Morning Preview: April 18, 2024
Early Look
Thursday, April 18, 2024
Futures |
Up/Down |
% |
Last |
Dow |
104.00 |
0.27% |
38,094 |
S&P 500 |
14.25 |
0.28% |
5,076 |
Nasdaq |
56.50 |
0.32% |
17,715 |
U.S. stocks pointing to a higher open, with S&P futures rising overnight behind strength in technology after TSMC delivered a better-than-projected revenue outlook boosted semis. U.S. stocks stumbled on Wednesday, as S&P futures (Spuz) declined for a 4th straight session, its 1st 4-day losing streak since the beginning of January 12/28-1/4 amid weakness in technology (semis), transports (truckers), and financials (banks/insurance). Major averages remain below short-term technical support levels following this recent pullback on rising yields and lower Fed rate cut expectations. A busy morning of data with the Philly Fed business survey, weekly jobless claims, and existing home sales in addition to several Fed speakers on tap. In Asian markets, The Nikkei Index gained 117 points to 38,079, the Shanghai Index edged higher 2 points to 3,074, and the Hang Seng Index gained 134 points to 16,385. In Europe, the German DAX is up 11 points to 17,781, while the FTSE 100 is up 18 points to 7,866.
Market Closing Prices Yesterday
- The S&P 500 Index slumped -29.20 points, or 0.58%, to 5,022.21.
- The Dow Jones Industrial Average fell -45.66 points, or 0.12%, to 37,753.31.
- The Nasdaq Composite dropped -181.88 points, or 1.15%, to 15,683.37.
- The Russell 2000 Index declined -19.53 points, or 0.99% to 1,947.95.
Economic Calendar for Today
- 8:30 AM ET Weekly Jobless Claims…est. 215K
- 8:30 AM ET Continuing Claims…est. 1.81M
- 8:30 AM ET Philly Fed Business Index for April…est. 2.3 (prior 3.2)
- 9:15 AM ET Fed’s Bowman Speaks at SIFMA Roundtable
- 9:15 AM ET Fed’s Williams Participates in Moderated Discussion
- 10:00 AM ET Existing Home Sales M/M for March…est. 4.2M
- 10:00 AM ET Leading Index M/M for March…est. (-0.1%)
- 10:30 AM ET Weekly EIA Natural Gas Inventory Data
- 11:00 AM ET Fed’s Bostic Speaks in Fireside Chat on Economy
- 5:45 PM ET Fed’s Bostic Chats About Economy, Monetary Policy
Earnings Calendar:
- Earnings Before the Open: ALK ALLY APOG BHLB BMI BX CMA DHI ELV FOR GPC HOMB IRDM KEY MAN MMC SNA STBA TCBI TSM
- Earnings After the Close: GBCI INDB ISRG MCB NFLX OCFC PINE PPG SBFG WAL
Other Key Events:
- American Academy of Neurology (AAN), 4/13-/18 in Denver, CO
Macro |
Up/Down |
Last |
Nymex |
-0.95 |
81.74 |
Brent |
-0.98 |
86.31 |
Gold |
9.70 |
2,398.10 |
EUR/USD |
-0.0000 |
1.0671 |
JPY/USD |
0.04 |
154.43 |
10-Year Note |
-0.012 |
4.573% |
Sector News Breakdown
Consumer
- Alaska Air Group (ALK) reported Q1 adj EPS loss (-$0.92) vs. est. loss (-$1.05); forecast current-quarter profit above estimates driven by expectations of a strong summer season as travel demand soars; sees Q2 EPS $2.20-$2.40 vs. est. $2.12.
- Las Vegas Sands (LVS) Q1 adj EPS $0.75 vs est. $0.62, adj property EBITDA $1.21B vs est. $1.137B on revs $2.959B vs est. $2.94B; repurchased $450Mm common stock during qtr.
- Monarch Casino (MCRI) Q1 EPS $0.93 vs est. $0.96, adj EBITDA $38.548Mm vs est. $38.65Mm on revs $121.657Mm vs est. $122.32Mm.
Energy, Industrials and Materials
- Alcoa Inc. (AA) Q1 adj EPS loss (-$2.81) vs. est. loss (-$0.64); Q1 sales $2.60B vs. est. $2.55B and adj EBITDA $132M vs. est. $113M (down from $240M y/y); initiated process for potential sale of San Cipri�n complex; expects 2024 total alumina segment production and shipments to remain unchanged from prior projection; for Q1, aluminum production 542,000 mt, and shipments 634,000 metric tons.
- CSX Corp. (CSX) Q1 EPS $0.46 vs. est. $0.45; Q1 revs fell -1% y/y to $3.68B vs. est. $3.66B; announces total volume of 1.53 mln units for quarter was 3% higher compared to Q1 2023; said lower fuel surcharge, decline in other rev, weaker trucking rev, reduced export coal prices offset gains in merchandise pricing and higher intermodal and coal volumes, rev was flat sequentially.
