVA) misses by $0.15, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Toast (TOST) misses by $0.09, beats on revs; guides Q2 revs above consensus; raises FY23 revenue and adj. EBITDA guidance

  • Topgolf Callaway Brands (MODG) beats by $0.01, beats on revs; guides Q2 revs below consensus; lowers FY23 EPS below consensus, revs in-line

  • Toyota Motor (TM) beats on top and bottom lines; sees FY24 revs in-line with consensus

  • Twilio (TWLO) beats by $0.26, reports revs in-line; guides Q2 EPS in-line, revs below consensus

  • Upstart (UPST) misses by $0.77, beats on revs; guides Q2 EPS above consensus, revs above consensus

  • V2X (VVX) beats by $0.12, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Vaalco Energy (EGY) reports Q1 results; misses on revs

  • Valvoline (VVV) beats by $0.03, reports revs in-line; reaffirms FY23 revs guidance; also announces tender offer for common stock

  • Vertex (VERX) reports EPS in-line, revs in-line; guides Q2 revs above consensus; reaffirms FY23 revs guidance

  • Virgin Galactic (SPCE) misses by $0.04, misses on revs

  • Viridian Therapeutics (VRDN) misses by $0.59, misses on revs

  • Vishay (VSH) beats by $0.23, beats on revs; guides Q2 revs above consensus

  • Vital Energy (VTLE) misses by $0.08, beats on revs

  • VIZIO (VZIO) beats by $0.02, reports revs in-line

  • VTEX (VTEX) misses by $0.01, beats on revs

  • W&T Offshore (WTI) beats by $0.02, misses on revs

  • Wendy's (WEN) beats by $0.01, beats on revs; US comps +7.2%, Global comps +8.0%; reaffirms FY23 EPS guidance

  • Wolverine (WWW) beats by $0.06, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Wynn Resorts (WYNN) beats by $0.29, beats on revs; reinstates dividend

  • Xenon Pharmaceuticals (XENE) misses by $0.03

  • Xometry (XMTR) beats by $0.03, beats on revs; guides Q2 revs below consensus

  • Zai Lab (ZLAB) beats by $0.46, product revenue increased 36.2%

  • Ziff Davis (ZD) beats by $0.04, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • ZipRecruiter (ZIP) beats by $0.07, beats on revs; Co announces $100 mln share repurchase program

News:

  • Meeting between President Biden and congressional leaders ended without agreement on how to resolve the impasse over the debt ceiling. Leaders will meet again on Friday, according to the New York Times

  • House Speaker Kevin McCarthy speaking to reporters after debt ceiling meeting says everyone in the meeting reaffirmed their current positions and he didn't see any movement from either side; says House has acted to raise debt ceiling

  • President Biden says he "told congressional leaders that I'm prepared to begin a separate discussion about my budget and spending priorities, but not under the threat of default"

  • Stan Druckenmiller sees hard landing for US economy, according to Bloomberg

  • US finalized asylum restrictions to increase deportations once title 42 border restrictions expire tomorrow, according to CBS News

  • Tucker Carlson announces that he will broadcast a new show on Twitter

  • Justice Department charges NY Rep. George Santos, according to CNN

  • Airbnb (ABNB) authorizes new share repurchase program of up to $2.5 bln

  • AllianceBernstein (AB) announces that preliminary assets under management ended April at $676 bln, unchanged versus March month-end

  • Alvotech (ALVO) enters into commercialization agreement with Polifarma for proposed biosimilar to Eylea

  • Amerant Bancorp (AMTB) appoints Sharymar Caldern as CFO, effective June 1

  • Artisan Partners Asset Mgmt (APAM) reports that its preliminary assets under management as of April 30, 2023 totaled $138.4 billion

  • AstraZeneca (AZN) receives EU approval for Ultomiris

  • Bicycle Therapeutics (BCYC) and Bayer (BAYRY) have entered into a strategic collaboration agreement to discover, develop, manufacture, and commercialize Bicycle radioconjugates for multiple agreed upon oncology targets

  • Cerevel Therapeutics (CERE) announces the appointment of Susan Altschuller, Ph.D. as chief financial officer, effective May 15, 2023

  • Copa Holdings (CPA) reports April traffic increased 15.6% yr/yr

  • Eli Lilly (LLY) receives China NMPA approval for TYVYT in combination with Bevacizumab and chemotherapy

