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11/05/22 Briefing


The S&P 500 futures are up nicely, trading 55 points, or 1.4%, above fair value in front of the Consumer Price Index (CPI) report for April at 8:30 a.m. ET.

The Briefing.comconsensus is projecting a modest 0.2% increase for total CPI and a 0.4% increase for core CPI, which excludes food and energy. Based on the positive bias in the futures market, and a sharp decline in Treasury yields, the market might be suspecting a relatively good inflation report that tempers rate-hike expectations.

The 2-yr yield is down five basis points to 2.58%, and the 10-yr yield is down seven basis points to 2.92%. The U.S. Dollar Index is down 0.3% to 103.60. WTI crude futures are up 4.1%, or $4.06, to $103.83/bbl amid news that Shanghai has reported no community spread of COVID-19, according to Bloomberg.

Investors will also receive the Treasury Budget for April at 2:00 p.m. ET. Earlier, the weekly MBA Mortgage Applications Index increased 2.0% following a 2.5% increase in the prior week.

Again, not all remains good in the growth-stock space. Coinbase (COIN 62.43, -10.56, -14.5%), Unity Software (U 38.21, -9.92, -20.6%), and Allbirds (BIRD 3.84, -0.68, -15.0%) are each down sharply in pre-market action following their disappointing earnings reports and/or guidance.

In other developments, the Senate confirmed Lisa Cook to the Fed Board, and the House passed a bill to provide $40 billion in aid for Ukraine, sending it to the Senate where it is expected to pass later this week.

In U.S. Corporate news:

  • Coinbase Global (COIN 62.43, -10.56): -14.5% after missing top and bottom-line estimates and noting that retail MTU and total Trading Volume will be lower in 2Q22 compared to 1Q22.

  • Unity Software (U 38.21, -9.92): -20.6% after guiding revenue for Q2 and FY22 below consensus. Q1 results were in-line with expectations.

  • Allbirds (BIRD 3.84, -0.68): -15.0% after missing EPS estimates and guiding revenue for Q2 and FY22 below consensus.

  • Roblox (RBLX 22.73, -0.46): -2.0% after missing bookings estimates.

  • Wynn Resorts (WYNN 62.37, +0.72): +1.2% after observing that the positive momentum in Las Vegas has continued into Q2. WYNN missed top and bottom-line estimates.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: +0.2% Hong Kong's Hang Seng: +1.0% China's Shanghai Composite: +0.8% India's Sensex: -0.5% South Korea's Kospi: -0.2% Australia's ASX All Ordinaries: +0.3%.

  • In economic data:

  • China's April CPI 0.4% m/m (expected 0.2%; last 0.6%); 2.1% yr/yr (expected 1.8%; last 1.5%). April PPI 8.0% yr/yr (expected 7.7%; last 8.3%) o Japan's March Leading Index 0.9% m/m (last -1.2%) and Coincident Indicator 0.2% m/m (last 0.5%)

  • South Korea's April Unemployment Rate 2.7% (last 2.7%)

  • Australia's May Westpac Consumer Sentiment -5.6% (last -0.9%)


  • In news:

  • Toyota forecast a 20% drop in profit for the year. Consumer confidence in Australia fell to the lowest level since August 2020.

  • China's CPI increased at its fastest yr/yr pace since November. Press reports indicate that Softbank is down about $25 bln on its investments for the year.

  • South Korea is on track to pass an extra budget without bond issuance.

  • President Yoon acknowledged that prices are a concern and that ways to contain inflation need to be considered.



  • Major European indices trade on a firmly higher note. STOXX Europe 600: +1.3% Germany's DAX: +1.3% U.K.'s FTSE 100: +1.1% France's CAC 40: +1.9% Italy's FTSE MIB: +2.2% Spain's IBEX 35: +1.4%.

  • In economic data:

  • Germany's April CPI 0.8% m/m, as expected (last 2.5%); 7.4% yr/yr, as expected (last 7.3%)


  • In news:

  • Germany's CPI increased at its fastest yr/yr pace since 1974 in the April reading.

  • A few European Central Bank policymakers spoke in favor of raising rates while President Lagarde repeated her expectations for ending asset purchases in early Q3.

