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Writer's pictureSimon Charles Hooper

04/05/23 briefing


The S&P 500 futures are down 14 points and are trading 0.3% below fair value. The Nasdaq 100 futures are down 10 points and are trading slightly below fair value. The Dow Jones Industrial Average futures are down 118 points and are trading 0.3% below fair value.

Stock futures are weak on the heels of yesterday's FOMC decision and with concerns over the regional bank industry back at the fore. PacWest (PACW) shares plunged on a Bloomberg report that the bank is mulling strategic options including sale. Relative strength in some mega cap stocks is offering some support to the Nasdaq 100 futures, presumably driven by some flight to safety buying interest. Amazon.com (AMZN), Microsoft (MSFT), Tesla (TSLA), and Alphabet (GOOG) are all standouts in that regard.

The Hong Kong Monetary Authority followed the FOMC rate hike with a 25-bps increase to 5.50% and the Norges Bank raised its deposit rate by 25 bps to 3.25%, as expected. The European Central Bank is also expected to raise its key lending rates at 8:15 ET.

Treasury yields are sharply lower. The 2-yr note yield is down 15 basis points to 3.80% and the 10-yr note yield is down four basis points to 3.35%.

Market participants will receive the following economic data today:

8:30 ET: Preliminary Q1 Productivity (Briefing.com consensus -0.1%; prior 1.7%), preliminary Q1 Unit Labor Costs (Briefing.com consensus 3.9%; prior 3.2%), March Trade Balance (Briefing.com consensus -$68.7 bln; prior -$70.50 bln), weekly Initial Claims (Briefing.com consensus 245,000; prior 230,000), and Continuing Claims (prior 1.858 mln) 10:30 ET: Weekly natural gas inventories (prior +79 bcf)

In corporate news:

  • PacWest (PACW 4.200, -2.2200, -34.6%): mulling strategic options including sale, according to Bloomberg

  • Peloton (PTON 8.79, -0.04, -0.5%): misses by $0.31, beats on revs; guides Q4 revs above consensus

  • Wayfair (W 34.63, +3.34, +10.7%): beats by $0.58, beats on revs; expects to have positive adjusted EBITDA in Q2

  • Qualcomm (QCOM 104.18, -8.65, -7.7%): misses by $0.01, beats on revs; guides Q3 EPS below consensus, revs below consensus

  • First Horizon (FHN 8.65, -6.40, -42.5%): Toronto-Dominion Bank and First Horizon (FHN) agree to terminate their previously announced merger; TD to make a $200 mln payment to FHN

  • Marvell (MRVL 39.01, -0.51, -1.3%): appoints CEO Matt Murphy as Chair of the Board, effective June 16; succeeds Rick Hill who is retiring

  • Moderna (MRNA 131.49, +1.35, +1.0%): beats by $1.93, beats on revs

  • Paramount Global (PARA 19.74, -3.15, -13.8%): misses by $0.09, misses on revs

  • Option Care Health (OPCH 26.98, -5.81, -17.7%): to acquire Amedisys (AMED) in all-stock deal worth $3.6 bln

  • SolarEdge Technologies (SEDG 292.50, +28.68, +10.9%): beats by $0.95, beats on revs; guides Q2 revs in-line

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while markets in Japan were closed for a holiday. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: +1.3%, China's Shanghai Composite: +0.8%, India's Sensex: +0.9%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: UNCH.

    • In economic data:

      • China's April Caixin Manufacturing PMI 49.5 (expected 50.3; last 50.0)

      • Hong Kong's April Manufacturing PMI 52.4 (expected 53.7; last 53.5)

      • Australia's March trade surplus AUD15.27 bln (expected surplus of AUD12.65 bln; last surplus of AUD14.15 bln). March Imports 2.0% m/m (last -10.0%) and Exports 4.0% m/m (last -2.7%)

      • New Zealand's March Building Consents 7.0% m/m (expected -0.3%; last -9.4%)


  • In news:

    • China's Caixin Manufacturing PMI returned into contraction in the April reading.

    • The International Monetary Fund released a report forecasting a slowdown in China's productivity and investment over the medium-term, but the growth forecast for 2023 was affirmed at 5.2%.

    • Samsung is at a risk of facing its first labor strike after failed wage negotiations.

    • Hong Kong Monetary Authority followed the FOMC rate hike with a 25-bps increase to 5.50%.



  • Major European indices trade in the red ahead of the European Central Bank's expected rate hike announcement at 8:15 ET. STOXX Europe 600: -0.8%, Germany's DAX: -0.8%, U.K.'s FTSE 100: -0.8%, France's CAC 40: -1.0%, Italy's FTSE MIB: -1.0%, Spain's IBEX 35: -1.1%.

    • In economic data:

      • Eurozone's March PPI -1.6% m/m (expected -1.7%; last -0.4%); 5.9% yr/yr, as expected (last 13.3%). Final April Services PMI 56.2 (expected 56.6; last 55.0)

      • Germany's March trade surplus EUR16.70 bln (expected surplus of EUR16.10 bln; last surplus of EUR16.10 bln). March Imports -6.4% m/m (expected -1.7%; last 4.4%) and Exports -5.2% m/m (expected -2.4%; last 4.0%). Final April Services PMI 56.0 (expected 55.7; last 53.7)

      • U.K.'s March Mortgage Approvals 52,010 (expected 46,250; last 44,130), March BoE Consumer Credit GBP1.574 bln (expected GBP1.200 bln; last GBP1.485 bln). Final April Services PMI 55.9 (expected 54.9; last 52.9)

      • France's April Services PMI 54.6 (expected 56.3; last 53.9)

      • Italy's April Services PMI 57.6 (expected 56.5; last 55.7)

      • Spain's April Services PMI 57.9 (expected 59.9; last 59.4) and April Unemployment Change -73,900 (expected -23,100; last -48,800)


  • In news:

    • Volkswagen and BMW beat Q1 expectations and affirmed their guidance.

