After Hours Report

The S&P 500 rose 0.8% on Monday, as money flowed back into the mega-caps/growth stocks, which accounted for the outperformance of the Nasdaq Composite (+1.9%). The Dow Jones Industrial Average (+0.3%) and Russell 2000 (+0.2%) rose more modestly. 

Growth stocks appeared to draw speculative interest from Elon Musk disclosing a 9.2% passive stake in Twitter (TWTR 49.97, +10.66, +27.1%), which propelled TWTR shares to a 27% gain. The investment, and bullish reaction, seemed to instill confidence for dip-buying activity in the growth-stock space, including the mega-caps. 

The Vanguard Mega Cap Growth ETF (MGK 240.27, +4.56, +1.9%) advanced 1.9%, leaving the Invesco S&P 500 Equal Weight ETF (RSP 158.56, +0.34, +0.2%) in the dust with its 0.2% gain. 

The S&P 500 information technology (+1.9%), consumer discretionary (+2.3%), and communication services (+2.3%) sectors, which contain the mega-caps, each rose about 2%. The energy sector (+0.1%) eked out a gain, while the other sectors closed lower with utilities (-0.8%) finishing in last place. 

One more word related to Elon, Tesla (TSLA 1145.45, +60.86, +5.6%) reported over 310,000 deliveries in the first quarter, representing a 68% yr/yr increase despite ongoing supply chain disruptions. TSLA shares rose 5.6%.

Starbucks (SBUX 88.09, -3.40, -3.7%), meanwhile, fell 4% after interim CEO Howard Shultz suspended the company's share buyback program to invest more into the company's people and stores. 

Elsewhere, oil prices climbed back above $100 per barrel ($103.34, +3.80, +3.8%) amid no reported progress in peace talks between Russia and Ukraine. Coal prices also hit a 13-year high, exacerbating the inflation narrative that helped drive selling interest in the longer-dated part of the Treasury market. 

The 10-yr yield increased three basis points to 2.41% while the 2-yr yield decreased one basis point to 2.42% -- narrowing the inversion to one basis point. The U.S. Dollar Index increased 0.4% to 99.01. 

Reviewing Monday's economic data:

• Factory orders for manufactured goods declined 0.5% m/m in February (Briefing.com consensus -0.6%) following an upwardly revised 1.5% increase (from +1.4%) in January. Shipments of manufactured goods jumped 0.6% after increasing 1.4% in January.
  • The key takeaway from the report is that it followed a relatively strong month of order growth in January and likely reflects some delayed influence of the Omicron variant on business activity, making it too early to say if this is the start of a weakening trend for factory orders.

Looking ahead, investors will receive the ISM Non-Manufacturing Index for March and the Trade Balance for February on Tuesday. 

• Dow Jones Industrial Average -3.9% YTD
• S&P 500 -3.9% YTD
• Russell 2000 -6.7% YTD
• Nasdaq Composite -7.1% YTD

Overseas: 

• Europe: DAX +0.5%, FTSE +0.3%, CAC +0.7%
• Asia: Nikkei +0.3%, Hang Seng +2.1%, Shanghai market closed

Commodities: 

• Crude Oil +3.80 @ 103.34
• Nat Gas -0.01 @ 5.71
• Gold +11.50 @ 1937.10
• Silver -0.04 @ 24.60
• Copper +0.09 @ 4.78

After-Hours Spotlight:

• Carnival plc (CUK): the one-week period of March 28 through April 3 was the busiest booking week in its history, showing a double-digit increase from the previous record seven-day booking total... CUK up 2.4%
• Castle Biosciences (CSTL) agrees to acquire AltheaDx for $65 mln, half of which will be paid in cash and half in common stock of CSTL; expects to close in 2Q22... CSTL up 4.4%
• Sphere 3D (ANY) and Gryphon Digital mutually agree to terminate merger agreement... ANY down 15.9%
• Supernus Pharma (SUPN) reaffirms FY22 guidance... SUPN up 2.1%

Fair Value for Tuesday, April 5:

• S&P 500: 4,577
• Nasdaq 100: 15,161
• DJIA: 34,817

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

• Earnings/Guidance (Full Earnings Calendar):
  • Atotech (ATC) reports Q4 (Dec) results, beats on revs
  • Camtek (CAMT) sees Q1 revs above consensus
  • CME Group (CME) reports Q1 Overall ADV increased 19% and March ADV was up 12% year-over-year
  • Exxon Mobil (XOM) provides impact to Q1 results given recent market conditions
  • Ford Motor (F) reports March 2022 US sales -25.6% yr/yr to 159,328 units
  • Niu Technologies (NIU) reports Q1 sales volume increased 9.4% yr/yr
  • Perion Network (PERI) sees Q1 revs above consensus
  • Stellantis (STLA): FCA US had sales of 405,221 vehicles in Q1
  • Tesla (TSLA) reports it produced 305.4K vehicles in Q1
  • Wendy's (WEN) lowers FY22 EPS guidance; reaffirms FY22 global systemwide sales growth guidance
• General News:
  • Russian troops now appear to be withdrawing from areas around Kyiv, but attacks in other areas continue. Western officials cautioned that Russian movements away from Kyiv could just be repositioning for renewed attacks, according to the New York Times
  • White House chief of staff Ron Klain says Russia's invasion of Ukraine is "far from over." He says there is a lot of evidence that Russia is simply redeploying troops to eastern Ukraine, according to ABC News
  • White House mulling additional sanctions against Russia for civilian executions, according to the Washington Post
  • Biden Administration announces several actions to improve and expand jobs in the trucking industry
  • Senator Joe Manchin (D-WV) is against SEC rule on climate disclosures, according to CNBC
  • European Council President says Charles Michel says "Further EU sanctions & support are on their way"
  • Coronavirus cases continue to surge in China amid more lockdowns and additional Omicron sub variant, according to Bloomberg
  • China will revise confidentiality rules for offshore listings, according to Reuters
  • House will introduce legislation thus week to provide $55 bln in support for restaurants, according to Roll Call
  • Iran believes nuclear deal is getting close, according to Bloomberg
  • UK Prime Minister Boris Johnson issues statement on Russian war crimes against civilians in Irpin and Bucha
  • President Biden speaking to reporters outside White House says he wants a war crimes trial for Russian President Putin and he wants more sanctions
  • Lawmakers reach agreement on $10 bln in funding for COVID-19 vaccines, treatments, and testing for Americans; no money for international countries, according to Washington Post
  • Coal prices in US top $100 per ton, highest in 13 years, according to Bloomberg
  • Abbott Labs (ABT): FDA approves Aveir single-chamber (VR) leadless pacemaker
  • Abiomed (ABMD) COO David Weber has retired
  • ADC Therapeutics (ADCT) receives permanent J-code for ZYNLONTA from U.S. CMS
  • Advanced Micro (AMD) announces a definitive agreement to acquire Pensando for ~$1.9 bln before working capital and other adjustments
  • Airbus (EADSY) considering delaying production plan for A350, according to Bloomberg
  • Air Lease (AL) adds 32 Boeing (BA) 737 MAX jets to orderbook
  • Alaska Airlines (ALK) cancelled 300 flights amid staffing issues, according to the Wall Street Journal
  • Alnylam Pharma (ALNY) announces that the U.S. Food and Drug Administration has extended the review timeline of the New Drug Application for vutrisiran to allow for the review of newly added information related to the new secondary packaging and labeling facility
  • Amazon (AMZN) union will request bargaining negotiations begin next month, according to Reuters
  • American Homes 4 Rent (AMH): Land & Buildings issues open letter to Nominating and Corporate Governance Committee of American Homes 4 Rent
  • Amylyx Pharmaceuticals (AMLX) Announces Oral Presentation of Safety and Tolerability Data on AMX0035 from Clinical Trials at 2022 American Academy of Neurology Annual Meeting
  • Apyx Medical (APYX) has submitted a 510(k) premarket notification to the U.S. Food and Drug Administration
  • Ardmore Shipping (ASC) has agreed terms for the sale of three 2008-built MR product tankers to Leonhardt & Blumberg for an aggregate price of $40 mln
  • Ardelyx (ARDX) launches NHE3 inhibitor IBSRELA for the treatment of irritable bowel syndrome with constipation
  • Argo Group (ARGO) looking for another advisor to restart sale process, according The Insurer
  • Array Tech (ARRY) enters supply agreement for Gemini solar project to supply nearly 1GW of DuraTrack HZ v3 single-axis solar trackers
  • Ashford (AINC) enters $100 mln corporate financing commitment
  • AstraZeneca (AZN): AZD8233 reduced low-density lipoprotein cholesterol levels by 73% in patients with high-risk hypercholesterolemia in ETESIAN Phase IIb trial
  • Bank OZK (OZK) increases its quarterly dividend 3.3% to $0.31/share
