The S&P 500 futures are up 2 points and are trading roughly in line with fair value. The Nasdaq 100 futures are up 18 points and are trading slightly above fair value. The Dow Jones Industrial Average futures are down 13 points and are trading slightly below fair value.
Equity futures trade in mixed fashion, but investors lack conviction and moves are modest in scope. There's some hesitation in play this morning ahead of key events this week, including Fed Chair Powell's monetary policy testimony before Senate and House committees on Tuesday and Wednesday, respectively, followed by the February Employment Report on Friday. Questions about how the market will respond to Friday's positive finish have contributed to the wait and see trade this morning.
China's Premier Li announced a 2023 growth target of 5.0%, which was on the low end of expectations. This has created some pressure for commodity prices. WTI crude oil futures are down 1.4% to $78.56/bbl. Copper futures are down 1.0% to $4.03/lb. Natural gas futures are down 10.0% to $2.83/mmbtu.
The 2-yr note yield is down two basis points to 4.84% and the 10-yr note yield is down six basis points to 3.91%.
In corporate news:
Apple (AAPL 153.12, +2.09, +1.4%): initiated with a Buy at Goldman
Ciena (CIEN 53.85, +4.76, +9.7%): beats by $0.28, beats on revs
Tesla (TSLA 197.94, +0.15, +0.1%): lowered Model S version by 5% to $89,900 and Plaid to $109,990
Norfolk Southern (NSC 225.00, -3.39, -1.5%): Second train derails in Ohio about a month after East Palestine derailment; no hazardous materials were involved, according to NYT
Wendy's (WEN 21.59, -0.34, -1.6%): Trian Fund (Nelson Peltz) sold 3,627,569 shares worth approx. $80.0 mln; downgraded to Neutral from Buy at Northcoast
Biogen (BIIB 271.79, +1.52, +0.6%): and Eisai receives Priority Review for traditional approval of LEQEMBI
Altria (MO 46.55, +0.02, +0.04%): to acquire NJOY Holdings for approximately $2.75 bln in cash payable at closing; call at 9 a.m. ET
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a mostly higher note. Japan's Nikkei: +1.1%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -0.2%, India's Sensex: +0.7%, South Korea's Kospi: +1.2%, Australia's ASX All Ordinaries: +0.6%.
In economic data:
South Korea's February CPI 0.3% m/m (expected 0.5%; last 0.8%); 4.8% yr/yr (expected 5.1%; last 5.2%)
Australia's February MI Inflation Gauge 0.4% m/m (last 0.9%)
In news:
China's Premier Li announced a 2023 growth target of 5.0%, which was on the low end of expectations. Defense spending is expected to increase by 7.2% yr/yr.
China's National Development Reform Commission reportedly inquired about a sharp rise in the price of ore.
The Reserve Bank of Australia is expected to announce a 25-bps rate hike tomorrow.
Major European indices trade in mixed fashion. STOXX Europe 600: -0.2%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.6%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: -0.1%.
In economic data:
Eurozone's January Retail Sales 0.3% m/m (expected 1.0%; last -1.6%); -2.3% yr/yr (expected -1.8%; last -2.8%). March Sentix Investor Confidence -11.1 (expected -6.3; last -8.0)
U.K.'s February Construction PMI 54.6 (expected 49.1; last 48.4)
Spain's February Consumer Confidence 71.6 (last 73.0)
Swiss February CPI 0.7% m/m (expected 0.4%; last 0.6%); 3.4% yr/yr (expected 3.1%; last 3.3%)
In news:
French Finance Minister Le Maire said that his country's government reached an agreement with retailers to limit food inflation and that retailers will take a hit to their margins.
European Central Bank policymaker Rehn hinted at a "fairly significant" rate hike in March while ECB policymaker Centeno said that the central bank is targeting headline inflation rate instead of the core rate.
