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Writer's pictureSimon Charles Hooper

30/03/23 Briefing

The S&P 500 futures are up 21 point and are trading 0.5% above fair value. The Nasdaq 100 futures are up 64 points and are trading 0.5% above fair value. The Dow Jones Industrial Average futures are up 194 points and are trading 0.6% above fair value.

Yesterday's positive disposition has carried over this morning with the equity futures market showing decent gains. Worries about the banking industry continue to ease, offering support to the broader market, as evidenced by the price action in many bank stocks ahead of the open. Gains in the mega cap space have also been supportive for the broader market so far this morning.

Notably, many overseas indices trade firmly higher again today. This is partially thanks to a cooler than expected March CPI (4.0% yr/yr; expected 5.5% yr/yr) reading from Spain. Spain's pleasing data comes ahead of the latest inflation reading for the U.S. in the form of the PCE Price Index (the Fed's preferred inflation gauge) tomorrow at 8:30 a.m. ET.

Market will receive the following economic data today:

  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 196,000; prior 191,000), Continuing Claims (prior 1.694 mln), Q4 GDP -- third estimate (Briefing.com consensus 2.7%; prior 2.7%), and GDP Deflator -- third estimate (Briefing.com consensus 3.9%; prior 3.9%)

  • 10:30 ET: Weekly natural gas inventories (prior -72 bcf)

In corporate news:

  • Roku (ROKU 66.30, +2.39, +3.7%): approved a restructuring plan - expected to impact approximately 200 employees, approximately 6% of the Company's workforce

  • Charles Schwab (SCHW 54.55, -0.66, -1.2%): downgraded to Equal Weight from Overweight at Morgan Stanley

  • RH 1.83% (RH 230.02, -15.69, -6.4%): misses by $0.48, reports revs in-line; guides Q1 revs below consensus; guides FY24 revs below consensus; expects business conditions to remain challenging for next several quarters and possibly longer

  • Philip Morris International (PM 96.36, +1.64, +1.7%): upgraded to Overweight from Neutral at JPMorgan

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while India's Sensex was closed for Ram Navami. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: +0.7%, India's Sensex: CLOSED, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +1.1%.

    • In economic data:

      • South Korea's April Manufacturing BSI Index 67 (last 65)

      • New Zealand's February Building Consents -9.0% m/m (last -5.2%). March ANZ Business Confidence -43.4 (expected -40.0; last -43.3)


  • In news:

    • China's Premier Li Qiang delivered his first major speech, lauding improved economic performance in March relative to the first two months of the year.

    • China and Brazil agreed to trade in their own currencies instead of the U.S. dollar.

    • Thailand's central bank announced a 25-bps rate hike to 1.75%, as expected.



  • Major European indices trade on a firmly higher note, thanks in part to a cooler than expected March CPI reading from Spain. STOXX Europe 600: +1.2%, Germany's DAX: +1.3%, U.K.'s FTSE 100: +0.9%, France's CAC 40: +1.4%, Italy's FTSE MIB: +1.3%, Spain's IBEX 35: +1.6%.

    • In economic data:

      • Eurozone's March Business and Consumer Survey 99.3 (expected 99.8; last 99.6)

      • Italy's February Unemployment Rate 8.0%, as expected (last 8.0%). February PPI -1.0% m/m (last -7.5%); 9.6% yr/yr (last 31.7%)

      • Spain's February Retail Sales 4.0% yr/yr (last 5.5%). March CPI 0.4% m/m (expected 0.7%; last 0.9%); 3.3% yr/yr (expected 3.8%; last 6.0%). March Business Confidence -2.9 (expected -4.5; last -5.8)

      • Swiss March KOF Leading Indicators 98.2 (expected 100.5; last 98.9)


  • In news:

    • European Central Bank policymaker Schnabel said that rising unit labor costs suggest the presence of second round inflationary effects, adding that she has not seen a general outflow of deposits from eurozone banks.

    • The latest economic bulletin from the ECB noted that inflation is projected to remain "too high for too long."

    • Bank of England policymaker Mann said that the central bank is facing a tough task during the second half of 2023 since core inflation has not slowed as much as headline inflation.



U.S. equity futures:

  • S&P 500 Futures: +22 @ 4,049

  • DJIA Futures: +196 @ 32,913

  • Nasdaq 100 Futures: +64 @ 12,910

Overseas:

  • Europe: DAX +1.3%, FTSE +0.9%, CAC +1.4%

  • Asia: Nikkei -0.4%, Hang Seng +0.6%, Shanghai Composite +0.7%

Commodities:

  • Crude Oil +0.59 @ 73.56

  • Nat Gas -0.020 @ 2.169

  • Gold +2.25 @ 1986.75

  • Silver +0.452 @ 23.918

  • Copper +0.0233 @ 4.1098


Earnings/Guidance:

  • AngioDynamics ( ANGO 0.56% ) misses by $0.02, misses on revs; lowers FY23 guidance

  • Avadel Pharmaceuticals ( AVDL 3.26% ) announces Q4 earnings and other corporate items

  • Concentrix ( CNXC 1.79% ) misses by $0.04, reports revs in-line; guides MayQ revs above two analyst estimate; guides FY23 revs in-line

