Early Look
Monday, March 4, 2024
Futures |
Up/Down |
% |
Last |
Dow |
-104.00 |
0.27% |
39,038 |
S&P 500 |
-8.25 |
0.17% |
5,137 |
Nasdaq |
-18.50 |
0.10% |
18,320 |
U.S. futures pulling back to start the week, edging slightly lower after closing at all-time highs last week. Friday kicked off trading in March, and all we saw was more of the same, stocks surging and setting new all-time highs, with the S&P 500 (15th this year alone), Nasdaq Comp, and Philly semi-index (SOX) all in unchartered territory. Technology stocks rallied on continued AI-related enthusiasm, while a fall in Treasury yields provided further support for Smallcaps as the Russell 2000 rose 3% last week. For the week, the S&P 500 gained 0.95%, the Nasdaq climbed 1.74%, and the Dow fell 0.11% while the Russell 2000 ends at 2076.4, its highest close since March 2022. The Nasdaq 100 is now up 70% from January 2023 (thank you NVDA, AMZN, META, MSFT). The U.S. 10-Year Treasury yield, after rising as high as 4.3540% on February 22, is now back below 4.20%. Gold also posted its highest closing level in its history on Friday ($2,095.70 an ounce). While last week’s in-line PCE data helped push markets higher, attention turns to payroll figures this week.
Not much expected today but several Fed speakers are to weigh in this week, including Federal Reserve Chair Jerome Powell who is expected to double down on his message that there’s no rush to cut interest rates, especially after fresh inflation data showed that price pressures persist. Powell is headed to Capitol Hill, where he’ll deliver his semiannual monetary policy testimony to a House committee on Wednesday and a Senate panel on Thursday.
In Asian markets, The Nikkei Index closed above 40K for the first time ever, rising 198 points to settle at 40,109, the Shanghai Index gained 12 points to 3,039, and the Hang Seng Index edged higher 6 points to 16,595. In Europe, the German DAX is down -27 points to 17,707, while the FTSE 100 fell -37 points to 7,645. Bitcoin is above $65k this morning and currently less than 5% from its all-time intraday high of $68,990 made on 11/10/21.
Market Closing Prices Yesterday
- The S&P 500 Index jumped 40.81 points, or 0.80%, to 5,137.08.
- The Dow Jones Industrial Average rose 90.99 points, or 0.23%, to 39,087.38.
- The Nasdaq Composite surged 183.02 points, or 1.14%, to 16,274.94.
- The Russell 2000 Index advanced 21.55 points, or 1.05% to 2,076.39.
Economic Calendar for Today
- 11:00 AM ET Fed’s Harker Remarks on Economic Impact of Higher Education
Earnings Calendar:
- Earnings Before the Open: LL LNSR MDV SE SOHU
- Earnings After the Close: AKYA AVAV CARA CRGY CVGI GTLB NKTR PAY RBOT SFIX SLND STXS TDUP WISH
Other Key Events:
- Goldman Sachs 12th Annual Latin America Financials Conference, 3/4-3/5, in London
- JMP Securities Technology Conference, 3/4, in San Francisco
- Morgan Stanley Technology, Media & Telecom Conference, 3/4-3/6, in San Francisco, CA
- Morgan Stanley Energy & Power Conference, 3/4-3/7 in New York
- TD Cowen 44th Annual Health Care Conference, 3/4-3/6, in Boston, MA
- China Caixin Services PMI for February
Macro |
Up/Down |
Last |
Nymex |
-0.45 |
79.52 |
Brent |
0.24 |
83.31 |
Gold |
-4.90 |
2,090.70 |
EUR/USD |
0.0018 |
1.0855 |
JPY/USD |
0.33 |
150.43 |
10-Year Note |
+0.031 |
4.213% |
World News
- United States affirmed at AA+ by Fitch; outlook stable.
- OPEC+ producers to continue cuts of 2.2 million bpd; Saudi Arabia said it would extend its voluntary cut of 1 million barrels per day (bpd) through the end of June; Russia will cut oil production and exports by an extra 471,000 bpd in the second quarter.
Sector News Breakdown
Consumer
- Macy’s (M) confirmed this weekend that it has received a revised, unsolicited, non-binding proposal from Arkhouse Management and Brigade Capital Management to acquire all the outstanding shares of the company for $24.00 per share in cash.
- Tesla (TSLA) said it sold 60,365 China-made vehicles In Feb
- S&P MidCap 400 constituent Deckers Outdoor Corp. (DECK) will replace Zions Bancorporation (ZION) in the S&P 500 effective prior to the open of trading on Monday, March 18, to coincide with the quarterly rebalance and ZION will replace SMCI in the S&P MidCap 400.
- America’s Car Mart Inc (CRMT), TrueBlue Inc. (TBI), Forrester Research Inc. (FORR), Oil States International Inc. (OIS), Digital Turbine Inc (APPS), Consensus Cloud Solutions Inc. (CCSI) and iRobot Corp. (IRBT) will be removed from the S&P SmallCap 600.
