Early Look

Wednesday, March 27, 2024

U.S. futures are pointing higher, trying to snap its 2^nd 3-day losing streak this month, though losses have not been deep as major averages remain less that 1% away from their all-time highs into key GDP data tomorrow and PCE inflation data on Friday (the Fed’s preferred measure of inflation). The Japanese yen touched its lowest level versus the dollar since 1990, fueling intervention bets, while inventory stockpiling weighs on oil. In Asian markets, The Nikkei Index jumped 364 points to 40,762, the Shanghai Index fell -1.25% or -38 points to move back under 3K and settle at 2,993, and the Hang Seng Index dropped -225 points to 16,392. In Europe, the German DAX is up 70 points to 18,454, while the FTSE 100 is down -23 points to 7,907. U.S. markets tumbled in the final hour of trading on Tuesday, erasing earlier gains led by a sell-off among the biggest names in tech and chips in a late day profit taking bout. A quiet day of earnings and economic data into tomorrow’s flood of data, while the news of the Baltimore bridge collapse yesterday after a shipping vessel crashed into it, continues to raise concerns about supply chain concerns for autos, food, clothing, etc.

• The Dow Jones Industrial Average fell -31.31 points, or 0.08%, to 39,282.33.
• The Nasdaq Composite slipped -68.77 points, or 0.42%, to 16,315.70.
• The Russell 2000 Index declined -3.84 points, or 0.19% to 2,070.00.

• 10:30 AM ET                Weekly DOE Inventory Data
• 1:00 PM ET                   U.S. Treasury to sell $43B 7-year notes.

• Earnings After the Close: AQMS BRZE CXM EAST FC FUL JEF KINS MDAI MLKN PLBY RUM SSKN USIO VRNT

• Optical Fiber Communication Conference, 3/24-3/26, in San Diego, CA
• JP Morgan 13th Annual NAPA Valley Biotech Forum, 3/26-3/28, in San Francisco, CA

• The Swedish krona is flat having pared losses seen after the Riksbank left its benchmark interest rate unchanged but opened the door to a cut as soon as May.

• Hennes & Mauritz (HNNMY) posted forecast-beating earnings as well-received spring collections pushed sales higher during February; said it is working through a cost and efficiency program to save 2 billion Swedish kronor ($188.8 million) a year; firm said their top priority is to strengthen sales, and target of a 10% operating margin for full-year 2024 thus remains in place.
• Nio (NIO) cut its Q1 forecast for deliveries saying they now expect to deliver around 30,000 vehicles in the first quarter, compared with its prior forecast of 31,000 to 33,000.

• Paysign (PAYS) Q4 EPS $0.10 vs. est. $0.02; Q4 revs $13.7M vs. est. $12.62M; said that it expects revenue of $54.5M-$56.7M above consensus of $52.2M.
• Robinhood Markets (HOOD) launched a new credit card only for its Gold customers for now but expected to be rolled out broadly later this year; gold Card to have no annual fee, no foreign transaction fees and have cash back offers via reward points and bookings on co’s travel portal.

• Moderna (MRNA) enters into funding agreement with Blackstone’s (BX) life science investment platform for $750 mln to develop mRNA flu vaccines.
• Roivant Sciences Ltd (ROIV) will replace Sunrun Inc. (RUN) in the S&P MidCap 400, and Sunrun will replace PGT Innovations Inc. (PGTI) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, April 1
• Stoke Therapeutics (STOK) announces a $75M common stock offering.

• nCino (NCNO) Q4 adj EPS $0.21 vs est. $0.12 on revs $123.7Mm vs est. $124.62Mm, adj gr mgn 66%, adj op mgn 16%; sees Q1 revs $126-127Mm vs est. $128.85Mm and adj EPS $0.13-0.14 vs est. $0.12; sees FY revs $538.5-544.5Mm vs est. $545.73Mm and adj EPS $0.60-0.64 vs est. $0.56.
• Ouster Inc. (OUST) Q4 EPS ($0.95) vs est. ($0.83) on revs $24.444Mm vs est. $24.06Mm, adj gr mgn 35%; sees Q1 revs $25-26Mm vs est. $25.01Mm.
• Progress Software (PRGS) Q1 adj EPS $1.25 vs est. $1.14 on revs $184.69Mm vs est. $181.91Mm; guides Q2 revs $166-170Mm vs est. $181.48Mm and adj EPS $0.93-0.97 vs est. $1.15; sees FY revs $722-732Mm vs est. $728.39Mm and adj EPS $4.65-4.75 vs est. $4.64.
• Velo3D, Inc. (VLD) Q4 adj EPS ($0.29) on revs $1.8Mm; guides FY24 revs $80-95Mm vs. est. $121.3Mm, gross margin 20-30% (sees Q4 about 30%).