  • EVgo Inc. ( EVGO 3.23% ) beats by $0.13, beats on revs; guides FY23 revs in-line

  • H.B. Fuller ( FUL 0.86% ) misses by $0.04, misses on revs; guides FY23 EPS in-line

  • Li-Cycle ( LICY 3.97% ) Reports Operational and Financial Results for Two-Month Period Ended December 31, 2022

  • Manchester United ( MANU 0.31% ) reports Q2 (Dec) results, beats on revs

  • Planet Labs ( PL 3.81% ) misses by $0.04, reports revs in-line; guides AprQ revs below consensus; guides FY24 revs in-line

  • RH ( RH 1.83% ) misses by $0.48, reports revs in-line; guides Q1 revs below consensus; guides FY24 revs below consensus; expects business conditions to remain challenging for next several quarters and possibly longer

  • Rogers Corp ( ROG 0.91% ) provides 2025 guidance ahead of investor day (no consensus estimates)

  • Semtech ( SMTC 3.21% ) reports EPS in-line, beats on revs; guides AprQ EPS below consensus, revs above consensus

  • Sprinklr ( CXM 2.26% ) beats by $0.04, beats on revs; guides AprQ EPS below consensus, revs below consensus; guides FY24 EPS above consensus, revs mostly above consensus

  • Toyota Motor ( TM 1.26% ) announces February worldwide sales -10.3% yr/yr to 773,271 units

  • Verint Systems ( VRNT 1.93% ) beats by $0.03, beats on revs; guides FY24 EPS below consensus, revs in-line

News:

  • FDIC mulling putting pressure on large U.S. banks to fill its $23 bln bank failure hole, according to Investing.com

  • White House expected to ask Fed to strengthen rules for midsized banks, according to the Wall Street Journal

  • Chinese Premier Li Qiang committed to reopening economy, according to Reuters

  • New York City, Chicago, and Los Angeles metro areas all lost residents in 2022. Suburbs showed most growth, but big city exodus slowed. Orlando and Dallas metro areas gained the most population, according to the Wall Street Journal

  • Senate votes 68-23 to end the COVID-19 emergency. President Biden opposes the bill, but he will not veto it, according to CNN

  • White House announces new private and public sector investments for affordable electric vehicles

  • UK will classify nuclear energy as green energy, according to Financial Times

  • UK announces transport decarbonisation package to help boost net zero ambitions

  • EU agrees stronger legislation to accelerate the rollout of renewable energy

  • ADTRAN ( ADTN 0.77% ) CFO retires; appoints Uli Dopfer as new CFO, effective May 1

  • Akero Therapeutics ( AKRO 5.17% ) announces positive end-of-phase 2 meeting with the FDA and SYNCHRONY phase 3 program for Efruxifermin in NASH

  • Anavex ( AVXL 2.88% ) reports preliminary 48-week open-label extension Parkinson's disease dementia ANAVEX2-73-PDD-EP-001 Phase 2 study data which demonstrated longitudinal beneficial effects of ANAVEX2-73 on the prespecified primary and secondary objectives

  • AstraZeneca ( AZN 0.06% ) signs license agreement with KYM Biosciences for CMG901, a Claudin-18.2 antibody drug conjugate

  • Avadel Pharmaceuticals ( AVDL 3.26% ) enters into royalty agreement with RTW Investments and affiliates for up to $75 mln to support potential commercialization of LUMRYZ

  • Avidity Biosciences ( RNA 0.55% ) provides regulatory update on AOC 1001 for myotonic dystrophy type 1 and plans to present top-line data from phase 1/2 MARINA trial at AAN Annual Meeting

  • Braskem SA ( BAK 1.06% ) announced new purchase agreement of wind energy with Casa dos Ventos, which provides Braskem with a supply of up to 22 years

  • Chart Industries ( GTLS 2.72% ) and Nikola Corporation (NKLA) executed a strategic collaboration agreement

  • Disney ( DIS 2.16% ) eliminated 300 jobs in China, according to the Wall Street Journal

  • Electronic Arts ( EA 0.99% ) approves restructuring plan; reduces headcount by approximately 6%

  • Evolent Health ( EVH 1.38% ) announces agreement to expand its partnership for oncology specialty care with Centene Corporation

  • F45 Training Holdings ( FXLV 4.24% ) names Tom Dowd as Chief Executive Officer and Mark Wahlberg as Chief Brand Officer

  • Franklin Covey ( FC 0.39% ) approves $50 mln share repurchase program

  • General Electric ( GE 0.99% ): Two GE-led consortiums in agreement with TenneT for the award of contracts totaling ~ EUR10 bln

  • Granite Constr ( GVA 0.17% ) awarded an approximately $20 million contract by the Alaska Department of Transportation

  • Green Plains ( GPRE 0.93% ) announces planned retirement of Chairman of the Board, Wayne Hoovestol, on May 9, 2023

  • Honda Motor ( HMC 1.04% ) discloses announcement regarding the change in capital structure of Hitachi Astemo including capital participation of JIC Capital

  • JetBlue (JBLU) will lower NYC flights this summer, according to the New York Post

  • LendingTree ( TREE 2.17% ) disclosed last night that it committed to a workforce reduction plan that is intended to reduce operating costs; the reduction plan includes the elimination of approximately 13% of the company's current workforce