    • Chipmaker Infineon beat quarterly expectations and raised its revenue guidance for the year.

    • The Bank of England's Decision Maker Panel survey showed that businesses expect 5.5% inflation over the next 12 months.

    • Norges Bank raised its deposit rate by 25 bps to 3.25%, as expected.



U.S. equity futures:

  • S&P 500 Futures: -13 @ 4,077

  • DJIA Futures: -118 @ 33,296

  • Nasdaq 100 Futures: UNCH @ 13,031

Overseas:

  • Europe: DAX -0.8%, FTSE -0.8%, CAC -1.0%

  • Asia: Nikkei CLOSED, Hang Seng +1.3%, Shanghai Composite +0.8%

Commodities:

  • Crude Oil -0.02 @ 68.50

  • Nat Gas -0.035 @ 2.135

  • Gold +13.55 @ 2050.55

  • Silver +0.211 @ 25.892

  • Copper +0.0297 @ 3.8747


Earnings/Guidance:

  • 10x Genomics ( TXG â–¾ 1.82% ) misses by $0.06, beats on revs; raises FY23 revs in-line

  • Advanced Energy ( AEIS â–¾ 2.94% ) beats by $0.10, beats on revs; guides Q2 EPS, revs in-line

  • Albemarle ( ALB â–´ 4.04% ) beats by $3.26, misses on revs; guides FY23 EPS below consensus, revs in-line

  • Alkami Technology ( ALKT â–´ 5.74% ) reports Q1 (Mar) results, beats on revs; guides Q2 revs in-line; guides FY23 revs in-line

  • Altice USA ( ATUS â–¾ 7.96% ) reports EPS in-line, revs in-line

  • Allogene ( ALLO â–´ 12.67% ) misses by $0.06

  • Allstate ( ALL â–´ 0.80% ) misses by $0.29, reports revs in-line

  • Amedisys ( AMED â–¾ 5.63% ) beats by $0.12, reports revs in-line; guides FY23 EPS in-line, revs in-line

  • Amwell ( AMWL â–¾ 5.42% ) reports Q1 (Mar) results, misses on revs; reaffirms FY23 revs guidance

  • Anheuser-Busch InBev ( BUD â–´ 3.04% ) beats by $0.05, beats on revs

  • ANSYS ( ANSS â–´ 0.55% ) beats by $0.24, beats on revs; guides Q2 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line

  • Anywhere Real Estate ( HOUS â–¾ 21.94% ) misses by $0.47, reports revs in-line; expects FY23 transaction volumes to decline 15-20% yr/yr

  • APA Corp. ( APA â–´ 1.20% ) beats by $0.22, beats on revs

  • AssetMark ( AMK â–¾ 6.00% ) misses by $0.01, beats on revs

  • Atmos Energy ( ATO â–´ 3.65% ) beats by $0.02, misses on revs; guides FY23 EPS in-line

  • Avnet ( AVT â–´ 5.92% ) beats by $0.21, beats on revs; guides Q4 EPS above consensus, revs above consensus

  • Axcelis Tech ( ACLS â–¾ 9.52% ) beats by $0.13, beats on revs; guides Q2 EPS below consensus, revs above consensus; guides FY23 revs above consensus

  • Benchmark Electronics ( BHE â–´ 1.88% ) reports EPS in-line, beats on revs; guides Q2 EPS in-line, revs in-line

  • Black Hills Corp ( BKH â–¾ 0.78% ) beats by $0.06, beats on revs

  • Callon Petroleum ( CPE â–´ 4.82% ) misses by $0.10, beats on revs

  • Canadian Nat'l Rail ( CNI â–¾ 0.64% ) provides update to its three-year financial perspective

  • Cars.com ( CARS â–¾ 15.20% ) misses by $0.27, reports revs in-line; guides Q2 revs in-line; reaffirms FY23 revs guidance

  • Cedar Fair ( FUN â–¾ 3.72% ) reports Q1 results; misses on revs; approves new share repurchase, declares dividend

  • Ceridian HCM ( CDAY â–¾ 3.07% ) misses by $0.01, beats on revs; guides Q2 revs below consensus; reaffirms FY23 revs guidance

  • Chord Energy ( CHRD â–´ 0.75% ) beats by $0.20, beats on revs

  • Civitas Resources ( CIVI â–¾ 0.58% ) beats by $0.44, beats on revs

  • Cognizant Tech ( CTSH â–´ 6.83% ) beats by $0.06, beats on revs; guides Q2 revs in-line; guides FY23 EPS below consensus, revs in-line; raises dividend 7%

  • Compass Diversified ( CODI â–´ 2.31% ) beats by $0.10, reports revs in-line

  • Confluent ( CFLT â–´ 10.57% ) beats by $0.05, beats on revs; guides Q2 EPS above consensus, revs in-line; guides FY23 EPS above consensus, reaffirms FY23 revs guidance

  • Corcept Therapeutics ( CORT â–¾ 2.71% ) misses by $0.07, reports revs in-line; guides FY23 revs mostly above consensus

  • Costco ( COST â–¾ 0.34% ) reports April net sales +3.0% yr/yr to $17.85 bln; total monthly comparable sales +1.4%, adj comps (ex gas fx) +4.3%

