Search

29/03/22 Briefing


The S&P 500 futures trade 29 points, or 0.6%, above fair value amid positive momentum and continuing hope that Russia and Ukraine can reach a ceasefire soon.

Negotiators from both sides will resume peace talks in Turkey today, meeting face-to-face for the first time in over two weeks, according to Reuters. Ukraine is hopeful for a ceasefire, but U.S. officials continue to express their doubts about Russia's intentions.

Strikingly, the 2s10s spread in the Treasury market has now compressed to within ten basis points, stoking speculation of a recession down the road should there be an inversion. That hasn't bothered the futures market, though, which is appearing more optimistic about the near-term outlook.

The 2-yr yield is up ten basis points to 2.44%, and the 10-yr yield is up four basis points to 2.52%. The U.S. Dollar Index is down 0.3% to 98.78 amid relative strength in the euro, which is up 0.5% to 1.1039 amid hope for a ceasefire. WTI crude is down 0.2% to $105.71/bbl.

On the data front, investors will receive the FHFA Housing Price Index for February (Briefing.comconsensus 1.3%) and the S&P Case-Shiller Home Price Index for February (Briefing.comconsensus 18.7%) at 9:00 a.m. ET, followed by the Conference Board's Consumer Confidence Index for March (Briefing.comconsensus 107.5) and the JOLTS - Job Openings report for February at 10:00 a.m. ET.

In U.S. Corporate news:

  • FedEx (FDX 234.75, +4.70): +2.0% after announcing that Frederick Smith, Chairman and CEO, will become Executive Chairman, and COO Raj Subramaniam will be promoted to CEO on June 1.

  • Nielsen (NLSN 26.85, +4.64): +20.9% after agreeing to be acquired by a private equity consortium led by Evergreen and Brookfield (BAM 57.00, -0.18, -0.3%) for $16 billion in cash, including debt.

  • LHC Group (LHCG 168.94, +11.71): +7.5% after agreeing to combine with UnitedHealth's (UNH 514.01, +0.81, +0.2%) Optum group for $170 per share, or about $5.4 billion, in cash.

  • Dave & Buster's (PLAY 40.80, -2.32): -5.4% after missing revenue estimates.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. Japan's Nikkei: +1.1% Hong Kong's Hang Seng: +1.0% China's Shanghai Composite: -0.3% India's Sensex: +0.6% South Korea's Kospi: +0.4% Australia's ASX All Ordinaries: +0.8%.

  • In economic data:

  • Japan's February Unemployment Rate 2.7% (expected 2.8%; last 2.8%)

  • South Korea's March Consumer Confidence 103.2 (last 103.1)

  • Australia's February Retail Sales 1.8% m/m (expected 1.0%; last 1.8%)


  • In news:

  • The Bank of Japan conducted another emergency buying operation, receiving more demand than what was seen on Monday.

  • Japan's Prime Minister Kishida ordered the compilation of the next stimulus package by the end of April.

  • The Bank of Japan expects the country's CPI to accelerate in April.

  • South Korea is expected to announce an extra budget.

  • China Securities Journal speculated that the reserve requirement ratio may be cut in Q2.



  • Major European indices trade on a firmly higher note. STOXX Europe 600: +1.6% Germany's DAX: +1.9% U.K.'s FTSE 100: +1.3% France's CAC 40: +2.5% Italy's FTSE MIB: +1.9% Spain's IBEX 35: +1.7%.

  • In economic data:

  • Germany's February Import Price Index 1.3% m/m (expected 1.8%; last 4.3%); 26.3% yr/yr (expected 26.9%; last 26.9%). April GfK Consumer Climate -15.5 (expected -14.0; last -8.5)

  • U.K.'s February Mortgage Lending GBP4.67 bln (expected GBP6.00 bln; last GBP5.93 bln). February BoE Consumer Credit GBP1.876 bln (expected GBP843 mln; last GBP143 mln)

  • France's March Consumer Confidence 91 (expected 94; last 97)

  • Spain's February Retail Sales 0.9% yr/yr (last 4.1%)


  • In news:

  • Negotiators from Russia and Ukraine are discussing a cease-fire in Turkey today.

  • Recent reports suggest that Ukraine may be allowed to join the EU if it doesn't join NATO.

  • European Central Bank policymaker De Cos said that the governing council sees inflation stabilizing around target in 2024 under all scenarios.




