The S&P 500 futures are unchanged and are trading roughly in line with fair value. The Nasdaq 100 futures are unchanged and are trading roughly in line with fair value. The Dow Jones Industrial Average futures are up 8 points and are trading slightly above fair value.
The stock market is poised to open somewhat flat with market participants lacking conviction on either side of the tape. Money flows this morning look a lot like yesterday's session with bank stocks showing nice gains while lagging mega cap stocks weigh down the broader market.
Treasury yields continue to climb this morning, reflecting the sentiment shift around bank stocks. The 2-yr note yield is back above 4.00%, up three basis points to 4.02%. The 10-yr note yield is up four basis points to 3.56%. The U.S. Dollar Index is down 0.3% to 102.56.
Energy complex futures trade in mixed fashion. WTI crude oil futures are up 0.1% to $72.86/bbl and natural gas futures are down 0.9% to $2.19/mmbtu.
Market participants will receive the following economic data today:
8:30 ET: February advance goods trade deficit (prior -$91.50 bln), advance Retail Inventories (prior 0.3%), and advance Wholesale Inventories (prior -0.4%)
9:00 ET: January FHFA Housing Price Index (prior -0.1%) and January S&P Case-Shiller Home Price Index (Briefing.com consensus 2.5%; prior 4.6%)
10:00 ET: March Consumer Confidence (Briefing.com consensus 101.5; prior 102.9)
In corporate news:
Alibaba (BABA 94.26, +8.14, +9.5%): aiming to split into six additional units, according to Bloomberg
Carnival (CCL 8.97, +0.18, +2.0%): upgraded to Equal Weight from Underweight at Wells Fargo
Walgreens Boots Alliance (WBA 33.50, +0.56, +1.7%): beats by $0.05, beats on revs; reaffirms FY23 EPS guidance
Occidental Petro (OXY 61.00, +1.35, +2.3%): upgraded to Outperform from Market Perform at TD Cowen
Paramount Global (PARA 21.83, +1.07, +5.2%): upgraded to Buy from Neutral at BofA Securities
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: +1.1%, China's Shanghai Composite: -0.2%, India's Sensex: -0.1%, South Korea's Kospi: +1.1%, Australia's ASX All Ordinaries: +1.1%.
In economic data:
Japan's February BoJ Core CPI 2.7% yr/yr (expected 3.5%; last 3.1%)
Australia's February Retail Sales 0.2% m/m (expected 0.1%; last 1.8%)
In news:
Japan will spend JPY2.2 trln to stimulate its economy.
Outgoing Bank of Japan Governor Kuroda said that sustainable inflation has not been reached yet and that the central bank must be ready to issue digital currency that can coexist with other forms of money.
Japan and the U.S. reached a deal that will make electric vehicles with metals processed in Japan eligible for tax incentives in the U.S.
Australia's assistant treasurer said that the domestic funding markets continue functioning well.
Major European indices trade near their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +0.1%, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.6%.
In economic data:
France's March Business Survey 104 (expected 103; last 105)
Italy's March Consumer Confidence 105.1 (expected 104.0; last 104.0) and Business Confidence 104.2 (expected 102.5; last 103.0)
In news:
The EU froze EUR19 bln worth of post-pandemic funds for Italy, seeking clarification on how the funds will be spent.
French Finance Minister Le Maire said that his country's government aims to lower the budget deficit to 3.0% of GDP by 2027 from 4.7% in 2022.
Greek Prime Minister Mitsotakis announced that a general election will be held on May 21.
European Central Bank policymaker Rehn said that a decision on a digital euro is expected in the fall.
