>>> What to look at today - 28th of February 2024

Stocks in Asia fell as losses in China deepened, while US and European futures edged lower with focus shifting to a slew of growth and inflation data this week.   The New Zealand dollar slid 1% along with government bond yields after the Reserve Bank of New Zealand delivered less hawkish comments on inflation, citing how most measures of price expectations have fallen. The central bank held policy rates as expected by economists.  Equity benchmarks in Hong Kong slumped more than 1% as the budget report failed to lift sentiment. A jump in developer shares as the city scrapped property curbs wasn’t enough to offset declines across tech and financials. Chinese stocks fell after a recent rally took gauges to resistance levels, with traders looking to this week’s manufacturing report and a key political meeting in Beijing next week for momentum. 
Traders overall refrained from making big bets ahead of the US GDP and inflation data and a parade of central bank speakers. Investors are now contending with an erosion in expectations for how much the Federal Reserve will lower rates and an onslaught of new corporate issuance that has given yield-seeking investors ample alternatives. Treasury yields slipped in Asia.  Equity benchmarks fell slightly in Japan while those in South Korea jumped 1%.  Traders no longer expect the Fed to cut rates by more than 75 basis points in 2024, bringing their view in line with what policymakers have indicated as the likeliest outcome.  The global economy has a growing chance of pulling off a soft landing, finance chiefs said in a draft of the G-20’s closing statement at this week’s meeting in Brazil, citing faster-than-expected disinflation as one of the upside risks. In the corporate world, WuXi AppTec Co. has become the most-sold Chinese stock this year on fears of US sanctions. Shares of Chinese gaming company NetEase Inc. jumped in Hong Kong after its title was included in the latest list of approvals by Beijing.  In Japan, KFC Holdings surged to the highest since Oct. 1991 after a report that Mitsubishi Corp. may sell its entire stake in the company.  Elsewhere, oil fell after a two-day gain as signs of higher US inventories vied with expectations that OPEC+ will extend supply cuts. Iron ore resumed its slide, as investors remained undecided about the strength of China’s demand for steel ahead of the nation’s usual peak construction season. US After Hours BYND +75.8%, FLYW +18.3%, AMBA +11%, EBAY +3.5% higher on earnings; IAS -18.1%, LMND -17%, EB -15.7%, SAM -11.7%, URBN -11.2% lower on earnings.

Nikkei -0.08% Hang Seng -1.40 CSI -1.27% Shanghai -1.91% Shenzen -3.79%

Eur$ 1.0819 CNH 7.2164 CNY 7.1992 JPY 150.71 GBP 1.2650 CHF 0.8810 RUB 92.0360 TRY 31.1785 WTI$ 78.38 -0.62% Gold 2,029 -0.08% BTC 57,500 +1.35% ETH 3,270 +0.61%

S&P -0.09% Nasdaq -0.18% EuroStoxx -0.18% FTSE -0.01% Dax +0.18% SMI -0.07%

Macro :
- *OPEC+ TO MULL EXTENDING VOLUNTARY OIL OUTPUT CUTS INTO 2Q: RTRS
- *FED'S BOWMAN REPEATS NOT YET TIME TO BEGIN LOWERING RATES

