Early Look

Wednesday, April 10, 2024

U.S. futures are little changed ahead of key U.S. inflation data later this morning, which will give fresh clues about the Federal Reserve’s policy outlook. The Consumer Price Index (CPI) for March is expected at 8:30 AM tomorrow morning with estimates calling for headline CPI M/M to rise +0.3% (vs. +0.4% prior) and on a Y/Y basis to rise +3.4% (vs. prior +3.2%). The core CPI, excluding food & energy, are expected to rise +0.3% (vs. +0.4% prior) and on a Y/Y basis to rise +3.7% (vs. prior +3.8%). First small taste of earnings season as airline Delta (DAL) reports better results, pushing shares higher pre mkt after posting record revenue, while big banks (JPM, Citi, WFC) kick off the season on Friday. In Asian markets, The Nikkei Index declined -191 points to 39,581, the Shanghai Index fell -21 points to 3,027, and the Hang Seng Index rose 311 points to 17,139. In Europe, stocks are on course for their best day in almost three weeks as the German DAX is up 125 points at 18,200, while the FTSE 100 rises about 50-points to 7,984 ahead of the European Central Bank (ECB) policy decision tomorrow morning. U.S. Treasuries were quiet ahead of that data, with the benchmark 10-year yield flat on the day at 4.366%, not too far from the four-month high of 4.464% hit Monday. Gold holding near records.

• The Dow Jones Industrial Average fell -9.13 points, or 0.02%, to 38,883.67.
• The Nasdaq Composite gained 52.68 points, or 0.32%, to 16,306.64.
• The Russell 2000 Index advanced 7.09 points, or 0.34% to 2,080.80.

• 8:30 AM ET                  Consumer Price Index (CPI) M/M for March…est. +0.3% (vs. +0.4% prior)
• 8:30 AM ET                  Consumer Price Index (CPI) Y/Y for March…est. +3.4% (vs. prior +3.2%)
• 8:30 AM ET                  CPI Core (Ex: Food & Energy) M/M for March…est. +0.3% (vs. +0.4% prior)
• 8:30 AM ET                  CPI Core (Ex; Food & Energy) Y/Y for March…est. +3.7% (vs. prior +3.8%)
• 10:00 AM ET                Wholesale Inventory M/M for February
• 10:30 AM ET                Weekly DOE Inventory Data
• 11:00 AM ET                Cleveland Fed CPI for March
• 12:45 PM ET                Fed’s Goolsbee Participates in Panel Discussion
• 1:00 PM ET                   US Treasury to sell $39B in 10-year notes.
• 2:00 PM ET                   FOMC Meeting Minutes
• 2:00 PM ET                   Federal Budget for March…est. (-$197.5B)

• Earnings After the Close: LAKE PCYO RELL RENT

• Needham 23rd Annual Healthcare Conference, 4/8-4/11 (virtual)
• TD Cowen Business Services Summit, 4/9-4/11, in Marina Del Rey
• China PPI, CPI data for March

• Fed Bostic said yesterday its possible Fed growth forecast could rise; CPI coming in at consensus would be a welcome development; expect inflation to decline at slow pace; demand for services still quite high; can’t eliminate the possibility rate cuts move even further out but if inflation pace resumes it could pull cuts forward.

• Ford (F) said it will recall 42,652 Bronco Sport and Escape vehicles in the U.S. due to cracked fuel injectors that may leak and cause a fire, the National Highway Traffic Safety Administration (NHTSA) said.
• Host Hotels & Resorts (HST) files $2B debt securities shelf.
• PriceSmart Inc. (PSMT) Q2 adj EPS $1.31 vs est. $1.25 on revs $1.29B vs est. $1.278B; announces $1.00/shr special dividend.

• EQT Corporation (EQT) upgraded to Market Perform from Underperform at Bernstein.
• Hexcel (HXL) said Tom Gentile appointed CEO & President as Nick Stanage to transition to executive Chairman role while the company reaffirmed its 2024 and mid-term financial guidance.
• Linde (LIN) downgraded to Neutral and International Flavors & Fragrances (IFF) upgraded to Buy at Citigroup in chemicals sector and said new top picks are SHW, APD and OLN as the firm is adjusting Q124 chemical estimates +1% and decreasing FY24 estimates by 1%.
• WD-40 (WDFC) Q2 EPS $1.14 on revs $139.1M, rising 7% y/y; raises FY24 EPS view to $5.00-$5.30 from $4.78-$5.15 (est. $5.12) and boosts FY24 revenue $570M-$600M vs. consensus $577.83M; Sales were up 1% in the Americas, which accounts for nearly half of revenue, while sales rose 16% in Europe, India, the Middle East.
• The American Petroleum Institute reported crude inventories rose by 3.03 million barrels last week.

• Artisan Partners Asset Management Inc. (APAM) preliminary assets under management ("AUM") as of March 31, 2024, totaling $160.4 billion. Artisan Funds and Artisan Global Funds accounted for $77.4 billion of total firm AUM, while separate accounts and other AUM accounted for $83.0 billion.
• Invesco Ltd. (IVZ) preliminary month-end assets under management (AUM) of $1,662.7 billion, an increase of 2.0% versus the previous month-end. The firm delivered net long-term inflows of $2.8 billion in the month. Non-management fee earning net inflows were $1.8 billion and money market net outflows were $1.5 billion.
• Victory Capital Holdings, Inc. (VCTR) reported Total Assets Under Management (AUM) of $170.3 billion, Other Assets of $5.1 billion, and Total Client Assets of $175.5 billion, as of March 31, 2024.
• Virtus Investment Partners, Inc. (VRTS) reported preliminary assets under management of $179.3 billion as of March 31, 2024. The increase from December 31, 2023, primarily reflects market performance and net inflows in retail separate accounts, partially offset by net outflows in institutional accounts and open-ended funds.

• Apple (AAPL) assembled $14 billion of iPhones in India last fiscal year, doubling production in a sign it’s accelerating a push to diversify beyond China.
• Aehr Test Systems (AEHR) Q3 adj EPS ($0.03) vs est. ($0.04) on revs $7.6Mm vs est. $7.61Mm; sees FY revs greater than $65Mm vs est. $65.1Mm and EPS $0.38 vs est. $0.48.
• SGH Corp. (SGH) Q2 adj EPS $0.27 vs est. $0.25 on revs $284.821Mm vs est. $283.79Mm; guides Q3 revs $275-325Mm vs est. $307.86Mm, gr mgn 30.5-33.5%, adj EPS $0.15-0.45 vs est. $0.28.
• Turtle Beach Corp (HEAR) increases share repurchase authorization to $55M.
• AT&T (T), Verizon (VZ), Charter (CHTR), Comcast (CMCSA): The Washington Post reports the FCC plans to cut its broadband subsidy payout to $14 per month, under half of the current rate, in May, leaving many low-income families facing possible price hikes.