>>> Europe : Brokers Upgrades & Downgrades - 6th of March 2024 V2(+)

>>> Up
* Airbus Raised to Neutral at UBS; PT 160 euros (+)
* ASML PT Raised to 1,260 euros from 1,050 euros at Jefferies
* Belimo Raised to Buy at HSBC; PT 540 Swiss francs
* IAG Raised to Overweight at JPMorgan (+)
* Equinor Raised to Neutral at Grupo Santander; PT 285 kroner (+)
* Experian Raised to Buy at Jefferies; PT 4,020 pence
* Hufvudstaden Rating Upgraded to Hold at ABG on Valuation Support
* IMCD Raised to Overweight at JPMorgan; PT 188 euros
* Inmobiliaria Colonial Raised to Neutral at BNPP Exane (+)
* Legrand Raised to Buy at Berenberg; PT 110 euros
* Netum Group Raised to Accumulate at Inderes; PT 2.90 euros

>>> Down
* Antofagasta Cut to Underweight at Barclays; PT 1,295 pence
* Ariston Cut to Accumulate at Banca Akros (+)
* Basic-Fit Cut to Equal-Weight at Barclays; PT 28 euros
* Galp Cut to Neutral at Grupo Santander; PT 16.50 euros (+)
* Glanbia Cut to Add at Numis; PT 20 euros
* Glanbia Cut to Add at Numis; PT 20 euros
* Orthex Cut to Accumulate at Inderes; PT 7 euros
* Rockwell Automation Cut to Hold at Berenberg; PT $290
* Rotork Cut to Hold at Stifel; PT 350 pence (+)
* Systemair Cut to Hold at DNB Markets; PT 78 kronor
* Tesla PT Cut to $320 from $345 at Morgan Stanley

>>> Initiation
* ABB ADRs Rated New Hold at Berenberg; PT $39.50
* Endur ASA Rated New Buy at Pareto Securities; PT 65 kroner (+)
* Legrand ADRs Rated New Buy at Berenberg; PT $23.80
* Neobo Fastigheter Rated New Buy at SEB Equities; PT 22 kronor
* Neste Rated New Buy at Stifel; PT 44 euros
* Schneider Electric ADRs Rated New Buy at Berenberg; PT $54.40
* Siemens ADRs Rated New Buy at Berenberg; PT $118.50
* Waga Energy Rated New Buy at Gilbert Dupont; PT 27 euros (+)

>>> Call
* Antofagasta is Downgraded at RBC Following Strong Re-Rating
* Arkema Cut as Berenberg Sees Better Opportunities Elsewhere
* Cibus Nordic Real Estate Loses Only Sell Rating as ABG Upgrades
* Experian’s Growth Is Accelerating, Upgraded to Buy at Jefferies (+)
* IAG Double-Upgraded at JPMorgan as Investment Seen Paying Off (+)
* TUI Upgraded at Morgan Stanley as Travel Demand Remains Solid

>>> Stoxx 600 Pre-Market Indications

  • IAG (INR TH) +4.7%
    • Qatar Airways Sees Strong Demand, But More Picky Passengers
  • TUI (TUI1 TH) +4%
    • TUI Upgraded at Morgan Stanley as Travel Demand Remains Solid
  • BAE (BSP TH) +2.2%
  • Symrise (SY1 TH) +1.9%
    • Symrise Sees 2024 Ebitda Margin About 20%, Est. 20.3%
  • Zealand Pharma (22Z TH) +1.8%
  • Bayer (BAYN TH) +1.5%
  • BAT (BMT TH) +1.1%
  • Safran (SEJ1 TH) +1.1%
  • Thales (CSF TH) +1.1%
  • Rheinmetall (RHM TH) +0.9%
  • Schneider Electric (SND TH) -0.7%
    • Schneider Electric ADRs Rated New Buy at Berenberg; PT $54.40
  • TAG Immobilien (TEG TH) -0.7%
  • LEG Immobilien (LEG TH) -1%
  • LVMH (MOH TH) -1%
  • Knorr-Bremse (KBX TH) -1.1%
  • Raiffeisen (RAW TH) -1.2%
  • Hermes (HMI TH) -1.4%
  • Rational (RAA TH) -3.3%
  • Deutsche Post AG (DHL TH) -4.5%
    • Deutsche Post AG 2024 Ebit Forecast Misses Estimates

