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Writer's pictureSimon Charles Hooper

21/02/23 Briefing

The S&P 500 futures are down 34 points and are trading 0.8% below fair value. The Nasdaq 100 futures are down 137 points and are trading 1.1% below fair value. The Dow Jones Industrial Average futures are down 317 points and are trading 0.9% below fair value.

The stock market is poised for a lower open due to an underlying belief that it is still due for a consolidation period after its big run to begin the year. The Dow Jones Industrial Average futures are especially weak thanks to earnings-driven losses in Walmart (WMT) and Home Depot (HD).

The 2-yr Treasury note yield is up three basis points to 4.66% and the 10-yr note yield is up six basis points to 3.88%. These rising rates are another drag on equity investor sentiment along with added geopolitical tension, which stems from contentious finger pointing between U.S., Chinese, and Russian political officials regarding the Ukraine war.

The U.S. Dollar Index is up 0.1% to 103.99.

WTI crude oil futures are up 0.6% to $77.04/bbl and natural gas futures are down 2.4% to $2.22/mmbtu.

Market participants will receive the following economic data today:

  • 9:45 a.m. ET: Preliminary February IHS Markit Manufacturing PMI (prior 46.9) and preliminary IHS Markit Services PMI (prior 46.8)

  • 10:00 a.m. ET: January Existing Home Sales (prior 4.02 mln)

In corporate news:

  • Meta Platforms (META 175.76, +2.88, +1.7%): testing Meta Verified to help creators establish their presence; UK collective lawsuit against Meta (META) was rejected, according to Reuters.

  • Home Depot (HD 305.37, -12.58, -4.0%): beats by $0.01, reports revs in-line; guides FY24 (Jan) EPS below consensus, revs in-line; investing $1 bln in associate compensation; raises dividend

  • Walmart (WMT 140.29, -6.15, -4.2%): beats by $0.20, beats on revs; comps +8.3% above guidance; guides Q1 EPS below consensus; guides FY24 EPS below consensus

  • Williams Cos (WMB 31.50, +0.24, +0.8%): beats by $0.03, misses on revs; raises dividend

  • Huntsman (HUN 29.51, -1.15, -3.8%): misses by $0.10, beats on revs; raises quarterly dividend by 12%

  • Teck Resources (TECK 46.91, +2.79, +6.3%): announces reorganization of its business to separate Teck into two independent companies: Tech Metals Corp and Elk Valley Resources Ltd.; misses by CAD0.20, misses on revs; reaffirms FY23 production guidance

  • Vir Biotechnology (VIR 28.45, +2.71, +10.5%): upgraded to Buy from Neutral at Goldman

  • Medtronic (MDT 86.89, +2.09, +2.5%): beats by $0.03, beats on revs; raises low end of FY23 EPS guidance range

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: -1.7%, China's Shanghai Composite: +0.5%, India's Sensex: UNCH, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: -0.1%.

    • In economic data:

      • Japan's February flash Manufacturing PMI 47.4 (expected 49.3; last 48.9) and flash Services PMI 53.6 (expected 51.5; last 52.3)

      • South Korea's February Consumer Confidence 90.2 (last 90.7)

      • New Zealand's Q4 Input PPI 0.5% qtr/qtr (expected 2.4%; last 0.8%) and Output PPI 0.9% qtr/qtr (expected 2.1%; last 1.6%). February flash Manufacturing PMI 50.1 (last 50.0) and flash Services PMI 49.2 (last 48.6)


  • In news:

    • Japan's Manufacturing PMI contracted for the fourth consecutive time in the flash reading for February while Australia's reading remained in expansionary territory for the 34th month in a row.

    • South Korea's exports through the first 20 days of February were down 2.3% yr/yr with chip exports falling 43.9% yr/yr.

    • The Reserve Bank of Australia's latest policy minutes showed a debate over the size of a rate hike and an acknowledgement that private sector wages will show an above-forecast increase for Q4.



  • Major European indices trade in the red. STOXX Europe 600: -0.1%, Germany's DAX: -0.4%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.4%, Italy's FTSE MIB: -0.7%, Spain's IBEX 35: -0.4%.

