After Hours Report

The S&P 500 lost 0.7% on Monday, as the negative impact to growth stocks following another rise Treasury yields outweighed the benefit of weaker oil prices ($102.82, -6.28, -5.8%). The Nasdaq Composite (-2.0%) and Russell 2000 (-1.9%) both fell about 2%, while the Dow Jones Industrial Average finished flat. 

Declining issues outpaced advancing issues by roughly a 3:1 margin at the NYSE and Nasdaq. The S&P 500 information technology (-1.9%), communication services (-1.8%), and consumer discretionary (-1.8%) sectors, which contain the mega-caps, were among the laggards next to the energy sector (-2.9%). 

Conversely, the financials sector (+1.3%) followed rates to the top of the leaderboard. The health care (+0.7%), consumer staples (+0.6%), and industrials (+0.3%) sectors posted more modest gains. A handful of stocks within these sectors were responsible for the relative outperformance of the Dow. 

Early on, the market appreciated the decline in oil prices, which briefly fell below $100.00 per barrel after Russia and Ukraine reported progress in ceasefire negotiations. Russia's military actions suggested otherwise, but to be fair, both sides paused today's talks to go over technical language tomorrow.

The S&P 500 was up 1.0% intraday even as Treasury yields were on the rise. The higher rates were catalyzed overnight after China locked down Shenzhen, a major technology hub, due to a COVID-19 outbreak. The potential for increased supply disruptions fed into inflation expectations, and in turn, rate-hike expectations. 

The growth stocks, unfortunately, coughed up gains and led the market lower as Treasury yields refused to let up. The 2-yr yield settled higher by nine basis points to 1.84%, and the 10-yr yield settled higher by 14 basis points to 2.14%. The U.S. Dollar Index was roughly unchanged at 99.09.

Selling interest picked up as the S&P 500 was unable to hold onto the psychological 4200 level. Apple (AAPL 150.62, -4.11, -2.7%) was a particular drag, breaking below its 200-day moving average (153.74) amid news that Foxconn halted production at an iPhone factory because of the Chinese lockdown. 

Uber (UBER 29.27, -1.49, -4.8%), meanwhile, announced a fuel surcharge for customers, exacerbating concerns that inflation will slow down consumer spending. UBER shares fell 5%. 

Investors did not receive any economic data on Monday. Looking ahead, investors will receive the Producer Price Index for February and the Empire State Manufacturing Survey for March on Tuesday. 

• Dow Jones Industrial Average -9.3% YTD
• S&P 500 -12.4% YTD
• Russell 2000 -13.5% YTD
• Nasdaq Composite -19.6% YTD

Overseas: 

• Europe: DAX +2.2%, FTSE +0.5%, CAC +1.8%
• Asia: Nikkei +0.6%, Hang Seng -5.0%, Shanghai -2.6%

Commodities: 

• Crude Oil -6.28 @ 102.82
• Nat Gas -0.08 @ 4.69
• Gold -26.90 @ 1961.90
• Silver -0.85 @ 25.30
• Copper -0.09 @ 4.53

After-Hours Spotlight:

• Coupa Software (COUP) beats by $0.14, beats on revs; guides AprQ EPS in-line, revs below consensus; guides FY23 EPS below consensus, revs below consensus... COUP down 28.4%
• dLocal Limited (DLO) beats by $0.01, beats on revs; TPV grew 145% yr/yr... DLO down 1.9%
• GitLab (GTLB) beats by $0.09, beats on revenue; guides Q1 EPS and revenue above consensus, guides FY23 EPS and revenue above consensus... GTLB up 12.1%
• Olin (OLN) to temporarily curtail epoxy production at facility in Germany... OLN down 1.1%
• Paylocity (PCTY) promotes Toby Williams to Co-CEO, names Ryan Glenn as CFO, effective immediately... PCTY down 0.9%
• Vail Resorts (MTN) misses by $0.15, misses on revs; increases midpoint of FY22 EBITDA guidance... MTN down 1.1%
• Wingstop's (WING) Chairman and CEO Charlie Morrison resigns... no indication for WING

