TheChek News Flow

Notable earnings/guidance movers: UPST +40.7%, LZ +15.6%, RNG +8.4%, EXAS +7.3%, CARG +6.9% on upside; CUTR -21.1%, JXN -17.6%, TWLO -12.6%, ABNB -10% on downside

• Earnings/guidance gainers: UPST +40.7%, LZ +15.6%, COMP +10.5%, FLYW +9.4%, RNG +8.4%, EXAS +7.3%, CARG +6.9%, CELH +6.7%, IAC +6.2%, OLO +6%, TOST +6%, BIRD +5.9%, LNW +5.3%, MTTR +5.2%, GO +4.5%, KIND +4.4%, GH +4.3%, QTWO +4.3%, VZIO +4.2%, RIVN +4.1%, AKAM +3.9%, EDR +3.9%, EA +3.5%, MNKD +3.4%, PTRA +2.7%, DAR +2.3%, CMP +2.1%, CTOS +2%, PRIM +2%
• Earnings/guidance losers: CUTR -21.1%, JXN -17.6%, TWLO -12.6%, MQ -10.6%, NVTA -10.6%, ABNB -10%, TTGT -8.8%, MODG -8.6%, RVNC -7.9%, SILK -7.9%, HRB -7.6%, AMPL -7.4%, IRBT -7.3%, BROS -6.9%, AZTA -5.9%, RPD -5.1%, EOLS -5%, EXFY -5%, HRT -4.9%, ARRY -4.7%, ZIP -4%, GPRO -3.9%, ICHR -3.7%, EXEL -3.2%, LAZR -3.1%, RXT -3%, EBS -2.3%, AXON -2.2%, HCAT -2.2%

Closing Stock Market Summary

The stock market traded on the weaker side today in front of the April Consumer Price Index tomorrow at 8:30 a.m. ET, yet losses were modest in scope. The Dow Jones Industrial Average (DJIA) and Russell 2000 at one point stretched into positive territory, showing small gains, but slipped back into red figures, joining the S&P 500 and Nasdaq there by the closing bell. 

Ongoing concerns about the debt ceiling were a limiting factor today due to the specter of the 4:00 p.m. ET meeting between President Biden and congressional leaders to discuss the debt ceiling.

The relative outperformance of the DJIA was fueled in part by a gain in Boeing (BA 201.88, +4.62, +2.3%) on the news that its has received 150 firm orders for its 737 Max-10 aircraft, and options for 150 more, from Ryanair. Meanwhile, relative strength in energy shares along with some rebound action in regional bank stocks led to the relative outperformance of the Russell 2000. 

Regional bank stocks had been a weak spot in the early going before a rebound effort took root around 1:00 p.m. ET shortly after the 3-yr note auction was met with strong demand. PacWest (PAWC 6.11, +0.14, +2.4%), Zions Bancorp (ZION 24.42, +0.16, +0.7%), and US Bancorp (USB 29.91, +0.17, +0.6%), along with other regional banks, recouped all of their early losses to settle the session with at least modest gains. The SPDR S&P Regional Banking ETF (KRE), though, still closed down 0.4%. 

Most of the outsized moves in either direction today were limited to stocks with specific catalysts. Palantir (PLTR 9.55, +1.81, +23.4%) and DaVita (DVA 100.72, +11.51, +12.9%) were winning standouts after reporting earnings while PayPal (PYPL 65.90, -9.61, -12.7%) logged a steep earnings-related loss. 

Nine of the 11 S&P 500 sectors registered losses with materials (-0.9%) and information technology (-0.9%) falling to the bottom of the pack. The industrials (+0.2%) led the outperformers thanks to earnings-driven gains in Transdigm Group (TDG 808.41, +36.11, +4.7%) and Jacobs Engineering (J 118.76, +1.47, +1.3%). 

Treasuries settled little changed from yesterday's settlement levels. The 2-yr note yield rose one basis point to 4.00% and the 10-yr note yield was unchanged at 3.52%.

U.S. economic data today was limited to the April NFIB Small Business Optimism Index, which fell to 89.0 -- a 10-year low -- from 90.1. There was also some tepid trade data out of China for April, which featured an 8.5% yr/yr increase in exports and a 7.9% yr/yr decline in imports. In March, exports were up 14.8% yr/yr while imports were down just 1.4% yr/yr.

• Nasdaq Composite: +17.1% YTD
• S&P 500: +7.8% YTD
• Dow Jones Industrial Average: +1.4% YTD
• S&P Midcap 400: +1.0% YTD
• Russell 2000: -0.4% YTD

Market participants will receive the following economic data on Wednesday:

• 7:00 ET: Weekly MBA Mortgage Index (prior -1.2%)
• 8:30 ET: April CPI (consensus 0.4%; prior 0.1%) and Core CPI ( consensus 0.3%; prior 0.4%)
• 10:30 ET: Weekly crude oil inventories (prior -1.28 mln)
• 14:00 ET: April Treasury Budget (prior -$378.10 bln)

Li Auto (LI), Teva Pharma (TEVA), Coherent (COHR), Melco Resorts & Entertainment (MLCO), Nomad Foods (NOMD), Roblox (RBLX), and Wendy's (WEN) are some of the more notable names reporting earnings ahead of the open on Wednesday.

