The S&P 500 futures are down 9 points and are trading 0.2% below fair value. The Nasdaq 100 futures are up 17 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are down 119 points and are trading 0.3% below fair value.
The equity futures market has been mixed this morning. Investors are hesitant after yesterday's rally due to weakness again in bank stocks, particularly First Republic Bank (FRC), acting as a headwind.
Reports indicate that banks borrowed $11.9 billion from the Bank Term Funding Program and a record $153 billion from the Fed's discount window for the week ending March 15.
In other central bank news, The People's Bank of China announced a 25-bps cut to the reserve requirement ratio, which will be effective March 27.
Treasury yields are fading this morning. The 10-yr note yield is down eight basis points to 3.50% and the 2-yr note yield is down two basis points to 4.11%.
Market participants will receive the following economic data today:
9:15 a.m. ET: February Industrial Production (Briefing.com consensus 0.5%; prior 0.0%) and Capacity Utilization (Briefing.com consensus 78.5%; prior 78.3%)
10:00 a.m. ET: February Leading Indicators (Briefing.com consensus -0.4%; prior -0.3%) and March Univ. of Michigan Consumer Sentiment - Prelim (Briefing.com consensus 67.2; prior 67.0)
In corporate news:
FedEx (FDX 227.92, +23.87, +11.7%): beats by $0.67, misses on revs; raises FY23 EPS guidance
Sarepta Therapeutics (SRPT 123.98, -25.69, -17.2%): moving lower after FDA determines that an advisory committee meeting will be held for SRP-9001
NVIDIA (NVDA 259.96, +4.55, +1.8%): upgraded to Overweight from Equal Weight at Morgan Stanley
Bumble (BMBL 19.55, +0.18, +0.9%): Citi initiated coverage with a Buy
First Republic Bank (FRC 29.60, -4.67, -13.6%): confirms it will receive $30 bln; provides cash position update; will suspend dividend
U.S. Steel (X 25.35, +0.83, +3.4%): guides Q1 EPS above consensus; expects trends to continue into Q2
Bidu (BIDU 144.50, +6.35, +4.6%): wins China Capital City's first-ever permit to provide fully driverless ride-hailing service
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the week on a higher note. Japan's Nikkei: +1.2% (-2.9% for the week), Hong Kong's Hang Seng: +1.6% (+1.0% for the week), China's Shanghai Composite: +0.7% (+0.6% for the week), India's Sensex: +0.6% (-1.9% for the week), South Korea's Kospi: +0.8% (+0.1% for the week), Australia's ASX All Ordinaries: +0.5% (-2.2% for the week).
In economic data:
China's February FDI 6.1% YTD (last 14.5%)
Japan's February Tertiary Industry Activity Index 0.9% m/m (expected 0.5%; last -0.4%)
Singapore's February trade surplus SGD6.71 bln (last surplus of SGD6.28 bln). February non-oil exports -8.0% m/m (expected -0.5%; last 0.9%); -15.6% yr/yr (expected -16.0%; last -25.0%)
In news:
The People's Bank of China announced a 25-bps cut to the reserve requirement ratio, which will be effective March 27.
China Securities Journal speculated that the Chinese economy needs more fiscal and monetary policy support.
Outgoing Bank of Japan Governor Kuroda said that he believes the central bank still has room to lower rates below -0.10%.
Japan's trade minister said that South Korea has not been granted "white nation status" and that export controls remain in place.
Major European indices trade in positive territory. STOXX Europe 600: +0.2% (-2.4% week-to-date), Germany's DAX: -0.1% (-3.0% week-to-date), U.K.'s FTSE 100: +0.2% (-4.2% week-to-date), France's CAC 40: -0.2% (-2.9% week-to-date), Italy's FTSE MIB: UNCH (-5.0% week-to-date), Spain's IBEX 35: -0.2% (-4.5% week-to-date).
