After Hours Report

Today's price action occurred in a relatively tight trading range on below average volume. The main indices closed with modest declines after climbing off their worst levels in the afternoon trade. The Nasdaq trailed its peers again today, weighed down by lagging mega cap stocks.

In the early going, money flows looked somewhat similar to yesterday's trade with bank stocks leading the market higher. Sentiment seemed to shift, though, around the time that FDIC Chairman Michael Barr told the Senate Banking Committee that he anticipates having to increase capital and liquidity standards for firms over $100 billion, adding that more regulation is needed.

Still, there was some underlying strength in the market as evidenced by the 0.2% gain in the Invesco S&P 500 Equal Weight ETF (RSP) versus the 0.2% decline in the market-cap weighted S&P 500. 

Roughly half of the 11 S&P 500 sectors closed in the green, but energy (+1.5%) was the only sector to gain more than 1.0%. On the flip side, the communication services sector (-1.0%) was the worst performer by a decent margin, feeling the weight of its mega cap components. The health care (-0.6%) and information technology (-0.5%) sectors were also notable laggards today. 

Market breadth also reflected mixed action and a lack of conviction from both sellers and buyers. Advancers led decliners by a roughly 4-to-3 margin at the NYSE while decliners led advancers by the same margin at the Nasdaq. 

Treasuries settled the session with losses. The 2-yr note yield rose six basis points to 4.06% and the 10-yr note yield rose four basis points to 3.56%.

• Nasdaq Composite: +11.9% YTD
• S&P 500: +3.4% YTD
• S&P Midcap 400: +0.1% YTD
• Russell 2000: -0.5% YTD
• Dow Jones Industrial Average: -2.3% YTD

Looking ahead to Wednesday, market participants will receive the following economic data:

• 7:00 ET: Weekly MBA Mortgage Index (prior 3.0%)
• 10:00 ET: February Pending Home Sales (Briefing.com consensus -2.3%; prior 8.1%)
• 10:30 ET: Weekly crude oil inventories (prior +1.12 mln)

Reviewing today's economic data:

• The advanced report for international trade in goods showed a $91.6 billion deficit in February versus the prior revised $91.1 billion deficit in January (-$91.5billion). The advanced report for retail inventories reflected a 0.8% build in February following a 0.1% increase in January. The advanced report for wholesale inventories showed a 0.2% build in February after a revised 0.5% decline in January (from -0.4%).
• The FHFA Housing Price Index rose 0.2% in January following a 0.1% decline in December. The S&P Case-Shiller Home Price Index rose 2.5% in January (Briefing.com consensus 2.5%) following a 4.6% increase in December.
• The Conference Board's Consumer Confidence Index for March hit 104.2 (Briefing.com consensus 101.5) versus an upwardly revised 103.4 (from 102.9) for February. In the same period a year ago, the index stood at 107.6.
  • The key takeaway from the report is that consumer confidence held up well even though the survey period covered the week after Silicon Valley Bank collapsed. That said, the Expectations Index remained below 80.0 for the 12th month out of the last 13, which serves as a concerning signal about future growth.

• Europe: DAX +0.1%, FTSE +0.2%, CAC +0.1%
• Asia: Nikkei +0.2%, Hang Seng +1.1%, Shanghai -0.2%

Commodities: 

• Crude Oil +0.04 @ 73.09
• Nat Gas -0.08 @ 2.15
• Gold +20.30 @ 1973.30
• Silver +0.30 @ 23.41
• Copper flat @ 4.08

After-Hours Spotlight:

• Cal-Maine Foods (CALM) beats by $0.92, beats on revs; declares quarterly dividend of $2.20/share... CALM up 3.7%
• Dave & Buster's (PLAY) beats by $0.10, beats on revs, pro forma comps of +19%; authorizes up to $100 mln in share repurchases... PLAY up 2.8%
• 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... LULU up 11.7%
• 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... MU up 1.6%
• 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... NCNO up 3.1%
• 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... PRGS down 4.7%

Fair Value for Wednesday, March 29:

• S&P 500: 4,001
• Nasdaq 100: 12,726
• DJIA: 32,588

For a full rundown of today's market and after hours developments, see Live In Play

