The S&P 500 futures are down 3 points and are trading roughly in line with fair value. The Nasdaq 100 futures are down 8 points and are trading slightly below fair value. The Dow Jones Industrial Average futures are down 30 points and are trading slightly below fair value.
Stock futures are somewhat mixed and little changed in front of a heavy week of earnings. Investors are eyeing potentially market-moving reports from Alphabet (GOOG) and Microsoft (MSFT) after the close April 25, Meta Platforms (META) after the close April 26, and Amazon.com(AMZN) after the close April 27.Also, First Republic Bank (FRC), which was in the middle of some of the bank industry fallout, reports earnings after the close today.
House Speaker Kevin McCarthy said the House will vote on a debt ceiling bill this week and he believes it will pass the chamber, according to Reuters. This bill will be dead on arrival in the Senate due to Democratic opposition.
Many GOP lawmakers are prepared to let a default happen, according to the Washington Post.
The 2-yr Treasury note yield is unchanged at 4.17% and the 10-yr note yield is down three basis points to 3.54%.
In corporate news:
Coca-Cola (KO 64.90, +0.85, +1.3%): beats by $0.03, beats on revs; reaffirms FY23 EPS guidance
Philips (PHG 21.39, +2.36, +12.4%): beats by 0.14, beats on revs; reaffirms outlook
Medtronic (MDT 86.91, +1.18, +1.4%): upgraded to Overweight from Equal Weight at Wells Fargo
Johnson & Johnson (JNJ 163.29, +0.60, 0.4%): to begin IPO roadshow of consumer healthcare unit
First Solar (FSLR 211.58, -5.31, -2.5%): downgraded to Sell from Neutral at Citigroup
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a mostly lower note. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -0.6%, China's Shanghai Composite: -0.8%, India's Sensex: +0.7%, South Korea's Kospi: -0.8%, Australia's ASX All Ordinaries: -0.1%.
In economic data:
Hong Kong's March Unemployment Rate 3.1% (expected 3.4%; last 3.3%)
Singapore's March CPI 5.5% yr/yr (expected 5.6%; last 6.3%) and Core CPI 5.0% yr/yr (expected 5.1%; last 5.5%)
In news:
Bank of Japan Governor Ueda said that it is too early to talk about normalizing yield curve control, and it is unclear how much wage growth will be needed to achieve the inflation objective.
Japan's Prime Minister Kishida said that he is not looking to call a snap election after members of his party won a handful of by-elections.
Banks in China are being urged to cut their deposit rates, according to Reuters.
Australia released its Defense Strategy Review, which noted that long-range strike capability will be prioritized.
Major European indices trade near their flat lines while Italy's MIB (-0.9%) underperforms. STOXX Europe 600: +0.1%, Germany's DAX: UNCH, U.K.'s FTSE 100: -0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: -0.4%.
In economic data:
Germany's April ifo Business Climate 93.6 (expected 94.0; last 93.2). April Current Assessment 95.0 (expected 96.0; last 95.4) and Business Expectations 92.2 (expected 91.5; last 91.0)
In news:
European Central Bank policymaker Wunsch said that a terminal rate of 4.0% could easily be reached while policymaker Stournaras said that rates are close to their peak.
The German government reached a wage agreement with a union of public sector workers.
EU Council President Michel said that the European Council will discuss policy on relations with China in June.
Standard & Poor's revised the U.K.'s outlook to Stable from Negative.