In economic data:
Eurozone's February CPI 0.8% m/m, as expected (last -0.2%); 8.5% yr/yr, as expected (last 8.6%). February Core CPI 0.8% m/m, as expected (last -0.8%); 5.6% yr/yr, as expected (last 5.3%). Q4 Labor Cost Index 5.7% yr/yr (last 3.7%)
Italy's January trade deficit EUR2.81 bln (last deficit of EUR2.64 bln)
In news:
European Central Bank policymaker Kazimir said that the ECB is not at the finish line yet and that rate hikes should continue despite recent events while policymaker Villeroy de Galhau said that fighting inflation remains the priority.
Credit Suisse and UBS reportedly opposed a forced merger.
U.S. equity futures:
S&P 500 Futures: -9 @ 3,951
DJIA Futures: -119 @ 32,128
Nasdaq 100 Futures: +10 @ 12,591
Overseas:
Europe: DAX -0.1%, FTSE +0.2%, CAC -0.2%
Asia: Nikkei +1.2%, Hang Seng +1.6%, Shanghai Composite +0.7%
Commodities:
Crude Oil +0.48 @ 68.83
Nat Gas -0.080 @ 2.434
Gold +15.95 @ 1938.95
Silver +0.305 @ 21.997
Copper +0.0705 @ 3.935
Earnings/Guidance:
Algonquin Power & Utilities ( AQN ▴ 0.39% ) beats by $0.02, beats on revs; reaffirms FY23 EPS guidance
BioLife Solutions ( BLFS ▾ 6.98% ) reports Q4 results, beats on revs, guides FY23 revs in-line
Blend Labs ( BLND ▾ 3.92% ) misses by $0.05, misses on revs; guides Q1 revs below consensus
FedEx ( FDX ▴ 4.48% ) beats by $0.67, misses on revs; raises FY23 EPS guidance
Groupon ( GRPN ▾ 3.92% ) misses by $0.02 (two ests), misses on revs; withdraws FY23 free cash flow and adjusted EBITDA guidance due to macroeconomic environment and being amid its turnaround strategy
Hallador Energy ( HNRG ▴ 7.00% ) beats on top and bottom lines
PLBY Group ( PLBY ▾ 2.49% ) misses by $0.13 (single estimate), misses on revs
Purple Innovation ( PRPL ▴ 1.54% ) misses by $0.04, beats on revs; guides FY23 revs above consensus
Traeger ( COOK ▾ 7.10% ) beats by $0.08, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus
U.S. Steel ( X ▴ 0.33% ) guides Q1 EPS above consensus; expects trends to continue into Q2
News:
Chinese President Xi will visit Russia next week to meet with Russian President Putin, according to the New York Times
French government increased retirement age to 64 despite widespread protests, according to CNN
Banks borrowed $11.9 billion from the new Bank Term Funding Program as of the close on March 15 - CNBC
Germany aiming to block EU ban on new combustion engines, according to Financial Times
U.S. 'AA+/A-1+' sovereign ratings affirmed at S&P last night; outlook remains stable
Alcoa ( AA ▴ 2.46% ) closing its Intalco aluminum smelter in Washington, been idle since 2020; preparing the site for new economic development
Amgen ( AMGN ▾ 0.14% ) to eliminate 450 jobs, according to Reuters
Baidu ( BIDU ▴ 3.80% ) wins China Capital City's first-ever permit to provide fully driverless ride-hailing service
Baidu ( BIDU ▴ 3.80% ) ChatGPT software had mixed reviews, according to the Wall Street Journal
BridgeBio Pharma ( BBIO ▾ 3.09% ) announces that preliminary data on the Company's muscle tissue-based bioassay measuring glycosylated ?DG in LGMD2I patients will be featured in an oral presentation and posters at the MDA 2023 Annual Meeting
Clearwater Paper ( CLW ▴ 0.30% ) CFO Michael Murphy to depart; will continue to serve through Q2
Coinbase Global ( COIN ▴ 5.13% ) investigating elevated error rates across its website; states funds are safe per Coinbase Support Twitter account