Keep an eye on :
- ADYEN NA : Payments Firm Flywire Soars as Year Forecasts Beat
- AENA SM : Aena FY Net Income Beats Estimates Aena to Propose Gross Dividend of €7.66/Share
- AGS BB : Ageas FY Net Operating Profit EU1.17B Vs. EU1.31B Y/y
- AIR FP : Airbus to Sell up to 120 Helicopters to Saudi Company
- ALLFG NA : Brookfield, Euroclear in Early Talks to Buy Allfunds: Expansion
- ALLN SW : Allreal FY Ebit Beats Estimates
- AMS SM : Amadeus 4Q Adjusted Profit Beats Estimates (1)
- AMZN US : Warren Calls to Block Amazon from Operating Large Language Model
- AML LN : Aston Martin 4Q Adjusted Ebitda Beats Estimates
- AAPL US : Apple Shunning EVs, Shifting to AI Is Better for Long Run: React
- AAPL US : Apple and Hyundai-Kia pushing toward deal on Apple Car
- ASMI NA : ASMI 1Q Revenue Forecast Misses Estimates, Chip-Tool Maker ASM Issues Disappointing Outlook, Shares Plunge
- AG1 GY : AUTO1 Sees 2024 Units Sold 610,000 to 665,000
- AUSS NO : Austevoll Seafood FY Dividend per Share Beats Estimates
- BYND US : Beyond Meat guides on the call; sees Q1 revs below consensus
- BMW GY : BMW Eyes New Plant in Thailand to Make Batteries for EVs
- BOSN SW : Bossard FY Ebit Beats Estimates
- CO FP : Casino FY Trading Profit EU124M Vs. EU316M Y/y
- CCL LN : Norwegian Jumps as 1Q Outlook Shatters Estimates NCLH +20% CCL +8%
- CO FA FP : Coface FY Net Income Beats Estimates
- DEME BB : DEME Group FY Ebitda Beats Estimates
- DBK GY : Deutsche Bank’s Plan to Get Workers Back to Office Hits Roadbump
- EDP PL : EDP to Opt to Receive EDPR Shares Under Scrip Dividend Program
- EDPR PL : EDP Renovaveis FY Net Income Misses Estimates
- ELE SM : Endesa Cuts 2024 Ordinary Net Income Forecast
- FER SM : Ferrovial FY Net Income Beats Estimates, Ferrovial Results Overall In Line, Net Cash Strong: Street Wrap
- FTK GY : flatexDEGIRO 4Q Ebitda Beats Estimates
- FLU AV : Flughafen Wien FY Dividend per Share EU1.32 Vs. EU0.77 Y/y
- GLB ID : Glanbia Sees 2024 Adj. EPS in Constant Currency +5% to +8%
- HOLN SW : Holcim Sees 2024 Organic Sales at Least +4%, Est. +3.93%
- IBE SM : Selling plants to Mexico was not an easy task.-Iberdrola
- IDIA SW : Idorsia Enters Global R&D Pact With Viatris for $350m Upfront
- ITX SM : Urban Outfitters 4Q Adjusted EPS Misses Estimates
- IMPN SW : Implenia FY Sales Meets Estimates
- IDR SM : Indra FY Ebitda Meets Estimates
- ITP FP : Interparfums FY Operating Profit Beats Estimates
- TKWY NA : Just Eat Profit Forecast Beats Estimates on Cost Cutting Efforts
- Klarna IPO : Klarna Said to Sound Out Banks for US IPO at $20 Billion Value
- LXS GY : Lanxess Sees EU413m Goodwill Impairment, Envalior Devaluation
- MMB FP : Lagardere FY Recurring EBIT Beats Estimates
- LSG NO : Leroy 4Q Operational Ebit Beats Estimates
- LIN GY : Linde Raises Quarterly Dividend 9% to $1.39/Shr
- LHA GY : Lufthansa Sees No Major Impact From Strike on Feb. 28 Schedule
- MC FP : LVMH in Exclusive Talks With Lagardere for Paris Match Magazine
- NEL NO : Nel 4Q Revenue Beats Estimates
- ALCOX FP : Nicox to Restructure Debt, Streamline to Extend Cash Runway
- OSE FP : AbbVie & OSE Immuno to Develop Novel Monoclonal Antibody
- RED SM : Redeia 4Q Net Income Beats Estimates
- SAF FP : Safran to Create New Site in France for Aircraft Engine Parts
- G24 GY : Scout24 SE FY Oper Ebitda Beats Estimates
- SGRO LN : Plans to Raise £800M to Pursue Growth Opportunities, Offering Prices at GBp820/Share
- SEM PL : Semapa FY Net Income EU244.5M Vs. EU307.1M Y/y
- GLE FP ; SocGen Said to Be in Talks With BPCE Over Equipment Finance Unit
- UCB BB : UCB FY Adjusted Ebitda Beats Estimates
- UNH US : U.S. Launches Antitrust Investigation of Healthcare Giant UnitedHealth - WSJ
- DG FP : Vinci to Buy Denver’s Northwest Parkway Concession; No Terms
- ALVIV FP : SNEF Enters Pact to Buy Controlling Holder of Visiatic
- VOD LN : Swisscom Is Said in Advanced Talks to Buy Vodafone Italy Unit
- WLN FP : Worldline Sees 2024 Adj. Ebitda at Least EU1.17B, Est. EU1.13B