Fair Value for Tuesday, March 15:

• S&P 500: 4,164
• Nasdaq 100: 13,040
• DJIA: 32,826

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

• Earnings/Guidance (Full Earnings Calendar):
  • Affirm (AFRM) raises Q3 and FY22 GMW and revenue guidance
  • Ballard Power (BLDP) reports Q4 (Dec) results, beats on revs
  • F45 Training Holdings (FXLV) indicated higher following Q4 results and guidance
  • KBR (KBR) updates 2025 long-term financial targets, underscoring expected value creation from HomeSafe alliance joint venture
  • TreeHouse Foods (THS) provides update on strategic review process; reaffirms FY22 guidance
  • Yum China (YUMC) provides update on the first quarter 2022 business performance amid the latest COVID-19 development in China
• General News:
  • National Security Advisor Jake Sullivan says he is seeing a "tell" that Russia is planning a chemical or biological weapon attack in Ukraine and will blame it on someone else. He says Russia will pay a "severe price" if that happens, according to CBS News
  • Russian airstrikes killed over 30 people at a base in Ukraine that was 10 miles from border with Poland, a NATO member, according to the Wall Street Journal
  • Russia asked China for military support for Ukraine war and economic support to offset sanctions. US does not know how China responded, according to the New York Times
  • Ukraine President Zelensky is seeing "some positive shifts" in dialogue with Russia, according to Times of Israel
  • National Security Advisor Jake Sullivan will meet with Chinese Communist Party Politburo Member and Director of the Office of the Foreign Affairs Commission Yang Jiechi Monday
  • Russia and China will meet for another round of peace talks today, according to the New York Times
  • Treasury targets Russian individuals and entities supporting DPRK weapons of mass destruction and ballistic missile programs
  • White House directs the drawdown of up to an aggregate value of $200 million in defense articles and services to provide assistance to Ukraine
  • Treasury sanctions Kremlin elites, leaders, oligarchs, and family for enabling Putin’s war against Ukraine
  • Russia threatened to seize assets of companies leaving Russia, according to the Wall Street Journal
  • US does not plan to use Russian sanctions as negotiation for Iran nuclear deal, according to the Wall Street Journal
  • India might buy discounted Russian oil, according to Reuters
  • EU considering export ban of luxury cars to Russia, according to Bloomberg
  • Lockdowns and travel restrictions were ordered in certain cities in China as coronavirus cases surge in the country, according to the New York Times
  • Dr. Scott Gottlieb CNBC interview: China's population is very vulnerable to the virus because they lack natural immunity and the vaccines they have are not very effective; He does not think US will have another major surge of infections. but US might see a small uptick
  • Senator Joe Manchin (D-WV) wants President Biden to use defense production act to finish pipeline. He also wants White House to reverse regulations on oil and gas production, according to Bloomberg
  • Democrats have largely stopped talking about social and climate spending in the defunct Build Back Better Act and are pivoting toward executive orders ahead of the midterm elections, according to the New York Times
  • Macau puts more quarantine restrictions on arriving travelers, according to GGR Asia
  • EU to put more restrictions on Russia oil companies, but will not initiate import ban, according to Reuters
  • Deputy Treasury Secretary Wally Adeyemo on CNBC says US will continue to put pressure on Russian economy with export controls; says to his knowledge China has not offered a workaround to Russian sanctions
