The S&P 500 futures trade 31 points, or 0.7%, above fair value heading into the release of the March Employment Situation report at 8:30 a.m. ET.
The Briefing.comconsensus is projecting 474,000 additions to nonfarm payrolls, a 3.7% unemployment rate (versus 3.8% in the prior month), and a 0.4% increase to average hourly earnings -- essentially a tight labor market that will factor into the Fed's decision making.
Investors will also receive the ISM Manufacturing Index for March (Briefing.comconsensus 58.3%) and Construction Spending for February (Briefing.comconsensus 1.0%) at 10:00 a.m. ET.
Some measures of support ahead of the employment report include first-of-the-month inflows as investors put new money to work after a two-day decline, and news that virtual peace talks between Russia and Ukraine are continuing today.
In the Treasury market, the 2s10s spread went negative again last night but as yields pushed higher not lower. Presently, the 2-yr yield is up 11 basis points to 2.39%, and the 10-yr yield is up eight basis points to 2.41%. The U.S. Dollar Index is up 0.2% to 98.49. WTI crude futures are down 1.0% to $99.25/bbl.
Separately, shares of GameStop (GME 192.16, +35.58, +15.4%) have risen 15% in pre-market action after the company announced plans to seek approval for a 3.33-for-1 stock split for its Class A shares.
In U.S. Corporate news:
GameStop (GME 192.16, +35.58): +15.4% after announcing plans to seek approval for a 3.33-for-1 stock split for Class A shares.
PNC (PNC 185.71, +1.26): +0.7% despite issuing downside Q1 revenue guidance. PNC shares fell 8.0% in the first quarter, so the guidance may have been priced in already.
BlackBerry (BB 7.13, -0.33): -4.4% despite beating EPS estimates.
Duck Creek Technologies (DCT 19.40, -2.72): -12.3% after guiding fiscal Q3 revenue below consensus, overshadowing its better than expected fiscal Q2 results.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: -0.6% (-1.7% for the week) Hong Kong's Hang Seng: +0.2% (+3.0% for the week) China's Shanghai Composite: +0.9% (+2.2% for the week) India's Sensex: +1.2% (+3.3% for the week) South Korea's Kospi: -0.7% (+0.4% for the week) Australia's ASX All Ordinaries: -0.1% (+1.3% for the week).
In economic data:
China's March Caixin Manufacturing PMI 48.1 (expected 50.0; last 50.4)
Japan's Q1 Tankan Large Manufacturers Index 14 (expected 12; last 17) and Large Non-Manufacturers Index 9 (expected 5; last 10). Q1 Tankan All Big Industry Capex 2.2% (expected 4.0%; last 9.3%). March Manufacturing PMI 54.1 (expected 53.2; last 52.7)
South Korea's March trade deficit $140 mln (last surplus of $830 mln). March Imports 27.9% yr/yr (expected 27.8%; last 25.2%) and Exports 18.2% yr/yr (expected 17.5%; last 20.6%). March Nikkei Manufacturing PMI 51.2 (last 53.8)
Australia's March Manufacturing PMI 57.7 (expected 57.3; last 57.0) and AIG Manufacturing Index 55.7 (last 53.2). February Home Loans -4.7% m/m (last 1.0%). March Commodity Prices 40.9% yr/yr (last 16.7%)
Singapore's Q4 URA Property Index 0.4% qtr/qtr (last 1.1%)
In news:
Japan's Manufacturing PMI remained in expansionary territory for the 14th consecutive month while South Korea's Manufacturing PMI indicated expansion for the 18th month in a row.
China's Caixin Manufacturing PMI fell into contraction for the first time since January.
A former Japanese currency official warned that the recent rapid depreciation in the yen is a negative since it reflects waning competitiveness.
Major European indices are tracking a higher finish to the week. STOXX Europe 600: +0.6% (+1.2% week-to-date) Germany's DAX: +0.4% (+1.2% week-to-date) U.K.'s FTSE 100: +0.2% (+0.7% week-to-date) France's CAC 40: +0.6% (+2.2% week-to-date) Italy's FTSE MIB: +0.9% (+2.8% week-to-date) Spain's IBEX 35: +0.9% (+2.3% week-to-date).
