Morning Preview: March 17, 2023

Early Look

Friday, March 17, 2023









S&P 500










U.S. futures are quiet ahead of todays’ “triple witching” options expiration Friday after shares soared broadly on Thursday, closing at their highs with gains of almost 2.5% for the Nasdaq and more than 1% for both the S&P 500 and the Dow industrials. Stocks were buoyed on Thursday after easing banking pressure concerns as a group 11 big U.S. banks made deposits of $30 billion into regional bank First Republic (FRC) in a rescue package to boost its liquidity, while Credit Suisse was forced to borrow up to $54 billion from Switzerland’s central bank to shore up liquidity and restore investor confidence. Will the action continue again today? Is there more in the tank to end the week on this St. Patrick’s Day? Coming into today the Nasdaq is up 5% this week, the S&P +2.5% and the Dow 1%. Financials ended higher yesterday, but it has been recent strength in technology (+15% YTD) and Communications (+15% YTD) that has propelled the S&P 500 (SPX) back above its respective 100-day MA (3,953) and 200-day MA (3,937). Bitcoin on track for over 30% weekly advance, jumping another 7% this morning to $26,600, its highest levels since last June. In Asian markets, The Nikkei Index jumped 323 points to 27,333, the Shanghai Index rose 23 points to 3,250, and the Hang Seng Index advanced 314 points to 19,518. In Europe, the German DAX is up about 60 points to 15,031, while the FTSE 100 gains 45 points to 7,454.


Market Closing Prices Yesterday

·     The S&P 500 Index jumped 68.35 points, or 1.76%, to 3,960.28.

·     The Dow Jones Industrial Average rose 371.98 points, or 1.17%, to 32,246.55.

·     The Nasdaq Composite gained 283.23 points, or 2.48%, to 11,717.28.

·     The Russell 2000 Index advanced 25.29 points, or 1.45% to 1,771.24.


Economic Calendar for Today

·     9:15 AM ET           Industrial Production M/M for February

·     9:15 AM ET           Capacity Utilization for February

·     10:00 AM ET         Leading Index Change M/M for February

·     10:00 AM ET         University of Michigan Confidence, March-P

·     10:00 AM ET         UoM Inflation Expectations for 1 and 5-year

·     1:00 PM ET            Baker Hughes Weekly rig count data





















10-Year Note





World News

·     S&P affirms rating at AA+ for the U.S., stable Outlook; sees US GDP slowing below 1% in 2023 and averaging 1.6% over the next 3 years; sees economy growing at or near 2% in the 2 or 3 years after this year.

·     China’s PBOC announced it will cut the RRR ratio by 25bps, effective March 27; the Central bank said that it would follow a prudent and forceful monetary policy, but that it will not flood the market with liquidity.


Sector News Breakdown


·     Groupon Inc. (GRPN) Q4 adj EPS loss (-$0.38) vs. est. loss (-$0.40); Q4 revs $148M vs. est. $161.55M with CEO saying, “we are in the midst of executing a transformation strategy that we believe will allow Groupon to unlock its full potential.” on track to remove $250 million of annualized costs by the end of 2023; expanded and accelerated the second phase of our restructuring plan; expect to reduce our current cost structure by an additional $100 million.

·     PLBY Group (PLBY) 4Q EPS ($0.22) vs est. ($0.17) on revs $68.5Mm vs est. $75.6Mm; says new plan better aligns our achievable goals with our current investor base, who value the efficient use of capital, higher margins, and ample runway to execute our business priorities using less financial leverage.

·     Purple Innovation (PRPL) Q4 adj EPS loss (-$0.10) vs. est. loss (-$0.06); Q4 revs fell -22.2% y/y to $145.1M vs. est. $143.48M; sees Q1 revs $105M below consensus $137.13M and adj adjusted EBITDA ($9.5M); sees FY23 revs $590M-$615M vs. est. $589.37M and adj EBITDA $13M-$17M.

·     Trager Inc. (COOK) 4Q adj EBITDA $7.1M vs est. ($3.3M) on revs $138.1Mm vs est. $118.4M; sees 1Q revs $145-155M vs est. $191.6M and adj EBITDA $16-20M vs est. $24.7M; guides FY revs $560-590M vs est. $648.3M and adj EBITDA $45-55M vs est. $55.6M.

