The S&P 500 futures are back on the rise and trade 42 points, or 0.9%, above fair value with earnings news taking the headlines. The Nasdaq 100 futures trade 1.3% above fair value after dropping 1.5% yesterday.
The growth stocks seemed to have gotten over the Netflix (NFLX 219.70, -6.49, -2.9%) disappointment yesterday after Tesla (TSLA 1049.00, +71.80, +7.4%) exceeded earnings expectations and reiterated its growth expectations. TSLA shares are up 7% in pre-market action.
The airline stocks, meanwhile, continue to fly higher after American (AAL 21.56, +2.08, +10.7%), United (UAL 50.45, +3.93, +8.5%), and Alaska Air (ALK 61.61, +2.92, +5.0%) reported encouraging results and/or provided upbeat revenue expectations.
A contrarian mindset might also be driving the futures market higher with investor sentiment having gotten too bearish in recent weeks. That could explain why AT&T(T 19.70, +0.27, +1.4%) is trading higher despite missing EPS estimates or why the uptick in Treasury yields hasn't bothered the market.
The 2-yr yield is up four basis points to 2.61%, and the 10-yr yield is up three basis points to 2.87%. The U.S. Dollar Index is down 0.2% to 100.24. WTI crude futures are up 0.9% to $103.10/bbl.
On the data front, investors will receive weekly Initial Claims (Briefing.comconsensus 195,000) and the Philadelphia Fed Index for April (Briefing.comconsensus 21.0) at 8:30 a.m. ET, followed by the Conference Board's Leading Economic Index for March (Briefing.comconsensus 0.3%) at 10:00 a.m. ET.
Separately, Fed Chair Powell is scheduled to speak at a panel hosted by the IMF, starting at 11:00 a.m. ET.
In U.S. Corporate news:
Tesla (TSLA 1049.00, +71.80): +7.4% after beating top and bottom-line estimates and reiterating expectations to achieve 50% average annual growth in deliveries over a multi-year horizon.
AT&T (T 19.70, +0.27): +1.4% despite missing EPS estimates.
Dow Inc. (DOW 68.95, +1.41): +2.1% after beating top and bottom-line estimates.
American Airlines (AAL 21.56, +2.08): +10.7% after beating top and bottom-line estimates.
United Airlines (UAL 50.45, +3.93): +8.5% on expectations for Q2 to be the highest quarterly revenue in company history and for the company to be profitable in FY22. United missed top and bottom-line estimates.
Alaska Air (ALK 61.61, +2.92): +5.0% after beating EPS estimates and guiding FY22revenue above consensus.
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: +1.2% Hong Kong's Hang Seng: -1.3% China's Shanghai Composite: -2.3% India's Sensex: +1.5% South Korea's Kospi: +0.4% Australia's ASX All Ordinaries: +0.2%.
In economic data:
South Korea's March PPI 1.3% m/m (last 0.5%); 8.8% yr/yr (last 8.5%)
Hong Kong's March Unemployment Rate 5.0% (last 4.5%)
New Zealand's Q1 CPI 1.8% qtr/qtr (expected 2.0%; last 1.4%); 6.9% yr/yr (expected 7.1%; last 5.9%)
In news:
The Bank of Japan will continue offering to buy unlimited amounts of 10-yr JGBs until Tuesday.
Japan's Finance Minister is expected to meet with his U.S. counterpart today. An extra budget will be compiled by Japan's government.
South Korea's exports through the first 20 days of April were up 16.9% yr/yr with chip exports increasing 22.9%.
Major European indices trade in the green. STOXX Europe 600: +0.8% Germany's DAX: +1.6% U.K.'s FTSE 100: +0.2% France's CAC 40: +1.9% Italy's FTSE MIB: +0.3% Spain's IBEX 35: +1.0%.