    • In economic data:

      • Eurozone's February ZEW Economic Sentiment 29.7 (expected 22.3; last 16.7). February flash Manufacturing PMI 48.5 (expected 49.3; last 48.8) and flash Services PMI 53.0 (expected 51.0; last 50.8)

      • Germany's February ZEW Economic Sentiment 28.1 (expected 22.0; last 16.9) and ZEW Current Conditions -45.1 (expected -50.0; last -58.6). February flash Manufacturing PMI 46.5 (expected 47.8; last 47.3) and flash Services PMI 51.3 (expected 51.0; last 50.7).

      • U.K.'s February flash Manufacturing PMI 49.2 (expected 47.5; last 47.0) and flash Services PMI 53.3 (expected 49.2; last 48.7). February CBI Industrial Trends Orders -16 (expected -14; last -17)

      • France's February flash Manufacturing PMI 47.9 (expected 50.9; last 50.5) and flash Services PMI 52.8 (expected 49.9; last 49.4)

      • Swiss January trade surplus CHF5.078 bln (expected surplus of CHF3.750 bln; last surplus of CHF2.767 bln)


  • In news:

    • Germany, France, and the U.K. reported better than expected flash Services PMI readings for February while Manufacturing PMI readings from Germany and France missed expectations, pointing to continued contraction.

    • Credit Suisse is being investigated by Swiss authorities after the firm's chairman said in December that outflows have stabilized.

    • Russian President Putin said that his country's participation in the New START nuclear treaty will be suspended.



U.S. equity futures:

  • S&P 500 Futures: -30 @ 4,049

  • DJIA Futures: -283 @ 33,544

  • Nasdaq 100 Futures: -122 @ 12,236

Overseas:

  • Europe: DAX -0.4%, FTSE -0.2%, CAC -0.4%

  • Asia: Nikkei -0.2%, Hang Seng -1.7%, Shanghai Composite +0.5%

Commodities:

  • Crude Oil +0.45 @ 77.00

  • Nat Gas -0.036 @ 2.316

  • Gold -9.05 @ 1841.15

  • Silver +0.047 @ 21.762

  • Copper +0.0858 @ 4.1943

Earnings/Guidance:

  • ADTRAN ( ADTN â–´ 2.13% ) misses by $0.04, misses on revs

  • APi Group ( APG 0.00% ) sees FY23 revs above consensus

  • Arconic ( ARNC â–¾ 1.39% ) reports Q4 (Dec) results, misses on revs; guides FY23 revs below consensus

  • Armstrong World Industries ( AWI â–¾ 0.26% ) misses by $0.04, beats on revs; guides FY23 EPS below consensus, revs in-line

  • Avanos Medical ( AVNS â–¾ 0.72% ) beats by $0.11, reports revs in-line; guides FY23 EPS in-line

  • BHP Group ( BHP â–¾ 2.94% ) reports in-line results; beats on revs

  • BioCryst Pharma ( BCRX â–¾ 5.12% ) misses by $0.18, beats on revs

  • Copart ( CPRT â–¾ 0.36% ) beats by $0.03, beats on revs

  • Dana Inc ( DAN â–¾ 2.32% ) misses by $0.36, beats on revs; guides FY23 revs in-line

  • Diamondrock Hospitality ( DRH â–¾ 1.82% ) beats by $0.02, beats on revs

  • Dillard's ( DDS â–¾ 1.25% ) beats by $5.66, misses on revs, comparable store sales unchanged

  • Donnelley Financial ( DFIN â–¾ 0.35% ) misses by $0.10, misses on revs

  • Douglas Dynamics ( PLOW â–¾ 0.81% ) beats by $0.03, misses on revs; guides FY23 EPS in-line, revs in-line

  • Elanco Animal Health ( ELAN â–¾ 1.72% ) beats by $0.06, reports revs in-line; guides FY23 EPS below consensus, revs in-line

  • Enpro Industries ( NPO â–¾ 2.13% ) beats by $0.45, beats on revs; guides FY23 EPS above consensus

  • Equitrans Midstream ( ETRN â–¾ 1.05% ) misses by $0.01, beats on revs

  • Esperion Therapeutics ( ESPR â–´ 1.93% ) beats by $0.09, misses on revs

  • Fluor ( FLR â–´ 1.21% ) misses by $0.08, misses on revs; guides FY23 EPS in-line; provides FY26 adjusted EPS guidance

