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10/02/23 Briefing

The S&P 500 futures are down 27 points and are trading 0.7% below fair value. The Nasdaq 100 futures are down 135 points and are trading 1.1% below fair value. The Dow Jones Industrial Average futures are down 162 points and are trading 0.4% below fair value.

Equity futures indicate a lower open following yesterday's reversal that took the S&P 500 below 4,100. Investors are still trading cautiously.

Oil prices rose sharply overnight ($79.71/bbl, +1.65, +2.1%) following reports that Russia is aiming to lower its March oil output by 500,000 barrels, according to Bloomberg, in response to sanctions.

Treasury yields remain elevated, keeping pressure on the equity market. The 2-yr note yield sits at 4.51% and the 10-yr note yield is at 3.70%. The U.S. Dollar Index is up 0.3% to 103.48.

Market participants will receive the following economic data today:

  • 10:00 ET: February Preliminary University of Michigan Consumer Sentiment (Briefing.com consensus 65.0; prior 64.9)

  • 14:00 ET: January Treasury Budget (prior -$85.0B)

In corporate news:

  • Lyft (LYFT 11.05, -5.17, -31.9%): misses by $0.89, beats on revs, Active Riders up 8.7%; guides Q1 revs below consensus, says guidance reflects seasonality and lower prices, and "different insurance renewal timing"

  • PayPal (PYPL 78.87, +0.45, +0.6%): beats by $0.04, reports revs in-line; guides Q1 EPS above consensus, revs in-line; guides FY23 EPS above consensus; announces that President and CEO Dan Schulman has informed the Board of Directors of his intention to retire from PayPal on December 31, 2023, and that he will work with the Board on a smooth leadership transition

  • Expedia Group (EXPE 114.70, -3.01, -2.6%): misses by $0.44, misses on revs

  • Cloudflare (NET 62.50, +4.33, +7.4%): beats by $0.01, reports revs in-line; guides Q1 EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

  • Mohawk (MHK 118.90, -2.57, -2.1%): beats by $0.03, misses on revs

  • Dexcom (DXCM 111.14, +3.90, +3.6%): beats by $0.06, reports revs in-line; guides FY23 revs in-line

  • Affirm (AFRM 12.76, -0.53, -4.0%): downgraded to Equal-Weight from Overweight at Morgan Stanley

  • Doximity (DOCS 34.80, -1.61, -4.4%): beats by $0.05, beats on revs; guides Q4 revs below consensus, provides preliminary guidance for FY24

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mostly lower note. Japan's Nikkei: +0.3% (+0.6% for the week), Hong Kong's Hang Seng: -2.0% (-2.2% for the week), China's Shanghai Composite: -0.3% (-0.1% for the week), India's Sensex: -0.2% (-0.3% for the week), South Korea's Kospi: -0.5% (-0.4% for the week), Australia's ASX All Ordinaries: -0.8% (-1.8% for the week).

  • In economic data:

  • China's January CPI 0.8% m/m (expected 0.7%; last 0.0%); 2.1% yr/yr (expected 2.2%; last 1.8%). January PPI -0.8% yr/yr (expected -0.5%; last -0.7%). January new loans CNY4.90 trln (expected CNY4.00 trln; last CNY1.40 trln) and outstanding loan growth 11.3% yr/yr (expected 11.0%; last 11.1%). January total social financing CNY5.98 trln (expected CNY5.40 trln; last CNY1.31 trln)

  • Japan's January PPI 0.0% m/m (expected 0.3%; last 0.7%); 9.5% yr/yr (expected 9.6%; last 10.5%)

  • New Zealand's January Electronic Card Retail Sales 2.6% m/m (last -2.3%); 2.7% yr/yr (last 4.8%). January Business PMI 50.8 (last 47.2)


  • In news:

  • The U.S. government is reportedly looking to implement restrictions on U.S. investment in Chinese advanced technology.

  • Komatsu reported that excavator demand in China decreased on a yr/yr basis for the eleventh month in a row.

  • Bank of Japan Deputy Governor Amamiya reiterated that current easing should continue and that there is still a way to go until stable inflation is reached.

  • Nominees for the next BoJ governor will be submitted to parliament early next week with hearings in the lower house expected to take place on February 24.



