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07/02/23 Briefing

The S&P 500 futures are up 2 points and are trading roughly in line with fair value. The Nasdaq 100 futures are up 36 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are down 47 points and are trading 0.1% below fair value.

The equity futures market is mixed as investors await Fed Chair Powell's "Conversation with David Rubinstein" before the Economic Club of Washington D.C. at 12:40 p.m. ET. On a related note, Minneapolis Federal Reserve President Neel Kashkari (FOMC voter) said on CNBC "Central banks have not made enough progress" and reaffirmed his Fed funds rate target of 5.4% following the surprising January jobs report.

Investors continue to deal with a nagging sense that the Fed will raise rates more than expected and keep them there for longer than expected.

Overseas, the Reserve Bank of Australia increased its cash rate by 25 bps to 3.35%, as expected, and noted that additional increases will be needed in the coming months.

President Biden will deliver the State of the Union Address tonight at 9:00 p.m. ET.

The 2-yr Treasury note yield is down four basis points to 4.42% and the 10-yr note yield is flat at 3.63%.

Market participants will receive the December Trade Balance Report at 8:30 a.m. ET (Briefing.com consensus -$68.5B; prior -$61.5B) and the December Consumer Credit Report at 3:00 p.m. ET (Briefing.com consensus $24.5B; prior $27.9 bln).

In corporate news:

  • BP 0.88% (BP 36.35, +1.51, +4.3%): misses by $0.01, beats on revs; raises dividend

  • Oak Street Health (OSH 35.43, +9.47, +36.5%): CVS (CVS) nearing deal to acquire the company for $10.5 bln, according to WSJ

  • Chegg (CHGG 16.10, -4.93, -23.4%): beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus

  • DuPont (DD 70.96, -1.40, -1.9%): beats by $0.11, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line; increases Q1 dividend by 9% to $0.36/share

  • Pinterest (PINS 27.53, -0.36, -1.3%): beats by $0.01, misses on revs; expects Q1 revs to grow low single digits percentage yr/yr vs consensus of +7.5%; authorizes repurchases up to $500 mln over next 12 months; CFO stepping down, effective July 1

  • Skyworks (SWKS 112.75, +3.47, +3.2%): misses by $0.01, reports revs in-line; guides MarQ EPS below consensus, revs below consensus; approves $2.0 bln for share repurchases; authorizes $2.0 bln for share repurchases through February 1, 2025

  • Baidu (BIDU 161.77, +18.95, +13.3%): aiming to introduce service similar to ChatGPT in March, according to Bloomberg

  • Bed Bath & Beyond (BBBY 4.06, -1.80, -30.7%): proposes underwritten public offering of Series A convertible preferred stock and warrants to raise approximately $1.0 billion

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: +0.3%, India's Sensex: -0.4%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: -0.4%.

  • In economic data:

  • Japan's December Household Spending -2.1% m/m (expected 0.3%; last -0.9%); -1.3% yr/yr (expected -0.2%; last -1.2%). December Average Cash Earnings 4.8% yr/yr (expected 2.5%; last 1.9%). December Leading Index -0.5% m/m (last -1.2%) and Coincident Indicator -0.4% m/m (last -0.3%)

  • Australia's December trade surplus AUD12.24 bln (expected surplus of AUD12.50 bln; last surplus of AUD13.48 bln). December Imports 1.0% m/m (last -3.1%) and Exports -1.0% m/m (last -1.0%)


  • In news:

  • Nominations for the next Bank of Japan governor will be submitted to the Japanese parliament next week.

  • Japan saw its first year-over-year increase in real cash earnings since March.

  • Bank of Korea policymaker Suh said that the Korean economy can withstand interest rate differentials with the U.S.

  • The Reserve Bank of Australia increased its cash rate by 25 bps to 3.35%, as expected, and noted that additional increases will be needed in the coming months.



  • Major European indices trade on a mostly higher note. STOXX Europe 600: +0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +0.4%.

  • In economic data:

  • Germany's December Industrial Production -3.1% m/m (expected -0.7%; last 0.4%)

  • U.K.'s January Halifax House Price Index 0.0% m/m (expected -0.8%; last -1.3%); 1.9% yr/yr (expected -0.3%; last 2.1%)

  • France's December trade deficit EUR14.90 bln (expected deficit of EUR12.20 bln; last deficit of EUR13.60 bln). December Current Account deficit EUR8.50 bln (last deficit of EUR6.70 bln)

  • Spain's December Industrial Production 0.6% yr/yr (expected -0.6%; last -0.7%)

  • Swiss January Unemployment Rate 1.9%, as expected (last 1.9%)


  • In news:

  • British Prime Minister Sunak will reportedly announce a small reshuffle of his cabinet soon.

