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Thursday, April 14, 2022

Futures contracts Up down % Last
Dow 54.00 0.16% 34,536
S&P500 -1.25 0.04% 4,440
Nasdaq -1.50 0.01% 14,219

US futures look mixed with little change ahead of a slew of banking sector results (C, WFC, MS, GS, USB), the European Central Bank (ECB) policy meeting and a glut of economic data ahead of the 3 day long weekend. In corporate news, Tesla (TSLA) CEO Elon Musk has offered to buy 100% of Twitter (TWTR) for $54.20 per share in cash in what he calls his “best and final offer” as the drama of the past week continues this weekend. In Asian markets, the Nikkei index jumped 328 points or 1.22% to 27,172, the Shanghai index rose 1.22% to 3,225 and the Hang Seng index climbed 143 points to 21,518. In Europe, the German DAX is up +0.15% to 14,100, while the FTSE 100 gains a few points to 6,580. Also in Europe, Russia threatens new nuclear deployments if Sweden and the Finland join NATO. Treasury yields fell slightly with 10-year bonds around 2.7% and oil slipping after a massive 2-day gain.

Market closing price yesterday

  • The S&P 500 Index jumped 49.14 points, or 1.12%, to 4,446.59
  • The Dow Jones Industrial Average rose 344.23 points, or 1.01%, to 34,564.59
  • The Nasdaq Composite jumped 272.01 points, or 2.03%, to 13,643.59
  • The Russell 2000 Index advanced 38.17 points, or 1.92% to 2,025.10

Economic calendar for today

  • 8:30 a.m. ET Weekly unemployment claims…est. 171K
  • 8:30 a.m. EST Continuing claims…est. 1.5M
  • 8:30 a.m. ET Advance retail sales m/m for March…est. +0.6%
  • 8:30 am ET Retail Sales – Fewer autos m/m for March…est. +1.0%
  • 8:30 am ET Import prices m/m for March…est. +2.3%
  • 8:30 am ET Export prices m/m for March… est. +2.2%
  • 10:00 a.m. ET University of Michigan Confidence, Apr-P…est. 59.0
  • 10:00 a.m. ET Business inventories m/m for Feb…est. +1.3%
  • 10:30 a.m. ET Weekly EIA Natural Gas Inventory Data

Earnings schedule:

  • Earnings before the Open: ALLY, C, GS, MS, PGR, PNC, RAD, STT, UNH, USB, WFC
Macro Up down Last
Nymex -1.22 103.03
Brent -1.60 107.18
Gold -11.10 1,973.60
EUR/USD 0.002 1.0905
JPY/USD -0.32 125.34
10 year ticket +0.003 2.692%

world news

  • Russia threatens new nuclear deployments if Sweden and Finland join NATO https://cnb.cx/3jFXM8a
  • The bull-bear spread in the American Association of Individual Investors (AAII) weekly survey was -32.6 from -16.7 last week as the Bulls fell to 15.8% from 24.7%, the Neutrals rose to 35.7% vs. 33.9% and the Bears rose to 48.4% vs. 41.4%

Industry News Breakdown

Consumer

  • Costco (COST) increases quarterly dividend from $0.79 to $0.90
  • Copa Holdings (CPA) recorded an 8.4% decline in consolidated capacity (available seat miles) to 1.95 billion for March 2022 compared to March 2019 figures; Passenger traffic (revenue passenger miles) decreased by 6.8% compared to March 2019 to reach 1.65 billion in March 2022.
  • Rent the track (RENT) Q4 EPS loss (-$0.62) vs estimated loss (-$0.70); The fourth quarter turns out at $64.1 M against an estimated $63.22 M; expects FY22 revenue of $295 million to $305 million from $305.02 million and FY22 Adjusted EBITDA margin of (6%) to (5%)
  • Simply Good Food (SMPL) announces $50 million addition to share buyback program

Energy, industries and materials

  • Grainger (GWW) downgraded to underweight relative to equal weight at Morgan Stanley as pace of price increase slows, PMI data indicates slowing volumes and smaller competitors enter market
  • The Libyan government of national unity said in a statement that it had adopted a plan for the development of the country’s oil sector with the aim of increasing its production to 1.4 million barrels per day.
  • Kazakhstan said it expects its main oil export route through Russia to restore full operations by the end of April.
  • Air Gain (AIRG) said a major US water utility company chose AirgainConnect AC-HPUE to improve their fleet connectivity