  • The U.K.'s National Institute of Economic and Social Research noted that the Bank of England's base rate will need to be at 2.5% until the middle of the decade to curtail inflation.



U.S. equity futures:

  • S&P 500 Futures: +49 @ 4,050

  • DJIA Futures: +339 @ 32,500

  • Nasdaq 100 Futures: +171 @ 12,517

Overseas:

  • Europe: DAX +1.3%, FTSE +1.1%, CAC +1.9%

  • Asia: Nikkei +0.2%, Hang Seng +1.0%, Shanghai Composite +0.8%

Commodities:

  • Crude Oil +4.26 @ 104.02

  • Nat Gas +0.242 @ 7.627

  • Gold +10.93 @ 1851.93

  • Silver +0.367 @ 21.791

  • Copper +0.0810 @ 4.2355

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • 8x8 (EGHT) beats by $0.05, reports revs in-line; guides Q1 revs in-line; guides FY23 revs in-line

  • a.k.a. Brands (AKA) beats by $0.01, beats on revs; guides Q2 revs below consensus; reaffirms FY22 revs guidance

  • Alcon (ALC) beats by $0.15, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • Allbirds (BIRD) misses by $0.03, beats on revs; guides Q2 revs below consensus; guides FY22 revs below consensus

  • Arlo Technologies (ARLO) beats by $0.04, beats on revs; guides Q2 EPS in-line, revs above consensus

  • Array Tech (ARRY) beats by $0.09, beats on revs; guides FY22 EPS below consensus, revs in-line

  • Arrowhead (ARWR) beats by $0.23, beats on revs

  • Atotech (ATC) beats by $0.15, reports revs in-line

  • Axon (AXON) beats by $0.16, beats on revs; guides FY22 revs in-line

  • Boot Barn Holdings (BOOT) beats by $0.16, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus

  • BRP Group (BRP) reports Q1 (Mar) results, beats on revs

  • Callaway Golf (ELY) beats by $0.12, beats on revs; guides Q2 revs above consensus; raises FY22 revs above consensus

  • Canoo (GOEV) misses by $0.10; adds that due to the timing of its announced funding and the 2014 FASB accounting rule, there is a substantial doubt about its ability to continue as a going concern

  • Celsius (CELH) beats by $0.06, beats on revs

  • Coinbase Global (COIN) misses by $2.82, misses on revs, MTUs down 44% sequentially; believes retail MTU and total Trading Volume will be lower in 2Q22 compared to 1Q22; reiterates FY22 outlook

  • Collegium Pharmaceutical (COLL) reports Q1 (Mar) results, beats on revs; guides FY22 revs in-line

  • Cricut (CRCT) reports EPS in-line, misses on revs

  • Cutera (CUTR) misses by $0.30, beats on revs; reaffirms FY22 revs guidance

  • Darling Ingredients (DAR) beats by $0.06, beats on revs

  • Doma (DOMA) misses by $0.05, misses on revs

  • DoubleVerify (DV) misses by $0.04, beats on revs; guides Q2 revs above consensus; guides FY22 revs above consensus

  • Douglas Elliman (DOUG) misses by $0.01, beats on revs

  • Electronic Arts (EA) beats by $0.17, reports revs in-line; guides Q1 EPS above consensus, revs below consensus; guides FY23 EPS below consensus, revs in-line

  • Endeavour Silver (EXK) misses by CAD 0.23

  • EVgo Inc. (EVGO) misses by $0.06, beats on revs; reaffirms FY22 revs guidance

  • Evolus (EOLS) beats by $0.15, beats on revs; guides FY22 revs in-line

  • Exelixis (EXEL) beats by $0.07, misses on revs; guides FY22 revs in-line

  • Fidelity National (FNF) beats by $0.09, beats on revs

  • First Advantage Corp. (FA) beats by $0.02, beats on revs, raises FY22 revenue, adjusted net income guidance

  • Fiverr (FVRR) beats by $0.03, reports revs in-line; guides Q2 revs below consensus; guides FY22 revs below consensus