>>> Europe : Brokers Upgrades & Downgrades - 28th of February 2024

>>> Up
* BCP Raised to Outperform at Oddo BHF; PT 41 euro cents
* Duerr Raised to Buy at Quirin Privatbank AG; PT 29 euros
* Genus Raised to Buy at Investec; PT 2,309 pence
* Mapfre Raised to Add at AlphaValue/Baader
* Mercedes Raised to Buy at Jefferies; PT 100 euros
* Zurich Insurance Upgraded to Buy at Berenberg on Pricing Trends

>>> Down
* Deutsche PBB PT Cut to 3.50 euros at Bankhaus Metzler
* Direct Line Cut to Neutral at Citi; PT 162 pence
* Inditex Cut to Hold at Bestinver; PT 44.50 euros
* LeadDesk Cut to Accumulate at Inderes; PT 9.20 euros
* Seacrest Petroleo Bermuda Cut to Neutral at Banco BTG Pactual
* Seacrest Petroleo Bermuda Cut to Hold at Pareto Securities

>>> Initiation
* Baltic Classifieds Group Rated New Hold at Jefferies
* Elopak Rated New Buy at Arctic Securities; PT 38 kroner
* LendInvest Rated New Hold at Investec; PT 28 pence
* Sonova Rated New Hold at Equita; PT 300 Swiss francs

>>> Call
* Mercedes Raised at Jefferies on Credible Cash Distribution Plan

>>> US After Hours Summary: BYND +75.8%, FLYW +18.3%, AMBA +11%, EBAY +3.5% high

After Hours Summary: BYND +75.8%, FLYW +18.3%, AMBA +11%, EBAY +3.5% higher on earnings; IAS -18.1%, LMND -17%, EB -15.7%, SAM -11.7%, URBN -11.2% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: BYND +75.8%, FLYW +18.3%, AMBA +11%, VTEX +8.5%, UHS +8%, BGS +7.2%, CPNG +6.8%, CRDO +6.4%, OSUR +6.4%, AXON +5.2%, A +5%, RVLV +4.5%, BWXT +4.1%, FSLR +4.1%, GO +3.9%, EBAY +3.5% (also increases dividend and authorizes additional $2 bln stock repurchase program), MNKD +3.2%, MTUS +2.5% (also announces US Army funding), RSG +2.5%, PR +2.4%, PK +2.3%, HHH +2.2%, IMAX +2%, ONL +2%, CIVI +1.8% (also to repurchase shares from NGP Tap Rock), CRC +1.8%, VRDN +1.7%, GNL +1.2%, LNW +0.9%, SBRA +0.5%, KVYO +0.3%, SFIX +0.3%, OVV +0.3%, ALHC +0.1%, PRA +0.1%, RYAN +0.1% (also declares special dividend, initiates regular dividend)