U.S. equity futures:

  • S&P 500 Futures: +25 @ 4,601

  • DJIA Futures: +184 @ 35,140

  • Nasdaq 100 Futures: +94 @ 15,081

Overseas:

  • Europe: DAX +1.9%, FTSE +1.3%, CAC +2.5%

  • Asia: Nikkei +1.1%, Hang Seng 1.0%, Shanghai Composite -0.3%

Commodities:

  • Crude Oil -3.57 @ 102.39

  • Nat Gas -0.173 @ 5.365

  • Gold -36.10 @ 1903.70

  • Silver -0.696 @ 25.500

  • Copper +0.0170 @ 4.7425

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

  • AEye (LIDR) reports Q4 results, guides 2022 revs below consensus

  • Conn's (CONN) misses by $0.15, misses on revs

  • Dave & Buster's (PLAY) reports Q4 (Jan) results, misses on revs, comps of -2.6% vs 2019; first eight weeks of AprQ saw comps of +5.4% vs 2019

  • Ginkgo Bioworks (DNA) reports Q4 (Dec) results, beats on revs; guides FY22 revs above consensus

  • Heliogen (HLGN) reports FY21 results; beats on revs; sees FY22 revs below expectations

  • IGM Biosciences (IGMS) beats by $0.04

  • Jefferies (JEF) beats by $0.34, beats on revs

  • Lightning eMotors (ZEV) reports Q4 (Dec) results, misses on revs; guides Q1 revs below consensus due to supply constraints; announces expanded partnership with Forest River

  • Lovesac (LOVE) beats by $1.45, beats on revs

  • McCormick (MKC) beats by $0.01, beats on revs; reaffirms FY22 EPS guidance, revs guidance

  • NeoGenomics (NEO) CEO steps down, co lowers Q1 revenue and EBITDA guidance

  • Sanofi (SNY) raises target sales peak of Dupixent to 13 billion

  • Solo Brands (DTC) beats by $0.13, beats on revs; guides Q1 revs below consensus; guides FY22 revs in-line

  • Taboola (TBLA) reaffirms Q1 revenue guidance


  • General News:

  • Ukraine pushes back Russian forces away from Kyiv, according to the New York Times

  • Ukraine is hoping peace talks that start today will lead to ceasefire, but US officials are not confident Russia wants to end war, according to Reuters

  • Shanghai increases lockdown restrictions, which means people will only be allowed to leave home for a COVID-19 test. They will not be allowed to go outside even to walk their dog, according to Bloomberg

  • Shanghai's government will import COVID-19 drugs and vaccines to control outbreak, according to Japan Times

  • Senate passes America COMPETES Act of 2022; sending it to conference committee where it will need to be negotiated from different House version; bill provides $52 bln in funding for US production of semiconductors

  • DOJ will support technology antitrust legislation, according to the Wall Street Journal

  • Bill to legalize marijuana could pass out by a narrow margin this week, but it is likely dead on arrival in Senate, according to Market Watch

  • Amazon (AMZN) could introduce fashion stores in US, according to Business Insider

  • Ambarella (AMBA) names Brian White as CFO

  • American International (AIG) to rebrand Life & Retirement business as Corebridge Financial

  • Antares Pharma (ATRS) receives FDA approval for TLANDO

  • AstraZeneca (AZN): Ondexxya approved in Japan for reversal of acute major bleeds in patients on Factor Xa inhibitors

  • Ball Corp (BLL) to reduce operations in Russia

  • Barclays PLC (BCS) provides impact of over-issuance under BBPLC US shelf; Barclays expects the rescission losses (net of tax) to be GBP 450 mln

  • Bristol-Myers (BMY) announces that the European Medicines Agency has validated its type II variation application for Opdivo in combination with chemotherapy for the neoadjuvant treatment of patients with resectable stage IB to IIIA non-small cell lung cancer, based on results from the CheckMate -816 trial

  • Cullinan Management (CGEM) provides clinical update for CLN-081; confirms overall response rate improves to 41% at 100 mg BID dose level

  • Cumulus Media (CMLS) and the National Football League (NFL) extend and expand partnership with multi-year agreement

  • Cushman & Wakefield (CWK) reaches agreement to transfer business in Russia to local operator