  • Energy giant BP reported that its profit doubled in 2022, boosted its quarterly dividend, and announced a new buyback.

  • The European Central Bank's latest survey on inflation expectations among consumers continued pointing to expectations for 5.0% inflation over the next year. The inflation outlook for a three-year period increased to 3.0% from 2.9%.



U.S. equity futures:

  • S&P 500 Futures: +3 @ 4,114

  • DJIA Futures: -53 @ 33,837

  • Nasdaq 100 Futures: +39 @ 12,504

Overseas:

  • Europe: DAX -0.1%, FTSE +0.6%, CAC +0.1%

  • Asia: Nikkei UNCH, Hang Seng +0.4%, Shanghai Composite +0.3%

Commodities:

  • Crude Oil +1.23 @ 75.34

  • Nat Gas +0.014 @ 2.471

  • Gold +3.70 @ 1883.20

  • Silver +0.048 @ 22.285

  • Copper -0.0060 @ 4.029

Earnings/Guidance:

  • Activision Blizzard ( ATVI 4.86% ) reports Q4 results, beats on net bookings; Note: co previously agreed to be acquired by MSFT

  • Adient ( ADNT 1.10% ) misses by $0.02, beats on revs; guides FY23 revs above consensus

  • Aecom Tech ( ACM 0.68% ) beats by $0.04, reports revs in-line; reaffirms FY23 EPS guidance

  • AGCO Corp ( AGCO 2.12% ) beats by $0.40, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Alpha and Omega Semi ( AOSL 3.04% ) misses by $0.21, misses on revs; guides MarQ revs below consensus

  • Aramark ( ARMK 0.23% ) beats by $0.01, beats on revs

  • Ares Capital ( ARCC 0.46% ) beats by $0.07, beats on revs

  • Arrowhead ( ARWR 8.79% ) reports Q1 (Dec) results, misses on revs

  • BellRing Brands ( BRBR 0.17% ) beats by $0.05, beats on revs; reaffirms FY23 revs guidance, raises adj. EBITDA guidance

  • Blink Charging ( BLNK 1.39% ) issues upside Q4 revenue guidance, sees adjusted EBITDA of ($18)-($15) mln

  • BP ( BP 0.88% ) misses by $0.01, beats on revs; raises dividend

  • BrightView ( BV 0.71% ) beats by $0.08, beats on revs

  • Canada Goose ( GOOS 1.87% ) provides long term guidance

  • Carlyle Group ( CG 2.91% ) beats by $0.05, beats on revs; raises dividend

  • Carrier Global ( CARR 1.58% ) reports EPS in-line, revs in-line; guides FY23 EPS in-line, revs above consensus

  • Catalent ( CTLT 19.54% ) misses by $0.02, beats on revs; reiterates FY23 revs in-line

  • Centene ( CNC 0.00% ) beats by $0.02, reports revs in-line; reaffirms FY23 EPS guidance

  • Chegg ( CHGG 1.45% ) beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus

  • Cincinnati Fincl ( CINF 0.15% ) misses by $0.01, reports revs in-line, provides forward-looking commentary

  • Deciphera Pharmaceuticals ( DCPH 1.88% ) misses by $0.04, beats on revs

  • Diodes ( DIOD 2.69% ) beats by $0.09, reports revs in-line; guides Q1 revs in-line

  • DuPont ( DD 0.85% ) beats by $0.11, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line

  • Fabrinet ( FN 0.77% ) beats by $0.03, beats on revs; guides Q3 EPS above consensus, revs in-line

  • Fiserv ( FISV 0.19% ) reports EPS in-line, beats on revs; guides FY23 EPS in-line, but mid-point above consensus

  • Gartner ( IT 0.30% ) beats by $1.12, beats on revs

  • Graphic Packaging ( GPK 0.00% ) beats by $0.01, beats on revs

  • Haemonetics ( HAE 0.72% ) beats by $0.03, beats on revs; guides FY23 EPS in-line, revs above consensus

