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01/03/23 Briefing

Updated: Mar 6, 2023

The S&P 500 futures are up ten points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 43 points and are trading 0.4% above fair value. The Dow Jones Industrial Average futures are up 66 points and are trading 0.2% above fair value. Equity futures indicate a higher open to begin March after a night that saw the release of China's strongest Manufacturing PMI reading since 2012. Other PMI readings were on the soft side, as Japan's reading remained in contraction for the fourth month in a row while eurozone's Manufacturing PMI was also below 50.0, indicating slowing activity. The 2-yr Treasury note yield is up three basis points at 4.83% and the 10-yr note yield is up one basis point at 3.93%. WTI crude oil futures are down 0.7% to $76.48/bbl and natural gas futures are up 0.6% to $2.76/mmbtu. Market participants will receive the following economic data today: 7:00 ET: Weekly MBA Mortgage Index (actual -5.7%; prior -13.3%) 9:45 ET: Final February IHS Markit Manufacturing PMI (prior 47.8) 10:00 ET: January Construction Spending (Briefing.comconsensus 0.3%; prior -0.4%) and February ISM Manufacturing Index (Briefing.comconsensus 47.8%; prior 47.4%) 10:30 ET: Weekly crude oil inventories (prior 7.65 mln)

In corporate news:

  • Kohl's (KSS 26.00, -2.04, -7.3%): misses by $3.46, misses on revs; guides FY24 EPS below consensus, revs below consensus

  • Novavax (NVAX 6.82, -2.44, -26.4%): misses by $1.23, misses on revs; issues going concern statement; files mixed securities shelf offering

  • Tesla (TSLA 206.05, +0.34, +0.2%): Holding and Investor Day today where CEO Elon Musk is expected to announce third master plan

  • General Motors (GM 39.16, +0.42, +1.1%): cutting hundreds of jobs, according to Detroit News

  • Rivian Automotive, Inc. (RIVN 17.57, -1.73, -9.0%): beats by $0.22, misses on revs, produced 10,020 vehicles during Q4; expects to produce 50K vehicles in 2023

  • Lowe's Companies, Inc. (LOW 206.00, +0.25, +0.1%): beats by $0.07, misses on revs, comparable sales decreased 1.5%; guides FY24 EPS in-line, revs below consensus

  • Ross Stores, Inc. (ROST 108.12, -2.42, -2.2%): beats by $0.08, beats on revs; guides Q1 EPS below consensus; guides FY24 EPS below consensus

  • Sarepta Therapeutics, Inc. (SRPT 143.65, +21.52, +17.6%): misses by $0.06, beats on revs; upgraded to Overweight from Equal-Weight at Morgan Stanley

  • Agilent Technologies, Inc. (A 137.51, -4.46, -3.1%): beats by $0.06, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY23 EPS in-line, revs in-line

  • HP Inc. (HPQ 30.39, +0.87, +3.0%): EPS in-line, misses on revs; guides AprQ EPS in-line; reaffirms FY23 EPS guidance

  • AMC Entertainment Holdings, Inc. (AMC 6.55, -0.59, -8.3%): beats by $0.08, misses on revs

  • Reata Pharmaceuticals, Inc. (RETA 86.48, +55.31, +177.4%): Announces FDA Approval of SKYCLARYS (Omavaloxolone), the First and Only Drug Indicated for Patients with Friedreich's Ataxia

  • Pfizer Inc. (PFE 40.88, +0.31, +0.8%): confirms that the U.S. FDA's Vaccines and Related Biological Products Advisory Committee voted that available data is adequate to support the safety and effectiveness of its respiratory syncytial virus bivalent vaccine candidate PF-06928316 or RSVpreF

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a higher note while markets in South Korea were closed for a holiday. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: +4.2%, China's Shanghai Composite: +1.0%, India's Sensex: +0.8%, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: UNCH.

    • In economic data:

      • China's February Manufacturing PMI 52.6 (expected 50.5; last 50.1) and Non-Manufacturing PMI 56.3 (expected 55.0; last 54.4). February Caixin Manufacturing PMI 51.6 (expected 50.2; last 49.2)

      • Japan's February Manufacturing PMI 47.7 (expected 47.4; last 48.9)

      • South Korea's February trade deficit $5.30 bln (expected deficit of $6.06 bln; last deficit of $12.65 bln). February Imports 3.6% yr/yr (expected 4.0%; last -2.8%) and Exports -7.5% yr/yr (expected -8.7%; last -16.6%)

      • India's February Manufacturing PMI 55.3 (expected 54.3; last 55.4)

      • Australia's January AIG Manufacturing Index -6.4 (last -17.1) and February Manufacturing PMI 50.5 (expected 50.1; last 50.0). Q4 GDP 0.5% qtr/qtr (expected 0.8%; last 0.7%); 2.7% yr/yr, as expected (last 5.9%). February CPI 7.4% yr/yr (expected 8.1%; last 8.4%)

    • In news:

      • China's Manufacturing PMI reached its highest level in nearly 11 years in the February reading while Japan's Manufacturing PMI contracted for the fourth month in a row.

