Morning Preview: March 02, 2022

Auto PostDaily Market Report

Early Look

Wednesday, March 2, 2022









S&P 500










U.S. futures are looking higher, tracking European markets in an attempt to rebound from sharp declines on Tuesday amid reports the Kremlin said Russia was ready to resume negotiations with Ukraine. Stock markets tumbled yesterday following additional imposed sanctions by the U.S. and its allies on Russia due to its invasion in Ukraine. Last night, President Biden said that Vladimir Putin will have to “pay a price” for Russia’s invasion into Ukraine at his first State of the Union address to Congress. Biden announced as part of the U.S. response to the Russian invasion that the U.S. is closing its airspace to Russian planes. The harsh financial sanctions on Russia, crippling its financial system, stock market and currency has also wreaked havoc on commodity prices with oil, industrial metals and grains all surging over the last week on disruption concerns. Later this morning, Powell will testify Wednesday at 10:00 AM before the House Financial Services Committee and at the same time on Thursday before the Senate Banking Committee, one of the Fed chair’s twice yearly congressional appearances coinciding with publication of a semiannual Fed review of monetary policy. In Asian markets, The Nikkei Index dropped -451 points to 26,393, the Shanghai Index was down a few points to 3,484, and the Hang Seng Index declined -1.84% or -417 points to 22,343. In Europe, the German DAX is flat just above the 13,900 level, while the FTSE 100 is up 0.7% to 7,385. WTI crude oil is higher by 4.7% to $108.31, and Brent rises 4.5% to $109.80 (overnight high just above $113 per barrel). Commodity traders remain concerned that Russian energy exports will be disrupted by sanctions on Moscow.


Market Closing Prices Yesterday

·     The S&P 500 Index dropped -67.68 points, or 1.55%, to 4,306.26

·     The Dow Jones Industrial Average fell -597.65 points, or 1.76%, to 33,294.95

·     The Nasdaq Composite tumbled -218.94 points, or 1.59%, to 13,532.46

·     The Russell 2000 Index declined -39.58 points, or 1.93% to 2,008.51


Economic Calendar for Today

·     7:00 AM ET         MBA Mortgage Applications Data

·     8:15 AM ET         ADP Employment Change for February

·     10:00 AM ET       Fed Chairman Powell testifies to Congress in semi-annual testimony

·     10:30 AM ET       Weekly DOE Inventory Data


Earnings Calendar:

·     Earnings Before the Open: AMRX, ANF, BHG, BWEN, DCI, DIN, DLTR, DY, HAYW, ICPT, JNCE, PDCO



Other Key Events:

·     BMO Capital Global metals & Mining Conference, 2/27-3/2, in Florida

·     Credit Suisse Annual Energy Summit, 2/27-3/2 in Colorado

·     Credit Suisse London Global Healthcare Conference, 2/28-3/2, in London, England

·     Deutsche Bank ESG Conference (virtual), 2/28-3/2

·     Jefferies Fintech & Payments Summit (virtual), 3/1-3/2

·     KBW Fintech Payments Conference, 3/1-3/3, in New York

·     Stephens West Coast Bank Trip (virtual), 2/28-3/2

·     UBS Semiconductor Bus tour, 3/1-3/2, in California

·     China’s Caixin Services PMI for February





















10-Year Note





World News

·     Russia said it had seized its biggest city yet in Ukraine on Wednesday, while stepping up its lethal bombardment of the main cities that its invasion force has so far failed to tame in the face of strong Ukrainian resistance.

