The S&P 500 futures trade 26 points, or 0.6%, below fair value after WTI crude futures hit $130 per barrel last night. Futures have cut their losses, though, as oil prices for the April contract now trade at $120.42/bbl (+$4.74, +4.1%).
The initial pop in oil was driven by a confirmation from Secretary of State Blinken that there are active talks to potentially ban imports of Russian oil and a report from Reuters indicating that an Iran nuclear deal could be delayed.
Besides the retracement
in oil, which are trading under $100 per barrel for contracts at the end of the year, the futures market has welcomed news that ceasefire talks will continue today in addition to positive-sounding corporate news.
Specifically, Uber (UBER 31.01, +1.18, +4.0%) raised its Q1 Adjusted EBITDA guidance range, Oasis Petroleum (OAS 153.70, +9.21, +6.4%) and Whiting Petroleum (WLL 88.00, +4.57, +5.5%) agreed to a $6.0 billion merger of equals, and Bed Bath & Beyond (BBBY 27.31, +11.13, +68.8%) has popped 70% on news of turnaround interest from Ryan Cohen.
Treasury yields are trading higher, as risk sentiment lightens up. The 2-yr yield is up four basis points to 1.53% after touching 1.42% overnight, and the 10-yr yield is up five basis points to 1.77% after dipping below 1.70% overnight. The U.S. Dollar Index is up 0.3% to 98.91.
Today's economic data will be limited to Consumer Credit for January (Briefing.comconsensus $25.0 billion) at 3:00 p.m. ET.
In U.S. Corporate news:
Bed Bath & Beyond (BBBY 27.31, +11.13): +68.8% on news that Chewy co-founder Ryan Cohen has pushed for changes after acquiring a 9.8% stake in the company, according to The Wall Street Journal.
Occidental Petroleum (OXY 61.23, +5.08): +9.1% amid the higher oil prices and a report from The Wall Street Journal indicating that Carl Icahn has divested his stake in the company.
Uber (UBER 31.01, +1.18): +4.0% after raising its Q1 Adjusted EBITDA expectations to between $130 million and $150 million (from $100 million to $130 million).
Oasis Petroleum (OAS 153.70, +9.21): +6.4% after agreeing to merge with Whiting Petroleum (WLL 88.00, +4.57, +5.5%) in a $6.0 billion merger of equals transaction.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a lower note as sentiment remained pressured by ongoing fighting in Ukraine and rising commodity prices. Japan's Nikkei: -2.9% Hong Kong's Hang Seng: -3.9% China's Shanghai Composite: -2.2% India's Sensex: -2.7% South Korea's Kospi: -2.3% Australia's ASX All Ordinaries: -1.0%.
In economic data:
China's February trade surplus $115.95 bln (expected surplus of $99.50 bln; last surplus of $94.46 bln). February Imports 15.5% yr/yr (expected 16.5%; last 19.5%) and Exports 16.3% yr/yr (expected 15.0%; last 20.9%). February FX Reserves $3.214 trln (expected CNY3.225 trln; last CNY3.222 trln)
Australia's February AIG Services Index 60.0 (last 56.2) and February ANZ Job Advertisements 8.4% m/m (last -0.7%)
In news:
China's National People's Congress set a 5.5% growth target for 2022, its lowest in 30 years.
National Development and Reform Commission vice chair said that reaching the target will require "strenuous effort."
Top Chinese officials are increasing focus on strengthening the domestic supply of food.
Major European indices trade in the red as sentiment remains pressured by fighting in Ukraine and rising commodity prices. STOXX Europe 600: -1.4% Germany's DAX: -1.3% U.K.'s FTSE 100: -0.6% France's CAC 40: -0.9% Italy's FTSE MIB: -0.3% Spain's IBEX 35: -0.6%.