  • Hain Celestial ( HAIN 2.04% ) beats by $0.07, misses on revs; reaffirms FY23 guidance for adjusted net sales and adjusted EBITDA on a constant currency basis of -1% to +4%

  • Hamilton Lane ( HLNE 1.58% ) misses by $0.38, beats on revs

  • Hertz Global ( HTZ 2.64% ) beats by $0.02, misses on revs

  • Holley Inc. ( HLLY 1.72% ) guides Q4 revs below consensus; CEO Tom Tomlinson to retire and resign from Board; appoints interim CEO

  • Jacobs Engineering ( J 0.50% ) beats by $0.06, beats on revs; reiterates FY23 EPS in-line

  • Incyte ( INCY 0.90% ) beats by $0.05, beats on revs

  • Kennametal ( KMT 2.15% ) beats by $0.05, beats on revs; guides Q3 revs above consensus; guides FY23 EPS in-line, revs above consensus

  • Kforce ( KFRC 1.42% ) beats by $0.01, reports revs in-line; guides Q1 EPS in-line, revs below consensus; also increases quarterly dividend by 20%; increases share buyback auth to $100 mln

  • KKR ( KKR 1.98% ) beats by $0.07, AUM up 7%, to increase regular annualized dividend per share to $0.66 from $0.62

  • Leggett & Platt ( LEG 3.38% ) misses by $0.09, misses on revs; guides FY23 EPS below consensus, revs in-line

  • Linde plc ( LIN 0.23% ) beats by $0.27, misses on revs; guides Q1 EPS above consensus; guides FY23 EPS above consensus

  • Macerich ( MAC 1.36% ) beats by $0.01, reports revs in-line; guides FY23 FFO in-line

  • Malibu Boats ( MBUU 2.01% ) beats by $0.17, beats on revs; reaffirms FY23 revenue outlook

  • MSG Sports ( MSGS 0.20% ) reports Q2 (Dec) results, beats on revs

  • Nintendo ( NTDOY ) reports nine-month results; revs decline 2% yr/yr

  • NOV Inc. ( NOV 0.43% ) beats by $0.02, beats on revs

  • nVent Electric ( NVT 0.47% ) beats by $0.08, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs below consensus

  • Oaktree Specialty Lending Corp ( OCSL 0.39% ) reports EPS in-line

  • OneMain Holdings ( OMF 3.25% ) beats by $0.05, reports revs in-line; raises dividend

  • Pinterest ( PINS 1.49% ) beats by $0.01, misses on revs; expects Q1 revs to grow low single digits percentage yr/yr vs consensus of +7.5%; authorizes repurchases up to $500 mln over next 12 months; CFO stepping down, effective July 1

  • Power Integrations ( POWI 1.74% ) beats by $0.02, reports revs in-line; guides Q1 revs below consensus

  • Premier ( PINC 2.43% ) beats by $0.06, reports revs in-line; lowers FY23 EPS in-line, reaffirms FY23 revs guidance

  • Rambus ( RMBS 1.15% ) reports Q4 (Dec) results, misses on revs

  • Sasol ( SSL 0.23% ) provides H1 guidance update

  • Simon Properties ( SPG 0.90% ) beats by $0.02, beats on revs; guides FY23 comparable FFO below consensus

  • Simpson Manufacturing ( SSD 4.66% ) beats by $0.33, reports revs in-line

  • Skyline Champion ( SKY 3.18% ) beats by $0.52, beats on revs

  • Skyworks ( SWKS 2.84% ) misses by $0.01, reports revs in-line; guides MarQ EPS below consensus, revs below consensus; approves $2.0 bln for share repurchases

  • Spirit Aerosystems ( SPR 0.35% ) misses by $1.22, misses on revs

  • Spirit Airlines ( SAVE 0.71% ) beats by $0.09, reports revs in-line; provides guidance

  • Take-Two ( TTWO 3.40% ) misses by $0.07, misses on top line; guides FY23 EPS and net bookings below consensus

  • TFI International ( TFII 2.20% ) misses by $0.01, misses on revs

  • Transdigm Group ( TDG 0.96% ) beats by $0.28, beats on revs; guides FY23 EPS in-line, revs in-line

  • UDR ( UDR 1.59% ) reports FFO in-line, revs in-line; guides Q1 FFO in-line; guides FY23 FFO in-line

  • Valvoline ( VVV 0.22% ) misses by $0.06, reports revs in-line; reaffirms FY23 revs guidance