  • Major European indices trade on a broadly lower note. STOXX Europe 600: -1.4% (-1.1% week-to-date), Germany's DAX: -1.5% (-1.2% week-to-date), U.K.'s FTSE 100: -0.7% (-0.6% week-to-date), France's CAC 40: -1.3% (-2.0% week-to-date), Italy's FTSE MIB: -1.3% (+0.8% week-to-date), Spain's IBEX 35: -1.8% (-1.6% week-to-date).

  • In economic data:

  • U.K.'s Q4 GDP 0.0% qtr/qtr, as expected (last -0.2%); 0.4% yr/yr, as expected (last 1.9%). Q4 Business Investment 4.8% qtr/qtr (expected -0.3%; last -3.2%); 13.2% yr/yr (last 5.1%). December Industrial Production 0.3% m/m (expected -0.2%; last 0.1%); -4.0% yr/yr (expected -5.3%; last -4.3%). December trade deficit GBP19.27 bln (expected deficit of GBP16.40 bln; last deficit of GBP14.66 bln)

  • Italy's December Industrial Production 1.6% m/m (expected -0.1%; last -0.1%); 0.1% yr/yr (last -3.4%)


  • In news:

  • British Chancellor of the Exchequer Hunt repeated that inflation is expected to halve by the end of the year.

  • Meanwhile, European Central Bank policymaker Nagel repeated that core inflation is a decisive factor in setting monetary policy and that stopping rate hikes too soon would be a "cardinal sin."

  • Adidas is down more than 10.0% in Germany after warning that its revenue for the year could be reduced by more than a billion euros if the company fails to sell inventory from the Yeezy brand.



U.S. equity futures:

  • S&P 500 Futures: -27 @ 4,055

  • DJIA Futures: -149 @ 33,551

  • Nasdaq 100 Futures: -132 @ 12,250

Overseas:

  • Europe: DAX -1.5%, FTSE -0.7%, CAC -1.3%

  • Asia: Nikkei +0.3%, Hang Seng -2.0%, Shanghai Composite -0.3%

Commodities:

  • Crude Oil +1.69 @ 79.75

  • Nat Gas +0.020 @ 2.450

  • Gold -3.75 @ 1874.75

  • Silver -0.035 @ 22.108

  • Copper -0.0413 @ 4.0557

Earnings/Guidance:

  • AllianceBernstein ( AB 0.60% ) reports January 2023 AUM increased 5% to $680 bln; net inflows to Retail and Private Wealth were partially offset by modest Institutional net outflows

  • Alteryx ( AYX 0.56% ) beats by $0.33, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs above consensus

  • Apartment Income REIT Corp. ( AIRC 0.77% ) reports Q4 results, revs rose 7% yr/yr

  • Artisan Partners Asset Mgmt ( APAM 1.59% ) reports that its preliminary assets under management as of January 31, 2023 totaled $138.1 bln

  • Bloom Energy ( BE 1.05% ) beats by $0.16, beats on revs; guides FY23 revs in-line

  • Brighthouse Financial ( BHF 1.03% ) beats by $1.20, misses on revs

  • Cabot ( CBT 0.79% ) misses by $0.01, beats on revs; reaffirms FY23 EPS guidance

  • CareTrust REIT ( CTRE 1.75% ) beats by $0.01, beats on revs

  • Chemours ( CC 4.12% ) misses by $0.10, beats on revs; guides FY23 EPS in-line

  • ChipMOS TECHNOLOGIES ( IMOS 0.97% ) reports January revenues declined 41.5% yr/yr to NT$1.33 bln

  • Cloudflare ( NET 0.17% ) beats by $0.01, reports revs in-line; guides Q1 EPS in-line, revs in-line; guides FY23 EPS in-line, revs in-line

  • Construction Partners ( ROAD 1.98% ) beats by $0.01, beats on revs; raises lower end of prior FY23 revenue guidance

  • Corp Office Props ( OFC 2.52% ) beats by $0.01, misses on revs; guides Q1 FFO below consensus; guides FY23 FFO below consensus

  • Corsair Gaming ( CRSR 2.51% ) beats by $0.04, beats on revs; guides FY23 revs in-line