  • Cross Country ( CCRN â–´ 6.18% ) beats by $0.09, beats on revs; guides Q2 EPS below consensus, revs below consensus; replenished repurchase program to $100 mln

  • Curtiss-Wright ( CW â–¾ 6.02% ) beats by $0.13, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Datadog ( DDOG â–´ 15.07% ) beats by $0.04, beats on revs; guides Q2 EPS above consensus, revs in-line; guides FY23 EPS above consensus, revs in-line

  • Denbury ( DEN â–¾ 2.76% ) misses by $0.02, beats on revs; anticipates Q2 sales volumes to be similar to Q1

  • DHT ( DHT â–¾ 9.58% ) misses by $0.02, misses on revs

  • Enact Holdings ( ACT â–¾ 4.65% ) beats by $0.25, new insurance written down 13%

  • Encore Capital ( ECPG â–¾ 8.99% ) reports Q1 (Mar) results, misses on revs

  • Envista ( NVST â–¾ 6.75% ) misses by $0.03, reports revs in-line

  • Equinix ( EQIX â–´ 4.16% ) reports Q1 (Mar) results, beats on revs; guides Q2 revs in-line; guides FY23 revs in-line

  • Equitable Holdings ( EQH â–¾ 8.80% ) beats by $0.02, registers $2.36 bln in total revs

  • Equity Commonwealth ( EQC â–´ 0.25% ) beats by $0.01, beats on revs

  • Etsy ( ETSY â–¾ 6.25% ) beats by $0.02, beats on revs; guides Q2 revs in-line; Q1 GMS towards the high end of guidance

  • Eversource Energy ( ES â–´ 0.09% ) beats by $0.07, beats on revs; reaffirms FY23 EPS guidance

  • Evolent Health ( EVH â–¾ 10.34% ) beats by $0.01, misses on revs; guides Q2 revs in-line; guides FY23 revs in-line

  • FARO Techs ( FARO â–¾ 39.98% ) misses by $0.25, reports revs in-line; guides Q2 EPS below consensus, revs below consensus

  • Fastly ( FSLY â–¾ 4.14% ) beats by $0.01, beats on revs; guides Q2 EPS below consensus, revs in-line; guides FY23 EPS in-line, revs in-line

  • Fate Therapeutics ( FATE â–¾ 1.50% ) beats by $0.43, beats on revs

  • Fidelity National ( FNF â–¾ 7.24% ) misses by $0.34, beats on revs

  • FleetCor ( FLT â–´ 8.04% ) beats by $0.11, beats on revs; guides Q2 EPS below consensus, revs in-line; guides FY23 EPS in-line, revs above consensus

  • FormFactor ( FORM â–¾ 7.20% ) beats by $0.03, beats on revs; guides Q2 EPS in-line, revs in-line

  • Frontier Group Holdings ( ULCC â–¾ 16.72% ) beats by $0.01, reports revs in-line

  • Genco Shipping & Trading ( GNK â–¾ 8.52% ) misses by $0.08, misses on revs

  • Gildan Activewear ( GIL â–¾ 7.00% ) misses by $0.07, reports revs in-line; reconfirms its outlook for 2023

  • Glaukos ( GKOS â–´ 8.91% ) misses by $0.01, beats on revs; guides FY23 revs above consensus

  • Globe Life ( GL â–¾ 3.75% ) beats by $0.06, misses on revs; guides FY23 EPS above consensus

  • Host Hotels ( HST â–´ 4.43% ) beats by $0.07, beats on revs; guides FY23 FFO above consensus, revs above consensus

  • HubSpot ( HUBS â–´ 11.83% ) beats by $0.37, beats on revs; guides Q2 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs above consensus

  • Inari ( NARI â–¾ 0.13% ) beats by $0.19, beats on revs; guides FY23 revs above consensus

  • Infinera ( INFN â–¾ 1.57% ) beats by $0.04, beats on revs; guides Q2 mid-point of EPS below consensus, revs below consensus

  • Ingersoll-Rand ( IR â–´ 2.39% ) beats by $0.13, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • Ingevity ( NGVT â–¾ 13.94% ) misses by $0.02, misses on revs; lowers FY23 revs in-line

  • Innospec ( IOSP â–¾ 0.81% ) beats by $0.21, beats on revs; approves 10% dividend increase

  • JFrog ( FROG â–´ 21.07% ) beats by $0.03, beats on revs; guides Q2 EPS above consensus, revs in-line; guides FY23 EPS above consensus, revs in-line

  • Kennedy Wilson ( KW â–¾ 10.64% ) misses by $0.37, misses on revs

  • Kratos Defense and Security ( KTOS â–´ 1.77% ) beats by $0.02, beats on revs; guides Q2 revs below consensus; reaffirms FY23 revs guidance

  • Kulicke & Soffa ( KLIC â–¾ 0.83% ) beats by $0.12, beats on revs; guides Q3 EPS below consensus, revs in-line

  • Lemonade ( LMND â–´ 29.40% ) beats by $0.13, beats on revs; guides Q2 revs above consensus; guides FY23 revs above consensus

  • Leslie's ( LESL â–¾ 0.33% ) misses by $0.03, misses on revs; reaffirms FY23 EPS guidance, revs guidance

  • Magnolia Oil & Gas ( MGY â–¾ 4.38% ) misses by $0.03, misses on revs

  • Marathon Oil ( MRO â–¾ 1.21% ) beats by $0.09, beats on revs

  • Marriott Vacations ( VAC â–¾ 1.73% ) beats by $0.61, beats on revs; guides FY23 EPS above consensus