In economic data:
Eurozone's March Sentix Investor Confidence -7.0 (expected 5.3; last 16.6)
Germany's January Factory Orders 1.8% m/m (expected 1.0%; last 3.0%). January Retail Sales 2.0% m/m (expected 1.8%; last -4.6%); 10.3% yr/yr (expected 9.8%; last 0.8%)
U.K.'s February Halifax House Price Index 0.5% m/m (expected 1.0%; last 0.2%); 10.8% yr/yr (last 9.7%)
Swiss February Unemployment Rate 2.2% (expected 2.3%; last 2.3%)
In news:
Heating gas prices in Europe have continued ring to fresh highs while Brent oil has eclipsed $125/bbl.
Another round of case-fire talks is expected to be held today.
Spain's economy minister said that a way to cap energy prices is being studied.
European Commission President von der Leyen said officials are working on more sanctions on Russia.
U.S. equity futures:
S&P 500 Futures: -30 @ 4,299
DJIA Futures: -269 @ 33,351
Nasdaq 100 Futures: -108 @ 13,730
Overseas:
Europe: DAX -1.3%, FTSE -0.6%, CAC -0.9%
Asia: Nikkei -2.9%, Hang Seng -3.9%, Shanghai Composite -2.2%
Commodities:
Crude Oil +5.73 @ 121.41
Nat Gas +0083 @ 5.099
Gold +23.10 @ 1989.70
Silver +0.186 @ 25.975
Copper +0.0495 @ 4.9870
U.S. Summary:
Earnings/Guidance (Full Earnings Calendar):
Alpha Metallurgical Resources (AMR) beats on top and bottom lines
AvalonBay (AVB) provides Q1 operating update
Bluebirdbio (BLUE) misses by $0.38, misses on revs
Ciena (CIEN) beats by $0.02, reports revs in-line
Eagle Pharma (EGRX) reports Q4 results; on track to support submission of new drug application in second quarter of 2022 for Landiolol, a beta-1 adrenergic blocker
EverCommerce (EVCM) now expects Q4 revenue and adjusted EBITDA to be above guidance of $129.5-131 mln ($130 mln estimate) and $27-28 mln, respectively, that was provided on its third quarter earnings call
Huntsman (HUN) sees Q1 adjusted EBITDA at or above previous stated guidance
Plexus (PLXS) reaffirms Q2 GAAP EPS and revenue guidance
Squarespace (SQSP) reports Q4 (Dec) results, revs in-line; guides Q1 revs below consensus; guides FY22 revs below consensus
Uber (UBER) updates Q1 2022 outlook previously provided on the Q4 2021 earnings call - raises Q1 Adjusted EBITDA expectations
Vermilion Energy (VET) reports Q4 results
General News:
Another round of cease-fire talks between Russia and Ukraine expected, according to the Wall Street Journal
Secretary of State Antony Blinken on Sunday confirmed active talks with key allies to potentially ban imports of Russian oil
Nancy Pelosi proposes ban on Russian oil imports and for support Ukraine
Crude oil boosted by speculation about a ban on Russian imports and Iran deal delays, according to Reuters
More sanctions on Russia being considered, according to Bloomberg
UK injects $100 mln into Ukraine's economy; Builds upon recent UK backing of 220 mln overall aid support to Ukraine
Aecom Tech (ACM) is immediately exiting its business operations in Russia; financial contribution to AECOM from its business related to Russia is not material
Afya (AFYA): Bertelsmann explores increasing stake in Afya
Agenus (AGEN) and Targovax ASA announce that they have entered into a clinical collaboration and supply agreement to combine Targovax's TG mutant KRAS cancer vaccines with Agenuss clinically validated and FDA approved QS-21STIMULON adjuvant
American Express (AXP) halts operations in Russia, according to Bloomberg
Americold Realty Trust (COLD) COO Carlos Rodriguez to step down; co eliminates COO position
Applied Materials (AMAT) appoints Brice Hill as CFO
Bed Bath & Beyond Inc. (BBBY) Comments on Letter from RC Ventures
Boeing (BA) and Ethiopian Airlines sign Memorandum of Understanding for five new 777-8 Freighter