Credit Suisse ( CS 0.00% ) liquidity measures did not fall from March 8-14, according to Reuters
Diebold Nixdorf ( DBD ▾ 2.13% ): 10-K filing saying co will need additional capital to sustain operating needs
Eni S.p.A. ( E ▴ 0.19% ) proposes new buyback program
Eni S.p.A. ( E ▴ 0.19% ) announces a new discovery offshore Mexico
First Republic Bank ( FRC ▴ 9.92% ) confirms it will receive $30 bln; provides cash position update; will suspend dividend
Hooker Furniture ( HOFT ▴ 1.68% ) approved a plan to exit the Accentrics Home; expects to record an approximate $34 million non-cash charge
KeyCorp ( KEY ▴ 4.51% ) appoints Clark H. I. Khayat as CFO, effective immediately, succeeding Donald Kimble who retired today; will stay on as Vice Chairman and Chief Administrative Officer until May 1, 2023
Lifecore Biomedical ( LFCR ▴ 2.00% ) intends to explore strategic alternatives, including a possible sale of the company or potential debt or equity financing transactions
Merck ( MRK ▾ 0.27% ) Provides Update from Open-Label Arm of Phase 2 KeyVibe-002 Trial Evaluating MK-7684A, a Coformulation of Vibostolimab and Pembrolizumab, in Previously Treated Patients with Metastatic Non-Small Cell Lung Cancer (NSCLC)
Meta Platforms ( META ▴ 3.63% ): Dan Niles tweets that his firm trimmed some META, but plans to buy it back
Nexa Resources ( NEXA 0.00% ): Production at the Cerro Lindo mine is suspended due to unusual heavy rainfall
NextEra Energy ( NEE ▾ 0.86% ) Chairman/CEO entered into a pre-arranged stock trading plan to purchase shares of NEE common stock
Nikola Corporation's ( NKLA ▴ 6.71% ) move to transition battery manufacturing from California to Arizona expected to be completed by April 2023, months ahead of schedule
Novartis' ( NVS ▴ 0.83% ) Tafinlar + Mekinist approved by FDA for pediatric patients with BRAF V600E low-grade glioma
PennyMac ( PFSI ▴ 2.78% ) and PennyMac Mortgage (PMT) do not currently maintain any deposits or have any financing arrangements with Silicon Valley Bank (SIVB), Bank or Signature Bank (SBNY)
Pfizer ( PFE ▴ 0.22% ) and Astellas (ALPMY) report Phase 3 study showing XTANDI (enzalutamide) plus Leuprolide significantly improves metastasis-free survival in men with non-metastatic prostate cancer
PLBY Group ( PLBY ▾ 2.49% ) CFO Lance Barton will depart by June 30
Range Resources ( RRC ▴ 4.28% ) announces that CEO Jeff Ventura plans to retire from the Company effective June 2, 2023 and will not seek reelection to the Board
Repsol SA ( REPYY ) abandons idea of expanding a LNG terminal on Canada's east coast, according to Bloomberg
Revolve Group ( RVLV ▾ 0.92% ) partners with Jennifer Lopez to launch an exclusive line of footwear
Samsara ( IOT ▾ 1.42% ) partners with UK-based fleet safety provider Motormax to provide new levels of fleet vehicle safety
Sanofi ( SNY ▴ 1.16% ) cuts U.S. list price of Lantus by 78% and caps out-of-pocket costs at $35 for all patients with commercial insurance
Sarepta Therapeutics ( SRPT ▴ 2.89% ): FDA determines that an advisory committee meeting will be held for SRP-9001
Schwab ( SCHW ▾ 2.80% ) clients are shifting to government portfolios, according to Bloomberg
Shoe Carnival ( SCVL ▾ 0.45% ) announces appointment of Erik Gast as Executive Vice President and Chief Financial Officer, effective April 24, 2023
STAG Industrial ( STAG ▴ 0.31% ) Executive Chairman Ben Butcher to retire at the end of current one-year term on June 30, 2023; Larry T Guillemette appointed as independent Chairman, effective July 1
