The S&P 500 futures are up 32 point and are trading 0.8% above fair value. The Nasdaq 100 futures are up 110 points and are trading 0.9% above fair value. The Dow Jones Industrial Average futures are up 217 points and are trading 0.7% above fair value.
The equity futures market points to a higher open after yesterday's late afternoon bounce off the session lows. Notably, many major overseas indices trade on a firmly higher note currently.
There's some modest buying interest in the Treasuries this morning. The 2-yr note yield is down one basis point to 4.06% and the 10-yr note yield is unchanged at 3.56%. The U.S. Dollar Index is up 0.1% to 102.51.
Energy complex futures trade up ahead of the open. WTI crude oil futures are up 1.1% to $74.00/bbl and natural gas futures are up 0.1% to $2.15/mmbtu.
The weekly MBA Mortgage Applications Index rose 2.9% with purchase application jumping 5.0% while refinancing applications rose 2.0%.
Other data out today includes:
10:00 ET: February Pending Home Sales (Briefing.comconsensus -2.3%; prior 8.1%)
10:30 ET: Weekly crude oil inventories (prior +1.12 mln)
In corporate news:
lululemon athletica (LULU 371.00, +50.69, +15.8%): beats by $0.14, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus
Micron (MU 60.55, +1.27, +2.1%): misses by $1.03, reports revs in-line; guides MayQ EPS below consensus, revs in-line; customer inventories improving\
Foot Locker (FL 39.13, -0.90, -2.3%): downgraded to Sell from Neutral at UBS
Macy's (M 17.04, -0.23, -1.3%): announces CEO Jeff Gennette plans to retire in Feb. 2024; current Bloomingdale' chairman Tony Spring named president and CEO-elect
UBS AG (UBS 19.76, +0.49, +2.5%): names Sergio P. Ermotti as CEO, effective April 5
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note. Japan's Nikkei: +1.3%, Hong Kong's Hang Seng: +2.1%, China's Shanghai Composite: -0.2%, India's Sensex: +0.6%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: +0.2%.
In economic data:
South Korea's March Consumer Confidence 92.0 (last 90.2)
Australia's February CPI 6.8% yr/yr (expected 7.1%; last 7.4%)
In news:
Japan's parliament passed a record JPY114 trln budget for FY23.
South Korea's government will look to boost domestic consumption, according to the country's finance minister.
China will reportedly try to attract more foreign investment. Alibaba (BABA) confirmed that it will split into six units.
There is a growing sense that the Reserve Bank of Australia will not raise its cash rate next week.
Major European indices trade on a firmly higher note. STOXX Europe 600: +0.9%, Germany's DAX: +0.9%, U.K.'s FTSE 100: +0.8%, France's CAC 40: +1.2%, Italy's FTSE MIB: +1.2%, Spain's IBEX 35: +1.0%.
In economic data:
Germany's April GfK Consumer Climate -29.5 (expected -29.2; last -30.6)
U.K.'s February BoE Consumer Credit GBP1.413 bln (expected GBP1.300 bln; last GBP1.686 bln), February Mortgage Lending GBP740 mln (expected GBP2.40 bln; last GBP2.00 bln), and February Net Lending to Individuals GBP2.20 bln (expected GBP3.70 bln; last GBP3.70 bln) o France's March Consumer Confidence 81, as expected (last 82)
Italy's February non-EU trade surplus EUR4.02 bln (last deficit of EUR1.36 bln)
Swiss March ZEW Expectations -41.3 (last -12.3)
In news:
UBS will rehire its former CEO Sergio Ermotti after Ralph Hamers stepped down.
Chipmaker Infineon raised its guidance for Q2 and FY23.
EU energy ministers have agreed to hold gas demand at a reduced level until March 2024 to secure a sufficient supply for next winter.
European Central Bank Chief Economist Lane said that he expects inflation to decelerate rapidly.