  • General Mills ( GIS â–¾ 0.02% ) raises earnings, organic sales guidance at CAGNY conference

  • Harmony Biosciences ( HRMY â–¾ 1.69% ) beats by $0.01, reports revs in-line

  • HealthStream ( HSTM â–¾ 0.52% ) beats by $0.02, reports revs in-line; guides FY23 revs below consensus

  • Helix Energy ( HLX â–¾ 0.13% ) reports Q4 results; beats on revs

  • Home Depot ( HD â–¾ 0.48% ) beats by $0.01, reports revs in-line; guides FY24 (Jan) EPS below consensus, revs in-line; investing $1 bln in associate compensation; raises dividend

  • Honda Motor ( HMC â–¾ 0.15% ) reports 9 month YTD results

  • HSBC Holdings ( HSBC â–¾ 1.23% ) reports Q4 results; beats on revs

  • Huntsman ( HUN â–¾ 0.16% ) misses by $0.10, beats on revs

  • Ingersoll-Rand ( IR â–¾ 1.03% ) beats by $0.10, beats on revs; guides FY23 EPS in-line, revs above consensus

  • Intercontinental Hotels Group ( IHG â–¾ 0.04% ) beats by $0.05; misses on revs

  • iStar ( STAR â–¾ 1.03% ) reports Q4 (Dec) results, misses on revs (two ests)

  • JBT Corp ( JBT â–¾ 2.00% ) beats by $0.09, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line

  • JELD-WEN ( JELD â–¾ 1.01% ) beats by $0.22, beats on revs; guides FY23 revs in-line

  • Kraft Heinz ( KHC â–´ 0.14% ) reaffirms FY23 earnings, organic net sales guidance at CAGNY conference

  • LGI Homes ( LGIH â–¾ 0.57% ) misses by $0.23, misses on revs

  • Lincoln Electric ( LECO â–¾ 0.19% ) beats by $0.04, reports revs in-line

  • Louisiana-Pacific ( LPX â–¾ 0.22% ) beats by $0.07, beats on revs

  • Manitowoc ( MTW â–´ 3.70% ) beats by $0.48, beats on revs; guides FY23 EPS in-line, revs above consensus

  • Medtronic ( MDT â–¾ 1.48% ) beats by $0.03, beats on revs; raises low end of FY23 EPS guidance range

  • Middleby ( MIDD â–¾ 1.23% ) beats by $0.13, beats on revs

  • Molson Coors Brewing (TAP) beats by $0.23, reports revs in-line; guides for FY23 net sales growth of low single-digit increase

  • Nordson ( NDSN â–¾ 0.29% ) misses by $0.02, misses on revs; guides FY23 EPS in-line, revs below consensus

  • Olink Holding ( OLK â–´ 1.86% ) beats by $0.01; beats on revs; sees FY23 revs in-line

  • Photronics ( PLAB â–´ 0.23% ) reports EPS in-line, beats on revs; guides Q2 EPS in-line, revs in-line

  • Public Service ( PEG â–¾ 0.19% ) beats by $0.02, beats on revs; raises FY23 EPS in-line

  • Sapiens Int'l ( SPNS â–¾ 0.96% ) beats by $0.01, misses on revs; guides FY23 revs in-line

  • Smith & Nephew ( SNN â–¾ 0.14% ) beats on top and bottom lines; sees FY23 revs above consensus

  • Teck Resources ( TECK â–¾ 4.95% ) misses by CAD0.20, misses on revs; reaffirms FY23 production guidance

  • Trinity Industries ( TRN â–´ 1.91% ) misses by $0.03, misses on revs; guides FY23 EPS below consensus

  • TRI Pointe Homes ( TPH â–¾ 0.26% ) beats by $0.43, beats on revs

  • Walker & Dunlop ( WD â–¾ 0.93% ) misses by $0.23, misses on revs; reiterated $2.0 bln in revs and $13.00 in EPS in 2025

  • Walmart ( WMT â–¾ 2.14% ) beats by $0.20, beats on revs; comps +8.3% above guidance; guides Q1 EPS below consensus; guides FY24 EPS below consensus

  • Westlake Corporation ( WLK â–¾ 0.37% ) misses by $0.51, misses on revs

  • Williams Cos ( WMB â–´ 0.03% ) beats by $0.03, misses on revs; raises dividend

News:

  • Secretary of State Anthony Blinken had a "confrontational meeting" with Chinese officials after China criticized US for shooting down a spy balloon. Mr. Blinken also said China was considering providing lethal assistance to Russia, according to the New York Times

  • China accuses the Biden administration of "spreading lies" after US claimed China was considering sending "lethal support" to help Russia in war in Ukraine, according to the New York Times

  • President Biden visits Ukraine; says later this week US will announce additional sanctions against elites and companies that are trying to evade or backfill Russia's war machine

  • White House announces $450 million in defense articles and services of the Department of Defense, and military education and training, to provide assistance to Ukraine

  • Russian President Putin says Russia will suspend participation in the New START nuclear weapons treaty

  • Supreme Court will hear two cases this week that could narrow Section 230 legal protections for social media companies, according to CNN

  • China's new rules for offshore listings could result in a lengthy approval process, according to Reuters

  • Transportation Department wants higher maximum fines for railroad safety violations, according to the Washington Post

  • USGS reported yesterday a 6.3 magnitude earthquake 3 km SW of Uzunbag, Turkey

  • Actinium ( ATNM â–´ 11.00% ) Announces Positive Full Data Results From the Pivotal Phase 3 SIERRA Trial in Patients with Active, Relapsed or Refractory Acute Myeloid Leukemia

  • Alibaba ( BABA ): NBA China and Ant Group enter comprehensive strategic collaboration to create original online content and customized consumer experiences for fans on Alipay

  • Becton Dickinson ( BDX â–¾ 0.67% ) announces U.S. FDA market approval for the BD Onclarity HPV Assay to be used with the ThinPrep Pap Test

  • Biohaven ( BHVN â–´ 0.59% ) recieves Fast Track designation from the FDA for Spinal Muscular Atrophy

  • Bluegreen Vacations Holding's ( BVH â–´ 1.41% ) Board of Directors declares increased quarterly cash dividend

  • CVRx, Inc. ( CVRX â–´ 8.03% ) announces the preliminary topline results of the BeAT-HF, Baroreflex Activation Therapy for Heart Failure, post-market randomized clinical trial

  • Discover ( DFS â–¾ 0.43% ) will enable tracking of purchases at gun stores starting in April, according to Reuters

  • Ericsson ( ERIC â–´ 0.09% ) to eliminate 1400 jobs in Sweden, according to Reuters

  • Esperion ( ESPR â–´ 1.93% ) Announces Positive CLEAR Outcomes Results To Be Presented as Late-Breaking Clinical Trial at ACC.23/WCC

  • Foxconn ( HNHPF ) will visit China plant impacted by coronavirus, according to Reuters

  • Gamida Cell ( GMDA â–¾ 3.60% ) presents Data on Gamida Cell's Omidubicel, GDA-201 at the 2023 Tandem Meetings of ASTCT and CIBMTR

  • General Motors ( GM â–¾ 4.79% ) Defense and the Tawazun Council sign a collaborative Memorandum of Understanding as the first step toward a formal partnership to develop future products in the areas of advanced mobility and power solutions

  • Helix Energy ( HLX â–¾ 0.13% ) authorizes $200 mln share repurchase program

  • Herc Holdings ( HRI â–¾ 0.20% ): Icahn affirms lower active stake following the sale of 491,461 shares (transaction dates 2/10-2/17)

  • Huntsman ( HUN â–¾ 0.16% ) raises quarterly dividend by 12%

  • Intl Fibercom ( IFCI ) resolved all matters related to the litigation and the Road Home Program

  • LegalZoom.com ( LZ â–¾ 4.22% ) identified an error within its income tax provision

  • Ligand Pharma's ( LGND ) partner Travere Therapeutics (TVTX) announces FDA Accelerated Approval of FILSPARI; Ligand is entitled to receive a net $15.3 mln milestone and net royalties of 9% on future sales

  • Lockheed Martin ( LMT â–¾ 0.67% ) receives $1.1 bln initial contract to provide nation's first sea-based hypersonic strike capability

  • Masimo ( MASI â–¾ 1.49% ): New Study Evaluates the Utility of Masimo ORi in Reducing Hyperoxemia During Laparoscopic Gastrectomy