  • Enanta Pharmaceuticals (ENTA) announces that the U.S. Food and Drug Administration has granted Fast Track designation for EDP-235, its coronavirus 3CL protease inhibitor specifically designed as a once-daily, oral treatment for COVID-19

  • Envista (NVST) receives FDA Clearance for Assisted Intelligence Mandibular Nerve Tracing

  • FedEx (FDX): Raj Subramaniam to become new CEO; Frederick Smith will become Executive Chairman

  • Gogo (GOGO) names Sergio Aguirre as President and COO

  • Hudbay (HBM) Provides Annual Reserve and Resource Update

  • IGM Biosciences (IGMS) and Sanofi announce collaboration agreement for oncology, immunology and inflammation targets

  • Intuit (INTU) Responds to Complaint from U.S. Federal Trade Commission

  • Latch (LTCH) CFO to pursue other opportunities; Barry Schaeffef to assume interim CFO

  • Lipocine (LPCN): FDA approves TLANDO (testosterone undecanoate) oral treatment for testosterone replacement therapy; commercial launch expected in 2Q 2022

  • Lucira Health (LHDX) COVID-19 & flu at-home molecular test shows positive clinical study results

  • Murphy Oil (MUR): presence of hydrocarbons not found at the Cutthroat-1 exploration well in block SEAL-M-428 in the Sergipe-Alagoas Basin offshore Brazil

  • Neurocrine Biosciences (NBIX) collaboration partner receives regulatory approval for Dysval as treatment for tardive dyskinesia in Japan

  • Novo Nordisk (NVO): FDA approves 2.0 mg dose of Ozempic

  • Passage Bio (PASG) Announces Publication of Preclinical Data that Support Ongoing Clinical Study of PBKR03 in Krabbe Disease

  • Petrobras (PBR): Brazil President Jair Bolsonaro will soon replace CEO at Petrobras, according to Bloomberg

  • Pfizer (PFE) announces positive top-line results from yearlong Phase 3 Trial of Etrasimod in ulcerative colitis, underscoring best-in-class potential

  • Piedmont Lithium (PLL) announces a 42% increase in mineral resources at the Ewoyaa Project

  • Scorpio Tankers (STNG) enters into Memorandum of Understanding with Carbon Ridge to develop onboard carbon capture

  • Southwest Air (LUV) and the International Association of Machinists and Aerospace Workers (IAM) reach a tentative agreement for its customer service employees

  • Taysha Gene Therapies (TSHA) announces the initiation of clinical development of TSHA-102 for the treatment of Rett syndrome under a recently approved Clinical Trial Application by Health Canada

  • Tesla (TSLA): Elon Musk tweets that SpaceX Falcon team aiming for 60 launches this year

  • Treace Medical Concepts (TMCI) files lawsuit against Fusion Orthopedics, alleging infringement of multiple patents related to its Lapiplasty 3D Bunion Correction system

  • Uber (UBER) and BP (BP) to drive delivery growth with global strategic partnership

  • Yandex (YNDX) data harvesting is resulting in security concerns, according to Financial Times


  • M&A:

  • Boyd Gaming (BYD) to acquire Pala Interactive for $170 mln

  • Huttig Building Products (HBP): Woodgrain commences tender offer for all outstanding shares of Huttig Building Products

  • LCI Industries (LCII) subsidiary, Lippert Components Manufacturing, acquires business assets of Girard Systems and Girard Products LLC; financial details not disclosed

  • LHC Group (LHGC): UnitedHealth (UNH) aiming to purchase LHCG for $5.4 bln, according to the Wall Street Journal

  • Nielsen (NLSN) enters into agreement to be acquired by Evergreen and Brookfield (BAM) consortium for $16 bln; Brookfield Business Partners also announces it will invest approximately $2.65 billion by way of preferred equity, convertible into 45% of Nielsen's common equity

  • Raymond James (RJF) reaches agreement to acquire SumRidge Partners; terms of deal not disclosed

  • Sangoma Tech (SANG) announces acquisition of NetFortis Corp

  • Spectrum Brands (SPB) acquires retail propane distribution and refined fuels assets of Quarles Petroleum for approximately $145 mln before adjustments for working capital

  • Transocean (RIG) announces that it has purchased a minority interest in Ocean Minerals Ltd


  • Syndicate:

  • Aterian (ATER) files for 17,530,070 share common stock offering by selling shareholders

  • Fifth Third (FITB) files mixed securities shelf offering

  • IGM Biosciences (IGMS) intends to offer and sell $200.0 mln of shares of its common stock and, in lieu of common stock to certain investors that so choose, non-voting common stock, in an underwritten public offering

  • Sky Harbour (SKYH) files for 14,519,218 share common stock offering related to warrants; also files for 7,719,779 share common stock offering by selling shareholders related to warrants

  • Southwest Gas (SWX) prices offering of 5.5 mln shares of common stock at $74.00 per share


  • IPOs:

  • Expected to Price:

  • No IPOs expected to price.