  • Varonis Systems ( VRNS 0.72% ) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs in-line; guides FY23 EPS above consensus, revs in-line

  • Velo3D ( VLD 2.71% ) guides Q4 revs above consensus

  • Xylem ( XYL 1.14% ) beats by $0.13, beats on revs; guides FY23 EPS in-line, revs above consensus

  • ZoomInfo ( ZI 1.20% ) beats by $0.04, reports revs in-line; guides Q1 EPS in-line, revs below consensus; guides FY23 EPS in-line, revs below consensus

News:

  • Ukraine says Russia is planning major offensive, according to the Wall Street Journal

  • House Speaker Kevin McCarthy wants elimination of deficit in talks with President Biden over debt limit. White House wants clean debt ceiling increase, according to the Wall Street Journal

  • Minneapolis Fed President Neel Kashkari (voting FOMC member) CNBC interview: Central banks have not made enough progress; he reaffirms his Fed funds rate target of 5.4%

  • More than half of new U.S. electric-generating capacity in 2023 will be solar

  • Legal cannabis industry could get more regulation amid concerns about potential health impacts, according to Politico

  • Aldeyra Therapeutics ( ALDX 0.16% ) announces that the U.S. FDA has accepted the New Drug Application for topical ocular reproxalap for the treatment of the signs and symptoms of dry eye disease

  • AstraZeneca ( AZN 0.13% ) receives EU approval for Forxiga

  • Baidu ( BIDU 0.17% ) aiming to introduce service similar to ChatGPT in March, according to Bloomberg

  • Blackrock ( BLK 1.95% ): Largest pension fund in Texas divests from Blackrock, according to Bloomberg

  • Curtiss-Wright ( CW 0.37% ) has been awarded a ten-year, $287 mln firm-fixed-price indefinite delivery, indefinite quantity contract by Edwards Air Force Base - Air Force Test Center

  • Frontline ( FRO 4.80% ): Emergency Arbitration claims filed by Euronav have been fully dismissed by the Emergency Arbitrator

  • Genworth Financial ( GNW 1.04% ) to separate the roles of CFO and CIO in early March; Jerome Upton will be appointed EVP and CFO, and Kelly Saltzgaber will be appointed EVP and CIO

  • Globalstar ( GSAT 2.21% ) entered into a Second Forbearance Agreement with Macdonald Dettwiler and Rocket Lab (RKLB)

  • GOL Linhas Aereas Inteligentes S.A. ( GOL 2.31% ) reports January traffic metrics

  • InterDigital ( IDCC 2.03% ) increases price range for tender offer to repurchase up to $200 mln of its common stock

  • Lithium Americas ( LAC 3.54% ): Nevada District Court rules in favor of LAC in suit brought by the Bureau of Land Management

  • Meta Platforms ( META 0.25% ): FTC will not appeal court ruling rejecting its attempt to block Within acquisition, according to Gizmodo

  • Meta ( META 0.25% ) aiming to revamp Horizon Worlds metaverse application, according to the Wall Street Journal

  • New York Times ( NYT 0.82% ) expanding its multi-year commercial agreement with Google (GOOG), according to the New York Times

  • Northern Oil & Gas ( NOG 2.35% ) increases quarterly cash dividend 13% to $0.34/share from $0.30/share

  • PGT Inc. ( PGTI 0.09% ) announces $250 mln share repurchase program

  • Roche Hldg's ( RHHBY ) unit Genentech reports data from global Phase III program for Crovalimab in PNH

  • Rocket Pharmaceuticals ( RCKT 0.88% ): FDA grants Regenerative Medicine Advanced Therapy (RMAT) designation to RP-A501, the company's treatment of Danon Disease

  • Rogers Corp ( ROG 1.54% ): Starboard Value LP discloses 6.5% stake in company per 13D filing

  • Skyworks ( SWKS 2.84% ) authorizes $2.0 bln for share repurchases through February 1, 2025

  • Virgin Mobile USA ( VM ) increases quarterly cash dividend 7.7% to $0.70/share from $0.65/share

  • YETI Holdings ( YETI 2.84% ) identifies potneital safety concern regarding a few of its products

M&A:

  • Apollo ( APO 1.72% ) in discussions to take a stake in Credit Suisse (CS) investment bank unit, according to the Wall Street Journal

