The S&P 500 futures are down 19 points and are trading 0.4% below fair value. The Nasdaq 100 futures are down 42 points and are trading 0.3% below fair value. The Dow Jones Industrial Average futures are down 140 points and are trading 0.3% below fair value.
Equity futures indicate a lower open driven by a sense that the market got overextended and is due for some consolidation.
Investors are still weighing Fed Chair Powell's comments from yesterday, where he pointed to emerging signs of disinflation but reiterated that more rate hikes will probably be appropriate.
The Reserve Bank of India raised its policy rate by 25 bps to 6.50%, as expected, and pointed to the prospect of additional rate hikes.
The weekly MBA Mortgage Application Index rose 7.4% with refinancing applications increasing 18.0% and purchase applications rising 3.0%.
Other data releases today include:
10:00 ET: December Wholesale Inventories (Briefing.comconsensus 0.5%; prior 1.0%)
10:30 ET: Weekly crude oil inventories (prior 4.14 mln)
In corporate news:
Uber (UBER 37.63, +2.73, +7.8%): beats by $0.27, beats on revs
Fortinet (FTNT 59.35, +5.57, +10.4%): beats by $0.05, reports revs in-line; guides Q1 EPS in-line, revs in-line; guides FY23 EPS in-line, revs above consensus
Lumen Technologies (LUMN 4.1800, -0.81, -16.2%): beats by $0.20, reports revs in-line; disappoints with FY23 free cash flow guidance of $0-200 million
Enphase Energy (ENPH 248.48, +20.02, +8.8%): beats by $0.25, beats on revs; guides Q1 revs in-line
Chipotle Mexican Grill (CMG 1642.50, -80.36, -4.7%): misses by $0.60, misses on revs; Q4 comps +5.6% vs guidance of mid to high-single digits; guides Q1 comps in high-single-digits
Oak Street Health (OSH 34.85, +1.17, +3.5%): CVS Health to acquire Oak Street Health (OSH) for $39/share in cash, for enterprise value of $10.6 bln
CVS Health (CVS 87.48, +1.50, +1.8%): beats by $0.06, beats on revs; reaffirms FY23 EPS guidance
Manchester United (MANU 24.67, +3.55, +16.8%): higher on report Qatari investors will bid for MANU within days, according to DailyMailUK
New Relic (NEWR 76.84, +12.26, +19.0%): beats by $0.17, beats on revs; guides Q4 EPS above consensus, revs above consensus
Under Armour (UAA 13.16, +0.94, +7.7%): beats by $0.07, beats on revs; raises FY23 EPS guidance, reaffirms revenue growth guidance of a low single-digit percentage rate increase on a reported basis
Activision Blizzard (ATVI 72.00, -3.60, -4.8%): UK CMA says Microsoft (MSFT) deal for ATVI could harm gamers
Capri Holdings (CPRI 53.50, -12.86, -19.4%): misses by $0.40, misses on revs; guides Q4 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: -0.5%, India's Sensex: +0.6%, South Korea's Kospi: +1.3%, Australia's ASX All Ordinaries: +0.4%.
In economic data:
Japan's January Bank Lending 3.1% yr/yr (expected 2.5%; last 2.7%) and January Economy Watchers Current Index 48.5 (expected 48.4; last 48.7)
South Korea's December Current Account surplus $2.68 bln (last deficit of $220 mln)
In news:
Japan will reportedly end coronavirus tests for visitors from China.
Japan's Prime Minister Kishida said that the next Bank of Japan governor will have to closely coordinate with other central banks. Nominees will reportedly be presented to parliament next week.
Expectations for the terminal official cash rate from the Reserve Bank of Australia have increased to 3.85% from 3.60%.
The Reserve Bank of India raised its policy rate by 25 bps to 6.50%, as expected.
Major European indices trade in the green. STOXX Europe 600: +0.8%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.7%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.7%, Spain's IBEX 35: +0.8%.