  • Coursera ( COUR 6.23% ) beats by $0.08, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus

  • Cousins Prop ( CUZ 2.24% ) beats by $0.01, reports revs in-line; guides FY23 FFO in-line

  • Dexcom ( DXCM 2.37% ) beats by $0.06, reports revs in-line; guides FY23 revs in-line

  • Doximity ( DOCS 2.31% ) beats by $0.05, beats on revs; guides Q4 revs below consensus, provides preliminary guidance for FY24

  • Enbridge ( ENB 0.58% ) misses by CAD0.10; raises dividend

  • Equity Residential ( EQR 1.36% ) misses by $0.01, reports revs in-line; guides Q1 FFO below consensus; guides FY23 FFO in-line

  • Essent Group ( ESNT 1.26% ) misses by $0.12, misses on revs

  • Expedia Group ( EXPE 1.21% ) misses by $0.44, misses on revs

  • Flowers Foods ( FLO 0.55% ) reports EPS in-line, misses on revs; guides FY23 EPS below consensus, revs above consensus

  • Flowserve ( FLS 1.97% ) sees Q4 EPS and revs above consensus; sees FY23 EPS in line

  • Fortis ( FTS 0.97% ) beats by $0.20

  • Franklin Resources ( BEN 2.13% reports preliminary month-end assets under management of $1,451.9 bln at January 31, 2023, compared to $1,387.7 bln at December 31, 2022

  • Genpact ( G 0.64% ) beats by $0.02, beats on revs; guides FY23 EPS below consensus, revs in-line; ups dividend, increases share repurchase

  • Global Payments ( GPN 0.01% ) reports EPS in-line, beats on revs; guides FY23 EPS below consensus, revs above consensus

  • Honda Motor ( HMC 0.53% ) reports nine-month results; sales rise 17% yr/yr; sees FY23 revs above consensus

  • Invesco ( IVZ 2.63% ) reports preliminary assets under management of $1,482.7 bln for January 31, 2023, an increase of 5.2% versus previous month-end

  • IQVIA ( IQV 2.21% ) beats by $0.02, reports revs in-line; guides FY23 EPS below consensus, revs below consensus

  • Knowles ( KN 0.21% ) reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus

  • Lazard ( LAZ 1.15% ) reported January-end preliminary AUM totaled approximately $230.6 bln (vs $216.1 bln last month)

  • Lions Gate Entertainment (LGF.A) beats by $0.27, beats on revs

  • Lyft ( LYFT 3.16% ) misses by $0.89, beats on revs, Active Riders up 8.7%; guides Q1 revs below consensus, says guidance reflects seasonality and lower prices, and "different insurance renewal timing"

  • Magna ( MGA 0.52% ) misses by $0.17, reports revs in-line; guides FY23 revs in-line; raises dividend

  • Mettler-Toledo ( MTD 1.29% ) beats by $0.42, beats on revs; guides Q1 EPS mostly above consensus; guides FY23 EPS above consensus

  • Mohawk ( MHK 0.35% ) $0.03, misses on revs

  • MoneyGram ( MGI 0.28% ) sees Q4 EPS above single estimate

  • Motorola Solutions ( MSI 0.33% ) beats by $0.17, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY23 EPS in-line, revs above consensus

  • Mr. Cooper Group ( COOP 2.56% ) reports Q4 (Dec) results, misses on revs

  • Newell Brands ( NWL 3.50% ) beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus

  • News Corp. ( NWSA 1.39% ) misses by $0.04, misses on revs

  • Onto Innovation ( ONTO 0.52% ) beats by $0.23, reports revs in-line; guides Q1 EPS below consensus, revs below consensus

  • Original BARK Co. ( BARK 3.45% ) reports EPS in-line, revs in-line; guides Q4 revs below consensus; lowers FY23 revs guidance; plans to reduce workforce by approx. 12%

  • Oscar Health ( OSCR 7.09% ) beats by $0.14, membership grew 93% yr/yr

  • PayPal ( PYPL 1.63% ) beats by $0.04, reports revs in-line; guides Q1 EPS above consensus, revs in-line; guides FY23 EPS above consensus

  • Phillips Edison & Company ( PECO 1.69% ) beats by $0.02, beats on revs; guides FY23 FFO in-line