Companies trading higher in after hours in reaction to news: VKTX +5% ($350 mln stock offering), REKR +3% (stock offering by selling shareholders), CRC +1.8% (provides operations update), SLGN +1.7% (increases dividend), JANX +0.5% ($175 mln stock offering), PNM +0.1% (completes sale of its 50% interest in its renewable JV)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: IAS -18.1%, JAMF -17.4%, LMND -17%, TMCI -16.6%, RXRX -16.2%, LPRO -15.8%, EB -15.7%, INGN -13.3%, PRCT -13.3%, LAZR -12.4%, SAM -11.7% (also CEO to retire, names new CEO), URBN -11.2%, GDOT -10.2%, PGNY -8.8%, ACAD -8.1%, XNCR -7.5%, BMBL -7.2% (also to reduce global workforce), SPCE -6.8%, MASI -6.1%, RKLB -5.3% (also introduces its family of spacecraft buses), ARRY -4.7%, OPK -3.8%, CYTK -3.7%, TKO -3.4%, HURN -3.1%, RDFN -2.9%, ALEC -2.9%, ZETA -2.6%, XP -2.5% (also authorizes new 2.5 mln share repurchase program), KURA -2.5%, NRDY -2.3%, AGL -2.2%, SUPN -2.2%, RGNX -2.2%, ICFI -1.9%, DAR -1.8%, CLNE -1.6%, MYGN -1.3%, PCVX -1.3%, DVN -0.8%, IPAR -0.4% (also increases dividend), VZIO -0.3%, EXR -0.2%, ALC -0.1%

Companies trading lower in after hours in reaction to news: RYAM -10.1% (signs MoU to explore e-fuels with Verso Energy), ITRI -5% (files mixed shelf securities offering), BROS -2% (stock offering by selling shareholders), EVER -1.4% (files $150 mln mixed shelf securities offering), ABSI -1.2% (commences $75 mln offering), BCRX -1.2% (files mixed shelf securities offering), IRBT -0.7% (files mixed shelf securities offering), VOD -0.7% (Swisscom in advanced talks to acquire VOD's Italian business, according to Bloomberg), NTR -0.2% (Toronto Stock Exchange permits repurchase of up to 5% of shares), FULC -0.1% (files $350 mln mixed shelf securities offering)

>>> US Notable earnings/guidance movers: BYND +80.1%, FLYW +20.3%, AMBA +12.7%,

Notable earnings/guidance movers: BYND +80.1%, FLYW +20.3%, AMBA +12.7%, CPNG +8.5%, IMAX +7%, A +5.9%, EBAY +4.6% on upside; GDOT -17%, IAS -16.4%, SAM -12.8%, SPCE -10.4%, LMND -8.2% on downside
  • Earnings/guidance gainers: BYND +80.1%, FLYW +20.3%, AMBA +12.7%, CPNG +8.5%, IMAX +7%, A +5.9%, AXON +5.9%, GO +5.8%, CRDO +5.6%, UHS +5.6%, OSUR +5.5%, BWXT +5.3%, VTEX +5.3%, CIVI +5.2%, EBAY +4.6%, BGS +4.2%, KVYO +4%, FSLR +2.4%, PR +2.4%, ICUI +2.1%, ACAD +2%, ONL +2%, SNDX +2%, MYGN +1.7%, RVLV +1.6%, LNW +1.4%, RYAN +1.3%
  • Earnings/guidance losers: GDOT -17%, IAS -16.4%, JAMF -13.9%, SAM -12.8%, RXRX -12.4%, SPCE -10.4%, LMND -8.2%, PGNY -8.1%, BMBL -7.4%, PRCT -7%, AGL -6.2%, RKLB -6.2%, TKO -6.2%, XNCR -6.1%, URBN -6%, LAZR -5.6%, ARRY -5.4%, NRDY -4.9%, OPK -4.8%, MASI -3.9%, ZETA -2.8%, TMCI -2.7%, ALHC -2.5%, XP -2.5%, CLNE -2.3%, CYTK -2.3%, RGNX -2.2%, INGN -2%, SUPN -2%, EXR -1.9%