In economic data:
France's Q4 nonfarm payrolls 0.0% qtr/qtr (expected 0.2%; last 0.4%)
Italy's December Retail Sales -0.2% m/m (expected -0.8%; last 0.8%); 3.4% yr/yr (last 4.4%)
In news:
European Central Bank policymaker Schnabel said that inflation momentum remains elevated and repeated that the ECB expects to hike by 50 bps in March.
The U.K.'s National Institute of Economic and Social Research expects that inflation in the U.K. will remain above 3.0% until the end of 2024.
Volkswagen reported sales and earnings growth for 2022.
U.S. equity futures:
S&P 500 Futures: -17 @ 4,147
DJIA Futures: -114 @ 34,043
Nasdaq 100 Futures: -33 @ 12,695
Overseas:
Europe: DAX +0.7%, FTSE +0.7%, CAC +0.4%
Asia: Nikkei -0.3%, Hang Seng -0.1%, Shanghai Composite -0.5%
Commodities:
Crude Oil +0.62 @ 77.76
Nat Gas -0.043 @ 2.541
Gold +6.85 @ 1891.65
Silver +0.271 @ 22.448
Copper +0.0210 @ 4.1015
Earnings/Guidance:
Amcor (AMCR) reports Q2 EPS of $0.31 vs. $0.18 Capital IQ consensus; revs +4% yr/yr to $3.62 bln vs. $3.66 bln Capital IQ consensus
Assurant (AIZ) beats by $0.86, reports revs in-line
Atmos Energy (ATO) misses by $0.01, beats on revs; guides FY23 EPS in-line; declares dividend
Belden (BDC) beats by $0.09, beats on revs; guides Q1 EPS and revs above consensus; guides FY23 EPS and revs above consensus
Black Hills Corp (BKH) misses by $0.06, beats on revs; guides FY23 EPS below consensus
Blackstone Mortgage Trust (BXMT) beats by $0.15
Bunge (BG) beats by $0.03, misses on revs; guides FY23 EPS below consensus
Capri Holdings (CPRI) misses by $0.40, misses on revs; guides Q4 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus
Carlisle Cos (CSL) beats by $0.29, reports revs in-line
CDW (CDW) beats by $0.02, misses on revs; authorized a $750 mln increase to the company's share repurchase program
Cerence (CRNC) beats by $0.27, beats on revs; guides Q2 revs below consensus; guides FY23 revs in-line
Chipotle Mexican Grill (CMG) misses by $0.60, misses on revs; Q4 comps +5.6% vs guidance of mid to high-single digits; guides Q1 comps in high-single-digits
CME Group (CME) beats by $0.04, reports revs in-line
CNO Financial (CNO) beats by $0.01, beats on revs
Coherent (COHR) beats by $0.02, reports revs in-line; guides Q3 EPS in-line, revs in-line; guides FY23 revs in-line
Compass Minerals (CMP) misses by $0.55, misses on revs; provides FY23 segment guidance
Costamare (CMRE) misses by $0.04; beats on revs
Coty (COTY) beats by $0.07, beats on revs; raises FY23 EPS guidance, reaffirms EPS growth guidance for FY24
Criteo (CRTO) misses by $0.12, beats on revs; guides Q1 revs below consensus
Crown (CCK) beats by $0.12, misses on revs; guides Q1 EPS below consensus; guides FY23 EPS below consensus
CVS Health (CVS) beats by $0.06, beats on revs; reaffirms FY23 EPS guidance
Dominion Energy (D) beats by $0.02, beats on revs; guides Q1 EPS below consensus
Douglas Emmett (DEI) misses by $0.01, misses on revs; guides FY23 FFO below consensus
EastGroup (EGP) beats by $0.05, beats on revs
Eaton (ETN) beats by $0.01, reports revs in-line; guides Q1 EPS in-line; guides FY23 EPS in-line
Edgewell Personal Care (EPC) beats by $0.10, reports revs in-line; guides FY23 EPS in-line, raises revenue guidance
Emerson (EMR) misses by $0.09, misses on revs; guides Q2 EPS in-line; guides FY23 EPS in-line
Enanta Pharmaceuticals (ENTA) beats by $0.21, beats on revs
Encompass Health (EHC) beats by $0.06, beats on revs; guides FY22 EPS in-line, revs above consensus
Enphase Energy (ENPH) beats by $0.25, beats on revs; guides Q1 revs in-line