In economic data:
Eurozone's March CPI 2.4% m/m (expected 2.5%; last 0.9%); 7.4% yr/yr (expected 7.5%; last 5.9%). March Core CPI 1.2% m/m, as expected (last 0.5%); 2.9% yr/yr (expected 3.0%; last 2.7%)
France's April Business Survey 108 (expected 105; last 107)
In news:
There are growing expectations that the European Central Bank will raise rates as early as July after policymakers de Guindos and Wunsch spoke about the possibility.
Greece will increase its minimum wage on May 1.
Industrial robotics company ABB reported strong Q2 results. British Prime Minister Johnson indicated that he will seek reelection.
U.S. equity futures:
S&P 500 Futures: +37 @ 4,498
DJIA Futures: +239 @ 35,399
Nasdaq 100 Futures: +167 @ 14,165
Overseas:
Europe: DAX +1.6%, FTSE +0.2%, CAC +1.9%
Asia: Nikkei +1.2%, Hang Seng -1.3%, Shanghai Composite -2.3%
Commodities:
Crude Oil +0.89 @ 103.00
Nat Gas +0.036 @ 6.973
Gold -15.50 @ 1940.10
Silver -0.596 @ 24.675
Copper +0.0290 @ 4.6810
U.S. Summary:
Earnings/Guidance (Full Earnings Calendar):
ABB Ltd (ABB) misses by $0.02, misses on revs
Alaska Air (ALK) beats by $0.18, reports revs in-line; guides FY22revs above consensus
Alcoa (AA) beats by $0.18, misses on revs
Allegiant Travel (ALGT) sees Q1 revs above consensus
American Airlines (AAL) beats by $0.09, reports revs above consensus
Anglo American (NGLOY) reports Q1 production down 10% yr/yr
AT&T (T) misses by $0.01, reports revs in-line
Atlantic Union Bankshares (AUB) misses by $0.04, reports revs in-line
AutoNation (AN) beats by $0.53, beats on revs
Banc of California (BANC) beats by $0.40
BankUnited (BKU) misses by $0.03
BHP Group (BHP) provides Q3 operations update; reaffirms production guidance of iron ore, metallurgical coal and energy coal; lowers copper guidance
Blackstone (BX) beats by $0.48, beats on revs
Brandywine Realty (BDN) beats by $0.01, reports revs in-line; guides FY22FFO in-line
Carvana (CVNA) misses by $1.31, beats on revs; no longer providing specific numeric near-term guidance for the remainder of the year
Cohen & Steers (CNS) beats by $0.09, beats on revs
Crown Castle (CCI) misses by $0.02, beats on revs; reaffirms FY22FFO guidance
CSX (CSX) beats by $0.02, beats on revs
CVB Financial (CVBF) reports EPS in-line, beats on revs
Danaher (DHR) beats by $0.10, beats on revs; provides Q2 and FY22guidance
Dover (DOV) beats by $0.07, beats on revs; reaffirms FY22EPS guidance, revs guidance
Dow (DOW) beats by $0.29, beats on revs
Equifax (EFX) beats by $0.08, beats on revs; guides Q2 EPS below consensus; lowers FY22guidance
First Industrial Realty (FR) beats by $0.01, beats on revs; guides FY22FFO in-line
Globe Life (GL) misses by $0.03, reports revs in-line; guides FY22EPS in-line
Herc Holdings (HRI) misses by $0.01, beats on revs; raises FY22EBITDA guidance
Huntington Banc (HBAN) misses by $0.01, beats on revs
Kaiser Alum (KALU) reports EPS in-line, beats on revs
KeyCorp (KEY) misses by $0.04, misses on revs
Kinder Morgan (KMI) beats by $0.01, beats on revs; announces 3% dividend increase
Knight-Swift (KNX) beats by $0.09, beats on revs; guides FY22EPS above consensus