  • UK Secretary of State for Transport confirms COVID travel restrictions will be lifted March 18
  • US has told allies that China is open to provide Russia with military support, according to FT
  • Ukraine/Russia talks "paused" until tomorrow; Russia launches more strikes on Kyiv; Russia says they will not pull back on invasion until “all plans” are completed, according to NY Times
  • UK Prime Minster Boris Johnson to ask Saudi Arabia to increase oil production, according to FT
  • White House issues readout of meeting between National Security Advisor Jake Sullivan and Chinese counterparts
  • United Nations Secretary-General Antonio Guterres says nuclear conflict over Ukraine is "within the realm of possibility", according to Reuters
  • US Defense Department says Russia made little advances over the weekend as assaults on cities remain stalled, according to USA Today
  • Saudi Arabia has invited China President Xi to Saudi Arabia in May for economic talks, according to WSJ
  • CNN reporting that "Jake Sullivan had an “intense,” seven-hour meeting with China’s top diplomat today, per a senior official. The US has "deep concerns” about China’s alignment with Russia, but declined to comment on whether the US believes China is open to providing Russia with requested support"
  • US and China also discussed severe consequences if China got involved with Russia's war on Ukraine - CNBC
  • AAR Corp (AIR) has signed an exclusive distribution agreement with Collins Aerospace’s Goodrich De-Icing & Specialty Heating Systems business
  • Aerojet Rocketdyne (AJRD) receives letter from shareholder Steel Partners (SPLP)
  • Amazon (AMZN) is facing questions from FTC for allegedly "tricking" customers to sign up for Prime, according to Business Insider
  • AmerisourceBergen (ABC): House Oversight Committee urges DOJ and Treasury to examine tax benefits claimed by opioid companies for $26 billion settlement
  • Astra Space (ASTR) announces a multi-launch contract
  • Astra Space (ASTR) cancels launch due to weather, next oppt'y tomorrow, according to SpaceNews reporter Jeff Foust
  • AstraZeneca (AZN) and Merck's (MRK) Lynparza (olaparib) has been approved in the US for the adjuvant treatment of patients with germline BRCA-mutated (gBRCAm) HER2-negative high-risk early breast cancer
  • AstraZeneca (AZN) receives complete response letter for its sBLA for Fasenra
  • Bally's Corporation (BALY) appoints Bobby Lavan as CFO
  • Bayer AG (BAYRY) confirms the stop of all non-essential business in Russia and Belarus, while ensuring continued access to health and agriculture products
  • Beacon Roofing Supply (BECN) has entered an accelerated share repurchase agreement with Citibank N.A to repurchase $125 mln of Beacon’s common stock
  • Berkshire (BRK.B) wants shareholders to reject proposal to replace Chairman Warren Buffett, according to Reuters
  • Biogen (BIIB) announces new data and updates from its SPINRAZA and spinal muscular atrophy research program aimed at improving clinical outcomes for people impacted by the disease, including the ASCEND, RESPOND and NURTURE studies
  • Boeing (BA) and Arajet announce the new Caribbean airline has ordered 20 737 MAX airplanes, specifically the high-capacity 737-8-200 model, to deliver low operating costs and expand affordable travel options in the Americas
  • Braemar Hotels & Resorts (BHR) filed for 6 mln share common stock offering by holders
  • BridgeBio Pharma (BBIO) announces positive phase 2 data for limb-girdle muscular dystrophy type 2
  • Bristol-Myers (BMY) and Nektar (NKTR) announce update on phase 3 PIVOT IO-001 trial evaluating bempegaldesleukin in combination with opdivo (nivolumab) in previously untreated unresectable or metastatic melanoma
  • Charles Schwab (SCHW) reports activity highlights for February 2022