Equinor (EQNR) reports Q4 results; sees production growth of 3% in FY23
Essex Property (ESS) beats by $0.04; guides FY23 FFO below consensus
Euronet (EEFT) beats by $0.15, misses on revs; guides Q1 EPS below consensus
Exelixis (EXEL) beats by $0.05, beats on revs; reaffirms FY23 revs guidance
FMC Corp (FMC) beats by $0.03, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY23 EPS below consensus, revs above consensus
Fortinet (FTNT) beats by $0.05, reports revs in-line; guides Q1 EPS in-line, revs in-line; guides FY23 EPS in-line, revs above consensus
Freshworks (FRSH) beats by $0.05, beats on revs; guides Q1 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs below consensus
Green Plains (GPRE) misses by $0.42, beats on revs
Gulfport Energy (GPOR) provides Q4 updates - estimates its fourth quarter 2022 production was negatively impacted by approximately 2%
H & R Block (HRB) beats by $0.11, beats on revs; reaffirms FY23 EPS guidance, revs guidance
Healthpeak (PEAK) beats by $0.01, beats on revs; guides FY23 FFO below consensus
Highwoods Prop (HIW) reports FFO in-line, revs in-line
Horace Mann (HMN) misses by $0.01, reports revs in-line
ICHOR Corporation (ICHR) reports EPS in-line, revs in-line; guides Q1 EPS in-line, revs in-line
Illumina (ILMN) misses by $0.08, beats on revs; guides FY23 EPS in-line, revs in-line
Ingredion (INGR) beats by $0.20, misses on revs; guides FY23 EPS in-line
Inspire Medical Systems (INSP) beats by $0.64, reports revs in-line; guides FY23 revs in-line
Jack Henry (JKHY) misses by $0.01, misses on revs; guides FY23 EPS below consensus
Kyndryl (KD) misses by $0.16, beats on revs
LiveRamp (RAMP) beats by $0.01, reports revs in-line; guides MarQ revs in-line
Lumen Technologies (LUMN) beats by $0.20, reports revs in-line
MasterCraft (MCFT) beats by $0.19, beats on revs, issues upside EPS and revenue guidance for Q3 and FY23
Model N (MODN) beats by $0.01, beats on revs; guides Q2 EPS below consensus, revs in-line
NCR Corp (NCR) misses by $0.01, reports revs in-line; guides Q1 revs in-line; guides FY23 revs in-line
New Relic (NEWR) beats by $0.17, beats on revs; guides Q4 EPS above consensus, revs above consensus
New York Times (NYT) beats by $0.16, beats on revs; increases dividend by 22%; approves a new $250 mln Class A share repurchase program; increases goal of returning FCF to shareholders
Omnicom (OMC) beats by $0.10, beats on revs
Paycom Software (PAYC) beats by $0.24, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
Penske Auto (PAG) beats by $0.25, beats on revs
Performance Food Group (PFGC) beats by $0.08, reports revs in-line; guides Q3 revs below consensus; guides FY23 revs in-line
Perion Network (PERI) beats by $0.17, beats on revs; guides FY23 revs in-line
Prudential (PRU) misses by $0.09, authorizes repurchase of up to $1.0 billion of outstanding common stock
Qiagen (QGEN) beats by $0.06, beats on revs; guides FY23 EPS above consensus, revs in-line
Radware (RDWR) reports EPS in-line, revs in-line
Red Rock Resorts (RRR) beats by $0.97, reports revs in-line
Reynolds Consumer Products (REYN) misses by $0.04, misses on revs; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
Silicon Motion (SIMO) misses by $0.43, misses on revs
SITE Centers (SITC) beats by $0.01, reports revs in-line; guides FY23 FFO in-line
SS&C Techs (SSNC) reports EPS in-line, revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY23 EPS below consensus, revs in-line
Tenable (TENB) beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS above consensus, revs below consensus
