Early Look

Tuesday, February 20, 2024

Futures	Up/Down	%	Last
Dow	-130.00	0.34%	38,567
S&P 500	-18.25	0.36%	5,001
Nasdaq	-97.50	0.55%	17,647

 

 

Stock futures are pointing to a lower open, with the S&P (Spuz) -0.4% trading just below 5,000 (overnight low 4,994.25 and high 5,029.50) after snapping its 5-week winning streak last Friday along with the Nasdaq, extending losses. For the week, the S&P 500 fell -0.42%, the Nasdaq declined -1.34%, and the Dow fell -0.11% as investors return from the 3-day President’s holiday weekend. Another busy week of earnings is coming up with retail behemoths Wal-Mart and Home Depot reporting results this morning. Home Depot Inc. reported a fifth consecutive quarterly decline in revenue, sending shares lower initially. Last week Headline PPI came out at 0.9% YoY vs expectations for a 0.6% rise and 1.0% in December. Core PPI ex food and energy likewise beat expectations rising 2.0% vs 1.6% consensus and 1.7% previous the two data points weighed on sentiment, raising prospects of less aggressive rate cuts by the Fed…though Fed speakers remain dovish. In Asian markets, The Nikkei Index declined -106 points to 38,363, the Shanghai Index reopened after its Lunar holiday week to rise 12 points at 2,922, and the Hang Seng Index gained 91 points to 16,247. In Europe, the German DAX is down -32 points to 17,058, while the FTSE 100 is up 8 points to 7,737.

 

• The Dow Jones Industrial Average fell -145.13 points, or 0.37%, to 38,627.99.
• The Nasdaq Composite slumped -130.52 points, or 0.82%, to 15,775.65.
• The Russell 2000 Index declined -28.74 points, or 1.39% to 2,032.72.

• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 4:30 PM ET                   API Weekly Inventory Data

• Earnings After the Close: ANDE AROX BKD BXC BYON CE CHK CSGP CSR CVI CWK CYH CZR ENLC ENVX ESI ESRT FANG FLS GMED GPK HALO IFF INST JBT KAR KEYS LAND LZB MATX MAX MED MTDR MTTR NHI O PANW PSA QUAD RNG RWT SPT SUI TDOC TOL TRTX TRUE UAN UFPI WGS WK WSC WTTR

 

 

Macro	Up/Down	Last
Nymex	-0.32	78.87
Brent	-0.62	82.94
Gold	14.00	2,038.10
EUR/USD	0.0021	1.0797
JPY/USD	0.10	150.21
10-Year Note	-0.018	4.277%

 

• China cuts key rate for mortgages. Central bank trims 5-year loan prime rate (LPR), reference rate for banks, from 4.2% to 3.95%. Last reduced in June. Movie is seen as an effort to encourage home buying as property market struggles.
• The PBOC held its 1-year Medium-term Lending Facility (MLF) rate unchanged at 2.50%.

• Jeld-Wen (JELD) Q4 adj EPS $0.37 vs. est. $0.27; Q4 revs $1.021B vs. est. $1.04B.
• Masonite (DOOR) Q4 adj EPS $1.29 vs. est. $1.31; Q4 revs $661M vs. est. $662.25M.
• Torrid (CURV) files to sell 90M shares of common stock for holders.
• TreeHouse (THS) downgraded to Hold from Buy at Truist.

• Allete (ALE) Q4 EPS $0.89 vs. est. $0.97; Q4 revs $402.7M vs. est. $425.3M; updated its five-year capital expenditure plan to $4.3B, which is a $1B increase from its previous five-year plan; sees EPS $3.60-$3.90 vs. est. $4.08.
• CenterPoint Energy (CNP) announces sale of its Louisiana and Mississippi natural gas assets to Bernhard Capital partners for $1.2B; the sale will not change company’s targeted utility non-Gaap EPS growth rate of 8% in 2024.
• Intuitive Machines (LUNR) said its Machines’ IM-1 is scheduled to make a soft landing on the moon’s south pole on Feb. 22, first descent on the moon by a private company (not the stock has gained nearly 50% since a private moon lander built by co was launched from Florida on Feb. 15).
• Transocean (RIG) Q4 adj EPS loss (-$0.09) vs. est. loss (-$0.23); Q4 revs $741M vs. est. $759.03M.

• Barclays (BCS) reported a Q4 net loss of �111 million ($139.8 million) as the British lender announced an extensive strategic overhaul; announced a huge operational restructure, including substantial cost cuts, asset sales and a reorganization of its business divisions.
• DigitalBridge Group (DBRG) mentioned positively in Barron’s saying valued as an alternative-asset manager-instead of a data-center real estate investment trust, the company hopes to reach the lofty stock prices enjoyed by other alt managers like Blackstone (BX) and TPG.
• Truist Financial (TFC) announced that it has reached a definitive agreement to sell its remaining stake in Truist Insurance Holdings, a subsidiary of Truist and the fifth largest insurance brokerage in the United States, to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice, or CD&R. for $15.5B.

• HealthStream (HSTM) Q4 EPS $0.15 vs. est. $0.10; Q4 revs $70.6M vs. est. $71.79M; sees FY24 revenue $292M-$296M, vs. consensus $296.97M and sees FY24 adjusted EBITDA $64.5M-$67.5M.
• Iovance (IOVA) said late Friday the FDA granted an accelerated approval for its cell therapy for adult patients with advanced melanoma Lifileucel, branded as Amtagvi, which will be sold in the U.S. at a list price of $515,000.
• Iovance (IOVA) prices an underwritten offering of 23M shares of its common stock at an offering price of $9.15 per share.
• Medtronic (MDT) Q3 EPS $1.30 vs. est. $1.26; Q3 revs $8.09B vs. est. $7.95B; raises FY24 adj Ebitda guidance, aided by strong demand for its heart and diabetes devices; added that it decided to exit its ventilator product line, and retain and combine the remaining PMRI businesses into one business unit.

• The U.S. Department of Commerce announced $1.5B in planned direct funding for GlobalFoundries (GFS) as part of the U.S. CHIPS and Science Act. The funding, outlined in a non-binding preliminary agreement, would flow to three separate projects.
• SoftBank’s Masayoshi Son is reportedly seeking $100B to build a new AI chip venture, Bloomberg reported. Code-named Izanagi, the new venture would collaborate with Arm (ARM), the chip design company that SoftBank spun out as a public company last year.
• Nintendo (NTDOY) shares fell after Bloomberg reported that the Japanese company told some of its game-publishing partners that the successor to the Switch console will not be released until March 2025 at the earliest. It had been expected in late 2024.

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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.