• Earnings/Guidance (Full Earnings Calendar):
  • Core & Main (CNM) misses by $0.02, reports revs in-line; guides FY23 revs in-line
  • Excelerate Energy (EE) beats on top and bottom lines
  • IHS Holding Limited (IHS) reports Q4 (Dec) results, beats on revs; guides FY23 revs above consensus
  • Lovesac (LOVE) misses by $0.22, beats on revs; guides Q1 revs in-line; guides FY24 EPS in-line, revs in-line
  • McCormick (MKC) beats by $0.09, beats on revs; reaffirms FY23 EPS guidance, revs guidance
  • Oscar Health (OSCR) reaffirms FY23 direct and Assumed Policy Premiums of $6.4-6.6 mln; reaffirms FY23 adjusted EBITDA loss of $75-175K
  • PVH (PVH) beats by $0.71, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY24 EPS above consensus, revs above consensus
  • TD Synnex (SNX) beats by $0.08, misses on revs; guides Q2 EPS below consensus, revs below consensus
  • Walgreens Boots Alliance (WBA) beats by $0.05, beats on revs; reaffirms FY23 EPS guidance
• General News
  • 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
  • House Speaker Kevin Mccarthy says there has no progress on debt ceiling negotiations - CNBC interview
  • Nevada Gaming Board reports February gaming win +11.5% yr/yr to $1.237 bln; +18.9% yr/yr to $712.5 mln on the Las Vegas Strip
  • At Senate hearing: FDIC Chairman Michael Barr says that he anticipates having to increase capital and liquidity standards for firms over $100 bln; says more regulation is needed
  • House Republican leaders may not pass a budget before the debt limit deadline --- Jake Sherman from Punchbowl News
  • Senate hearing follow up: Fed officials signal the need to strengthen capital and liquidity standards, but congressional legislation will be met by Republican opposition, according to Bloomberg
  • AAR Corp (AIR) signs distribution agreement with Cloud Cap Technology, expanding its presence in the Unmanned Aerial System (UAS) market
  • Abbott Labs (ABT): FDA outlines immediate national strategy to further increase the resiliency of the U.S. infant formula market
  • Albemarle (ALB): Liontown Resources rejects Indicative proposal from Albemarle
  • Alibaba (BABA) aiming to split into six additional units, according to Bloomberg
  • Alibaba (BABA) confirms new organizational and governance structure; co will have six major business groups and other investments, each to be independently managed by its own CEO
  • Alphabet (GOOG): EU Commission clears acquisition of Photomath by Google
  • AnaptysBio (ANAB) 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
  • AMMO (POWW) announces that its Board of Directors approved an extension of the Company’s share repurchase program for up to $30 mln of its outstanding common stock until February 2024
  • Apple (AAPL) introduces Apple Pay Later to allow consumers to pay for purchases over time
  • Ares Management (ARES) wants to raise $400 mln for new SPAC, according to Bloomberg
  • ARS Pharmaceuticals (SPRY) announces FDA Advisory committee for neffy® for the treatment of allergic reactions (type 1), including Anaphylaxis
  • Athira Pharma (ATHA) presents preclinical data supporting therapeutic potential of Fosgonimeton for Alzheimer’s and Parkinson’s Diseases at AD/PD 2023 International Conference
  • Bicycle Therapeutics (BCYC) has entered into a strategic collaboration agreement with Novartis (NVS) to develop, manufacture and commercialize Bicycle radio-conjugates for multiple agreed upon oncology targets
  • Biomea Fusion (BMEA) announces initial "positive" topline data for the first two cohorts of patients with type 2 diabetes mellitus enrolled in the Phase II portion of its ongoing Phase I/II clinical study of BMF-219
  • BioNTech (BNTX) announces new ADS repurchase program
  • Blackrock (BLK) believes markets are wrong to bet on Fed rate cuts, according to Bloomberg
  • Blackrock (BLK) lost out on China pension market, according to Bloomberg
  • Boeing (BA): Canada requests Boeing P-8 surveillance aircraft the the U.S., according to Pembroke Observer
  • Boeing (BA) issues statement on Canada’s Multi Mission Aircraft Project
  • Boeing (BA): China Southern Airlines expected to purchase 200 more BA and Airbus (EADSY) jets, according to Bloomberg
  • Bristol-Myers (BMY) receives european commission approval of Sotyktu, a once-daily oral treatment for adults with moderate-to-severe plaque psoriasis
  • Cryoport (CYRX) inks multi-year agreement with Inception Fertility
  • Disney (DIS) eliminated its Metaverse division, according to the Wall Street Journal
  • Enviva (EVA) 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
  • EverCommerce (EVCM) has appointed Evan Berlin Executive Vice President and Chief Operating Officer
  • Evotec SE (EVO) and Bristol-Myers (BMY) announce expanded strategic neurodegeneration partnership