Teva Pharma (TEVA) reports EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line
TotalEnergies SE (TTE) misses on top and bottom lines
Uber (UBER) beats by $0.27, beats on revs
Vishay (VSH) misses by $0.11, misses on revs; guides Q1 revs in-line
Vertex Pharma (VRTX) beats by $0.25, reports revs in-line
V.F. Corp (VFC) beats by $0.13, beats on revs; guides FY23 EPS in-line; expects low-single-digit percentage sales growth yr/yr in FY24
Viasat (VSAT) misses by $0.52, beats on revs
Voya Financial (VOYA) beats by $0.64
Werner Enterprises (WERN) beats by $0.07, reports revs in-line
Western Union (WU) misses by $0.03, beats on revs; reaffirms FY23 EPS guidance
Yum! Brands (YUM) beats by $0.05, global comps of +6%; increases quarterly dividend 6.1% to $0.605/share
Yum China (YUMC) reports EPS in-line, misses on revs; SSS -4% yr/yr, increases dividend
Zurn Elkay Water Solutions (ZWS) misses by $0.01, misses on revs; guides Q4 revs below consensus; guides FY23 revs in-line; also announces $500 mln share repurchase authorization
News:
US intelligence says last week's Chinese spy balloon was part of a vast surveillance program run by the People's Liberation Army, according to the Washington Post
President Biden in State of the Union calls for Congress to pass billionaire minimum tax & for quadrupling the tax on corporate stock buybacks; calls for more antitrust regulation in technology companies; calls for debt ceiling to be raised
3M (MMM) increases quarterly dividend to $1.50/share from $1.49/share
ADMA Biologics (ADMA) receives FDA approval for its eighth plasma collection center, located in Hammond, LA
Alpha and Omega Semi (AOSL) has entered into a license agreement with a leading power semiconductor automotive supplier related to AOS's Silicon Carbide MOSFET and diode technology
Annovis Bio (ANVS) receives approval for European Union clinical trial sites for the Phase 3 Study of Buntanetap for the treatment of Parkinson's Disease
Apple (AAPL) expands testing of Buy Now Pay Later service, according to Bloomberg
Arconic (ARNC) reports $304 mln after-tax loss on sale of Russian operations
Atara Biotherapeutics (ATRA) and Pierre Fabre announce the transfer of the European Commission marketing authorization for EBVALLO for patients with relapsed or refractory Epstein-Barr virus positive post-transplant lymphoproliferative disease from Atara to Pierre Fabre
Becton Dickinson (BDX) has received Emergency Use Authorization from the U.S. FDA for a new molecular diagnostic combination test for SARS-CoV-2, Influenza A + B and Respiratory Syncytial Virus to help combat illness in the current and future respiratory virus seasons
Crane (CR) on track to complete previously announced separation into two independent businesses on April 3
Designer Brands (DBI) announces actions to strengthen its Owned Brands strategy
eBay (EBAY) reducing total employee base by about 4%; simplifying structure to make decisions more effectively
Genius Group (GNS) launches Genius AI Educator Suite, combining the AI capabilities of OpenAI's GPT-3 and upcoming GPT-4 with the AI capabilities of Salesforce's Einstein AI
Gentex (GNTX) provides SEC investigation updates; resolution does not involve a restatement of previously filed financial statements
Google (GOOG) aims to introduce AI search features, according to the Wall Street Journal
Grupo Aeroportuario Del Sureste (ASR) reports January 2023 traffic
Invesco's (IVZ) CEO Marty Flanagan to retire on June 30, 2023; Andrew Schlossberg to succeed as CEO