U.S. equity futures:
S&P 500 Futures: +1 @ 3,979
DJIA Futures: +25 @ 32,457
Nasdaq 100 Futures: +1 @ 12,674
Overseas:
Europe: DAX +0.2%, FTSE +0.1%, CAC +0.2%
Asia: Nikkei +0.2%, Hang Seng +1.1%, Shanghai Composite -0.2%
Commodities:
Crude Oil +0.21 @ 73.02
Nat Gas -0.007 @ 2.208
Gold +4.80 @ 1976.30
Silver +0.038 @ 23.183
Copper -0.0065 @ 4.072
Earnings/Guidance:
Core & Main ( CNM ▴ 3.42% ) misses by $0.02, reports revs in-line; guides FY23 revs in-line
Excelerate Energy ( EE ▴ 1.88% ) beats on top and bottom lines
IHS Holding Limited ( IHS ▴ 11.55% ) reports Q4 (Dec) results, beats on revs; guides FY23 revs above consensus
Lovesac ( LOVE ▴ 12.38% ) misses by $0.22, beats on revs; guides Q1 revs in-line; guides FY24 EPS in-line, revs in-line
McCormick ( MKC ▴ 13.12% ) beats by $0.09, beats on revs; reaffirms FY23 EPS guidance, revs guidance
Oscar Health ( OSCR ▴ 51.67% ) reaffirms FY23 direct and Assumed Policy Premiums of $6.4-6.6 mln; reaffirms FY23 adjusted EBITDA loss of $75-175K
PVH ( PVH ▴ 17.74% ) beats by $0.71, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY24 EPS above consensus, revs above consensus
Walgreens Boots Alliance ( WBA ▴ 2.82% ) beats by $0.05, beats on revs; reaffirms FY23 EPS guidance
News:
Blackrock ( BLK ▴ 0.19% believes markets are wrong to bet on Fed rate cuts, according to Bloomberg
California passes bill to limit profits of oil companies in the state, according to Bloomberg
President Biden's assault weapons ban proposal is all but certain to fail in Congress, according to the New York Times
US and Japan reach deal on minerals for EV batteries, according to the Wall Street Journal
French financial officials are searching five banks, according to Bloomberg
AAR Corp ( AIR ▴ 0.25% ) signs distribution agreement with Cloud Cap Technology, expanding its presence in the Unmanned Aerial System (UAS) market
Alibaba ( BABA ▴ 8.07% ) aiming to split into six additional units, according to Bloomberg
AnaptysBio ( ANAB ▾ 3.29% ) and GSK-partnered immuno-oncology agent Jemperli (dostarlimab-gxly) plus chemotherapy demonstrates statistically significant and clinically meaningful improvement in progression-free survival for the treatment of primary advanced or recurrent endometrial cancer versus chemotherapy alone in Phase 3 RUBY trial
Ares Management ( ARES ▴ 0.54% ) wants to raise $400 mln for new SPAC, according to Bloomberg
Athira Pharma ( ATHA 0.00% ) presents preclinical data supporting therapeutic potential of Fosgonimeton for Alzheimer's and Parkinson's Diseases at AD/PD 2023 International Conference
Bicycle Therapeutics ( BCYC ▴ 5.43% ) has entered into a strategic collaboration agreement with Novartis (NVS) to develop, manufacture and commercialize Bicycle radio-conjugates for multiple agreed upon oncology targets
BioNTech ( BNTX ▴ 0.49% ) announces new ADS repurchase program
Blackrock ( BLK ▴ 0.19% ) lost out on China pension market, according to Bloomberg
Boeing ( BA ▴ 1.03% ): Canada requests Boeing P-8 surveillance aircraft the the U.S., according to Pembroke Observer
Boeing ( BA ▴ 1.03% ) issues statement on Canada's Multi Mission Aircraft Project
Bristol-Myers ( BMY ▴ 0.41% ) receives european commission approval of Sotyktu, a once-daily oral treatment for adults with moderate-to-severe plaque psoriasis
Disney ( DIS ▾ 0.35% ) eliminated its Metaverse division, according to the Wall Street Journal
