Early Look

Monday, January 8, 2024

After the S&P 500, Nasdaq and Dow recorded weekly losses for first time in 10 weeks on Friday, US futures are looking lower ahead of a week filled with potential market moving catalysts. Last week, the S&P fell 1.52%, the Dow lost 0.59%, the Nasdaq shed 3.25% starting off the New Year on a down note. This week brings three major conferences in the Healthcare, Retail, and Technology sectors as many companies offered guidance this weekend ahead of such events. The ICR Conference takes place 1/8-1/10, in Orlando, FL with many retailers and consumer related companies speaking. The JP Morgan 42nd Annual Healthcare Conference, 1/7-1/11, in San Francisco, CA will be a big place for company updates in Healthcare/Biotech (already started seeing updates this weekend). –The tech space has its own catalyst with the Consumer Electronics Show (CES), 1/9-1/12, in Las Vegas, NV. Also, late week, the consumer price index (CPI) is 1/11 and the producer price index (PPI) on Friday 1/12.  Lastly, the start of earnings’ season begins next Friday 1/12 with Financials JPM, Citi, WFC, BLK BX as well as UNH in Healthcare and DAL in Transports. In stock news, Dow component Boeing (BA) tumbles over 8% and supplier SPR over -18% after the FAA said this weekend it will order the temporary grounding of certain Boeing (BA) 737 MAX 9 aircraft operated by U.S. airlines or in U.S. territory requiring immediate inspections. In Asian markets, The Nikkei Index rose 89 points to 33,377, the Shanghai Index fell -41 points to 2,887, and the Hang Seng Index declined -310 points to 16,224. In Europe, the German DAX is up 20 points to 16,614, while the FTSE 100 is down -20 points to 7,669.

• The Dow Jones Industrial Average rose 25.77 points, or 0.07%, to 37,466.11.
• The Nasdaq Composite gained 13.77 points, or 0.09%, to 14,524.07.
• The Russell 2000 Index declined -6.58 points, or 0.34% to 1,951.14.

• 12:00 PM ET                Fed’s Bostic Speaks on the Economic Outlook
• 3:00 PM ET                   Consumer Credit for November

• Earnings After the Close: ACCD JEF

• ICR Conference, 1/8-1/10, in Orlando, FL
• JP Morgan 42nd Annual Healthcare Conference, 1/7-1/11, in San Francisco, CA
• TD Cowen 17th Annual London Energy & Power Conference, 1/8-1/9, in London

• Boot Barn (BOOT) issues preliminary Q3 EPS at or above $1.79 vs. est. $1.72 and revs $520.4M below consensus $527.91M; reports preliminary Q4 SSS down 9.7% (ahead of ICR Conference).
• Helen of Troy (HELE) Q3 adj EPS $2.79 vs. est. $2.75; Q3 sales $549.6M, -1.6% y/y, vs. est. $541M; Q3 adj EBITDA $97.8M, -1.9% y/y vs. est. $103.2M.
• Host Hotels (HST) upgraded to Buy from Underperform at Bank America and raise tgt to $23.
• Several retailers providing guidance ahead of this weeks ICR Exchange conference this morning including LULU, GCO, TLY, WWW

• Boing (BA) shares tumble pre mkt over 8% and supplier Spirit (SPR) -18% after the Federal Aviation Administration said it will order the temporary grounding of certain Boeing (BA) 737 MAX 9 aircraft operated by U.S. airlines or in U.S. territory requiring immediate inspections.
• Alaska Air Group Inc. (ALK) said it will ground its fleet of Boeing (BA) 737 Max-9 jets after a window and a portion of the plane’s fuselage blew out shortly after take-off in Portland on Friday. United Airlines Holdings Inc. (UAL) said it would also ground some aircraft.
• AP Moller-Maersk (AMKBY) mentioned positively in Barron’s noting violence in the Middle East and a drought in the Panama Canal have boosted share prices for shipping companies like AP Moller-Maersk and the risk premium could last a while and lift the shipping companies long-term,
• Spirit AeroSystems (SPR) manufactured and initially installed the fuselage part on a brand-new Boeing (BA) 737 Max 9 jet that suffered a blowout on Friday, but Boeing also has a key role in the usual completion process – Reuters.
• United States Steel Corp. (X) is disputing allegations that it breached its labor agreement with the United Steelworkers union by failing to provide information about critical developments of the company’s sale to a Japanese buyer.
• Saudi Aramco cut the official selling price for February Arab Light to Asia by $2 a barrel from January to $1.50 a barrel over Oman/Dubai quotes, a level last seen for November 2021.

• LoanDepot (LDI) was hit with a cybersecurity incident, causing it to shut down certain systems; the company said that an investigation was ongoing, but it had determined an unauthorized third party accessed certain systems and encrypted data.

• Akoya Biosciences (AKYA) sees preliminary Q4 revenue between $25.5M-$26.5M vs. est. $26.3M, and preliminary 2023 revenue between $95.6M-$96.6M vs. est. $96.6M.
• Exact Sciences (EXAS) said it sees prelim Q4 revenue $645.5M-$647.5M vs. consensus $631.52M.
• Exelixis (EXEL) guides preliminary FY23 revenue $1.83B vs. est. $1.84B and sees FY24 revenue of $1.83B-$1.93B, vs. consensus $2.06B.
• Fresenius Medical Care (FMS) said it expects to get about 500M euros ($547 million) from the sale of three businesses–either agreed upon or closed–as part of a portfolio-simplification drive. These assets include 127 facilities and more than 4,500 employees, and generated revenue of about EUR600 million in 2022, the company said.
• Hologic (HOLX) said it expects to report Q1 revenues of about $1.01B, down -(5.7%) compared to the prior year period, or (6.4%) in constant currency vs. est. $978.9M.
• Novartis (NVS) said its Scemblix drug met its primary goals in a late-stage clinical trial for newly diagnosed patients with chronic myeloid leukemia; said Scemblix showed superior major molecular response compared to approved standard-of-care treatments that known as tyrosine kinase inhibitors at week 48 of treatment.
• Ultragenyx (RARE) reports preliminary 2023 revenue $430M-$435M vs. consensus $435.9M
• Several other healthcare companies issue guidance ahead of the JP Morgan Healthcare conference this weekend including REGN, IRWD, NUVL, this morning.

• Fastly (FSLY) upgraded to sector perform from underperform at RBC Capital and raise tgt to $18 from $12 citing re-accelerated organic growth despite tough macro-economic conditions under new CEO Todd Nightingale.
• Getty Realty (GTY) files automatic mixed securities shelf.