Boeing (BA) halts relationship with Russian titanium supplier, according to the Wall Street Journal
Brighthouse Financial (BHF) COO Conor Murphy will be stepping down, effective March 18
Bristol-Myers (BMY) receives FDA approval for Opdivo with chemotherapy as neoadjuvant treatment for certain adult patients with resectable non-small cell lung cancer
Chewy (CHWY) co-founder to push for changes after acquiring stake in Bed Bath & Beyond (BBBY), according to the Wall Street Journal
Danone (DANOY) halts investment in Russia, according to Bloomberg
Electric Last Mile Solutions (ELMS) approves 24% workforce reduction
Facebook (FB) trials payments to creators, according to Business Insider
General Motors (GM) ordered to fix SUV headlights, according to Reuters
Globus Medical (GMED) expands share repurchase authorization by $200 mln in addition to current $95.3 mln remaining under existing program
GOL Linhas Aereas Inteligentes S.A. (GOL) reports Feb metrics; total supply (ASK) increased 35.8%
Harpoon Therapeutics (HARP) announces that the U.S. Food and Drug Administration has granted Orphan Drug Designation for HPN328 for the treatment of small cell lung cancer
HUTCHMED (HCM) receives $15 mln milestone from AstraZeneca (AZN) for initiating start-up activities for a global Phase III study of ORPATHYS
INDUS Realty Trust (INDT) to sell its remaining office/flex buildings and fully exit its legacy investment in office properties
Interface (TILE) appoints Laurel M. Hurd as President and Chief Executive Officer, effective April 18, 2022
Intl Game Tech. PLC (IGT) subsidiaries signed new contract with La Lotera Nacional, Mexico's national lottery, to provide industry-leading lottery solutions and sports betting services until Sept. 30, 2024
Invitation Homes (INVH) enters into a $300 mln joint venture with Rockpoint Group
Iridium Communications' (IRDM) Board authorizes $300 mln share repurchase program
KBR (KBR) announced the General Accounting Office (GAO) decision to uphold the award of the US Transportation Commands Global Household Goods Contract
Kinnate BioPharma (KNTE) announced the presentation of findings from a collaborative study with Tempus investigating the prevalence of Class II and Class III alterations among patients with BRAF-mutated solid tumors
Legend Biotech (LEGN) and Janssen Pharmaceuticals (JNJ) enter into interim product supply agreement
Levi Strauss (LEVI) is temporarily suspending commercial operations in Russia, including any new investments
Lockheed Martin (LMT) wins a $869 mln contract modification to a previously awarded US Navy contract
Mastercard (MA) Statement on Suspension of Russian Operations
Merck (MRK) reports KEYTRUDA demonstrated significant improvement in Distant Metastasis-Free Survival compared to placebo in Phase 3 KEYNOTE-716 Trial
National Health (NHI) reaches MoU with Welltower (WELL) regarding Legacy Holiday Properties
Netflix (NFLX) halts operations in Russia, according to Variety
Novavax (NVAX) expects authorization of COVID vaccine soon, according to the Wall Street Journal
Occidental Petroleum (OXY): Carl Icahn divests Occidental Petroleum stake, according to the Wall Street Journal
OptiNose (OPTN) announced that the ReOpen1 clinical trial met both of its co-primary endpoints
Phillips 66 (PSX): EC clears creation of a joint venture by Phillips 66 and H2 Energy Europe
Repare Therapeutics (RPTX) announces the presentation of monotherapy dose selection and safety data from its Phase 1/2 TRESR clinical trial of RP-3500 at the 2022 ESMO Targeted Anticancer Therapies Congress
Silgan Holdings (SLGN) to repurchase up to an aggregate of $300 mln of its common stcok through December 31, 2026