  • CVS ( CVS 0.61% ) nearing deal to acquire Oak Street Health (OSH) for $10.5 bln, according to the Wall Street Journal

  • Hut 8 Mining ( HUT 7.69% ) and U.S. Data Mining Group announce business combination via merger of equals

  • Lantheus Holdings ( LNTH 1.28% ) acquires Knoxville-based Cerveau Technologies; financial terms were not disclosed

  • MSG Entertainment ( MSGE 1.22% ) exploring potential sale of its majority interest in Tao Group Hospitality

Syndicate:

  • 23andMe ( ME 3.35% ) files for $500 mln mixed securities shelf offering

  • Bed Bath & Beyond ( BBBY 92.13% ) proposes underwritten public offering of Series A convertible preferred stock and warrants

  • Blink Charging ( BLNK 1.39% ) prices upsized offering of 8,333,333 shares at $12/share

  • Collegium Pharmaceutical ( COLL 2.94% ) intends to offer $175 mln aggregate principal amount of convertible senior notes due 2029 in a private offering

  • CureVac ( CVAC 4.34% ) intends to offer $200 mln of its common shares in an underwritten public offering

  • Jacobs Engineering ( J 0.50% ) files mixed securities shelf offering

IPOs:

  • Expected to Price:

  • Enlight Renewable Energy (Nasdaq: ENLT): The developer of a renewable energy platform for solar energy, wind power and energy storage is expected to price its 14.0 mln share IPO at about $21.

  • Hesai Group (Nasdaq: HSAI): The global leader in three-dimensional light detection and ranging (LiDAR) solutions is expected to price its 9.0 M share IPO between $17-$19.

  • Mineralys Therapeutics (Nasdaq: MLYS): The clinical-stage biopharmaceutical company focused on developing medicines to target diseases driven by abnormally elevated aldosterone is expected to price its 10.0 M share IPO between $14-$16.

  • Nextracker (Nasdaq: NXT): The provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects is expected to price its 23.3 M share IPO between $20-$23.


Gapping Up/Down

  • Gapping up:

  • VLD +5.9%, SKY +5%, BP +4.6%, ME +3.1%, KMT +3.1%, VRNS +2.9%, ATVI +2.3%, SWKS +2.1%, MSGE +2%, IDCC +2%, GNW +1.9%, ROG +1.8%, NOV +1.8%, NOV +1.8%, SAVE +1.6%, IT +1.2%, TTWO +1%, CG +1%, SSD +0.9%, KFRC +0.9%, CW +0.7%, UDR +0.7%


  • Gapping down:

  • BBBY -31.1%, CHGG -23.3%, HLLY -19.6%, COLL -15.6%, AOSL -13.1%, ZI -11.6%, RMBS -8.1%, SSL -7%, BLNK -6.9%, BLNK -6.9%, CVAC -5.5%, DD -4.5%, J -3.9%, PINS -3%, FN -1.7%, YETI -1.6%, CNC -1.4%, BRBR -0.8%, BRBR -0.8%, CINF -0.7%



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

  • Upgrades

  • Cipher Mining (CIFR) upgraded to Buy from Neutral at H.C. Wainwright; tgt raised to $3

  • Kemper (KMPR) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $80

  • Lockheed Martin (LMT) upgraded to Outperform from Underperform at Credit Suisse; tgt raised to $510

  • Pfizer (PFE) upgraded to Outperform from Neutral at Daiwa Securities; tgt $51

  • Snam SPA (SNMRY) upgraded to Outperform from Underperform at RBC Capital Mkts

  • Terna Rete Elettrica (TERRF) upgraded to Sector Perform from Underperform at RBC Capital Mkts

  • Wartsila (WRTBY) upgraded to Buy from Neutral at Citigroup


  • Downgrades:

  • Adecoagro S.A. (AGRO) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9

  • Airbus (EADSY) downgraded to Sell from Hold at Berenberg

  • BigCommerce (BIGC) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $12

  • Brookfield Business Partners (BBU) downgraded to Seel from Reduce at Veritas; tgt $18

  • Chegg (CHGG) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

  • Ericsson (ERIC) downgraded to Mkt Perform from Outperform at Raymond James

  • Holley Inc. (HLLY) downgraded to Market Perform from Outperform at Telsey Advisory Group; tgt $3

  • PennyMac Mortgage (PMT) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $15

  • Plains All American (PAA) downgraded to Mkt Perform from Outperform at Bernstein