>>> TradeGate Pre-Market Indications

DAX:
  • Symrise (SY1 TH) +2.6%
    • Symrise Sees 2024 Ebitda Margin About 20%, Est. 20.3%
  • Bayer (BAYN TH) +1.3%
    • Tech Giants Drag Down US Stocks After Torrid Rally: Markets Wrap
  • Rheinmetall (RHM TH) +0.9%
  • Airbus (AIR TH) +0.6%
  • Deutsche Post AG (DHL TH) -4.5%
    • Deutsche Post AG 2024 Ebit Forecast Misses Estimates
MDAX:
  • HelloFresh (HFG TH) +2.2%
  • Evotec SE (EVT TH) +1.2%
  • Aroundtown (AT1 TH) +0.9%
  • Fresenius Medical Care (FME TH) +0.7%
  • Puma (PUM TH) +0.6%
  • Nordex (NDX1 TH) -0.2%
  • Stroeer (SAX TH) -0.4%
  • TeamViewer SE (TMV TH) -0.6%
  • TAG Immobilien (TEG TH) -0.7%
  • LEG Immobilien (LEG TH) -0.7%
SDAX:
  • Eckert & Ziegler (EUZ TH) +1.3%
  • Suess MicroTec (SMHN TH) +0.9%
  • Deutsche PBB (PBB TH) +0.5%
    • Bloomberg Europe Corporate Index Up, OAS Widens
  • Varta (VAR1 TH) -0.9%
    • Qorvo, Skyworks, Broadcom Slump as China iPhone Sales Plunge (1)
  • Ionos (IOS TH) -1.7%

>>> What to look at today - 6th of March 2024

US equities futures and European contracts inched upward ahead of testimony from Federal Reserve Chair Jerome Powell. Investors also focused on China’s policy meeting after officials announced an ambitious 5% growth target. Equities in Hong Kong rebounded Wednesday, driven by Chinese tech giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd., while JD.com Inc. surged ahead of its fourth-quarter results. Mainland China stocks fell after fluctuating throughout the day.  A press conference with senior officials on Wednesday may provide more details around the government’s effort to boost consumption. Central bank Governor Pan Gongsheng will brief journalists, alongside Commerce and Finance ministry chiefs and the new top securities regulator. Elsewhere, Japan’s biggest bank expects the central bank to exit negative interest rate in two weeks and is positioning itself accordingly. Mitsubishi UFJ Financial Group Inc.’s view is much more definitive than the swap market, which rates the chances of Bank of Japan Governor Kazuo Ueda changing policy this month at about 50%.  In corporate news, JM Financial Ltd. plunged in Mumbai after India’s central bank barred its unit from extending loans against shares and bonds, including financing subscriptions to initial public offerings. US benchmark indexes lost traction on Tuesday after a rally that has spurred concern about sky-high valuations, with caution prevailing before Powell heads to Capitol Hill for his semiannual testimony before Congress. Powell is expected to reiterate the lack of urgency to cut rates at his testimony. Wall Street also weighed data showing the US service sector cooled — even as orders and business activity picked up.  The S&P 500 dropped 1%, while the Nasdaq 100 slipped almost twice as much. Tesla Inc. extended a two-day selloff to 11%, while Apple Inc. suffered its fifth straight loss.  Treasury 10-year yields steadied Wednesday after falling six basis points to 4.15% in the previous session with Australian and New Zealand yields tracking those moves. A gauge of dollar was little changed.  Meanwhile, Bitcoin rebounded. It hit a record Tuesday for the first time in more than two years, before rapidly retreating as traders took some profits. Gold was little changed after also surging to a record high in the previous session, as expectations for US rate cuts and geopolitical tensions pushed it higher. Such moves are threatening to send mixed messages about the appetite for risk across global markets. In commodities, oil steadied after a decline as a report showed US inventories are continuing to expand, a sign supply may be running ahead of demand.  US After Hours CRWD +25.7%, BASE +12.8%, CDRE +4.1%, BOX +3.4% higher on earnings; MRNS -23.8%, ODD -11.7%, JWN -9.9%, NVEI -7.5% lower on earnings.

