The S&P 500 futures are up 5 points and are trading 0.1% above fair value. The Nasdaq 100 futures are up 26 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are up 9 points and are trading 0.1% above fair value.
Equity futures are mixed and little changed ahead of Fed Chair Powell's semiannual monetary policy testimony before the Senate Banking Committee at 10:00 a.m. ET. A move lower in Treasury yields has been mildly supportive of the equity futures market this morning. The 2-yr note yield is down three basis points to 4.87% and the 10-yr note yield is down four basis points to 3.94%.
The Reserve Bank of Australia increased its cash rate by 25 bps to 3.60%, as expected.
China reported a larger than expected trade surplus for February even though both imports (-10.2% yr/yr) and exports (-6.8% yr/yr) decreased for the first time since May 2020.
Energy complex futures are mixed. WTI crude oil futures are down 0.6% to $80.01/bbl and natural gas futures are up 2.1% to $2.79/mmbtu.
In corporate news:
Meta Platforms (META 187.45, +2.55, +1.4%): More layoffs expected at Meta Platforms, according to Bloomberg
Dick's Sporting Goods (DKS 138.30, +6.16, +4.7%): beats by $0.04, beats on revs; raises quarterly dividend 105%
Nutanix (NTNX 27.10, -1.67, -5.8%): reports Q2 results; beats on revs; guides AprQ revs above consensus; guides FY23 revs above consensus; to delay 10-Q, not reporting EPS today
Guidewire Software (GWRE 72.30, +0.78, +1.1%): misses by $0.19, beats on revs; guides Q3 revs in-line; guides FY23 revs above consensus
Juniper Networks (JNPR 31.63, +0.30, +1.0%): Goldman Sachs initiated coverage with Buy rating and price target of $39
Thor Industries (THO 82.52, -10.06, -10.9%): misses by $0.64, misses on revs; lowers FY23 EPS below consensus, revs below consensus
Cara Therapeutics (CARA 7.10, -2.92, -29.1%): misses by $0.21, misses on revs
Rivian (RIVN 15.85, -1.28, -7.5%): intends to offer $1.3 bln of green convertible senior notes due 2029
Squarespace (SQSP 27.70, +3.66, +15.2%): reports Q4 (Dec) results, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a mixed note while India's markets were closed for Holi. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: -0.3%, China's Shanghai Composite: -1.1%, India's Sensex: CLOSED, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: +0.5%.
In economic data:
China's February trade surplus $116.88 bln (expected surplus of $81.80 bln; last surplus of $78.01 bln). February Imports -10.2% yr/yr (expected -5.5%; last -7.5%) and Exports -6.8% yr/yr (expected -9.4%; last -9.9%)
Japan's January Average Cash Earnings 0.8% yr/yr (expected 1.9%; last 4.1%)
South Korea's Q4 GDP -0.4% qtr/qtr, as expected (last 0.3%); 1.3% yr/yr (expected 1.4%; last 1.3%)
Australia's January Retail Sales 1.9% m/m, as expected (last -4.0%). January trade surplus AUD11.69 bln (expected surplus of AUD 12.50 bln; last surplus of AUD12.24 bln). January Imports 5.0% m/m (last 1.0%) and Exports 1.0% (last -1.0%)
In news:
China reported a larger than expected trade surplus for February even though both imports and exports decreased for the first time since May 2020.
China Securities Daily speculated that the People's Bank of China could cut its reserve requirement ratio soon.
South Korea will halt its WTO complaint against Japan and will seek to relax export curbs imposed in 2019.
The Reserve Bank of Australia increased its cash rate by 25 bps to 3.60%, as expected.
Major European indices trade near their flat lines. STOXX Europe 600: UNCH, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: -0.1%.
In economic data:
Germany's January Factory Orders 1.0% m/m (expected -0.9%; last 3.4%)
U.K.'s February Halifax House Price Index 1.1% m/m (expected -0.3%; last 0.2%); 2.1% yr/yr (last 2.1%)
Spain's January Industrial Production -0.4% yr/yr (expected -0.6%; last 0.7%)
Swiss February Unemployment Rate 1.9%, as expected (last 1.9%)
In news:
European Central Bank policymaker de Cos said that CPI will remain high in the short-term, but he also expects that Spain's GDP outlook will be revised higher while the CPI forecast will be revised lower.
Bank of England policymaker Mann expressed a concern over persistent core inflation.
There is a growing number of labor strikes in France over the government's pension reform plan.