  • PROS Holdings ( PRO 0.25% ) beats by $0.15, beats on revs; guides Q1 EPS above consensus, revs below consensus; guides FY23 revs below consensus

  • Protolabs ( PRLB 4.34% ) beats by $0.05, beats on revs

  • Qualys ( QLYS 0.63% ) beats by $0.11, reports revs in-line; guides Q1 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs below consensus; increases repurchase program by $100 mln

  • RBC Bearings ( RBC 1.87% ) misses by $0.02, misses on revs; guides Q4 revs in-line

  • Regency Centers ( REG 2.38% ) reports FFO in-line; guides FY23 FFO in-line

  • Sensient ( SXT 4.24% ) misses by $0.06, misses on revs; guides FY23 revs in-line

  • Silvercorp Metals ( SVM 3.47% ) reports in-line results; beats on revs

  • SPS Commerce ( SPSC 0.17% ) beats by $0.09, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY23 EPS above consensus, revs in-line

  • SSR Mining ( SSRM 1.62% ) provides production guidance; produced 623,819 gold equivalent ounces in FY22; expects to produce 700-780K ounces in FY23; updates rolling three-year outlook to confirm 700K gold equivalent ounce platform

  • Spectrum Brands ( SPB 2.15% ) beats by $0.07, misses on revs; lowers FY23 revs below consensus

  • StepStone Group ( STEP 2.30% ) reports EPS in-line, beats on revs

  • Sylvamo ( SLVM 0.36% ) reports Q4 (Dec) results, misses on revs

  • Taiwan Semiconductor Manufacturing ( TSM 2.56% ) reports January revs increased 16.2% yr/yr to ~NT$200.05 bln

  • Terex ( TEX 0.02% ) beats by $0.22, beats on revs; guides FY23 EPS midpoint above consensus, revs above consensus; increases dividend 15%

  • Topgolf Callaway Brands ( MODG 1.45% ) misses by $0.11, beats on revs; guides Q1 revs in-line; guides FY23 revs in-line

  • Tucows ( TCX 2.65% ) approves $40 mln share repurchase program; announces Q4 earnings

  • Ventas ( VTR 2.56% ) reports FFO in-line, beats on revs; guides FY23 FFO below consensus

  • VeriSign ( VRSN 2.01% ) beats by $0.09, reports revs in-line

  • Victory Capital ( VCTR 2.23% ) beats by $0.01, beats on revs; increases quarterly dividend 28% to $0.32/share

  • W.P. Carey ( WPC 1.44% ) beats by $0.03, beats on revs; guides FY23 FFO above consensus

  • Yellow Corporation ( YELL 6.20% ) misses by $0.20 (two estimates), misses on revs (two estimates)

  • Yelp ( YELP 3.02% ) misses GAAP EPS by $0.01, reports revs in-line; guides FY23 revs above consensus

News:

  • Japan selected Kazuo Ueda as new head of Bank of Japan, according to Financial Times

  • Russia aiming to lower March oil output by 500,000 barrels, according to Bloomberg

  • Allegion ( ALLE 1.31% ) increases quarterly dividend to $0.45/share from $0.41/share

  • Amedisys ( AMED 1.22% ) has authorized a stock repurchase program, under which the Company may repurchase up to $100 mln of its outstanding common stock through December 31, 2023

  • Argo Group ( ARGO 0.07% ) appoints Emilio Gnecco as CFO, effective as of February 8, 2023

  • Azul S.A. ( AZUL 12.80% ) reports January traffic rose 21.3% yr/yr

  • Barclays ( BCS 0.00% ) being investigated over anti-money laundering systems, according to Financial Times

  • Bayer AG ( BAYRY ) receives expanded indication in EU

  • Citigroup ( C 2.29% ): Texas removes Citigroup from group of banks expected to handle $3.4 bln municipal bond transaction because of its stance on gun policy, according to Bloomberg

  • CTS Corp ( CTS 1.04% ) authorizes new share repurchase program to repurchase up to $50 million of its common stock

  • FTC Solar ( FTCI 1.72% ) and Taihua New Energy announce a joint venture agreement for the creation of Alpha Steel LLC