U.S. equity futures:
S&P 500 Futures: +35 @ 4,006
DJIA Futures: +243 @ 32,635
Nasdaq 100 Futures: +117 @ 12,728
Overseas:
Europe: DAX +0.9%, FTSE +0.8%, CAC +1.2%
Asia: Nikkei +1.3%, Hang Seng +2.1%, Shanghai Composite -0.2%
Commodities:
Crude Oil +0.86 @ 74.06
Nat Gas +0.002 @ 2.149
Gold -7.30 @ 1983.10
Silver -0.080 @ 23.34
Copper +0.0380 @ 4.1233
Earnings/Guidance:
Arcturus Therapeutics (ARCT) reports Q4 results, also provides pipeline update; cash runway now extends into the beginning of 2026
Cal-Maine Foods (CALM) beats by $0.92, beats on revs; declares quarterly dividend of $2.20/share
Conn's (CONN) misses by $0.67, beats on revs
Dave & Buster's (PLAY) beats by $0.10, beats on revs, pro forma comps of +19%; authorizes up to $100 mln in share repurchases
Jefferies (JEF) beats by $0.10, beats on revs
Kingsoft Cloud (KC) reports Q4 (Dec) results, beats on revs; provides Q1 guidance
lululemon athletica (LULU) beats by $0.14, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus
Micron (MU) misses by $1.03, reports revs in-line; guides MayQ EPS below consensus, revs in-line; customer inventories improving; expects overall headcount reduction to approach 15%; additional reductions to FY23 (Aug) capex plan; expects WFE to fall further in FY24
nCino (NCNO) beats by $0.09, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY24 EPS above consensus, revs in-line
Progress Software (PRGS) beats by $0.14, beats on revs; guides Q2 EPS below consensus, revs in-line; reaffirms FY23 EPS guidance, raises FY23 revenue guidance
Sharecare (SHCR) misses by $0.01, beats on revs; guides Q1 revs above two analyst estimate; guides FY23 revs below consensus
News:
President Biden says that administration response to banking issues is "not over yet.", according to Reuters
Defaults are increasing in high end office buildings amid remote work and higher interest rates, according to the Wall Street Journal
White House releases joint statement between President Biden and South Korea President Yoon
Binance seeing $2.0 bln in outflows over the past several days, according to the Wall Street Journal
BlackSky Technology (BKSY) successfully commissions two new satellites that began revenue-generating commercial operations within 18 hours of launch mission
Bluebirdbio (BLUE) beats by $0.58, misses on revs
Blueprint Medicines (BPMC): FDA lifts partial clinical hold on Phase 1/2 VELA trial of BLU-222; working with trial sites to reinitiate patient enrollment
Canopy Growth (CGC) announces the introduction of Canada's first-to-market cannabis infused beverage with naturally occurring caffeine under the Deep Space brand
ClearPoint Neuro (CLPT) announces exclusive multi-year licensing agreement of intellectual property from UC San Francisco (UCSF) through its Innovation Ventures group for intra-cerebral cellular delivery platform
Corcept Therapeutics (CORT) initiates CATALYST Phase 4 trial examining the prevalence of hypercortisolism in patients with type 2 diabetes; expect to complete enrollment by the end of this year
Crane (CR) announces Board and Executive Team for the company following previously announced separation, which is slated for April 3; mostly unchanged except for one change on the Board and a new Chief Accounting Officer
Credit Suisse (CS): Whistleblowers say that Credit Suisse has been helping Americans dodge taxes, according to CNBC
Daimler Truck Holding AG (DTRUY) collaborates with Siemens (SIEGY) to build an integrated digital engineering platform
Digital World Acquisition Corp (DWAC) received a notice from NASDAQ stating that the Company's fee delinquency has been cured, and as a result the Company has regained compliance with the applicable listing standard
Dollar General (DG) is rolling out new store layouts that reimagine the beauty, skin and hair care shopping experience for its customers
DraftKings (DKNG) announces DK Horse app has launched in 12 states with additional launches expected for the Kentucky Derby on May 6, 2023
