After Hours Report

Today's trade had a decidedly positive tone following the two-day Congressional hearing on the SIVB bank failure. For most of the session, the main indices chopped around a fairly narrow range, albeit sporting nice gains. Ultimately, though, a late afternoon push higher had the main indices close near their highs of the day, leaving the S&P 500 above its 50-day moving average (4,014).

The tech-heavy Nasdaq paced its peers thanks to strong leadership from mega caps and chipmakers. Investors reacted favorably to Micron's (MU 63.54, +4.26, +7.2%) quarterly results and many semiconductor stocks traded up in sympathy. The PHLX Semiconductor Index rose 3.3% today. 

Strength from semiconductor components helped drive a 2.1% gain in the S&P 500 information technology sector, which closed near the top of the leaderboard along with real estate (+2.3%) and consumer discretionary (+1.9%). 

All 11 sectors closed with gains, but the defensive-oriented consumer staples (+0.5%) and health care (+0.2%) sectors lagged the broader market with the slimmest gains of the day. 

Market breadth reflected a strong positive bias behind today's gains. Advancers led decliners by a nearly 4-to-1 margin at the NYSE and a 2-to-1 margin at the Nasdaq.

Notably, the positive price action today followed relatively strong gains in many overseas indices. Germany's DAX rose 1.2%, the U.K.'s FTSE rose 1.1%, and France's CAC 40 rose 1.4%. Market participants were reacting to the news that UBS AG (UBS 20.10, +0.83, +4.3%) named Sergio P. Ermotti as CEO, effective April 5.

Treasuries settled little changed from yesterday's closing levels. The 2-yr note yield rose one basis point to 4.07% and the 10-yr note yield was unchanged at 3.57%.

• Nasdaq Composite: +14.0% YTD
• S&P 500: +4.9% YTD
• S&P Midcap 400: +1.3% YTD
• Russell 2000: +0.6% YTD
• Dow Jones Industrial Average: -1.3% YTD

Reviewing today's economic data:

• The weekly MBA Mortgage Applications Index rose 2.9% with purchase application jumping 2.0% (-35% yr/yr) while refinancing applications rose 5.0% (-61% yr/yr).
• Pending home sales rose 0.8% in February (Briefing.com consensus -2.3%) following a 8.1% increase in January.
• The weekly EIA Crude Oil Inventories showed a draw of 7.49 million barrels following last week's draw of 1.06 million barrels.

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

• 8:30 ET: Weekly Initial Claims (Briefing.com consensus 196,000; prior 191,000), Continuing Claims (prior 1.694 mln), Q4 GDP -- third estimate (Briefing.com consensus 2.7%; prior 2.7%), and GDP Deflator -- third estimate (Briefing.com consensus 3.9%; prior 3.9%)
• 10:30 ET: Weekly natural gas inventories (prior -72 bcf)

• Europe: DAX +1.2%, FTSE +1.1%, CAC +1.4%
• Asia: Nikkei +1.3%, Hang Seng +2.1%, Shanghai -0.2%

Commodities: 

• Crude Oil -0.12 @ 72.97
• Nat Gas +0.02 @ 2.17
• Gold -5.50 @ 1967.80
• Silver +0.11 @ 23.52
• Copper flat @ 4.08

After-Hours Spotlight:

• Concentrix (CNXC) misses by $0.04, reports revs in-line; guides MayQ revs above two analyst estimate; guides FY23 revs in-line; combining Webhelp in a transaction valued at $4.8 bln, including debt... CNXC down 5.6%
• Crane (CR) will be added to the S&P MidCap 400 effective prior to the open of trading on Tuesday, April 4... CR up 2.3%
• PacWest Bancorp (PACW) will replace Nektar Therapeutics (NKTR) in the S&P SmallCap 600... PACW up 3.0%
• Peabody Energy (BTU) confirms that a fire began earlier today at its Shoal Creek Mine; not able to provide any estimates as to impact of fire at this time... BTU down 3.2%
• RH (RH) misses by $0.48, reports revs in-line; guides Q1 revs below consensus; guides FY24 revs below consensus; expects business conditions to remain challenging for next several quarters and possibly longer... RH down 4.9%
• Semantix (STIX) authorizes $5 mln increase in existing share repurchase plan, bringing the total to $10 mln... STIX up 12.0%
• Semtech (SMTC) reports EPS in-line, beats on revs; guides AprQ EPS below consensus, revs above consensus... SMTC down 8.8%
• Sprinklr (CXM) beats by $0.04, beats on revs; guides AprQ EPS below consensus, revs below consensus; guides FY24 EPS above consensus, revs mostly above consensus... CXM up 7.5%
• Verint Systems (VRNT) beats by $0.03, beats on revs; guides FY24 EPS below consensus, revs in-line... VRNT down 3.1%