      • The U.S. may reportedly revoke all of Huawei's export licenses.

      • Japan's foreign minister will skip this week's meeting of G-20 foreign ministers in India.

  • Major European indices trade in positive territory. STOXX Europe 600: +0.3%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.9%, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.7%, Spain's IBEX 35: +0.3%.

    • In economic data:

      • Eurozone's February Manufacturing PMI 48.5, as expected (last 48.8)

      • Germany's February Manufacturing PMI 46.3 (expected 46.5; last 46.5). February unemployment change 2,000 (expected 9,000; last -15,000) and Unemployment Rate 5.5%, as expected (last 5.5%)

      • U.K.'s February Manufacturing PMI 49.3 (expected 49.2; last 49.2). February Mortgage Approvals 39,640 (expected 38,000; last 40,540). February Nationwide HPI -0.5% m/m (expected -0.4%; last -0.6%); -1.1% yr/yr (expected -0.9%; last 1.1%)

      • France's February Manufacturing PMI 47.4 (expected 47.9; last 47.9)

      • Italy's February Manufacturing PMI 52.0 (expected 51.0; last 50.4)

      • Spain's February Manufacturing PMI 50.7 (expected 49.1; last 48.4)

      • Swiss February procure.chPMI 48.9 (expected 50.4; last 49.3) and January Retail Sales -2.2% yr/yr, as expected (last -3.0%)

    • In news:

      • The European Central Bank is starting to reduce holdings in its Asset Purchase Program portfolio.

      • ECB policymaker Villeroy de Galhau said that it is desirable to reach the terminal rate by the summer and that growth in France is expected to be slightly positive in 2023.

      • Bank of England Governor Bailey said that additional rate hikes may be appropriate, but nothing has been decided yet.

 

U.S. equity futures:

  • S&P 500 Futures: +10 @ 3,980

  • DJIA Futures: +59 @ 32,715

  • Nasdaq 100 Futures: +49 @ 12,092

Overseas:

  • Europe: DAX +0.6%, FTSE +0.9%, CAC +0.7%

  • Asia: Nikkei +0.3%, Hang Seng +4.2%, Shanghai Composite +1.0%

Commodities:

  • Crude Oil -0.57 @ 76.48

  • Nat Gas +0.013 @ 2.76

  • Gold +8.45 @ 1845.15

  • Silver +0.149 @ 21.22

  • Copper +0.0575 @ 4.147

 

Earnings/Guidance:

  • 1stdibs.com(DIBS) beats by $0.04, reports revs in-line; guides Q1 revs below consensus

  • 3D Systems (DDD) beats by $0.02, reports revs in-line; guides FY23 revs in-line

  • Abercrombie & Fitch (ANF) misses by $0.05, beats on revs; guides Q1 revs above consensus; guides FY24 revs above consensus

  • ACI Worldwide (ACIW) misses by $0.06, beats on revs; guides Q1 revs below consensus; guides FY23 revs in-line

  • Acushnet (GOLF) misses by $0.02, beats on revs; guides FY23 revs above consensus; declares dividend

  • Agilent (A) beats by $0.06, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY23 EPS in-line, revs in-line

  • Allogene (ALLO) beats by $0.03, misses on revs

  • Amarin (AMRN) beats by $0.02, slightly beats on revs

  • Ambarella (AMBA) beats by $0.08, reports revs in-line; guides Q1 revs below consensus

  • AMC Entertainment (AMC) beats by $0.08, misses on revs

  • Astec Industries (ASTE) misses by $0.04, beats on revs

  • AvidXchange (AVDX) misses by $0.04, beats on revs; guides FY23 revs below consensus

  • Axon (AXON) beats by $0.19, beats on revs; guides FY23 revs above consensus

  • B&G Foods (BGS) beats by $0.18, beats on revs; guides FY23 EPS in-line, revs in-line

  • Blink Charging (BLNK) beats by $0.05, beats on revs; guides FY23 revs above consensus

  • CarGurus (CARG) beats by $0.11, beats on revs; guides Q1 EPS above consensus, revs below consensus

  • Celldex Therapeutics (CLDX) beats by $0.03

  • Clarivate (CLVT) beats by $0.04, beats on revs; guides FY23 EPS in-line, revs in-line

  • Clean Energy Fuels (CLNE) misses by $0.02, misses on revs

  • Clean Harbors (CLH) beats by $0.09, beats on revs

  • Clear Secure (YOU) beats by $0.09, beats on revs; guides Q1 revs above consensus

  • Compass (COMP) misses by $0.15, misses on revs; guides Q1 revs below consensus

  • Corcept Therapeutics (CORT) misses by $0.13, misses on revs; guides FY23 revs in-line; provides update

  • Coupang (CPNG) beats by $0.01, reports revs in-line

  • Cutera (CUTR) misses by $0.30, misses on revs; guides FY23 revs below consensus