  • MAXIMUS ( MMS â–¾ 4.20% ) misses by $0.03, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance

  • MercadoLibre beats by $0.66, beats on revs

  • MetLife ( MET â–¾ 7.39% ) misses by $0.34, misses on revs

  • MGIC Investment ( MTG â–¾ 1.92% ) beats by $0.04, misses on revs

  • MGP Ingredients ( MGPI â–´ 7.19% ) beats by $0.29, beats on revs; guides FY23 EPS in-line, revs in-line

  • MKS Instruments ( MKSI â–¾ 0.64% ) beats by $0.66, beats on revs; guides Q2 EPS in-line, revs in-line

  • Mosaic ( MOS â–¾ 9.02% ) misses by $0.11, beats on revs

  • Myriad Genetics ( MYGN â–¾ 7.04% ) misses by $0.02, beats on revs; updates FY23 guidance

  • NanoString Technologies ( NSTG â–¾ 2.91% ) misses by $0.32, beats on revs; raises FY23 revs guidance above consensus

  • Novo Nordisk A/S ( NVO â–¾ 3.53% ) beats on top and bottom lines; updates outlook

  • Nu Skin ( NUS â–¾ 4.03% ) beats by $0.04, reports revs in-line; guides Q2 revs below consensus; guides FY23 EPS in-line, revs in-line

  • Opko Health ( OPK â–´ 8.82% ) beats by $0.06, beats on revs

  • Option Care Health ( OPCH â–¾ 25.34% ) beats by $0.05, beats on revs; guides FY23 revs in-line

  • OUTFRONT Media ( OUT â–¾ 8.48% ) misses by $0.09, beats on revs

  • Palomar Holdings ( PLMR â–´ 4.78% ) beats by $0.06, misses on revs

  • Papa John's ( PZZA â–´ 3.56% ) beats by $0.01, misses on revs, North American comps flat

  • Paramount Global ( PARA â–¾ 25.10% ) misses by $0.09, misses on revs

  • Paramount Group ( PGRE â–´ 1.36% ) beats by $0.03, beats on revs; guides FY23 FFO in-line

  • PDC Energy ( PDCE â–´ 1.55% ) beats by $1.77, beats on revs

  • Peloton ( PTON â–¾ 13.31% ) misses by $0.31, beats on revs; guides Q4 revs above consensus

  • Procore Technologies ( PCOR â–´ 8.35% ) beats by $0.13, beats on revs; guides Q2 revs in-line; raises FY23 revs guidance

  • Public Storage ( PSA â–´ 1.16% ) beats by $0.09, reports revs in-line; guides FY23 FFO in-line

  • Qiagen ( QGEN â–´ 3.34% ) beats by $0.05, beats on revs; guides Q2 EPS in-line, revs below consensus; reaffirms FY23 EPS, revs guidance

  • Qorvo ( QRVO â–¾ 0.14% ) beats by $0.13, beats on revs; guides JunQ EPS below consensus, revs in-line; expects continued progress reducing Android channel inventory in coming quarters

  • Qualcomm ( QCOM â–¾ 6.53% ) misses by $0.01, beats on revs; guides Q3 EPS below consensus, revs below consensus

  • QuidelOrtho ( QDEL â–¾ 4.20% ) beats by $0.37, beats on revs

  • QuinStreet ( QNST â–¾ 10.36% ) beats by $0.04, beats on revs; guides FY23 revs below consensus

  • Radian Group ( RDN â–¾ 0.25% ) beats by $0.23, reports revs in-line

  • Rayonier ( RYN â–¾ 4.85% ) misses by $0.09, misses on revs; sees FY23 at low end of prior guidance range

  • Realty Income ( O â–´ 0.28% ) beats by $0.03, beats on revs; guides FY23 FFO in-line

  • REGENXBIO ( RGNX â–¾ 5.78% ) misses by $0.14, misses on revs

  • Remitly Global ( RELY â–´ 1.45% ) reports Q1 (Mar) results, beats on revs; guides FY23 revs in-line

  • Resideo ( REZI â–¾ 5.52% ) misses by $0.08, beats on revs; guides Q2 EPS below two analyst estimate, revs below consensus; guides FY23 EPS below two analyst estimate, revs in-line

  • Revolve Group ( RVLV â–¾ 7.05% ) beats by $0.04, misses on revs

  • Royal Gold ( RGLD â–´ 6.32% ) reports EPS in-line, beats on revs

  • RPT Realty ( RPT â–¾ 2.78% ) beats by $0.01, beats on revs; reaffirms FY23 FFO guidance

  • Rush Street Interactive ( RSI â–´ 2.68% ) beats by $0.11, beats on revs; reaffirms FY23 revs guidance

  • Ryman Hospitality ( RHP â–´ 1.57% ) beats by $0.48, beats on revs; guides FY23 FFO above consensus, increases quarterly dividend to $1.00/share from $0.75/share

  • Sabre ( SABR â–¾ 6.96% ) beats by $0.05, beats on revs; guides Q2 revs below consensus; reaffirms FY23 revs guidance; announces resource realignment to reduce costs by $200 mln annually

  • Selective Insurance ( SIGI â–¾ 3.54% ) misses by $0.14, reports revs in-line

  • Shake Shack ( SHAK â–´ 12.53% ) beats by $0.07, beats on revs; guides Q2 revs below consensus; guides FY23 revs in-line

  • Shell plc ( SHEL â–´ 1.60% ) beats by $0.20; beats on revs; commences share buyback