  • Galapagos NV ( GLPG 7.34% ) presents encouraging data at the European Society for Blood and Marrow Transplantation-European Hematology Association 5th European CAR T-cell Meeting in Rotterdam

  • GlaxoSmithKline ( GSK 0.30% ) receives FDA approval for Jemperli

  • Intel ( INTC 1.81% ) aiming to increase $1.5 bln investment in Vietnam, according to Reuters

  • KalVista Pharmaceuticals' ( KALV 3.28% ) phase 2 trial data evaluating the efficacy and safety of oral sebetralstat for the on-demand treatment of hereditary angioedema (HAE) attacks has been published

  • Micron ( MU 0.12% ) discloses executive pay cuts

  • Microsoft ( MSFT 1.17% ) started implementing layoffs that were announced last month, according to Bloomberg

  • Microsoft ( MSFT 1.17% ) laying off industrial metaverse team it formed four months ago, according to The Information

  • Newell Brands ( NWL 3.50% ) announces the appointment of Chris Peterson, currently President, to serve as President and Chief Executive Officer, effective upon the conclusion of the company's 2023 Annual Meeting of Stockholders on May 16th, 2023

  • Park Aerospace ( PKE 1.07% ) raises quarterly dividend by 25%; declares special dividend for $1.00 per share

  • PayPal ( PYPL 1.63% ) announces that President and CEO Dan Schulman has informed the Board of Directors of his intention to retire from PayPal on December 31, 2023, and that he will work with the Board on a smooth leadership transition

  • Phathom Pharmaceuticals ( PHAT 0.60% ) provides regulatory updates

  • Robert Half ( RHI 2.00% ) increases quarterly cash dividend to $0.48/share from $0.43/share and authorizes the repurchase of up to an additional 10 mln shares of the company's common stock

  • Roche Hldg ( RHHBY ): New phase III data show Roche's Vabysmo rapidly improved vision and reduced retinal fluid in people with retinal vein occlusion

  • Takeda Pharma ( TAK 0.87% ) received a notification from the Government of Japan cancelling the purchase of additional doses of the COVID-19 vaccine Nuvaxovid Intramuscular Injection

  • Tractor Supply ( TSCO 1.09% ) announces three-year contract extension for President and CEO Hal Lawton and Board succession plans

  • Weyerhaeuser ( WY 0.68% ) raises quarterly dividend by 5.6% to $0.19 per share

M&A:

  • Amazon ( AMZN 1.81% ) mulling acquisition of MX Player, according to Tech Crunch

  • Equifax ( EFX 6.12% ) signs definitive agreement to acquire Boa Vista Servios for $596 mln

  • indie Semiconductor ( INDI 2.65% ) has entered a definitive agreement to purchase GEO Semiconductor

  • Flowserve ( FLS 1.97% ) and Velan have entered into a definitive agreement under which Flowserve will acquire Velan in an all cash transaction valued at ~$245 mln

  • Kroger ( KR 0.41% ) and Albertsons (ACI) mulling divestments amid deal review, according to Reuters

  • Toronto-Dominion Bank ( TD 0.32% ) and First Horizon (FHN) extend outside date of proposed transaction to May 27

  • Transocean ( RIG 1.99% ) to make investment in Global Sea Mineral Resources in exchange for a non-controlling interest in the company

Syndicate:

  • Altisource Portfolio Solutions ( ASPS 8.12% ) announces proposed public offering of common stock

  • Amgen ( AMGN 0.08% ) files mixed securities shelf offering; also files to sell common stock by selling securityholders

  • Terreno Realty ( TRNO 0.09% ) prices offering of 5.0 mln shares of common stock at $62.50 per share

  • WisdomTree ( WT 1.36% ) announces private offering of $130.0 mln of convertible senior notes

IPOs:

  • Priced to Trade:

  • Enlight Renewable Energy (Nasdaq: ENLT): The developer of a renewable energy platform for solar energy, wind power and energy storage priced its 14.0 M share IPO at $18, below the $21 expected price.

  • Mineralys Therapeutics (Nasdaq: MLYS): The clinical-stage biopharmaceutical company focused on developing medicines to target diseases driven by abnormally elevated aldosterone priced its upsized 12.0 M share IPO at $16, the high end of the $14-$16 expected price range.