  • Merck ( MRK 0.58% ): FDA Converts to Full Approval Indication for KEYTRUDA (pembrolizumab) for Certain Adult and Pediatric Patients With Advanced Microsatellite Instability-High or Mismatch Repair Deficient Solid Tumors

  • Meta ( META 2.33% ) considers ban of political advertising in Europe, according to Financial Times

  • MSG Entertainment ( MSGE 0.74% ) Board approves spin-off of traditional live entertainment business; Expected to be Completed April 20

  • Omega Therapeutics ( OMGA 4.97% ) announced a clinical supply agreement with Roche (RHHBY) to evaluate OTX-2002

  • Peabody Energy ( BTU 1.60% ) confirms that a fire began earlier today at its Shoal Creek Mine; not able to provide any estimates as to impact of fire at this time

  • Piedmont Lithium ( PLL 3.39% ): Sayona Mining and Piedmont Lithium Announce Successful Restart of North American Lithium

  • Raytheon Technologies ( RTX 0.93% ) awarded $619 mln U.S. Navy contract modification

  • Roku ( ROKU 5.46% ) approved a restructuring plan - expected to impact approximately 200 employees, approximately 6% of the Company's workforce

  • Shell plc ( SHEL 1.69% ): Volta Inc. stockholders approve transaction with Shell USA

  • Syneos Health ( SYNH 1.72% ) appointed Stanford (Ben) Rudnick as Interim Chief Financial Officer and principal financial officer of Syneos Health effective on March 31, 2023, while the Company continues its search for a permanent Chief Financial Officer

  • Takeda Pharma ( TAK 0.18% ) confirmed that the New England Journal of Medicine (NEJM) has published positive data from the Phase 4 EARNEST study of vedolizumab for the treatment of chronic pouchitis

  • Tesla ( TSLA 2.48% ) expects reduced tax credits for Model 3, according to Reuters

  • Tesla ( TSLA 2.48% ): Analysis shows that Tesla missed solar roof installation targets, according to Reuters

  • Valero Energy ( VLO 0.68% ): Valero Marketing and Supply awarded $906 mln U.S. Defense Logistics Agency contract

  • Vertical Aerospace Group ( EVTL 19.41% ) announces further progress on its path to certification for the VX4, including securing the first ever Design Organisation Approval issued to an eVTOL manufacturer by the UK Civil Aviation Authority

  • Vigil Neuroscience ( VIGL 0.19% ) announces FDA has lifted the partial clinical hold on VGL101 - remains on track to report interim data from Phase 2 trial in the second half of 2023

  • Warner Music Group ( WMG 0.62% ) to reduce headcount by ~270 people, or a ~4% of the Co's overall headcount

  • Wolverine ( WWW 0.19% ) announces actions to improve operating performance, fuel global growth, and enable future investments into its women's activewear brand Sweaty Betty

  • Yamana Gold ( AUY 0.67% ) reports updated mineral reserves and mineral resources highlighting the sustainability of its production platform

M&A:

  • CNH Industrial ( CNHI 1.48% ) to purchase Hemisphere GNSS (Hemisphere)

  • Concentrix ( CNXC 1.79% ) combining Webhelp in a transaction valued at $4.8 bln, including debt

  • Medical Properties Trust ( MPW 3.78% ) agrees to sell Healthscope portfolio

  • Planet Labs ( PL 3.81% ) signs an agreement to acquire the business of Holding Sinergise d.o.o; financial terms were not disclosed

  • Stratasys ( SSYS 13.82% ) confirms receipt of revised unsolicited acquisition proposal from Nano Dimension (NNDM) for $19.55 per share in cash

  • XOMA ( XOMA 4.76% ) acquires commercial payment and a portion of the milestone rights to IXINITY

Syndicate:

  • Avadel Pharmaceuticals ( AVDL 3.26% ) prices offering of 10,000,001 ADSs at $8.50 per ADS

  • Biomea Fusion ( BMEA 5.34% ) prices offering of 5 mln shares of common stock at $30.00 per share

  • ProQR Therapeutics ( PRQR 29.61% ) files for 13,371,562 share common stock offering by selling shareholders

  • Viking Therapeutics ( VKTX 3.17% ) prices offering of 17.242 mln shares of common stock at $14.50 per share

IPOs:

  • Expected to Price:

    • No IPOs expected.


Gapping Up/Down

  • Gapping up:

    • CXM +14%, STIX +4.8%, SSYS +4%, MPW +3.8%, ATAT +3.4%, GPRE +3.1%, LICY +3%, WW +2.3%, PL +1.7%, WWW +1.5%, PACW +1.4%, TREE +1.1%, WFC +1%, CR +1%, BAC +0.9%, AZN +0.9%, TSLA +0.8%, JPM +0.7%


  • Gapping down:

    • SMTC -13.3%, CNXC -6%, RH -6%, AVDL -4.4%, VKTX -4.3%, BMEA -3.3%, PRQR -3.2%, FC -2.9%, VRNT -2%, BTU -1.7%, ROG -1.6%, EVH -1.3%, FUL -0.6%


Analyst Research (see Upgrades/Downgrades calendar for full list:

  • Upgrades

    • American Tower (AMT) upgraded to Outperform from Market Perform at MoffettNathanson; tgt lowered to $234