  • MediciNova ( MNOV â–¾ 0.43% ) Announces New Data Regarding MN-166 (ibudilast) in Glioblastoma Tumor Tissue Analysis Presented at the 20th Annual World Congress of Society for Brain Mapping and Therapeutics

  • Merck ( MRK â–´ 0.53% ) announces that LAGEVRIO did not demonstrate a statistically significant reduction in the risk of COVID-19 following household exposure to another individual with COVID-19

  • Meta Platforms ( META â–¾ 0.60% ) testing Meta Verified to help creators establish their presence

  • Meta Platforms ( META â–¾ 0.60% ): UK collective lawsuit against Meta was rejected, according to Reuters

  • Meta Platforms ( META â–¾ 0.60% ): Tencent (TCEHY) in discussions to sell Meta's Quest 2 VR headset in China, according to the Wall Street Journal

  • Microsoft ( MSFT â–¾ 0.01% ) President Brad Smith tweeted "We've now signed a binding 10-year contract to bring Xbox games to Nintendo's (NTDOY) gamers. This is just part of our commitment to bring Xbox games and Activision titles like Call of Duty to more players on more platforms"

  • Mueller Industries ( MLI â–¾ 0.66% ) increases quarterly cash dividend to $0.30/share from $0.25/share

  • Norfolk Southern ( NSC ) had higher accident rates before derailment in Ohio, according to the New York Times

  • NuVasive ( NUVA ) recieves FDA clearance for the use of its Modulus Cervical interbody implant with a bone void filler, further enhancing the Company's C360 portfolio

  • OptiNose ( OPTN â–´ 3.55% ) submits supplemental new drug application (sNDA) to the FDA to request approval of XHANCE as a treatment for chronic rhinosinusitis

  • Pfizer ( PFE â–¾ 0.12% ) announces that the U.S. FDA has accepted for review a Biologics License Application for its respiratory syncytial virus vaccine candidate PF-06928316 or RSVpreF

  • Polymet Mining ( PLM â–¾ 1.21% ) closes NewRange Copper Nickel joint venture with Teck Resources (TECK); to launch rights offering of approximately US$200 million

  • PTC ( PTC â–´ 0.67% ) extends executive agreement with CEO; names new President/COO

  • Regeneron Pharma ( REGN ): Pozelimab (C5 Antibody) BLA for Treatment of Children and Adults with Ultra-rare CHAPLE Disease Accepted for FDA Priority Review

  • Suncor Energy ( SU â–´ 0.29% ) announces Rich Kruger as next President and CEO, effective April 3, 2023

  • Takeda ( TAK â–¾ 0.16% ) Presents Positive Results from Phase 3 Study of Vedolizumab for Prevention of Intestinal Acute Graft-Versus-Host Disease (aGvHD) in Patients Undergoing Allogeneic Hematopoietic Stem Cell Transplantation

  • Teck Resources ( TECK â–¾ 4.95% ) announces $250 mln share buyback and supplemental dividend

  • Teck Resources ( TECK â–¾ 4.95% ) announces reorganization of its business to separate Teck into two independent companies: Tech Metals Corp and Elk Valley Resources Ltd.

  • Tesla ( TSLA â–¾ 1.62% ): US regulators are investigating Tesla crash with fire truck, according to Bloomberg

  • Timken ( TKR â–¾ 0.85% ) awarded a long-term contract to deliver Philadelphia Gear main reduction gears to the US Navy for all future Flight III ships of the Arleigh Burke class

  • Uber ( UBER â–¾ 2.35% ) will introduce EVs in India, according to Reuters

  • uniQure ( QURE â–¾ 1.03% ) announces that its partner Carlisle Cos (CSL) received conditional marketing authorization from the European Commission for HEMGENIX

  • Vivint Smart Home ( VVNT â–¾ 0.98% ) provides litigation update; intends to pursue post-judgment remedies and file an appeal

  • Volkswagen ( VWAGY ): German Court rules that Volkswagen diesel emissions software is not adequate, according to Bloomberg

M&A:

  • Churchill Capital Corp VI ( CCVI â–¾ 0.10% ) says it has entered a non-binding letter of intent for potential business combination; has until May 17 to complete combination

  • Hecla Mining ( HL â–¾ 3.70% ) confirms letter of intent to acquire ATAC Resources

  • Manchester United ( MANU â–´ 0.66% ) received several bids for the company, according to the Wall Street Journal