  • Flywire (FLYW) misses by $0.06, beats on revs; guides Q2 revs above consensus; guides FY22 revs above consensus

  • GlobalFoundries (GFS) beats by $0.18, beats on revs; guides Q2 EPS above consensus, revs above consensus

  • Globus Medical (GMED) misses by $0.05, misses on revs; reaffirms FY22 EPS guidance, revs guidance

  • Golub Capital (GBDC) beats by $0.09, misses on revs

  • Grocery Outlet (GO) beats by $0.02, beats on revs; slightly raises FY22 revenue, same store sales growth, and EPS guidance

  • GrowGeneration (GRWG) reports Q1 (Mar) results, misses on revs; lowers FY22 revenue guidance below consensus, lowers adjusted EBITDA guidance

  • H & R Block (HRB) beats by $0.30, beats on revs; raises FY22 revs above consensus

  • Halozyme Therapeutics (HALO) misses by $0.02, misses on revs; guides FY22 EPS below consensus, revs below consensus

  • Health Catalyst (HCAT) beats by $0.05, beats on revs; guides Q2 revs in-line; reaffirms FY22 revs guidance

  • ICHOR Corporation (ICHR) misses by $0.20, misses on revs; guides Q2 EPS below consensus, revs in-line

  • Inter Parfums (IPAR) beats by $0.13, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • Jamf Holding (JAMF) beats by $0.02, beats on revs; guides Q2 revs above consensus; guides FY22 revs above consensus

  • Kinross Gold (KGC) reports EPS in-line, misses on revs, produced 409,857 Au eq. oz.; expects to average two million Au eq. oz. per year in 2025-2030

  • Kodiak Sciences (KOD) misses by $0.27, ends quarter with $671.7 million of cash and cash equivalents

  • Kornit Digital (KRNT) beats by $0.03, beats on revs

  • Krispy Kreme, Inc. (DNUT) beats by $0.01, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • Liberty Global (LBTYA) reports Q1 (Mar) results

  • Life Time (LTH) beats by $0.09, reports revs in-line

  • Light & Wonder (LNW) beats by $0.42, beats on revs

  • MasterCraft (MCFT) beats by $0.15, beats on revs; guides FY22 EPS above consensus, revs above consensus

  • Matterport (MTTR) beats by $0.04, beats on revs; guides Q2 EPS below consensus, revs below consensus; reaffirms FY22 EPS guidance, revs guidance

  • Model N (MODN) beats by $0.07, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY22 EPS above consensus, revs above consensus

  • NanoString Technologies (NSTG) reports Q1 (Mar) results, revs in-line; guides FY22 revs below consensus

  • Nextdoor (KIND) reports Q1 results, beat on revs; guides Q2 revs slightly below consensus

  • Nomad Foods (NOMD) beats by $0.05, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance

  • Occidental Petro (OXY) beats by $0.09, beats on revs

  • Olaplex (OLPX) beats by $0.02, beats on revs; reaffirms FY22 revs guidance

  • Olo Inc. (OLO) beats by $0.01, beats on revs; guides Q2 revs in-line; guides FY22 revs above consensus

  • OraSure (OSUR) misses by $0.15, beats on revs

  • Organogenesis (ORGO) misses by $0.06, beats on revs

  • PAR Technology (PAR) beats by $0.20, beats on revs

  • Paya Holdings (PAYA) beats by $0.01, beats on revs; guides FY22 revs in-line

  • Performance Food Group (PFGC) misses by $0.01, reports revs in-line; guides FY22 revs in-line

  • Perrigo (PRGO) misses by $0.09, beats on revs; provides FY22 guidance

  • PLBY Group (PLBY) beats by $0.19, beats on revs

  • PNM Resources (PNM) reaffirms FY22 and FY23 EPS outlooks ahead of investor meetings

  • Purple Innovation (PRPL) beats by $0.11, beats on revs; lowers FY22 revenue guidance

  • Rackspace Technology (RXT) beats by $0.01, reports revs in-line; guides Q2 EPS below consensus, revs below consensus

  • Repay Holdings (RPAY) misses by $0.02, reports revs in-line; reaffirms FY22 revs guidance