finance

  • Great morning for income to come with Goldman Sachs (GS), Morgan Stanley (MS), Citigroup (C), US Bank (USB), PNC Bank (PNC) and Wells Fargo (WFC) everything planned
  • American Bank (USB) Q1 EPS at $0.99 vs. $0.94 estimated; The first quarter is running at 5.6 billion dollars against an estimated 5.55 billion dollars; Q1 net interest margin of 2.44% vs. 2.50% a year ago; Return on average assets of 1.09% and return on average equity of 12.7%
  • Wells Fargo (WFC) First quarter revenue of $17.59 billion vs. estimated $17.77 billion; Avg. deposits $1.46 trillion; common equity Tier 1 ratio 10.5% vs. estimate 11.1%; non-interest expense $13.87 billion and recovery of credit losses $787 million, estimated provision $149.6 million; net interest income of $9.22 billion versus $9.29 billion estimated; total loans of $898 billion versus $891 billion estimated; Provision 1q includes a $1.1 billion decrease in allowance for credit losses primarily due to reduced pandemic-related uncertainty on loan portfolios

Health care

  • United Health Care (UNH) Q1 Adjusted EPS $5.49 vs. $5.38 estimated; The first quarter runs at 80.15 billion dollars against an estimated 78.79 billion dollars; Optum’s first-quarter revenue increased 18.9% to $43.3 billion and operating profit increased 19.8% to $3.2 billion; The medical care ratio in the first quarter was 82% compared to 80.9% last year; First quarter operating cash flow of $5.3 billion; increases FY22 Adjusted EPS view to $21.20-$21.70 from $21.10 to $21.60
  • OncoCyte (OCX)27 million Secondary Spot shares priced at $1.33
  • Sanofi (SNY) said data from a phase 1/2 of rilzabrutinib to treat adults with heavily pretreated immune thrombocytopenia (ITP) were published in the New England Journal of Medicine.
  • Protagonist Therapeutics (PTGX) shares fell more than -30% after the announcement of the FDA’s intention to rescind the breakthrough designation, or BTD, for Rusfertide
  • Pfizer (PFE) and BioNTech (BNTX) announce data showing a high immune response after a booster dose of the COVID-19 vaccine in children 5 to 11 years old; booster dose of vaccine increased neutralizing antibodies against wild-type strain of SARS-CoV-2 6-fold in 140 participants
  • Supernus (SUPN) reiterates the financial forecasts for the full year 2022 provided on February 28, 2022 and reiterated on April 4, 2022; still sees FY total rev. $640m to $680m (estimated at $685.5m) and still sees operating profit of $130m to $165m for the year

Technology, Media & Telecom

  • Twitter (TWTR) shares rise 11%; Elon Musk said that on April 13, 2022, he delivered a letter to Twitter containing a non-binding proposal to acquire 100% of Twitter shares not held by the reporting person for cash consideration valuing the shares at $54.20 per share. Msck states in the file “my offer is my best and last offer”; says if the offer is not accepted, “I should reconsider my position as a shareholder”
  • Taiwan Semi (TSM) said 2022 sales could exceed the upper limit of previous guidance by 20% in USD and does not expect a change in CAPEX for 2022; expects no impact from Materials Supply Co. has multiple gas suppliers; plans production of 2nm chips in 2025
  • IBM (IBM) upgraded to Overweight from Equal Weight at Morgan Stanley with $150 tgt
  • Alibaba (BABA) shares tumble -2% after the Chinese Communist Party’s anti-corruption watchdog was among the agencies implicated in a recent probe into ties between billionaire Jack Ma’s Ant Group and Chinese state-owned companies, Bloomberg reported
  • Ericsson (ERIC) net profit attributable to shareholders of SEK 2.94 billion ($310.2 million) from SEK 3.17 billion a year earlier, missing the expected SEK 4.07 billion; First quarter towers increased by 11% to SEK 55.06 billion, vs. SEK 54.14 billion expected
  • Cambium Networks (CMBM) announced the departure of Stephen Cumming as Chief Financial Officer, effective immediately. The Board of Directors has appointed Andrew Bronstein as Chief Financial Officer. Andrew previously served as CFO for Cheetah Digital; Q1 guides revs $61M-$63M, down from the previous view of $77.5M-$81.5M and below the $79.5M estimate; shares fell -12% on forecast
  • Person Live (LPSN): Starboard Value – intends to file a proxy statement, a white proxy card with the SEC to solicit votes for its 4 nominees at LivePerson Inc’s 2022 annual meeting – Reuters
  • Western Digital (WDC) and Seagate (STX) both downgraded to Neutral from Positive to Susquehanna

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