SunCoke Energy (SXC) appointed Mark W. Marinko as the company's Senior Vice President and Chief Financial Officer, effective March 7, 2022
Sunstone Hotel (SHO) announces certain executive appointments; Bryan Giglia named CEO, among others
Teucrium Wheat (WEAT) may suspend creations in WEAT
Tritium DCFC (DCFC) announces the appointment of Glen Casey as the Company's new Chief Operating Officer
Visa (V) suspends all operations in Russia
Welltower (WELL) provides business update; Welltower and StoryPoint Senior Living announce deepening of strategic partnership
WeWork (WE) issues statement regarding potential equity investment; has "no plans to issue additional equity at this time"
Zymergen (ZY) advances molecules for prominent malaria and COVID-19 drug targets for further testing
M&A:
GoodRx (GDRX) to acquire vitaCare Prescription Services from TherapeuticsMD (TXMD) for $150 mln in cash
Johnson & Johnson (JNJ) looking at acquiring two Chinese biotech names, according to Financial Times
Limelight Networks (LLNW) acquires Yahoo's Edgecast for $300 mln
Pine Technology Acquisition Corp. (PTOC) and The Tomorrow Companies Inc. have agreed to terminate the previously announced agreement and plan of merger due to market conditions and will not complete their previously announced business combination
SPX FLOW (FLOW): EC clears acquisition of SPX Flow by Lone Star
Vectrus (VEC) to merge with Vertex
Whiting Petroleum (WLL) and Oasis (OAS) confirm plans to combine in $6.0 bln merger of equals transaction
Syndicate:
ESS Inc. (GWH) files for 130,044,756 share common stock offering by selling shareholders
Danaos (DAC) files mixed securities shelf offering
Eos Energy (EOSE) files for $300 mln mixed securities shelf offering
First Business Financial (FBIZ) files for $75 mln mixed securities shelf offering
JPMorgan Chase (JPM) files for $150 bln mixed securities shelf offering
NexPoint Real Estate Finance (NREF) files for $500 mln mixed securities shelf offering
Redwood Trust (RWT) files mixed securities shelf offering
Roku (ROKU) files mixed securities shelf offering
TPI Composites (TPIC) files for $200 mln mixed securities shelf offering; also files for 4,666,667 share common stock offering by selling shareholders
Veris Residential (VRE) files for 773,931 share common stock offering by selling shareholders
IPOs:
Expected to Price:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
BBBY +61.7%, WEAT +13.1%, AU +11.3%, WLL+10.8%, VET +8.6%, WE +7.1%, GFI +6.8%, USO+5.6%, OIH +5.2%, VXX +4.8%, GOLD +3.9%, HAL+3.7%, XLE +3.3%, SLB +3%, PSX +2.7%, AUY +2.7%, NEM +2.6%, BHP +2.4%, LMT +2.2%, XOM +2.1%, BP+2.1%, RIO +1.8%, DAC +1.8%, GLD +1.2%, AVB+1.1%, TBT +1%
Gapping down:
SQSP -14.3%, BLUE -11%, TPTX -9.3%, MA -3.2%, GWH -2.8%, V -2.4%, ROKU -2.3%, IWM -1.8%, QQQ-1.5%, SPY -1.4%, DIA -1.4%, RWT -0.8%, TPIC-0.8%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Ball Corp (BLL) upgraded to Buy from Neutral at BofA Securities; tgt raised to $108
Intellia Therapeutics (NTLA) upgraded to Buy from Hold; tgt $91
Lloyds Banking (LYG) upgraded to Neutral from Underperform at BofA Securities
NextEra Energy (NEE) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $87
Nutrien (NTR) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $112
Oil States (OIS) upgraded to Overweight from Neutral at Piper Sandler; tgt $8
Palantir Technologies (PLTR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt lowered to $16
Youdao (DAO) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $15
Downgrades:
Bluebirdbio (BLUE) downgraded to Underweight from Equal Weight at Barclays; tgt $4
Citigroup (C) downgraded to Hold from Buy at Jefferies; tgt lowered to $60
