The S&P 500 futures are up 7 points and are trading 0.2% above fair value. The Nasdaq 100 futures are down 6 points and are trading slightly fair value. The Dow Jones Industrial Average futures are up 78 points and are trading 0.2% above fair value.
Stock futures have been mixed this morning, yet skew somewhat more positive. Market participants are waiting to see if there will be any follow through on Friday'srally. This week also brings another batch of potentially market-moving events. Namely, the Senior Loan Officer Opinion Survey will be released today, the Consumer Price Index (CPI) on Wednesday, and the Producer Price Index (PPI) on Thursday.
Treasury Secretary Janet Yellen warned of "economic chaos" if the debt ceiling is not raised, according to CNBC. This comes ahead of President Biden's meeting with House Speaker McCarthy and other Congressional leaders on May 9.
The 2-yr note yield is up five basis points to 3.96% and the 10-yr note yield is up three basis points to 3.46%.
Oil prices are sharply higher, up 2.8% to $73.32/bbl.
Economic data today is limited to the Wholesale Inventories report for March (Briefing.comconsensus 0.1%; prior 0.1%) at 10:00 a.m. ET.
In corporate news:
PacWest (PACW 7.95, +2.19, +37.9%) and Western Alliance (WAL 30.27, +3.05, +11.2%): continued rally effort in regional bank stocks after big gains on Friday; separately, PacWest announced a cut in its dividend to $0.01 per share from $0.25
Alcoa (AA 36.95, +0.80, +2.2%): JPMorgan initiated coverage with an Overweight rating
Spectrum Brands (SPB 76.97, +6.60, +9.4%): SPB and the DOJ reach a settlement regarding the HHI Acquisition
Baxter (BAX 46.21, +0.16, +0.4%): Private equity firms are interested in BAX's biopharma unit, according to Reuters
Estee Lauder (EL 211.06, +7.52, +3.7%): Nelson Peltz mulling shakeup at Estee Lauder, according to NY Post
Occidental Petroleum (OXY 60.35, -0.29, -0.5%): Warren Buffett says he will not take full control of Occidental, according to CNBC
Tyson Foods (TSN 55.69, -5.00, -8.2%): misses by $0.84, misses on revs
Pentair (PNR 59.00, +1.13, +2.0%): upgraded to Buy from Neutral at UBS
American Airlines (AAL 14.31, +0.44, +3.2%): upgraded to Overweight from Neutral at JPMorgan
Catalent (CTLT 38.10, -9.65, -20.2%): delays third quarter results and conference call; expects to significantly reduce both its fiscal 2023 net revenue and Adjusted EBITDA guidance by more than $400 million each
Reviewing overnight developments:
Equity indices in the Asia-Pacific region began the week on a mostly higher note. Japan's Nikkei: -0.7%, Hong Kong's Hang Seng: +1.2%, China's Shanghai Composite: +1.8%, India's Sensex: +1.2%, South Korea's Kospi: +0.5%, Australia's ASX All Ordinaries: +0.8%.
In economic data:
China's April FX Reserves $3.205 trln (expected $3.192 trln; last $3.184 trln)
Japan's April Services PMI 55.4 (expected 54.9; last 55.0)
Australia's March Building Approvals -0.1% m/m (expected 3.0%; last 3.9%) and April NAB Business Confidence 0, as expected (last -1). April NAB Business Survey 14 (expected 9; last 16)
In news:
China's Agriculture Ministry is taking steps to stabilize this year's grain supply.
Japan's Services PMI remained in expansionary territory for the seventh month in a row in the April reading.
Japan's Prime Minister Kishida met with South Korea's President Yoon.
Leaders from China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan will take part in the Central Asia summit at the end of next week.
Major European indices trade in the green while the U.K.'s FTSE is closed for a bank holiday. STOXX Europe 600: +0.4%, Germany's DAX: +0.2%, U.K.'s FTSE 100: CLOSED, France's CAC 40: +0.3%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.7%.
In economic data:
Eurozone's May Sentix Investor Confidence -13.1 (expected -8.0; last -8.7)
Germany's March Industrial Production -3.4% m/m (expected -1.3%; last 2.1%); 1.6% yr/yr (expected -0.5%; last 0.8%)
In news:
European Central Bank policymaker Knot said that rate hikes have started to have an effect, but more increases will be needed to contain inflation. He added that the 2.0% inflation goal could be reached in 2025.