    • Crown Castle (CCI) upgraded to Outperform from Market Perform at MoffettNathanson; tgt lowered to $155

    • Equinor (EQNR) upgraded to Buy from Hold at Deutsche Bank

    • Globus Medical (GMED) upgraded to Buy from Hold at Canaccord Genuity; tgt $67

    • Neurocrine Biosciences (NBIX) upgraded to Buy from Hold at Canaccord Genuity; tgt raised to $132


  • Downgrades:

    • Grupo Aeroportuario Del Sureste (ASR) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $595


  • Others:

    • AerCap (AER) resumed with a Buy at Goldman; tgt $74

    • Crinetics Pharmaceuticals (CRNX) initiated with an Outperform at Robert W. Baird; tgt $48

    • Driven Brands (DRVN) initiated with a Buy at Canaccord Genuity; tgt $41

    • Erasca (ERAS) initiated with a Buy at Mizuho; tgt $9

    • Holley Inc. (HLLY) initiated with a Buy at Canaccord Genuity; tgt $5

    • Lifetime Brands (LCUT) initiated with a Buy at Canaccord Genuity; tgt $12


  • Econ Data:

    • 08:30 ET: Initial Claims for Mar 25 (Briefing.com Consensus 196K; Prior 191K)

    • 08:30 ET: Continuing Claims for Mar 18 (Briefing.com Consensus NA; Prior 1694K)

    • 08:30 ET: GDP - Third Estimate for Q4 (Briefing.com Consensus 2.7%; Prior 2.7%)

    • 08:30 ET: GDP Deflator - Third Estimate for Q4 (Briefing.com Consensus 3.9%; Prior 3.9%)

    • 10:30 ET: EIA Natural Gas Inventories for Mar 25 (Briefing.com Consensus NA; Prior -72 bcf)


  • Earnings:

    • Monday (Mar 27)

      • Morning: BNTX CCL

      • Afternoon: PVH


  • Tuesday (Mar 28)

    • Morning: CNM IHS LOVE MKC SNX WBA

    • Afternoon: CALM PLAY JEF LULU MU NCNO PRGS


  • Wednesday (Mar 29)

    • Morning: BLUE CTAS CONN KC PAYX SHCR UNF

    • Afternoon: CNXC FUL RH SMTC CXM VRNT


  • Thursday (Mar 30)

    • Morning: ANGO EVGO NEOG

    • Afternoon: BB BRZE YMAB



Asia & Europe detail:

Asia: Nikkei -0.4%, Hang Seng +0.6%, Shanghai Composite +0.7%

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while India's Sensex was closed for Ram Navami. China's Premier Li Qiang delivered his first major speech, lauding improved economic performance in March relative to the first two months of the year. China and Brazil agreed to trade in their own currencies instead of the U.S. dollar. Thailand's central bank announced a 25-bps rate hike to 1.75%, as expected.

  • In economic data:

    • South Korea's April Manufacturing BSI Index 67 (last 65)

    • New Zealand's February Building Consents -9.0% m/m (last -5.2%). March ANZ Business Confidence -43.4 (expected -40.0; last -43.3)


---Equity Markets---

  • Japan's Nikkei: -0.4%

  • Hong Kong's Hang Seng: +0.6%

  • China's Shanghai Composite: +0.7%

  • India's Sensex: CLOSED

  • South Korea's Kospi: +0.4%

  • Australia's ASX All Ordinaries: +1.1%

---FX---

  • USD/JPY: -0.1% to 132.60

  • USD/CNH: -0.1% to 6.8855

  • USD/INR: -0.1% to 82.08

Europe: DAX +1.3%, FTSE +0.9%, CAC +1.4%

Major European indices trade on a firmly higher note, thanks in part to a cooler than expected March CPI reading from Spain. European Central Bank policymaker Schnabel said that rising unit labor costs suggest the presence of second round inflationary effects, adding that she has not seen a general outflow of deposits from eurozone banks. The latest economic bulletin from the ECB noted that inflation is projected to remain "too high for too long." Bank of England policymker Mann said that the central bank is facing a tough task during the second half of 2023 since core inflation has not slowed as much as headline inflation.

  • In economic data:

    • Eurozone's March Business and Consumer Survey 99.3 (expected 99.8; last 99.6)

    • Italy's February Unemployment Rate 8.0%, as expected (last 8.0%). February PPI -1.0% m/m (last -7.5%); 9.6% yr/yr (last 31.7%)

    • Spain's February Retail Sales 4.0% yr/yr (last 5.5%). March CPI 0.4% m/m (expected 0.7%; last 0.9%); 3.3% yr/yr (expected 3.8%; last 6.0%). March Business Confidence -2.9 (expected -4.5; last -5.8)

    • Swiss March KOF Leading Indicators 98.2 (expected 100.5; last 98.9)


---Equity Markets---

  • STOXX Europe 600: +1.2%

  • Germany's DAX: +1.3%

  • U.K.'s FTSE 100: +0.9%

  • France's CAC 40: +1.4%

  • Italy's FTSE MIB: +1.3%

  • Spain's IBEX 35: +1.6%

---FX---

  • EUR/USD: +0.3% to 1.0876

  • GBP/USD: +0.1% to 1.2330

  • USD/CHF: -0.4% to 0.9154The S&P 500 futures are up 21 point and are trading 0.5% above fair value. The Nasdaq 100 futures are up 64 points and are trading 0.5% above fair value. The Dow Jones Industrial Average futures are up 194 points and are trading 0.6% above fair value.