Enovix (ENVX) announces manufacturing partner and location for Fab-2 in Malaysia
Ero Copper (ERO) announces 18% increase in mineral reserves and extension of mine life to 6 years at the Xavantina Operations
FleetCor (FLT) appoints Tom Panther as CFO, effective May 12, 2023
Gamestop (GME) will foucs on physical stores, according to the Wall Street Journal
Google (GOOG): India court upheld Google $160 mln antitrust fine, according to Bloomberg
Illumina (ILMN): Carl Icahn wants ILMN to name Jay Flatley at CEO, according to the Wall Street Journal
Innovative Industrial Properties (IIPR) announces senior leadership appointment and promotions; David Smith joins as CFO, Catherine Hastings promoted to COO and Ben Regin promoted to CIO
Loop Industries (LOOP) and SK Geo Centric confirmed last night the successful completion of a technical due diligence of Loop's technology at its production facility in Quebec, Canada
Lucid Group (LCID) confirms restructuring plan to reduce OpEx; cutting workforce by approximately 18%; expects to complete the plan by the end of 2Q23
Macy's (M) announces CEO Jeff Gennette plans to retire in Feb. 2024; current Bloomingdale' chairman Tony Spring named president and CEO-elect
Neurocrine Biosciences (NBIX) entered into an agreement with Teva (TEVA) resolving patent litigation related to INGREZZA
Oportun Financial (OPRT): Consumer Financial Protection Bureau competes its investigation of OPRT, concluded it would not recommend pursuing enforcement action
Regeneron Pharma (REGN): Libtayo in combination with chemotherapy approved by European Commission for the first-line treatment of advanced PD-L1 positive non-small cell lung cancer
Roche Hldg (RHHBY) and Astellas (ALPMY) sign partnership agreement to develop and commercialize integrated diabetes self-management solution with BlueStar
ServisFirst Bancshares (SFBS) subsidiary ServisFirst Bank expands into Texas
Signature Bank (SBNY): FDIC wants cryptocurrency clients at Signature Bank to close accounts by April 5, according to Bloomberg
Transocean (RIG) announces contract awards for two of its harsh environment semisubmersibles totaling ~$382 mln
Transocean (RIG) announced contract fixtures for two of its harsh environment semisubmersibles
Turtle Beach (HEAR) approves the adoption of a limited duration stockholder rights plan
UBS AG (UBS) names Sergio P. Ermotti as CEO, effective April 5
Winnebago (WGO) subsidiary Chris-Craft increases production capacity by 50% with new facility in FL
M&A:
American Water Works (AWK) acquires Claypool Water System in Northern Indiana
BRF SA (BRFS): Nestle (NSRGY) in discussions to purchase BRFS pet food unit for approximately 1.7 bln reais, according to Bloomberg
Cardinal Health (CAH) exploring a potential sale of its nuclear medicine business, according to Bloomberg
Elevance Health (ELV): StanCorp Financial to acquire ELV's Life & Disability business and enter into a product distribution partnership
Stratasys (SSYS): Nano Dimension (NNDM) increases offer to acquire Stratasys to $19.55 per share in cash
Syndicate:
Biomea Fusion (BMEA) commenced an underwritten public offering of $125.0 million of shares of its common stock
Gladstone Land (LAND) files $1.5 bln mixed shelf securities offering
IPOs:
Expected to Price:
No IPOs expected.
Gapping Up/Down
Gapping up:
ARCT +27.5%, LULU +14.9%, NABL +14.2%, CLPT+8.6%, LAND +6.7%, CALM +3.6%, NCNO +2.9%, LCID +2.6%, UBS +2.1%, MU +2.1%, BKSY +1.5%, ERO +1.4%, HEAR +1.2%, VALE +1.2%, RIG +1%, BPMC +1%, JEF +1%
Gapping down:
SLGC -14.1%, SWX -3%, PRGS -1.7%, PLAY -1.4%, WGO -0.7%
Analyst Research (see Upgrades/Downgradescalendarfor full list:
Upgrades
Carnival (CCL) upgraded to Positive from Neutral at Susquehanna; tgt $11
Invesco (IVZ) upgraded to Neutral from Underperform at Credit Suisse; tgt raised to $15
Downgrades:
Bath & Body Works (BBWI) downgraded to Neutral from Buy at UBS