Nikkei -0.02% Hang Seng +1.38% CSI -0.33% Shanghai -0.22% Shenzen +0.21%

Eur$ 1.0861 CNH 7.2128 CNY 7.1994 JPY 149.78 GBP 1.2707 CHF 0.8840 RUB 90.9281 TRY 31.7205 WTI$ 78.43 Gold 2,129 +0.08% BTC 65,931 +4.11% ETH 3,769 +6.96%

S&P +0.09% Nasdaq +0.28% EuroStoxx +0.02% FTSE +0.11% Dax +0.06% SMI +0.01%

Macro :
- Sinking Solar Prices Seen as Threat to US Manufacturing
- Convertible Protection-Buying Bullish For Stocks: ECM Watch

Keep an eye on :
- ADKO AV : Addiko FY Dividend per Share EU1.26
- BCG LN : Baltic Classifieds Group Holder Antler Offers Shares
- BARN SW : Chocolate Makers' Prices May Beat Consensus as Cocoa Surges 80%
- BAVA DC : Bavarian Nordic Maintains 2024 Revenue Forecast
- BATS LN : British American Tobacco chief embraces new UK vape tax
- CHRO SS : ChromoGenics Offers SEK15 Million Shares via Vator Securities, Offering of 2.51m Shares Prices at SEK6.44/Share
- CLARI FP : Clariane Seeks Buyer for Belgian, Dutch Operations: Tijd
- CLASB SS : Clas Ohlson 3Q Operating Profit Misses Estimates Clas Ohlson Feb. Sales +17%
- CRBN NA : Corbion Names Peter Kazius as New CFO
- CVC IPO : CVC Capital Mulls Reviving IPO Plans as Soon as April: Sky
- DHL GY : Deutsche Post AG 2024 Ebit Forecast Misses Estimates
- DIE BB : D'Ieteren FY Adjusted Pretax Profit EU970.8M Vs. EU757.9M Y/y
- ELI BB : Elia Group FY Ebitda Misses Estimates
- EQT SS : EQT’s Galderma Seeks to Raise $2.3 Billion in Swiss Listing
- EQT SS : Galderma Targets Equity Raise of About $2.3b in Swiss IPO (1)
- FCT IM : Fincantieri in Talks to Buy Leonardo’s Wass Unit, MF Reports
- HMB SS : H&M Forms Recycled-Polyester Venture With Northvolt Founders
- IDR SM : Indra to Create New Space Unit, Seeks Partner for Minsait Unit
- LDO IM : Fincantieri in Talks to Buy Leonardo’s Wass Unit, MF Reports
- LSEG LN : Blackstone, Thomson Reuters Group Offer 21.5m LSE Group Shares
- LHA GY : Lufthansa’s Austrian Unit Cancels 150 Flights in Union Spat
- MOR GY : MorphoSys, Bilfinger to Join MDAX; Rational, Vitesco to Leave
- NHY NO : Norsk Hydro Names Trond Olaf Christophersen Acting CFO
- NOS PL : NOS FY Net Income Beats Estimates
- PCELL SS : PowerCell Gets SEK35m Order After Product Design Approved
- SAABB SS : *FRANCE’S NAVAL GROUP SET TO WIN €2.5BLN DUTCH SUBMARINE DEAL
- SCR FP : Scor 4Q Net Income Misses Estimates
- STG DC : Scandinavian Tobacco 4Q Pretax Profit Misses Estimates
- SY1 GY : Symrise Sees 2024 Ebitda Margin About 20%, Est. 20.3%
- SYNSAM SS : Synsam Holder Theia Holdings Offers 20m Shares: Terms
- TEMN SW : Temenos Reschedules Annual Report Publication to April 15
- UBXN SW : U-blox FY Revenue Misses Estimates
- VMO US : Vimeo Said to Get Interest From App Developer Bending Spoons (1)