Fitch lowered the long-term rating of the European Financial Stability Facility to AA- from AA.
The Italian Treasury may reduce its stake in BMPS.
U.S. equity futures:
S&P 500 Futures: +5 @ 4,142
DJIA Futures: +67 @ 33,741
Nasdaq 100 Futures: -14 @ 13,245
Overseas:
Europe: DAX +0.2%, FTSE CLOSED, CAC +0.3%
Asia: Nikkei -0.7%, Hang Seng +1.2%, Shanghai Composite +1.8%
Commodities:
Crude Oil +2.04 @ 73.38
Nat Gas +0.073 @ 2.21
Gold +4.80 @ 2029.60
Silver +0.075 @ 25.855
Copper +0.0635 @ 3.9465
Earnings/Guidance:
Aclaris Therapeutics (ACRS) beats by $0.02, beats on revs
AES (AES) reaffirms FY23 guidance; provides long-term strategy and outlook targets
Axsome Therapeutics (AXSM) reports Q1 (Mar) results
Berkshire Hathaway (BRK.A) reports Q1 results
BioNTech (BNTX) beats by $1.35, beats on revs
BioXcel Therapeutics (BTAI) misses by $0.18
Catalent (CTLT) delays third quarter results and conference call; expects to significantly reduce both its fiscal 2023 net revenue and Adjusted EBITDA guidance by more than $400 million each
Delek US Holdings (DK) beats by $0.37, beats on revs
DISH Network (DISH) misses by $0.04, misses on revs
Energizer (ENR) beats by $0.12, reports revs in-line; reaffirms FY23 EPS guidance
Freshpet (FRPT) misses by $0.09, reports revs in-line; reaffirms FY23 revs guidance
HNI (HNI) beats by $0.16, beats on revs
KKR (KKR) beats by $0.07, beats on revs
LL Flooring Holdings (LL) misses by $0.16, misses on revs
Six Flags (SIX) beats by $0.02, beats on revs
TreeHouse Foods (THS) beats by $0.28, beats on revs; guides Q2 revs below consensus; reaffirms FY23 revs guidance
Tyson Foods (TSN) misses by $0.84, misses on revs
Viatris (VTRS) reports Q1 (Mar) results, misses on revs; reaffirms FY23 revs guidance
News:
Treasury Secretary Janet Yellen warned of :economic chaos" if debt ceiling is not raised, according to CNBC
President Biden says he is not ready to involve 14th amendment to prevent a debt default if ceiling is reached. He will meet with House Speaker Kevin McCarthy tomorrow to discuss debt ceiling, according to Bloomberg
Some US officials believe Ukraine spring offensive could be a trigger for negotiations between Ukraine and Russia, according to the Wall Street Journal
FDIC considering loss sharing agreements with private equity firms that acquire portions of failed banks, according to Bloomberg
Warren Buffet was cautious on financial sector, according to Reuters
Chicago Fed President Austan Goolsbee says it's "way too premature" to say Fed will need to raise rates again in June, according to Reuters
The Biden administration is planning rule to pay passengers for cancelled or delayed flights, according to CNN
Chile's conservatives obtained 3/5 majority after elections, according to Bloomberg
AbbVie (ABBV) Releases New Data Demonstrating Breadth of Its Gastroenterology Portfolio at 2023 Digestive Disease Week
Amazon (AMZN) plans to generate photos and videos for advertisers using AI, according to The Information
ARKO Corp. (ARKO) announced today two separate agreements that enhance the Company's dealmaking flexibility and long-term growth strategy
AstraZeneca (AZN) receives approval for Koselugo in China
BeiGene (BGNE) receives new approvals for BRUKINSA in China
Binance to face DOJ probe of possible Russian sanctions violations, according to Bloomberg
Binance resumed Bitcoin withdrawals after closure that was temporary, according to Reuters
Braskem SA (BAK) provides update to media reports regarding proposal to purchase Braskem's control
