Mid-Morning Look: February 07, 2024

Mid-Morning Look

Wednesday, February 07, 2024





DJ Industrials




S&P 500








Russell 2000






U.S. stocks hitting all-time highs for major averages (S&P futures – Spuz top 5,000) in a reversal of yesterday’s trading action as large cap mega tech (META, AMZN, MSFT, NVDA) are back to leading major averages higher (after lagging yesterday) while Small caps (IWM) and energy (among yesterday top gainers) are seeing the biggest declines in what has been a constant rotation of assets  (though mostly in favor of tech to upside). Bond investors, still reeling from Treasuries’ worst two days in more than a year, are preparing for a new test on Wednesday when the government holds its biggest-ever sale of 10-year debt later at 1:00 PM (the 3-yr auction was well received on Tuesday) while mkts brace for another heavy dose of Fed Speakers today with Fed’s Kugler Speaking at 11:00, Collins at 11:30, Barkin at 12:30, Bowman at 2:00, Remache at 3:15, and Nordstrom at 4:30. Treasury yields very volatile again. Outside of the onslaught of earnings overnight/this morning (see top movers below), the big story in media as DIS’ ESPN, FOX and WBD announce a sports streaming alliance joint venture new platform (seeing cable names and others not part of deal weak). More market chasing ongoing as the biggest winners of 2024 seeing the biggest moves yet again to start the day as major averages look to make it a 5th straight week of gains and 14 of last 15-weeks higher!






WTI Crude















10-Year Note




Sector Movers Today

  • In Media: DIS’ ESPN, FOXA and WBD announced the formation of a new sports JV where they will combine all their linear sports channels, and certain DTC assets and content. They plan to launch the service in fall 2024, with the name and pricing to be announced later. The JV will have its own "independent management team", while board representation and ownership will be shared equally across the three companies. FOXA posted lower quarterly revenue, dragged down by an advertising slowdown which fell (-20%) among lower ratings at Fox News.
  • In Banks: NYCB credit rating was cut by Moody’s by two notches to junk; Moody’s cited “financial, risk-management and governance challenges” for NYCB. In research, NYCB was downgraded from Overweight to Neutral w/ $5.50 PT (from $11.50) at JP Morgan and cut from Buy to Neutral (tgt to $5) saying the elevated headline risk has the potential to influence customer behavior, leading to a greater than-expected increase in the cost of deposits. PB was upgraded from Underweight to Equal Weight at Morgan Stanley and raised tgt to $69 from $57.
  • In Autos: Ford (F) Q4 revenue of $46B was down from $44B y/y, but well above the $40B estimates and announces a regular first quarter dividend of 15 cents per share and supplemental dividend of 18 cents/share and issued better-than-expected 2024 guidance. In used cars (CVNA, KMX), the Manheim Wholesale used-vehicle prices were unchanged in January compared to December, but down 9.2% from a year ago. In Ride Hailing: UBER Q4 results handily topped consensus ($0.66/$9.9B vs. est. $0.17/$9.76b) as bookings grew 22% y/y to $37.6B and forecasts Q1 gross bookings $37B-$38.5B vs. est. $37.26B; Q4 Ebitda of $1.3B tops $1.26B est.; LYFT announced new driver features for 2024, including a new rate floor, with drivers earning at least 70% of fares per week.
  • In Restaurants: CMG hits new record highs on earnings and revenue beat (+17% y/y) as Comparable sales rose 8.4%, beating expectations of a 7.1% increase and guided 2024 comparable sales climb in the mid-single digit range and plans to open 285 to 315 new restaurants. YUMC shares jump as Q4 EPS $0.23 topped est. $0.16 on better revs $2.49B vs. est. $2.41B as total system sales grew 21% y/y, but YUM shares slide as Q4 sales 42.36B misses the $21B estimate and global comps rose a less-than-expected 3% vs. est. 3.7% citing fewer orders at Taco Bell, KFC, and Pizza Hut chains. In earnings preview, Wedbush said they favor TXRH and BJRI into results after checks, as expects another quarter of transaction-led upside at TXRH.