In economic data:
Eurozone's flash March CPI 2.5% m/m (last 0.9%); 7.5% yr/yr (expected 6.6%; last 5.9%). March Core CPI 2.5% m/m (last 0.9%); 3.0% yr/yr (expected 3.1%; last 2.7%). March Manufacturing PMI 56.5 (expected 57.0; last 58.2)
Germany's March Manufacturing PMI 56.9 (expected 57.6; last 57.6)
France's March Manufacturing PMI 54.7 (expected 54.8; last 54.8). February budget deficit EUR37.60 bln (last deficit of EUR15.90 bln)
Italy's March Manufacturing PMI 55.8 (expected 57.0; last 58.3)
Spain's March Manufacturing PMI 54.2 (expected 55.5; last 56.9)
Swiss March CPI 0.6% m/m (expected 0.5%; last 0.7%); 2.4% yr/yr, as expected (last 2.2%). March procure.chPMI 64.0 (expected 60.5; last 62.6)
In news:
Eurozone's yr/yr CPI rate accelerated to a fresh record of 7.5% in the flash reading for March.
BASF CEO warned that putting an immediate halt to imports of natural gas from Russia would cause many small and medium-sized companies to go bankrupt.
Gas continued flowing to Europe today despite the passing of a deadline that requires buyers to pay in rubles.
U.S. equity futures:
S&P 500 Futures: +26 @ 4,556
DJIA Futures: +197 @ 34,875
Nasdaq 100 Futures: +103 @ 14,942
Overseas:
Europe: DAX +0.4%, FTSE +0.2%, CAC +0.6%
Asia: Nikkei -0.6%; Hang Seng +0.2%, Shanghai Composite +0.9%
Commodities:
Crude Oil -1.66 @ 98.62
Nat Gas -0.021 @ 5.621
Gold -23.50 @ 1925.70
Silver -0.323 @ 24.810
Copper -0.0520 @ 4.6960
U.S. Summary:
Earnings/Guidance (Full Earnings Calendar):
Banco Santander (SAN) confirms its financial targets for 2022
BGC Partners (BGCP) reaffirms Q1 revenue guidance
BlackBerry (BB) beats by $0.04, reports revs in-line
Blend Labs (BLND) misses by $0.13, reports revs in-line; guides Q1 revs below consensus; guides FY22 revs below consensus, cites inflation and higher rates decreasing mortgage demand
BTRS Holdings (BTRS) sees FY22 revs above consensus in slide presentation
Duck Creek Technologies (DCT) beats by $0.03, beats on revs; guides MayQ revs below consensus; guides FY22 revs in-line
Hycroft Mining (HYMC): FY21 sales were 56,045 ounces of gold at an averaged realized price of $1,794 per ounce and 397,546 ounces of silver at an average realized price of $25.66 per ounce; will cease mining activities due to losses from operations
indie Semiconductor (INDI) guides Q1 revs to high end of prior guidance; requests extension to file 10-K
Li Auto (LI) reports March deliveries increased 125.2% yr/yr
MAG Silver (MAG) reports Q4 operation results
nCino (NCNO) reports EPS in-line, beats on revs; guides AprQ revs above consensus; guides FY23 revs above consensus
NIO (NIO) provides march and first quarter 2022 delivery update; NIO delivered 9,985 vehicles in March 2022, representing an increase of 37.6% yr/yr
Planet Labs (PL) reports Q4 (Jan) earnings, beats on revs; guides AprQ revs in-line; guides FY23 revs in-line
PNC (PNC) sees Q1 revs below consensus; FY22 revs in-line
Volta (VLTA) provides Q4, Q1 and FY22 guidance updates; sees FY22 revs below consensus
Wejo (WEJO) reports Q4 (Dec) earnings, beats on revs (two estimates); expects a base of net revenue of $10 mln in FY22
XPeng (XPEV) announces vehicle delivery results for march and first quarter 2022; 34,561 vehicles delivered in Q1 2022, a 159% increase yr/yr
General News:
Russia holds its ground near Kyiv despite pledge to withdraw troops in that area. Ukraine gains back control of Chernobyl nuclear plant. Virtual peace talks resume today, according to the New York Times
Russia claims Ukraine's helicopters attacked oil tanks in Belgorod, Russia, according to Bloomberg
2/10Treasury spread went negative, which could be indication of upcoming recession, CNBC