Gapping Up/Down

  • Gapping up:

  • IGMS +37.9%, EVTL +11%, DNA +8%, BHLB +4.9%, HBM +4%, ATER +3.9%, NVO +2.8%, STNG +2.5%, FDX +2.2%, BCS +1.9%, AZN +1.4%, BYD +1.3%, FITB +0.9%, HBP +0.7%, CWK +0.6%


  • Gapping down:

  • NEO -27.2%, AVAH -21.2%, ZEV -9.7%, SKYH-9.5%, PLAY -7.2%, LIDR -7.1%, CGEM -5%, NBIX-3.8%, SWX -2.6%, RJF -1.2%, BLL -1%, AMBA-0.7%


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

  • Customers Bancorp (CUBI) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $80

  • Fortinet (FTNT) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $395

  • Hoegh LNG Partners (HMLP) upgraded to Buy from Hold at Stifel; tgt raised to $9.50

  • SiteOne Landscape Supply (SITE) upgraded to Neutral from Sell at UBS; tgt lowered to $165


  • Downgrades:

  • Aveanna (AVAH) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $5.50

  • Barclays PLC (BCS) downgraded to Neutral from Overweight at JP Morgan

  • Black Diamond Therapeutics (BDTX) downgraded to Neutral from Outperform at Wedbush

  • Bright Health Group (BHG) downgraded to Neutral from Overweight at JP Morgan

  • CVS Health (CVS) downgraded to Hold from Buy at Deutsche Bank; tgt $110

  • Etsy (ETSY) downgraded to Hold from Buy at Loop Capital; tgt lowered to $140

  • NeoGenomics (NEO) downgraded to Equal-Weight from Overweight at Stephens; tgt lowered to $16

  • NeoGenomics (NEO) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $18

  • NortonLifeLock (NLOK) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $28

  • Pinterest (PINS) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $30

  • RBB Bancorp (RBB) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $25.50

  • Reynolds Consumer Products (REYN) downgraded to Sell from Buy at Goldman; tgt lowered to $26

  • SentinelOne (S) downgraded to Equal Weight from Overweight at Barclays; tgt $37

  • The RealReal (REAL) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $8

  • Trean Insurance Group (TIG) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $6

  • View (VIEW) downgraded to Mkt Perform from Outperform at Raymond James


  • Others:

  • ANSYS (ANSS) initiated with a Neutral at Mizuho; tgt $310

  • Beachbody (BODY) initiated with a Neutral at BofA Securities; tgt $2.40

  • Bright Horizons (BFAM) initiated with a Hold at Deutsche Bank; tgt $114

  • Community Health (CYH) initiated with an Equal Weight at Wells Fargo; tgt $12

  • Customers Bancorp (CUBI) initiated with an Equal-Weight at Stephens; tgt $62.50

  • Enviva (EVA) initiated with a Buy at Truist; tgt $100

  • HCA (HCA) initiated with an Equal Weight at Wells Fargo; tgt $267

  • Lamar Advertising (LAMR) initiated with a Peer Perform at Wolfe Research; tgt $131

  • Luminar Technologies (LAZR) initiated with a Neutral at SMBC Nikko; tgt $16

  • Nemaura Medical (NMRD) initiated with a Buy at H.C. Wainwright; tgt $12

  • Nextdoor (KIND) initiated with a Hold at Truist; tgt $7

  • OUTFRONT Media (OUT) initiated with an Outperform at Wolfe Research; tgt $34

  • Paycor (PYCR) initiated with a Neutral at DA Davidson; tgt $29

  • Peoples Financial Services (PFIS) initiated with an Overweight at Stephens; tgt $57