Churchill Downs (CHDN) reports 149th Kentucky Derby Race, the Kentucky Derby Day Program, and Kentucky Derby Week races all set new handle records
CNO Financial (CNO) approves additional $500 mln for share repurchases bringing the total to ~$672 mln; raises dividend 7% to $0.15/share
Crescent Point Energy (CPG) advises of a temporarily shut in its Kaybob Duvernay production in response to the recent Alberta wildfires
Dillard's (DDS) announces launch of Jess Southern for Gianni Bini, the Company's second limited-edition capsule collection presented under the exclusive Gianni Bini brand
Edwards' (EW) aortic valve with Resilia tissue shows favorable durability, safety and efficacy outcomes in seven year data
Enbridge (ENB) appointed Patrick Murray, currently Senior Vice President & Chief Accounting Officer, to succeed Vern Yu as Executive Vice President and Chief Financial Officer effective July 1, 2023
Equinor (EQNR) and partners announce final investment decision for BM-C-33, in Brazil
Estee Lauder (EL): Nelson Peltz mulling shakeup at Estee Lauder, according to the New York Post
Exelixis (EXEL): Farallon Capital Management Comments on Successful Campaign for Change at Exelixis
Glaukos (GKOS) Announces FDA Acceptance of NDA Submission for iDose TR
GOL Linhas Aereas Inteligentes S.A. (GOL) reports April traffic increased 8.4% yr/yr
Illumina (ILMN) sends letter to shareholders highlighting Board strength, weakness of Icahn's "Plan"
Ironwood (IRWD) presents new data on potential of linaclotide for functional constipation in children and adolescents ages 6-17 years-old at Digestive Disease Week 2023
LSB Industries (LXU) has authorized a stock repurchase program
Mallinckrodt plc (MNK) presents clinical data for TERLIVAZ for injection in adults with hepatorenal syndrome at Digestive Disease Week 2023
Manpower (MAN) increases semi-annual dividend by 8.1% to $1.47 per share
Occidental (OXY): Warren Buffett says he will not take full control of Occidental, according to CNBC
PacWest Bancorp (PACW) reduces quarterly dividends
Paramount (PARA): Warren Buffett was critical of Paramount dividend cut. He likes Bank of America (BAC) and Apple (AAPL) but was cautious on commercial real estate, according to CNBC
Petrobras (PBR) provided Bahia Terra production updates
Sea Limited (SE) will raise pay by 5% for most employees, according to Bloomberg
Seres Therapeutics (MCRB) and Nestl Health Science announce the presentation of data from the Phase 3 open-label ECOSPOR IV study evaluating VOWST
Shell (SHEL) fire at Texas plant has been contained, according to Reuters
Sight Sciences (SGHT) Announces 12-month Results from the First Minimally Invasive Glaucoma Surgery (MIGS) Comparative Analysis of Real-World Data (RWD) from the American Academy of Ophthalmology IRIS Registry
South Plains Financial (SPFI) approves $15 mln stock repurchase program
Sundial Growers (SNDL): Nova Cannabis approves resolution for retail platform in Canada
Toyota (TM) suspends sales of Yaris, according to Reuters
UBS (UBS) narrowed list of Credit Suisse (CS) execs for its leadership, according to Financial Times
Vermilion Energy Inc. (VET) Provides Update on the Impact of Alberta Wildfires
Walmart (WMT): Longtime exec Latriece Watkins will be new chief merchant, according to the Wall Street Journal
Walt Disney (DIS): Gov DeSantis signed law that gives a new board the power to void development agreements, according to Reuters