U.S. equity futures:
S&P 500 Futures: +1 @ 4,047
DJIA Futures: -10 @ 33,381
Nasdaq 100 Futures: +16 @ 12,306
Overseas:
Europe: DAX +0.2%, FTSE -0.6%, CAC +0.2%
Asia: Nikkei +1.1%, Hang Seng +0.2%, Shanghai Composite -0.2%
Commodities:
Crude Oil -1.12 @ 78.56
Nat Gas -0.335 @ 2.674
Gold +2.85 @ 1857.45
Silver +0.029 @ 21.267
Copper-0.0418 @ 4.0252
Earnings/Guidance:
American Homes 4 Rent (AMH) reaffirms FY23 core FFO guidance in investor presentation
Apartment Income REIT Corp. (AIRC) reaffirms pro forma FFO outlook for FY23 in slide presentation ahead of investor conference
ArcBest (ARCB) reports monthly metrics; Feb Billed Revenue/Day was +1% vs prior month
AvalonBay (AVB) reports February operating metrics
Azul S.A. (AZUL) reports Q4 (Dec) results, misses on revs
CECO Environ (CECO) beats by $0.05; beats on revs; raises FY23 outlook
Ciena (CIEN) beats by $0.28, beats on revs
Keros Therapeutics (KROS) provides anticipated 2023 corporate milestones; also reports earnings
LGI Homes (LGIH) announces it closed 506 homes in Feb 2023
Lordstown Motors (RIDE) misses by $0.21, misses on revs
United Micro (UMC) reports February sales declined 18.6% yr/yr to NT$16.93 bln
News:
Fed Chairman Powell to testify this week, according to Bloomberg
Abbott Labs (ABT) reports Late-Breaking Data from Landmark COAPT Trial Show Long-Term Benefits of Abbott's MitraClip Device; reports New Data Show Superiority of Abbott's TriClip Device Compared to Medical Therapy for Tricuspid Regurgitation
Abbott Labs (ABT): FDA has cleared its FreeStyle Libre 2 and FreeStyle Libre 3 integrated continuous glucose monitoring (iCGM) system sensors for integration with automated insulin delivery (AID) systems
Aclaris Therapeutics (ACRS) announces preliminary topline data from 12-week phase 2a study of oral zunsemetinib; study did not meet primary or secondary efficacy endpoints
Air Lease (AL) announced long-term lease placements for three new Airbus (EADSY) A350-900 widebody aircraft with Air France (AFLYY)
Alphabet (GOOG) execs tell employees Bard A.I. is not just about search, according to CNBC
Amarin (AMRN) reports New REDUCE-IT Data at ACC.23/WCC Showing Benefit of VASCEPA/VAZKEPA (Icosapent Ethyl) in High-Risk Patients with a Recent Acute Coronary Syndrome Event
Ameriprise Financial (AMP) and Comerica Bank signed an agreement for Ameriprise to become Comerica's new investment program provider
AstraZeneca (AZN) reports ENHERTU Showed clinically meaningful and durable responses across multiple HER2 expressing tumor types in DESTINY-PanTumor02 Phase 2 Trial
AstraZeneca (AZN) and Daiichi Sankyo's (DSNKY) ENHERTU met prespecified criteria for objective response rate and duration of response
atai Life Sciences (ATAI) Announces Key Clinical Pipeline and Corporate Updates
BAE Systems (BAESY) awarded a $245.6 mln US Army contract for Armored Multi-Purpose Vehicles
Bath & Body Works (BBWI) announces appointment of Thomas J. Kuhn to Board of Directors
Biogen (BIIB) and Eisai receives Priority Review for traditional approval of LEQEMBI
BridgeBio (BBIO) Announces Positive Phase 2 Cohort 5 Results of Infigratinib in Achondroplasia Demonstrating Mean Increase in Annualized Height Velocity of 3.03 cm/year with No Treatment-related Adverse Events
Caterpillar (CAT) will not close more union-represented plants, according to the Wall Street Journal
Cboe Global Markets Reports Trading Volume for February 2023
Community Healthcare Trust Chairman (CHCT) and CEO Timothy Wallace passed away
Construction Partners (ROAD) announced Greg Hoffman will succeed Alan Palmer as Chief Financial Officer, effective following the close of business on March 31, 2023
Cytokinetics (CYTK) Presents Results From Cohort 4 of REDWOOD-HCM and Long-Term Results From FOREST-HCM at the American College of Cardiology 72nd Annual Scientific Session
Enstar Group (ESGR) names Paul Brockman as COO and Matthew Kirk as CFO, effective as of March 1
Esperion Therapeutics (ESPR) reports Landmark CLEAR outcomes study demonstrates NEXLETOL tablet is the only LDL-C lowering therapy since statins to reduce hard ischemic events
Grupo Aeroportuario del Pacifico (PAC) reports February traffic increased 24.3% yr/yr
Hon Hai Precision (HNHPF): iPhone maker Foxconn reported slumping revenue over the weekend citing weaker demand for electronics, according to BBC
IAMGOLD (IAG) appointed Renaud Adams as the Company's President and Chief Executive Officer, effective April 3, 2023