Enviva ( EVA ▴ 0.67% ) co-founder John Keppler returning as Executive Chairman, effective April 1; CEO Thomas Meth to remain as CEO; interim Chairman Ralph Alexander to transition to Lead Independent Director
FREYR Battery ( FREY ▴ 4.64% ) targets strategic coalition with four major global partners
Forum Energy Tech. ( FET 0.00% ) awarded a contract worth approximately $25 mln for an onshore project at the Safaniyah oil field, Kingdom of Saudi Arabia
GlaxoSmithKline ( GSK ▾ 0.06% ) reports Phase III RUBY clinical trial demonstrates potential of Jemperli (dostarlimab-gxly) plus chemotherapy to redefine the treatment of primary advanced or recurrent endometrial cancer versus chemotherapy alone
Google ( GOOG ▾ 1.90% ) asks judge to dismiss antitrust suit, according to Bloomberg
Hess Midstream Partners ( HESM ▴ 1.38% ) announces the execution of a definitive agreement providing for the ~$100 mln repurchase of Class B units by its subsidiary, Hess Midstream Operations LP, from affiliates of Hess Corporation and Global Infrastructure Partners, Hess Midstream's sponsors
Intra-Cellular Therapies ( ITCI ▴ 17.89% ) announces positive topline results from study 403 evaluating lumateperone as monotherapy in patients with major depressive disorder with mixed features and bipolar depression with mixed features
Invesco Mortgage Capital ( IVR ▾ 4.64% ) cuts its quarterly dividend by 38% to $0.40/share; provides financial update
Lyft ( LYFT ▴ 6.35% ) confirms leadership succession plan as David Risher will succeed Logan Green as CEO, effective April 17, 2023; says there is no change to its previously announced 1Q23 outlook
Mannkind ( MNKD ▴ 0.37% ) announces that Lauren Sabella has joined as COO, effective today
MaxCyte ( MXCT ▾ 1.22% ) names Douglas Swirsky as CFO
Merck's ( MRK ▾ 0.28% ) KEYTRUDA (pembrolizumab) plus chemotherapy significantly improved progression-free survival compared to chemotherapy alone as first-line therapy for advanced or recurrent endometrial carcinoma, regardless of mismatch repair status
Nestle ( NSRGY ) aiming to examine banking relationships, according to Reuters
Nikola Corporation ( NKLA ▾ 2.32% ) CFO Kim J. Brady to retire, effective April 7; to be succeeded by Corporate Controller Anastasiya Pasterick
Oscar Health ( OSCR ▴ 51.67% ) announces the appointment of Mark Bertolini to the role of Chief Executive Officer, effective April 3, 2023
Pinterest ( PINS ▾ 3.56% ) approves restructuring plan; to sublease certain office space and abandon other leased office spaces
Regeneron Pharma ( REGN ▴ 0.22% ) and Sonoma Biotherapeutics announce a collaboration to apply their scientific and clinical expertise and respective technology platforms to the discovery, development and commercialization of novel regulatory T cell therapies for autoimmune diseases
RH ( RH ▴ 1.76% ) files amended 10-Qs for three quarters in 2022
Rush Street Interactive ( RSI ▾ 2.24% ) and Connecticut Lottery Corporation announce joint plan to wind down online and in-person sports betting partnership in Connecticut
Spirit Aerosystems ( SPR ▴ 1.91% ) and Skyworks Aeronautics announce a Memorandum of Understanding for the companies to pursue support for Skyworks defence and commercial platforms in the U.K and European marketplace
SSR Mining ( SSRM ▴ 0.31% ) Announces Positive Exploration Results at Puna
Tejon Ranch Co. ( TRC ▾ 0.44% ) to Evaluate All Options to Proceed With the Eventual Development of Centennial at Tejon Ranch Following Court Ruling