Sun Life ( SLF ▴ 0.74% ) partners with Goodpath to provide disability members access to treatment for back or neck musculoskeletal conditions, or long COVID-19
SVB Financial Group ( SIVB ▾ 62.76% ): Citadel over the weekend offered to buy Circle Internet deposits, according to the Wall Street Journal
Thermo Fisher ( TMO ▴ 2.65% ) appoints Cory Stevenson as Executive Chairman; joined Board in 2022, previously served as President of BioProduction division at TMO
TikTok's discussions with potential buyers heating up, according to the New York Times
TikTok CEO Shou Zi Chew believes sale will not protect US data, according to the Wall Street Journal
TikTok sale will likely be rejected by China, according to The Information
Tilray Brands ( TLRY ▴ 9.32% ) Stockholders Approve Charter Amendment to Enhance Corporate Governance and Support Strategic Growth Plan
Tupperware ( TUP ▾ 1.20% ) to restate financial results; expects to delay filing of its 10-K; determines that material weaknesses exist in its internal control over financial reporting
Wolverine ( WWW ▴ 1.20% ) announces that its Chairman and retired CEO, Blake Krueger, will be retiring from the Board on May 4, 2023. Tom Long, the Board's Lead Independent Director, has been appointed to serve as Chairman
Zevra Therapeutics ( ZVRA ▴ 3.52% ) announces collaboration with RARE-X and the Sleep Consortium as founding member of new Sleep Data Initiative
M&A:
ACI Worldwide ( ACIW ▴ 13.57% ): Motive Partners in talks to buy ACIW, according to Bloomberg
Aerojet Rocketdyne ( AJRD ▾ 0.66% ) shareholders approve previously proposed acquisition by L3Harris Technologies (LHX)
Laboratory Corp ( LH ▾ 0.05% ) acquires assets of Enzo Biochem's (ENZ) Clinical Laboratory division; financial details not disclosed
UnitedHealth ( UNH ▴ 1.42% ): UK CMA issues phase one decision on UNH proposed acquisition of EMIS Group Plc; referred for a phase 2 investigation
Syndicate:
Amyris ( AMRS ▴ 10.92% ) files for $1 bln mixed securities shelf offering
DMC Global ( BOOM ▴ 2.96% ) files $200 mln mixed securities shelf offering
Fusion Pharmaceuticals ( FUSN ▾ 1.67% ) files for 17,648,596 share common stock offering by selling shareholders
Sight Sciences ( SGHT ▾ 0.71% ) files $200 mln mixed securities shelf offering
Veru ( VERU ▴ 1.09% ) files $200 mln mixed securities shelf offering
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
HNRG +13.9%, FDX +11.4%, LFCR +7%, MARA +5.9%, BIDU +5.3%, X +4.8%, COIN +4%, UPS +3.6%, ORLA +2.8%, ACIW +2.6%, E +2.3%, CLF +1.6%, STLD +1.6%, AA +1.4%, MED +1.4%, RVLV +1.3%, STAG +1%
Gapping down:
DBD -24.3%, SRPT -20.7%, RBBN -8.7%, AMRS -6.1%, BLND -5.4%, GRPN -5.3%, PRPL -4.5%, FRC -4.3%, PLBY -4.1%, PACW -3.1%, AROW -2.5%, CUTR -2.3%, HEAR -2%, META -1.4%, SCVL -1.3%, TUP -1.2%, CBAY -1.1%, BOOM -0.9%
Analyst Research (see Upgrades/Downgrades calendar for full list:
Upgrades
American Airlines (AAL) upgraded to Peer Perform from Underperform at Wolfe Research
Chubb (CB) upgraded to Overweight from Neutral at JP Morgan; tgt $239
Downgrades:
Bread Financial (BFH) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $35
CareMax (CMAX) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $4
Cerevel Therapeutics (CERE) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $29
Others:
Atour Lifestyle Hldgs. Ltd. (ATAT) initiated with a Buy at Citigroup; tgt $28.30