Immuneering (IMRX) Presents Preclinical Data with Lead Program IMM-1-104 Supporting Universal-RAS Activity
Incyte (INCY) to discontinue Phase 3 LIMBER-304 trial following results of a pre-planned interim analysis
Intel (INTC) is canceling its upcoming Rialto Bridge series of data center Max GPUs and moving to a two-year cadence for data center GPU releases - Intel VP Jeff McVeigh
Invitae's (NVTA) PCM Assay for Minimal Residual Disease Receives its First Commercial Coverage
Invivyd (IVVD) announces the election of VYD222 to advance into the clinic as a novel monoclonal antibody therapeutic option for COVID-19
Keurig Dr Pepper (KDP): Mondelez (MDLZ) board designee Michael Call notified the Executive Chairman that he will resign from the Board effective immediately
Lexicon Pharma (LXRX) reports New Analyses of Sotagliflozin Showing Time to Clinical Benefit Presented at The American College of Cardiology's 72nd Annual Scientific Session Together With World Heart Federation's World Congress of Cardiology
Lockheed Martin (LMT) awarded a $214.5 mln US Navy contract for multinational early start engineering efforts
MediWound (MDWD) Expands its Global Leadership Team to Help Drive Company's Future Growth
Merck (MRK) announced the FDA approved the addition of the intramuscular route of administration to the United States Product Insert for Merck's MMRV family of vaccines
Meta Platforms' (META) price cuts on Quest headsets spurred by "disappointing" demand among corporate, mainstream customers, according to Bloomberg
Milestone Pharmaceuticals (MIST) Progresses Clinical and Regulatory Activities for Etripamil in Patients with Paroxysmal Supraventricular Tachycardia
Mineralys Therapeutics (MLYS) Presents Positive Lorundrostat Results from the Phase 2 Target-HTN Trial at ACC.23/WCC
Norfolk Southern (NSC): Second NSC train derails in Ohio about a month after East Palestine derailment; no hazardous materials were involved, according to the New York Times
Ocugen (OCGN) announces the appointment of Quan A. Vu to Chief Financial Officer & Chief Business Officer
Paymentus (PAY) appointed Sanjay Kalra as Senior Vice President and Chief Financial Officer of the Company, effective March 6, 2023
PGT Inc. (PGTI) CFO John Kunz has stepped down, effective Feb 27
Quest Diagnostics (DGX) elects CEO and President James Davis , to serve in the additional position of Chairman of the Board of Directors, effective April 1, 2023
Rallybio (RLYB) announced that clinical proof-of-concept has been achieved in a Phase 1b study for RLYB212, an anti-HPA-1a monoclonal antibody for the prevention of fetal and neonatal alloimmune thrombocytopenia
Roche Hldg (RHHBY) receives FDA approval of label expansion for VENTANA PD-L1
Sallie Mae (SLM) CFO Steven McGarry to retire in Feb 2024; co is conducting an extensive search to identify his successor
South State (SSB) enters into separation and transition agreement with Exec Chairman
Telecom Italia (TIIAY) received from CdP Equity and Macquarie a non-binding offer for the purchase of fixed network infrastructure and Sparkle
Tesla (TSLA) lowered Model S version by 5% to $89,900 and Plaid to $109,990
Tesla (TSLA) aiming to build cars at Mexico plant next year, according to the New York Times
UBS (UBS) cutting bonus pool, according to Bloomberg
Uranium Energy (UEC) intersects additional high-grade uranium mineralization with CB-183-1, at the Christie Lake Project
M&A:
Adaptimmune Therapeutics (ADAP) and TCR Therapeutics (TCRR) announce strategic combination
Altria (MO) to acquire NJOY Holdings for approximately $2.75 bln in cash payable at closing
Commercial Metals (CMC) acquires metal recycling company Roane Metals Group LLC; financial details not disclosed
Credit Suisse (CS): Harris Associates divests stake in Credit Suisse, according to Financial Times
EMX Royalty (EMX) to sell its Rna battery metal project in Norway
Gladstone Commercial (GOOD) entered into an at-the-market equity offering sales agreement on March 3
NGL Energy Partners (NGL) signs agreements to sell marine assets for $111.65 mln
Vistra Energy (VST) announced Energy Harbor (OTC: ENGH) will merge with and into a newly-formed subsidiary of Vistra; increases aggregate share repurchase authorization by $1 billion
Syndicate:
Devon Energy (DVN) files mixed securities shelf offering
DoubleVerify (DV) launches offering of 12.5 mln shares of common stock by Providence VII U.S. Holdings L.P. and Providence Butternut Co-Investment L.P.