TransAlta ( TAC ▴ 0.25% ) enters into automatic share purchase plan
Viking Therapeutics ( VKTX ▴ 50.11% ) announces results from phase 1 clinical trial of dual GLP-1/GIP receptor agonist VK2735
Voyager Therapeutics ( VYGR ▴ 0.48% ) presents new data supporting tau antibody program for Alzheimer's Disease and GBA1 gene therapy program for Parkinson's Disease at the AD/PD Conference
M&A:
Albemarle ( ALB ▴ 2.54% ) proposes to acquire Liontown
BP ( BP ▴ 1.38% ): issues statement regarding BP and ADNOC bid for interest in NewMed Energy
Crescent Point Energy ( CPG ▾ 1.13% ) announces strategic montney acquisition and updates FY23 production and CapEx guidance
Energy Transfer ( ET ▴ 0.42% ) to acquire Lotus Midstream for approximately $1.45 bln; expected to close in 2Q23
Mastercard ( MA ▾ 0.49% ) and Visa (V) among firms interested in acquiring Pismo, according to Bloomberg
TravelCenters of America ( TA ▾ 0.12% ) confirms ARKO Corp. (ARKO) proposal is not superior to the previously announced BP transaction
Syndicate:
89bio ( ETNB ▴ 1.96% ) files for 16,923,077 share common stock offering
Milestone Pharmaceuticals ( MIST ▴ 15.83% ) announced that it has entered into a $125 mln strategic funding agreement with existing shareholder, RTW Investments and certain of its affiliates
Pliant Therapeutics ( PLRX ▴ 1.37% ) files mixed shelf securities offering
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
PVH +11.6%, FREY +6.8%, LYFT +5.9%, TAC +2.6%, ANAB +2.1%, AIR +2%, EE +1.5%, FET +1.3%, EVA +1%, PINS +0.8%, VFC +0.8%, ATHA +0.8%, GSK +0.7%, FANG +0.6%, RL +0.5%
Gapping down:
IVR -5.6%, RSI -3.5%, PLRX -3.4%, ETNB -2.5%, NKLA -2%, TRC -2%, ALB -1.6%
Analyst Research (see Upgrades/Downgrades calendar for full list:
Upgrades
Array Tech (ARRY) upgraded to Buy from Hold at Truist; tgt $26
Carnival (CCL) upgraded to Equal Weight from Underweight at Wells Fargo; tgt $9
Ciena (CIEN) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $70
Easterly Government Properties (DEA) upgraded to Buy from Neutral at Compass Point; tgt $17
Elevance Health (ELV) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $572
Encore Capital (ECPG) upgraded to Buy from Neutral at Janney
FactSet (FDS) upgraded to Neutral from Sell at Redburn
Genesco (GCO) upgraded to Buy from Neutral at Seaport Research Partners; tgt $50
Occidental Petro (OXY) upgraded to Outperform from Market Perform at TD Cowen; tgt raised to $70
PagSeguro Digital (PAGS) upgraded to Buy from Neutral at Citigroup; tgt $12
Paramount Global (PARA) upgraded to Buy from Neutral at BofA Securities; tgt raised to $32
Parsons (PSN) upgraded to Outperform from Mkt Perform at William Blair
The Real Brokerage (REAX) upgraded to Buy from Long-Term Buy at Singular Research; tgt $2.20
Downgrades:
Fox Corporation (FOXA) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $34
iHeartMedia (IHRT) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $4
Marathon Petroleum (MPC) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $149
Williams Cos (WMB) downgraded to Hold from Buy at Truist; tgt $31
Others:
Astria Therapeutics (ATXS) initiated with an Outperform at Evercore ISI; tgt $18
Blink Charging (BLNK) initiated with an Equal Weight at Barclays; tgt $11
Bowlero (BOWL) initiated with a Buy at Stifel; tgt $26
Carrier Global (CARR) initiated with an Outperform at Oppenheimer; tgt $51