  • Chevron (CVX) will trade oil from Venezuela if US removes sanctions, according to Reuters
  • Chico's FAS (CHS) appoints Kevin Mansell as the next Chair of the Board, effective immediately
  • Clene Nanomedicine (CLNN) Presents Updated Clinical Data from Phase 2 RESCUE-ALS and REPAIR trials and Preclinical ALS data at 2022 MDA Clinical & Scientific Conference
  • Comcast (CMCSA): NBCUniversal’s Peacock is finalizing a deal to stream major league baseball games, according to the Wall Street Journal
  • Danaos (DAC) placed orders for two 7,100 TEU containership
  • Deutsche Bank (DB) says "we are in the process of winding down our remaining business in Russia while we help our non-Russian multinational clients in reducing their operations. There won’t be any new business in Russia"
  • DocGo (DCGO) names Lee Bienstock as COO
  • Duck Creek Technologies (DCT) appoints Kevin Rhodes as CFO, effective April 4
  • Ecolab (ECL) announced its intent to repurchase $500 million of its shares in 2022
  • Fathom Holdings (FTHM) authorized $10 mln share repurchase program
  • First Republic Bank (FRC) announced that its Board of Directors has named Mike Roffler CEO of the Company effective March 13, 2022
  • Flora Growth (FLGC) has signed a distribution agreement with Israel-based, DNO Group, to distribute the Mind Naturals brand in the Hong Kong region
  • Ford (F) to sell some cars with missing chips, according to Auto News
  • Ford Motor (F) takes steps toward all-electric future in Europe; 7 new connected EVs support plans to sell 600k+ EVs annually by 2026
  • Foxconn (FCXNY) halts production at a Apple (AAPL) iPhone plant in China due to COVID-19 outbreak and restrictions, according to Bloomberg
  • GreenLight Biosciences (GRNA) enters into multi-target licensing agreement with Serum Institute of India
  • HCI Group (HCI) authorizes $20 mln stock repurchase plan for 202
  • IDEAYA Biosciences (IDYA) and Pfizer (PFE) expand clinical trial collaboration and supply agreements for evaluation of darovasertib and crizotinib combination in metastatic uveal melanoma and additional cMET-driven tumors
  • Incyte (INCY): FDA extended sNDA for ruxolitinib cream (Opzelura) for the treatment of vitiligo
  • Industrial Logistics Properties Trust (ILPT) announces that Yael Duffy has been appointed as its President and Chief Operating Officer, effective April 1, 2022
  • Innovative Industrial Properties (IIPR) increases quarterly dividend to $1.75/share from $1.50/share
  • International Paper (IP) to explore strategic options for 50% ownership interest in Ilim Group
  • JP Morgan (JPM) is leading talks with other banks regarding nickel market, according to the Wall Street Journal
  • Kaspien (KSPN) promotes Brock Kowalchuk to Interim CEO
  • Lazydays Holdings (LAZY) rejects B. Riley Financial (RILY) proposal
  • Li Auto (LI) receives inclusion of its shares in the Shenzhen-Hong Kong Stock Connect Program
  • LKQ (LKQ) agrees to sell PGW Auto Glass to One Equity Partners; terms not disclosed
  • Lottery.com (LTRY) appoints Ryan Dickinson as President and CFO
  • Luna Innovations (LUNA) acquires LIOS Sensing from NKT A/S's NKT Photonics for €20 million in cash
  • Lyft (LYFT) to add fuel surcharge for customers. according to Verge
  • Mercer International (MERC) announces retirement of CEO David Gandossi; appoints Juan Carlos Bueno as next CEO, effective May 1
  • MoneyGram (MGI) to Suspend Services in Russia
  • Myriad Genetics (MYGN) receives FDA approval of BRACAnalysis CDx as a companion diagnostic for Lynparza in early breast cancer
  • Nielsen (NLSN): Elliott Management and other private equity firms in discussions to purchase NLSN for $15 bln, according to WSJ
  • Novartis (NVS) reports new data reinforcing the benefit of Zolgensma
  • Oasis Petroleum (OAS) declares its first variable dividend of $3.00/share