- Tata Motors said it plans to demerge into two separate listed companies to refine focus on the passenger and electric vehicle segments, it said in an exchange filing on Monday. The commercial vehicles business and its related investments will be spun in one entity and the passenger vehicles (PV) businesses, including electric vehicles (EV), Jaguar Land Rover and related investments, in another entity.
- Vista Outdoor Inc. (VSTO) today announced that its Board of Directors rejected an unsolicited indication of interest received on February 19, 2024, from MNC Capital pursuant to which MNC expressed interest in acquiring Vista Outdoor in an all-cash transaction for $35.00 per Vista share.
Energy, Industrials and Materials
- S&P SmallCap 600 constituent Applied Industrial Technologies Inc. (AIT) will replace Medical Properties Trust Inc. (MPW) in the S&P MidCap 400 effective prior to the open of trading on Monday, March 18, to coincide with the quarterly rebalance and MPW will replace AIT in the S&P SmallCap 600.
- Magnolia Oil & Gas Corp. (MGY), Air Lease Corp. (AL), MGE Energy Inc. (MGEE) will be added to the S&P SmallCap 600 effective prior to the open of trading on Monday, March 18, to coincide with the quarterly rebalance.
- Boeing Co. (BA) confirmed it’s in discussions to acquire Spirit AeroSystems Holdings Inc. (SPR), a move that would reclaim control of its struggling former aerostructures unit and the main supplier at the center of numerous quality issues affecting the 737 Max airliner.
- General Electric Co. (GE) mentioned positively in Barron’s saying the company is nearing the end of its recovery period after falling 80% from its 2000 peak in 2018. A looming corporate breakup is a sign of optimism for investors, and buying GE ahead of the final phase of its split could be a lucrative payoff.
- United Parcel Service Inc. (UPS) mentioned positively in Barron’s noting shares have fallen 7% since the company’s disappointing 2024 guidance at the end of January. After the selloff, UPS looks like a promising buy as the package-delivery service seeks to cut costs, increase automation, and boost volumes to offset front-end loaded expenses from its Teamsters union contract.
- United Rentals, Inc. (URI) said it has entered into a definitive agreement to acquire Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC from Platinum Equity for approximately $1.1 billion in cash.
Financials
- S&P 500 constituent Intuit Inc. (INTU) will replace Exelon Corp. (EXC) in the S&P 100. Exelon is no longer representative of the mega-cap market space. Exelon will remain in the S&P 500.
- New York Community Bancorp. (NYCB) had its credit grade cut to junk by Fitch Ratings, and Moody’s Investors Service lowered its rating even further.
Healthcare
- Akero Therapeutics (AKRO) said that extending treatment with its experimental drug for the liver disease known as MASH from six months to two years resulted in better outcomes for patients — most notably reductions in liver scarring at a rate three times higher than placebo without worsening other symptoms. The mid-stage study of the Akero drug called efruxifermin achieved its main goal in September 2022.
- Iovance Biotherapeutics, Inc. (IOVA) announced that the U.S. FDA lifted a partial clinical hold placed on the registrational IOV-LUN-202 trial investigating LN-145 TIL cell therapy in non-small cell lung cancer. Iovance developed additional safety measures and monitoring in collaboration with the FDA/independent committee.
- BioVie (BIVI) shares fall after saying it sold 21 million shares, along with warrants to buy up to 10.5 million shares, at a combined price of $1.00 per share and associated warrant, well below Friday’s closing price of $1.89.
- Cellectar Biosciences (CLRB) announced that Iopofosine I 131 in combination with external beam radiation therapy was safe and tolerated in a SPORE Grant supported investigator-initiated Phase 1 clinical trial.
- S&P SmallCap 600 constituents Cytokinetics Inc. (CYTK) will replace Calix Inc. (CALX) in the S&P MidCap 400 effective prior to the open of trading on Monday, March 18, to coincide with the quarterly rebalance and CYTK will replace CALX in the S&P SmallCap 600.
- Revance Therapeutics, Inc. (RVNC) announced a proposed underwritten public offering of $100M of its common stock.
Technology, Media & Telecom
- S&P MidCap 400 constituents Super Micro Computer Inc. (SMCI) will replace Whirlpool Corp. (WHR) in the S&P 500 effective prior to the open of trading on Monday, March 18, to coincide with the quarterly rebalance and WHR will replace SMCI in the S&P MidCap 400.
- Box Inc. (BOX), BGC Group Inc. (BGC), BlackLine Inc. (BL), will be added to the S&P SmallCap 600 effective prior to the open of trading on Monday, March 18, to coincide with the quarterly rebalance.
- Sea Limited (SE) Q4 EPS loss (-$0.19) vs. est. loss (-$0.25); Q4 revs rose 4.8% y/y to $3.62B vs. est. $3.55B; Total gross profit was US$1.5 billion, as compared to total gross profit of US$1.7 billion for the fourth quarter of 2022.
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.