  • Franklin Resources (BEN) reports preliminary month-end assets under management of $1,420.7 billion at April 30, 2023

  • G1 Therapeutics (GTHX) presents preliminary results from 30 patients enrolled in its ongoing Phase 2, single arm study of trilaciclib administered prior to the antibody-drug conjugate, sacituzumab govitecan-hziy in patients with unresectable locally advanced or metastatic triple-negative breast cancer

  • Health Catalyst (HCAT) announces a comprehensive, multi-year partnership with Sea Mar Community Health Centers

  • Intl Game Tech. PLC's (IGT) IGT Global Services Limited signed a 10-year contract with National Lottery plc, a subsidiary of IZI Group and the new operator of National Lottery in Malta

  • Invesco (IVZ) reports preliminary month-end assets under management of $1,484.3 bln, an increase of 0.1% versus previous month-end

  • Johnson & Johnson (JNJ) plaintiffs lost bid to end LTL unit's bankruptcy plan, according to Bloomberg

  • KKR (KKR) backed Envision Healthcare aiming to file for bankruptcy, according to the Wall Street Journal

  • Marathon Digital Holdings (MARA) and Zero Two to develop and operate the first large-scale immersion Bitcoin mining facilities in Abu Dhabi

  • Matrix Service (MTRX) announces that its subsidiary, Matrix PDM Engineering, has signed an exclusive Memorandum of Understanding with Tissot Industries

  • National Bank (NBHC) increases quarterly cash dividend 4% to $0.26/share from $0.25/share and increases stock repurchase program to $50 million

  • New York Times (NYT) announces that William Bardeen, chief strategy officer, has been appointed executive vice president and chief financial officer, effective July 1, 2023

  • Performant Financial (PFMT) announces that effective May 5th, Simeon Kohl has been promoted to the position of Chief Executive Officer and a member of Performant's Board of Directors

  • Perrigo (PRGO): FDA held hearing to possibly approve first over the counter birth control pill, made by unit of Perrigo. The agency heard support from doctors but some concern from scientists. A decision is expected this summer, according to the New York Times

  • Protalix BioTherapeutics (PLX): Chiesi Global Rare Diseases and PLX announce the FDA has approved ELFABRIO (pegunigalsidase alfa-iwxj) for the treatment of adult patients with Fabry disease

  • Rocket Lab USA (RKLB) signs a deal to launch NASA's Starling mission, a multi-CubeSat mission to test and demonstrate autonomous swarm technologies, as well as automated space traffic management for groups of spacecraft in low-Earth orbi

  • Rogers Corp (ROG) announces its plan to build a new factory in China to manufacture its curamik AMB and DBC substrates to meet significant demand growth

  • RumbleOn (RMBL) Board Announces Significant Corporate Governance Enhancements

  • Sarepta Therapeutics (SRPT): FDA posts briefing documents on Delandistrogene Moxeparvovec

  • Shell (SHEL) secures legal victory in UK over Nigeria oil spill, according to Bloomberg

  • SoftBank (SFTBY) nearing agreement to sell Fortress to Abu Dhabi sovereign wealth fund, according to Financial Times

  • Take-Two (TTWO): Private Division announces a partnership to publish a new title from Game Freak

  • Tellurian (TELL): Simon Oxley named CFO effective June 1, 2023

  • Tesla (TSLA) tweets "Giga Texas achieves production of 5k Model Y/week"

  • Theravance Biopharma, Inc. (TBPH) Announces Orphan Drug Designation Granted to Ampreloxetine for the Treatment of Symptomatic Neurogenic Orthostatic Hypotension in Patients with Multiple System Atrophy

  • Verizon (VZ) and Vertical Bridge have entered into an agreement to build cell towers across the US to expand Verizon's 4G and 5G Ultra Wideband services

  • Virtus Investment Partners (VRTS) reports assets under management of $162.2 billion as of April 30, 2023

  • Waste Mgmt (WM) announces that its Board of Directors has elected Kathleen M. Mazzarella as Chairman of the Board to replace retiring Chairman Thomas H. Weidemeyer, which was effective as of the 2023 Annual Meeting of Stockholders conducted earlier today

  • Wheaton Precious Metals (WPM) announces that the Company has renewed its at-the-market equity program