  • Petrobras (PBR) is close to reaching an agreement to sell to U.S. PE firm EIG Energy Partners control of Bolivia/Brazil natural gas pipeline per Reuters
  • Pfizer (PFE): Some parts of the world will not have access to Pfizer coronavirus treatment pill for a year, according to Bloomberg
  • Pfizer (PFE) CEO Albert Bourla says fourth coronavirus vaccine will be necessary, according to CBS News
  • Pfizer (PFE) to halt clinical trials in Russia; will maintain medicine supply to Russia, donate all profits from Russian subsidiary to humanitarian support of Ukrainian people
  • Phathom Pharmaceuticals (PHAT) has submitted a new drug application to the U.S. Food and Drug Administration for the use of vonoprazan as a treatment for adults for the healing of all grades of erosive esophagitis and relief of heartburn, and maintenance of healing of all grades of EE and relief of heartburn
  • Photronics (PLAB) announces that Dr. Frank Lee has been named President of the company, effective immediately
  • Public Service (PEG) entered into Master Confirmation and Supplemental Confirmation with Goldman to effect an accelerated share repurchase of $250.0 mln of shares of PSEG’s outstanding common stock
  • Rivian Automotive (RIVN) hires Frank Klein as Chief Operations Officer, effective June 1, 2022
  • Sanofi (SNY) provides update on Phase 2 study evaluating amcenestrant in ER+/HER2- advanced or metastatic breast cancer; AMEERA-3 trial did not meet primary endpoint of improving progression-free survival
  • Service Properties Trust (SVC) announces that Todd Hargreaves has been appointed as its President and Chief Investment Officer, effective April 1, 2022
  • Ship Finance Intl (SFL) has agreed to charter out six 14,000 TEU container vessels to Hapag-Lloyd AG for a fixed period of five years
  • Sleep Number (SNBR) has unanimously elected Shelly R. Ibach as Board Chair, effective May 12, 2022, following the Company’s Annual Meeting of Shareholders
  • Sono Group N.V. (SEV) announces entrance into series validation phase for Sion model
  • SOPHiA GENETICS SA (SOPH) and REALM IDx announce that they signed a letter of intent to collaborate in the co-development of novel genomic applications and commercialization of multi-modal applications
  • Southwest Gas (SWX): Carl Icahn issues letter to SWX; says company "could be worth in a range of $110-$150 per share"
  • Southwest Gas (SWX): Icahn Enterprises (IEP) increases tender offer price for Southwest Gas Tender Offer
  • TDCX (TDCX) has authorized a $30 mln share repurchase program
  • Tencent (TCEHY) might have a record fine for money laundering, according to the Wall Street Journal
  • Transdigm Group (TDG) to acquire DART Aerospace for approx. $360 mln
  • TreeHouse Foods (THS) provides update on strategic review process; reaffirms FY22 guidance
  • Uber (UBER) adds fuel surcharge; consumers will pay a surcharge of either $0.45 or $0.55 on each Uber trip and either $0.35 or $0.45 on each Uber Eats order
  • urban-gro (UGRO) has signed a definitive agreement to acquire Emerald Construction Management Inc.
  • Valaris (VAL) issues statement regarding drillship VALARIS DS-16
  • Valneva SE (VALN) provided regulatory update on its COVID-19 vaccine candidate
  • Velodyne Lidar (VLDR) announces change to Board of Directors and provides update on stock ownership
  • Virtu Financial (VIRT) announced a non-exclusive co-operation agreement with emerging markets specialist Arqaam Capital
  • Williams Cos (WMB) reached an agreement to acquire the Haynesville gathering and processing assets of Trace Midstream in a transaction valued at $950 million
  • Workhorse Group (WKHS): House Dems asked watchdog to review USPS vehicle contract, according to Reuters
  • W&T Offshore (WTI) promotes William Williford to COO