  • Roblox (RBLX) reports Q1 (Mar) results, misses on bookings

  • Rocket Companies (RKT) misses by $0.04, misses on revs

  • ScanSource (SCSC) beats by $0.37, beats on revs; raises FY22 revenue guidance above two analyst estimate

  • Switch (SWCH) misses by $0.01, reports revs in-line; reaffirms FY22 revs guidance

  • Sylvamo (SLVM) beats by $0.15, beats on revs

  • Takeda Pharma (TAK) reports FY22 results; beats on revs; sees FY23 revs above consensus

  • Telefonica Brasil (VIV) reports Q1 results; revs in-line

  • The Beauty Health Company (SKIN) misses by $0.07, beats on revs; raises FY22 revenue guidance, reaffirms adjusted EBITDA guidance

  • The RealReal (REAL) beats by $0.05, beats on revs; guides Q2 revs in-line; reaffirms FY22 revs guidance

  • The Trade Desk (TTD) beats by $0.07, beats on revs; guides Q2 revs in-line

  • Toyota Motor (TM) beats on top and bottom lines; sees FY23 EPS and revs below consensus

  • Turning Point Therapeutics (TPTX) reports EPS in-line, beats on revs

  • Unity Software (U) reports EPS in-line, revs in-line; guides Q2 revs below consensus; guides FY22 revs below consensus

  • Vuzix (VUZI) misses by $0.02, misses on revs

  • Welbilt (WBT) misses by $0.10, misses on revs

  • Welltower (WELL) reports FFO in-line, beats on revs; guides Q2 FFO in-line; declares dividend

  • Wendy's (WEN) misses by $0.01, misses on revs; reaffirms FY22 EPS guidance, revs guidance

  • Western Midstream (WES) beats by $0.14, beats on revs

  • Wolverine (WWW) beats by $0.02, beats on revs; guides FY22 EPS in-line, revs in-line

  • Wynn Resorts (WYNN) misses by $0.06, misses on revs

  • Yellow Corporation (YELL) reports Q1 (Mar) results, misses on revs

  • YETI Holdings (YETI) beats by $0.01, beats on revs; raises FY22 EPS guidance, guides revenue inline

  • Zai Lab (ZLAB) beats by $0.37, beats on revs

  • Zeta Global (ZETA) misses by $0.58, beats on revs; guides Q2 revs above consensus; raises FY22 revs above consensus

  • Ziff Davis (ZD) beats by $0.03, misses on revs; reaffirms FY22 EPS guidance, revs guidance


  • General News:

  • Shanghai has reported no community spread of COVID-19, according to Bloomberg

  • Several Fed officials have acknowledged they should have acted earlier and quicker to address inflation, according to the New York Times

  • House passes bill 368-57 to provide approximately $40 bln in funding for Ukraine; bill now heads to Senate where it is expected to pass late this week

  • Senate confirms Lisa Cook to the Fed Board by a vote of 51-50

  • TerraUSD stable coin plunged today

  • Algonquin Power & Utilities (AQN) unit expands renewables partnership with Meta (FB)

  • AllianceBernstein (AB) announces preliminary assets under management for April 2022 of $685 bln

  • Amicus Therapeutics (FOLD) announces that the U.S. Food and Drug Administration has extended the review period by 90 days for the Biologics License Application for cipaglucosidase alfa and the New Drug Application for miglustat, the two components of AT-GAA

  • Apollo (APO) aiming to provide $1 bln in financing for Twitter (TWTR) bid, according to Bloomberg

  • Arcellx (ACLX) doses first patient in ACLX-001 Phase 1 clinical trial

  • ARK Innovation (ARKK) ETF's Cathie Wood believes there will be a global recession, according to Reuters

  • Azul S.A. (AZUL) reported April traffic

  • Bayer AG (BAYRY): White House wants Supreme Court to reject BAYRY roundup appeal, according to Bloomberg

  • Blackrock (BLK) will not support most shareholder resolutions on climate change this year, according to Financial Times

  • Cameco (CCJ) increases ownership stake in Cigar Lake Mine

  • Cardlytics (CDLX) approves repurchase of up to $40.0 mln of its common stock

  • Citizens, Inc. (CIA) authorizes new $8 mln stock repurchase program

  • ConocoPhillips (COP) shareholders vote against emission reductions, according to Reuters