Burlington Stores (BURL) downgraded to Sell from Neutral at UBS
Foot Locker (FL) downgraded to Sell from Neutral at UBS
Medtronic (MDT) downgraded to Sell from Buy at UBS; tgt lowered to $79
Penumbra (PEN) downgraded to Hold from Buy at Needham
Ross Stores (ROST) downgraded to Sell from Neutral at UBS
Urban Outfitters (URBN) downgraded to Sell from Neutral at UBS
Others:
Abbott Labs (ABT) initiated with a Buy at UBS; tgt $117
Baxter (BAX) initiated with a Neutral at UBS; tgt $43
Boston Scientific (BSX) initiated with a Buy at UBS; tgt $57
Butterfly Network (BFLY) initiated with a Neutral at UBS; tgt $2.25
Confluent (CFLT) initiated with a Buy at Mizuho; tgt $28
Dexcom (DXCM) initiated with a Buy at UBS; tgt $142
Edwards Lifesciences (EW) initiated with a Neutral at UBS; tgt $84
Enliven Therapeutics (ELVN) initiated with a Buy at Jefferies; tgt $27
GitLab (GTLB) initiated with a Neutral at Mizuho; tgt $38
InMode (INMD) initiated with a Buy at UBS; tgt $40
Inspire Medical Systems (INSP) initiated with a Buy at UBS; tgt $300
Intuitive Surgical (ISRG) initiated with a Neutral at UBS; tgt $278
Johnson & Johnson (JNJ) initiated with a Neutral at UBS; tgt $164
Stryker (SYK) initiated with a Neutral at UBS; tgt $287
Tandem Diabetes Care (TNDM) initiated with a Neutral at UBS; tgt $45
Zimmer Biomet (ZBH) initiated with a Sell at UBS; tgt $112
Econ Data:
07:00 ET: MBA Mortgage Applications Index for Mar 25 (Briefing.comConsensus NA; Prior 3.0%)
10:00 ET: Pending Home Sales for Feb (Briefing.comConsensus -2.3%; Prior 8.1%)
10;30 ET: EAI Crude Oil Inventories for Mar 25 (Briefing.comConsensus NA; Prio +1.12M)
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 +1.3%, Hang Seng +2.1%, Shanghai Composite -0.2%
Equity indices in the Asia-Pacific region ended Wednesday on a mostly higher note. Japan's parliament passed a record JPY114 trln budget for FY23. South Korea's government will look to boost domestic consumption, according to the country's finance minister. China will reportedly try to attract more foreign investment. Alibaba (BABA) confirmed that it will split into six units. There is a growing sense that the Reserve Bank of Australia will not raise its cash rate next week.
In economic data:
South Korea's March Consumer Confidence 92.0 (last 90.2)
Australia's February CPI 6.8% yr/yr (expected 7.1%; last 7.4%)
---Equity Markets---
Japan's Nikkei: +1.3%
Hong Kong's Hang Seng: +2.1%
China's Shanghai Composite: -0.2%
India's Sensex: +0.6%
South Korea's Kospi: +0.4%
Australia's ASX All Ordinaries: +0.2%
---FX---
USD/JPY: +0.7% to 131.79
USD/CNH: +0.1% to 6.8873
USD/INR: +0.2% to 82.34
Europe: DAX +0.9%, FTSE +0.8%, CAC +1.2%
Major European indices trade on a firmly higher note. UBS will rehire its former CEO Sergio Ermotti after Ralph Hamers stepped down. Chipmaker Infineon raised its guidance for Q2 and FY23. EU energy ministers have agreed to hold gas demand at a reduced level until March 2024 to secure a sufficient supply for next winter. European Central Bank Chief Economist Lane said that he expects inflation to decelerate rapidly.
In economic data:
Germany's April GfK Consumer Climate -29.5 (expected -29.2; last -30.6)
U.K.'s February BoE Consumer Credit GBP1.413 bln (expected GBP1.300 bln; last GBP1.686 bln), February Mortgage Lending GBP740 mln (expected GBP2.40 bln; last GBP2.00 bln), and February Net Lending to Individuals GBP2.20 bln (expected GBP3.70 bln; last GBP3.70 bln) o France's March Consumer Confidence 81, as expected (last 82)
Italy's February non-EU trade surplus EUR4.02 bln (last deficit of EUR1.36 bln)
Swiss March ZEW Expectations -41.3 (last -12.3)
---Equity Markets---
STOXX Europe 600: +0.9%
Germany's DAX: +0.9%
U.K.'s FTSE 100: +0.8%
France's CAC 40: +1.2%
Italy's FTSE MIB: +1.2%
Spain's IBEX 35: +1.0%
---FX---
EUR/USD: +0.2% to 1.0857
GBP/USD: +0.1% to 1.2348
USD/CHF: -0.1% to 0.9181
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