Mid-Morning Look

Friday, February 16, 2024

Index	Up/Down	%	Last
DJ Industrials	-82.80	0.22%	38,689
S&P 500	-6.82	0.14%	5,022
Nasdaq	-57.90	0.36%	15,848
Russell 2000	-18.65	0.90%	2,042

 

 

Stocks dipped pre-mkt after the January producer price index (PPI) came in “hotter” than expected for both headline and core inflation, similar to the consumer price index (CPI) report on Tuesday. US markets opened lower but have since pared losses after surging the last two trading days as the S&P 500 closed at a record high on Thursday. Will markets disregard this higher inflation report as well, with many on CNBC calling it a “one-off” month for data and still thinking the Fed will cut rates in coming months. Treasury markets telling a different story as yields popped to highs following the PPI, with the 10-yr +8.5bps to 4.325% (has since pared gains to 4.29%) and the shorter term 2-yr yield +13bps to 4.70%. Materials (XLB) among early sector leaders +0.9% along with healthcare (XLV) +0.5% while Communications (XLC) -1.25% and REITs (XLRE) is down -0.75%. Outside of the hotter PPI report, Housing Starts for January showed a sharp deceleration from the prior month.

• U.S. housing starts for January fell nearly- 15% vs. Dec +3.3% at 1.331M unit rate (below consensus 1.460M) and vs Dec 1.562M units as single-family starts -4.7% to 1.004M unit rate; multifamily -35.6% to 327,000-unit rate. January housing permits fell -1.5% to 1.47M (vs. consensus 1.509M) vs Dec +1.8% at 1.493M unit rate. January single-family permits +1.6% to 1.015M unit rate; multifamily -7.9% to 455,000-unit rate.

 

 

Macro	Up/Down	Last
WTI Crude	0.07	78.10
Brent	0.04	82.91
Gold	5.50	2,020.4
EUR/USD	-0.0002	1.0769
JPY/USD	0.31	150.23
10-Year Note	0.059	4.299%

 

 

• COIN +14%; after swinging to a profit in Q4 ($273.4M vs. loss of -$557M y/y) helped by higher interest income earned on stablecoin reserves and other products; adj EBITDA of $305M materially outperformed JMP’s $161M estimate and consensus of $252M.
• IR +4%; reported better Q4 $0.86/$1.82BB vs. est. $0.77/$1.78B; as guides FY24 revenue growth of 5%- 7%, or $7.22B-$7.36B vs. est. $7.21B and FY adj EBITDA of $1.92B-$1.98B, up 7% to 11% over the previous year vs. est. $1.89B.
• KNTE +10%; to be acquired by XOMA for a base cash price of $2.3352 a share as well as an additional cash amount of up to 25.27 cents a share, which could bring the price as high as $2.5879 a share. http://tinyurl.com/4tczswks
• SRPT +10%; said the FDA accepted its follow-on application seeking full approval and expanded use of Elevidys, a gene therapy for Duchenne muscular dystrophy. The agency’s decision date is June 21. Said the FDA will not hold a meeting of its outside panel of experts to review the gene therapy to treat Duchenne muscular dystrophy (DMD).
• TOST +16%; headline EPS/rev results were solid, with better-than-expected GPV; announces restructuring plan, with layoffs impacting ~550 employees; announces share repurchase program of up to $250M.
• TTD +16%; on stronger than expected Q4 results and Q124 guide, with strength driven by CTV given its rapid adoption in the US and Int’l, fueled by growing inventory from ad-supported streaming services.

 

• BE -23%; as reported CFO departure, Q4 results below expectations, while FY24 operating margin guidance aligned expectations, the revenue outlook was well below consensus.
• DASH -10%; reported both revenue and EBITDA 2% above consensus, though 2024 GOV guidance calls for a deceleration of growth through the year and EBITDA guidance for 1Q24 and 2024 was below elevated expectations.
• DBX -19%; reported a sequential decline in ARR and the number of paying users along with mixed 4Q23 results that included non-GAAP EPS of $0.50/$635M vs. est. $0.48/$631.1M, up 6% y/y, down from 7% growth last quarter; ARR of $2.52B below consensus $2.57B and up 0% y/y and down slightly sequentially.
• GEHC -2%; 13M share Spot Secondary priced at $82.25 after GE’s stake reduced from 13.5% to 10.2%, or 46.6M shares.
• ROKU -21%; shares tumbled on a larger-than-expected loss of (-$0.55), said ARPU was down 4% to $39.92 in Q4 while guided Q1 revs to $850M vs. est. $834.1M.
• SPWR -11%; Guggenheim downgrades to Sell with price tgt of $1 following the company’s announcement of a rescue financing package saying with operating expenses being cut and cash preservation a focus, the firm doesn’t see how SunPower avoids losing market share in 2024.
• THS -14%; shares slumped on mixed Q4 as EPS beat/sales missed and guided FY sales $3.43B-43.5B, missing the consensus of $3.56B citing waning demand and supply chain problems.
• TRUP -22%; after results and said forecasts two material weaknesses in internal controls.

_________________________________________________________________

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.