  • Copa Holdings (CPA) reports April traffic declined 3.9% compared to 2019

  • Dana (DAN) announces long-term strategic supply agreement with Lion Electric (LEV)

  • Eiger BioPharmaceuticals (EIGR) and AnGes announce that the companies entered into an agreement for the regulatory approval, marketing, and distribution of Zokinvy for the treatment of Hutchinson-Gilford progeria syndrome and processing-deficient progeroid laminopathies in Japan

  • Eli Lilly (LLY): FDA approves Lilly and Incyte's (INCY) Olumiant for the treatment of certain hospitalized patients with COVID-19

  • FMC Corp (FMC) receives pre-suit injunction in China for patent infringement

  • Freightcar America (RAIL) CEO to retire in 2023

  • Global Cord Blood (CO) announces receipt of petition from Blue Ocean Structure Investment

  • Google (GOOG) will have to pay 300 EU publishers for news content, according to Reuters

  • Hologic (HOLX) receives FDA approval for Aptima CMV Quant assay for human cytomegalovirus

  • IBM (IBM) announces collaboration agreement with Amazon Web Services

  • Invesco (IVZ) reports preliminary month-end assets under management of $1,476.1 bln as of April 30

  • Lazard (LAZ) reports that its preliminary assets under management as of April 30, 2022 totaled ~$236.6 bln

  • Mercury (MRCY) and Lockheed Martin (LMT) have signed an agreement to collaborate on the development and manufacture of new sensor processing technologies at Mercury's Geneva, Switzerland facility for a wide variety of applications such as radar signal processing, multi-sensor data fusion, artificial intelligence and situational awareness

  • Meta Platforms's (FB) Instagram introduces digital collectibles for NFTs

  • Neurocrine Biosciences (NBIX): FDA grants orphan designation for treatment of Huntington disease

  • Nuvve (NVVE) and Power Electronics announce an agreement to integrate Nuvve's vehicle-to-grid GIVe platform with Power Electronics charging station technology to help intelligently electrify vehicles and help achieve global decarbonization goals

  • Perrigo (PRGO) makes two announcements regarding the planned succession of its executive leadership team

  • Raytheon Technologies (RTX) awarded $270 mln Navy contract

  • Roche Hldg' (RHHBY) Genentech Reports Interim Results for Phase III SKYSCRAPER-01 Study in PD-L1-High Metastatic Non-Small Cell Lung Cancer

  • Sanofi (SNY) reports new nirsevimab data analyses reinforcing efficacy against RSV

  • Veru (VERU) announces that in a Pre-EUA meeting held May 10, 2022, FDA has agreed that the efficacy and safety data from the completed Phase 3 clinical study in hospitalized COVID-19 patients at high risk for acute respiratory distress syndrome are sufficient to support the submission of a request for Emergency Use Authorization

  • Volkswagen (VWAGY) to introduce new electric SUV, according to the Wall Street Journal

  • Workhorse Group (WKHS) and Amerit Fleet Solutions announce that they have finalized a purchase order for 10 battery electric vehicles to add to Amerit's fleet of EVolution Mobile Service Centers throughout California

  • Yum China (YUMC) invoked dispute resolution process with Yum! Brands (YUM) to resolve royalties charges on delivery and aggregator platform fees

  • Ziff Davis (ZD) announces that Sarah Fay, who has served as a Board member since 2018, has been appointed Chair of the Ziff Davis Board of Directors, effective immediately


  • M&A:

  • General Mills (GIS) has entered into a definitive agreement to acquire TNT Crust; financial terms were not disclosed

  • Light & Wonder (LNW) announces acquisition of Playzido; terms not disclosed

  • Switch (SWCH) confirms company will be taken private by DigitalBridge (DBRG) affiliate and IFM Investors for $34.25/share, valuing all-cash deal at approx. $11 bln


  • Syndicate:

  • 908 Devices (MASS) files for $200 mln mixed securities shelf offering

  • Canoo (GOEV) files mixed securities shelf offering

  • Coinbase Global (COIN) files mixed securities shelf offering

  • NIO (NIO) announces the expected listing date for its proposed secondary listing on the Singapore Exchange

  • Novanta (NOVT) files mixed securities shelf offering

  • Recursion Pharmaceuticals (RXRX) files mixed securities shelf offering

  • Ryerson (RYI) announces secondary offering of 3.5 mln common shares by selling stockholder

  • Tricida (TCDA) files for $350 mln mixed securities shelf offering

  • Werewolf Therapeutics (HOWL) files for $150 mln mixed securities shelf offering


  • IPOs:

  • Expected to Price:

  • ProFrac Holding (Nasdaq: PFHC): The energy services company providing hydraulic fracturing, completion services and other complementary products and services to upstream oil and gas companies is expected to price its 16.0 M share IPO between $21-$24.



Gapping Up/Down

  • Gapping up:

  • DM +23.3%, GSM +17.9%, NVVE +13.2%, PRPL+10.3%, PLBY +10.3%, CELH +8.4%, ELY +7.3%, MTTR +6.8%, ORGO +6.7%, HCAT +6.6%, CUTR+5.7%, SOFI +5.5%, PAYA +5.5%, ALC +5.1%, HRB+5.1%, CDLX +5%, TCDA +4.9%, CCJ +4.9%, GO+4.3%, GFS +4.3%, WYNN +4%, BOOT +4%, LBTYA+4%, NIO +3.6%, REAL +3.6%, ZETA +3.3%, RXT+3.1%, IVZ +3%, ABCL +3%, EGHT +2.7%, WKHS+2.6%, OSUR +2.3%, JXN +2.2%, MSP +2.2%, DOMA+2.1%, ARLO +2%, PAR +1.9%, LEV +1.6%, TRQ+1.6%, EA +1.3%, EXEL +1.2%, AXON +1.2%, KGC+1.1%, DAR +1%


  • Gapping down:

  • U -23.2%, BIRD -17.5%, ARRY -15.2%, GRWG-15.1%, COIN -14.4%, INO -12%, ICHR -10.2%, OLO-9.9%, COLL -9.5%, GMED -8.3%, VUZI -7.9%, RKT-7.9%, FLYW -7.8%, FVRR -7.3%, RYI -6.7%, HOWL-6.2%, APP -5.8%, GOEV -5.5%, XENE -5%, EOLS-4.9%, TTD -4.1%, SKIN -3.5%, KIND -2.8%, TM-2.7%, CO -2.5%, CRCT -2.5%, WBT -2.5%, YELL-2.1%, MRCY -1.3%, FMC -1.3%, CTOS -1.3%, GBDC-1.2%, RXRX -1.1%


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • 8x8 (EGHT) upgraded to Buy from Neutral at B. Riley Securities; tgt $13.50

  • Arcturus Therapeutics (ARCT) upgraded to Neutral from Underperform at Robert W. Baird; tgt lowered to $18

  • Arrowhead (ARWR) upgraded to Outperform from Neutral at Robert W. Baird; tgt lowered to $60

  • Celsius (CELH) upgraded to Buy from Hold at Maxim Group; tgt $70

  • Construction Partners (ROAD) upgraded to Strong Buy from Outperform at Raymond James; tgt lowered to $25

  • Cronos Group (CRON) upgraded to Sector Outperform from Neutral at CIBC

  • Electronic Arts (EA) upgraded to Buy from Neutral at MoffettNathanson; tgt lowered to $141

  • Grocery Outlet (GO) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $40

  • HF Sinclair (DINO) upgraded to Outperform from Market Perform at Cowen; tgt raised to $52

  • Novanta (NOVT) upgraded to Outperform from Mkt Perform at William Blair

  • Peloton (PTON) upgraded to Mkt Outperform from Mkt Perform at JMP Securities; tgt $25

  • Planet Fitness (PLNT) upgraded to Overweight from Neutral at JP Morgan; tgt $90

  • Rackspace Technology (RXT) upgraded to Outperform from Mkt Perform at Raymond James; tgt $12