  • Bayer (BAYRY) presents results from first Phase 2b trial on safety of asundexian in patients with atrial fibrillation
  • Bayer AG (BAYRY) presents late-breaking data from prespecified exploratory subgroup analyses of FIDELITY, a prespecified pooled analysis of the Phase III FIDELIO-DKD and FIGARO-DKD trials
  • Biotech Acquisition Company (BIOT): Blade Therapeutics announces receipt of feedback from the FDA regarding the company’s end-of-phase 1 data package for cudetaxestat
  • Borr Drilling (BORR) has been awarded new contracts and extensions for 5 of its premium jack-up drilling rigs
  • Bragg Gaming Group (BRAG) secured content distribution agreements with multiple iGaming operators; on track to launch proprietary and exclusive iGaming content in Ontario
  • Bristol Myers Squibb (BMY) Announces Data from EXPLORER-LTE Demonstrating Sustained Improvements in Clinically Meaningful Cardiovascular Outcomes at Weeks 48 and 84 in Patients with Symptomatic Obstructive Hypertrophic Cardiomyopathy Receiving Mavacamten
  • Caledonia Mining (CMCL) sees total gold production for FY22 of 73,000 to 80,000 ounces
  • Centerra Gold (CGAU) has entered into a global arrangement agreement with Kyrgyzaltyn JSC and the Government of the Kyrgyz Republic to effect a clean separation of the parties, including through the disposition of Centerra’s ownership of the Kumtor Mine and investment in the Kyrgyz Republic, the elimination of Kyrgyzaltyn’s involvement and interest in the Company, and the resolution of their disputes
  • Citigroup (C) announces that Ahli United Bank B.S.C. has agreed to acquire Citi’s consumer banking business in Bahrain
  • Citizens Financial Group (CFG) and Investors Bancorp (ISBC) announce transaction close date for merger of April 6
  • Constellation Brands (STZ) confirms receipt of proposal to transition to a single class common stock structure
  • Curis (CRIS): FDA places clinical hold on TakeAim Leukemia Phase 1/2a study (NCT04278768)
  • CymaBay Therapeutics (CBAY) announces publication of results from a 52-week, open-label, phase 2 study of Seladelpar in patients with primary biliary cholangitis
  • Cytokinetics (CYTK) Announces Results From Cohort 3 of Redwood-HCM Presented at American College of Cardiology 71st Annual Scientific Session
  • Digital World Acquisition Corp (DWAC): Two technology execs leave Truth Social amid issues with launch of app, according to Reuters
  • DraftKings (DKNG) continues to pursue remaining gaming regulatory approvals necessary to consummate acquisition of Golden Nugget Online Gaming, co now expects deal to close on or prior to May 31
  • Everbridge (EVBG): Ancora issues statement regarding potential acquirer interest in Everbridge
  • Everi (EVRI) expands gaming content in Ontario
  • Exxon (XOM) suspends liquefied natural gas project in the eastern part of Russia, according to Reuters
  • Exxon Mobil (XOM) makes final investment decision for Yellowtail development offshore Guyana
  • Fluor (FLR) announces Japan Bank for International Cooperation investment of $110 mln into NuScale Power
  • General Motors (GM): Canada will support two General Motors EV plants, according to Reuters
  • General Motors (GM) to invest more than $2 bln in Oshawa and CAMI assembly plants in EV production push
  • Genius Sports (GENI) receives regulatory approval for launch in Ontario
  • Gilead Sciences (GILD) receives FDA approval for Yescarta
  • Ginkgo Bioworks (DNA) and Microba Life Sciences announce live bacteria product partnership to combat autoimmune diseases
  • Glatfelter Co (GLT) announces CFO transition
  • Hasbro (HAS): Earlier, HAS announced addition of Discord COO Elizabeth Hamren and Electronic Arts (EA) EVP Blake Jorgensen to Board effective April 1; plans to keep Wizards brand
  • Henry Schein (HSIC) announces retirement of Chief Administrative Officer and Appoints Chief Operating Officer
  • ImmunityBio (IBRX): results from the QUILT-3.032 study continue to demonstrate a clinically meaningful benefit that is sustained; the BLA is expected to be submitted to the FDA this month
  • Immunocore (IMCR): European Commission approves KIMMTRAK (tebentafusp) for the treatment of HLA-A 02:01-positive adult patients with unresectable or metastatic uveal melanoma
  • Intevac (IVAC) announces the receipt of a $54 million order for multiple 200 Lean systems
  • Ionis (IONS) announces positive data for ETESIAN Phase 2b study of antisense medicine targeting PCSK9 at 2022 American College of Cardiology Scientific Session
  • iRhythm (IRTC) reports Zio Shown to Prevent Hospital Admissions, Aid in Early Detection of AF
  • IVERIC bio (ISEE) completed a retrospective review of the cases of choroidal neovascularization in the Zimura 2 mg group from GATHER1
  • Johnson & Johnson (JNJ): Janssen announces Health Canada Approval of RYBREVAN, the first and only targeted treatment for patients with non-small cell lung cancer with EGFR Exon 20 insertion mutations