Fair Value for Thursday, March 30:

•  S&P 500: 4,057
• Nasdaq 100: 12,959
• DJIA: 32,907

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

• Earnings/Guidance (Full Earnings Calendar):
  • 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
  • Cintas (CTAS) beats by $0.11, beats on revs; raises FY23 guidance
  • 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
  • Paychex (PAYX) beats by $0.05, beats on revs; raises FY23 guidance
  • Paychex (PAYX) on conference call says it expects FY24 revenue growth of approximately 6-7% yr/yr (no comparable consensus because FY23 is not complete yet)
  • 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
  • UniFirst (UNF)  reports Q2 (Feb) results, beats on revs; guides FY23 revs above consensus
• General 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
  • Elon Musk and other executives call for pause in AI development, according to WSJ
  • Treasury releases testimony of Secretary of the Treasury Janet Yellen ahead of House budget hearing
  • Senator Rand Paul (R-KY) becomes the first Republican to come out against a ban of TikTok; says he will defend the app
  • NRF forecasts 2023 retail sales to grow between 4% and 6%
  • The Biden administration begins auctioning off oil drilling rights in Gulf of Mexico despite concerns from climate activists, according to Bloomberg
  • White House continues to advance American offshore wind opportunities
  • FDIC mulls squeezing biggest banks as it plugs $23 billion hole - BloombergTV
  • AAR Corp (AIR) announces its subsidiary AAR Supply Chain will acquire nine Boeing 757-200 passenger aircraft equipped with 18 Rolls-Royce RB211 engines from American Airlines (AAL)
  • Achieve Life Sciences (ACHV) announced that the last study follow-up visit for the last subject enrolled in the Phase 3 ORCA-3 trial has occurred
  • Airbus (EADSY) no longer in discussions to acquire minority stake in Atos SE’s (AEXAY) cyber unit Evidian, according to WSJ
  • Airbus (EADSY) confirmed it will no longer pursue discussions with respect to the potential acquisition of a minority stake of 29.9% in Evidian
  • American Vanguard (AVD) has entered into a supply agreement with NewLeaf Symbiotics to bring biological solutions to major North American specialty markets
  • ARKO Corp. (ARKO) details significant updates provided to Travel Center of America’s Board on superior acquisition proposal
  • Biogen (BIIB) reports new Phase 1b clinical data showing that the investigational antisense oligonucleotide therapy, BIIB080, reduced soluble tau protein in cerebrospinal fluid in a dose-dependent and sustained manner in patients with early-stage Alzheimer’s disease
  • Blackbaud (BLKB): Clearlake Capital Group says it's disappointed in BLKB's decision to reject "highly attractive" proposal; reiterates all-cash offer at $71/share
  • 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
  • Boston Scientific (BSX) and Scivita Medical Technology have officially signed a strategic agreement for Scivita's Single-Use Percutaneous Choledochoscope
  • Caribou Biosciences (CRBU) announces initiation of the dose expansion portion of the CB-010 ANTLER Phase 1 trial in second-line patients with large B cell lymphoma following the recent completion of dose escalation
  • Canopy Growth (CGC) announces the introduction of Canada's first-to-market cannabis infused beverage with naturally occurring caffeine under the Deep Space brand
  • Clean Harbors (CLH) introduces 5-year growth targets at 2023 Investor Day in Chicago
  • 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
  • Commscope (COMM) announces that it is expanding fiber-optic cable production to accelerate the rollout of broadband across the U.S., connecting more communities and underserved areas
  • 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
  • Credit Suisse (CS): Board of Directors announces the withdrawal of proposals for the 2023 Annual General Meeting of Shareholders of Credit Suisse Group AG
  • 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
  • El Pollo Loco (LOCO) disclosed last night that it has been informed that Trimaran Group is distributing substantially all of the shares of the company's common stock held by the Trimaran Group (LOCO shares down 15%)
  • Emergent BioSolutions (EBS): FDA approves first over-the-counter Naloxone nasal spray