  • Dine Brands (DIN) beats by $0.11, misses on revs

  • Dollar Tree (DLTR) beats by $0.04, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY24 EPS below consensus, revs above consensus

  • Donaldson (DCI) beats by $0.07, misses on revs; guides FY23 EPS in-line, revs in-line

  • Duolingo (DUOL) beats by $0.18, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus

  • Dycom (DY) beats by $0.69, beats on revs

  • Ecopetrol (EC) announces Q4 net income +12.7% yr/yr to COP 6.8 bln; sales +24.9% yr/yr to COP 39.7 bln

  • Endeavor Group (EDR) misses by $0.91, reports revs in-line; guides FY23 revs above consensus

  • Everi (EVRI) beats by $0.04, beats on revs; guides FY23 EPS above consensus

  • Fate Therapeutics (FATE) beats by $0.27, beats on revs

  • FIGS, Inc. (FIGS) beats by $0.04, beats on revs; guides FY23 revs below consensus

  • First Solar (FSLR) beats by $0.08, reports revs in-line; guides FY23 EPS above consensus, revs above consensus

  • FiscalNote Holdings (NOTE) guides FY22 and FY23 revs ahead of consensus; remains on track to achieve positive adjusted EBITDA in 4Q23

  • Flywire (FLYW) beats by $0.01, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus

  • Franchise Group (FRG) beats by $0.26, beats on revs; guides FY23 EPS below consensus, revs above consensus

  • Fulgent Genetics (FLGT) beats by $0.08, beats on revs; guides Q1 revs below consensus; guides FY23 EPS above consensus, revs below consensus

  • GoodRx (GDRX) beats by $0.02, beats on revs; guides Q1 revs in-line; guides FY23 revs above consensus

  • Grocery Outlet (GO) beats by $0.02, beats on revs; guides FY23 EPS below consensus, revs below consensus

  • Health Catalyst (HCAT) beats by $0.06, beats on revs; guides Q1 revs in-line; guides FY23 revs below consensus

  • Horizon Pharma (HZNP) beats by $0.12, beats on revs

  • HP Inc. (HPQ) reports EPS in-line, misses on revs; guides AprQ EPS in-line; reaffirms FY23 EPS guidance

  • Huron Consulting (HURN) beats by $0.13, beats on revs; guides FY23 EPS in-line, revs above consensus

  • ICF International (ICFI) beats by $0.06, reports revs in-line; guides FY23 EPS above consensus, revs in-line

  • ImmunoGen (IMGN) beats by $0.07, beats on revs

  • Inter Parfums (IPAR) beats by $0.18, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Intra-Cellular Therapies (ITCI) reports Q4 (Dec) results, beats on revs; expects FY23 net product sales of $430-455 mln

  • Invitae (NVTA) beats by $0.45, beats on revs; guides FY23 revs

  • IVERIC bio (ISEE) misses by $0.10

  • Jackson Financial (JXN) beats by $0.78, beats on revs

  • Jamf Holding (JAMF) beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus

  • Kohl's (KSS) misses by $3.46, misses on revs; guides FY24 EPS below consensus, revs below consensus

  • Li Auto (LI) reports February deliveries increased 97.5% yr/yr

  • LL Flooring Holdings (LL) misses by $0.37, misses on revs

  • Lowe's (LOW) beats by $0.07, misses on revs, comparable sales decreased 1.5%; guides FY24 EPS in-line, revs below consensus

  • Luxfer (LXFR) reports EPS in-line, beats on revs; guides FY23 EPS below two analyst estimate, revs above two analyst estimate

  • Masimo (MASI) beats by $0.14, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY23 EPS above consensus, revs above consensus

  • Mirati Therapeutics (MRTX) beats by $0.09, misses on revs

  • Monster Beverage (MNST) misses by $0.06, misses on revs; announces 2:1 stock split

  • Montrose Environmental Group (MEG) misses by $0.26, misses on revs; guides FY23 revs in-line

  • Myriad Genetics (MYGN) beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line

  • NanoString Technologies (NSTG) misses by $0.14, beats on revs; guides FY23 revs in-line

  • Natera (NTRA) beats by $0.11, reports revs in-line; guides FY23 revs in-line

  • National Vision (EYE) misses by $0.06, reports revs in-line; guides FY23 EPS below consensus, revs below consensus

  • Nektar Therapeutics (NKTR) beats by $0.11, reports revs in-line

  • Nextdoor (KIND) reports Q4 (Dec) results, beats on revs; guides Q1 revs above consensus

  • NIO (NIO) misses by RMB1.08, misses on revs; guides Q1 revs below consensus

  • Novanta (NOVT) beats by $0.03, beats on revs; guides Q1 EPS below estimate, revs below estimate; guides FY23 EPS below consensus, revs in-line

  • Novavax (NVAX) misses by $1.23, misses on revs; issues going concern statement

  • Oak Street Health (OSH) beats by $0.02, beats on revs

  • ODP Corporation (ODP) beats by $0.06, misses on revs; guides FY23 EPS above estimate, revs in-line