M&A:

  • Ceva (CEVA) to acquire RealSpace 3D Spatial Audio business

  • Compass Minerals (CMP) acquires the outstanding 55% interest in Fortress North America, bringing the company's ownership stake to 100%; financial terms were not disclosed

  • CTI BioPharma (CTIC) to be acquired by Sobi for $9.10 per share

  • Entegris (ENTG) divests its Electronic Chemicals Business to Fujifilm for $700 mln

  • Franchise Group (FRG) announces definitive agreement to be acquired by a Consortium Led by Management Group for $30.00/share in cash

  • Livent (LTHM) and Allkem to to combine in an all-stock merger of equals

  • MVB Financial (MVBF) and Integrated Financial Holdings (IFHI) announce that they have mutually agreed to terminate their previously announced merger agreement dated August 12, 2022

  • Syneos Health (SYNH): Consortium including Elliott Investment Management and others is in talks to purchase Syneos, according to Bloomberg

Syndicate:

  • BeiGene (BGNE) files for 298,738,765 share common stock offering by selling shareholders; also files for 222,835,028 share common stock offering by selling shareholders in the form of ADSs; files mixed shelf securities offering

  • Bluebirdbio (BLUE) files $350 mln mixed shelf securities offering

  • Cue Biopharma (CUE) files $300 mln mixed shelf securities offering

  • Integral Ad Science (IAS) prices secondary offering of 10.0 mln shares of common stock at $15.00 per share

  • Mersana Therapeutics (MRSN) files mixed shelf securities offering

  • NextDecade (NEXT) files for 5,835,277 share common stock offering by selling shareholders

  • Rivian Automotive (RIVN) files mixed shelf securities offering

  • Silk Road Medical (SILK) files mixed shelf securities offering

  • Wintrust Fin (WTFC) files mixed shelf securities offering

IPOs:

  • Expected to Price:

    • No IPOs expected.

Gapping Up/Down

  • Gapping up:

    • CTIC +84.2%, UPST +32.6%, PLX +16.8%, SYNH+12%, CARG +11.2%, CELH +10.5%, FLYW +10%, RNG +9.7%, IAC +9%, LZ +8.6%, LPSN +8.3%, EXAS+8.2%, VZIO +7.1%, KIND +6.8%, RIVN +6.3%, GH+6.3%, GO +6.1%, LI +6.1%, ALC +5.8%, TOST +5.4%, LNW +5.3%, LPRO +5%, HALO +5%, AKAM +4.8%, SUPN +4.8%, MNKD +4.7%, PRIM +4.5%, BEN +4%, ZD +3.9%, EVRI +3.8%, NTRA +3.7%, PETQ +3.4%, EDR +3.3%, MODN +3.3%, VVX +3.1%, VTLE +2.9%, DAR +2.9%, RKLB +2.8%, TBPH +2.8%, QTWO +2.7%, NHI +2.6%, OLO +2.5%, CTOS +2.1%, AGTI +2%, HLI+2%, DIOD +2%, EA +2%, CE +1.9%, CDRE +1.8%, ONL +1.6%, DUOL +1.6%, BWEN +1.3%, CAMT+1.2%, APPN +1.1%, TWNK +1.1%, XENE +1.1%, LFST +1.1%, ALVO +1%, IOVA +1%, IVZ +0.9%, KGC+0.9%, ANGI +0.8%, RMBL +0.7%

  • Gapping down:

    • AMPL -18.7%, CUTR -17.4%, TWLO -16.6%, JXN-14.6%, ABNB -13.9%, IAS -12.9%, NVTA -12.4%, COHR -12.2%, TTGT -10%, RVNC -9.2%, SILK -9.1%, HRB -8.3%, AFRM -8.1%, BROS -7.6%, EBS -6.9%, ZIP -6.6%, RUM -6.5%, STR -6.4%, GDRX -6.4%, EVCM -6%, MODG -5.6%, ARRY -5.6%, CLNE -5.5%, ICHR -5.4%, MQ -5.2%, BLUE -4.7%, BBAI -4.7%, WTI -4.7%, EXFY -4.3%, VRDN -4.2%, FA -4%, AGL-3.9%, RXT -3.7%, EOLS -3.4%, SPCE -3.4%, OSCR-3.4%, ORA -3.2%, LTHM -3.1%, LAZR -2.8%, IRBT-2.3%, LNC -2.2%, HCAT -2.1%, APAM -2%, NEXT-2%, VTEX -1.9%, MASI -1.8%, RPD -1.7%, MRTX-1.7%, OXY -1.6%, BLNK -1.5%, HRT -1.5%, FOXA-1.4%, TSM -1.4%, BGNE -1.3%, ESE -1.3%, AB -1%, EGY -1%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Alcon (ALC) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $90