  • RADCOM ( RDCM â–¾ 0.11% ) acquires Continual for $2.5 mln

  • Sibanye-Stillwater ( SBSW â–´ 0.47% ) launches bid for New Century Resources Limited at AUD1.10 per share

Syndicate:

  • Apyx Medical ( APYX â–´ 0.85% ) announces that the Company and its subsidiaries have entered into a new, five-year secured credit facility with MidCap Financial

  • Canopy Growth ( CGC â–¾ 3.77% ) announces $150 mln aggregate offering of principal amount of senior unsecured convertible debentures

  • Mirion Technologies ( MIR â–¾ 1.10% ) has agreed to sell $150 mln of shares of Class A common stock to certain funds and accounts advised by T. Rowe Price (TROW) Investment Management

  • Verrica Pharmaceuticals ( VRCA â–´ 2.47% ) announces pricing of $32.5 mln underwritten offering of common stock at a price of $6.75/share

IPOs:

  • BMC Software considering $15 bln IPO, according to Bloomberg

  • Expected to Price:

    • No IPOs expected.


Gapping Up/Down

  • Gapping up:

    • ATNM +21.7%, APLS +13.9%, TVTX +10%, ESPR +9.6%, MNOV +7.3%, SNN +6.4%, TECK +5.4%, LGND +5%, HLX +3.9%, HSBC +3.8%, GMDA +3.5%, WMB +3.5%, MASI +2.6%, MTW +2.4%, TAK +1.3%, BHP +1.2%, AMRN +1.1%, HL +0.6%, IR +0.6%


  • Gapping down:

    • SLND -6.3%, SBSW -4.5%, HD -3.7%, LPX -2.8%, JELD -2.8%, HUN -2.2%, PLAB -1.9%, TEVA -1.4%, CM -1.3%, ADTN -0.9%, TSLA -0.8%, CBOE -0.7%, SPNS -0.7%, CPRT -0.6%, NDSN -0.5%, IHG -0.5%



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

  • Upgrades

    • Alliant Energy (LNT) upgraded to Neutral from Sell at Guggenheim; tgt raised to $52

    • Caleres (CAL) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $35

    • Glacier Bancorp (GBCI) upgraded to Outperform from Mkt Perform at Raymond James; tgt $51

    • HomeTrust Bank (HTBI) upgraded to Buy from Neutral at Janney

    • Lakeland Financial (LKFN) upgraded to Outperform from Mkt Perform at Raymond James; tgt $78

    • MarineMax (HZO) upgraded to Buy from Neutral at B. Riley Securities; tgt lowered to $52

    • Norfolk Southern (NSC) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $255

    • Prosperity Bancshares (PB) upgraded to Outperform from Mkt Perform at Raymond James; tgt $85

    • Travere Therapeutics (TVTX) upgraded to Outperform from Neutral at Wedbush; tgt $30

    • Trustmark (TRMK) upgraded to Outperform from Mkt Perform at Raymond James; tgt $34

    • Vir Biotechnology (VIR) upgraded to Buy from Neutral at Goldman; tgt raised to $53


  • Downgrades:

    • American Equity Investment Life (AEL) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $48

    • AutoNation (AN) downgraded to Underweight from Neutral at JP Morgan; tgt raised to $130

    • Cable ONE (CABO) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $680

    • CF Industries (CF) downgraded to Hold from Buy at HSBC Securities; tgt lowered to $90

    • Claros Mortgage Trust (CMTG) downgraded to Mkt Perform from Mkt Outperform at JMP Securities

    • Constellation Energy (CEG) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $88

    • Cullen/Frost (CFR) downgraded to Mkt Perform from Outperform at Raymond James

    • DocuSign (DOCU) downgraded to Sell from Neutral at UBS; tgt $52

    • Eversource Energy (ES) downgraded to Peer Perform from Outperform at Wolfe Research

    • First Commonwealth (FCF) downgraded to Mkt Perform from Outperform at Raymond James

    • First Merchants (FRME) downgraded to Outperform from Strong Buy at Raymond James; tgt $50

    • Focus Financial (FOCS) downgraded to Hold from Buy at Truist; tgt raised to $53