President Biden's advisors acknowledge that his climate agenda is unlikely to become law amid political headwinds. Also, EPA authority could soon be blocked by the US Supreme Court, according to the New York Times
NYC residents plan to reduce office time by 50% as only 36% of office space in NYC & San Francisco is occupied, according to Bloomberg
China will give regulators access to auditing reports for US listed companies, according to Bloomberg
Macau Gaming Inspection and Coordination Bureau earlier reported March 2022 gross revs -55.8% yr/yr to HKD 3.672 bln versus +6.1% in February of 2022
House passes bill to limit price of insulin, but chances of Senate passage are not clear, according to the New York Times
Amazon (AMZN): Union vote fails in Alabama, according to CNBC
Amazon (AMZN) union is leading in NYC vote, according to Reuters
Bayer AG (BAYRY) set to drive breakthrough innovations in the Life Sciences
Bitfarms (BITF) provides march 2022 production and mining operations update
CarLotz (LOTZ) appoints Ozan Kaya as President, effective April 25
Celanese (CE) completes restructuring of joint venture; expects run-rate adjusted EPS accretion of $0.15-0.20 over next three years
Clene (CLNN) along with its subsidiaries 'Clene' and its wholly owned subsidiary Clene Nanomedicine announce new data from the open-label extension of RESCUE-ALS
Fisker (FSR) passes 40,000 initial reservations for Fisker Ocean SUV
Ford Motor (F) and General Motors (GM) suspend production next week at two plants in Michigan amid supply shortages, according to Reuters
G1 Therapeutics (GTHX) reports results of real0world study of trilaciclib
GameStop (GME) to seek approval for 3.33-for-1 stock split for Class A shares
Grindrod Shipping (GRIN) announces retirement of CEO Martyn Wade, effective April 30
Helix Energy (HLX) enters into a new multi-year contract with Shell Offshore to provide well intervention services in the US Gulf of Mexico
Ichor (ICHR) appoints Paul Chhabra as COO, effective April 11
Lilly (LLY) Presents Updated Data on Retevmo (selpercatinib) in Advanced RET Fusion-Positive Non-Small-Cell Lung Cancer (NSCLC) at the 2022 European Lung Cancer Congress
Lion Electric (LEV) receives purchase order for 30 school buses from undisclosed customer
Lockheed Martin (LMT) awarded $3.2 bln Army contract and $1.3 bln Missile Defense Agency contract modification
Mayville Engineering Company (MEC) announces retirement of CEO Robert D. Kamphuis, effective September 30
Merck (MRK) and Ridgeback to present data demonstrating that treatment with lagevrio was associated with more rapid elimination of infectious SARS-CoV-2 than placebo; Among Patients with infectious virus at baseline, no patients who received lagevrio had infectious virus at days 3, 5 or 10
Merck (MRK) provides update on FDA review of supplemental biologics license application for VAXNEUVANCE (Pneumococcal 15-valent conjugate vaccine) for use in infants and children
Mondelez (MDLZ) plant in Ukraine suffered damage, according to Reuters
nCino (NCNO): Wells Fargo (WFC) will expand use of the nCino Bank OS to accelerate its digital transformation within its Consumer and Small Business Banking division
NGM Biopharmaceuticals (NGM) announces initiation of Phase 1/1b trial of NGM831
Novo Nordisk A/S (NVO) expands product offerings in Canada for the treatment of Hemophilia A in both children and adults, with availability of ESPEROCT and ZONOVATE
Palantir Technologies (PLTR) and Carahsoft Technology announced a partnership
Pharmanetics (PHAR) announces positive data from Phase II/III leniolisib trial presented
Porch Group (PRCH) mutually agreed with CFO Martin Heimbigner to begin a search for Mr. Heimbigner's successor
Raytheon Technologies (RTX) awarded $650 mln Navy contract
Raytheon Technologies (RTX) awarded $651 million to produce SPY-6 radars for next-gen US Navy ships