ICU Medical (ICUI) files for 2.5 mln share common stock offering by selling shareholder
RingCentral (RNG) files for 1,265,456 share common stock offering by selling shareholders
UnitedHealth (UNH) files mixed securities shelf offering
IPOs:
Arm looking to raise $8 bln in U.S. IPO, according to Reuters
Expected to Price:
Gapping Up/Down
Gapping up:
TCRR +42.1%, SSB +4.1%, SLM +2%, ETNB +1.6%, CYTK +1.3%, GATO +1.3%, BIIB +0.8%, UMC +0.7%, GOOD +0.6%
Gapping down:
ESPR -21.9%, ADAP -15.3%, PGTI -2.7%, RNG -2.1%, MLYS -2%, AVB -1.5%, INCY -1.5%, CBOE -1.1%, WEN -1%, DVN -0.8%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Meritage (MTH) upgraded to Overweight from Neutral at JP Morgan; tgt $129
Vir Biotechnology (VIR) upgraded to Overweight from Neutral at JP Morgan; tgt lowered to $34
Downgrades:
Allbirds (BIRD) downgraded to Neutral from Outperform at Wedbush; tgt $3
KB Home (KBH) downgraded to Underweight from Overweight at JP Morgan; tgt lowered to $32.50
Silvergate Capital (SI) downgraded to Underperform from Neutral at Wedbush; tgt lowered to $4
Wendy's (WEN) downgraded to Neutral from Buy at Northcoast
Others:
Apple (AAPL) initiated with a Buy at Goldman; tgt $199
Upcoming Events:
Econ Data:
10:00 ET: Factory Orders for Jan (Briefing.comConsensus -1.8%; Prior 1.8%)
Earnings:
Monday (Mar 6)
Morning: AZUL CIEN RIDE
Afternoon: AVAV CVGW DOMO GWRE NTNX TCOM WW
Tuesday (Mar 7)
Morning: MASS DKS DOLE SWIM SE MCRB SQSP THO
Afternoon: AGTI ARLO CASY BASE CRCT CRWD SFIX WTI YEXT
Wednesday (Mar 8)
Morning: ABM BF.B CPB IMXI KFY LTH LFST REVG COCO UNFI VERX VRDN
Afternoon: ASAN ESTE EOLS MDB NDLS ONL SMRT SOVO
Thursday (Mar 9)
Morning: BJ GCO HLLY JD PSFE TTC
Afternoon: BIRD AOUT DOCU LOCO GPS HCP HRT AVO ORCL SWBI ULTA MTN WPM ZUMZ
Friday (Mar 10)
Morning: BKE GENI
Asia & Europe detail:
Asia: Nikkei +1.1%, Hang Seng +0.2%, Shanghai Composite -0.2%
Equity indices in the Asia-Pacific region began the week on a mostly higher note. China's Premier Li announced a 2023 growth target of 5.0%, which was on the low end of expectations. Defense spending is expected to increase by 7.2% yr/yr. China's National Development Reform Commission reportedly inquired about a sharp rise in the price of ore. The Reserve Bank of Australia is expected to announce a 25-bps rate hike tomorrow.
In economic data:
South Korea's February CPI 0.3% m/m (expected 0.5%; last 0.8%); 4.8% yr/yr (expected 5.1%; last 5.2%)
Australia's February MI Inflation Gauge 0.4% m/m (last 0.9%)
---Equity Markets---
Japan's Nikkei: +1.1%
Hong Kong's Hang Seng: +0.2%
China's Shanghai Composite: -0.2%
India's Sensex: +0.7%
South Korea's Kospi: +1.2%
Australia's ASX All Ordinaries: +0.6%
---FX---
USD/JPY: +0.2% to 136.15
USD/CNH: +0.7% to 6.9432
USD/INR: +0.3% to 81.88
Europe: DAX +0.2%, FTSE -0.6%, CAC +0.2%
Major European indices trade in mixed fashion. French Finance Minister Le Maire said that his country's government reached an agreement with retailers to limit food inflation and that retailers will take a hit to their margins. European Central Bank policymaker Rehn hinted at a "fairly significant" rate hike in March while ECB policymaker Centeno said that the central bank is targeting headline inflation rate instead of the core rate.
In economic data:
Eurozone's January Retail Sales 0.3% m/m (expected 1.0%; last -1.6%); -2.3% yr/yr (expected -1.8%; last -2.8%). March Sentix Investor Confidence -11.1 (expected -6.3; last -8.0)
U.K.'s February Construction PMI 54.6 (expected 49.1; last 48.4)
Spain's February Consumer Confidence 71.6 (last 73.0)
Swiss February CPI 0.7% m/m (expected 0.4%; last 0.6%); 3.4% yr/yr (expected 3.1%; last 3.3%)
---Equity Markets---
STOXX Europe 600: -0.2%
Germany's DAX: +0.2%
U.K.'s FTSE 100: -0.6%
France's CAC 40: +0.2%
Italy's FTSE MIB: +0.1%
Spain's IBEX 35: -0.1%
---FX---
EUR/USD: +0.1% to 1.0640
GBP/USD: -0.3% to 1.2006
USD/CHF: -0.1% to 0.9346