KKR Real Estate Finance Trust (KREF) increased share repurchase program on Feb. 3 to repurchase up to an aggregate of $100.0 mln of its common stock
Meta (META) wants some managers to transition to individual contributor jobs, according to Bloomberg
Microsoft (MSFT) plans to release ChatGPT technology for other companies to customize, according to CNBC
nCino (NCNO) announces a value added reseller agreement with Rich Data to enhance the lending process for its customers
New Relic (NEWR) announces that William Hill is standardizing on New Relic to advance its observability strategy
ON24, Inc. (ONTF): Indaba Issues Letter to ON24's Board of Directors Regarding the Need for a Meaningful Capital Return Program and Stronger Corporate Governance
Perion Network (PERI) names Tal Jacobson as CEO effective August 1, 2023
Primerica (PRI) increases quarterly divided to $0.65/share from $0.55/share
Warner Bros. Discovery (WBD) will keep Discovery+ as a stand alone streaming service, according to the Wall Street Journal
West Fraser (WFG) announces planned curtailment of operations at Cariboo Pulp & Paper in British Columbia beginning in mid-April for a month and then another month in Q3
Zoom Video (ZM) says it expects restructuring charges between $50-$68 mln from restructuring plans announced earlier, most of which it expects to occur in 1Q24; also cuts executives salaries by 20% for fiscal 2024
M&A:
Activision Blizzard (ATVI): UK CMA says Microsoft (MSFT) deal for ATVI could harm gamers
Acushnet (GOLF) has purchased the Club Glove brand from West Coast Trends; financial terms were not disclosed
CVS Health (CVS) to acquire Oak Street Health (OSH) for $39/share, for enterprise value of $10.6 bln; CVS reaffirms FY23 EPS guidance
Duck Creek Technologies (DCT) announces the expiration of the 30-day 'go-shop' period under the terms of the previously announced definitive merger agreement
Fanhua (FANH) to acquire 51% of the equity interests of Taiping; expected to be completed in the first quarter of 2023
Manchester United (MANU): Qatari investors will bid for MANU within days, according to DailyMailUK
MetLife (MET) to acquire Raven Capital Mgmt, a privately-owned alternative investment firm
Opiant Pharmaceuticals (OPNT) announces that the Committee on Foreign Investment in the United States approved the previously announced Merger Agreement for Opiant to be acquired by Indivior PLC (INVVY)
TH International (THCH) Board approves combination with Popeyes China
UniFirst (UNF) has signed an agreement to purchase Clean Uniform for $300 mln
Wolverine (WWW) has sold the Keds brand to Designer Brands (DBI); financial terms were not disclosed
Syndicate:
Aehr Test Systems (AEHR) enters At-The-Market offering of common stock of up to $25 million of shares of the Company's common stock
Anavex (AVXL) files prospectus related to issuance, sale of up to $150m in shares of common stock from time to time
Bed Bath & Beyond (BBBY) announces closing of public equity offering; provides strategic update
CureVac (CVAC) prices 27,027,028 common shares at a public offering price of $9.25 per share for gross proceeds of approximately $250 million
Dynatrace (DT) prices offering of 15 mln shares of common stock by selling stockholders; no additional details released
ePlus (PLUS) files mixed securities shelf offering
First Republic Bank (FRC) announces common stock offering of 2 mln stocks
Halliburton (HAL) files mixed securities shelf offering
Highwoods Prop (HIW) files mixed securities shelf offering