Coherus BioSciences (CHRS) downgraded to Neutral from Overweight at JP Morgan; tgt $15
Empire State Realty Trust (ESRT) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt lowered to $8
Mosaic (MOS) downgraded to Hold from Buy at HSBC Securities; tgt $57
Philip Morris International (PM) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $110
Others:
NVIDIA (NVDA) resumed with a Neutral at Goldman; tgt $245
Paramount Group (PGRE) added to 'Tactical Underperform' list at Evercore ISI; tgt $11
Portage Biotech (PRTG) initiated with a Buy at H.C. Wainwright; tgt $32
Upcoming Events:
Econ Data:
15:00 ET: Consumer Credit for Jan. (Briefing.comConsensus $25.0B; Prior $18.9B)
Earnings:
Monday (Mar 7)
Morning: CIEN SQSP
Afternoon: MASS AVDX ROVR TDUP
Tuesday (Mar 8)
Morning: DM DKS OLPX WOOF STVN
Afternoon: ABM BMBL CASY CRCT DV FIGS GWRE MDB SFIX SUMO WTI YEXT
Wednesday (Mar 9)
Morning: CPB DSEY EBIX KFY OTLY REVG PLCE THO UNFI VRA VERX
Afternoon: ASAN CVGW BASE CRWD FNV BEKE MQ
Thursday (Mar 10)
Morning: BZUN CLVT DCBO AG GCO JD LTH PTLO THRY UP
Afternoon: AOUT BLNK CMTL DOCU LOCO LZ LFST MLNK AVO FIZZ ORCL RRGB RIVN SHLS ULTA WPM ZUMZ
Friday (Mar 11)
Morning: GENI PLXP
Afternoon: BLDP
Asia & Europe detail:
Asia: Nikkei -2.9%, Hang Seng -3.9%, Shanghai Composite -2.2%
Equity indices in the Asia-Pacific region began the week on a lower note as sentiment remained pressured by ongoing fighting in Ukraine and rising commodity prices. China's National People's Congress set a 5.5% growth target for 2022, its lowest in 30 years. National Development and Reform Commission vice chair said that reaching the target will require "strenuous effort." Top Chinese officials are increasing focus on strengthening the domestic supply of food.
In economic data:
China's February trade surplus $115.95 bln (expected surplus of $99.50 bln; last surplus of $94.46 bln). February Imports 15.5% yr/yr (expected 16.5%; last 19.5%) and Exports 16.3% yr/yr (expected 15.0%; last 20.9%). February FX Reserves $3.214 trln (expected CNY3.225 trln; last CNY3.222 trln)
Australia's February AIG Services Index 60.0 (last 56.2) and February ANZ Job Advertisements 8.4% m/m (last -0.7%)
---Equity Markets---
Japan's Nikkei: -2.9%
Hong Kong's Hang Seng: -3.9%
China's Shanghai Composite: -2.2%
India's Sensex: -2.7%
South Korea's Kospi: -2.3%
Australia's ASX All Ordinaries: -1.0%
---FX---
USD/JPY: +0.3% to 115.17
USD/CNH: UNCH at 6.3219
USD/INR: +0.9% to 77.01
Europe: DAX -1.3%, FTSE -0.6%, CAC -0.9%
Major European indices trade in the red as sentiment remains pressured by fighting in Ukraine and rising commodity prices. Heating gas prices in Europe have continued ring to fresh highs while Brent oil has eclipsed $125/bbl. Another round of case-fire talks is expected to be held today. Spain's economy minister said that a way to cap energy prices is being studied. European Commission President von der Leyen said officials are working on more sanctions on Russia.
In economic data:
Eurozone's March Sentix Investor Confidence -7.0 (expected 5.3; last 16.6)
Germany's January Factory Orders 1.8% m/m (expected 1.0%; last 3.0%). January Retail Sales 2.0% m/m (expected 1.8%; last -4.6%); 10.3% yr/yr (expected 9.8%; last 0.8%)
U.K.'s February Halifax House Price Index 0.5% m/m (expected 1.0%; last 0.2%); 10.8% yr/yr (last 9.7%)
Swiss February Unemployment Rate 2.2% (expected 2.3%; last 2.3%)
---Equity Markets---
STOXX Europe 600: -1.4%
Germany's DAX: -1.3%
U.K.'s FTSE 100: -0.6%
France's CAC 40: -0.9%
Italy's FTSE MIB: -0.3%
Spain's IBEX 35: -0.6%
---FX---
EUR/USD: -0.4% to 1.0877
GBP/USD: -0.2% to 1.3200
USD/CHF: +0.9% to 0.9246