Yesterday's positive disposition has carried over this morning with the equity futures market showing decent gains. Worries about the banking industry continue to ease, offering support to the broader market, as evidenced by the price action in many bank stocks ahead of the open. Gains in the mega cap space have also been supportive for the broader market so far this morning.

Notably, many overseas indices trade firmly higher again today. This is partially thanks to a cooler than expected March CPI (4.0% yr/yr; expected 5.5% yr/yr) reading from Spain. Spain's pleasing data comes ahead of the latest inflation reading for the U.S. in the form of the PCE Price Index (the Fed's preferred inflation gauge) tomorrow at 8:30 a.m. ET.

Market will receive the following economic data today:

  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 196,000; prior 191,000), Continuing Claims (prior 1.694 mln), Q4 GDP -- third estimate (Briefing.com consensus 2.7%; prior 2.7%), and GDP Deflator -- third estimate (Briefing.com consensus 3.9%; prior 3.9%)

  • 10:30 ET: Weekly natural gas inventories (prior -72 bcf)

In corporate news:

  • Roku (ROKU 66.30, +2.39, +3.7%): approved a restructuring plan - expected to impact approximately 200 employees, approximately 6% of the Company's workforce

  • Charles Schwab (SCHW 54.55, -0.66, -1.2%): downgraded to Equal Weight from Overweight at Morgan Stanley

  • RH 1.83% (RH 230.02, -15.69, -6.4%): misses by $0.48, reports revs in-line; guides Q1 revs below consensus; guides FY24 revs below consensus; expects business conditions to remain challenging for next several quarters and possibly longer

  • Philip Morris International (PM 96.36, +1.64, +1.7%): upgraded to Overweight from Neutral at JPMorgan

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while India's Sensex was closed for Ram Navami. Japan's Nikkei: -0.4%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: +0.7%, India's Sensex: CLOSED, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +1.1%.

    • In economic data:

      • South Korea's April Manufacturing BSI Index 67 (last 65)

      • New Zealand's February Building Consents -9.0% m/m (last -5.2%). March ANZ Business Confidence -43.4 (expected -40.0; last -43.3)


  • In news:

    • China's Premier Li Qiang delivered his first major speech, lauding improved economic performance in March relative to the first two months of the year.

    • China and Brazil agreed to trade in their own currencies instead of the U.S. dollar.

    • Thailand's central bank announced a 25-bps rate hike to 1.75%, as expected.



  • Major European indices trade on a firmly higher note, thanks in part to a cooler than expected March CPI reading from Spain. STOXX Europe 600: +1.2%, Germany's DAX: +1.3%, U.K.'s FTSE 100: +0.9%, France's CAC 40: +1.4%, Italy's FTSE MIB: +1.3%, Spain's IBEX 35: +1.6%.

    • In economic data:

      • Eurozone's March Business and Consumer Survey 99.3 (expected 99.8; last 99.6)

      • Italy's February Unemployment Rate 8.0%, as expected (last 8.0%). February PPI -1.0% m/m (last -7.5%); 9.6% yr/yr (last 31.7%)

      • Spain's February Retail Sales 4.0% yr/yr (last 5.5%). March CPI 0.4% m/m (expected 0.7%; last 0.9%); 3.3% yr/yr (expected 3.8%; last 6.0%). March Business Confidence -2.9 (expected -4.5; last -5.8)

      • Swiss March KOF Leading Indicators 98.2 (expected 100.5; last 98.9)


  • In news:

    • European Central Bank policymaker Schnabel said that rising unit labor costs suggest the presence of second round inflationary effects, adding that she has not seen a general outflow of deposits from eurozone banks.

    • The latest economic bulletin from the ECB noted that inflation is projected to remain "too high for too long."

    • Bank of England policymaker Mann said that the central bank is facing a tough task during the second half of 2023 since core inflation has not slowed as much as headline inflation.



U.S. equity futures:

  • S&P 500 Futures: +22 @ 4,049

  • DJIA Futures: +196 @ 32,913

  • Nasdaq 100 Futures: +64 @ 12,910

Overseas:

  • Europe: DAX +1.3%, FTSE +0.9%, CAC +1.4%

  • Asia: Nikkei -0.4%, Hang Seng +0.6%, Shanghai Composite +0.7%

Commodities:

  • Crude Oil +0.59 @ 73.56

  • Nat Gas -0.020 @ 2.169

  • Gold +2.25 @ 1986.75

  • Silver +0.452 @ 23.918

  • Copper +0.0233 @ 4.1098


Earnings/Guidance:

  • AngioDynamics ( ANGO 0.56% ) misses by $0.02, misses on revs; lowers FY23 guidance

  • Avadel Pharmaceuticals ( AVDL 3.26% ) announces Q4 earnings and other corporate items

  • Concentrix ( CNXC 1.79% ) misses by $0.04, reports revs in-line; guides MayQ revs above two analyst estimate; guides FY23 revs in-line

  • EVgo Inc. ( EVGO 3.23% ) beats by $0.13, beats on revs; guides FY23 revs in-line