Lam Research (LRCX) misses by $0.11, misses on revs; guides JunQ EPS below consensus, revs in-line
Landstar System (LSTR) beats by $0.15, beats on revs; guides Q2 EPS, revs above consensus
Liberty Oilfield Services (LBRT) reports Q1 (Mar) results, beats on revs; guides Q2 revs above consensus
lululemon athletica (LULU) reaffirms FY23guidance at analyst day
Marsh McLennan (MMC) beats by $0.16, reports revs in-line
Nestle (NSRGY) reports Q1 sales increased 5.4% yr/yr; reaffirms FY22outlook
NextEra Energy Partners (NEP) reports Q1 (Mar) results, misses on revs
Pentair (PNR) beats by $0.04, beats on revs; guides Q2 EPS in-line, revs above consensus; reaffirms FY22EPS guidance, guides FY22revs above consensus
Philip Morris International (PM) beats by $0.07, beats on revs
Quest Diagnostics (DGX) beats by $0.22, misses on revs; raises and guides FY22EPS above consensus, raises revs in-line
RLI Corp (RLI) beats by $0.45, misses on revs
Safehold (SAFE) reports EPS in-line, beats on revs
Sandy Spring Banc (SASR) beats by $0.03
SEI Investments (SEIC) misses by $0.01, beats on revs
Sleep Number (SNBR) misses by $0.25, misses on revs; guides FY22EPS in-line
SL Green Realty (SLG) beats by $0.01, beats on revs
Snap-On (SNA) beats by $0.34, beats on revs
Sonoco Products (SON) beats by $0.13, reports revs in-line; guides Q2 EPS above consensus; guides FY22EPS above consensus
Steel Dynamics (STLD) beats by $0.32, beats on revs
Synovus (SNV) beats by $0.07, reports revs in-line
Tenet Healthcare (THC) reports Q1 (Mar) results, revs in-line; guides Q2 EPS below consensus, revs in-line; guides FY22EPS in-line, revs mostly below consensus
Tesla (TSLA) beats by $0.95, beats on revs; reiterates expectation to achieve 50% average annual growth in deliveries over multi-year horizon
Texas Capital (TCBI) misses by $0.03, misses on revs; expects FY22revenue growth to be down low single-digits
Tractor Supply (TSCO) beats by $0.23, beats on revs; reaffirms FY22EPS guidance, revs guidance; Comparable store sales increased 5.2%
TRI Pointe Homes (TPH) beats by $0.19, beats on revs
Umpqua Holdings (UMPQ) beats by $0.03, beats on revs
Union Pacific (UNP) reports EPS in-line, beats on revs
United Airlines (UAL) misses by $0.02, misses on revs; expects to be profitable for FY22; expects highest quarterly revenue in company history in Q2
US Foods (USFD) sees Q1 EPS and revs above consensus; reaffirms FY22guidance
Valmont (VMI) beats by $0.63, beats on revs; guides FY22EPS above consensus, revs above consensus
Vertex Pharma (VRTX) receives Marketing Authorization for TRIKAFTA from Health Canada
Watsco (WSO) beats by $1.10, beats on revs
WNS (WNS) beats by $0.08, beats on revs; guides FY23revs in-line
Xerox (XRX) misses by $0.25, beats on revs; reaffirms FY22revs guidance
General News:
Russian President Putin claims that his army has seized Mariupol, according to Bloomberg
French President Emmanuel Macron leads Marine Le Pen by nine points in polling for French election on Sunday. Mr. Macron defeated her by 32 points in 2017.
