Early Look

Wednesday, January 24, 2024

S&P futures (Spuz) spike overnight, topping 4,900 for the first time ever after strong subscriber results helped lift Netflix (NFLX) shares more than 10% this morning, the first tech company to deliver big results. In the semi chip space, ASML rises overnight on strong results/orders, while TXN shares slide on a weaker outlook as Nasdaq futures surge. Tonight, we get earnings from TSLA which are down over -15% thus far in January alone. The S&P 500 index posted its 3^rd straight record closing high, edging higher +0.3% in another slow methodical climb after breaking above prior record highs late last week. Industrial metals looking higher (copper prices) after China cut the amount of cash that banks must hold as reserves as hopes for more stimulus from Beijing are also supporting positive sentiment. China also tripled individual investment quotas under the cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area, the Chinese central bank said. In Asian markets, The Nikkei Index fell -291 points to 36,226, the Shanghai Index jumped 49 points of 1.8% to 2,820, and the Hang Seng Index surged 545 points to 15,899. In Europe, the German DAX is up 200 points to 16,826, while the FTSE 100 rises 32 points to 7,517. In politics, Former President Trump easily won the New Hampshire GOP primary last night topping Nikki Haley. Another strong start for US markets as the momentum continues to push market limits ahead of GDP data tomorrow, PCE inflation data Friday and the FOMC policy meeting next week.

• The Dow Jones Industrial Average fell -96.36 points, or 0.25%, to 37,905.45.
• The Nasdaq Composite gained 65.66 points, or 0.43%, to 15,425.94.
• The Russell 2000 Index declined -7.11 points, or 0.36% to 1,976.27.

• 9:45 AM ET                  S&P Global manufacturing PMI, Jan-Flash
• 9:45 AM ET                  S&P Global Services PMI, Jan-Flash
• 1:00 PM ET                   US Treasury to sell $58B in 5-year notes.
• 10:30 AM ET                Weekly DOE Inventory Data

• Earnings After the Close: ALRS AMP AMTB BRKL BWB CACI CASH CATY CBAN CCI CNS CNXC COLB CSX EGBN ETD FBMS HBNC HXL IBM INBK KNX LBRT LOB LRCX LVS NOW PFBC PKS PLXS RJF RLI RMD SLG SLM STX TSLA URI WASH WRB

• JP Morgan 2nd Annual Hyper Growth Private Technology Conference 1/24-1/25, in San Francisco, CA
• TD Cowen Annual Global Mining Conference, 1/23-1/25, in Toronto, CA

• Uber (UBER) downgraded to Hold from Buy at Gordon Haskett.

• Canadian National Railway (CNI) said it expects to deliver diluted adjusted EPS growth of approximately 10%; expects to invest approximately c$3.5B in its capital program, net of amounts reimbursed by customers; reiterates its longer-term financial perspective.
• Covenant Logistics (CVLG) Q4 adj EPS $1.07 vs est. $1.03 on revs $273.985Mm vs est. $265.83Mm
• One Gas (OGS) narrows FY23 EPS view to $4.12-$4.16 from $4.06-$4.22 (est. $4.14) as net income is now expected to be in the range of $229M-$233M; capital investments for 2023 are expected to be approximately $725M; raises quarterly dividend 1.5% to 66 cents/share.
• Steel Dynamics (STLD) Q4 EPS $2.61 vs. est. $2.66; Q4 revs $4.2B vs. est. $4.14B; Q4 steel operations was $365Mm, representing a 24% sequential decline, based on seasonally lower long product steel shipments, and flat rolled steel metal spread compression; says market dynamics are in place to support increased demand across operating platforms in 2024.
• Coal ETF launches today: Range Global Coal Index ETF (COAL).

• First Horizon (FHN) authorizes a $650M share repurchase program.
• Hanmi Financial (HAFC) Q4 EPS $0.61 vs. est. $0.59; Q4 net interest income (NII) fell 3.1% or -$1.8M to $53.1M from $54.9M from Q3 primarily due to an increase in the cost of interest-bearing deposits.
• National Bank Holding (NBHC) Q4 EPS $0.87 vs est. $0.82 on NII $91.2Mm vs est. $87.31Mm.
• Trustmark Corp. (TRMK) Q4 EPS $0.59 vs. est. $0.57; Q4 Net interest income (NII) FTE -6.7% y/y to $140.0M and net interest margin (NIM) FTE 3.25% vs. 3.66% y/y.
• Veritex Holdings (VBTX) Q4 adj EPS $0.58 vs est. $0.62 on NII $95.5Mm vs est. $98.12Mm, NIM 3.31%.

• Elevance Health (ELV) Q4 adj EPS $5.62 vs. est. $5.64; Q4 revs $42.5B vs. est. $42.09B; raises quarterly dividend 10.1% to $1.63 per share; sees FY24 adjusted EPS greater than’$37.10 vs. consensus $37.05; sees 2024 total operating rev flat to low-single digit growth; Q4 medical expense ratio 89.2%.
• Figs Inc. (FIGS) upgraded to Equal Weight from Underweight at Barclays based: on 1) inventory inflecting positively in 3Q23 and should continue to get better in 4Q23 and FY24; 2) improving brand heat based on our checks; and 3) increasing revenue contribution from high-growth segments.
• Intuitive Surgical (ISRG) Q4 adj EPS $1.60 vs est. $1.48 on revs rose 17% y/y to $1.93B vs est. $1.888B; instruments and accessories revenue increased 22% in the period on the back of 21% growth in procedure volume from its da Vinci systems and a pricing benefit.
• Walgreens Boots (WBA) is evaluating options, including the sale of Shields Health Solutions, a specialty pharmacy business it purchased three years ago valued at $4B, according to Bloomberg.

• ASML (ASML) Q4 net profit rose 9% to 2.0B euros ($2.2 billion) on sales of 7.2B euros, topping expectations of a 1.87B euros net profit on revenue of 6.9B; registered orders of more than 9 billion euros in the quarter – more than triple third-quarter levels – but kept its outlook for flat sales growth in 2024.
• SAG AG (SAP) said that it will restructure roles for 8,000 jobs to focus on growth in artificial intelligence (AI)-driven business areas; said it will spend 2 billion euros ($2.2 billion) on the program; Operating profit rose a currency-adjusted 13% last year, to 8.7 billion euros, beating predictions.
• AT&T (T) Q4 adj EPS $0.54 vs. est. $0.56; Q4 revs $32B vs. est. $31.48B; sees FY24 adjusted EPS $2.15-$2.25, below consensus $2.46 and FY24 adjusted EBITDA up 3%; added 526,000 net monthly bill-paying wireless phone subscribers in Q4, surpassing expectations for 495,830 additions; sees FY FCF $17B-$18B vs. est. $17.25B.
• Texas Instruments (TXN) Q4 EPS $1.49 vs. est. $1.47; Q4 revs $4.08B vs. est. $4.12B; forecasts Q1 revs $3.45B-$3.75B, below consensus $4.09B and sees Q1 EPS $0.96-$1.16 vs. est. $1.41; said chip inventory builds up in its key markets with initial signs of weakness in the automotive sector.
• BlackBerry (BB) announces private offering of $160M of convertible senior notes.
• eBay Inc. (EBAY) said it will cut about 1,000 jobs, or 9% of its full-time workforce, in order to better position the company for future sustainable growth.