  • H.B. Fuller ( FUL 0.86% ) misses by $0.04, misses on revs; guides FY23 EPS in-line

  • Li-Cycle ( LICY 3.97% ) Reports Operational and Financial Results for Two-Month Period Ended December 31, 2022

  • Manchester United ( MANU 0.31% ) reports Q2 (Dec) results, beats on revs

  • Planet Labs ( PL 3.81% ) misses by $0.04, reports revs in-line; guides AprQ revs below consensus; guides FY24 revs in-line

  • RH ( RH 1.83% ) misses by $0.48, reports revs in-line; guides Q1 revs below consensus; guides FY24 revs below consensus; expects business conditions to remain challenging for next several quarters and possibly longer

  • Rogers Corp ( ROG 0.91% ) provides 2025 guidance ahead of investor day (no consensus estimates)

  • Semtech ( SMTC 3.21% ) reports EPS in-line, beats on revs; guides AprQ EPS below consensus, revs above consensus

  • Sprinklr ( CXM 2.26% ) beats by $0.04, beats on revs; guides AprQ EPS below consensus, revs below consensus; guides FY24 EPS above consensus, revs mostly above consensus

  • Toyota Motor ( TM 1.26% ) announces February worldwide sales -10.3% yr/yr to 773,271 units

  • Verint Systems ( VRNT 1.93% ) beats by $0.03, beats on revs; guides FY24 EPS below consensus, revs in-line

News:

  • FDIC mulling putting pressure on large U.S. banks to fill its $23 bln bank failure hole, according to Investing.com

  • White House expected to ask Fed to strengthen rules for midsized banks, according to the Wall Street Journal

  • Chinese Premier Li Qiang committed to reopening economy, according to Reuters

  • New York City, Chicago, and Los Angeles metro areas all lost residents in 2022. Suburbs showed most growth, but big city exodus slowed. Orlando and Dallas metro areas gained the most population, according to the Wall Street Journal

  • Senate votes 68-23 to end the COVID-19 emergency. President Biden opposes the bill, but he will not veto it, according to CNN

  • White House announces new private and public sector investments for affordable electric vehicles

  • UK will classify nuclear energy as green energy, according to Financial Times

  • UK announces transport decarbonisation package to help boost net zero ambitions

  • EU agrees stronger legislation to accelerate the rollout of renewable energy

  • ADTRAN ( ADTN 0.77% ) CFO retires; appoints Uli Dopfer as new CFO, effective May 1

  • Akero Therapeutics ( AKRO 5.17% ) announces positive end-of-phase 2 meeting with the FDA and SYNCHRONY phase 3 program for Efruxifermin in NASH

  • Anavex ( AVXL 2.88% ) reports preliminary 48-week open-label extension Parkinson's disease dementia ANAVEX2-73-PDD-EP-001 Phase 2 study data which demonstrated longitudinal beneficial effects of ANAVEX2-73 on the prespecified primary and secondary objectives

  • AstraZeneca ( AZN 0.06% ) signs license agreement with KYM Biosciences for CMG901, a Claudin-18.2 antibody drug conjugate

  • Avadel Pharmaceuticals ( AVDL 3.26% ) enters into royalty agreement with RTW Investments and affiliates for up to $75 mln to support potential commercialization of LUMRYZ

  • Avidity Biosciences ( RNA 0.55% ) provides regulatory update on AOC 1001 for myotonic dystrophy type 1 and plans to present top-line data from phase 1/2 MARINA trial at AAN Annual Meeting

  • Braskem SA ( BAK 1.06% ) announced new purchase agreement of wind energy with Casa dos Ventos, which provides Braskem with a supply of up to 22 years

  • Chart Industries ( GTLS 2.72% ) and Nikola Corporation (NKLA) executed a strategic collaboration agreement

  • Disney ( DIS 2.16% ) eliminated 300 jobs in China, according to the Wall Street Journal

  • Electronic Arts ( EA 0.99% ) approves restructuring plan; reduces headcount by approximately 6%

  • Evolent Health ( EVH 1.38% ) announces agreement to expand its partnership for oncology specialty care with Centene Corporation

  • F45 Training Holdings ( FXLV 4.24% ) names Tom Dowd as Chief Executive Officer and Mark Wahlberg as Chief Brand Officer

  • Franklin Covey ( FC 0.39% ) approves $50 mln share repurchase program

  • General Electric ( GE 0.99% ): Two GE-led consortiums in agreement with TenneT for the award of contracts totaling ~ EUR10 bln

  • Granite Constr ( GVA 0.17% ) awarded an approximately $20 million contract by the Alaska Department of Transportation

  • Green Plains ( GPRE 0.93% ) announces planned retirement of Chairman of the Board, Wayne Hoovestol, on May 9, 2023

  • Honda Motor ( HMC 1.04% ) discloses announcement regarding the change in capital structure of Hitachi Astemo including capital participation of JIC Capital

  • JetBlue (JBLU) will lower NYC flights this summer, according to the New York Post

  • LendingTree ( TREE 2.17% ) disclosed last night that it committed to a workforce reduction plan that is intended to reduce operating costs; the reduction plan includes the elimination of approximately 13% of the company's current workforce