Zevra Therapeutics (ZVRA) Board accepted the resignation of Richard W. Pascoe from his role as CEO, effective June 1, 2023
M&A:
Baxter (BAX): Private equity firms are interested in BAX's biopharma unit, according to Reuters
Brown & Brown (BRO) announced that a subsidiary of Brown & Brown, Inc., has acquired substantially all of the assets of Brownlee Agency; terms not disclosed
enCore Energy Corp. (EU) acquires proprietary Prompt Fission Neutron tech and equipment from Energy Fuels Resources
Camping World (CWH) announced that it intends to acquire I-90 RV in Billings, Montana; financial terms not disclosed
Fortune Brands Innovations (FBIN) to proceed with acquisition of Emtek and Schaub Premium Hardware Brands and the U.S. and Canadian Yale and August Residential Smart Lock Brands from ASSA ABLOY
Henry Schein (HSIC) acquires Regional Health Care Group
Spectrum Brands (SPB) and the DOJ reach a settlement regarding the HHI Acquisition
Wash. Federal (WAFD) and Luther Burbank announce receipt of shareholder approval for merger
Syndicate:
Fidelity National (FNF) files for 6,754,567 share common stock offering by selling shareholders
Hayward Holdings (HAYW) announces secondary offering of 21,000,000 shares of common stock by selling stockholders
Martin Marietta (MLM) files mixed shelf securities offering
Nano-X Imaging (NNOX) files up to 4,869,909 common stock by selling shareholder
PTC Therapeutics (PTCT) files for 657,462 share common stock offering by selling shareholders
SKYX Platforms (SKYX) files for $200 mln mixed securities shelf offering
Uniti Group (UNIT) files mixed securities shelf offering
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
PACW +33%, BAK +26.5%, SPB +7.9%, EL +3.2%, SGHT +3%, SIX +3%, KDNY +2.9%, CNO +2.6%, BGNE +2%, BRK.B +1.4%, ING +1%, BBVA +0.6%, LL+0.6%
Gapping down:
DISH -5.2%, UNIT -3.7%, NNOX -3.3%, GKOS -2%, SNDL -1.7%, AES -1.3%, SKYX -1.2%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
American Airlines (AAL) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $29
Americold Realty Trust (COLD) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $36
Atlantica Yield (AY) upgraded to Outperform from Sector Perform at National Bank Financial; tgt $31
Janus Henderson Group (JHG) upgraded to Neutral from Underperform at Credit Suisse; tgt raised to $23
Scotts Miracle-Gro (SMG) upgraded to Overweight from Neutral at JP Morgan; tgt $80
Downgrades:
Cogent Communications (CCOI) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $70
Frontier Group Holdings (ULCC) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $12
Southwest Air (LUV) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $39
Others:
Alcoa (AA) initiated with an Overweight at JP Morgan; tgt $54
Constellium (CSTM) initiated with an Overweight at JP Morgan; tgt $24
Getty Images (GETY) initiated with a Neutral at JP Morgan; tgt $6
Kaiser Alum (KALU) initiated with a Neutral at JP Morgan; tgt $69
Portland Gen Elec (POR) initiated with an Overweight at JP Morgan; tgt $56
Econ Data:
10:00 ET: Wholesale Inventories for Mar (Briefing.comConsensus 0.1%; Prior 0.1%)
Earnings:
Monday (May 8)
Morning: ACRS BNTX BTAI DK DISH ENR FRPT HNI KKR LL SIX THS TSN VTRS
Afternoon: DDD ACAD ADTN ACM AEL AVTA BRBR BHF BWXT CBT CERT DVA DVN DRQ WTRG FN FGEN HLIT HLIO HI HIMS HBM HPP ICUI IIPR IPAR IFF JELD KMPR KFRC LCID MRVI DOOR MCK MRC MWA PLTR PAY PYPL PRAA PRI PGNY ROVR SHLS SWAV TSLX SWKS TALO TASK TREX VECO VTR WDC XNCR YMAB
Tuesday (May 9)