  • Procore Technologies (PCOR) initiated with a Buy at Mizuho; tgt $75

  • Provident Bancorp (PVBC) initiated with an Overweight at Stephens; tgt $20

  • QuantumScape Corporation (QS) initiated with a Neutral at SMBC Nikko; tgt $20

  • Tenet Healthcare (THC) initiated with an Overweight at Wells Fargo; tgt $100

  • Universal Health (UHS) initiated with an Underweight at Wells Fargo; tgt $139

  • Wolfspeed (WOLF) initiated with an Outperform at SMBC Nikko; tgt $140


Upcoming Events:

  • Econ Data:

  • 09:00 ET: FHFA Housing Price Index for Jan. (Briefing.comConsensus 1.3%; Prior 1.2%)

  • 09:00 ET: S&P Case-Shiller Home Price Index for Jan. (Briefing.comConsensus 18.7%; Prior 18.6%)

  • 10:00 ET: Consumer Confidence for Mar. (Briefing.comConsnsus 107.5; Prior 110.5)

  • 10:00 ET: JOLTS- Job Openings for Feb (Briefing.comConsensus NA; Prior 11.263)


  • Earnings:

  • Monday (Mar 28)

  • Morning: SAIC

  • Afternoon: PLAY


  • Tuesday (Mar 29)

  • Morning: ASO CONN LOVE MKC DTC

  • Afternoon: CALM CHWY LULU MU MLKN PRGS PVH RH SPWH VRNT


  • Wednesday (Mar 30)

  • Morning: AER BNTX CNM FIVE MSM PAYX

  • Afternoon: PHR PATH


  • Thursday (Mar 31)

  • Morning: SHCR WBA

  • Afternoon: BB BLND DCT NCNO



Asia & Europe detail:

Asia: Nikkei +1.1%, Hang Seng 1.0%, Shanghai Composite -0.3%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly higher note. The Bank of Japan conducted another emergency buying operation, receiving more demand than what was seen on Monday. Japan's Prime Minister Kishida ordered the compilation of the next stimulus package by the end of April. The Bank of Japan expects the country's CPI to accelerate in April. South Korea is expected to announce an extra budget. China Securities Journal speculated that the reserve requirement ratio may be cut in Q2.

  • In economic data:

  • Japan's February Unemployment Rate 2.7% (expected 2.8%; last 2.8%)

  • South Korea's March Consumer Confidence 103.2 (last 103.1)

  • Australia's February Retail Sales 1.8% m/m (expected 1.0%; last 1.8%)


---Equity Markets---

  • Japan's Nikkei: +1.1%

  • Hong Kong's Hang Seng: +1.0%

  • China's Shanghai Composite: -0.3%

  • India's Sensex: +0.6%

  • South Korea's Kospi: +0.4%

  • Australia's ASX All Ordinaries: +0.8%

---FX---

  • USD/JPY: -0.3% to 123.49

  • USD/CNH: -0.1% to 6.3799

  • USD/INR: -0.2% to 76.00

Europe: DAX +1.9%, FTSE +1.3%, CAC +2.5%

Major European indices trade on a firmly higher note. Negotiators from Russia and Ukraine are discussing a cease-fire in Turkey today. Recent reports suggest that Ukraine may be allowed to join the EU if it doesn't join NATO. European Central Bank policymaker De Cos said that the governing council sees inflation stabilizing around target in 2024 under all scenarios.

  • In economic data:

  • Germany's February Import Price Index 1.3% m/m (expected 1.8%; last 4.3%); 26.3% yr/yr (expected 26.9%; last 26.9%). April GfK Consumer Climate -15.5 (expected -14.0; last -8.5)

  • U.K.'s February Mortgage Lending GBP4.67 bln (expected GBP6.00 bln; last GBP5.93 bln). February BoE Consumer Credit GBP1.876 bln (expected GBP843 mln; last GBP143 mln)

  • France's March Consumer Confidence 91 (expected 94; last 97)

  • Spain's February Retail Sales 0.9% yr/yr (last 4.1%)


---Equity Markets---

  • STOXX Europe 600: +1.6%

  • Germany's DAX: +1.9%

  • U.K.'s FTSE 100: +1.3%

  • France's CAC 40: +2.5%

  • Italy's FTSE MIB: +1.9%

  • Spain's IBEX 35: +1.7%

---FX---

  • EUR/USD: +0.5% to 1.1044

  • GBP/USD: -0.1% to 1.3085

  • USD/CHF: +0.2% to 0.9359

0 views0 comments

Recent Posts

See All