    • Generac (GNRC) downgraded to Hold from Buy at Truist; tgt $145

    • Kinsale Capital (KNSL) downgraded to Neutral from Buy at Compass Point; tgt $350

    • Mosaic (MOS) downgraded to Reduce from Hold at HSBC Securities; tgt lowered to $43

    • RE/MAX Holdings (RMAX) downgraded to Equal-Weight from Overweight at Stephens; tgt lowered to $21

    • SentinelOne (S) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $18

    • Sonic Automotive (SAH) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $55


  • Others:

    • Autoliv (ALV) resumed with a Buy at BofA Securities; tgt $130

    • BioMarin Pharmaceutical (BMRN) initiated with a Neutral at Citigroup; tgt $116

    • MVB Financial (MVBF) resumed with an Outperform at Raymond James; tgt $29

    • TXO Energy Partners (TXO) initiated with a Buy at Stifel; tgt $31


Upcoming Events:

  • Econ Data:

    • 09:45 ET: IHS Markit Manufacturing PMI - Prelim for Feb (Briefing.com Consensus NA; Prior 46.9)

    • 09:45 ET: IHS Markit Services PMI - Prelim for Feb (Briefing.com Consensus NA; Prior 46.8)

    • 10:00 ET: Existing Home Sales for Jan (Briefing.com Consensus 4.12M; Prior 4.02M)


  • Earnings:

    • Monday (Feb 20)

      • Afternoon: ADTN CPRT PLOW MTW NDSN WMB


  • Tuesday (Feb 21)

    • Morning: ARNC AWI AVNS BCRX DAN DRH DFIN ELAN NPO ETRN ESPR EXPD FLR HRMY HD HUN IR JBT JELD LGIH LECO LPX MDT MIDD TAP PEG SPNS SMP TECK TPH TRN WD WMT WLK

    • Afternoon: ABCL ALIT ATRC AGR BCC CZR CWH CHK CWAN COIN CSGP CW FANG ESI EXAS FLS GFL GMED HALO TWNK IAA IOSP KAR KW KEYS LZB MTDR MATX MED NHI PANW PEB PUMP PTCT PSA QTWO O RBA SRPT SBAC SPT STAA SKT TOL RIG UFPI UNVR VNOM WSC WK ZIP


  • Wednesday (Feb 22)

    • Morning: ALLE AVA BIDU BCO CRL CSTM DRVN EDIT EVBG FVRR FDP GRMN GEL THRM ROCK GIL GLBE HEES IBP IART IONS LIVN NI OSTK PGTI PLAB DOC PRG RGEN SBGI STLA SHO TJX TNL UTHR VRT WING WIX WWW

    • Afternoon: ACVA AGI ATUS AMWL ANSS APA AMK BTG BMBL WHD CPE CAKE CHDN CIVI CDE FIX CTRA CCRN DVA BROS EBAY ECPG EPR ETSY EVTC EVH EXR FPI FNF FIVN GKOS GSHD ICLR IMAX KALU LMND LGND LCID MGNI MRVI VAC DOOR MTTR MGRC MMSI MOS MYRG NTAP NUVA NVDA OLO OGS ORA OUT PAAS PK PDCE PXD LUNG RXT RELY RCII SNBR SM STRA RGR NOVA RUN TNDM TDOC TPIC TMDX USPH UCTT UIS U VMI VCYT WES


  • Thursday (Feb 23)

    • Morning: AGIO BABA ALNY AEP AMT HOUS AMBP BAND BBWI BHC CARS CBRE LNG CQP IMOS CCOI COMM DEN DPZ DTE EME ENOV EXLS AG FCN GPC HLMN HNI INSM NTLA IRM KDP KYMR LNTH LKQ MPW MFA MGPI MRNA MODV NABL NEO NTES NEM NICE NKLA NOMD NVCR OGE OPCH PZZA PCG PLNT PRMW PWR RSKD SPTN SRCL SHOO FTI TNK TFX TNC SHYF THRY BLD TAC TRS VCEL VIPS W WOW YETI