  • Silk Road Medical (SILK) downgraded to Peer Perform from Outperform at Wolfe Research

  • SJW (SJW) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $84

  • Spire (SR) downgraded to Hold from Buy at Stifel; tgt raised to $75

  • Sweetgreen (SG) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $12

  • The Children's Place (PLCE) downgraded to Market Perform from Outperform at Telsey Advisory Group; tgt $46

  • Tyson Foods (TSN) downgraded to Neutral from Buy at Goldman; tgt lowered to $66

  • ZoomInfo (ZI) downgraded to Neutral from Buy at UBS; tgt lowered to $33


  • Others:

  • 908 Devices (MASS) initiated with an Overweight at Stephens; tgt $14

  • Akamai Tech (AKAM) initiated with a Hold at Loop Capital; tgt $91

  • Allbirds (BIRD) initiated with a Neutral at BTIG Research

  • Boot Barn Holdings (BOOT) initiated with a Buy at BTIG Research; tgt $110

  • Cloudflare (NET) initiated with a Hold at Loop Capital; tgt $52

  • Deckers Outdoor (DECK) assumed with a Buy at BTIG Research; tgt $515

  • Duluth Trading Co (DLTH) initiated with a Neutral at BTIG Research

  • Foot Locker (FL) initiated with a Buy at BTIG Research; tgt $55

  • Fortinet (FTNT) initiated with a Buy at Loop Capital; tgt $66

  • Lulu's Fashion Lounge (LVLU) initiated with a Buy at BTIG Research; tgt $5

  • Revolve Group (RVLV) assumed with a Buy at BTIG Research; tgt $35

  • Rocky Brands (RCKY) initiated with a Neutral at BTIG Research

  • Skyward Specialty Insurance Group (SKWD) initiated with a Buy at Truist; tgt $26

  • Skyward Specialty Insurance Group (SKWD) initiated with a Mkt Outperform at JMP Securities; tgt $25

  • Skyward Specialty Insurance Group (SKWD) initiated with an Outperform at Keefe Bruyette; tgt $24

  • Skyward Specialty Insurance Group (SKWD) initiated with an Overweight at Piper Sandler; tgt $23

  • V.F. Corp (VFC) assumed with a Neutral at BTIG Research

  • Warby Parker (WRBY) initiated with a Neutral at BTIG Research


Upcoming Events:

  • Econ Data:

  • 08:30 ET: Trade Balance for Dec (Briefing.com Consensus -$68.5B; Prior -$61.5B)

  • 15:00 ET: Consumer Credit for Dec (Briefing.com Consensus $24.5B; Prior $27.9B)


  • Earnings:

  • Monday (Feb 6)

  • Morning: AMG CNA CMI ENR IDXX NBIX ON TKR TSN

  • Afternoon: ATVI ACM AOSL BRBR CHGG CINF DIOD FN KMT KFRC LEG NOV PINS POWI RMBS SPG SSD SKY SWKS SAVE TTWO UDR VRNS ZI


  • Tuesday (Feb 7)

  • Morning: ADNT AGCO ARMK ARCC BP BV CG CARR CTLT CNC CTS DCPH DD FISV IT GPK HAE HAIN HLNE HTZ INCY J KKR LIN MAC MBUU MSGS NVT OMF PINC RCL SCSC SPR TDG VVV XYL

  • Afternoon: AMCR AIZ ATO BKH CSL CMG CNO CCK DEI EGP EHC ENPH ESS EEFT EXEL FMC FTNT FRSH HRB PEAK HIW HMN ICHR ILMN INSP JKHY RAMP LUMN MODN NCR NEWR OMC PAYC PRU QGEN RRR RXO SIMO SSNC TENB VFC VRTX VSAT VOYA WERN WU YUMC ZWS


  • Wednesday (Feb 8)

  • Morning: BDC BXMT BG CPRI CDW CRNC CME COHR COTY CRTO CVS D ETN EPC EMR FOXA GPRE INGR NYT PAG PFGC PERI RDWR REYN RITM SITC TRMB UBER VSH YUM

  • Afternoon: ME AEIS AFRM AB NLY APP ASGN AVB ACLS AZEK CDAY CXW DHT APPS ENS NVST EFX EQH EQC ESE RE FRT FR FLT FLNC FORM FWRD ULCC GT HI HPP PI IFF FROG LNC MAT MMS MGM MC MOH MPWR ORLY PTEN PYCR PDM PPC PAA QNST RDN RPD REXR HOOD SON SONO STE STC SLF THC TTMI TWO DIS WTS XPO