Reata Pharmaceuticals (RETA) completes rolling submission of NDA for omaveloxolone as treatment for patients with Friedreich's ataxia
Robinhood Markets (HOOD) reportedly nearing launch of retirement account support on its platform, according to Bloomberg
Sage Therapeutics (SAGE) announces presentation of promising results from the Phase 2 LUMINARY Study of SAGE-718 in patients with mild cognitive impairment and mild dementia due to Alzheimer's Disease
Sanofi (SNY) reports French Autorit des marchs financiers has approved the listing prospectus prepared by EUROAPI in connection with the intended listing of its shares on the regulated market of Euronext Paris
SELLAS Life Sciences (SLS) signs license agreement with GenFleet Therapeutics for GFH009
Spero Therapeutics (SPRO): FDA identifies deficiencies in Spero's NDA for tebipenem
Stem (STEM) COO Mark Triplett will step down effective April 15for personal reasons
Thor Industries (THO) signs letter of intent to sell a majority interest in its digital application business, TH2 Connect, LLC
Uber (UBER): Washington Governor Jay Inslee signs bill that will set minimum pay for Uber and Lyft (LYFT), according to Reuters
Valmont SM (VMI) enters into a $209 mln multi-year supply agreement with Siemens Gamesa Renewable Energy (SGRE) to provide components for rotor houses for the offshore wind market
M&A:
10X Capital Venture Acquisition Corp. II (VCXA): Prime Blockchain Inc. and VCXA announce merger agreement; company to be listed on NASDAQ
Core & Main (CNM) signs agreement to acquire Lock City Supply; terms not disclosed
High Tide (HITI) acquires Boreal Cannabis Company for CAD2.2 mln
Natl Instruments (NATI) agrees to purchase test systems business of Kratzer Automation AG
Penske Auto (PAG) has acquired three BMW MINI dealerships and a collision center in the U.K.; adds $250 million in annualized revenues
Sonoco Products (SON) acquires remaining interest in Brazil flexible packaging joint venture
Syndicate:
Allete (ALE) prices offering of 3.2 mln shares of common stock at $63.00 per share
Atlas Technical Consultants (ATCX) files for 2,078,300 share common stock offering by selling shareholders
Innovative Industrial Properties (IIPR) commences public offering of 1.0 mln common shares
Ranger Energy Services (RNGR) files for 18,809,999 share common stock offering by selling shareholders
Revlon (REV) files for $75 mln mixed securities shelf offering
SELLAS Life Sciences (SLS) prices offering of 4,629,630 shares of its common stock and accompanying warrants to purchase up to 4,629,630 shares of common stock at a combined public offering price of $5.40 per share and accompanying warrant
XpresSpa Group (XSPA) files for 4,696,134 share common stock offering by selling shareholders
IPOs:
Expected to Price:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
GME +14.6%, XSPA +7.1%, LI +5.6%, KOS +5.6%, BZUN +4.9%, HITI +4.6%, HYMC +3.9%, INDI +3.7%, NCNO +3.7%, FSR +3.6%, LEV +3.1%, PL +3.1%, OLN+3%, MAG +2.8%, HOOD +2.7%, GRIN +2.3%, RETA+2.1%, GTHX +1.8%, PPGH +1.7%, RTX +1.6%, HLX+1.5%, VMI +1%, VLTA +1%, AMZN +0.9%
Gapping down:
BLND -24.9%, SPRO -24.1%, SLS -24%, RDW-23.5%, DCT -12.3%, WEJO -7.9%, ALE -5.9%, RNGR-3.5%, ASTS -3%, BB -2.7%, IIPR -2.1%, ATCX -2.1%, CE -0.5%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Banco Santander (SAN) upgraded to Outperform from Neutral at Credit Suisse
Caixabank (CAIXY) upgraded to Outperform from Neutral at Credit Suisse
Tellurian (TELL) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $8
Downgrades:
Amylyx Pharmaceuticals (AMLX) downgraded to Neutral from Buy at Goldman; tgt lowered to $10
Commscope (COMM) downgraded to Neutral from Buy at Goldman; tgt lowered to $9