>>> US After Hours Summary: CRWD +25.7%, BASE +12.8%, CDRE +4.1%, BOX +3.4% high

After Hours Summary: CRWD +25.7%, BASE +12.8%, CDRE +4.1%, BOX +3.4% higher on earnings; MRNS -23.8%, ODD -11.7%, JWN -9.9%, NVEI -7.5% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CRWD +25.7% (also to acquire Flow Security), BASE +12.8%, CDRE +4.1%, BOX +3.4% (also announces new integration with Microsoft Azure OpenAI ; also authorizes new $100 mln share repurchase program), MLNK +0.5%

Companies trading higher in after hours in reaction to news: DADA +6.6% (announces results of previously disclosed independent review), FTNT +4.1% (in sympathy with strong CRWD earnings), VINC +4% (to present data/speak at AACR), PANW +3.6% (in sympathy with strong CRWD earnings), ZS +3.3% (in sympathy with strong CRWD earnings), CORZ +2.5% (releases production and operations updates for Feb), VSTM +2% (announces preclinical presentations), NRIX +2% (to present data/speak at AACR), VSTM +2% (receives orphan drug designation from FDA for Avutometinib), DXCM +1.8% (Stelo to be cleared by FDA as OTC), XPO +1.1% (reports Feb LTL segment operating metrics), APGE +0.8% (commences $350 mln share offering), HOWL +0.4% (to present data/speak at AACR), CBOE +0.3% (reports Feb trading volume), BAC +0.1% (files mixed shelf securities offering)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: MRNS -23.8%, ODD -11.7%, JWN -9.9%, NVEI -7.5%, CHPT -6%, HCP -1.9% (also authorizes new $250 mln share repurchase program), WTI -1.2%, FNV -0.5%, ROST -0.4% (also new $2.1 bln share repurchase auth; increases dividend by 10%), AGTI -0.1%

Companies trading lower in after hours in reaction to news: XRX -7.7% (proposes $300 mln convertible senior notes; subsequent $45 mln repurchase), VNOM -5.3% (stock offering by selling shareholders), NUVL -5% (to present data/speak at AACR), NSSC -4.4% (files for 2.3 mln share offering by selling shareholder), FUSN -3.8% (to present data/speak at AACR), PYXS -2.6% (to present data/speak at AACR), LSEA -2.1% (stock offering by selling shareholders), CRBU -0.5% (to present data/speak at AACR), CCCC -0.3% (to present data/speak at AACR), FUBO -0.3% (files mixed shelf securities offering; also files for shares issuable upon conversion of convertible notes by selling shareholders), GILD -0.2% (to present data related to HIV treatment), ORIC -0.1% (to present data/speak at AACR)

>>> Europe : Brokers Upgrades & Downgrades - 6th of March 2024

>>> Up
* ASML PT Raised to 1,260 euros from 1,050 euros at Jefferies
* Belimo Raised to Buy at HSBC; PT 540 Swiss francs
* Experian Raised to Buy at Jefferies; PT 4,020 pence
* Hufvudstaden Rating Upgraded to Hold at ABG on Valuation Support
* IMCD Raised to Overweight at JPMorgan; PT 188 euros
* Legrand Raised to Buy at Berenberg; PT 110 euros
* Netum Group Raised to Accumulate at Inderes; PT 2.90 euros