  • Omnicell (OMCL) beats by $0.25, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY23 EPS below consensus, revs in-line; CFO to step dpwn

  • OneSpan (OSPN) beats by $0.10, beats on revs; guides FY23 revs above consensus

  • PAR Technology (PAR) beats by $0.19, beats on revs

  • Payoneer (PAYO) beats by $0.02, beats on revs; guides FY23 revs above consensus; John Caplan to become CEO effective March 1

  • PetIQ (PETQ) misses by $0.06, misses on revs; guides Q1 revs above consensus; guides FY23 revs in-line

  • PubMatic (PUBM) beats by $0.07, misses on revs; guides Q1 revs below consensus

  • Qurate Retail Group (QRTEA) misses by $0.22, reports revs in-line; announces new CFO

  • Revance Therapeutics (RVNC) misses by $0.75, beats on revs

  • Rhythm Pharmaceuticals (RYTM) beats by $0.07, beats on revs; provides FY23 guidance

  • Rivian Automotive (RIVN) beats by $0.22, misses on revs, produced 10,020 vehicles during Q4; expects to produce 50K vehicles in 2023

  • Rocket Companies (RKT) beats by $0.02, misses on revs; guides Q1 revs in-line

  • Rocket Lab USA (RKLB) misses by $0.01, beats on revs; guides Q1 revs below consensus

  • Ross Stores (ROST) beats by $0.08, beats on revs; guides Q1 EPS below consensus; guides FY24 EPS below consensus

  • Royal Bank of Canada (RY) beats by CAD 0.12

  • Ryan Specialty Group (RYAN) beats by $0.01, beats on revs

  • Sarepta Therapeutics (SRPT) misses by $0.06, beats on revs

  • Schrodinger (SDGR) reports Q4 results, beats on revs

  • Shoals Technologies (SHLS) beats by $0.06, beats on revs; guides FY23 revs in-line

  • Silk Road Medical (SILK) beats by $0.05, beats on revs; guides FY23 revs above consensus

  • Supernus Pharma (SUPN) misses by $0.25, misses on revs; guides FY23 revs in-line, provides pipeline update

  • Talos Energy (TALO) misses by $0.33, beats on revs; expects FY23 production of 72-76 MBoe/d

  • Tupperware (TUP) misses by $0.46, beats on revs

  • Urban Outfitters (URBN) misses by $0.04, beats on revs

  • Veradigm (MDRX) trims its FY23 guidance after internal control failures related to revenue recognition resulted in a misstatement to reported revs over the past six quarters

  • Verisk Analytics (VRSK) beats by $0.26, beats on revs

  • Virgin Galactic (SPCE) misses by $0.03, beats on revs

  • VIZIO (VZIO) beats by $0.01, beats on revs

  • Weibo (WB) beats by $0.22, misses on revs

  • Wendy's (WEN) beats by $0.01, reports revs in-line; guides FY23 EPS in-line; Q4 US comps +5.9%

  • Xenia Hotels (XHR) beats by $0.04, beats on revs; guides FY23 FFO in-line

  • Xometry (XMTR) misses by $0.26, misses on revs; guides Q1 revs below consensus; guides FY23 revs below consensus

  • XPeng (XPEV) reports February deliveries increased 15% over January

  • Zentalis Pharma (ZNTL) beats by $0.19

News:

  • House China Committee called for concerted government response to risk China poses to US values, according to the Wall Street Journal

  • Manufacturing data shows that China is emerging from coronavirus pandemic earlier than expected, according to the Wall Street Journal

  • House Committee will vote today on bill to ban TikTok nationwide, but is not likely to pass Senate, according to the Wall Street Journal

  • FBI Director Christopher Wray says he believes the coronavirus pandemic started from a lab leak in China, according to the Wall Street Journal

  • The Biden administration plans to allow sales of higher blend ethanol gasoline later this week, according to Reuters

  • Congress is expected to pass rollback of climate change investments guidelines, but President Biden will veto it, according to Politico

  • Paul Vallas and Brandon Johnson advanced to Chicago mayor run off election on April 4.Incumbent Mayor Lori Lightfoot was eliminated, according to ABC News

  • Commerce Department launches first CHIPS for America funding opportunity

  • Macau Gaming Inspection and Coordination Bureau reported February gross revs +33% yr/yr to HKD 10.3 bln versus +6% in February of 2022

  • Dubai is now the fourth largest luxury real estate market in the world amid high demand, according to Bloomberg

  • 3M (MMM): Department of Defense Data Reveals No Hearing Loss Among Vast Majority of Plaintiffs in Combat Arms Earplug Litigation

  • Amplify Energy (AMPY) has reached a settlement of its claims against the M/V Danit and its affiliated corporate entities; the M/V Beijing and its affiliated corporate entities, as well as the COSCO marine entities and the Marine Exchange

  • Aravive (ARAV) announced that the U.S. FDA has granted Orphan Drug Designation to batiraxcept for the treatment of pancreatic ductal adenocarcinoma cancer