Senator Bernie Sanders (I-VT) is open to running for president in 2024 if President Biden decides not to run, according to the Washington Post
DOJ says they will appeal judge's ruling against transportation mask mandate following CDC recommendation
The 11th Circuit Court of Appeals will hear transportation mask mandate case appeal. Health experts are concerned that the conservative leaning court will permanently constrain the CDC's ability to issue mask mandates in the future. Transportation mask mandate will remain void while court hears the appeal
AstraZeneca (AZN): Evusheld shown to reduce the risk of developing symptomatic COVID-19 by 77% in the primary analysis and by 83% in the six month follow-up analysis
Boeing (BA) advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in 2H22, according to Reuters
Endo International (ENDP): Tennessee Court of Appeals orders recusal of trial court judge and vacates default judgment on liability against Endo
Energy Vault (NRGV) appoints David Hitchcock as Interim CFO
Coinbase Global (COIN) announces that "Coinbase NFT" is now in beta
Dave & Buster's (PLAY) extends Interim CEO term; shall remain in effect until a permanent Chief Executive Officer is appointed and begins his or her service or until the Letter Agreement is terminated
DiDi Global (DIDI): China officials are not satisficed with proposed punishments for DIDI; thus they are delaying probe - CNBC
Didi Global (DIDI) to close food delivery service in Japan, according to Nikkei
Disney (DIS): Hong Kong Disneyland reopens, according to WHIO
Dow (DOW) announces new alkoxylation capacity in U.S. and Europe to meet continued robust demand growth
Ford Motor (F) debuts Lincoln Star Concept - to introduce three new fully electric vehicles from Lincoln by 2025
Green Plains (GPRE) announces achievement of breakthrough 60% protein concentrations at Nebraska biorefinery
Hawaiian Electric (HE) discloses departure of CFO Gregory C. Hazelton, effective July 1
Humana (HUM) has signed a definitive agreement with private investment firm Clayton, Dubilier & Rice to divest a majority interest in the Hospice and Personal Care divisions of Humana's Kindred at Home subsidiary
IBM (IBM) and Red Hat announced the companies are part of a five-year collaboration to modernize the U.S. Department of Education's G5 grants management system
Kaman (KAMN) authorizes $50 mln stock repurchase program
Li-Cycle (LICY) has completed commercial agreements with LG Energy Solution for the supply of manufacturing scrap for recycling for the sale of nickel sulphate from Li-Cycle's Rochester Hub
Netflix (NFLX): Pershing Square Holdings (PSHZF) releases letter to shareholders; says sold NFLX investment today
Nuvve (NVVE) selected as collaboration partner with Department of Energy to accelerate V2G technology
Oatly Group AB (OTLY) announces executive moves; Jean-Christophe Flatin named as Global President and Daniel Ordonez named COO
Pool (POOL) beats by $1.32, beats on revs; raises FY22 EPS above consensus
Raytheon Technologies (RTX) awarded $480 mln Navy contract
Raytheon Technologies (RTX) receives awards up to $1.68 bln from US Navy for Zumwalt destroyer engineering services
Regions Financial (RF) authorizes $2.5 bln stock repurchase program
Spotify (SPOT): Former President Obama and his wife will leave Spotify, according to Bloomberg
Starbucks (SBUX) files complaint against union, according to Bloomberg
Travere Therapeutics (TVTX) announces retirement of Laura Clague as CFO, effective in August