  • JPMorgan Chase (JPM) CEO Jamie Dimon issues letter to shareholders
  • JPMorgan Chase (JPM) in proxy statement says "a substantial majority of those with whom we engaged, including most of our top holders, indicated support for a policy that would enable our current CEO to serve as non-executive Chair at the next leadership transition"
  • Jumia (JMIA) and UPS (UPS) announced a partnership giving UPS access to Jumia's last mile logistics capabilities and infrastructure to grow its delivery services in Africa
  • Jumia (JMIA) soars after partnering with UPS to greatly expand its delivery capabilities
  • Kohl's (KSS): shareholder Macellum issues letter to Kohl's board
  • Lockheed Martin (LMT) and Intel (INTC) sign agreement to bring 5G solutions to defense systems
  • Manitowoc (MTW) continues to curtail operations in Russia since the conflict began, having stopped taking new crane orders
  • Mattel (MAT) will boost production in Mexico, according to Reuters
  • Medtronic (MDT) announces long-term data from the first 80 patients in the SPYRAL HTN-ON MED trial
  • Morningstar (MORN) has reached an agreement to acquire Leveraged Commentary & Data
  • Myriad Genetics (MYGN) settles lawsuit filed by STF, LLC
  • National Health (NHI) provided a business update regarding recent portfolio activity, monthly rent concessions and contractual cash collections, and average occupancy from three large senior housing operators through February 2022
  • Newmark Group (NMRK) announces the acquisition of leading London-based real estate advisory firm, BH2, led by the iconic Tony Gibbon; financial terms were not disclosed
  • Novartis (NVS) announces new organizational structure to accelerate growth, strengthen pipeline and increase productivity
  • Ocugen (OCGN): World Health Organization suspends Covaxin's supply through UN agencies, according to India Today
  • OrthoPediatrics (KIDS) acquires MD Orthopaedics; KIDS to make upfront payment of $8.2 mln in cash and $8.9 mln in stock
  • Pacific Biosciences (PACB) announces a new collaboration with global agriculture company, Corteva Agriscience, to develop custom, end-to-end workflows for plant, pest and microbial sequencing
  • Pearson Plc (PSO) to commence the first tranche of its £350 million share buyback program
  • PerkinElmer (PKI): CDPH intends to end its COVID contract due to reduced caseload; co reaffirms it expects COVID-related revs of at least $400 mln in 2022
  • Philips (PHG) announces late-breaking results of a large-scale, real-world analysis of U.S. Centers for Medicare & Medicaid Services data on the rates of guideline adherence and associated mortality in patients with CIED infection
  • PPL Corp (PPL) provides Rhode Island Division updates
  • Regeneron Pharma (REGN) receives FDA acceptance for Priority Review of Dupixent
  • Roche Hldg (RHHBY): FDA grants Priority Review to Genentech’s Actemra for the treatment of COVID-19 in hospitalized adults
  • Roku (ROKU) issued the following statement confirming that it has reached a multi-year extension of its distribution agreement with Amazon (AMZN)
  • Sempra Energy (SRE) and Korea Gas Corporation entered into a memorandum of understanding to explore opportunities to cooperate in the global energy transition to lower-carbon and zero-carbon fuels
  • Sharps Compliance (SMED) appointed W. Patrick Mulloy as President & Chief Executive Officer
  • Ship Finance Intl (SFL) to sell the 2004-built VLCCs Front Energy and Front Force to an unrelated third party
  • Silence Therapeutics (SLN) Announces Detailed Results From SLN360 Phase 1 Study in High Lipoprotein(a) Presented in Late Breaker at the American College of Cardiology (ACC.22) Annual Meeting
  • Sorrento Therapeutics (SRNE) subsidiary Scilex provides sales results for ZTlido
  • Southwest (LUV) planned outage impacted flights nationwide, according to NBC News
  • Starbucks (SBUX) suspends stock buyback program
  • Tesla (TSLA) will not resume Shanghai production today, according to Reuters
  • The Arena Group (AREN) completes acquisition of AMG/Parade
  • Twitter (TWTR): Elon Musk discloses 9.2% passive stake
  • U.S. Steel (X) announced that it that its Big River Steel mill in Osceola, Arkansas has achieved the first-ever ResponsibleSteel site certification in North America
  • Verve Therapeutics (VERV) reports durable and well-tolerated editing of ANGPTL3 gene out to more than 20 months in non-human primates for potential treatment of atherosclerotic cardiovascular disease
  • Virgin Group Acquisition Corp. II (VGII): Grove Collaborative announces principals agree to backstop SPAC business combination with Virgin Group Acquisition Corp. II
  • Yamana Gold (AUY)Announces Positive Exploration Results Underpinning Strategic Upside at El Peñón, Odyssey and Wasamac, Announces Completion of TCFD Climate Action Report Relating to Recently Announced Climate Action Strategy, and Notes Investor Day on April 5