U.S. equity futures:
S&P 500 Futures: +4 @ 4,053
DJIA Futures: +9 @ 33,440
Nasdaq 100 Futures: +30 @ 12,332
Overseas:
Europe: DAX +0.1%, FTSE +0.3%, CAC +0.1%
Asia: Nikkei +0.3%, Hang Seng -0.3%, Shanghai Composite -1.1%
Commodities:
Crude Oil -0.40 @ 80.06
Nat Gas +0.055 @ 2.627
Gold -10.15 @ 1844.45
Silver -0.143 @ 20.992
Copper -0.0518 @ 4.0367
Earnings/Guidance:
908 Devices (MASS) misses by $0.07, beats on revs; guides FY23 revs in-line
AeroVironment (AVAV) misses by $0.10, beats on revs; guides FY23 EPS below consensus, revs in-line
BlackBerry (BB) sees Q4 revs below consensus
Calavo Growers (CVGW) misses by $0.26, misses on revs
Cara Therapeutics (CARA) misses by $0.21, misses on revs
Coherus BioSciences (CHRS) reports Q4 (Dec) results, misses on revs; provides business updates
Dick's Sporting Goods (DKS) beats by $0.04, beats on revs; raises quarterly dividend 105%
Dole plc (DOLE) beats by $0.04, beats on revs
Domo (DOMO) beats by $0.07, beats on revs; guides AprQ EPS below consensus, revs in-line; guides FY24 EPS above consensus, revs below consensus
Enfusion (ENFN) reports Q4 with upside sales and in-line guidance
Ferguson plc (FERG) misses by $0.04; beats on revs; reaffirms outlook
Guidewire Software (GWRE) misses by $0.19, beats on revs; guides Q3 revs in-line; guides FY23 revs above consensus
HighPeak Energy (HPK) reports Q4 (Dec) results, beats on revs (two ests)
KeyCorp (KEY) in slides: reduces FY23 net interest income guidance to up +1-4% yr/yr from up +6-9%
Latham Group (SWIM) misses by $0.09, beats on revs; guides Q1 revs below consensus; guides FY23 revs in-line
MRC Global (MRC) in slide presentation says expects 2023 annual sales growth of "double-digit %" vs $3.363 bln last year
Nutanix (NTNX) reports Q2 results; beats on revs; guides AprQ revs above consensus; guides FY23 revs above consensus; to delay 10-Q, not reporting EPS today
Pactiv Evergreen (PTVE) beats on top and bottom lines
Scholar Rock (SRRK) beats by $0.11, beats on revs
Sea Limited (SE) beats by $1.27, beats on revs
Seres Therapeutics (MCRB) misses by $0.08, misses on revs
Squarespace (SQSP) reports Q4 (Dec) results, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
Thor Industries (THO) misses by $0.64, misses on revs; lowers FY23 EPS below consensus, revs below consensus
Trip.comGroup (TCOM) reports Q4 (Dec) results, beats on revs; China business remained resilient with international business showing strong recovery momentum
Vivid Seats (SEAT) reports Q4 results; beats on revs; sees FY23 revs in-line
WW (WW) reports Q4 (Dec) results, revs in-line; guides Q1 revs below consensus; acquiring Sequence for $106 mln in cash and equity
News:
Continued focus on rail regulations after derailments in Ohio, New York Times
White House releases Medicare budget fact sheet
Akamai Technologies (AKAM) Releases New Service and Tools to Stop Advanced Threats and Drive Zero Trust Adoption
Amarin (AMRN) announces that all seven independent non-Sarissa board members to depart to avoid further proxy contests
Atlassian (TEAM) announced the rebalancing of resources resulting in the elimination of certain roles impacting about 500 full-time employees, or approximately 5% of the Company's current workforce
BioMarin Pharmaceutical (BMRN) provides update on FDA review of ROCTAVIAN
B. Riley Financial (RILY) Board of Directors authorized an updated share repurchase program for share repurchases of up to $50 million through October 2023
Canadian Solar (CSIQ) announces commercial operation of three solar projects in Japan Totaling 42 MWp
Carriage Services (CSV) appoints Kian Granmayeh as CFO, effective March 13, 2023
Con Edison (ED) enters accelerated share repurchase agreements with two dealers to repurchase $1 bln of its common shares
Domo (DOMO) names David Jolley as CFO and Domo Founder Josh James as CEO; John Mellor steps down as CEO
Globalstar (GSAT) signs collaboration agreement with Qualcomm
Hut 8 Mining (HUT) reports 156 Bitcoin mined in February