  • ArcBest (ARCB) announces sale of FleetNet America and increased share repurchase program

  • Bandwidth (BAND) announces additional repurchase agreements of 0.250% convertible senior notes due 2026 to repurchase $65 million aggregate principal amount of the notes at ~22% discount to par value

  • Bayer AG (BAYRY) submits aflibercept 8 mg for marketing authorization in Japan

  • Biogen (BIIB): PrBYOOVIZ, first PrLUCENTIS biosimilar, now available in Canada to treat debilitating retinal disorders

  • Bio-Techne (TECH) announces investment in Wilson Wolf

  • Boeing (BA) awarded a not-to-exceed $1.2 bln U.S. Air Force contract

  • Cidara Therapeutics (CDTX) Announces Promising Interim Phase 2a Data Assessing the Safety and Efficacy of a Single Dose of CD388 in an Influenza Challenge Model

  • Clean Harbors (CLH) has appointed Chief Accounting Officer, Eric Dugas, as EVP and Chief Financial Officer, effective March 31, 2023(

  • Comerica (CMA) increases quarterly cash dividend 4% to $0.71/share from $0.68/share

  • Cytokinetics (CYTK): FDA issues Complete Response Letter for NDA for omecamtiv mecarbil; not sufficiently persuasive to establish substantial evidence of effectiveness for reducing the risk of heart failure events

  • Deciphera Pharmaceuticals (DCPH) announces the completion of enrollment in the pivotal Phase 3 MOTION study of vimseltinib in patients with tenosynovial giant cell tumor not amenable to surgery

  • Dow (DOW) and Ares Acquisition Corp. (AAC) merger partner X-energy advance efforts to deploy first advanced small modular nuclear reactor at industrial site under DOE's advanced reactor demonstration program

  • Everi (EVRI) to consolidate and streamline production facilities

  • First Bancshares (FBMS) approves new share repurchase program of up to $50 million of shares of its common stock

  • Ford Motor (F): USPS moves forward with awards to modernize and electrify the nation's largest federal fleet

  • General Motors (GM) cutting hundreds of jobs, according to Detroit News

  • Goldman Sachs (GS) is considering lowering size of consumer business, according to the Wall Street Journal

  • ImmunoGen (IMGN) inks agreement with Vertex Pharma (VRTX) for the use of ImmunoGen's ADC technology in the development of novel targeted conditioning agents

  • Jackson Financial (JXN) increases quarterly cash dividend to $0.62/share from $0.55/share and authorizes an increase of $450 mln to the company's existing share repurchase authorization

  • Merck (MRK) Announces Phase 3 KEYNOTE-671 Trial Met Primary Endpoint of Event-Free Survival (EFS) in Patients With Resectable Stage II, IIIA or IIIB Non-Small Cell Lung Cancer

  • New Found (NFGC) Makes New High-grade, at Surface Discovery Intercepting 72.2 g/t Au Over 9.65m at 'Iceberg' Zone

  • Novocure (NVCR) Announces Last Patient Enrolled in Pivotal METIS Study of Tumor Treating Fields in Brain Metastases from Non-Small Cell Lung Cancer

  • Payoneer (PAYO) appoints John Caplan as CEO, effective March 1

  • Pennant Group (PNTG) announces the appointment of Barry Smith as Chairman of its board of directors and Brent Guerisoli as a member of its board of directors

  • Pfizer (PFE): FDA advisory committee votes 7-4 to support the effectiveness of Pfizer's RSV vaccine candidate for adults 60 and older

  • Qualcomm (QCOM) CEO Cristiano Amon in interview says that he expects Apple (AAPL) to use its own modems for iPhones next year, according to CNBC

  • Quotient (QUOT) appoints Jeff Williams as Chief Retail Officer and Yuneeb Khan as Chief Operating Officer

  • Reata Pharmaceuticals (RETA) Announces FDA Approval of SKYCLARYS (Omavaloxolone), the First and Only Drug Indicated for Patients with Friedreich's Ataxia

  • Regeneron Pharma (REGN) receives FDA approval for Kevzara

  • REGENXBIO (RGNX) beats by $0.05, misses on revs; provides update

  • Rocket Lab USA (RKLB) has secured a multi-launch deal for a rapid succession of four Electron missions for Capella Space

  • Six Flags (SIX) Hurricane Harbor New Jersey Reveals New Kids' Rides and Major Enhancements for Summer 2023

  • TechnipFMC (FTI) has been awarded a substantial contract by Azule Energy to supply flexible pipe for the Agogo Integrated West Hub Development Project, offshore Angola

  • Tesla (TSLA) preparing Model Y production revamp, according to Reuters

M&A:

  • Cenovus Energy (CVE) has closed on the transaction to purchase bp's 50% interest in the bp-Husky Toledo Refinery in Ohio, effective today

  • Evoqua Water (AQUA) has acquired the Texas-based industrial water treatment service business of the former Bob Johnson & Associates from Kemco Systems

  • Goldman Sachs (GS): Considering sale of GreenSky among other strategic alternatives, according toBloomberg