Foghorn Therapeutics (FHTX) initiated with a Buy at BofA Securities; tgt $10
Geron (GERN) initiated with a Neutral at Goldman; tgt $3
Gritstone bio (GRTS) initiated with a Buy at B. Riley Securities; tgt $8
Lennox Int'l (LII) initiated with a Perform at Oppenheimer
Repligen (RGEN) initiated with a Buy at The Benchmark Company; tgt $230
Trane (TT) initiated with a Perform at Oppenheimer
Ulta Beauty (ULTA) initiated with a Buy at Canaccord Genuity; tgt $622
Econ Data:
08:30 ET: Adv. Intl. Trade in Goods for Feb (Briefing.com Consensus NA; Prior -$91.5B)
08:30 ET: Adv. Retail Inventories for Feb (Briefing.com Consensus NA; Prior 0.3%)
08:30 ET: Adv. Wholesale Inventories for Feb (Briefing.com Consensus NA; Prior -0.4%)
09:00 ET: FHFA Housing Price Index for Jan (Briefing.com Consensus NA; Prior -0.1%)
09:00 ET: S&P Case-Shiller Home Price Index for Jan (Briefing.com Consensus 2.5%; Prior 4.6%)
10:00 ET: Consumer Confidence for Mar (Briefing.com Consensus 101.5; Prior 102.9)
Earnings:
Monday (Mar 27)
Morning: BNTX CCL
Afternoon: PVH
Tuesday (Mar 28)
Morning: CNM IHS LOVE MKC SNX WBA
Afternoon: CALM PLAY JEF LULU MU NCNO PRGS
Wednesday (Mar 29)
Morning: BLUE CTAS CONN KC PAYX SHCR UNF
Afternoon: CNXC FUL RH SMTC CXM VRNT
Thursday (Mar 30)
Morning: ANGO EVGO NEOG
Afternoon: BB BRZE YMAB
Asia & Europe detail:
Asia: Nikkei +0.2%, Hang Seng +1.1%, Shanghai Composite -0.2%
Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan will spend JPY2.2 trln to stimulate its economy. Outgoing Bank of Japan Governor Kuroda said that sustainable inflation has not been reached yet and that the central bank must be ready to issue digital currency that can coexist with other forms of money. Japan and the U.S. reached a deal that will make electric vehicles with metals processed in Japan eligible for tax incentives in the U.S. Australia's assistant treasurer said that the domestic funding markets continue functioning well.
In economic data:
Japan's February BoJ Core CPI 2.7% yr/yr (expected 3.5%; last 3.1%)
Australia's February Retail Sales 0.2% m/m (expected 0.1%; last 1.8%)
---Equity Markets---
Japan's Nikkei: +0.2%
Hong Kong's Hang Seng: +1.1%
China's Shanghai Composite: -0.2%
India's Sensex: -0.1%
South Korea's Kospi: +1.1%
Australia's ASX All Ordinaries: +1.1%
---FX---
USD/JPY: -0.5% to 130.90
USD/CNH: UNCH at 6.8842
USD/INR: UNCH at 82.15
Europe: DAX +0.2%, FTSE +0.1%, CAC +0.2%
Major European indices trade near their flat lines. The EU froze EUR19 bln worth of post-pandemic funds for Italy, seeking clarification on how the funds will be spent. French Finance Minister Le Maire said that his country's government aims to lower the budget deficit to 3.0% of GDP by 2027 from 4.7% in 2022. Greek Prime Minister Mitsotakis announced that a general election will be held on May 21. European Central Bank policymaker Rehn said that a decision on a digital euro is expected in the fall.
In economic data:
France's March Business Survey 104 (expected 103; last 105)
Italy's March Consumer Confidence 105.1 (expected 104.0; last 104.0) and Business Confidence 104.2 (expected 102.5; last 103.0)
---Equity Markets---
STOXX Europe 600: -0.1%
Germany's DAX: +0.2%
U.K.'s FTSE 100: +0.1%
France's CAC 40: +0.2%
Italy's FTSE MIB: +0.5%
Spain's IBEX 35: +0.6%
---FX---
EUR/USD: +0.3% to 1.0828
GBP/USD: +0.3% to 1.2317
USD/CHF: +0.2% to 0.9174
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