- Boeing Co (BA) shares slip as its safety culture, manufacturing quality, were scrutinized on Wednesday in two U.S. Senate hearings, following a January mid-air panel blowout on a near-new 737 MAX 9.
- Kinder Morgan (KMI) Q1 adj EPS $0.34 vs est. $0.34 on revs $3.842B vs est. $4.355B; backlog $3.3B at qtr end; sees Nat gas demand growing substantially between now and 2030; said met Q1 profit estimates, helped by higher volumes in its natural gas pipelines segment.
Financials
- Bank OZK (OZK) Q1 EPS $1.51 vs est. $1.46 on NII $376.934Mm vs est. $368.07Mm, credit loss provision $42.923Mm, tangible BV per common shr $37.62.
- Banner Corp. (BANR) Q1 adj EPS $1.22 vs est. $1.13 on NII $132.959Mm vs est. $135.39Mm.
- Brandywine Realty (BDN) Q1 FFO/shr $0.24 vs est. $0.24; core portfolio 87.7% occupied and 89% leased; guides FY FFO/shr $0.90-0.97 vs est. $0.93.
- Cohen & Steers (CNS) Q1 adj EPS $0.67 vs. est. $0.71; Q1 revs $119.2M vs. $125.3M y/y; reports Q1 ending AUM of $83.1B and average AUM of $77.0B.
- Discover Financial (DFS) Q1 EPS $1.10 vs. est. $2.95; Q1 revs rose 13% y/y to $4.21B vs. est. $4.07B; Q1 Net interest margin 11% vs. 11% q/q, and net interest income $3.49B, +11% y/y; Q1 Provision for credit losses $1.50B, +36% y/y; sees 2024 NIM of 10.7%-11.0% and sees 2024 loan growth up low single digits.
- Equifax (EFX) Q1 adj EPS $1.50 vs est. $1.44 on revs $1.389B vs est. $1.4B; guides Q2 revs $1.41-1.43B vs est. $1.44B, adj EPS $1.65-1.75 vs est. $1.87; sees FY revs $5.67-5.77B vs est. $5.783B, and adjusted EPS $7.20-7.50 vs est. $7.64.
- KeyCorp (KEY) Q1 EPS $0.20 vs. est. $0.22; Q1 revs $1.53B vs. est. $1.51B; Net interest income FTE $886M, EST $888.1M; NIM on taxable-equivalent basis 2.02%, EST 2.1%.
- Rexford Industrial (REXR) Q1 core FFO/shr $0.58 vs est. $0.57, consolidated portfolio NOI $163.5Mm, same-property portfolio NOI +5.5%; guides FY core FFO/shr $2.31-2.34 vs prior $2.27-2.30 and est. $2.36.
- SL Green Realty (SLG) Q1 FFO/shr $3.07 incl gains vs est. $2.16; raises FY FFO/shr guide to $7.35-7.65 to reflect gains on discounted debt extinguishment vs est. $5.92.
Healthcare
- Biohaven (BHVN) announces a $200M common share offering.
- Elevance Health (ELV) Q1 adj EPS $10.64 vs. est. $10.53; Q1 revenue $42.3B vs. est. $42.63B; raises FY24 adjusted EPS view to greater than $37.20 per share vs. prior view of EPS ‘greater than’ $37.10 (est. $37.15); medical loss ratio, the percentage of claims paid to premiums collected, was 85.6% for the first quarter.
Technology, Media & Telecom
- Taiwan Semiconductor Manufacturing (TSM) Q1 EPS $1.38 vs. est. $1.30 on sales of $18.87B vs. est. $18.31B and compared to $1.30/$16.62B y/y; sees Q2 revenue of $19.6B-$20.4B vs. est. $19.44B; said AI servers are expected to account for a low-teens percentage of its 2024 revenue, more than double from last year; said it expects yearly revenue to rise in the low- to mid-20% range in U.S. dollar terms; still sees capex budget for FY as $28b to $32b; capex for 1Q stood at $5.77b, a rise from $5.24b in 4Q of 2023.
- Amazon’s (AMZN) Prime membership program subscribers rose to 180 mln in the March quarter, from 167 mln a year ago, according to Consumer Intelligence Research Partners (CIPR); 75% of U.S. Amazon customers are now Prime customers vs 70%-71% in past two years, per the CIRP data shared with Reuters.
- Crown Castle (CCI) Q1 AFFO per share $1.72 vs. est. $1.71 and revs $1.64B vs. est. $1.63B; maintains FY FFO outlook of $2.95B-$3.00B (est. $2.98B) and FY site rental revenue of $6.35B-$6.39B (est. $6.4B); Q1 Site rental revenues declined 2%, or $36M y/y.
- Micron (MU) is on track to receive over $6 bln in grants from U.S. Commerce Department to help pay for domestic chip factory projects, according to Bloomberg News. To reduce reliance on China and Taiwan and boost domestic production, the White House has announced several funding initiatives recently.
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.