>>> Down
* Antofagasta Cut to Underweight at Barclays; PT 1,295 pence
* Basic-Fit Cut to Equal-Weight at Barclays; PT 28 euros
* Glanbia Cut to Add at Numis; PT 20 euros
* Glanbia Cut to Add at Numis; PT 20 euros
* Orthex Cut to Accumulate at Inderes; PT 7 euros
* Rockwell Automation Cut to Hold at Berenberg; PT $290
* Systemair Cut to Hold at DNB Markets; PT 78 kronor
* Tesla PT Cut to $320 from $345 at Morgan Stanley

>>> Initiation
* ABB ADRs Rated New Hold at Berenberg; PT $39.50
* Legrand ADRs Rated New Buy at Berenberg; PT $23.80
* Neobo Fastigheter Rated New Buy at SEB Equities; PT 22 kronor
* Neste Rated New Buy at Stifel; PT 44 euros
* Schneider Electric ADRs Rated New Buy at Berenberg; PT $54.40
* Siemens ADRs Rated New Buy at Berenberg; PT $118.50

>>> Call
* Antofagasta is Downgraded at RBC Following Strong Re-Rating
* Arkema Cut as Berenberg Sees Better Opportunities Elsewhere
* Cibus Nordic Real Estate Loses Only Sell Rating as ABG Upgrades
* TUI Upgraded at Morgan Stanley as Travel Demand Remains Solid

>>> US Close Dow -1.04% S&P -1.02% Nasdaq-1.65% Russell -0.99%

Closing Stock Market Summary
It was a downbeat day for the stock market. The major indices all lost more than 1.0% in a tech stock led retreat. The index level declines were less robust in the first half of the session, but selling accelerated in the afternoon trade.

The negative price action was driven by normal consolidation activity after a big run that had the major indices, and many individual stocks, trading near all-time highs. The stocks that led that upside charge experienced increased selling today compared to the rest of the market.

The Vanguard Mega Cap Growth ETF (MGK) registered a 1.7% decline today, which leaves its yearly gain at 8.3%. The PHLX Semiconductor Index (SOX) fell 2.1% today, but is still up 16.9% for the year. The S&P 500 information technology sector declined 2.2% today, leaving it up 10.1% in 2024.

On an individual basis, Microsoft (MSFT 402.65, -12.27, -3.0%), Meta Platforms (META 490.22, -7.97, -1.6%), and Amazon.com (AMZN 174.12, -3.46, -2.0%) all registered sizable declines today after big gains to start 2024. Notably, shares of NVIDIA (NVDA 859.64, +7.31, +0.9%) keep climbing, bringing its yearly gain to a whopping 73.6%.

Meanwhile, the Invesco S&P 500 Equal Weight ETF (RSP) fell 0.5% today. The RSP is up 3.6% for year compared to a 6.5% gain in the market-cap weighted S&P 500.

Aside from the information technology sector, the consumer discretionary (-1.3%) and real estate (-1.2%) sectors saw the largest declines. On the flip side, the consumer staples sector outperformed thanks in part to a big earnings-related gain in Target (TGT 168.58, +18.09, +12.0%). TGT was the best performing stock in the S&P 500 today. The energy (+0.7%) and financials (+0.1%) sectors were the only other sectors to close with gains.

Treasuries settled with gains. The 2-yr note yield fell six basis points to 4.55% and the 10-yr note yield declined eight basis points to 4.14%.
  • S&P 500: +6.5% YTD
  • Nasdaq Composite: +6.2% YTD
  • S&P Midcap 400: +5.0% YTD
  • Dow Jones Industrial Average: +2.4% YTD
  • Russell 2000: +1.3% YTD

Reviewing today's economic data:
  • February S&P Global US Services PMI - Final 52.3; Prior 52.5
  • January Factory Orders -3.6% (consensus -2.5%); Prior was revised to -0.3% from 0.2%
    • The key takeaway from the report is that business spending held steady in January, which takes some of the sting off the otherwise-weak report.
  • February ISM Non-Manufacturing PMI 52.6% (consensus 52.7%); Prior 53.4%
    • The key takeaway from the report is that business activity and order growth improved in February, but the Employment Index fell below 50.0%, indicating a contraction for the second time in the past three months.