Dell (DELL) downgraded to Neutral from Conviction Buy at Goldman; tgt lowered to $61
First American Financial (FAF) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $74
NextDecade (NEXT) downgraded to Neutral from Outperform at Credit Suisse; tgt raised to $7.50
Silverback Therapeutics (SBTX) downgraded to Hold from Buy at Stifel; tgt lowered to $6
Silverback Therapeutics (SBTX) downgraded to Neutral from Buy at H.C. Wainwright
Walgreens Boots Alliance (WBA) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $51
Wayfair (W) downgraded to Underweight from Equal Weight at Barclays; tgt $103
Zimmer Biomet (ZBH) downgraded to Neutral from Buy at Citigroup; tgt raised to $135
Others:
1Life Healthcare (ONEM) assumed with an Outperform at Credit Suisse; tgt $15
Accolade (ACCD) assumed with an Outperform at Credit Suisse; tgt $33
AmerisourceBergen (ABC) assumed with an Outperform at Credit Suisse; tgt $180
Amwell (AMWL) assumed with a Neutral at Credit Suisse; tgt $5
Cano Health (CANO) assumed with an Outperform at Credit Suisse; tgt $13
Cardinal Health (CAH) assumed with a Neutral at Credit Suisse; tgt $58
Change Healthcare (CHNG) assumed with a Neutral at Credit Suisse; tgt $25.75
Check Point Software (CHKP) initiated with a Buy at Summit Insights; tgt $160
Definitive Healthcare (DH) assumed with a Neutral at Credit Suisse; tgt $24
eHealth (EHTH) assumed with a Neutral at Credit Suisse; tgt $16
GoHealth (GOCO) assumed with an Underperform at Credit Suisse; tgt $1.50
GoodRx (GDRX) assumed with a Neutral at Credit Suisse; tgt $22
Hims & Hers Health (HIMS) assumed with an Outperform at Credit Suisse; tgt $8
McKesson (MCK) assumed with an Outperform at Credit Suisse; tgt $333
Owens & Minor (OMI) assumed with a Neutral at Credit Suisse; tgt $43
Premier (PINC) assumed with an Underperform at Credit Suisse; tgt $35
Privia Health (PRVA) assumed with an Outperform at Credit Suisse; tgt $43
SelectQuote (SLQT) assumed with a Neutral at Credit Suisse; tgt $4
Snowflake (SNOW) initiated with a Neutral at SMBC Nikko; tgt $253
SOC Telemed (TLMD) assumed with a Neutral at Credit Suisse; tgt $3
Teladoc (TDOC) assumed with an Outperform at Credit Suisse; tgt $114
Tivity Health (TVTY) assumed with a Neutral at Credit Suisse; tgt $31
Upcoming Events:
Econ Data:
08:30 ET: Nonfarm Payrolls for Mar (Briefing.comConsensus 475K; Prior 678K)
08:30 ET: Nonfarm Private Payrolls for Mar (Briefing.comConsensus 450K; Prior 654K)
08:30 ET: Unemployment Rate for Mar (Briefing.comConsensus 3.7%; Prior 3.8%)
08:30 ET: Avg. Hourly Earnings for Mar (Briefing.comConsensus 0.4%; Prior 0.0%)
08:30 ET: Average Workweek for Mar (Briefing.comConsensus 34.7; Prior 34.7)
09:45 ET: IHS Markit Manufacturing PMI - Final for Mar (Briefing.comConsensus NA; Prior 58.5)
10:00 ET: ISM Manufacturing Index for Mar (Briefing.comConsensus 58.3%; Prior 58.6%)
10:00 ET: Construction Spending for Feb (Briefing.comConsensus 1.0%; Prior 1.3%)
Earnings:
Monday (Mar 28)
Morning: SAIC
Afternoon: PLAY
Tuesday (Mar 29)
Morning: ASO CONN LOVE MKC DTC
Afternoon: CALM CHWY LULU MU MLKN PRGS PVH RH SPWH VRNT
Wednesday (Mar 30)
Morning: AER BNTX CNM FIVE MSM PAYX
Afternoon: PHR PATH
Thursday (Mar 31)
Morning: SHCR WBA
Afternoon: BB BLND DCT NCNO
Asia & Europe detail:
Asia: Nikkei -0.6%; Hang Seng +0.2%, Shanghai Composite +0.9%
Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Manufacturing PMI remained in expansionary territory for the 14th consecutive month while South Korea's Manufacturing PMI indicated expansion for the 18th month in a row. China's Caixin Manufacturing PMI fell into contraction for the first time since January. A former Japanese currency official warned that the recent rapid depreciation in the yen is a negative since it reflects waning competitiveness.
