After Hours Report

Market participants were still willing to buy into weakness today coming off last week's losses, which has been the case since the start of 2023. A quick dip right out of the gate had the S&P 500 slip below the 4,100 level before buyers stepped in and a rally effort took root, helped along by some short-covering activity and a fear of missing out on further gains. 

Upside leadership from the mega cap space was an important driver of index level gains. Meta Platforms (META 179.43, +5.28, +3.0%) and Microsoft (MSFT 271.32, +8.22, +3.1%) each rose more than 3.0% with no specific news catalysts and helped drive a 1.5% gain in the Vanguard Mega Cap Growth ETF (MGK). The Invesco S&P 500 Equal Weight ETF (RSP) and S&P 500, meanwhile, both gained 1.1% today. 

Today's advance was broad in nature. Advancers led decliners by a greater than 3-to-1 margin at the NYSE and a 3-to-2 margin at the Nasdaq. 

Ten of the 11 S&P 500 sectors logged gains today led by the heavily weighted information technology (+1.8%) and consumer discretionary (+1.5%) sectors. The energy sector (-0.6%) was the lone laggard in negative territory. 

Today's gains were registered in front of the market-moving January Consumer Price Index (CPI) at 8:30 a.m. ET tomorrow. Market participants also received the NY Fed's Survey of Consumer Expectations today, which showed that inflation expectations are mostly stable, but household income growth expectations have dropped. Some of the key findings from the survey included:

"Median inflation expectations remained unchanged at the one-year-ahead horizon, decreased by 0.2 percentage point at the three-year-ahead horizon, and increased by 0.1 percentage point at the five-year-ahead horizon, to 5.0%, 2.7% and 2.5%, respectively. The survey's measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased slightly at the one-year horizon, remained unchanged at the three-year horizon, and increased at the five-year horizon.

After increasing each month since September of last year, the median expected growth in household income dropped by 1.3 percentage point to 3.3%. This is the largest one-month drop in the nearly ten-year history of the series. The January reading, however, is only slightly below its 12-month trailing average of 3.5%, and the series remains well above its pre-pandemic levels. January's decrease was more pronounced among respondents with no more than a high school education, respondents older than 60, and those with annual household incomes below $50k."

The 2-yr Treasury note yield, which is most sensitive to changes in the fed funds rate, rose three basis points 4.54%. The 10-yr note yield fell three basis points to 3.72%.

• Nasdaq Composite: +13.6% YTD
• Russell 2000: +10.2% YTD
• S&P Midcap 400: +9.9% YTD
• S&P 500: +7.8% YTD
• Dow Jones Industrial Average: +3.3% YTD

There was no U.S. economic data of note today.

Coca-Cola (KO), Marriott (MAR), Cleveland-Cliffs (CLF), Restaurant Brands Int'l (QSR), IPG Photonics (IPGP), Exelon (EXC), GlobalFoundries (GFS), and Entegris (ENTG) are some of the companies reporting earnings ahead of Tuesday's open. 

Economic data on Tuesday is limited to the much anticipated January Consumer Price Index (Briefing.com consensus 0.5%; prior -0.1%) and core-Consumer Price Index (Briefing.com consensus 0.4%; prior 0.3%) at 8:30 a.m. ET. 

• Europe: DAX +0.6%, FTSE +0.8%, CAC +1.1%
• Asia: Nikkei -0.9%, Hang Seng -0.1%, Shanghai +0.7%

Commodities: 

• Crude Oil +0.44 @ 80.10
• Nat Gas -0.12 @ 2.41
• Gold -10.20 @ 1863.70
• Silver -0.17 @ 21.88
• Copper +0.05 @ 4.07

After-Hours Spotlight:

• Amazon (AMZN) edging lower after CEO Andy Jassy noted the company will double down on physical grocery stores, according to FT... AMZN down 0.1%
• American Intl (AIG) enters into binding memorandum of understanding with Stone Point Capital to form an independent Managing General Agency to serve high net worth and ultra high net worth markets... AIG up 1.2%
• Avis Budget (CAR) beats by $3.47, beats on revs... CAR up 4.3%
• Cadence Design (CDNS) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY23 EPS above consensus, revs above consensus... CDNS up 2.1%
• Cleveland-Cliffs (CLF) beats by $0.01, misses on revs... CLF down 1.5%
• Denny's (DENN) beats by $0.02, reports revs in-line, comps +2%; expects FY23 comps of +3-6%... DENN up 5.4%
• FirstEnergy (FE) misses by $0.03, beats on revs; guides Q1 EPS in-line; guides FY23 EPS in-line; reiterates long-term annual earnings growth rate; announces new dividend policy raising targeted payout ratio to 60-70% of earnings... FE down 1.6%
• Fusion Pharmaceuticals (FUSN) acquires RadioMedix... FUSN up 32.8%
• Palantir Technologies (PLTR) beats by $0.01, reports revs in-line; guides Q1 revs below consensus; guides FY23 revs below consensus... PLTR up 17.4%
• SolarEdge Technologies (SEDG) beats by $1.27, beats on revs; guides Q1 revs above consensus... SEDG down 3.8%

Fair Value for Tuesday, February 14:

• S&P 500: 4,147
• Nasdaq 100: 12,539
• DJIA: 34,265

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

• Earnings/Guidance (Full Earnings Calendar):
  • Bally's Corporation (BALY) provides Q4 and FY23 upside revenue guidance
  • CEMEX S.A. (CX) reports Q4 results; misses on revs
  • Check Point Software (CHKP) beats by $0.09, reports revs in-line; announces $2.0 bln expansion of share repurchase program
  • Check Point Software (CHKP) guides on call; sees Q1 revs in-line; guides FY23 EPS and revs in-line
  • Fidelity Nat'l Info (FIS) beats by $0.01, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS below consensus, revs below consensus
  • IAA (IAA) reports prelim Q4 revs miss
  • Monday.com (MNDY) beats by $0.80, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus
  • Ritchie Bros. (RBA) announces upside prelim Q4 revs
  • Roivant Sciences (ROIV)  reports Q4 result
  • Sotera Health (SHC) reaffirms FY22 revs in conjunction with incremental debt financing
  • Teradata (TDC) beats by $0.05, beats on revs; guides Q1 EPS above consensus; guides FY23 EPS above consensus, revs above consensus
  • TreeHouse Foods (THS) misses by $0.01, misses on revs; guides FY23 revs below consensus
• General News
  • US shot down three flying objects over Alaska, Canada, and Michigan over the last three days. Objects have not been identified, but there is no evidence of extraterrestrial activity. This follows the Chinese spy balloon that was shot down last week, according to the New York Times
  • President Biden prepared to ask Congress for largest defense budget in history, according to Politico
  • The Biden administration will allow Medicaid money to be spent on food, according to the Wall Street Journal
  • French unions threatened to bring country "to a halt", according to Bloomberg
  • President Biden's budget that will be released in March is expected to focus on tax increases on corporations and wealthy to bring down deficit, according to Axios
  • EU commission issues Winter 2023 Economic Forecast: EU economy set to avoid recession, but headwinds persist
  • EU Commission sets out rules for renewable hydrogen
  • White House issues readout of call between President Biden and Prime Minister Trudeau of Canada
  • White House issues joint statement following the meeting between President Biden and President Lula of Brazil
  • US oil producers looking for M&A deals, according to Financial Times
  • Senate Majority Leader Chuck Schumer says US should "look at" banning TikTok, according to Bloomberg
  • 50 million people bet over $16 billion on Super Bowl 57, according to CNN
  • UPS aiming to lay off some weekend drivers, according to Business Insider
  • NY Fed inflation expectations mostly stable; household income growth expectations drop
  • US/Chinese officials considering first meeting since recent spike in tensions, according to Bloomberg
  • US will sell 26 million additional barrels of oil from SPR -- Bloomberg TV
  • President Biden announces several nominations including Ann Carlson for NTHSA
  • The Biden Administration will restart tax credit for clean energy, according to Bloomberg
  • Follow up: US will sell 26 million additional barrels of oil from SPR which was part of the sale Congress approved years ago, according to Bloomberg
  • Accenture (ACN) acquires Morphus, Brazil-based cybersecurity company; financial terms were not disclosed
  • Alphabet (GOOG) making progress with data center chips, according to The Information
  • Alphabet (GOOG) and Uber (UBER) deepen partnership to reimagine the customer experience
  • Alcon (ALC) announces settlement of litigation related to femtosecond laser assisted cataract surgery devices
  • Amazon (AMZN) eliminates 300 jobs at Zappos, according to the Wall Street Journal
  • American Homes 4 Rent (AMH) increases quarterly dividend 22% to $0.22/share from $0.18/share
  • Apple (AAPL) move into financial services delayed, according to Bloomberg
  • Avidity Biosciences (RNA): FDA grants Orphan Drug designation to company's treatment of facioscapulohumeral muscular dystrophy
  • Axsome Therapeutics (AXSM) received a Paragraph IV Certification Notice Letter from Teva (TEVA)
  • Bally's Corporation (BALY) names Robeson Reeves As CEO
  • Banc of California (BANC) increases quarterly cash dividend to $0.10 per share from $0.06 per share
  • Bath & Body Works (BBWI) adds Lucy Brady to the Board, expanding Board to 11 members
  • Bed Bath & Beyond (BBBY) aiming to wind down Canadian operations, according to Reuters
  • Bright Green (BGXX) confirms that it has received funds from its first applications following the recent announcement of its plans to raise $500 mln under the United States Citizenship and Immigration Services’ EB-5 Program
  • Castor Maritime (CTRM) announces distribution date for the previously announced spin-off of Toro Corp. will be March 7, 2023
  • Chevron (CVX) might extend mandatory retirement age for CEO Mike Wirth, according to WSJ
  • Clene (CLNN) Reports New Data from the VISIONARY-MS Phase 2 Study in Multiple Sclerosis Demonstrating CNM-Au8 Treatment Improved Brain Neuronal Structural Integrity
  • Community Healthcare Trust (CHCT) Chairman/CEO/President takes leave of absence
  • eBay (EBAY) acquires 3PM Shield to bring advanced marketplace compliance technology in-house; financial terms were not disclosed
  • Eli Lilly (LLY) and IABL collaborate to ensure patient access to high-quality affordable insulin in Bangladesh
  • Entegris (ENTG) Purchase Agreement with Infineum USA L.P. was terminated
  • Exelixis (EXEL) announces that the U.S. FDA has cleared Sairopa’s Investigational New Drug Application to evaluate the safety and pharmacokinetics of ADU-1805 in adults with advanced solid tumors
  • Fidelity National Information Services (FIS) preparing breakup, according to Reuters
  • Fidelity Nat'l Info (FIS) confirms spin off merchant business
  • Ford Motor (F) plans to to build an EV battery plant in Michigan with Chinese partner, according to Bloomberg
  • Ford Motor (F) to invest $3.5 bln in Michigan LFP battery plant, creating 2,500 jobs when production begins in 2026
  • Freeport-McMoRan (FCX) provides update on PT Freeport Indonesia Operations
  • Frequency Therapeutics (FREQ) announces FX-322-208 study fails to meet primary endpoint; to implement headcount reduction of approx. 55%, announces corporate restructuring and will also explore strategic financing alternatives (shares halted)
  • G1 Therapeutics (GTHX) announces top line results from pivotal Phase 3 Trial; Early anti-tumor efficacy data favored placebo arm over the trilaciclib arm
  • Global Payments (GPN): Parthenon Capital has entered into a definitive agreement with Global Payments to acquire its gaming division and transition Global Payments Gaming Solutions into Pavilion Payments, a stand-alone independent company
  • Gold Resource (GORO) remains focused on unlocking the value of our Mexican mine, existing infrastructure, and large property position
  • Google (GOOG) search executive warned against negatives regarding AI chat, according to Reuters
  • Gracell Biotechnologies (GRCL) Announces China NMPA Clearance for IND Application for Phase 1/2 Clinical Trial of FasTCAR-T GC012F for Treatment of Relapsed/Refractory Multiple Myeloma
  • Hawaiian Electric (HA) raises quarterly dividend to $0.36 per share from $0.35 per share
  • Henry Schein (HSIC) announces $400 mln share repurchase program
  • Hut 8 Mining (HUT) issues production and operations update for January 2023
  • ImmunityBio (IBRX) provides Sorrento (SRNE) arbitration update
  • Ironwood Pharma (IRWD) announces FDA filing acceptance and priority review of supplemental new drug application for lINZESS for functional constipation in children and adolescents ages 6-17 years-old
  • Jack Henry (JKHY) increases quarterly dividend 7% to $0.52/share from $0.49/share
  • KBR (KBR) increases quarterly cash dividend 12.5% to $0.135/share from $0.12/share
  • Kinder Morgan (KMI) fuel leak impacts western fuel deliveries, according to ABC News
  • Kinross Gold (KGC) announces robust initial mineral resource of 2.7 Moz. indicated and 2.3 Moz. inferred for Great Bear project
  • Liberty Global (LBTYA) acquires 1,355 shares (4.92% Interest) in Vodafone for £225 million
  • Magna (MGA) wins battery enclosures business on first-ever Chevrolet Silverado EV (GM)
  • Manchester United (MANU): UEFA is expected to give investors the ability to approve Qatar takeover of MANU, according to Daily Mail
  • Manchester United (MANU): Qatar will make offer for MANU in the next few days, according to Bloomberg
  • Marriott (MAR)appoints CEO Anthony Capuano as President and CEO, effective February 24
  • Meta (META) mulling another round of job cuts, according to Financial Times
  • Microsoft's (MSFT) LinkedIn unit will eliminate jobs, according to The Information
  • Morphic (MORF) entered into a securities purchase agreement
  • MSG Sports (MSGS): Xtract One Tech (XTRAF) announces MSGS plans $10 mln investment in Xtract
  • Neuronetics (STIM) announces updated policy from NGS expanding access for patients to its NeuroStar Advanced Therapy for mental health TMS, effective April 1
  • Nikola (NKLA) began work on hydrogen plants, according to the Wall Street Journal
  • Nissan Motor (NSANY) and Renault renew commitment to Indian operations through new investment and vehicles
  • Novavax (NVAX) aiming to sell 1.5 mln COVID-19 shots to US government, according to the Wall Street Journal
  • Novavax (NVAX) and the U.S. Government extend partnership, securing up to 1.5 million additional doses of Novavax' COVID-19 Vaccine
  • Ocular Therapeutix (OCUL) announces Interim 10-month Data from the Ongoing U.S. Phase 1 Clinical Trial Evaluating OTX-TKI for the Treatment of Wet AMD
  • Opthea Ltd. (OPT): Opthea phase 2b trial results of OPT-302 in combination with Lucentis for wet AMD Published in the Journal Ophthalmology
  • Ouster (OUST) and Velodyne (VLDR) complete merger of equals to accelerate Lidar adoption
  • PG&E (PCG) announces Sumeet Singh will assume role of COO, effective March 1
  • REGENXBIO (RGNX) Presents Interim Data from Phase II Bridging Study Evaluating the Clinical Performance of RGX-314 Using the NAVXpress Manufacturing Platform Process
  • Saia (SAIA) announces that Saia LTL Freight has opened new terminals in both Morgantown and Princeton, West Virginia
  • Scilex Holding (SCLX) acquires rights to FDA-approved ELYXYB in the U.S. and Canada
  • Scilex Holding (SCLX): Sorrento Therapeutics (SRNE) announces it commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court
  • SOPHiA GENETICS SA (SOPH) expands partnership with AstraZeneca (AZN) to include multimodal approaches for cancer drug development
  • Toyota (TM) aiming to accelerate electric vehicle shift, according to the Wall Street Journal
  • Twilio (TWLO) committed to a workforce reduction plan; includes the elimination of approximately 17% of the current workforce
  • Viasat (VSAT): EU antitrust regulators reportedly opening investigation into VSAT's bid for Inmarsat, according to Reuters
  • Vista Energy (VIST) estimated certified proved oil and gas reserves as of December 31, 2022 showed a 39% year-over-year increase
  • Vodafone PLC (VOD): EU Commission clears creation of a joint venture by Deutsche Telekom (DTEGY), Orange (ORAN), Telefónica (TEF) and Vodafone
  • Wish (WISH) surges above the $1-level after positive Citron Research mention
  • WSFS Financial (WSFS) announces the final network optimization plan associated with its combination with Bryn Mawr Trust, identifying the final four banking locations to be consolidated later this year
  • Zentalis Pharma (ZNTL) announces appointment of Iris Roth, PhD, as Chief Operating Officer