M&A:
Humana (HUM) aiming to sell hospice unit to private equity firm for $3 bln, according to Bloomberg
Mandiant (MNDT) discloses receipt of request for additional information from the DOJ in connection with merger agreement with Google (GOOG/L)
ON24, Inc. (ONTF) announced it has acquired VIBBIO, a cloud video software company; financial terms not disclosed
Rite Aid (RAD) confirms that it previously rejected a non-binding, off-market proposal from Spear Point Capital Management to acquire all of the outstanding shares of the Company's common stock
Syndicate:
Carvana (CVNA) files for share common stock offering, no amount provided
Holley Inc. (HLLY) prices secondary offering of 8.0 mln shares of common stock at $12.00 per share
IPOs:
Expected to Price:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
UAL +7.5%, TSLA +7.2%, LSTR +7.1%, LBRT +6.6%, GPRE +6.1%, CNS +5.4%, CNS +5%, VMI +4.7%, NVVE +4.3%, ENDP +3.9%, WNS +3.9%, ALK +3.7%, MNOV +2.9%, LICY +2.9%, ALGT +2.9%, BDN +2.7%, NRGV +2.5%, VRM +2.4%, DOW +2.2%, CSX +2%, KMI +1.9%, RF +1.7%, STLD +1.4%, HE +1.1%, KAMN+0.9%, RTX +0.9%, GOOG +0.8%, KNX +0.7%, SLG+0.7%
Gapping down:
SNBR -13.4%, EFX -9.8%, AA -6.6%, CVNA -4.9%, BHP -3.9%, UMPQ -3.7%, VRTX -2.6%, DHR -2%, TPH -1.3%, LRCX -0.7%, MNDT -0.6%
Analyst Research (see Upgrades/Downgradescalendarfor full list):
Upgrades
Bank First Corporation (BFC) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $84
BHP Group (BHP) upgraded to Buy from Neutral at Citigroup
E2open (ETWO) upgraded to Buy from Neutral at BofA Securities
Exxon Mobil (XOM) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $100
Harmonic (HLIT) upgraded to Overweight from Equal Weight at Barclays; tgt $11
MarketAxess (MKTX) upgraded to Neutral from Sell at Compass Point; tgt $275
PBF Energy (PBF) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $30
Range Resources (RRC) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $49
Southwestern Energy (SWN) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $12
Downgrades:
Arcturus Therapeutics (ARCT) downgraded to Neutral from Buy at Citigroup; tgt lowered to $29
Berkshire Hills Bancorp (BHLB) downgraded to Sell from Neutral at Compass Point; tgt $23
Chevron (CVX) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $165
CNX Resources (CNX) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $27
Comerica (CMA) downgraded to Mkt Perform from Outperform at Raymond James
Danone (DANOY) downgraded to Mkt Perform from Outperform at Bernstein
Enovis Corporation (ENOV) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Equifax (EFX) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $200
FTC Solar (FTCI) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $3
Monarch Casino & Resort (MCRI) downgraded to Hold from Buy at Jefferies; tgt raised to $90
Monarch Casino & Resort (MCRI) downgraded to Hold from Buy at Stifel; tgt $96
National Grid (NGG) downgraded to Hold from Buy at Berenberg
Netflix (NFLX) downgraded to Hold from Buy at DZ Bank; tgt $280
Netflix (NFLX) downgraded to Hold from Buy at Edward Jones
Rio Tinto (RIO) downgraded to Hold from Buy at Berenberg
Scotts Miracle-Gro (SMG) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $110
Twitter (TWTR) downgraded to Hold from Buy at Truist; tgt $50
Others:
Athira Pharma (ATHA) initiated with a Buy at Berenberg; tgt $33
Comerica (CMA) opened 90-day Positive Catalyst Watch at Citigroup
Mr. Cooper Group (COOP) initiated with a Neutral at BTIG Research