U.S. equity futures:
S&P 500 Futures: -3 @ 4,131
DJIA Futures: -35 @ 33,775
Nasdaq 100 Futures: -10 @ 12,991
Overseas:
Europe: DAX UNCH, FTSE -0.1%, CAC UNCH
Asia: Nikkei +0.1%, Hang Seng -0.6%, Shanghai Composite -0.8%
Commodities:
Crude Oil +0.18 @ 77.69
Nat Gas +0.002 @ 2.41
Gold +3.85 @ 1994.35
Silver +0.075 @ 25.355
Copper +0.0040 @ 3.9905
Earnings/Guidance:
Bank of Hawaii (BOH) misses by $0.09
Caledonia Mining (CMCL) reports Q1 production
Coca-Cola (KO) beats by $0.03, beats on revs; reaffirms FY23 EPS guidance
Credit Suisse (CS) reports Q1 pre-tax income of CHF 12.764 bln vs. (428 mln) last year; revs +319% yr/yr to CHF 18.5 bln
JinkoSolar (JKS) subsidiary provides Q1 financial update
MRC Global (MRC) sees Q1 revs above consensus
Philips (PHG) beats by 0.14, beats on revs; reaffirms outlook
Tesla (TSLA) disclosed in 10Q filing that it expects its capital expenditures to be between $7-9 billion in 2023 and in each of the following two fiscal years
News:
House Speaker Kevin McCarthy says House will vote on debt ceiling bill this week and he believes it will pass the chamber, according to Reuters
Canada civil service strike to enter second week, Bloomberg
US, UK, and France evacuated embassy staff from Sudan, according to the New York Times
Banks are concerned about commercial real estate, according to Financial Times
EPA will soon announce limits on greenhouse gas emissions from power plants that could compel use of carbon capture technology. Legal challenges are expected, according to the New York Times
FAA Acting Chief Billy Nolen will depart the agency, according to the Wall Street Journal
Supreme Court allows abortion pill mifepristone to remain on market for now, CNN
United Kingdom: S&P outlook revised to stable from negative on moderating fiscal risks; 'AA/A-1+' ratings affirmed
Italy: S&P 'BBB/A-2' ratings affirmed; outlook stable
Algonquin Power & Utilities (AQN) attracts Starboard Value LP as activists call for asset sales, according to Bloomberg
Andersons (ANDE) announces that ELEMENT, in which its a 51% owner through a joint venture, was placed into receivership pursuant to the Agreed Order Granting Application for Appointment of Receiver
ANI Pharma (ANIP) announced that it received FDA approval for the abbreviated new drug application for nitrofurantoin oral suspension USP, 25 mg/5 ml
Apellis (APLS) Presents Phase 3 Functional Analyses of SYFOVRE (pegcetacoplan injection) for Geographic Atrophy
Arm to produce advanced prototype semiconductor, according to Financial Times
AstraZeneca (AZN): NEURO-TTRansform Phase III results presented at AAN showed eplontersen demonstrated consistent and sustained improvement in all measures of disease and quality of life through 66 weeks
Bausch + Lomb (BLCO) launches StableVisc and TotalVisc in the US
Bed Bath & Beyond (BBBY) files voluntary Chapter 11 petitions; $240 million debtor-in-possession financing secured to support ongoing operations and Chapter 11 process
Bitfarms (BITF) confirmed the receipt of the necessary power permits to expand production up to 100 MW at its Rio Cuarto, Argentina facility
Bluebirdbio (BLUE) submits BLA for lovotibeglogene autotemcel (lovo-cel) for patients with Sickle Cell Disease (SCD) 12 years and older with a history of vaso-occlusive events
Canadian Nat'l Rail (CNI) and TCRC reach tentative agreement
Disney (DIS): There was a fire at a Disneyland show, according to Fox News
Extreme Networks (EXTR) has appointed Kevin Rhodes as Executive Vice President and Chief Financial Officer, effective May 30, 2023
Fidelity Nat'l Info (FIS) COO Ido Gileadi to step down at year end
Foghorn Therapeutics (FHTX) provides an update on FHD-609
General Dynamics (GD) awarded a $847 mln US Navy contract to support Navy aircraft carriers in the Mid-Atlantic region
General Motors (GM) to recall 40K trucks due to fire risk, according to the Wall Street Journal
Genmab (GMAB) to file appeal in its second arbitration under license agreement with Janssen
IDEAYA (IDYA) reports interim Phase 2 data for Darovasertib and Crizotinib combination and successful FDA Type C meeting on registrational trial design for accelerated approval in first-line metastatic uveal melanoma