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • AllianceBernstein (AB) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $43.50
  • Fastly (FSLY) upgraded to Buy from Underperform at BofA Securities; tgt raised to $16
  • Five Below (FIVE) upgraded to Buy from Neutral at ROTH MKM; tgt raised to $240
  • Masco (MAS) upgraded to Hold from Sell at Deutsche Bank; tgt raised to $56
  • Newmont Goldcorp (NEM) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $60
  • Progressive (PGR) upgraded to Neutral from Underweight at Piper Sandler; tgt raised to $138
  • Ralph Lauren (RL) upgraded to Buy from Neutral at BofA Securities; tgt raised to $145
  • Verrica Pharmaceuticals (VRCA) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $11
• Downgrades:
  • Advance Auto (AAP) downgraded to Neutral from Buy at ROTH MKM; tgt lowered to $140
  • Barrick (GOLD) downgraded to Neutral from Outperform at Exane BNP Paribas; tgt $19
  • Capri Holdings (CPRI) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $55
  • Credit Suisse (CS) downgraded to Reduce from Hold at Kepler
  • Deutsche Bank (DB) downgraded to Underperform from Neutral at BofA Securities
  • Heritage Insurance (HRTG) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $2.20
  • Rio Tinto (RIO) downgraded to Neutral from Outperform at Exane BNP Paribas
  • Saia (SAIA) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt raised to $230
  • Surmodics (SRDX) downgraded to Hold from Buy at Needham
  • United Fire Group (UFCS) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $25
  • XPO, Inc. (XPO) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $43
• Others:
  • Arcellx (ACLX) initiated with a Buy at H.C. Wainwright; tgt $42
  • Okta (OKTA) initiated with an Underperform at BofA Securities; tgt $64
  • OmniAb (OABI) initiated with a Buy at H.C. Wainwright; tgt $11