Gapping Up/Down

  • Gapping up:

  • AYX +10.2%, YELP +9.7%, LGF.A +9.1%, NET +6.9%, BE +6.5%, INDI +5.7%, CRSR +5.4%, SVM +5.2%, REG +5%, CUZ +4.7%, DXCM +4.4%, MODG +4.3%, RICK +3.4%, TEX +3%, VCTR +2.6%, SPSC +2.5%, ROAD +2.4%, VTR +2%, CTRE +2%, MSI +1.9%, PRLB +1.9%, RIG +1.8%, AZUL +1.8%, EQR +1.8%, RHI +1.6%, AB +1.6%, AMED +0.9%, BHF +0.8%


  • Gapping down:

  • LYFT -32.9%, YELL -23.1%, APPH -18.2%, PHAT -17.9%, ASPS -13.6%, BARK -12.5%, KN -7.2%, DOCS -6.4%, ONTO -4.9%, COUR -4.7%, VRSN -3.9%, UBER -3.6%, NWSA -3.4%, OSCR -3.2%, TRNO -3.1%, HMC -3%, WT -2.7%, BEN -2.7%, ABNB -2.6%, PRO -2.6%, AMC -2.4%, EXPE -2.2%, MHK -2.1%, MUSA -2%, RBC -2%, FTCI -1.8%, MSFT -1.7%, OFC -1.7%, FBP -1.4%, DASH -1.4%, AGRO -1.3%, FLO -1.1%, IVZ -1%, BKNG -1%, MTD -1%, GLPG -0.9%, TSM -0.9%, MGA -0.9%



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

  • Upgrades

  • AbbVie (ABBV) upgraded to Market Perform from Underperform at SVB Securities; tgt raised to $153

  • Equinor (EQNR) upgraded to Equal-Weight from Underweight at Morgan Stanley

  • First American Financial (FAF) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $72

  • Five Below (FIVE) upgraded to Buy from Accumulate at Gordon Haskett; tgt raised to $240

  • FleetCor (FLT) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $254

  • Masco (MAS) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $57

  • Thomson Reuters (TRI) upgraded to Sector Outperform from Sector Perform at Scotiabank

  • Tractor Supply (TSCO) upgraded to Buy from Accumulate at Gordon Haskett; tgt raised to $255

  • Walmart (WMT) upgraded to Accumulate from Hold at Gordon Haskett; tgt raised to $155


  • Downgrades:

  • Affirm (AFRM) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $15

  • ASE Technology (ASX) downgraded to Hold from Buy at China Renaissance

  • Black Hills Corp (BKH) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $68

  • Bloom Energy (BE) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $27

  • Coursera (COUR) downgraded to Neutral from Overweight at Cantor Fitzgerald; tgt lowered to $16

  • Dollar General (DG) downgraded to Accumulate from Buy at Gordon Haskett; tgt lowered to $245

  • Exact Sciences (EXAS) downgraded to Neutral from Outperform at Credit Suisse; tgt raised to $70

  • Floor & Decor (FND) downgraded to Hold from Accumulate at Gordon Haskett; tgt $90

  • Fluence (FLNC) downgraded to Neutral from Outperform at Robert W. Baird; tgt $25

  • Gates Industrial (GTES) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

  • GitLab (GTLB) downgraded to Hold from Buy at Needham

  • Globus Medical (GMED) downgraded to Hold from Buy at Loop Capital; tgt lowered to $70

  • Globus Medical (GMED) downgraded to Hold from Buy at Needham

  • Globus Medical (GMED) downgraded to Neutral from Buy at BTIG Research

  • Intercontinental Hotels Group (IHG) downgraded to Hold from Buy at Stifel

  • Interpublic (IPG) downgraded to Market Perform from Outperform at MoffettNathanson; tgt raised to $37

  • Lumentum (LITE) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $66

  • Mercer Intl (MERC) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $15.50

  • Sterling Check Corp. (STER) downgraded to Hold from Buy at Needham


  • Others:

  • Leonardo DRS (DRS) initiated with a Buy at Canaccord Genuity; tgt $17


Upcoming Events:

  • Econ Data:

  • 10:00 ET: Univ. of Michigan Consumer Sentiment - Prelim for Feb (Briefing.com Consensus 65.0; Prior 64.9)

  • 14:00 ET: Treasury Budget for Jan (Briefing.com Consensus NA; Prior -$85.0B)


  • 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 +0.3%, Hang Seng -2.0%, Shanghai Composite -0.3%

Equity indices in the Asia-Pacific region ended the week on a mostly lower note. The U.S. government is reportedly looking to implement restrictions on U.S. investment in Chinese advanced technology. Komatsu reported that excavator demand in China decreased on a yr/yr basis for the eleventh month in a row. Bank of Japan Deputy Governor Amamiya reiterated that current easing should continue and that there is still a way to go until stable inflation is reached. Nominees for the next BoJ governor will be submitted to parliament early next week with hearings in the lower house expected to take place on February 24.

  • In economic data:

  • China's January CPI 0.8% m/m (expected 0.7%; last 0.0%); 2.1% yr/yr (expected 2.2%; last 1.8%). January PPI -0.8% yr/yr (expected -0.5%; last -0.7%). January new loans CNY4.90 trln (expected CNY4.00 trln; last CNY1.40 trln) and outstanding loan growth 11.3% yr/yr (expected 11.0%; last 11.1%). January total social financing CNY5.98 trln (expected CNY5.40 trln; last CNY1.31 trln)

  • Japan's January PPI 0.0% m/m (expected 0.3%; last 0.7%); 9.5% yr/yr (expected 9.6%; last 10.5%)

  • New Zealand's January Electronic Card Retail Sales 2.6% m/m (last -2.3%); 2.7% yr/yr (last 4.8%). January Business PMI 50.8 (last 47.2)


---Equity Markets---

  • Japan's Nikkei: +0.3% (+0.6% for the week)

  • Hong Kong's Hang Seng: -2.0% (-2.2% for the week)

  • China's Shanghai Composite: -0.3% (-0.1% for the week)

  • India's Sensex: -0.2% (-0.3% for the week)

  • South Korea's Kospi: -0.5% (-0.4% for the week)

  • Australia's ASX All Ordinaries: -0.8% (-1.8% for the week)

---FX---

  • USD/JPY: -0.6% to 130.83

  • USD/CNH: +0.4% to 6.8200

  • USD/INR: +0.1% to 82.54

Europe: DAX -1.5%, FTSE -0.7%, CAC -1.3%

Major European indices trade on a broadly lower note. British Chancellor of the Exchequer Hunt repeated that inflation is expected to halve by the end of the year. Meanwhile, European Central Bank policymaker Nagel repeated that core inflation is a decisive factor in setting monetary policy and that stopping rate hikes too soon would be a "cardinal sin." Adidas is down more than 10.0% in Germany after warning that its revenue for the year could be reduced by more than a billion euros if the company fails to sell inventory from the Yeezy brand.

  • In economic data:

  • U.K.'s Q4 GDP 0.0% qtr/qtr, as expected (last -0.2%); 0.4% yr/yr, as expected (last 1.9%). Q4 Business Investment 4.8% qtr/qtr (expected -0.3%; last -3.2%); 13.2% yr/yr (last 5.1%). December Industrial Production 0.3% m/m (expected -0.2%; last 0.1%); -4.0% yr/yr (expected -5.3%; last -4.3%). December trade deficit GBP19.27 bln (expected deficit of GBP16.40 bln; last deficit of GBP14.66 bln)

  • Italy's December Industrial Production 1.6% m/m (expected -0.1%; last -0.1%); 0.1% yr/yr (last -3.4%)


---Equity Markets---

  • STOXX Europe 600: -1.4% (-1.1% week-to-date)

  • Germany's DAX: -1.5% (-1.2% week-to-date)

  • U.K.'s FTSE 100: -0.7% (-0.6% week-to-date)

  • France's CAC 40: -1.3% (-2.0% week-to-date)

  • Italy's FTSE MIB: -1.3% (+0.8% week-to-date)

  • Spain's IBEX 35: -1.8% (-1.6% week-to-date)

---FX---

  • EUR/USD: -0.4% to 1.0696

  • GBP/USD: -0.1% to 1.2105

  • USD/CHF: +0.1% to 0.9229


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