Incyte (INCY) and Caris Life Sciences enter into broad precision medicine partnership to advance Incyte's oncology pipeline
Ionis Pharma (IONS): FDA accepts NDA for eplontersen, an investigational antisense medicine for the treatment of people living with hereditary transthyretin-mediated amyloid polyneuropathy (ATTRv-PN)
Lulu's Fashion Lounge (LVLU) announces that Vice President of Finance, Tiffany Smith, has been appointed CFO, effective immediately
Meta Platforms (META): More layoffs expected at Meta Platforms, according to Bloomberg
Mr. Cooper Group (COOP) appoints Kurt Johnson to CFO
Nevro (NVRO) has now initiated the U.S. full market launch of its HFX iQ spinal cord stimulation (SCS) system, following the completion of a successful limited market release
New Found Gold Corp. (NFGC) Commences Industry-leading 3D Seismic Survey at Its Queenwsay Gold Project
Parsons (PSN) awarded contract to provide Contra Costa Water District Capital Project Management Services for Phase 2 of the Los Vaqueros Reservoir Expansion
Petrobras (PBR) signs with Equinor (EQNR) a letter of intent, expanding on the cooperation between the companies
Ritchie Bros. (RBA): Starboard affirmed 5.9% active stake last night
Ritchie Bros. (RBA) sells CA$72+ million of equipment & vehicles in Edmonton, AB
Salesforce (CRM): Elliott Management nominates directors for Salesforce board, according to Reuters
Sanofi (SNY) and Regeneron Pharmaceuticals (REGN) report Dupixent accepted for FDA review
SEMRush (SEMR) appoints Brian Mulroy as incoming CFO, effective April 2023
STMicroelectronics (STM) releases New STM32H5 MCU series from STMicroelectronics boosts performance and security for next-generation smart applications
Tellurian (TELL) names CFO Kian Granmayeh effective March 10
Tyson (TSN) facing employee lawsuit over lack of coronavirus measures, according to MarketWatch
ViewRay (VRAY) announced the Czech Ministry of Health has approved the purchase of ViewRay's MRIdian system
Walmart (WMT) was informed that John Furner, EVP, President and Chief Executive Officer, Walmart U.S., entered into a stock trading plan designed to comply with Rule 10b5-1
M&A:
Criteo (CRTO) acquires Brandcrush to accelerate offline retail media solutions
DXC Technology (DXC) terminates discussions with a financial sponsor regarding a potential acquisition
Intercontinental Exchange (ICE): FTC expected to challenge Intercontinental Exchange's acquisition of Black Knight (BKI), according to Bloomberg
ShockWave Medical (SWAV): Neovasc (NVCN) Shareholders Approved Acquisition by Shockwave Medical
WPP plc (WPP) acquires German healthcare specialist 3K Communication
WW (WW) buying digital health company Sequence, which offers telehealth visits with doctors, according to the Wall Street Journal
Syndicate:
BlackSky Technology (BKSY) has entered into definitive agreements with a syndicate of new and existing institutional investors for the issuance and sale of 16,403,677 shares of the Company's Class A common stock and warrants to purchase up to an additional 16,403,677 shares of common stock in a private placement offering
BridgeBio Pharma (BBIO) announces proposed public offering of $150 million of shares of its common stock
Goldman Sachs (GS) BDC prices offering of 6.5 mln shares of common stock for gross proceeds of ~$99.1 mln
Hamilton Lane (HLNE) prices offering of 671,737 shares of Class A common stock for gross proceeds of ~$51.7 mln
Liberty Media (LSXMA) intends to offer $500 mln aggregate principal amount of convertible senior notes
Rivian Automotive (RIVN) intends to offer $1.3 bln of green convertible senior notes due 2029
Sylvamo (SLVM) files for 6,312,454 share common stock offering by selling shareholders
Tidewater (TDW) acquires 37 platform supply vessels from Solstad Offshore
Vuzix (VUZI) files for 2,843,754 share common stock offering by selling shareholders
IPOs:
Expected to Price:
Atlas Energy Solutions (NYSE: AESI): The provider of frac sand and logistics services in the Permian Basis is expected to price its 18.0 M share IPO between $20-$23.