    • Celsius (CELH) upgraded to Buy from Neutral at BofA Securities; tgt raised to $125

    • InterDigital (IDCC) upgraded to Buy from Neutral at BofA Securities; tgt raised to $105

    • LegalZoom.com(LZ) upgraded to Market Perform from Underperform at MoffettNathanson; tgt $12

    • Nektar Therapeutics (NKTR) upgraded to Hold from Underperform at Jefferies; tgt lowered to $1

    • Tabula Rasa HealthCare (TRHC) upgraded to Outperform from Market Perform at SVB Securities; tgt raised to $10

  • Downgrades:

    • Anheuser-Busch InBev (BUD) downgraded to Hold from Buy at HSBC Securities

    • Azenta (AZTA) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

    • Bentley Systems (BSY) downgraded to Neutral from Buy at Rosenblatt; tgt raised to $47

    • Dutch Bros (BROS) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $33

    • Expensify (EXFY) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $8.50

    • Nikola Corporation (NKLA) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $1

    • Prometheus Biosciences (RXDX) downgraded to Hold from Buy at Jefferies; tgt raised to $200

    • Sealed Air (SEE) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $48

    • Southern Copper (SCCO) downgraded to Sell from Neutral at Goldman; tgt raised to $66

  • Others:

    • Antero Midstream (AM) initiated with a Buy at UBS; tgt $14

    • Hess Midstream Partners (HESM) initiated with a Buy at UBS; tgt $37

    • Oculis Holding AG (OCS) initiated with a Buy at Pareto; tgt $23

    • Voyager Therapeutics (VYGR) initiated with a Buy at Truist; tgt $18

Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for May 6 (Briefing.comConsensus NA; Prior -1.2%)

  • 08:30 ET: CPI for Apr (Briefing.comConsensus 0.4%; Prior 0.1%)

  • 08:30 ET: Core CPI for Apr (Briefing.comConsensus 0.3%; Prior 0.4%)

  • 10:30 ET: EIA Crude Oil Inventories for May 6 (Briefing.comConsensus NA; Prior -1.28M)

  • 14:00 ET: Treasury Budget for Apr (Briefing.comConsensus NA; Prior -$378.1B)

Earnings:

  • Monday (May 8)

    • Morning:  ACRS BNTX BTAI DK DISH ENR FRPT HNI KKR LL SIX THS TSN VTRS

    • Afternoon: DDD ACAD ADTN ACM AEL AVTA BRBR BHF BWXT CBT CERT DVA DVN DRQ WTRG FN FGEN HLIT HLIO HI HIMS HBM HPP ICUI IIPR IPAR IFF JELD KMPR KFRC LCID MRVI DOOR MCK MRC MWA PLTR PAY PYPL PRAA PRI PGNY ROVR SHLS SWAV TSLX SWKS TALO TASK TREX VECO VTR WDC XNCR YMAB

  • Tuesday (May 9)

    • Morning: MASS AHCO APD ALIT AMCX APO ARMK ATKR BALY BSY BLUE WHD CTLT CRNC CHH CLVT YOU CRBG COTY DOCN DUK EPC EHTH ELAN ESPR EVBG EVGO FSR FOXA GENI GFS HAIN HR HSIC HLMN HNST IGT J SWIM LCII LITE NXST NKLA NOVT NVAX OTLY OLPX PAYO PRGO RDNT SCSC SEAS SQSP STER SHOO SLVM TPX TWKS TDG UAA WRBY WMG WAT WE