RxSight (RXST) announces $40 mln proposed public offering of common stock
Treace Medical Concepts (TMCI) has commenced an underwritten public offering of $100.0 mln of shares of its common stock; files mixed securities shelf offering
Xponential Fitness (XPOF) prices secondary offering of 5 mln shares of common stock at $24.50 per share
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:
MANU +18.3%, NEWR +17.7%, FTNT +11.9%, ENPH+10.2%, EQNR +6.6%, KD +5.4%, PLUS +5.2%, OSH+4.8%, VOYA +4.8%, TENB +4.8%, HRB +4.4%, PANW+4%, WERN +3.8%, NCNO +3.5%, WFRD +3.4%, ITUB+3%, RAMP +2.8%, EPM +2.8%, CSL +2.5%, MSFT+2.1%, BBBY +1.7%, CVAC +1.7%, OMC +1.7%, INSP+1.4%, RXO +1.3%, GPOR +1.1%, ICHR +0.9%, WU+0.9%, CVS +0.8%, NCR +0.8%
Gapping down:
LUMN -12.8%, XPOF -12%, RXST -9.2%, TMCI -7.4%, JKHY -5.7%, BG -5.7%, CMG -5.1%, DT -4.6%, ATO-4.4%, EXEL -4.2%, BKH -4%, AMCR -3.8%, ILMN-3.6%, AVXL -3.1%, PRU -3.1%, YUMC -2.3%, NXGN-2.1%, GNTX -2%, CR -2%, VSAT -2%, PEAK -2%, TTE -2%, ARNC -1.9%, AOSL -1.5%, FRC -1.4%, ESS-1.4%, SSNC -1.3%, PAYC -1.3%, AEHR -1.1%, CMP-1.1%, HIW -1.1%, OPNT -1%, RRR -0.7%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
American Airlines (AAL) upgraded to Buy from Neutral at Redburn; tgt $25
American Express (AXP) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $186
Delta Air Lines (DAL) upgraded to Buy from Neutral at Redburn; tgt $55
Enact Holdings (ACT) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $26.50
Royal Caribbean (RCL) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $78
TripAdvisor (TRIP) upgraded to Buy from Underperform at BofA Securities; tgt raised to $38
United Airlines (UAL) upgraded to Neutral from Sell at Redburn; tgt $55
Wayfair (W) upgraded to Equal Weight from Underweight at Barclays; tgt $70
Downgrades:
Adecoagro S.A. (AGRO) downgraded to Neutral from Overweight at JP Morgan; tgt $9
Adecoagro S.A. (AGRO) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9
Black Hills Corp (BKH) downgraded to Sector Perform from Sector Outperform at Scotiabank; tgt $67
Discover Financial Services (DFS) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $96
Duck Creek Technologies (DCT) downgraded to Neutral from Buy at DA Davidson; tgt lowered to $19
Enbridge (ENB) downgraded to Underperform from Neutral at Credit Suisse
Hain Celestial (HAIN) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $21
Hain Celestial (HAIN) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $17
Kone Oyj (KNYJY) downgraded to Underperform from Neutral at Exane BNP Paribas
Life Storage (LSI) downgraded to Neutral from Buy at Citigroup; tgt $126
Nutrien (NTR) downgraded to Hold from Buy at TD Securities; tgt $91
Sherwin-Williams (SHW) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Southwest Air (LUV) downgraded to Neutral from Buy at Redburn; tgt $40
UroGen Pharma (URGN) downgraded to Hold from Buy at Jefferies; tgt lowered to $10
Volvo (VLVLY) downgraded to Hold from Buy at Jefferies
Others:
Advance Auto (AAP) initiated with an Underweight at Barclays; tgt $145
AutoZone (AZO) initiated with an Overweight at Barclays; tgt $2663
Best Buy (BBY) initiated with an Equal Weight at Barclays; tgt $88
BJ's Wholesale (BJ) initiated with an Equal Weight at Barclays; tgt $72
Brighthouse Financial (BHF) initiated with a Mkt Perform at Raymond James
Chesapeake Energy (CHK) initiated with a Neutral at Citigroup; tgt $90
Cisco (CSCO) added to Tactical Outperform list at Evercore ISI
Costco (COST) initiated with an Equal Weight at Barclays; tgt $510