  • Shopify ( SHOP â–´ 26.84% ) beats by $0.05, beats on revs; to sell majority of logistics business to Flexport

  • SolarEdge Technologies ( SEDG â–´ 8.88% ) beats by $0.95, beats on revs; guides Q2 revs in-line

  • Spirit Realty Capital (SRC) misses by $0.01; guides FY23 FFO below consensus

  • STAAR Surgical ( STAA â–¾ 8.12% ) beats by $0.09, beats on revs; guides FY23 revs above consensus

  • Stoneridge ( SRI â–¾ 6.24% ) beats by $0.05, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Summit Materials ( SUM â–´ 8.32% ) beats by $0.10, beats on revs

  • Sunrun ( RUN â–¾ 11.62% ) reports Q1 (Mar) results, beats on revs; reiterates +10-15% solar energy capacity installed growth yr/yr in FY23

  • Synaptics ( SYNA â–¾ 20.00% ) beats by $0.03, reports revs in-line; guides Q4 revs below consensus; authorizes $500 mln repurchase program

  • Tandem Diabetes Care ( TNDM â–¾ 7.76% ) misses by $1.39, reports revs in-line; reaffirms FY23 revs guidance

  • TripAdvisor ( TRIP â–¾ 8.95% ) misses by $0.01, beats on revs

  • TTEC Holdings ( TTEC â–´ 9.01% ) beats by $0.32, beats on revs; guides Q2 EPS in-line, revs below consensus; reaffirms FY23 EPS guidance, revs guidance

  • Udemy ( UDMY â–´ 2.20% ) beats by $0.08, beats on revs; guides Q2 revs in-line; guides FY23 revs in-line

  • UGI Corp ( UGI â–¾ 6.88% ) misses by $0.13, reports revs in-line; guides FY23 EPS below consensus

  • Universal Display ( OLED â–´ 6.30% ) beats by $0.02, misses on revs; reaffirms FY 23 revs guidance

  • Upwork ( UPWK â–¾ 0.43% ) beats by $0.06, beats on revs; guides Q2 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs below consensus

  • U.S. Physical Therapy ( USPH â–´ 0.93% ) beats by $0.04, beats on revs

  • Vimeo ( VMEO â–´ 15.43% ) reports Q1 (Mar) results, beats on revs; guides Q2 revs below consensus

  • Vista Outdoor ( VSTO â–´ 16.96% ) beats by $0.18, beats on revs; guides FY24 EPS in-line, revs below consensus

  • Warrior Met Coal ( HCC â–´ 8.05% ) beats by $1.07, beats on revs

  • Watts Water Tech. ( WTS â–¾ 0.31% ) beats by $0.28, reports revs in-line

  • Wayfair ( W â–´ 13.26% ) beats by $0.58, beats on revs; expects to have positive adjusted EBITDA in Q2

  • Werner Enterprises ( WERN â–¾ 1.34% ) misses by $0.11, misses on revs

  • Western Alliance Bancorp ( WAL â–¾ 61.62% ) issues updated financial information

  • Western Midstream ( WES â–¾ 1.94% ) misses by $0.13, reports revs in-line

  • Williams Cos () beats by $0.07, beats on revs; reiterates FY23 adjusted EBITDA and CapEx guidance

  • Zillow ( ZG â–´ 7.23% ) beats by $0.24, beats on revs and EBITDA; guides Q2 revs in-line

News:

  • White House economic officials say debt ceiling default will cost 8 million jobs and cause a 45% drop in the stock market, according to NBC News

  • Senate passes bill to block President Biden from removing tariffs on solar materials from Southeast Asia, but he is expected to veto this bill, according to the Wall Street Journal

  • US approved increase in China airline flights to US, according to Reuters

  • White House announces new actions to promote responsible ai innovation that protects Americans' rights and safety

  • Astellas Pharma ( ALPMY ) granted Orphan Designation by FDA for its treatment of gastric cancer per FDA website

  • Cboe global markets ( CBOE â–´ 0.28% ) reports trading volume for April 2023

  • FARO Techs ( FARO â–¾ 39.98% ) announces that Michael Burger has informed the company that he intends to retire as president & chief executive officer and such retirement will be effective July 1st, 2023

  • Goldman Sachs ( GS â–¾ 2.13% ) discloses it is also cooperating with and providing information to various governmental bodies in connection with their investigations and inquiries into Silicon Valley Bank

  • Marvell ( MRVL â–¾ 1.19% ) appoints CEO Matt Murphy as Chair of the Board, effective June 16; succeeds Rick Hill who is retiring

  • Meta Platforms ( META â–¾ 0.62% ): French Competition Authority issues interim measures against META related to advertising verification data

  • MetLife ( MET â–¾ 7.39% ) has approved a new $3 bln authorization for the company to repurchase its common stock

  • PacWest Bancorp ( PACW â–¾ 57.32% ) issues update

  • Q2 Holdings ( QTWO â–¾ 1.65% ) announces that Kirk Coleman has been promoted to President

  • Steris ( STE â–¾ 0.25% ) has authorized a new share buyback program for the purchase of up to $500 mln of the Company's ordinary shares

  • TTM Tech ( TTMI â–´ 0.96% ) board of directors approves $100 million share repurchase program

M&A:

  • Arconic (ARNC) to be acquired by funds managed by Apollo Global Management ( APO â–¾ 4.37% ) at $30/share, valuing company at approx. $5.2 bln

  • Callon Petroleum ( CPE â–´ 4.82% ) to acquire Core Delaware Basin assets and Exit Eagle Ford

