Mid-Morning Look: March 10, 2022

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Mid-Morning Look

Thursday, March 10, 2022






DJ Industrials




S&P 500








Russell 2000






U.S. stocks are giving back some of yesterday’s outsized gains though remain well off their lowest levels from earlier in the week. Oil prices are continuing their volatile swings as they are moderately higher today after falling 12% yesterday, though they had steeply reversed back towards yesterday’s settlement after hitting morning highs that approached $115. Travel names opened among the S&P’s worst decliners on the higher prices but have shed their losses now that oil has pared gains. Precious metals and commodity prices are bouncing higher again after yesterday’s slide to lift metal and materials stocks. On the macroeconomic front, February CPI showed prices climbed 7.9% from 2021, more than January’s 7.5% increase that was already the highest reading since February 1982. Across the Atlantic, the ECB accelerated the unwinding of its asset purchase program that is now scheduled to end in Q3 and updated their 2022 forecast from December with inflation now forecasted to be 5.1% from the previous 3.2% outlook and a reduced GDP growth outlook for 2022 and 2023 from the prior meeting.


Economic Data

·     US CPI MoM Actual 0.8% (Forecast 0.8%, Previous 0.6%); YoY +7.9% (Forecast 7.9%, Previous 7.5%)

·     US Initial Jobless Claims Actual 227k (Forecast 217k, Previous 215k)







WTI Crude















10-Year Note





Sector Movers Today

·     Hardware, Components & Services; ANET upgraded to OW from EW with $160 tgt at Wells Fargo while the firm downgraded CSCO to EW from OW with $65 tgt saying while remain positive on Cisco’s execution, backlog expansion, Webscale traction, and subscription renewal set-up looking forward, repositioning ratings to reflect a belief that a shift back toward growth vs. value; NTAP upgraded to Overweight from Equal Weight at Barclays

·     Asset managers: AB preliminary assets under management decreased to $739 billion during February 2022 from $751 billion at the end of January; APAM preliminary assets under management as of February 28, 2022, totaled $159.8 billion; BEN preliminary month-end assets under management of $1,486.9 billion at February 28, 2022, compared to $1,521.8 billion at January 31, 2022; IVZ preliminary month-end assets under management (AUM) of $1,531.4 billion, a decrease of 1.3% versus previous month-end; VRTS reported preliminary assets under management (AUM) of $183.7 billion as of February 28, 2022; TROW prelim AUM at February end $1.54T

·     Consumer Staples; PPC upgraded to Outperform at BMO and up tgt to $30 from $28 as believe the fundamentals justify the upside, while the downside should be protected by share repurchases from its strong cash flow, to increase JBS’s ownership to 90%; MNST 2022-2023 EPS estimates reduced by 2% at Stifel reflecting greater inflation, mainly aluminum, FX, and lower sales for Ukraine/Russia exposure (<2% of sales) and higher U.S. gas prices; HRL upgraded to Buy at Argus with $57 tgt saying although Hormel continues to face challenges from rising costs and supply-chain disruptions, we expect it to offset inflationary pressures through price hikes and improved efficiency; COCO Q4 EPS (6c) matched consensus on revs $87M vs est. 78.3M, sees FY22 sales $440-445M ahead of est. $427M



·     AMZN +5%; board of directors approved a 20-for-1 split of company’s common stock to be in effect on June 6th and to buy back up to $10B of company’s stock

·     CRWD +15%; delivered a beat-and-raise quarter with ARR up 65% YoY, RPO up 67%, total customers up 65% YoY to 16,325, and a strong but prudent 2023 revenue guide of 47-49% growth

·     MQ ; as reported beat/raise 4Q ests with 4Q/1Q ~13/17% above consensus, and anticipates at least mid-30% Y/Y revenue growth in CY22 (implies revs ~6% above consensus)

·     FCEL +10%; Q1 adj EPS (4c) loss vs est. (5c) on revenue that more than doubled to $31.8M vs est. $26.7M

·     SWIM +7%; reported a mixed Q4 with EPS (5c) vs est. 6c profit on sales $138.9M vs est. $130.6M but strong guidance with Q1 sales expected $170-180M and FY sales $850-880M, well above estimates of $162.1M and $735.2M



·     ASAN -23%; Q4 revenue beat of $6.8M vs. $6.5M last q with record enterprise adds (>$50K customer adds of 155 vs. 190 in all FY21) while billing’s growth decelerated to 52% y/y from 56% in F3Q vs. a much tougher comp, guided FY23 revenue $23M ahead but EBIT $90M below

·     FOSL -31%; guides FY net sales +2-6% with stronger yr/yr growth during 2H which is much lower than FOSL’s 2021 worldwide net sales growth of 16% on a reported basis and 14% in constant currency.

·     FXI -4%; several companies sliding post-earnings: JD -12% as Q4 revenue missed estimates and YoY growth slowed from Q3, BZUN -16% on its revenue miss, BEKE -21% on worsening operating margins and the top-end of its Q1 revenue range below consensus

·     BASE -17%; received several price target cuts after its FY revenue guidance was $146.5M-$147.5M, fully below est. $151.8M

·     PTON -4%; The Wall Street Journal reported it is planning to test a new monthly pricing plan between $60-100 that covers both the stationary bike and a subscription to workout courses

·     BBW -18%; Q4 adj EPS $0.97 vs est. $0.92 on in-line revenue $130M


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.

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