Ionis Pharma (IONS): Eplontersen halted ATTRv-PN disease progression and improved neuropathy impairment and quality of life in Phase 3 study through 66 weeks
Krystal Biotech (KRYS) announces clinical data on topical application of B-VEC to the eye to treat ocular complications in a patient with dystrophic epidermolysis bullosa under a compassionate use program
Lantheus Holdings (LNTH) and POINT Biopharma Global (PNT) announce the U.S. FDA has granted Fast Track designation for 177Lu-PNT2002 for the treatment of metastatic castration resistant prostate cancer
Lockheed Martin (LMT) awarded a $2.45 bln US Army contract for PATRIOT Advanced Capability-3 missile production
Medtronic (MDT): FDA approves Medtronic MiniMed 780G System, the world's first insulin pump with meal detection technology
Micron (MU): US is urging South Korea not to fill shortfalls if China bans Micron chips, according toFinancial Times
NetList (NLST) won a $303 mln patent infringement award against Samsung (SSNLF)
Pardes Biosciences (PRDS): FS Development submits letter to board about exploring a go-private transaction
Portland Gen Elec (POR) raises quarterly dividend by 5% to $0.475 per share
Post (POST) announces expansion plans for its Michael Foods manufacturing and distribution facility
Procter & Gamble (PG) issues voluntary retrieval of a limited number of Zevo Fly, Gnat and Fruit Fly Flying Insect Killer Value Packs
Sanofi (SNY) launches AVAXIM Junior in the UK
SVB Financial Group (SIVB) CFO and CEO have resigned
Tesla (TSLA) wins trial over California Autopilot crash, according to Reuters
Tesla (TSLA) will produce Model Y in China to export to Canada, according to Reuters
Toyota (TM) aiming to increase local supply chains for EVs, according to Financial Times
Waste Connections (WCN) names Ronald Mittelstaedt as President and CEO; reaffirms FY23outlook
M&A:
Axonics Modulation (AXNX) announced the acquisition of a placement solution from Radian, LLC that complements Axonics' existing sacral neuromodulation offering
Casella Waste (CWST) to acquire select solid waste operations from GFL Environmental Inc (GFL) for a purchase price of $525 million
Eli Lilly (LLY) to divest BAQSIMI to Amphastar (AMPH)
Freedom Holding Corp. (FRHC) to acquire the Aviata and ?hocotravel service platforms from Chocofamily Holding for $32.3 million
PacWest Bancorp (PACW) considering sale of its lender finance unit, according to Bloomberg
TravelCenters of America (TA): Following engagement with ARKO, TA Board reaffirmed ARKO proposal is not superior to pending BP transaction
Syndicate:
Oatly Group AB (OTLY) files mixed shelf securities offering
Ocean Biomedical (OCEA) files for share common stock offering of an aggregate of up to 12,100,054 shares, relates to warrants
Scilex Holding (SCLX) files for $300 mln common stock offering
IPOs:
Johnson & Johnson (JNJ) to begin IPO roadshow of consumer healthcare unit, according to the Wall Street Journal
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
PHG +11.3%, IDYA +7.6%, PRDS +6.9%, ANDE +3%, CS +2.8%, MDT +1.6%
Gapping down:
BBBY -37.6%, OCEA -4%, AXNX -2.9%, POR -1.1%, SNY -0.8%, JKS -0.7%, WCN -0.5%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Ally Financial (ALLY) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $28
Clearwater Paper (CLW) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $42
Downgrades:
Arbor Realty Trust (ABR) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $11
Heritage Financial Corp. (HFWA) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $23
Others:
Broadridge Financial (BR) initiated with an Outperform at RBC Capital Mkts; tgt $169
Endeavor Group (EDR) initiated with a Buy at Seaport Research Partners; tgt $30
Econ Data:
No economic data of note.
Earnings:
Monday (Apr 24)
Morning: BOH KO PHG
Afternoon: AGNC ARE AMP NTB BRO CADE CDNS CNI CHX CLF CCK FRC HSTM HTLF HXL HOPE IBTX MEDP PKG PCH RRC SSD TENB AAN TBI WSBC WHR WSFS
Tuesday (Apr 25)