  • Option Care Health ( OPCH â–¾ 25.34% ) to acquire Amedisys in all-stock deal worth $3.6 bln

  • PacWest Bancorp ( PACW â–¾ 57.32% ) mulling strategic options including sale, according to Bloomberg

  • Universal Display ( OLED â–´ 6.30% ) announces that through its wholly-owned subsidiary UDC Ireland Limited, UDC has acquired the Phosphorescent OLED Emitter Intellectual Property assets of Merck KGaA

Syndicate:

  • ImmunoGen ( IMGN â–´ 5.95% ) announces that it intends to offer and sell, subject to market and other conditions, $200 mln of shares of its common stock in an underwritten public offering

  • Joby Aviation ( JOBY â–¾ 0.24% ) announces pricing of its public offering of 43,985,681 shares of its common stock at a public offering price of $4.10/share

  • Ryerson ( RYI â–¾ 6.96% ) has commenced a secondary offering of 2,630,700 shares of its common stock

  • Uber (UBER) files mixed securities shelf offering

  • Zynex ( ZYXI â–¾ 27.27% ) announces proposed $50 million offering of convertible senior notes

IPOs:

  • Expected to Price:

    • Kenvue ( KVUE 0.00% ): The consumer health unit being spun off by Johnson & Johnson (JNJ) priced its upsized 172.8 mln share IPO at $22, towards the high end of the $20-$23 expected range.


Gapping Up/Down

  • Gapping up:

    • LMND +11.8%, SEDG +11.3%, FROG +10.2%, UDMY +7.7%, PCOR +7%, CPE +6.9%, RSI +6.6%, QRVO +6.3%, OCSL +6.2%, AUPH +6.1%, CFLT +6%, INFN +5.9%, AVT +5.5%, HUBS +5.3%, OPK +5.2%, BALL +5.2%, PGRE +5%, EQNR +4.6%, HST +4.5%, NFE +4.4%, CTSH +4.3%, ZG +4.2%, GFI +3.9%, HCC +3.8%, MELI +3.4%, CSGS +3.4%, OLED +3.2%, AMED +3%, CODI +3%, IMGN +2.9%, VMEO +2.8%, ETSY +2.7%, DINO +2.6%, BTBT +2.4%, IR +2.4%, LEV +2.3%, CTVA +2.2%, NGVT +2.2%, NSTG +2.2%, QGEN +2.1%, PLMR +2%, RGNX +2%, SRI +2%, SUM +2%, AEIS +2%, GL +1.9%, SHEL +1.9%, NE +1.8%, MKSI +1.8%, RGLD +1.7%, TD +1.6%, GOLF +1.6%, QNST +1.5%, PAC +1.4%, FATE +1.3%, ALL +1.3%, KLIC +1.2%, FUN +1.2%, APA +1%, FLT +1%


  • Gapping down:

    • FHN -40.3%, PACW -39.1%, ZYXI -22.8%, MCB -19.4%, WAL -18.8%, HOUS -18.4%, UPWK -18.1%, SYNA -17.2%, OPCH -16.7%, RPHM -15.8%, RVLV -12.6%, TNDM -11.7%, FARO -8.4%, ECVT -7.8%, ALKT -7.1%, ARDX -6.8%, QCOM -6.8%, EVA -6.3%, TRIP -5.7%, LESL -5.3%, NVO -5.1%, RGR -5%, CORT -5%, NVST -4.9%, OUT -4.8%, AMWL -4.7%, SITM -4.2%, FNF -4.1%, ACEL -3.3%, ARGX -3.2%, VCYT -3.1%, STAA -3%, RYI -2.9%, ANSS -2.9%, ATUS -2.9%, CDAY -2.6%, GEL -2.6%, DEN -2.3%, SCHW -2.2%, KRO -2.2%, ECPG -2%, MTG -2%, FORM -2%, WERN -2%, REZI -1.9%, GIL -1.7%, IMXI -1.7%, MT -1.6%, ATO -1.5%, INFA -1.4%, MGY -1.3%, MET -1.1%, ALB -1%, TXG -1%


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

  • Upgrades

    • Blackbaud (BLKB) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $84

    • CEMEX S.A. (CX) upgraded to Buy from Neutral at Goldman; tgt raised to $9

    • Design Therapeutics (DSGN) upgraded to Neutral from Sell at Goldman; tgt $6

    • Neurocrine Biosciences (NBIX) upgraded to Buy from Neutral at Guggenheim; tgt $145

    • Verisk Analytics (VRSK) upgraded to Buy from Underperform at BofA Securities; tgt raised to $243

    • Weave Communications (WEAV) upgraded to Outperform from Mkt Perform at Raymond James; tgt $6

    • Wix.com (WIX) upgraded to Outperform from Mkt Perform at Raymond James; tgt $96


  • Downgrades:

    • Builders FirstSource (BLDR) downgraded to Neutral from Outperform at Robert W. Baird; tgt $96

    • Fulcrum Therapeutics (FULC) downgraded to Neutral from Buy at Goldman; tgt lowered to $3

    • Incyte (INCY) downgraded to Neutral from Buy at BofA Securities; tgt $84

    • Revolve Group (RVLV) downgraded to Mkt Perform from Outperform at Raymond James

    • Spirit Aerosystems (SPR) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $28

    • Upwork (UPWK) downgraded to Neutral from Buy at BofA Securities; tgt $9

    • Wingstop (WING) downgraded to Neutral from Buy at Citigroup; tgt raised to $224


  • Others:

    • HomeTrust Bank (HTBI) assumed with an Overweight at Piper Sandler; tgt $25

    • Vertex Pharma (VRTX) assumed with an Overweight at Piper Sandler; tgt $385


Econ Data:

  • 08:30 ET: Productivity - Prelim for Q1 (Briefing.com Consensus -0.1%; Prior 1.7%)

  • 08:30 ET: Unit Labor Costs Prelim for Q1 (Briefing.com Consensus 3.9%; Prior 3.2%)

  • 08:30 ET: Trade Balance for Mar (Briefing.com Consensus -$68.7B; Prior -$70.5B)

  • 08:30 ET: Initial Claims for Apr 29 (Briefing.com Consensus 245K; Prior 230K)

  • 08:30 ET: Continuing Claims for Apr 22 (Briefing.com Consensus NA; Prior 1858K)

  • 10:30 ET: EIA Natural Gas Inventories for Apr 29 (Briefing.com Consensus NA; Prior +79 bcf)

Earnings:

  • Monday (May 1)

    • Morning: AMG CHKP CAN BEN GPN KBR NCLH ON PK SOFI WEC

    • Afternoon: ADUS AL AMRC AMKR ANET CAR AXNX BRX CRC CF CHGG CNO CYH CACC FANG PLOW RE FLS FMC FWRD FCPT HOLX INST INVH JJSF KMT LSCC LEG LOGI MED MGM MSTR MSA NSA NXPI OGS OTTR PDM RMBS SBAC SCI SON SFM SYK TEX TMDX RIG TWO VRNS VRTX VICI VNOM VNO WWD ZI


  • Tuesday (May 2)

    • Morning: ADT AER AGCO ABC AME BP BR LNG CQP CIGI CVLT CMI DORM DTM DD DEA ETN ECL NPO EPD ETRN AQUA EXPD FSS FELE IT GPK HRMY HWM IDXX ITW INCY INMD NSIT IPGP LDOS TREE LGIH MPC MAR MDC TAP MPLX NNN MD PRFT PFE PIPR PINC PEG RGEN QSR RYTM SAGE STNG SEE SUN SYY TROW TRI TRN TRTN UBER ZBRA ZBH


  • Tuesday (May 2)

    • Afternoon: ATGE AMD AFG ANDE ARWR APAM ASH AIZ ATRC AXTA BAND BFAM CZR CWH CCCS CHK CLX CRK DENN DEI EIX ET EEFT EXPI EXR F FNV FRSH LOPE THG HLF HMN HURN INSP JKHY JRVR KAI KAR LMAT LSI LFUS LTHM LUMN MTW MTCH MRCY MLNK MCW MUSA NRDS NMIH OHI OMCL OKE PACB PAYC PEN PECO PRO PRU LUNG RNR SRPT SPG SPT SBUX SMCI UFPI UIS UNM VREX VIAV VOYA WELL WU WK XHR YUMC


  • Wednesday (May 3)

    • Morning: ADNT ALE ASTE AVNS AVDX AVNT AVA GOLD BDC BRY TECH BCRX BLKB EAT BIP BLDR BG CDW CHEF CLH CNDT CRTO CVS DCPH XRAY DBRG DIN DFIN DRVN EMR EL EXC FTS FDP GRMN GNRC ROCK GOGO GFF HBI HSC HZNP INGR IONS JHG KHC LIVN LPX LXP MBUU MTRN MIR MUR NBIX NI PCRX PSN PERI PSX PUMP RDWR RXO SPNS SMG SBGI SITE SHC SR SPR SMP SPWR COCO TKR TT TRMB TPB UTHR VRSK WING WWE YUM


  • Wednesday (May 3)

    • Afternoon: TXG ADPT AEIS ALB ALKT ALLO ALL ATUS AMED AMWL ANSS HOUS APA AMK ATO AVT ACLS BHE BKH CPE CDAY CIVI CTSH CODI CFLT CORT CXW CTVA CCRN CW DEN DHT ESTE ECPG NVST EQIX EQH EQC ETSY ES EVH FPI FARO FSLY FATE FNF FLT FORM ULCC GNK GIL GKOS GL HST HUBS NARI INFN IR NGVT IOSP FROG KW KTOS KLIC LMND LESL MGY MRO VAC MMS MELI MET MTG MKSI MOS MYGN NSTG NFG NE NUS OPK OUT PLMR PGRE PDCE PCOR PSA QGEN QRVO QCOM QDEL QNST RDN RYN O RGNX RELY REZI RVLV RPT RSI RHP SIGI SITM SEDG SRC STAA SRI RGR SUM RUN SYNA TNDM TPIC TRIP TTEC TTMI USPH UDMY UGI OLED UPWK VMEO VSTO HCC WTS WERN WES WMB YELL ZG ZIMV


  • Thursday (May 4)

    • Morning: ACIW GOLF AGIO ATI ALNY AEP BUD APG APTV MT ARNC ARW AUPH BALL BHC BCE BDX BGNE BERY BKI BPMC BWA BV BRKR CAH CG CARS CIM IMOS CCOI CGNX COMM COP CEG DDOG DLX DGII DNB ECVT ESMT ENOV XPRO RACE FOCS FTDR GTES GEL GPRE HAYW DINO HII H IDA INSM IBP NTLA ICE IDCC IMXI ITCI IRM IRWD ITRI ITT JLL KRTX K KTB KYMR LAMR LANC LNTH MAC MTSI MMP MLM MDU MFA MGPI MRNA MODV NTCT NFE NJR NWN NVCR DNOW OCSL OGE OPCH OGN PZZA PARA PH PTON PENN PCG DOC PNW PBI PLNT PLTK PTLO PPL PBH PRMW PWR RCM REGN RITM RCL SABR SBH SRE SHAK FOUR SWK STWD STVN TFX TU TIXT THRY BLD UNIT UPBD VNT VMC WD W WCC WLK WRK WOW XPO XYL ZTS