·     The Canadian dollar rises as oil prices jump and the Bank of Canada is expected to start raising interest rates in a policy decision later this morning; the USD/CAD falls 0.2% to 1.2715 as the BOC is likely to raise its benchmark rate by 25 basis points to 0.50%


Sector News Breakdown


·     Nordstrom (JWN) shares jump over 30% after 4Q EPS $1.23 vs est. $1.02 on sales $4.35B vs est. $4.39B, qtrly GMV +24%; guides FY revs +5-7% incl retail sales and credit card revs vs est. +3.7% and Ebit margin 4.6-6.0%; says 4Q inventory levels higher than planned but expects to reduce inventory relative to sales during 1Q – inventory up 19% while sales were down 1%

·     Urban Outfitters (URBN) 4Q EPS $0.41 vs est. $0.50 on sales $1.33B, qtrly retail comps +14%, total inventory +39.1%

·     PLBY Group (PLBY) 4Q EPS ($1.33) vs est. ($0.49) on revs $247Mm vs est. $235.3Mm, says loss largely driven by stock-based comp and non-cash charges

·     Ross Stores (ROST) authorizes $1.9B stock buyback and raises dividend; Q4 EPS $1.04 vs. est. $0.97; q4 sales $5.0B vs. est. $4.96B; sees 2023 comparable store sales to be flat to up 3% versus a 13% gain in fiscal 2021

·     Scientific game Corp (SGMS) board authorizes $750M share buyback; Q4 EPS $0.95 vs. est. $0.13; Q4 revs $580M vs. est. $558.5M; to be rebranded “light & wonder” and new symbol will be “LNW”; expects to significantly de-lever, targeting net debt leverage ratio range of 2.5x to 3.5x

·     B&G Foods (BGS) Q4 adj EPS $0.39 vs est. $0.42 on revenue $571.8M vs est. $591.6M; sees FY adj EPS $1.70-$1.85 vs est. $2.03 on revenue $2.07B-$2.125B vs est. $2.11B; gross profit in the qtr was impacted by higher-than-expected input cost inflation that is expected to continue to have a significant industry-wide impact in FY22

·     Dutch Bros (BROS) Q4 EPS $0.02, in-line with ests and revs $140.1M vs. est. $135M; sees FY22 revenue $700M-$715M vs. est. $692.6M; sees 2022 same shop sales growth in mid-single digits; sees 2022 capex in range of $175M-$200M and sees total system shop openings at least 30 in Q1

·     Grocery Outlet (GO) 4Q adj EPS $0.20 vs est. $0.20 on revs $782.7Mm vs est. $778.4Mm; guides FY net sales $3.33-3.38B vs est. $3.4B, comps +4-5%, gross margin about 30.6%, adj EBITDA $210-217Mm vs est. $222.5Mm and adj EPS $0.92-0.97 vs est. $1.02

·     GrowGeneration Corp. (GRWG) Q4 EPS loss (-$0.03) vs. est. loss (-$0.09); Q4 revs $90.6M vs. est. $89.09M; sees FY22 revenue $415M-$445M vs. est. $478.11M; sees FY22 adjusted EBITDA in the range of $30M-$35M; same-store sales at 26 locations decreased (-12.3%) in Q4

·     Inter Parfums (IPAR) Q4 EPS loss (-$0.04) vs. est. loss (-$0.20); Q4 revenue $210.7M vs. est. $210.8M; doubles quarterly dividend to 50c per share; affirms guidance

·     PAR Technology (PAR) 4Q adj EPS ($0.36) vs est. ($0.38) on revs $81.6Mm vs est. $76Mm

·     Purple Innovation (PRPL) Q4 adj EPS loss (35c) vs. est. loss (27c); Q4 revs $186.4M vs. est. $178.99M; names new CEO; sees Q1 revs $125M-$135M below consensus $195.66M and sees Q1 adjusted EBITDA ($26M)-($20M); sees FY22 revs $790M-$830M vs. est. $808.21M

·     The Beachbody Company, Inc. (BODY) Q4 EPS ($0.48) vs est. ($0.19) on revenue $216.3M vs est. $167.9M; announced a strategy to accelerate path to profitability that includes consolidating its streaming fitness and nutrition offerings into a single platform, reduce headcount by ~10% in Q1, and reduce cash use from operations by ~$110M in FY22; sees Q1 revenue $170M-$180M vs est. $200.3M, adj EBITDA ($25M)-($20M) vs est. ($24.25M);