Morning: MASS AHCO APD ALIT AMCX APO ARMK ATKR BALY BSY BLUE WHD CTLT CRNC CHH CLVT YOU CRBG COTY DOCN DUK EPC EHTH ELAN ESPR EVBG EVGO FSR FOXA GENI GFS HAIN HR HSIC HLMN HNST IGT J SWIM LCII LITE NXST NKLA NOVT NVAX OTLY OLPX PAYO PRGO RDNT SCSC SEAS SQSP STER SHOO SLVM TPX TWKS TDG UAA WRBY WMG WAT WE
Afternoon: AFRM AGTI ABNB AKAM BIRD AMPL AMRS ANGI APPN ARRY AXON AZTA BTG BLND BLNK BE CDRE CARG CE CELH CLNE COMP CPNG CRCT CTOS CUTR DAR DIOD DUOL BROS EA EBS EDR ESE EXAS EXEL EXFY FLYW GPRO GO GH GXO HRB HALO HCAT HRT TWNK IAC ICFI ICHR NVTA IOVA IRBT JXN KGC LZ LNW LNC LPSN LAZR MNKD MQ MASI MTTR MRTX MODN NTRA NHI NKTR KIND OXY OLO LPRO ONL ORA PETQ PRIM PRA PTRA PUBM QTWO RXT RPD RVNC RNG RIVN SILK SUPN TTGT TOST MODG TWLO UPST VVX SPCE VRDN VTLE VZIO VTEX WTI WYNN XENE ZD ZIP
Wednesday (May 10)
Morning: DIBS BLDP BCO BAM CAMT CLBT CEVA COHR EBIX EXK EVRI FA GDRX HL KRNT LI LFST MLCO MIDD NABL NYT NOMD ODP PFGC RETA REYN RBLX SHCR SYNH TBLA TEVA SKIN VVV VCEL VERX VSH WEN WWW XMTR
Afternoon: ACVA ALRM ALGM DOX APP BYND CAKE CDE CPA CRSR CR LAW DM DV FLEX FRG G GRPN INO JAZZ MGNI MFC NTR NUVA OSUR PAAS PAR PYCR PLBY PRPL RPAY RBA HOOD SONO SOVO STE STKL TTEK TTD COOK U VUZI DIS
Thursday (May 11)
Morning: FLWS AQN ATHM CRL CYBR ENTG FVRR HAE HIMX HLLY JD KELYA DNUT EYE NICE NVMI PKI PGTI TPR TNK USFD UTZ YETI
Afternoon: EGHT ARLO GEN HRTX INDI NWSA SANM SLF
Friday (May 12)
Morning: EMBC SPB
Asia & Europe detail:
Asia: Nikkei -0.7%, Hang Seng +1.2%, Shanghai Composite +1.8%
Equity indices in the Asia-Pacific region began the week on a mostly higher note. China's Agriculture Ministry is taking steps to stabilize this year's grain supply. Japan's Services PMI remained in expansionary territory for the seventh month in a row in the April reading. Japan's Prime Minister Kishida met with South Korea's President Yoon. Leaders from China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan will take part in the Central Asia summit at the end of next week.
In economic data:
China's April FX Reserves $3.205 trln (expected $3.192 trln; last $3.184 trln)
Japan's April Services PMI 55.4 (expected 54.9; last 55.0)
Australia's March Building Approvals -0.1% m/m (expected 3.0%; last 3.9%) and April NAB Business Confidence 0, as expected (last -1). April NAB Business Survey 14 (expected 9; last 16)
---Equity Markets---
Japan's Nikkei: -0.7%
Hong Kong's Hang Seng: +1.2%
China's Shanghai Composite: +1.8%
India's Sensex: +1.2%
South Korea's Kospi: +0.5%
Australia's ASX All Ordinaries: +0.8%
---FX---
USD/JPY: +0.1% to 135.00
USD/CNH: +0.1% to 6.9227
USD/INR: +0.1% to 81.74
Europe: DAX +0.2%, FTSE CLOSED, CAC +0.3%
Major European indices trade in the green while the U.K.'s FTSE is closed for a bank holiday. European Central Bank policymaker Knot said that rate hikes have started to have an effect, but more increases will be needed to contain inflation. He added that the 2.0% inflation goal could be reached in 2025. Fitch lowered the long-term rating of the European Financial Stability Facility to AA- from AA. The Italian Treasury may reduce its stake in BMPS.
In economic data:
Eurozone's May Sentix Investor Confidence -13.1 (expected -8.0; last -8.7)
Germany's March Industrial Production -3.4% m/m (expected -1.3%; last 2.1%); 1.6% yr/yr (expected -0.5%; last 0.8%)
---Equity Markets---
STOXX Europe 600: +0.4%
Germany's DAX: +0.2%
U.K.'s FTSE 100: CLOSED
France's CAC 40: +0.3%
Italy's FTSE MIB: +0.3%
Spain's IBEX 35: +0.7%
---FX---
EUR/USD: +0.3% to 1.1048
GBP/USD: +0.3% to 1.2660
USD/CHF: -0.2% to 0.8864