• Econ data (Tuesday):
  • 8:30 ET: January CPI (Briefing.com consensus 0.5%; prior -0.1%) and Core CPI (Briefing.com consensus 0.4%; prior 0.3%)
• Earnings:
  • Monday (Feb. 13)
    • Pre-Market:  CHKP MNDY TDC THS
    • After-Hours: AMKR ANGI ACGL ANET CAR NTB BLKB BRX CDNS DENN ES FE IAC INST IRBT LSCC MEDP MKSI MRC OTTR PLTR SEDG VNO
  • Tuesday (Feb. 14)
    • Pre-Market: CAE CLF KO ECL DAVA ENTG EXC FELE GEO GFS HRI HWM INMD IPGP LCII LDOS MAR MIR BTU PKI QSR SAFE TRP TRU TRTN WCC ZTS
    • After-Hours:  ADPT ABNB AKAM ANDE BL CRK CNDT DVN WIRE GDDY GXO HLF LTHM MGY NMIH OSUR SCI SU TX TRIP UDMY UPST
  • Wednesday (Feb. 15)
    • Pre-Market: ADI AVNT GOLD BIIB CLBT CEVA CHEF CIM CHH FIS GNRC HCSG HL IDCC KRNT KHC DNUT LAD MLM NVMI OC PSN RBLX R SABR SITE SAH SUN TMHC TTD TPG WAB WKME WAT
    • After-Hours: TXG ALB ALSN AMED AEE AIG AWK AMPL AM AR ATCO AVTA SAM CF CSCO CYH CPA ET EQT EQIX FARO FSLY FCPT HST INVH KGC MFC MRO MSA NEX NUS NTR PLMR PGRE PEGA QS QDEL RSG REZI ROIC RNG ROKU ROL RPT SGEN SHOP STAG SUM SPWR SNPS TNET TROX TRUP TWLO TYL UPWK VECO HCC WCN WELL WH ZD ZG
  • Thursday (Feb. 16)
    • Pre-Market: ALKS ALE ARCH ATHM BLMN BPMC CAMT CBZ FUN CVE CEG CROX DDOG DOCN DTM DNB ETR EPAM FOCS HAS HSIC H IDA ITGR IRDM IRWD KBR KELYA LH LXP MTRN NMRK DNOW OGN PARA PBF POOL POR RCM RS SAGE STNG SHAK SO SCL SYNH TOST TSEM USFD VC VNT VMC WSO WST WE ZBRA
    • After-Hours: AEM AL AEL COLD AMN APPN AMAT ATR BIO BJRI BFAM CWST CHUY CGNX COHU ED DLR DASH DKNG DBX ELME EIG FBIN GLOB LOPE HTGC HUBS INDI KNSL LTC MERC MNTV NVRO NWE OIS OEC PACB PCOR RMAX RDFN SWAV TSLX STEM TXRH RARE
  • Friday (Feb. 17)
    • Pre-Market: AMCX ABR AN B CNP CBRG DE MD PPL
    • After-Hours: None