In reaction to earnings/guidance:

• ENTA -20.5% (also announced topline data), FSR -12.8%, PLUG -12.1%, SLVM -11.4%, LCID -11.3% (also files stock offerings), VTNR -11.1%, TASK -10.9%, LITE -10.2%, HAIN -10%, DDD -9.6% (also reducing headcount), SWKS -9.3%, HPP -8.7%, MRVI -7.3%, AVTA -6.2%, FGEN -6.1%, WAT -5.9%, TMCI -5.7%, PYPL -5.6%, UAA -5.4%, SBSW -4.6%, CERT -4%, IFF -3.8%, HNST -3.8%, DOCN -3.6%, SWIM -3.1%, TALO -2.8%, BHF -2.6%, KOS -2.5%, HIMS -2.4%, GBDC -2.3%, CDXS -2.3%, IDYA -2.2%, TPX -2.2%, GFS -2.2%, LEV -2.1%, DRQ -2%, PRAA -2%, XNCR -1.8%, BAK -1.8%, CHH -1.4%, FN -1.2%, WTRG -1.1%, ACAD -1.1%, MCRB -1.1%

Other news:

• W -8.4% (proposes $600 mln convertible senior notes offering)
• BILI -3.8% (repurchase right notification)
• TPX -3% (to acquire Mattress Firm in cash and stock deal valued at approx. $4.0 bln; deal expected to be accretive expected to close in 2H24)
• AMCR -2.1% (to acquire Moda Systems)
• ACLX -2% (files mixed shelf)
• GVA -1.8% (commences $325 mln convertible notes offering)
• TMDX -1.3% (prices offerning of $400 mln of convertible senior notes due 2028)
• PCOR -1.2% (appoints new CFO)

Analyst comments:

• RDN -2.4% (downgraded to Underperform from Buy at BofA Securities)
• CDXS -2.3% (downgraded to Neutral from Buy at H.C. Wainwright)
• SHOP -1.9% (downgraded to Neutral from Overweight at Atlantic Equities)

Gapping up
In reaction to earnings/guidance:

• SEAT +26%, PLTR +16.1%, SHLS +14.9%, AMCX +11.2%, YMAB +10.5%, HNRG +9.7%, EHTH +7%, BWXT +6.8%, NVAX +6.4%, DVA +6.2%, OTLY +6%, CLVT +5.7%, AUDC +5%, SQSP +5%, TREX +4.8%, MCK +4.6%, GENI +4.4%, ELAN +4.2%, HLIT +4%, ROVR +4%, SWAV +3.7%, ATKR +3.4%, ALIT +3.4%, IGT +3.4%, EVBG +3.4%, PGNY +3.3%, VTR +3%, WE +3%, IIPR +2.5%, APD +2.5%, TWKS +2.5%, WDC +2.4%, PAY +2.4%, TDG +2.4%, RVMD +2.3%, ESPR +2.2%, BRBR +2%, MRC +2%, COTY +2%, WMG +2%, SRRK +2%, NXST +1.8%, LCII +1.7%, ACM +1.6%, TSLX +1.4%, JELD +1.4%, YOU +1.3%, ICUI +1.2%, BLUE +1.1%, .

Other news:

• CLRO +71.9% (declares a special one-time cash dividend of $1.00 per share)
• PINC +2.9% (evaluating strategic alternatives)
• MXCT +2.5% (announces exercise of options and PDMR dealing)
• GH +2.1% (appoints new COO)
• ONTF +1.2% (special cash dividend)

Analyst comments:

• NEO +7.7% (upgraded to Buy from Neutral at BTIG Research)

Early premarket gappers

• Gapping up:
  • CLRO +59.9%, PLTR +18.2%, YMAB +15.2%, SHLS +14.4%, PGNY +8.9%, PAY +8.2%, DVA +7.6%, PINC +7.3%, HLIT +7.2%, AUDC +7.1%, BWXT +6.8%, HNRG +4.6%, CLVT +4.2%, ROVR +4%, ICUI +3.8%, SWAV +3.7%, KOS +3.2%, TREX +2.6%, MXCT +2.5%, RVMD +2.3%, GH +2.1%, DVN +2%, BRBR +2%, MCK +2%, INTA +2%, HPP +1.9%, ATKR +1.7%, ACM +1.6%, WDC +1.6%, VTNR +1.5%, TSLX +1.4%, JELD +1.4%, CRBG +1.3%, ONTF +1.2%, IIPR +1.1%, HBM +0.9%, VTR +0.8%
• Gapping down:
  • ENTA -24.3%, SWKS -9.8%, DDD -9.2%, LCID -8.8%, CERT -6.7%, W -6.5%, MRVI -6.5%, AVTA -6.2%, TMCI -5.7%, HIMS -5.2%, PYPL -4.3%, SBSW -4.1%, BILI -3.5%, TASK -3.5%, ACLX -3.1%, FN -2.7%, BHF -2.6%, GBDC -2.3%, IDYA -2.2%, AMCR -2.1%, DRQ -2%, PRAA -2%, TALO -2%, SQSP -1.9%, XNCR -1.8%, IFF -1.7%, GVA -1.4%, BAK -1.4%, PCOR -1.2%, WTRG -1.1%, ACAD -1.1%, SAND -0.8%, CBT -0.8%, ASX -0.8%