  • Merck ( MRK 0.58% ): FDA Converts to Full Approval Indication for KEYTRUDA (pembrolizumab) for Certain Adult and Pediatric Patients With Advanced Microsatellite Instability-High or Mismatch Repair Deficient Solid Tumors

  • Meta ( META 2.33% ) considers ban of political advertising in Europe, according to Financial Times

  • MSG Entertainment ( MSGE 0.74% ) Board approves spin-off of traditional live entertainment business; Expected to be Completed April 20

  • Omega Therapeutics ( OMGA 4.97% ) announced a clinical supply agreement with Roche (RHHBY) to evaluate OTX-2002

  • Peabody Energy ( BTU 1.60% ) confirms that a fire began earlier today at its Shoal Creek Mine; not able to provide any estimates as to impact of fire at this time

  • Piedmont Lithium ( PLL 3.39% ): Sayona Mining and Piedmont Lithium Announce Successful Restart of North American Lithium

  • Raytheon Technologies ( RTX 0.93% ) awarded $619 mln U.S. Navy contract modification

  • Roku ( ROKU 5.46% ) approved a restructuring plan - expected to impact approximately 200 employees, approximately 6% of the Company's workforce

  • Shell plc ( SHEL 1.69% ): Volta Inc. stockholders approve transaction with Shell USA

  • Syneos Health ( SYNH 1.72% ) appointed Stanford (Ben) Rudnick as Interim Chief Financial Officer and principal financial officer of Syneos Health effective on March 31, 2023, while the Company continues its search for a permanent Chief Financial Officer

  • Takeda Pharma ( TAK 0.18% ) confirmed that the New England Journal of Medicine (NEJM) has published positive data from the Phase 4 EARNEST study of vedolizumab for the treatment of chronic pouchitis

  • Tesla ( TSLA 2.48% ) expects reduced tax credits for Model 3, according to Reuters

  • Tesla ( TSLA 2.48% ): Analysis shows that Tesla missed solar roof installation targets, according to Reuters

  • Valero Energy ( VLO 0.68% ): Valero Marketing and Supply awarded $906 mln U.S. Defense Logistics Agency contract

  • Vertical Aerospace Group ( EVTL 19.41% ) announces further progress on its path to certification for the VX4, including securing the first ever Design Organisation Approval issued to an eVTOL manufacturer by the UK Civil Aviation Authority

  • Vigil Neuroscience ( VIGL 0.19% ) announces FDA has lifted the partial clinical hold on VGL101 - remains on track to report interim data from Phase 2 trial in the second half of 2023

  • Warner Music Group ( WMG 0.62% ) to reduce headcount by ~270 people, or a ~4% of the Co's overall headcount

  • Wolverine ( WWW 0.19% ) announces actions to improve operating performance, fuel global growth, and enable future investments into its women's activewear brand Sweaty Betty

  • Yamana Gold ( AUY 0.67% ) reports updated mineral reserves and mineral resources highlighting the sustainability of its production platform

M&A:

  • CNH Industrial ( CNHI 1.48% ) to purchase Hemisphere GNSS (Hemisphere)

  • Concentrix ( CNXC 1.79% ) combining Webhelp in a transaction valued at $4.8 bln, including debt

  • Medical Properties Trust ( MPW 3.78% ) agrees to sell Healthscope portfolio

  • Planet Labs ( PL 3.81% ) signs an agreement to acquire the business of Holding Sinergise d.o.o; financial terms were not disclosed

  • Stratasys ( SSYS 13.82% ) confirms receipt of revised unsolicited acquisition proposal from Nano Dimension (NNDM) for $19.55 per share in cash

  • XOMA ( XOMA 4.76% ) acquires commercial payment and a portion of the milestone rights to IXINITY

Syndicate:

  • Avadel Pharmaceuticals ( AVDL 3.26% ) prices offering of 10,000,001 ADSs at $8.50 per ADS

  • Biomea Fusion ( BMEA 5.34% ) prices offering of 5 mln shares of common stock at $30.00 per share

  • ProQR Therapeutics ( PRQR 29.61% ) files for 13,371,562 share common stock offering by selling shareholders

  • Viking Therapeutics ( VKTX 3.17% ) prices offering of 17.242 mln shares of common stock at $14.50 per share

IPOs:

  • Expected to Price:

    • No IPOs expected.


Gapping Up/Down

  • Gapping up:

    • CXM +14%, STIX +4.8%, SSYS +4%, MPW +3.8%, ATAT +3.4%, GPRE +3.1%, LICY +3%, WW +2.3%, PL +1.7%, WWW +1.5%, PACW +1.4%, TREE +1.1%, WFC +1%, CR +1%, BAC +0.9%, AZN +0.9%, TSLA +0.8%, JPM +0.7%


  • Gapping down:

    • SMTC -13.3%, CNXC -6%, RH -6%, AVDL -4.4%, VKTX -4.3%, BMEA -3.3%, PRQR -3.2%, FC -2.9%, VRNT -2%, BTU -1.7%, ROG -1.6%, EVH -1.3%, FUL -0.6%


Analyst Research (see Upgrades/Downgrades calendar for full list:

  • Upgrades

    • American Tower (AMT) upgraded to Outperform from Market Perform at MoffettNathanson; tgt lowered to $234

