Early Look

Friday, April 5, 2024

U.S. futures are looking at a modest bounce after stocks sunk on Thursday in a late day rollover, with the S&P 500 posting its 2^nd biggest losing day of the year (biggest drop since February 13^th), the Dow Jones Industrial Average dropped a 4^th straight day, and the Nasdaq posted its biggest one day percentage drop in about a month as investors snapped up bonds and the Volatility index (VIX) jumped over 2 points to 16.35 (highest since November). So, what sparked the late day roll? Well comments from a handful of Fed speakers starting the decline after Federal Reserve Bank of Richmond Thomas Barkin said it’s “smart” for the central bank to take time to gain greater clarity about the inflation trajectory before lowering interest rates. Barkin’s comments followed by Federal Reserve President of Minneapolis Kashkari questioning the need for rate cuts at all in 2024 (vs. the originally forecasted 6-cuts or last look 3-cuts for 2024) if the economy remains strong. Chicago’s Fed Goolsbee added he wants to be more convinced inflation is on a path to 2% before cutting rates. Stocks extended losses late day as crude oil prices jumped after reports of an imminent attack by Iran on Israel for the recent consulate attack, which weighed on sentiment. This all comes ahead of Friday’s payrolls which are forecast to increase by at least 200,000 for a fourth straight month after a better ADP private payroll reading on Wednesday. In Asian markets, The Nikkei Index tumbled -781 points or nearly 2% to 38,992, the Shanghai Index dipped -5 points to 3,069, and the Hang Seng Index was little changed, down a point to 16,723. In Europe, the German DAX is lower by -260 points or 1.43% to 18,140, while the FTSE 100 is down -70 points to 7,905.

• The Dow Jones Industrial Average fell -530.16 points, or 1.35%, to 38,596.98.
• The Nasdaq Composite slumped -228.38 points, or 1.40%, to 16,049.08.
• The Russell 2000 Index declined -22.37 points, or 1.08% to 2,053.83.

• 8:30 AM ET                  Private Payrolls for March…est. +160K (prior +223K)
• 8:30 AM ET                  Manufacturing Payrolls for March…est. 5K (prior -4K)
• 8:30 AM ET                  Unemployment Rate for March…est. 3.9%
• 8:30 AM ET                  Average Hourly Earnings M/M for March…est. +0.3% (prior +0.1%)
• 1:00 PM ET                   Baker Hughes Weekly rig count data
• 3:00 PM ET                   Consumer Credit for February…est. $15.0B

• Krispy Kreme (DNUT) upgraded to Overweight from Neutral at Piper Sandler and raised tgt to $20 from $14, following last week’s announcement of a national partnership with McDonald’s (MCD).
• Kura Sushi (KRUS) Q2 EPS loss (-$0.09) vs. est. loss (-$0.03); Q2 revs $57.3M vs. est. $56.6M; raises FY24 revenue view from $239M-$244M to $243M-$246M (est. $242.9M).
• Tesla Inc. (TSLA) is relying on technical support from Apple Inc. (AAPL) as the car company seeks to prove at an upcoming high-profile trial over the safety of its Autopilot system that a Model X driver who worked for the iPhone maker was playing a video game on his phone when he crashed and died.

• Duke Energy (DUK) has reached an agreement to sell its 50% ownership interest in Pioneer Transmission to John Laing Group, an international investor and active manager of core infrastructure assets.
• Eaton (ETN) upgraded to Outperform from Sector Perform at RBC Capital.
• Gulfport Energy (GPOR) downgraded to Sector Weight from Overweight at KeyBanc.
• Nucor Corporation (NUE) announced that it is introducing a weekly Nucor Consumer Spot Price (CSP) to provide its customers with consistent and transparent communications regarding the Company’s hot-rolled coil spot pricing. Nucor will issue the first CSP on Monday, April 8, 2024.

• SoFi (SOFI) upgraded to Market Perform from Underperform at Keefe Bruyette.

• AstraZeneca (AZN) Imfinzi improved overall survival in limited-stage lung cancer trial; Imfinzi results stem from Adriatic phase 3 trial; data supports Imfinzi role the treatment of early lung cancer after chemoradiotherapy.
• Agilent (A) upgraded to Buy from Hold at Stifel and raised price tgt to $163 from $145.
• Teladoc Health, Inc. (TDOC) announced that Jason Gorevic is departing the company, effective immediately. The Board of Directors has appointed Mala Murthy acting Chief Executive Officer while it searches for Mr. Gorevic’s permanent successor. Ms. Murthy has served as the Company’s Chief Financial Officer since 2019.

• Altice USA (ATUS) downgraded to Underweight from Equal Weight at Wells Fargo.
• Fox Corp. (FOXA) upgraded to Buy from Neutral at Seaport Research.
• Digi Communications NV has agreed to sell part of its fiber networks in Spain to a consortium led by Macquarie Group Ltd. as it seeks funds to pay for its expansion plan in the country, including buying remedies from the Orange-Masmovil deal.