Bumble Inc. (BMBL) initiated with a Buy at Citigroup; tgt $24
Centessa Pharmaceuticals (CNTA) initiated with an Outperform at SVB Securities; tgt $6
Churchill Downs (CHDN) initiated with a Buy at Truist; tgt $300
Econ Data:
09:15 ET: Industrial Production for Feb (Briefing.com Consensus 0.5%; Prior 0.0%)
09:15 ET: Capacity Utilization for Feb (Briefing.com Consensus 78.5%; Prior 78.3%)
10:00 ET: Leading Indicators for Feb (Briefing.com Consensus -0.4%; Prior -0.3%)
10:00 ET: Univ. of Michigan Consumer Sentiment - Prelim for March (Briefing.com Consensus 67.2; Prior 67.0)
Earnings:
Monday (Mar 13)
Afternoon: GTLB
Tuesday (Mar 14)
Morning: CAL IHS SGHC
Afternoon: CTOS GES LEN S SMAR STNE
Wednesday (Mar 15)
Morning: EBIX GDS OTLY PACK
Afternoon: ADBE AMRS ARRY CDRE FIVE FNV PD TPC PATH ZTO
Thursday (Mar 16)
Morning: ASO DBI DG GIII MOMO HNST JBL BEKE SIG TITN WSM
Afternoon: BLND FDX PLBY PRPL COOK
Friday (Mar 17)
Morning: AQN BLDP
Asia & Europe detail:
Asia: Nikkei +1.2%, Hang Seng +1.6%, Shanghai Composite +0.7%
Equity indices in the Asia-Pacific region ended the week on a higher note. The People's Bank of China announced a 25-bps cut to the reserve requirement ratio, which will be effective March 27. China Securities Journal speculated that the Chinese economy needs more fiscal and monetary policy support. Outgoing Bank of Japan Governor Kuroda said that he believes the central bank still has room to lower rates below -0.10%. Japan's trade minister said that South Korea has not been granted "white nation status" and that export controls remain in place.
In economic data:
China's February FDI 6.1% YTD (last 14.5%)
Japan's February Tertiary Industry Activity Index 0.9% m/m (expected 0.5%; last -0.4%)
Singapore's February trade surplus SGD6.71 bln (last surplus of SGD6.28 bln). February non-oil exports -8.0% m/m (expected -0.5%; last 0.9%); -15.6% yr/yr (expected -16.0%; last -25.0%)
---Equity Markets---
Japan's Nikkei: +1.2% (-2.9% for the week)
Hong Kong's Hang Seng: +1.6% (+1.0% for the week)
China's Shanghai Composite: +0.7% (+0.6% for the week)
India's Sensex: +0.6% (-1.9% for the week)
South Korea's Kospi: +0.8% (+0.1% for the week)
Australia's ASX All Ordinaries: +0.5% (-2.2% for the week)
---FX---
USD/JPY: -0.3% to 133.11
USD/CNH: UNCH at 6.8915
USD/INR: UNCH at 82.53
Europe: DAX -0.1%, FTSE +0.2%, CAC -0.2%
Major European indices trade in positive territory. European Central Bank policymaker Kazimir said that the ECB is not at the finish line yet and that rate hikes should continue despite recent events while policymaker Villeroy de Galhau said that fighting inflation remains the priority. Credit Suisse and UBS reportedly opposed a forced merger.
In economic data:
Eurozone's February CPI 0.8% m/m, as expected (last -0.2%); 8.5% yr/yr, as expected (last 8.6%). February Core CPI 0.8% m/m, as expected (last -0.8%); 5.6% yr/yr, as expected (last 5.3%). Q4 Labor Cost Index 5.7% yr/yr (last 3.7%)
Italy's January trade deficit EUR2.81 bln (last deficit of EUR2.64 bln)
---Equity Markets---
STOXX Europe 600: +0.2% (-2.4% week-to-date)
Germany's DAX: -0.1% (-3.0% week-to-date)
U.K.'s FTSE 100: +0.2% (-4.2% week-to-date)
France's CAC 40: -0.2% (-2.9% week-to-date)
Italy's FTSE MIB: UNCH (-5.0% week-to-date)
Spain's IBEX 35: -0.2% (-4.5% week-to-date)
---FX---
EUR/USD: +0.2% to 1.0630
GBP/USD: +0.2% to 1.2135
USD/CHF: -0.2% to 0.9267
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