  • Rockwell Automation (ROK) announces that it acquired Knowledge Lens; financial terms were not disclosed

  • Viasat (VSAT): UK CMA issues provisional findings on VSAT acquisition of Inmarsat; says "creation of that situation may not be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom"

  • Westrock Coffee Company (WEST) has acquired Bixby Roasting Co.; financial terms were not disclosed

Syndicate:

  • 2seventy bio (TSVT) prices offering of 10,869,566 shares of its common stock at $11.50 per share

  • Alector (ALEC) files for $400 mln mixed securities shelf offering

  • Altimmune (ALT) files mixed securities shelf offering

  • American Water Works (AWK) prices offering of 11.0 mln shares of common stock at $135.50 per share

  • Arcus Biosciences (RCUS) files mixed securities shelf offering

  • Brandywine Realty (BDN) files mixed securities shelf offering

  • BrightSpire Capital (BRSP) prices secondary offering of 30,358,213 shares of its Class A common stock by a selling stockholder at $6.00 per share

  • EngageSmart (ESMT) prices secondary offering of 8.0 mln shares of common stock at $19.00 per share; files mixed securities shelf offering

  • Enviva (EVA) has entered into definitive agreements with board members and insiders for the issuance and sale of $250 mln of equity securities to be priced using the market close price on March 1, 2023

  • Getty Realty Corp. (GTY) prices offering of 3.0 mln shares of common stock for gross proceeds of ~$100 million

  • Hillman Solutions Corp. (HLMN) announces the commencement of an underwritten public offering of an aggregate of 24,000,000 shares of the Company's common stock by funds affiliated with CCMP Capital Advisors, LP

  • L3Harris (LHX) files mixed securities shelf offering

  • New York Times (NYT) files mixed securities shelf offering

  • Novavax (NVAX) files mixed securities shelf offering

  • NVIDIA (NVDA) files for $10 bln mixed securities shelf offering

  • PowerSchool (PWSC) prices secondary offering of 8.7 mln shares of common stock at $21.00 per share

  • PPG Industries (PPG) files mixed securities shelf offering

  • RE/MAX Holdings (RMAX) files for $350 mln mixed securities shelf offering

  • Travere Therapeutics (TVTX) prices offering of common stock and pre-funded warrants

  • Xencor (XNCR) entered into $200 mln common stock sales agreement

IPOs:

  • Expected to Price:

Gapping Up/Down

  • Gapping up:

    • RETA +164.6%, RNER +20.2%, SRPT +20.1%, BGS+15.9%, PAYO +11.2%, SHLS +11%, SDGR +10.4%, DUOL +10.1%, ARAV +9.9%, GDRX +9.1%, HCAT+7.4%, ISEE +7%, EC +6.4%, FLYW +6.3%, LI +5.9%, FSLR +5.8%, EOSE +5.5%, BLNK +5.1%, HURN +5%, MASI +4.6%, AXON +4.2%, ARCB +4%, MDXG +4%, XPEV +4%, CLDX +3.8%, ECPG +3.4%, CPNG +3.2%, RKLB +2.9%, HPQ +2.9%, MRTX +2.5%, RY +2.5%, FSFG +2%, PNTG +2%, NTRA +2%, KIND +1.9%, URBN +1.7%, OSH +1.6%, DDD +1.3%, ATEC +1.3%, EXPI +1.3%, RKT +1.1%, VRSK +1.1%, NIO +1.1%, DCI +1%, FTI +0.9%, GM +0.9%, F +0.9%

  • Gapping down:

    • NVAX -24.6%, MQ -20.5%, BRSP -15.4%, TSVT-12.6%, FIGS -11%, HLMN -10.6%, CUTR -10.6%, RIVN -8.6%, AMC -8%, IQ -7.8%, PUBM -7.8%, ESMT-6.2%, VZIO -5.4%, NSTG -5%, FLGT -4.9%, NYT-4.6%, CARG -3.8%, CORT -3.5%, MNST -3.3%, NVTA-3.3%, A -3.2%, CYTK -3.1%, JXN -3.1%, FATE -3.1%, EVA -3.1%, PETQ -3%, PWSC -2.9%, TPIC -2.9%, AMBA -2.6%, SPCE -2.4%, ROST -2.2%, QUOT -2.1%, CLNE -1.8%, BDN -1.7%, FRG -1.7%, ALT -1.5%, COMP -1.4%, AWK -1.3%, MDRX -1.3%, MGNI -1.2%, JAMF -1%, LL -1%, IMGN -1%, NVDA -0.9%, WEST-0.9%

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Applied Materials (AMAT) upgraded to Outperform from Neutral at KGI Securities

    • Baytex Energy Trust (BTE) upgraded to Buy from Hold at TD Securities

    • Compania Cervecerias Unidas (CCU) upgraded to Buy from Underperform at BofA Securities

    • Coupang (CPNG) upgraded to Buy from Hold at Deutsche Bank; tgt $20

    • Empire State Realty Trust (ESRT) upgraded to Buy from Neutral at BofA Securities; tgt $9.25