  • Enovix (ENVX) announces manufacturing partner and location for Fab-2 in Malaysia
  • Ericsson (ERIC) provides several updates from its Annual General Meeting; Jan Carlson was elected as new Chair
  • 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
  • Harmony Biosciences (HRMY) announces accelerated timeline for phase 3 intune study in idiopathic hypersomnia
  • Honeywell (HON) announced a strategic investment in Redaptive; Terms of the investment were not disclosed
  • ICU Medical (ICUII) to challenge GE Healthcare's (GEHC) pursuit of Medtronic (MDT) units, according to Reuters
  • 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
  • Intel (INTC) says 4th generation Intel Xeon arrives with strong customer adoption; says meeting customer demand today and healthy throughout 2023; on schedule to deliver 5th gen chip in Q4 of 2023; another new Xeon chip in 2024
  • JetBlue Airways (JBLU) may cut some weekly flights in the NYC area due to staff shortages in FAA staffing, according to CNBC
  • Johnson & Johnson's (JNJ) Janssen will exit its investigational RSV adult vaccine program and discontinue its Phase 3 EVERGREEN study
  • Johnson & Johnson's (JNJ) Janssen reports new RYBREVANT data showed long-term clinical response and safety in patients with advanced non-small cell lung cancer with EGFR Exon 20 insertion mutations who have failed prior platinum-based chemotherapy
  • JPMorgan Chase (JPM) and Goldman (GS) will begin trading private credit loans, according to Bloomberg
  • 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
  • NaaS Technology (NAAS) and Smart Order announce the establishment of a joint venture to create a network of destination-sharing charging services for electric vehicles
  • 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
  • Pacira BioSciences (PCRX) announces FDA acceptance of sNDA for exparel nerve blocks to produce regional analgesia in lower extremity procedures
  • Petrobras (PBR) provides Ministry of Mines and Energy update (halted)
  • PowerSchool (PWSC) announces partnership expansion with Ellucian Company L.P.
  • ProQR (PRQR) announces initial pipeline targets and highlights Axiomer RNA editing platform technology at R&D event
  • RAPT Therapeutics (RAPT) announces initiation of phase 2a trial of RPT193 in patients with moderate-to-severe asthma
  • 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
  • Rumble (RUM) announces that creators will receive additional monetization opportunities through the end of 2023
  • Ryanair Hldgs (RYAAY) has restarted discussions with Boeing (BA) for 200 jet fleet upgrade, according to Bloomberg
  • Sapiens Int'l (SPNS) declares semi-annual cash dividend of $0.25/share or $13.8 mln in total vs prior $0.23/share
  • Seagate Tech (STX) committed to an expansion of the October 2022 Restructuring Plan
  • ServisFirst Bancshares (SFBS) subsidiary ServisFirst Bank expands into Texas
  • SES S.A. (SGBAF) confirms that the company has engaged in discussions regarding a possible combination with Intelsat (INTEQ)
  • Signature Bank (SBNY): FDIC wants cryptocurrency clients at Signature Bank to close accounts by April 5, according to Bloomberg
  • Signature Bank (SBNY): FDIC hires Newmark Group (NMRK) to sell $60 billion of SBNY loans, according to WSJ
  • 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
  • United Airlines (UAL): Machinists Union reaches agreements in principle for top-of-industry wages, stronger job protections for 30,000 members at United Airlines
  • Verint Systems (VRNT) expands partnership with Google Cloud
  • Vodafone PLC (VOD) initiates squeeze-out of minority shareholders in Kabel Deutschland Holding AG
  • Vodafone PLC (VOD) to eliminate some jobs in Germany, according to Handelsblatt
  • Warner Music Group (WMG) will eliminate 270 jobs, according to Variety
  • Winnebago (WGO) subsidiary Chris-Craft increases production capacity by 50% with new facility in FL

(see Upgrades/Downgrades calendar for 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 (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 196,000; prior 191,000), Continuing Claims (prior 1.694 mln), Q4 GDP -- third estimate (Briefing.com consensus 2.7%; prior 2.7%), and GDP Deflator -- third estimate (Briefing.com consensus 3.9%; prior 3.9%)
  • 10:30 ET: Weekly natural gas inventories (prior -72 bcf)
• 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