Morning: MMM ABB ADM ARCC AWI ABG AUB BKU BIIB CNC CBU GLW DHR DOW FBP FCF FISV GATX GEHC GE GM GEO HAL HUBB IVZ JBLU KMB LH LKFN LTH MCD MCO MSCI NEE NEP NTRS NVS NVR ONB OMF PCAR PEP PII PHM RTX ST SHW SSTK SFNC SITC SBSI SPOT SCL THC TRU UBS UPS VZ XRX
Wednesday (Apr 26)
Morning: ALKS ALLE AMT APH ADP AVY BXMT BA BOKF BSX CVE GIB CME CSTM DOV ETR EVR EXTR FSV FTV GD GPI HES HLT HUM NSP IART MKTX MAS COOP NAVI NSC ODFL OTIS OC PAG BPOP PDS PRG PB RCI RES R SLGN SLAB SF TMHC TEL TECK TDY TMO TNL UBSI UMC VRT WNC WAB
Afternoon: TWOU ACHC AFL AGI ALGN AB AWK NLY AM AR ACGL ASGN AZPN AVB AXS BMRN CHRW CACI CP CLS CCS CHDN COLB FIX CNMD CLB CVBF EBAY EW ESI EPR EQT ETD EVTC FIBK FBIN FTAI GSHD GGG HELE HP ICLR IEX PI KALU KRC KLAC LSTR LC LXFR MAT MXL MMSI MTH META MEOH MAA MC MOH MYRG NTGR NVRO NOV ORLY OII CASH PTEN PEB PEGA PPC PXD PLXS PTC QS RJF RHI ROKU ROL SAFE SLM SGMO NOW SNBR SAVE SPSC STAG STC SUI NOVA TDOC TER TNET TROX TYL UDR UCTT URI WCN WM WSC WOLF WH
Thursday (Apr 27)
Morning: AOS ABBV MO AAL AIT ARCH AMBP AZN B BAX BFH BMY BC CRS CARR CAT CBZ CBRE CNP CHD CMS CNX CMCSA CROX CTS CFR DPZ DTE LLY EME EXLS FIS FAF FCFS FCN THRM GWW HEES HOG HAS HSY HTZ HGV HON IP ITGR ICPT IPG IQV KDP KIM KEX LEA LII LECO LIN LKQ HZO MA MPW MRK MBLY NEM NOC OSIS OSTK PPBI PATK BTU PNR DGX RS ROK ROP SPGI SNY SNDR SIRI SWI SAH SO LUV SRCL STM STRA FTI TXT SHYF TSCO TW TPH TRS VLO VLY VC WST WEX WTW WNS XEL
Afternoon: ACCD ATVI AEM ALSN AYX AMZN ABCB AMGN ATR ACA AJG AX BZH BJRI SAM CPT COF CSL CWST CC CINF NET COLM OFC COUR CUZ CUBE DXCM DLR EMN ELME EIG EHC ESS EXPO FICO FHI FSLR FE GLPI GFL GILD HIG PEAK HUBG IMAX INTC KNSL KN LHX LPLA LTC MTX MHK MDLZ NATI NWE OIS OLN PFSI PINS PFG PFS PTCT RSG RMD SGEN SKX SKYW SM SNAP SSB SWN SSNC SNCY TMUS SKT SLCA X VRSN WY
Friday (Apr 28)
Morning: AON ARCB ARES AVTR BLMN CCJ GTLS CHTR CVX CL DAN XOM FHB GNTX EAF IMGN IMO JKS LAZ LYB MOG.A NYCB NWL NVT POR SAIA SXT STEL TRP TNC WPC WT
Asia & Europe detail:
Asia: Nikkei +0.1%, Hang Seng -0.6%, Shanghai Composite -0.8%
Equity indices in the Asia-Pacific region began the week on a mostly lower note. Bank of Japan Governor Ueda said that it is too early to talk about normalizing yield curve control, and it is unclear how much wage growth will be needed to achieve the inflation objective. Japan's Prime Minister Kishida said that he is not looking to call a snap election after members of his party won a handful of by-elections. Banks in China are being urged to cut their deposit rates, according to Reuters. Australia released its Defense Strategy Review, which noted that long-range strike capability will be prioritized.
In economic data:
Hong Kong's March Unemployment Rate 3.1% (expected 3.4%; last 3.3%)
Singapore's March CPI 5.5% yr/yr (expected 5.6%; last 6.3%) and Core CPI 5.0% yr/yr (expected 5.1%; last 5.5%)
---Equity Markets---
Japan's Nikkei: +0.1%
Hong Kong's Hang Seng: -0.6%
China's Shanghai Composite: -0.8%
India's Sensex: +0.7%
South Korea's Kospi: -0.8%
Australia's ASX All Ordinaries: -0.1%
---FX---
USD/JPY: +0.4% to 134.58
USD/CNH: UNCH at 6.8979
USD/INR: -0.2% to 81.87
Europe: DAX UNCH, FTSE -0.1%, CAC UNCH
Major European indices trade near their flat lines while Italy's MIB (-0.9%) underperforms. European Central Bank policymaker Wunsch said that a terminal rate of 4.0% could easily be reached while policymaker Stournaras said that rates are close to their peak. The German government reached a wage agreement with a union of public sector workers. EU Council President Michel said that the European Council will discuss policy on relations with China in June. Standard & Poor's revised the U.K.'s outlook to Stable from Negative.
In economic data:
Germany's April ifo Business Climate 93.6 (expected 94.0; last 93.2). April Current Assessment 95.0 (expected 96.0; last 95.4) and Business Expectations 92.2 (expected 91.5; last 91.0)
---Equity Markets---
STOXX Europe 600: +0.1%
Germany's DAX: UNCH
U.K.'s FTSE 100: -0.1%
France's CAC 40: UNCH
Italy's FTSE MIB: -0.9%
Spain's IBEX 35: -0.4%
---FX---
EUR/USD: +0.2% to 1.1007
GBP/USD: UNCH at 1.2432
USD/CHF: -0.3% to 0.8894
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