Looking ahead, market participants will receive the following economic data on Wednesday:
  • 7:00 ET: Weekly MBA Mortgage Index (prior -5.6%)
  • 8:15 ET: February ADP Employment Change (consensus 150,000; prior 107,000)
  • 10:00 ET: January job openings (prior 9.026 mln) and January Wholesale Inventories (consensus -0.1%; prior 0.4%)
  • 10:30 ET: Weekly crude oil inventories (prior +4.20 mln)
  • 14:00 ET: March Fed Beige Book

FT : US bill would ban TikTok from app stores unless ByteDance divests it

US bill would ban TikTok from app stores unless ByteDance divests it
Bipartisan legislation comes amid growing national security concerns tied to its Chinese owner

Republican and Democratic lawmakers have introduced legislation that would ban app stores from distributing TikTok unless ByteDance, its Chinese owner, divests control of the popular video-sharing platform.

The bipartisan bill from Mike Gallagher, the Republican chair of the House China committee, his Democratic counterpart Raja Krishnamoorthi and 17 lawmakers would give ByteDance 165 days to divest TikTok to avoid the app from being banned.

The measure could have implications for the US election. President Joe Biden’s re-election campaign has started using the video streaming service to try to connect with young voters, even though the White House previously backed a bill that would have given the commerce department the authority to ban apps such as TikTok.

His campaign launched its first TikTok video last month on the day of the Super Bowl, including a Q&A with the president. The first post got more than 10mn views, although none has surpassed that. Most of the posts focus on attacking the mental fitness of former president Donald Trump and Republican extremism.

The bill would also create a process that would enable the president to take action against social media applications controlled by groups that are headquartered or domiciled in China, Russia, Iran and North Korea.

TikTok said: “This bill is an outright ban of TikTok, no matter how much the authors try to disguise it. This legislation will trample the first amendment rights of 170mn Americans and deprive 5mn small businesses of a platform they rely on to grow and create jobs.”

The Biden administration and the previous Trump administration both identified TikTok as a security risk, partly because Chinese law requires domestic companies to share data when requested by Beijing. Some lawmakers say China could use the platform to spread disinformation to try to meddle with US democracy.

In recent congressional testimony, FBI director Christopher Wray said the streaming service was a tool that was ultimately under the control of the Chinese government and that it “screams out with national security concerns”.

One congressional aide said the bill was a “monumental moment” and that there was a “huge groundswell of bipartisan support” for the measure on Capitol Hill.

Previous congressional efforts to ban TikTok have been unsuccessful, particularly after some lawmakers raised concerns about any prohibition infringing on free speech. Congressional aides said this bill was designed to overcome those barriers.

A second congressional aide said many lawmakers had shifted their view on TikTok and were more willing to risk the wrath of younger voters following classified briefings from officials on the security risks. The legislation would not ban app stores from distributing TikTok in non-US markets, another congressional aide noted.

Some US states are also trying to ban the app. Last year, Montana’s governor signed into law a first-of-its-kind bill that would prohibit app stores from allowing downloads of TikTok in the state. TikTok successfully sued to block the ban on the grounds that it was unconstitutional, and Montana is appealing against the ruling.

In January, Republican lawmakers grilled TikTok chief executive Shou Zi Chew over whether the group has ties to China, which he denied. TikTok has tried to distance itself from ByteDance by investing more than $1.5bn on “Project Texas”, a restructuring plan it insists protects user data and content from China’s influence.

TikTok has been banned from government devices in the US, UK, Canada and the EU.