Dollar General (DG) initiated with an Equal Weight at Barclays; tgt $237
Dollar Tree (DLTR) initiated with an Equal Weight at Barclays; tgt $145
Driven Brands (DRVN) initiated with an Overweight at Barclays; tgt $35
Equitable Holdings (EQH) initiated with a Mkt Perform at Raymond James
Evolv Technologies Holdings (EVLV) initiated with an Overweight at Cantor Fitzgerald; tgt $5.40
Five Below (FIVE) initiated with an Overweight at Barclays; tgt $219
Floor & Decor (FND) initiated with an Underweight at Barclays; tgt $88
Home Depot (HD) initiated with an Equal Weight at Barclays; tgt $323
Lowe's (LOW) initiated with an Equal Weight at Barclays; tgt $215
Nouveau Monde Graphite (NMG) initiated with a Buy at H.C. Wainwright; tgt $17
O'Reilly Auto (ORLY) initiated with an Equal Weight at Barclays; tgt $815
Overstock.com(OSTK) initiated with an Equal Weight at Barclays; tgt $23
Target (TGT) initiated with an Equal Weight at Barclays; tgt $163
Tractor Supply (TSCO) initiated with an Overweight at Barclays; tgt $254
United Rentals (URI) initiated with an Outperform at Credit Suisse; tgt $544
Walmart (WMT) initiated with an Overweight at Barclays; tgt $159
WillScot Mobile Mini (WSC) initiated with an Outperform at William Blair
Upcoming Events:
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Feb. 4 (Briefing.comConsensus NA; Prior -9.0%)
10:00 ET: Wholesale Inventories for Dec (Briefing.comConsensus 0.5%; Prior 1.0%)
10:30 ET: EIA Crude Oil Inventories for Feb. 4 (Briefing.comConsensus NA; Prior 4.14M)
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
Asia & Europe detail:
Asia: Nikkei -0.3%, Hang Seng -0.1%, Shanghai Composite -0.5%
Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan will reportedly end coronavirus tests for visitors from China. Japan's Prime Minister Kishida said that the next Bank of Japan governor will have to closely coordinate with other central banks. Nominees will reportedly be presented to parliament next week. Expectations for the terminal official cash rate from the Reserve Bank of Australia have increased to 3.85% from 3.60%. The Reserve Bank of India raised its policy rate by 25 bps to 6.50%, as expected.
In economic data:
Japan's January Bank Lending 3.1% yr/yr (expected 2.5%; last 2.7%) and January Economy Watchers Current Index 48.5 (expected 48.4; last 48.7)
South Korea's December Current Account surplus $2.68 bln (last deficit of $220 mln)
---Equity Markets---
Japan's Nikkei: -0.3%
Hong Kong's Hang Seng: -0.1%
China's Shanghai Composite: -0.5%
India's Sensex: +0.6%
South Korea's Kospi: +1.3%
Australia's ASX All Ordinaries: +0.4%
---FX---
USD/JPY: -0.2% to 130.81
USD/CNH: +0.2% to 6.7931
USD/INR: -0.3% to 82.52
Europe: DAX +0.7%, FTSE +0.7%, CAC +0.4%
Major European indices trade in the green. European Central Bank policymaker Schnabel said that inflation momentum remains elevated and repeated that the ECB expects to hike by 50 bps in March. The U.K.'s National Institute of Economic and Social Research expects that inflation in the U.K. will remain above 3.0% until the end of 2024. Volkswagen reported sales and earnings growth for 2022.
In economic data:
France's Q4 nonfarm payrolls 0.0% qtr/qtr (expected 0.2%; last 0.4%)
Italy's December Retail Sales -0.2% m/m (expected -0.8%; last 0.8%); 3.4% yr/yr (last 4.4%)
---Equity Markets---
STOXX Europe 600: +0.8%
Germany's DAX: +0.7%
U.K.'s FTSE 100: +0.7%
France's CAC 40: +0.4%
Italy's FTSE MIB: +0.7%
Spain's IBEX 35: +0.8%
---FX---
EUR/USD: +0.2% to 1.0745
GBP/USD: +0.5% to 1.2101
USD/CHF: -0.3% to 0.9190