In economic data:
China's March Caixin Manufacturing PMI 48.1 (expected 50.0; last 50.4)
Japan's Q1 Tankan Large Manufacturers Index 14 (expected 12; last 17) and Large Non-Manufacturers Index 9 (expected 5; last 10). Q1 Tankan All Big Industry Capex 2.2% (expected 4.0%; last 9.3%). March Manufacturing PMI 54.1 (expected 53.2; last 52.7)
South Korea's March trade deficit $140 mln (last surplus of $830 mln). March Imports 27.9% yr/yr (expected 27.8%; last 25.2%) and Exports 18.2% yr/yr (expected 17.5%; last 20.6%). March Nikkei Manufacturing PMI 51.2 (last 53.8)
Australia's March Manufacturing PMI 57.7 (expected 57.3; last 57.0) and AIG Manufacturing Index 55.7 (last 53.2). February Home Loans -4.7% m/m (last 1.0%). March Commodity Prices 40.9% yr/yr (last 16.7%)
Singapore's Q4 URA Property Index 0.4% qtr/qtr (last 1.1%)
---Equity Markets---
Japan's Nikkei: -0.6% (-1.7% for the week)
Hong Kong's Hang Seng: +0.2% (+3.0% for the week)
China's Shanghai Composite: +0.9% (+2.2% for the week)
India's Sensex: +1.2% (+3.3% for the week)
South Korea's Kospi: -0.7% (+0.4% for the week)
Australia's ASX All Ordinaries: -0.1% (+1.3% for the week)
---FX---
USD/JPY: +0.6% to 112.41
USD/CNH: +0.2% to 6.3632
USD/INR: UNCH at 75.97
Europe: DAX +0.4%, FTSE +0.2%, CAC +0.6%
Major European indices are tracking a higher finish to the week. Eurozone's yr/yr CPI rate accelerated to a fresh record of 7.5% in the flash reading for March. BASF CEO warned that putting an immediate halt to imports of natural gas from Russia would cause many small and medium-sized companies to go bankrupt. Gas continued flowing to Europe today despite the passing of a deadline that requires buyers to pay in rubles.
In economic data:
Eurozone's flash March CPI 2.5% m/m (last 0.9%); 7.5% yr/yr (expected 6.6%; last 5.9%). March Core CPI 2.5% m/m (last 0.9%); 3.0% yr/yr (expected 3.1%; last 2.7%). March Manufacturing PMI 56.5 (expected 57.0; last 58.2)
Germany's March Manufacturing PMI 56.9 (expected 57.6; last 57.6)
France's March Manufacturing PMI 54.7 (expected 54.8; last 54.8). February budget deficit EUR37.60 bln (last deficit of EUR15.90 bln)
Italy's March Manufacturing PMI 55.8 (expected 57.0; last 58.3)
Spain's March Manufacturing PMI 54.2 (expected 55.5; last 56.9)
Swiss March CPI 0.6% m/m (expected 0.5%; last 0.7%); 2.4% yr/yr, as expected (last 2.2%). March procure.chPMI 64.0 (expected 60.5; last 62.6)
---Equity Markets---
STOXX Europe 600: +0.6% (+1.2% week-to-date)
Germany's DAX: +0.4% (+1.2% week-to-date)
U.K.'s FTSE 100: +0.2% (+0.7% week-to-date)
France's CAC 40: +0.6% (+2.2% week-to-date)
Italy's FTSE MIB: +0.9% (+2.8% week-to-date)
Spain's IBEX 35: +0.9% (+2.3% week-to-date)
---FX---
EUR/USD: -0.1% to 1.1057
GBP/USD: UNCH at 1.3135
USD/CHF: +0.2% to 0.9243