  • Thursday (May 4)

    • Afternoon: AAON ABCL ACCO ATSG LNT AOSL ALTR AEE AMH AIG COLD AMN APLS AAPL TEAM AVID AZEK BGS BBDC BIGC BILL BIO BL SQ BCC BKNG BMBL CABO CDLX CVNA CHUY CRUS CLFD CWAN CDXS COHU COIN COLL ED CTRA CYRX CWK CYTK DH DRH BOOM DLB DASH DKNG DBX LOCO ENV EOG EXPE FRT FIGS FIVN FND FTNT FOXF FNKO GMED GDDY GT GDOT GDYN HTGC INGN PODD IRTC JAMF LGND LYFT MTZ MATX MGRC MERC MTD MCHP MNTV MPWR MNST MSI MP NCR LASR NOG OSPN ONTO OTEX OPEN OEC PCTY PBA PRDO PLYA POST POWI PRTA KWR QLYS RMAX RRR RDFN RRX REG RGA RLAY RLJ RKT RYAN SEM SHOP SIMO SPXC STEM SG TDC TXRH TMST TVTX TRUP TPC RARE UPLD VCYT VRRM WPM WW XPOF YELP ZETA


  • Friday (May 5)

    • Morning: ACMR AMC AXL AMRX BEP CBOE CNK CNHI ROAD D ENB EPAM ESNT EVRG FLR FYBR FSK FUBO FLGT GTN HUN TILE INSW JCI KOP MGA NMRK OMI PBF PAA PNM PRLB QRTEA SSP SHO CI TAC TWST WBD



Asia & Europe detail:

Asia: Nikkei CLOSED, Hang Seng +1.3%, Shanghai Composite +0.8%

Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while markets in Japan were closed for a holiday. China's Caixin Manufacturing PMI returned into contraction in the April reading. The International Monetary Fund released a report forecasting a slowdown in China's productivity and investment over the medium-term, but the growth forecast for 2023 was affirmed at 5.2%. Samsung is at a risk of facing its first labor strike after failed wage negotiations. Hong Kong Monetary Authority followed the FOMC rate hike with a 25-bps increase to 5.50%.

  • In economic data:

    • China's April Caixin Manufacturing PMI 49.5 (expected 50.3; last 50.0)

    • Hong Kong's April Manufacturing PMI 52.4 (expected 53.7; last 53.5)

    • Australia's March trade surplus AUD15.27 bln (expected surplus of AUD12.65 bln; last surplus of AUD14.15 bln). March Imports 2.0% m/m (last -10.0%) and Exports 4.0% m/m (last -2.7%)

    • New Zealand's March Building Consents 7.0% m/m (expected -0.3%; last -9.4%)


---Equity Markets---

  • Japan's Nikkei: CLOSED

  • Hong Kong's Hang Seng: +1.3%

  • China's Shanghai Composite: +0.8%

  • India's Sensex: +0.9%

  • South Korea's Kospi: UNCH

  • Australia's ASX All Ordinaries: UNCH

---FX---

  • USD/JPY: -0.1% to 134.51

  • USD/CNH: +0.1% to 6.9219

  • USD/INR: UNCH at 81.71

Europe: DAX -0.8%, FTSE -0.8%, CAC -1.0%

Major European indices trade in the red ahead of the European Central Bank's expected rate hike announcement at 8:15 ET. Volkswagen and BMW beat Q1 expectations and affirmed their guidance. Chipmaker Infineon beat quarterly expectations and raised its revenue guidance for the year. The Bank of England's Decision Maker Panel survey showed that businesses expect 5.5% inflation over the next 12 months. Norges Bank raised its deposit rate by 25 bps to 3.25%, as expected.

  • In economic data:

    • Eurozone's March PPI -1.6% m/m (expected -1.7%; last -0.4%); 5.9% yr/yr, as expected (last 13.3%). Final April Services PMI 56.2 (expected 56.6; last 55.0)

    • Germany's March trade surplus EUR16.70 bln (expected surplus of EUR16.10 bln; last surplus of EUR16.10 bln). March Imports -6.4% m/m (expected -1.7%; last 4.4%) and Exports -5.2% m/m (expected -2.4%; last 4.0%). Final April Services PMI 56.0 (expected 55.7; last 53.7)

    • U.K.'s March Mortgage Approvals 52,010 (expected 46,250; last 44,130), March BoE Consumer Credit GBP1.574 bln (expected GBP1.200 bln; last GBP1.485 bln). Final April Services PMI 55.9 (expected 54.9; last 52.9)

    • France's April Services PMI 54.6 (expected 56.3; last 53.9)

    • Italy's April Services PMI 57.6 (expected 56.5; last 55.7)

    • Spain's April Services PMI 57.9 (expected 59.9; last 59.4) and April Unemployment Change -73,900 (expected -23,100; last -48,800)


---Equity Markets---

  • STOXX Europe 600: -0.8%

  • Germany's DAX: -0.8%

  • U.K.'s FTSE 100: -0.8%

  • France's CAC 40: -1.0%

  • Italy's FTSE MIB: -1.0%

  • Spain's IBEX 35: -1.1%

---FX---

  • EUR/USD: +0.1% to 1.1066

  • GBP/USD: +0.1% to 1.2575

  • USD/CHF: +0.1% to 0.8849

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