·     WW International (WW) Q4 EPS $0.42 vs est. $0.36 on revenue $275.8M vs est. $279.3M; sees Q1 EPS ($0.31)-($0.26) vs est. ($0.12) on revenue about $300M vs est. $343.6M


Energy, Industrials and Materials

·     First Solar (FSLR) shares slide -15%; Q4 EPS $1.23 vs. est. $1.06; Q4 revs $900M vs. est. $917.6M; guides year sales $2.4B-42.6B vs. est. $2.73B; and sees year EPS flat to up $0.60 vs. est. $1.94; year-end 2022 ending net cash balance is projected to be in range of $1.1B-$1.35B; sees 2022 CAPEX $850M to $1.1B vs. est. $801.5M

·     Exxon Mobil (XOM) said it would exit Russia oil and gas operations that it has valued at more than $4 billion and halt new investment as a result of Moscow’s invasion of Ukraine.

·     Expeditors International (EXPD) disclosed that the previously announced cyberattack it suffered will have a “material adverse impact” on its business, revenue, expenses, cash flow and reputation.

·     Hannon Armstrong (HASI) files automatic mixed securities shelf

·     Plug Power (PLUG) Q4 EPS ($0.33) vs est. ($0.11) on revenue $161.9M vs est. $157.3M; reaffirms FY22 revenue goals of $900M-$925M (est. $898.2M), 2025 goals for $3B

·     Southwest Gas (SWX) said it plans to spin off a construction business that billionaire investor Carl Icahn has pushed the utility to sell



·     SoFi Technologies (SOFI) Q4 EPS ($0.15) vs est. ($0.17) on adj revenue $279.9M vs est. $279.3M; added 523K new members, +39% sequentially, and 906K total products, +51% sequentially; Q1 guidance for adj revenue $280M-$285M (vs est. $306.3M) includes the negative impact of the unexpected extension of the federal student loan payment moratorium to May 1, 2022; full-year revs are expected to be $1.57B vs est. $1.45B with adj EBITDA $180M vs est. $162.2M

·     ZipRecruiter, Inc. (ZIP) Q4 EPS $0.16 vs est. $0.12 on revenue $220M vs est. $207.1M; authorized a $100M share repurchase program; sees Q1 revenue $217M-$223M vs est. $208.9M, FY revenue $878M-$892M vs est. $846.1M



·     Gilead Sciences Inc. (GILD) said it received a complete response letter from the FDA regarding its application for an experimental HIV drug lenacapavir, a long-acting HIV-1 capsid inhibitor, for people with multi-drug resistant HIV. The FDA raised questions about the use of a specific type of vial and whether it’s compatible with the drug solution

·     Abbott Laboratories (ABT) recalled some Similac PM 60/40 cans and cases produced at a Michigan facility, after an infant who was exposed to the powdered baby formula died, the U.S. FDA said on Monday; recall ABT recalled certain Alimentum, Similac and EleCare baby formulas a few days earlier

·     Bionano Genomics, Inc. (BNGO) 4Q revs $6.3Mm vs est. $5.6Mm; guides FY revs $24-27Mm vs est. $28Mm

·     Cara Therapeutics (CARA) files $300M mixed securities shelf

·     ChemoCentryx, Inc. (CCXI) Total revenue of $32.2M in 2021 with $2.3M in Q4; TAVNEOS net product sales of approximately $1.0M in Q4 2021 following US FDA approval in ANCA-associated vasculitis; plans to initiate clinical development for TAVNEOS in lupus nephritis and to meet with FDA on the path forward in severe hidradenitis suppurativa and C3 glomerulopathy in 2022

·     GoHealth (GOCO) shares fall -14% as guides Q4 revenue $425M-$470M well below consensus $615.8M and sees Q4 adjusted EBITDA ($5.5M) to $8.5M.