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • BRP Group (BRP) upgraded to Buy from Neutral at BofA Securities; tgt $31
  • Carlsberg A/S (CABGY) upgraded to Hold from Sell at Berenberg
  • Centennial Resource Development (CDEV) upgraded to Equal Weight from Underweight at Wells Fargo; tgt $12
  • Deutsche Bank (DB) upgraded to Hold from Sell at Berenberg
  • Enova International (ENVA) upgraded to Buy from Neutral at Janney; tgt $49
  • Fortive (FTV) upgraded to Overweight from Equal Weight at Barclays; tgt $75
  • Helios Technologies (HLIO) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $90
  • Helmerich & Payne (HP) upgraded to Buy from Neutral at Seaport Research Partners; tgt $50
  • LTC Properties (LTC) upgraded to Sector Perform from Underperform at RBC Capital Mkts; tgt raised to $37
  • Nokia (NOK) upgraded to Outperform from Mkt Perform at Raymond James; tgt $6.50
  • Olin (OLN) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $64
  • Tenaris (TS) upgraded to Peer Perform from Underperform at Wolfe Research; tgt raised to $43
  • TFI International (TFII) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $115
  • Unilever PLC (UL) upgraded to Mkt Perform from Underperform at Bernstein
• Downgrades:
  • American Electric (AEP) downgraded to Neutral from Buy at Seaport Research Partners
  • Banco Bilbao Vizcaya Argentaria (BBVA) downgraded to Neutral from Overweight at JP Morgan
  • BCE Inc (BCE) downgraded to Neutral from Buy at BofA Securities
  • Campbell Soup (CPB) downgraded to Hold from Buy at R5 Capital
  • Chevron (CVX) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $166
  • Futu Holdings (FUTU) downgraded to Underperform from Outperform at CLSA; tgt lowered to $27
  • Interpublic (IPG) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $42
  • IPG Photonics (IPGP) downgraded to Underperform from Mkt Perform at Raymond James
  • Northern Oil & Gas (NOG) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $34
  • Occidental Petro (OXY) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $52
  • Omnicom (OMC) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $90
  • OncoCyte (OCX) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
  • Southwestern Energy (SWN) downgraded to Underweight from Equal Weight at Wells Fargo; tgt raised to $10
  • The Vita Coco Company (COCO) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $10
  • Tyson Foods (TSN) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $99
  • USA Compression Partners (USAC) downgraded to Underweight from Neutral at JP Morgan; tgt $17
• Others:
  • Accenture (ACN) added to Tactical Outperform list at Evercore ISI
  • Constellation Energy (CEG) initiated with a Buy at Goldman; tgt $62
  • Energy Vault (NRGV) initiated with a Sell at Goldman; tgt $9
  • Oportun Financial (OPRT) initiated with a Buy at Loop Capital; tgt $24
  • Peloton (PTON) initiated with an Equal-Weight at Morgan Stanley; tgt $32
  • Republic Bancorp (RBCAA) initiated with an Overweight at Piper Sandler
  • Tyler Tech (TYL) initiated with an Equal Weight at Barclays; tgt $445

Upcoming Events:

• Econ data (Tuesday):
  • 08:30 ET: February PPI (Briefing.com consensus +1.0% m/m; Prior +1.0%) and Core PPI (Briefing.com consensus +0.6% m/m; Prior +0.8%)
  • 08:30 ET: March Empire State Manufacturing Survey (Briefing.com consensus 9.0; Prior 3.1
• Earnings:
  • Monday (Mar. 14)
    • Pre-Market: None
    • After-Hours: CVGW COUP DLO MTN WPRT
  • Tuesday (Mar. 15)
    • Pre-Market:  DOLE IHS
    • After-Hours:   CAL GOCO S SMAR
  • Wednesday (Mar. 16)
    • Pre-Market:  DOYU JBL
    • After-Hours: BRLT GES LEN PD SMTC WSM ZTO
  • Thursday (Mar. 17)
    • Pre-Market: ACN CSIQ CMC DBI DG GIII SCWX SIG WRBY
    • After-Hours: FDX GME JOAN STNE CURV
  • Friday (Mar. 18)
    • Pre-Market: ONON
    • After-Hours: None
    • Full Earnings Calendar