  • AZEK +10%; Q1 beat on revs and along with upside Q2 guide drive FY guide raise; Q1 adj EPS $0.10 vs est. $0.05 on sales $240.444Mm vs est. $233Mm, adj EBITDA $55.7Mm vs est. $47.1Mm (and better guide).
  • CMG +8%; hits new all-time highs after Q4 results included EPS, comp store sales growth, and store-level margins that exceeded expectations.
  • EMR +10%; after raised its FY sales and earnings outlook after it reported higher sales in Q1.
  • ENPH +15%; after reported 4Q results and introduced 1Q guidance below expectations; however, management emphasized it believes 1Q, with low seasonal demand, could be the trough.
  • FTNT +2%; posted a Q4 beat on billings and EPS, but only in line on revenue and a miss on product revenue; the billings beat meaningfully by $237M/15%—a strong improvement vs. the large misses the prior two quarters while 1Q revenue and billings were guided below, driven by a ~$60M guide below on product revenue.
  • RBLX +14%; forecasts year rev $3.3B-$3.4B, est. $3.78B after beat analyst estimates for Q4 and sees current quarter to generate bookings of $925M vs. est. $903M and FY 2024 bookings of $4.21B topping the $4.06B estimate.
  • RGNX +8%; as announced the completion of enrollment in cohort 2 and additional positive interim data in AFFINITY DUCHENNE® trial.
  • SONO +16%; Q1 adj EPS $0.84 vs est. $0.40 on revs $612.869Mm vs est. $587.2Mm, gr mgn 46.1%, adj EBITDA $115.2Mm vs est. $101.58Mm; FY24 guide unchanged.



  • AMGN -3%; reported top-line and bottom-line beats with FY24 revenue and non-GAAP EPS guidance ranges of $32.4-33.8B and $18.90-20.30, respectively, and inclusive of Horizon assets (downgraded to Market Perform at Leerink).
  • BABA -5%; posted lackluster Q3 sales growth and a plunge in profit after booked more than $3 billion in impairments linked to its Sun Art retailer business and its Youku video platform; results missed estimates.
  • ELF -3%; hits record highs and reverses lower despite raises FY24 sales forecast to $980M-$990M from prior $896M-$906M view and sees FY24 adj net income between $164M-$166M from prior $144M-$146M.
  • FUBO -24%; following WBD, FOXA, DIS headlines on sports streaming venture.
  • KREF -15%; shares tumbled after cutting dividend yesterday, while BXMT declined as sympathy play.
  • MLNK -12%; after 6.9M share Spot Secondary priced at $19.00.
  • MRCY -10%; as Q4 adj. EPS loss of ($0.42) and adj. EBITDA of ($21M) compared to consensus of $0.07 and $23M, respectively while revenue was also down (14%) YoY and revenue guidance was reduced by $150M at the midpoint.
  • NYCB -10%; credit rating was cut by Moody’s by two notches to junk; Moody’s cited “financial, risk-management and governance challenges” for NYCB. In research, NYCB was downgraded at Both JP morgan and Bank America.
  • SNAP -30%; reported in-line 4Q23 results, with revenue slightly below consensus and EBITDA ~ $54M above the high end of guidance, while 1Q24 revenue guidance was roughly in-line with Street expectations (+13% y/y at midpoint), but adjusted EBITDA margins were guided below (-7% at midpoint vs. Street -2%).
  • TGI –13%; after lowering its FY24 sales view to $1.17B-$1.20B from the prior $1.43B-$1.47B and below consensus estimate $1.46B after swinging to a Q3 loss citing industry-wide supply-chain issues.
  • VFC -13%; after Q3 results miss, as debt repayment and inventory management were highlights, but weak North Face trends were particularly disappointing according to Piper.


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.