  • Trex (TREX) upgraded to Neutral from Underperform at Credit Suisse; tgt $65

  • TriCo Bancshares (TCBK) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $48


  • Downgrades:

  • Array Tech (ARRY) downgraded to Neutral from Buy at ROTH Capital; tgt lowered to $7

  • Avaya Holdings (AVYA) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $7

  • Carvana (CVNA) downgraded to Hold from Buy at Stifel; tgt lowered to $40

  • Corning (GLW) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $38

  • Digital Media Solutions (DMS) downgraded to Hold from Buy at Craig Hallum

  • Hydrofarm Holdings (HYFM) downgraded to Neutral from Buy at UBS; tgt lowered to $8

  • Jounce Therapeutics (JNCE) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $7

  • Katapult Group (KPLT) downgraded to Hold from Buy at Loop Capital; tgt lowered to $1

  • loanDepot (LDI) downgraded to Mkt Perform from Mkt Outperform at JMP Securities

  • loanDepot (LDI) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $3.50

  • loanDepot (LDI) downgraded to Sell from Neutral at Citigroup; tgt lowered to $2

  • Pegasystems (PEGA) downgraded to Hold from Buy at Truist; tgt lowered to $60

  • Peloton (PTON) downgraded to Hold from Buy at Stifel; tgt lowered to $14

  • Rocket Companies (RKT) downgraded to Neutral from Buy at Citigroup; tgt lowered to $8

  • Unity Software (U) downgraded to Neutral from Outperform at Daiwa Securities; tgt lowered to $34

  • Upstart (UPST) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $41

  • Upstart (UPST) downgraded to Neutral from Overweight at Atlantic Equities; tgt lowered to $45


  • Others:

  • Academy Sports + Outdoors (ASO) initiated with a Buy at Truist; tgt $53

  • Affirm (AFRM) initiated with a Neutral at JP Morgan; tgt $30

  • Bausch + Lomb (BLCO) initiated with an Outperform at Cowen; tgt $35

  • Chipotle Mexican Grill (CMG) resumed with a Buy at BofA Securities; tgt $1590

  • Equity Lifestyle Properties (ELS) initiated with a Buy at Truist; tgt $78

  • Sun Communities (SUI) initiated with a Buy at Truist; tgt $185


Upcoming Events:

  • Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for May 7 (Briefing.comConsensus NA; Prior 2.5%)

  • 08:30 ET: CPI for Apr (Briefing.comConsensus 0.2%; Prior 1.2%)

  • 08:30 ET: Core CPI for Apr (Briefing.comConsensus 0.4%; Prior 0.3%)

  • 10:30 ET: EIA Crude Oil Inventories for May 7 (Briefing.comConsensus NA; Prior +1.3 M)

  • 14:00 ET: Treasury Budget for Apr (Briefing.comConsensus NA; Prior -$192.7B)


  • Earnings:

  • Monday (May 9)

  • Morning: ACM AZUL BNTX CLVT COTY DUK ELAN ENR HSKA DINO HGV HEP JLL RIDE MAC MSGE PLTR RCM RDNT TGNA TWKS THS TSN VTRS WOW

  • Afternoon: DDD AMC AMWL ANGI AZTA BLI BLNK BHF BWXT CARG DHT DNB EQH ESE EVBG FGEN GDRX GRPN HLIO HRTX HI HIMS HBM ICUI IAC IFF JRVR FROG LPSN MGY MAXR MESA MCHP MRC NCMI NHI NVAX OPK OPRT PLUG PRAA PRIM PRA PUBM RNG RBA ROVR SWAV SPG SDC SU SUPN TASK TDUP TREX UNVR UPST VVV VECO VRM XPO YMAB ZNGA


  • Tuesday (May 10)

  • Morning: MASS ACRS AHCO ALGM AMRS ARMK AVYA AZEK BHC BSY BCO BLDR CRNC CEVA CHH CRON XRAY DM DBD DSEY EBIX EPC ENOV EVRI FOXA HAE HL H IAA IIVI IGT ITCI KNBE LCII LI MBUU MIDD EYE NXST NCLH NOVT PTON PLNT RETA REYN STER STVN SYY TTGT TPG TDG VERX WMG