    • Interface (TILE) upgraded to Buy from Neutral at Longbow; tgt $18

    • Kinder Morgan (KMI) upgraded to Outperform from Mkt Perform at Bernstein; tgt raised to $22

    • Kontoor Brands (KTB) upgraded to Buy from Hold at Stifel; tgt raised to $63

    • Lam Research (LRCX) upgraded to Outperform from Neutral at KGI Securities; tgt $600

    • MKS Instruments (MKSI) upgraded to Buy from Hold at The Benchmark Company; tgt $125

    • NetEase (NTES) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $100

    • Ormat Tech (ORA) upgraded to Buy from Neutral at UBS; tgt raised to $105

    • Permian Resources (PR) upgraded to Outperform from Market Perform at Cowen; tgt $15

    • Philip Morris International (PM) upgraded to Buy from Neutral at UBS; tgt raised to $116

    • Red Robin Gourmet (RRGB) upgraded to Buy from Hold at The Benchmark Company; tgt $14

    • Sarepta Therapeutics (SRPT) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $187

    • TransUnion (TRU) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $80

    • Vertex Energy (VTNR) upgraded to Outperform from Perform at Oppenheimer; tgt $14

  • Downgrades:

    • Ambarella (AMBA) downgraded to Neutral from Buy at ROTH MKM; tgt $95

    • Bank of Nova Scotia (BNS) downgraded to Hold from Buy at Canaccord Genuity

    • BrightSpire Capital (BRSP) downgraded to Hold from Buy at Jones Trading

    • Builders FirstSource (BLDR) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt raised to $92

    • Eni S.p.A. (E) downgraded to Neutral from Outperform at Exane BNP Paribas

    • First Advantage Corp. (FA) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $15

    • Grocery Outlet (GO) downgraded to Hold from Buy at Craig Hallum

    • iHeartMedia (IHRT) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $5

    • Marqeta (MQ) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $6

    • New York Mortgage Trust (NYMT) downgraded to Hold from Buy at Jones Trading

    • Novavax (NVAX) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $10

    • Olaplex (OLPX) downgraded to Neutral from Buy at Goldman; tgt $6

    • Silvergate Capital (SI) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $16

    • SM Energy (SM) downgraded to Market Perform from Outperform at Cowen; tgt $35

    • Spirit Aerosystems (SPR) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $38

    • Warby Parker (WRBY) downgraded to Neutral from Buy at Citigroup; tgt lowered to $13

  • Others:

    • AbbVie (ABBV) initiated with a Buy at Guggenheim; tgt $172

    • Aerovate Therapeutics (AVTE) initiated with a Buy at Guggenheim; tgt $36

    • ANI Pharma (ANIP) initiated with a Buy at Guggenheim; tgt $55

    • Calliditas Therapeutics AB (CALT) initiated with a Neutral at Guggenheim; tgt $18

    • Chinook Therapeutics (KDNY) initiated with a Buy at Guggenheim; tgt $43

    • Columbia Banking (COLB) initiated with an Overweight at Wells Fargo; tgt $37

    • DICE Therapeutics (DICE) initiated with an Outperform at Cowen

    • Eve Holding (EVEX) initiated with an Overweight at JP Morgan; tgt $8

    • Gossamer Bio (GOSS) initiated with a Neutral at Guggenheim

    • Johnson & Johnson (JNJ) initiated with a Neutral at Guggenheim; tgt $161

    • Travere Therapeutics (TVTX) initiated with a Buy at Guggenheim; tgt $37

    • Vaalco Energy (EGY) initiated with a Buy at Stifel

Upcoming Events:

  • Econ Data:

    • 07:00 ET: MBA Mortgage Applications Index for Feb 25 (Briefing.comConsensus NA; Prior -13.3%)

    • 09:45 ET: IHS Markit Manufacturing PMI - Final for Feb (Briefing.comConsensus NA; Prior 47.8)

    • 10:00 ET: ISM Manufacturing Index for Feb (Briefing.comConsensus 47.8%; Prior 47.4%)

    • 10:00 ET: Construction Spending for Jan (Briefing.comConsensus 0.3%; Prior -0.4%)

    • 10:30 ET: EIA Crude Oil Inventories for Feb 25 (Briefing.comConsensus NA; Prior 7.65M)

  • Earnings:

    • Monday (Feb 27)

      • Morning:  AES BGNE WTRG FSR FRPT FUBO HSC ITRI KOP TREE LI NE PNW TGNA VTRS

      • Afternoon: AAON ACHC ACAD ADUS AMRC BMRN CDNA DAR DRQ EBS FGEN FSK HEI HLIO HIMS ICUI NARI NGVT IIPR JRVR MKSI NSA OXY OKE PRAA PRIM PRA PGNY RRC RLJ ROVR TASK TREX TTEC UHS VRAY VMEO WDAY ZM

    • Tuesday (Feb 28)