  • FREYR Battery (FREY) targets strategic coalition with four major global partners
  • Forum Energy Tech. (FET) awarded a contract worth approximately $25 mln for an onshore project at the Safaniyah oil field, Kingdom of Saudi Arabia
  • GlaxoSmithKline (GSK) 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) asks judge to dismiss antitrust suit, according to Bloomberg
  • Hess Midstream Partners (HESM) 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) 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) cuts its quarterly dividend by 38% to $0.40/share; provides financial update
  • Kernel Group Holdings (KRNL): Fly Blade Private Limited and Jaunt Air Mobility have signed a memorandum of understanding aimed at launching electric vertical take-off and landing aircraft operations in India and the subcontinent region by 2027
  • Lucid Group (LCID) aiming to eliminate hundreds of jobs, according to Business Insider
  • Lyft (LYFT) 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) announces that Lauren Sabella has joined as COO, effective today
  • MaxCyte (MXCT) names Douglas Swirsky as CFO
  • Merck's (MRK) 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
  • Microsoft (MSFT) and others preparing to settle EU complaints, according to Bloomberg
  • Nestle (NSRGY) aiming to examine banking relationships, according to Reuters
  • Nikola Corporation (NKLA) CFO Kim J. Brady to retire, effective April 7; to be succeeded by Corporate Controller Anastasiya Pasterick
  • Nova Vision Acquisition Corporation (NOVV): REAL Messenger Holdings Limited and NOVV announce combination agreement; deal expected to close in 3Q23, to trade under ticker "RMSG"
  • Oscar Health (OSCR) announces the appointment of Mark Bertolini to the role of Chief Executive Officer, effective April 3, 2023
  • Perrigo (PRGO) announces that the FDA has rescheduled a joint meeting of the of the Nonprescription Drugs Advisory Committee and the Obstetrics, Reproductive, and Urologic Drugs Advisory Committee for May 9 & 10, 2023
  • Pinterest (PINS) approves restructuring plan; to sublease certain office space and abandon other leased office spaces
  • Regeneron Pharma (REGN) 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) files amended 10-Qs for three quarters in 2022
  • Rivian Automotive (RIVN) is moving staff to factory in Illinois in order to increase production, according to Inside EV
  • Rush Street Interactive (RSI) and Connecticut Lottery Corporation announce joint plan to wind down online and in-person sports betting partnership in Connecticut
  • SOPHiA GENETICS SA (SOPH) announced that Acutis Diagnostics, a specialized medical laboratory, will use SOPHiA DDM to develop a new genomic assay
  • Spirit Aerosystems (SPR) 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) Announces Positive Exploration Results at Puna
  • Surmodics (SRDX) has received formal feedback from the Food and Drug Administration related to its proposed approach to submit an amended premarket approval application for the SurVeil drug-coated balloon
  • Sysco (SYY) appoints Kenny Cheung as CFO
  • Tejon Ranch Co. (TRC) to Evaluate All Options to Proceed With the Eventual Development of Centennial at Tejon Ranch Following Court Ruling
  • TransAlta (TAC) enters into automatic share purchase plan
  • Upwork (UPWK) announces that Erica Gessert will join the company as chief financial officer, effective April 25, 2023
  • Vanda Pharma (VNDA) announces a win in its jet lag FOIA litigation against the FDA
  • Viking Therapeutics (VKTX) announces results from phase 1 clinical trial of dual GLP-1/GIP receptor agonist VK2735
  • Voyager Therapeutics (VYGR) 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
  • Walmart (WMT): EEOC sues Walmart for disability discrimination
  • Weave Communications (WEAV) announces a multi-year agreement to process payments on Stripe Connect for Weave’s 27,000+ specialty healthcare customers across the U.S.
  • World Wrestling (WWE): Multiple parities are interested in WWE; Comcast (CMCSA) is not part of the discussion -- CNBC's David Faber

(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 (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 3.0%)
  • 10:00 ET: February Pending Home Sales (Briefing.com consensus -2.3%; prior 8.1%)
  • 10:30 ET: Weekly crude oil inventories (prior +1.12 mln)
• Earnings:
  • Monday (Mar. 27)
    • Pre-Market:  BNTX CCL
    • After-Hours: PVH
  • Tuesday (Mar. 28)
    • Pre-Market:  CNM IHS LOVE MKC SNX WBA
    • After-Hours: CALM PLAY JEF LULU MU NCNO PRGS
  • Wednesday (Mar. 29)
    • Pre-Market: BLUE CTAS CONN KC PAYX SHCR UNF
    • After-Hours: CNXC FUL RH SMTC CXM VRNT
  • Thursday (Mar. 30)
    • Pre-Market: ANGO EVGO NEOG
    • After-Hours:  BB BRZE YMAB
  • Friday (Mar. 31)
    • Pre-Market: None
    • After-Hours: None