Gapping Up/Down
Gapping up:
WW +11.9%, SQSP +4%, AMRN +3.8%, TCOM +3.1%, TDW +2.3%, HPK +1.7%, DXC +1.6%, TEAM +1.2%, GWRE +1.1%, VRNA +1.1%, SNY +1%, GSAT +0.9%, TELL +0.7%, BBIO +0.5%, DOLE +0.5%
Gapping down:
CARA -30.4%, CVGW -12.2%, NTNX -8%, ZYXI -6.5%, GSBD -5.5%, RIVN -5.3%, DOMO -4.1%, LVLU -3.2%, KEY -3%, CDNA -2.7%, BB -2.5%, PSN -1.5%, HLNE-1.1%, AVAV -0.7%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Costco (COST) upgraded to Buy from Neutral at Northcoast; tgt $560
Mercantile Bank (MBWM) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $40
Downgrades:
Artisan Partners Asset Mgmt (APAM) downgraded to Sell from Neutral at Goldman; tgt lowered to $27
Gossamer Bio (GOSS) downgraded to Mkt Perform from Outperform at Raymond James
Joby Aviation (JOBY) downgraded to Sell from Hold at Deutsche Bank; tgt lowered to $4
KT (Korean Telco) (KT) downgraded to Neutral from Buy at BofA Securities
Lightspeed (LSPD) downgraded to Market Perform from Outperform at MoffettNathanson; tgt lowered to $17
Others:
Arista Networks (ANET) initiated with a Buy at Goldman
Bluebirdbio (BLUE) initiated with an Outperform at Robert W. Baird; tgt $10
Hesai Group (HSAI) initiated with an Outperform at Credit Suisse; tgt $28
Juniper Networks (JNPR) initiated with a Buy at Goldman
Upcoming Events:
Econ Data:
10:00 ET: Wholesale Inventories for Jan (Briefing.comConsensus -0.4%; Prior 0.1%)
15:00 ET: Consumer Credit for Jan (Briefing.comConsensus $22.9B; Prior $11.6B)
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 +0.3%, Hang Seng -0.3%, Shanghai Composite -1.1%
Equity indices in the Asia-Pacific region ended Tuesday on a mixed note while India's markets were closed for Holi. China reported a larger than expected trade surplus for February even though both imports and exports decreased for the first time since May 2020. China Securities Dailyspeculated that the People's Bank of China could cut its reserve requirement ratio soon. South Korea will halt its WTO complaint against Japan and will seek to relax export curbs imposed in 2019. The Reserve Bank of Australia increased its cash rate by 25 bps to 3.60%, as expected.
In economic data:
China's February trade surplus $116.88 bln (expected surplus of $81.80 bln; last surplus of $78.01 bln). February Imports -10.2% yr/yr (expected -5.5%; last -7.5%) and Exports -6.8% yr/yr (expected -9.4%; last -9.9%)
Japan's January Average Cash Earnings 0.8% yr/yr (expected 1.9%; last 4.1%)
South Korea's Q4 GDP -0.4% qtr/qtr, as expected (last 0.3%); 1.3% yr/yr (expected 1.4%; last 1.3%)
Australia's January Retail Sales 1.9% m/m, as expected (last -4.0%). January Imports 5.0% m/m (last 1.0%) and Exports 1.0% (last -1.0%)
---Equity Markets---
Japan's Nikkei: +0.3%
Hong Kong's Hang Seng: -0.3%
China's Shanghai Composite: -1.1%
India's Sensex: CLOSED
South Korea's Kospi: UNCH
Australia's ASX All Ordinaries: +0.5%
---FX---
USD/JPY: +0.1% to 136.09
USD/CNH: -0.1% to 6.9423
USD/INR: UNCH at 81.82
Europe: DAX +0.1%, FTSE +0.3%, CAC +0.1%
Major European indices trade near their flat lines. European Central Bank policymaker de Cos said that CPI will remain high in the short-term, but he also expects that Spain's GDP outlook will be revised higher while the CPI forecast will be revised lower. Bank of England policymaker Mann expressed a concern over persistent core inflation. There is a growing number of labor strikes in France over the government's pension reform plan.
In economic data:
Germany's January Factory Orders 1.0% m/m (expected -0.9%; last 3.4%)
U.K.'s February Halifax House Price Index 1.1% m/m (expected -0.3%; last 0.2%); 2.1% yr/yr (last 2.1%)
Spain's January Industrial Production -0.4% yr/yr (expected -0.6%; last 0.7%)
Swiss February Unemployment Rate 1.9%, as expected (last 1.9%)
---Equity Markets---
STOXX Europe 600: UNCH
Germany's DAX: +0.1%
U.K.'s FTSE 100: +0.3%
France's CAC 40: +0.1%
Italy's FTSE MIB: +0.1%
Spain's IBEX 35: -0.1%
---FX---
EUR/USD: -0.2% to 1.0660
GBP/USD: -0.3% to 1.1985
USD/CHF: +0.3% to 0.9336