    • Afternoon: ACCO ALRM ALKT LNT ALTR AMH ACA ADSK BALY BBDC BYND BIGC SQ BKNG BCOV BWXT CABO CRC CVNA CE CHE CDXS COLL CYRX LAW CUBE CWK DH BOOM EIX ENV EOG EXFY FTCH FND FOXF FTAI GLPI GDOT GDYN GH HBM INFN INGN PODD INTU IRTC KTOS LZ LMAT LSI LYV MNKD MTZ MELI MCW MP NVTS LASR NOG OII LPRO OPEN OPK PAY PBA PEN PRDO PLYA PRI KWR RLAY RVLV RHP SEM SWN SPXC SG TMST TVTX OLED UPLD MDRX VICI VICR VIR WBD XNCR ZETA


  • Friday (Feb 24)

    • Morning: ACMR BRC GTLS CM CNK DBRG EVRG FYBR GTN DINO LAMR NWN PNM SSP TBLA TPB SLCA UNIT



Asia & Europe detail:

Asia: Nikkei -0.2%, Hang Seng -1.7%, Shanghai Composite +0.5%

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Manufacturing PMI contracted for the fourth consecutive time in the flash reading for February while Australia's reading remained in expansionary territory for the 34th month in a row. South Korea's exports through the first 20 days of February were down 2.3% yr/yr with chip exports falling 43.9% yr/yr. The Reserve Bank of Australia's latest policy minutes showed a debate over the size of a rate hike and an acknowledgement that private sector wages will show an above-forecast increase for Q4.

  • In economic data:

    • Japan's February flash Manufacturing PMI 47.4 (expected 49.3; last 48.9) and flash Services PMI 53.6 (expected 51.5; last 52.3)

    • South Korea's February Consumer Confidence 90.2 (last 90.7)

    • New Zealand's Q4 Input PPI 0.5% qtr/qtr (expected 2.4%; last 0.8%) and Output PPI 0.9% qtr/qtr (expected 2.1%; last 1.6%). February flash Manufacturing PMI 50.1 (last 50.0) and flash Services PMI 49.2 (last 48.6)


---Equity Markets---

  • Japan's Nikkei: -0.2%

  • Hong Kong's Hang Seng: -1.7%

  • China's Shanghai Composite: +0.5%

  • India's Sensex: UNCH

  • South Korea's Kospi: +0.2%

  • Australia's ASX All Ordinaries: -0.1%

---FX---

  • USD/JPY: +0.3% to 134.55

  • USD/CNH: +0.4% to 6.8859

  • USD/INR: +0.1% to 82.75

Europe: DAX -0.4%, FTSE -0.2%, CAC -0.4%

Major European indices trade in the red. Germany, France, and the U.K. reported better than expected flash Services PMI readings for February while Manufacturing PMI readings from Germany and France missed expectations, pointing to continued contraction. Credit Suisse is being investigated by Swiss authorities after the firm's chairman said in December that outflows have stabilized. Russian President Putin said that his country's participation in the New START nuclear treaty will be suspended.

  • In economic data:

    • Eurozone's February ZEW Economic Sentiment 29.7 (expected 22.3; last 16.7). February flash Manufacturing PMI 48.5 (expected 49.3; last 48.8) and flash Services PMI 53.0 (expected 51.0; last 50.8)

    • Germany's February ZEW Economic Sentiment 28.1 (expected 22.0; last 16.9) and ZEW Current Conditions -45.1 (expected -50.0; last -58.6). February flash Manufacturing PMI 46.5 (expected 47.8; last 47.3) and flash Services PMI 51.3 (expected 51.0; last 50.7).

    • U.K.'s February flash Manufacturing PMI 49.2 (expected 47.5; last 47.0) and flash Services PMI 53.3 (expected 49.2; last 48.7). February CBI Industrial Trends Orders -16 (expected -14; last -17)

    • France's February flash Manufacturing PMI 47.9 (expected 50.9; last 50.5) and flash Services PMI 52.8 (expected 49.9; last 49.4)

    • Swiss January trade surplus CHF5.078 bln (expected surplus of CHF3.750 bln; last surplus of CHF2.767 bln)


---Equity Markets---

  • STOXX Europe 600: -0.1%

  • Germany's DAX: -0.4%

  • U.K.'s FTSE 100: -0.2%

  • France's CAC 40: -0.4%

  • Italy's FTSE MIB: -0.7%

  • Spain's IBEX 35: -0.4%

---FX---

  • EUR/USD: -0.4% to 1.0647

  • GBP/USD: +0.5% to 1.2097

  • USD/CHF: +0.2% to 0.9249


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