  • During Market Hours: ENTA

  • Afternoon: EGHT AKA ABCL BIRD ARLO ARRY AXON BOOT ELY CELH COIN COLL CRCT CUTR DAR MSP DV DOUG EA EOLS EXEL FNF FLYW GFS GMED GOCO GO GRWG HALO HCAT ICHR INO IPAR JXN JAMF KGC LNW MTTR MODN NSTG OXY OLO OSUR PLBY PRPL RXT RPAY RBLX RKT SCSC SOFI SWCH SKIN REAL TTD U VUZI WELL WES WYNN YELL ZETA ZD


  • Wednesday (May 11)

  • Morning: ATC FVRR KRNT DNUT LTH NOMD OLPX PFGC PRGO SLVM WEN WWW YETI

  • Afternoon: DIBS ACVA DOX APP ATCO BYND BMBL CPA CPNG BROS FLNC MFC MQ PAAS RIVN SMRT SONO STE SLF COOK DIS ZIP


  • Thursday (May 12)

  • Morning: CAMT CYBR CYXT DAVA GENI HIMX HLLY IS KELYA NABL NICE NVMI PGTI PRMW SHCR SIX DTC SQSP TPR TNK USFD UTZ

  • Afternoon: AFRM AQN BLND BRLT COMP LAW DUOL FIGS HRT INDI LZ MLNK MSI NVTS NEWR PAYO POSH TBLA TOST VZIO VTEX UP


  • Friday (May 13)

  • Morning: PLXP



Asia & Europe detail:

Asia: Nikkei +0.2%, Hang Seng +1.0%, Shanghai Composite +0.8%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Toyota forecast a 20% drop in profit for the year. Consumer confidence in Australia fell to the lowest level since August 2020. China's CPI increased at its fastest yr/yr pace since November. Press reports indicate that Softbank is down about $25 bln on its investments for the year. South Korea is on track to pass an extra budget without bond issuance. President Yoon acknowledged that prices are a concern and that ways to contain inflation need to be considered.

  • In economic data:

  • China's April CPI 0.4% m/m (expected 0.2%; last 0.6%); 2.1% yr/yr (expected 1.8%; last 1.5%). April PPI 8.0% yr/yr (expected 7.7%; last 8.3%) o Japan's March Leading Index 0.9% m/m (last -1.2%) and Coincident Indicator 0.2% m/m (last 0.5%)

  • South Korea's April Unemployment Rate 2.7% (last 2.7%)

  • Australia's May Westpac Consumer Sentiment -5.6% (last -0.9%)


---Equity Markets---

  • Japan's Nikkei: +0.2%

  • Hong Kong's Hang Seng: +1.0%

  • China's Shanghai Composite: +0.8%

  • India's Sensex: -0.5%

  • South Korea's Kospi: -0.2%

  • Australia's ASX All Ordinaries: +0.3%

---FX---

  • USD/JPY: -0.5% to 129.76

  • USD/CNH: UNCH at 6.7400

  • USD/INR: UNCH at 77.21

Europe: DAX +1.3%, FTSE +1.1%, CAC +1.9%

Major European indices trade on a firmly higher note. Germany's CPI increased at its fastest yr/yr pace since 1974 in the April reading. A few European Central Bank policymakers spoke in favor of raising rates while President Lagarde repeated her expectations for ending asset purchases in early Q3. The U.K.'s National Institute of Economic and Social Research noted that the Bank of England's base rate will need to be at 2.5% until the middle of the decade to curtail inflation.

  • In economic data:

  • Germany's April CPI 0.8% m/m, as expected (last 2.5%); 7.4% yr/yr, as expected (last 7.3%)


---Equity Markets---

  • STOXX Europe 600: +1.3%

  • Germany's DAX: +1.3%

  • U.K.'s FTSE 100: +1.1%

  • France's CAC 40: +1.9%

  • Italy's FTSE MIB: +2.2%

  • Spain's IBEX 35: +1.4%

---FX---

  • EUR/USD: +0.2% to 1.0551

  • GBP/USD: +0.3% to 1.2349

  • USD/CHF: -0.6% to 0.9895

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