·     Tupperware Brands (TUP) delays filing of 2022 form 10-K; for fiscal years 2020 to 2022, in aggregate, co believes that adjusted income from continuing operations previously understated.

·     Leafly (LFLY) 4Q adj EBITDA ($4.2)Mm vs est. ($7.5)Mm on revs $12.1Mm vs est. $12.1Mm; guides 1Q revs $11.0-11.3Mm vs est. $12.1Mm and adj EBITDA ($4.3)Mm-($4.0)Mm vs est. ($3.4)Mm.


Energy, Industrials and Materials

·     FedEx (FDX) Q3 EPS $3.41 vs. est. $2.73; Q3 revs $22.2B vs. est. $22.74B; raises FY23 EPS view before-MTM ex-costs to $14.60-$15.20 from $13-$14 (est. $13.56), while backs FY23 capex view of $5.9B; continued to move with urgency to improve efficiency, and our cost actions are taking hold; said Q3 results were negatively affected by continued demand weakness, particularly at FedEx express; Q3 operating income was negatively affected by effects of global inflation.

·     U.S. Steel (X) guides Q1 adj EPS $0.58-$0.63 vs. est. $0.41; guides Q1 adj Ebitda $375M vs. est. $304.8M; Q1 Flat-rolled segment’s adjusted EBITDA is expected to be lower than the fourth quarter; Mini Mill segment is expected to return to positive EBITDA in the first quarter.



·     First Republic Bank (FRC) board suspended its dividend last night, sending shares lower after rising about 10% Thursday after 11 major lenders deposited $30 billion in First Republic in an effort to stop a spreading financial panic following two bank failures.

·     Fed discount window borrowing soars to all-time high; banks borrow $164.8b from fed facilities in week To March 15



·     BioLife Solutions (BLFS) 4Q adj EBITDA $1.7Mm vs est. $2.0Mm on revs $44.3Mm vs est. $43.3Mm, adj gr mgn 32%; guides FY revs $188-202Mm vs est. $195.7Mm with approx 45% 1H, 55% 2H; says confident will achieve 4Q24 run rate aspirational goal of $250Mm in revs, 50bps adj gr mgn and 30 points of adj EBITDA.

·     Cutera (CUTR) said it no longer expects to file form 10-k by March 16; will file form 10-k as soon as practicable; to disclose material weaknesses in internal control.

·     Enzo Biochem, Inc. (ENZ) announced that it has entered into an agreement for LabCorp (LH) to acquire the assets of Enzo’s Clinical Laboratory division.

·     GoHealth (GOCO) Q4 EPS loss (-$7.00) vs ($20.22) last year; Q4 revs $69.38M; sees FY total net revenue of $750M-$850M and Adjusted EBITDA of $100M-$140M.

·     Jounce Therapeutics (JNCE) announces results from pre-planned data review of INNATE Phase 2 trial of JTX-8064 and Pimivalimab demonstrating deep and durable responses in platinum resistant ovarian cancer.

·     Sanofi SA (SNY) said it would cut the price of some of its insulin products by as much as 78% for the list-price reduction on Lantus, the company’s most widely used insulin in the U.S., and a 70% cut on its Apidra product starting in January 2024.

·     Sarepta (SRPTA) shares fall as announced that at its late cycle meeting for the SRP-9001 biologics license application, the U.S. FDA’s Office of Therapeutics has determined that an advisory committee meeting will be held for SRP-9001 in advance of May 29, 2023 regulatory action date.

·     Veru (VERU) files $200M mixed securities shelf.


Technology, Media & Telecom

·     Baidu (BIDU) said it had won a permit to provide a fully driverless ride-hailing service in the Chinese capital of Beijing.

·     Blend Labs (BLND) 4Q EPS ($0.35) vs est. ($0.16) on revs $42.8Mm vs est. $44.9Mm; guides 1Q revs $33-35Mm vs est. $46.2Mm.

·     RingCentral (RNG) downgraded to Perform from Outperform at Oppenheimer.

·     Warner Bros Discovery (WBD) upgraded to Overweight from Equal Weight at Wells Fargo.


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.