    • Afternoon:  AFRM AGTI ABNB AKAM BIRD AMPL AMRS ANGI APPN ARRY AXON AZTA BTG BLND BLNK BE CDRE CARG CE CELH CLNE COMP CPNG CRCT CTOS CUTR DAR DIOD DUOL BROS EA EBS EDR ESE EXAS EXEL EXFY FLYW GPRO GO GH GXO HRB HALO HCAT HRT TWNK IAC ICFI ICHR NVTA IOVA IRBT JXN KGC LZ LNW LNC LPSN LAZR MNKD MQ MASI MTTR MRTX MODN NTRA NHI NKTR KIND OXY OLO LPRO ONL ORA PETQ PRIM PRA PTRA PUBM QTWO RXT RPD RVNC RNG RIVN SILK SUPN TTGT TOST MODG TWLO UPST VVX SPCE VRDN VTLE VZIO VTEX WTI WYNN XENE ZD ZIP

  • Wednesday (May 10)

    • Morning:  DIBS BLDP BCO BAM CAMT CLBT CEVA COHR EBIX EXK EVRI FA GDRX HL KRNT LI LFST MLCO MIDD NABL NYT NOMD ODP PFGC RETA REYN RBLX SHCR SYNH TBLA TEVA SKIN VVV VCEL VERX VSH WEN WWW XMTR

    • Afternoon:  ACVA ALRM ALGM DOX APP BYND CAKE CDE CPA CRSR CR LAW DM DV FLEX FRG G GRPN INO JAZZ MGNI MFC NTR NUVA OSUR PAAS PAR PYCR PLBY PRPL RPAY RBA HOOD SONO SOVO STE STKL TTEK TTD COOK U VUZI DIS

  • Thursday (May 11)

    • Morning: FLWS AQN ATHM CRL CYBR ENTG FVRR HAE HIMX HLLY JD KELYA DNUT EYE NICE NVMI PKI PGTI TPR TNK USFD UTZ YETI

    • Afternoon:  EGHT ARLO GEN HRTX INDI NWSA SANM SLF

  • Friday (May 12) 

    • Morning:  EMBC SPB


Asia & Europe detail:

Asia: Nikkei -0.4%, Hang Seng -0.5%, Shanghai Composite -1.2%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Bank of Japan Governor Ueda repeated that ETF purchases are part of large-scale easing and that there are no current problems with these purchases. Australia's Treasury is maintaining its FY22/23 growth forecast at 3.25% while the inflation forecast was lowered to 3.25 from 3.75%. There are growing expectations that the State Bank of Vietnam will continue cutting rates.

  • In economic data:

    • Japan's March Leading Index -0.7% m/m (last 1.4%) and Coincident Indicator 0.0% m/m (last 2.5%)

    • South Korea's March Current Account surplus $270 mln (expected deficit of -$800 mln; last deficit of $520 mln). April Unemployment Rate 2.6%, as expected (last 2.7%)

---Equity Markets---

  • Japan's Nikkei: -0.4%

  • Hong Kong's Hang Seng: -0.5%

  • China's Shanghai Composite: -1.2%

  • India's Sensex: +0.3%

  • South Korea's Kospi: -0.5%

  • Australia's ASX All Ordinaries: -0.1%

---FX---

  • USD/JPY: UNCH at 135.18

  • USD/CNH: +0.1% to 6.9288

  • USD/INR: -0.2% to 81.97

 

Europe: DAX -0.2%, FTSE -0.1%, CAC -0.2%

Major European indices trade a bit below their flat lines while Spain's IBEX (+0.1%) outperforms. European Central Bank President Lagarde said in an interview with Nikkei that there is more ground to cover in the central bank's fight against inflation while policymaker Schnabel also said that more has to be done to slow inflation. Credit Agricole reported better than expected results for Q1.

  • In economic data:

    • Germany's April CPI 0.4% m/m, as expected (last 0.8%); 7.2% yr/yr, as expected (last 7.4%)

    • Italy's March Industrial Production -0.6% m/m (expected 0.3%; last -0.2%); -3.2% yr/yr (expected -1.7%; last -2.3%)

---Equity Markets---

  • STOXX Europe 600: -0.2%

  • Germany's DAX: -0.2%

  • U.K.'s FTSE 100: -0.1%

  • France's CAC 40: -0.2%

  • Italy's FTSE MIB: -0.3%

  • Spain's IBEX 35: +0.1%

---FX---

  • EUR/USD: UNCH at 1.0955

  • GBP/USD: UNCH at 1.2618

  • USD/CHF: +0.1% to 0.8912

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