Nyxoah S.A. (NYXH) initiated with an Outperform at Oppenheimer; tgt $30
PennyMac (PFSI) initiated with a Buy at BTIG Research; tgt $60
UWM Holdings (UWMC) initiated with a Neutral at BTIG Research
YETI Holdings (YETI) assumed with an Equal-Weight at Morgan Stanley; tgt lowered to $64
Upcoming Events:
Econ Data:
08:30 ET: Initial Claims for Apr 16 (Briefing.comConsensus 195K; Prior 185K)
08:30 ET: Continuing Claims for Apr 9 (Briefing.comConsensus NA; Prior 1475K)
08:30 ET: Philadelphia Fed Index for Apr (Briefing.comConsensus 21.0; Prior 27.4)
10:00 ET: Leading Economic Index for Mar (Briefing.comConsensus 0.3%; Prior 0.3%)
10:30 ET: EIA Natural Gas Inventories for Apr 16 (Briefing.comConsensus NA; Prior +15 bcf)
Earnings:
Monday (Apr 18)
Morning: BAC BK SCHW SYF
Afternoon: ELS FNB HOPE JBHT NBHC PNFP
Tuesday (Apr 19)
Morning: BMI CFG CBSH FITB HAL HAS IRDM JNJ LMT MAN PLD SBNY SI TRV TFC
Afternoon: FHN FULT HWC IBM IBKR MRTN NFLX OMC PACW REXR LRN UCBI WTFC
Wednesday (Apr 20)
Morning: ABT ANTM ASML BKR CMA GATX HCSG LAD MTB MKTX NDAQ PG RCI
Afternoon: AA BDN CNS CCI CSX CVBF EFX FR GL KALU KMI KNX LRCX LSTR LBRT RLI SEIC SLG SNBR STLD THC TSLA TCBI UMPQ UAL VMI
Thursday (Apr 21)
Morning: ABB ALK AAL T AUB AN BANC BKU BX COLB DHR DOW EWBC FCX GPC HRI HOMB HBAN KEY MMC NEE NEP NUE PNR PM POOL DGX SASR SNA SON SNV TSCO TPH UNP WSO WNS
During Market Hours: WABC
Afternoon: ASB OZK BJRI SAM FFBC FE GBCI HTH ISRG PPG XM SNAP SIVB UFPI VICR WAL WSFS
Friday (Apr 22)
Morning: AXP ALV AZZ CLF FHB GNTX HCA KMB NEM RF SAP SLB VZ
Asia & Europe detail:
Asia: Nikkei +1.2%, Hang Seng -1.3%, Shanghai Composite -2.3%
Equity indices in the Asia-Pacific region ended Thursday on a mixed note. The Bank of Japan will continue offering to buy unlimited amounts of 10-yr JGBs until Tuesday. Japan's Finance Minister is expected to meet with his U.S. counterpart today. An extra budget will be compiled by Japan's government. South Korea's exports through the first 20 days of April were up 16.9% yr/yr with chip exports increasing 22.9%.
In economic data:
South Korea's March PPI 1.3% m/m (last 0.5%); 8.8% yr/yr (last 8.5%)
Hong Kong's March Unemployment Rate 5.0% (last 4.5%)
New Zealand's Q1 CPI 1.8% qtr/qtr (expected 2.0%; last 1.4%); 6.9% yr/yr (expected 7.1%; last 5.9%)
---Equity Markets---
Japan's Nikkei: +1.2%
Hong Kong's Hang Seng: -1.3%
China's Shanghai Composite: -2.3%
India's Sensex: +1.5%
South Korea's Kospi: +0.4%
Australia's ASX All Ordinaries: +0.2%
---FX---
USD/JPY: UNCH at 127.96
USD/CNH: +0.4% to 6.4700
USD/INR: -0.2% to 76.11
Europe: DAX +1.6%, FTSE +0.2%, CAC +1.9%
Major European indices trade in the green. There are growing expectations that the European Central Bank will raise rates as early as July after policymakers de Guindos and Wunsch spoke about the possibility. Greece will increase its minimum wage on May 1.Industrial robotics company ABB reported strong Q2 results. British Prime Minister Johnson indicated that he will seek reelection.
In economic data:
Eurozone's March CPI 2.4% m/m (expected 2.5%; last 0.9%); 7.4% yr/yr (expected 7.5%; last 5.9%). March Core CPI 1.2% m/m, as expected (last 0.5%); 2.9% yr/yr (expected 3.0%; last 2.7%)
France's April Business Survey 108 (expected 105; last 107)
---Equity Markets---
STOXX Europe 600: +0.8%
Germany's DAX: +1.6%
U.K.'s FTSE 100: +0.2%
France's CAC 40: +1.9%
Italy's FTSE MIB: +0.3%
Spain's IBEX 35: +1.0%
---FX---
EUR/USD: +0.3% to 1.0887
GBP/USD: -0.1% to 1.3046
USD/CHF: +0.1% to 0.9488
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