>>> Closing Stock Market Summary

Closing Stock Market Summary
Today's index-level price action was fairly limited. The S&P 500 (+0.2%) and Nasdaq Composite (+0.4%) spent most of the session trading near yesterday's closing levels while the Russell 2000 continued its recent outperformance, climbing 1.3%.
Meanwhile, the price-weighted Dow Jones Industrial Average declined 0.3% due in part to a loss in its heaviest component, UnitedHealth (UNH 513.42, -11.90, -2.3%), on news that the Department of Justice has launched an antitrust investigation into the company, according to The Wall Street Journal.
The overall vibe in the market was positive, but there wasn't a lot of conviction on the part of buyers. Importantly, though, there wasn't a lot of conviction on the part of sellers either, which acted as a positive catalyst for the market.
A turnaround in shares of Apple (AAPL 182.63, +1.47, +0.8%) also supported market today, propelling the S&P 500 and Nasdaq Composite to session highs in the afternoon trade. Apple had been down as much as 0.9%, but settled 0.8% higher after news that it's cancelling efforts to build an electric car and will focus on generative artificial intelligence, according to Bloomberg.
The indices were already heading slightly higher in front of the Apple news, though, in response to today's solid $42 billion 7-yr note offering. This followed yesterday's weak sales of 2- and 5-yr notes. The Treasury market didn't react much to today's auction results. The 2-yr note yield declined two basis points today to 4.71% and the 10-yr note yield rose two basis points to 4.32%.
Many stocks participated in the afternoon climb, leaving seven of the 11 S&P 500 sectors higher. The utilities sector saw the biggest gain, 1.9%, thanks to a big earnings-related rise in shares of Constellation Energy (CEG 155.76, +22.54, +16.9%).
Constellation Energy was one of the top performing stocks in the S&P 500 today, trailing only Norwegian Cruise Line (NCLH 19.09, +3.16, +19.8%), which also traded higher following pleasing earnings news.
Macy's (M 19.92, +0.65, +3.4%) and Lowe's (LOW 235.39, +4.07, +1.9%) were also notable names that reported earnings since yesterday's close, receiving positive reactions from investors.
  • Nasdaq Composite: +6.8% YTD
  • S&P 500: +6.5% YTD
  • Dow Jones Industrial Average: +3.4% YTD
  • S&P Midcap 400: +3.1% YTD
  • Russell 2000: +1.4% YTD
Reviewing today's economic data:
  • January Durable Orders -6.1% (consensus -4.4%); Prior was revised to -0.3% from 0.0%; January Durable Goods - ex transportation -0.3% (consensus 0.3%); Prior was revised to -0.1% from 0.6%
    • The key takeaway from the report is that it sends a poor signal about the state of business spending, as nondefense capital goods orders were down 19.4%.
  • January FHFA Housing Price Index 0.1%; Prior was revised to 0.4% from 0.3%
  • December S&P Case-Shiller Home Price Index 6.1% (consensus 6.0%); Prior 5.4%
  • February Consumer Confidence 106.7 (consensus 114.6); Prior was revised to 110.9 from 114.8
    • The key takeaway from the report is that consumers have become a bit more pessimistic about the short-term outlook for business and the labor market, but their view of short-term income prospects improved slightly.
Looking ahead, Wednesday's economic calendar features:
  • 7:00 ET: Weekly MBA Mortgage Index (prior -10.6%)
  • 8:30 ET: Q4 GDP -- second estimate (consensus 3.2%; prior 3.3%), Q4 GDP Deflator -- second estimate (consensus 1.5%; prior 1.5%), advance January goods trade balance (prior -$88.5 bln), advance January Retail Inventories (prior 0.8%), and advance January Wholesale Inventories (prior 0.4%)
  • 10:30 ET: Weekly crude oil inventories (prior +3.51 mln)

>>> Cytokinetics misses by $0.42, misses on revs; guides FY24 revs below consens

Cytokinetics misses by $0.42, misses on revs; guides FY24 revs below consensus (80.99 +1.99)
  • Reports Q4 (Dec) loss of $1.38 per share, $0.42 worse than the FactSet Consensus of ($0.96); revenues fell 10.5% year/year to $1.7 mln vs the $7.62 mln FactSet Consensus.
  • Co issues downside guidance for FY24, sees FY24 revs of $3-$5 mln vs. $25.90 mln FactSet Consensus. Operating expenses will be in the range of $420 to 450 million, and net cash utilization will be approximately $390 to $420 million.