  • Thursday (Feb 9)

  • Morning: ABBV APO MT ARES AZN BAX BWA BRKR CCJ CGC CSII CIGI CYBR DBD DUK ESMT FAF GTES HLT HIMX HII NSIT NSP IPG ITT K KIM LITE MAS MDU MSGE NNN PATK PEP PM PDS RL SPGI SEE SSTK SWI TPR TTGT TU TPX TRI WMG WEX WTW

  • Afternoon: AYX BE BHF CBT CC NET ROAD OFC CRSR COUR CUZ DXCM DOCS EQR EXPE FLO G KN LGF.A LYFT MTD MHK MSI NWSA ONTO PYPL PECO PRO QLYS RBC REG SPSC STEP TEX MODG VTR VRSN YELL YELP


  • Friday (Feb 10)

  • Morning: ENB ESNT FTS GPN IQV MGA COOP NWL PRLB SXT SPB SLVM WPC



Asia & Europe detail:

Asia: Nikkei UNCH, Hang Seng +0.4%, Shanghai Composite +0.3%

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Nominations for the next Bank of Japan governor will be submitted to the Japanese parliament next week. Japan saw its first year-over-year increase in real cash earnings since March. Bank of Korea policymaker Suh said that the Korean economy can withstand interest rate differentials with the U.S. The Reserve Bank of Australia increased its cash rate by 25 bps to 3.35%, as expected, and noted that additional increases will be needed in the coming months.

  • In economic data:

  • Japan's December Household Spending -2.1% m/m (expected 0.3%; last -0.9%); -1.3% yr/yr (expected -0.2%; last -1.2%). December Average Cash Earnings 4.8% yr/yr (expected 2.5%; last 1.9%). December Leading Index -0.5% m/m (last -1.2%) and Coincident Indicator -0.4% m/m (last -0.3%)

  • Australia's December trade surplus AUD12.24 bln (expected surplus of AUD12.50 bln; last surplus of AUD13.48 bln). December Imports 1.0% m/m (last -3.1%) and Exports -1.0% m/m (last -1.0%)


---Equity Markets---

  • Japan's Nikkei: UNCH

  • Hong Kong's Hang Seng: +0.4%

  • China's Shanghai Composite: +0.3%

  • India's Sensex: -0.4%

  • South Korea's Kospi: +0.6%

  • Australia's ASX All Ordinaries: -0.4%

---FX---

  • USD/JPY: -0.4% to 132.13

  • USD/CNH: -0.1% to 6.7958

  • USD/INR: UNCH at 82.70

Europe: DAX -0.1%, FTSE +0.6%, CAC +0.1%

Major European indices trade on a mostly higher note. British Prime Minister Sunak will reportedly announce a small reshuffle of his cabinet soon. Energy giant BP reported that its profit doubled in 2022, boosted its quarterly dividend, and announced a new buyback. The European Central Bank's latest survey on inflation expectations among consumers continued pointing to expectations for 5.0% inflation over the next year. The inflation outlook for a three-year period increased to 3.0% from 2.9%.

  • In economic data:

  • Germany's December Industrial Production -3.1% m/m (expected -0.7%; last 0.4%)

  • U.K.'s January Halifax House Price Index 0.0% m/m (expected -0.8%; last -1.3%); 1.9% yr/yr (expected -0.3%; last 2.1%)

  • France's December trade deficit EUR14.90 bln (expected deficit of EUR12.20 bln; last deficit of EUR13.60 bln). December Current Account deficit EUR8.50 bln (last deficit of EUR6.70 bln)

  • Spain's December Industrial Production 0.6% yr/yr (expected -0.6%; last -0.7%)

  • Swiss January Unemployment Rate 1.9%, as expected (last 1.9%)


---Equity Markets---

  • STOXX Europe 600: +0.1%

  • Germany's DAX: -0.1%

  • U.K.'s FTSE 100: +0.6%

  • France's CAC 40: +0.1%

  • Italy's FTSE MIB: +0.6%

  • Spain's IBEX 35: +0.4%

---FX---

  • EUR/USD: -0.2% to 1.0705

  • GBP/USD: -0.3% to 1.1978

  • USD/CHF: -0.2% to 0.9263


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