    • Crown Castle (CCI) upgraded to Outperform from Market Perform at MoffettNathanson; tgt lowered to $155

    • Equinor (EQNR) upgraded to Buy from Hold at Deutsche Bank

    • Globus Medical (GMED) upgraded to Buy from Hold at Canaccord Genuity; tgt $67

    • Neurocrine Biosciences (NBIX) upgraded to Buy from Hold at Canaccord Genuity; tgt raised to $132


  • Downgrades:

    • Grupo Aeroportuario Del Sureste (ASR) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $595


  • Others:

    • AerCap (AER) resumed with a Buy at Goldman; tgt $74

    • Crinetics Pharmaceuticals (CRNX) initiated with an Outperform at Robert W. Baird; tgt $48

    • Driven Brands (DRVN) initiated with a Buy at Canaccord Genuity; tgt $41

    • Erasca (ERAS) initiated with a Buy at Mizuho; tgt $9

    • Holley Inc. (HLLY) initiated with a Buy at Canaccord Genuity; tgt $5

    • Lifetime Brands (LCUT) initiated with a Buy at Canaccord Genuity; tgt $12


  • Econ Data:

    • 08:30 ET: Initial Claims for Mar 25 (Briefing.com Consensus 196K; Prior 191K)

    • 08:30 ET: Continuing Claims for Mar 18 (Briefing.com Consensus NA; Prior 1694K)

    • 08:30 ET: GDP - Third Estimate for Q4 (Briefing.com Consensus 2.7%; Prior 2.7%)

    • 08:30 ET: GDP Deflator - Third Estimate for Q4 (Briefing.com Consensus 3.9%; Prior 3.9%)

    • 10:30 ET: EIA Natural Gas Inventories for Mar 25 (Briefing.com Consensus NA; Prior -72 bcf)


  • Earnings:

    • Monday (Mar 27)

      • Morning: BNTX CCL

      • Afternoon: PVH


  • Tuesday (Mar 28)

    • Morning: CNM IHS LOVE MKC SNX WBA

    • Afternoon: CALM PLAY JEF LULU MU NCNO PRGS


  • Wednesday (Mar 29)

    • Morning: BLUE CTAS CONN KC PAYX SHCR UNF

    • Afternoon: CNXC FUL RH SMTC CXM VRNT


  • Thursday (Mar 30)

    • Morning: ANGO EVGO NEOG

    • Afternoon: BB BRZE YMAB



Asia & Europe detail:

Asia: Nikkei -0.4%, Hang Seng +0.6%, Shanghai Composite +0.7%

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while India's Sensex was closed for Ram Navami. China's Premier Li Qiang delivered his first major speech, lauding improved economic performance in March relative to the first two months of the year. China and Brazil agreed to trade in their own currencies instead of the U.S. dollar. Thailand's central bank announced a 25-bps rate hike to 1.75%, as expected.

  • In economic data:

    • South Korea's April Manufacturing BSI Index 67 (last 65)

    • New Zealand's February Building Consents -9.0% m/m (last -5.2%). March ANZ Business Confidence -43.4 (expected -40.0; last -43.3)


---Equity Markets---

  • Japan's Nikkei: -0.4%

  • Hong Kong's Hang Seng: +0.6%

  • China's Shanghai Composite: +0.7%

  • India's Sensex: CLOSED

  • South Korea's Kospi: +0.4%

  • Australia's ASX All Ordinaries: +1.1%

---FX---

  • USD/JPY: -0.1% to 132.60

  • USD/CNH: -0.1% to 6.8855

  • USD/INR: -0.1% to 82.08

Europe: DAX +1.3%, FTSE +0.9%, CAC +1.4%

Major European indices trade on a firmly higher note, thanks in part to a cooler than expected March CPI reading from Spain. European Central Bank policymaker Schnabel said that rising unit labor costs suggest the presence of second round inflationary effects, adding that she has not seen a general outflow of deposits from eurozone banks. The latest economic bulletin from the ECB noted that inflation is projected to remain "too high for too long." Bank of England policymker Mann said that the central bank is facing a tough task during the second half of 2023 since core inflation has not slowed as much as headline inflation.

  • In economic data:

    • Eurozone's March Business and Consumer Survey 99.3 (expected 99.8; last 99.6)

    • Italy's February Unemployment Rate 8.0%, as expected (last 8.0%). February PPI -1.0% m/m (last -7.5%); 9.6% yr/yr (last 31.7%)

    • Spain's February Retail Sales 4.0% yr/yr (last 5.5%). March CPI 0.4% m/m (expected 0.7%; last 0.9%); 3.3% yr/yr (expected 3.8%; last 6.0%). March Business Confidence -2.9 (expected -4.5; last -5.8)

    • Swiss March KOF Leading Indicators 98.2 (expected 100.5; last 98.9)


---Equity Markets---

  • STOXX Europe 600: +1.2%

  • Germany's DAX: +1.3%

  • U.K.'s FTSE 100: +0.9%

  • France's CAC 40: +1.4%

  • Italy's FTSE MIB: +1.3%

  • Spain's IBEX 35: +1.6%

---FX---

  • EUR/USD: +0.3% to 1.0876

  • GBP/USD: +0.1% to 1.2330

  • USD/CHF: -0.4% to 0.9154


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