      • Morning: AHCO ADT AAP AMWD APG AZO BMO BNS BSY BKI BLDR CBRL CRON DK XRAY DORM DEA ECVT EHTH EXPI FA FRO GOGO HAYW HSKA TILE IGT SJM JLL KTB NFE NXST NCLH OLPX OMI PCRX PRFT PRGO PLTK RDNT SEAS SRE FOUR SHC SRC TGT SKIN TWKS WRBY

      • Afternoon:  DDD A ALLO AMBA AMC AXON BGS BLNK CARG CLNE COMP CPNG CUTR DUOL EDR FATE FIGS FSLR FLYW FRG FLGT GDRX GO HCAT HPQ HURN ICFI IPAR NVTA IOVA JXN JAMF LXFR MQ MASI MRTX MNST MYGN NSTG NTRA KIND NVAX OMCL OSPN PAYO PETQ PUBM RGNX RIVN RKT ROST RYAN SRPT SDGR SHLS SILK SUPN TALO URBN VRSK SPCE VZIO

Asia & Europe detail:

Asia: Nikkei +0.3%, Hang Seng +4.2%, Shanghai Composite +1.0%

Equity indices in the Asia-Pacific region ended the midweek session on a higher note while markets in South Korea were closed for a holiday. China's Manufacturing PMI reached its highest level in nearly 11 years in the February reading while Japan's Manufacturing PMI contracted for the fourth month in a row. The U.S. may reportedly revoke all of Huawei's export licenses. Japan's foreign minister will skip this week's meeting of G-20 foreign ministers in India.

  • In economic data:

    • China's February Manufacturing PMI 52.6 (expected 50.5; last 50.1) and Non-Manufacturing PMI 56.3 (expected 55.0; last 54.4). February Caixin Manufacturing PMI 51.6 (expected 50.2; last 49.2)

    • Japan's February Manufacturing PMI 47.7 (expected 47.4; last 48.9)

    • South Korea's February trade deficit $5.30 bln (expected deficit of $6.06 bln; last deficit of $12.65 bln). February Imports 3.6% yr/yr (expected 4.0%; last -2.8%) and Exports -7.5% yr/yr (expected -8.7%; last -16.6%)

    • India's February Manufacturing PMI 55.3 (expected 54.3; last 55.4)

    • Australia's January AIG Manufacturing Index -6.4 (last -17.1) and February Manufacturing PMI 50.5 (expected 50.1; last 50.0). Q4 GDP 0.5% qtr/qtr (expected 0.8%; last 0.7%); 2.7% yr/yr, as expected (last 5.9%). February CPI 7.4% yr/yr (expected 8.1%; last 8.4%)

---Equity Markets---

  • Japan's Nikkei: +0.3%

  • Hong Kong's Hang Seng: +4.2%

  • China's Shanghai Composite: +1.0%

  • India's Sensex: +0.8%

  • South Korea's Kospi: CLOSED

  • Australia's ASX All Ordinaries: UNCH

---FX---

  • USD/JPY: -0.6% to 135.40

  • USD/CNH: -1.3% to 6.8652

  • USD/INR: -0.2% to 82.44

 

Europe: DAX +0.6%, FTSE +0.9%, CAC +0.7%

Major European indices trade in positive territory. The European Central Bank is starting to reduce holdings in its Asset Purchase Program portfolio. ECB policymaker Villeroy de Galhau said that it is desirable to reach the terminal rate by the summer and that growth in France is expected to be slightly positive in 2023. Bank of England Governor Bailey said that additional rate hikes may be appropriate, but nothing has been decided yet.

  • In economic data:

    • Eurozone's February Manufacturing PMI 48.5, as expected (last 48.8)

    • Germany's February Manufacturing PMI 46.3 (expected 46.5; last 46.5). February unemployment change 2,000 (expected 9,000; last -15,000) and Unemployment Rate 5.5%, as expected (last 5.5%)

    • U.K.'s February Manufacturing PMI 49.3 (expected 49.2; last 49.2). February Mortgage Approvals 39,640 (expected 38,000; last 40,540). February Nationwide HPI -0.5% m/m (expected -0.4%; last -0.6%); -1.1% yr/yr (expected -0.9%; last 1.1%)

    • France's February Manufacturing PMI 47.4 (expected 47.9; last 47.9)

    • Italy's February Manufacturing PMI 52.0 (expected 51.0; last 50.4)

    • Spain's February Manufacturing PMI 50.7 (expected 49.1; last 48.4)

    • Swiss February procure.chPMI 48.9 (expected 50.4; last 49.3) and January Retail Sales -2.2% yr/yr, as expected (last -3.0%)

---Equity Markets---

  • STOXX Europe 600: +0.3%

  • Germany's DAX: +0.6%

  • U.K.'s FTSE 100: +0.9%

  • France's CAC 40: +0.7%

  • Italy's FTSE MIB: +0.7%

  • Spain's IBEX 35: +0.3%

---FX---

  • EUR/USD: +0.9% to 1.0667

  • GBP/USD: +0.3% to 1.2053

  • USD/CHF: -0.6% to 0.9362


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