·     Jazz Pharmaceuticals (JAZZ) Q4 adj EPS $4.21 vs. est. $3.64; Q4 revs $896.7M vs. est. $864.23M; sees FY22 EPS $16.00-$17.00 vs. est. $17.47; sees FY22 revs $3.46B-$3.66B vs. est. $3.64B

·     NanoString Technologies (NSTG) 4Q revs $42Mm vs est. $41.5Mm; guides FY revs $170-180Mm vs est. $179.2Mm, adj gr margin 56-58% and adj EBITDA loss $55-65Mm vs est. loss 83.4Mm

·     PetIQ, Inc. (PETQ) 4Q GAAP EPS ($0.49) vs est. ($0.36) on revs $196.6Mm vs est. $170.6Mm; sees 1Q net sales approx $270Mm vs est. $261.5Mm; guides FY net sales approx $985Mm vs est. $981.8Mm

·     Sarepta (SRPT) Q4 adj EPS ($0.77) vs est. ($1.13) on revenue $201.5M vs est. $198.6M; sees FY22 total revenue over $880M vs est. $908.5M

·     Senseonics Holdings (SENS) 4Q EPS $0.19 vs est. ($0.03) on revs $4.0Mm vs est. $3.98Mm; guides FY net revs $14-18Mm vs est. $20.8Mm


Media & Telecom

·     AMC Entertainment (AMC) Q4 adj EPS loss (-$0.11) vs. est. loss (-$0.26); Q4 revs rose to $1.17B vs. est. $1.09B; net loss for q4 improved to $134.4 million, including a non-cash impairment charge related to long lived assets of $77.2 million; currently has liquidity availability of more than $1.8 billion (including cash and undrawn revolver lines

·     ContextLogic Inc. (WISH) Q4 EPS in-line (9c) on revenue that fell -64% YoY to $289M vs est. $309.8M; the board approved a restructuring plan that will reduce headcount by ~15% and cost ~$3M in severance in addition to spending up to $21M to exit certain leases and related non-cash impairments of lease assets to achieve approx. $32M-$37M in annualized cost savings

·     Cardlytics, Inc. (CDLX) 4Q adj EPS ($0.15) vs est. ($0.42) on revs $90Mm vs est. $76.6Mm, qtrly MAUs 175.4Mm +7.2%, qtrly ARPU $0.49



· (CRM) Q4 EPS $0.84 vs. est. $0.75; Q4 revs rose 26% to $7.33B vs. est. $7.24B; said raising FY23 revenue guidance to $32.1 billion at the high-end of range, with non-GAAP operating margin of 20%, and operating cash flow growth of 22% y/y; guides Q1 revs $7.37B-$7.38B vs. est. $7.26B and sees Q1 EPS $0.93-$0.94 vs. est. $0.99

·     Arlo Technologies, Inc. (ARLO) 4Q adj EPS $0.04 vs est. ($0.03) on revs $142.9Mm vs est. $134.9Mm; guides 1Q revs $110-120Mm vs est. $95.5Mm and adj EPS loss $0.00-0.06 vs est. loss $0.05

·     Hewlett-Packard Enterprises (HPE) Q1 adj EPS $0.53 vs. est. $0.46; Q1 revs $6.96B vs. est. $7.03B; sees Q2 EPS $0.41-$0.49 vs. est. $0.44; raises FY22 adj EPS guidance $2.03-$2.17 from $1.96-$2.10 prior (est. $2.19) and reiterates free cash flow guidance of $1.8 to $2.0B

·     Jamf Holding Corp. (JAMF) 4Q adj EPS $0.02 vs est. $0.01 on revs $103.8Mm vs est. $100.3Mm; guides 1Q revs $104.5-106.5Mm vs est. $103.8Mm and adj op Inc $18-22Mm


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

Live Trading

Open an Account

Paper Trading