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • DCP Midstream (DCP) upgraded to Outperform from In-line at Evercore ISI
• Downgrades:
  • Baxter (BAX) downgraded to Sell from Neutral at Goldman; tgt lowered to $77
  • Blend Labs (BLND) downgraded to Mkt Perform from Outperform at William Blair
  • Brookfield Renewable Partners (BEP) downgraded to Hold from Buy at TD Securities; tgt $41
  • Crocs (CROX) downgraded to Hold from Buy at Loop Capital; tgt lowered to $80
  • Enterprise Products (EPD) downgraded to In-line from Outperform at Evercore ISI
  • Hercules Capital (HTGC) downgraded to Neutral from Overweight at Piper Sandler; tgt $19
  • Hologic (HOLX) downgraded to In-line from Outperform at Evercore ISI; tgt $80
  • LHC Group (LHCG) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $170
  • Quest Diagnostics (DGX) downgraded to Neutral from Buy at Citigroup; tgt lowered to $140
• Others:
  • Aldeyra Therapeutics (ALDX) assumed with a Buy at JonesTrading; tgt $14
  • Alpha Tau (DRTS) initiated with a Buy at Citigroup; tgt $21
  • DigitalOcean (DOCN) initiated with an Overweight at Piper Sandler; tgt $72
  • Doximity (DOCS) initiated with a Neutral at BofA Securities; tgt $55
  • Gracell Biotechnologies (GRCL) initiated with a Buy at BTIG Research; tgt $18
  • Marqeta (MQ) initiated with an Equal-Weight at Morgan Stanley; tgt $15
  • Shift4 Payments (FOUR) initiated with a Positive at Susquehanna

Upcoming Events:

• Econ data (Tuesday):
  • 08:30 ET: February Trade Balance (Briefing.com consensus -$88.5B; Prior -$89.7B)
  • 10:00 ET: March ISM Non-Manufacturing Index (Briefing.com consensus 58.5%; Prior 56.5%)
• Earnings:
  • Monday (Apr. 4)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Apr. 5)
    • Pre-Market:  AYI CGNT LNN
    • After-Hours:   ARRY SGH
  • Wednesday (Apr. 6)
    • Pre-Market:  GBX RPM SCHN SMPL TLRY
    • After-Hours: LEVI RGP CXM
  • Thursday (Apr. 7)
    • Pre-Market: ANGO APOG CAG STZ LW
    • After-Hours:  PSMT WDFC
  • Friday (Apr. 8)
    • Pre-Market: None
    • After-Hours: None
    • Full Earnings Calendar