Morning Preview: March 17, 2022

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Early Look

Thursday, March 17, 2022









S&P 500










U.S. stock futures are slipping overnight, down about -0.4% to 4,340 (high 4,371.50 and low 4,329) as Russia says reports of major progress in Ukraine talks are “wrong”. Russian forces in Ukraine are still blasting targets as the war enters its fourth week. Putin meanwhile warned against attempts by the West and his Russian opponents to bring about the destruction of Russia, signaling an even greater crackdown on opposition to the war. Biden condemned Putin calling him a war criminal, Kremlin responds to the comment calling it “unacceptable and unforgivable rhetoric”. Clearly the headline risk from Europe is far from behind us despite the strong market reaction the last 2-days. Stocks rallied in a wild session on Wednesday despite the Federal Reserve raising rates and saying it would hike another six times this year as the Dow gained over 500 points or 1.55%, the S&P 500 rose 2.24% for its biggest two-day gain since April 2020 and the Nasdaq rallied 3.77% with beaten up tech names pacing the gains. In Asian markets, The Nikkei Index spikes 3.46% or 890 points to 26,652, the Shanghai Index climbs 1.4% to 3,215, and the Hang Seng Index surges a second day, up 7% or 1,413 points to 21,501. Helping the U.S. listed Chinese stocks are reports from the FT late yesterday and Bloomberg overnight that China’s securities watchdog is weighing a proposal that would allow U.S. regulators to inspect auditors’ working papers for some companies as soon as this year. In Europe, the German DAX is down roughly 100 points or 0.68% to 14,340, while the FTSE 100 is down a few points to 7,280. Oil prices rebound after a 3-day slide, with WTI crude back above $99 per barrel, rising 4.65%, while gold rebounds as well, up 1.75% to $1,943 an ounce. Treasury yields also pulling back from yesterday highs, down at 2.11%, well off Wed intraday highs above 2.24%.

Economic Calendar for Today

·     8:30 AM ET          Weekly Jobless Claims…est. 220K

·     8:30 AM EST        Continuing Claims…est. 1.485M

·     8:30 AM ET          Philly Fed Survey for March…est. 15.0

·     8:30 AM ET          Housing Starts m/m for February…est. 1.69M

·     8:30 AM ET          Building Permits m/m for February…est. 1.85M

·     9:15 AM ET          Industrial Production m/m for February…est. +0.5%

·     9:15 AM ET          Capacity utilization for February…est. 77.8%

·     10:30 AM ET        Weekly EIA Natural Gas Inventory Data


Earnings Calendar:

·     Earnings Before the Open: CMC, DBI, DG, DXLG, EFOI, KIRK, LFG, RFIL, SCWX, SIG, WRBY, XFOR

·     Earnings After the Close: ASTR, AVPT, CURV, EMBK, FDX, GME, IPWR, JOAN, RNGR, USIO, VIVE


Other Key Events:

·     Barclays Global Healthcare Conference, 3/15-3/17 in Miami, FL

·     JPMorgan Industrials Conference, 3/15-3/17, in NY

·     Morgan Stanley European Financials Conference, 3/15-3/17, in London

·     Truist Texas Bank Summit, 3/16-3/17, in Dallas, TX

·     Truist Immuno-Oncology & Cell Therapy Conference, 3/16-3/18, in NY


Market Closing Prices Yesterday

·     The S&P 500 Index jumped 95.41 points, or 2.24%, to 4,357.86

·     The Dow Jones Industrial Average rose 518.76 points, or 1.55%, to 34,063

·     The Nasdaq Composite surged 487.93 points, or 3.77%, to 13,436.55

·     The Russell 2000 Index advanced 61.75 points, or 3.14% to 2,030.72





















10-Year Note





Sector News Breakdown


·     Guess Inc. (GES) 4Q adj EPS $1.14 vs est. $1.15 on revs $799.9Mm vs est. $805.9Mm; guides 1Q revs +low-teens with no meaningful incremental covid shut-downs vs est. +4%; sees FY revs +low-single digit vs est. +5.7% and op margin 10.5%; approves qtrly cash dividend of $0.225/share, intends to enter accelerated repurchase program

·     Nordstrom, Inc. (JWN) announced today that it is reinstating a quarterly dividend; approved a quarterly dividend of 19 cents per share

·     Lennar Corp. (LEN) 1Q adj EPS $2.70 vs est. $2.60 on revs $6.2B vs est. $6.1B; home sales revs $5.7B vs est. $5.76B with orders $7.8Mm on 15,747 homes, deliveries 12,538 homes, gross margin on home sales 26.9%; guides 2Q deliveries 16,000-16,300 and gross margin on home sales 28-28.5%; for FY see about 68,000 deliveries with home sales gross margin 27.5-28%; increased repurchase authorization by $2B

·     William Sonoma (WSM) Q4 adj EPS $5.42 vs est. $4.82 on revenue $2.5B vs est. $2.58B; announced a $1.5B stock repurchase authorization and raised its dividend 10% to 78c/share; reiterates long-term financial guidance of mid-to-high single digit revenue growth with revs increasing to $10B by FY24

·     Vacasa, Inc. (VCSA) Q4 EPS loss (-$0.06) vs. est. loss (-$0.28); Q4 revs rose 76% to $192M vs. est. $179.9M; Q4 gross booking value per night sold was $347, a 27% y/y; gross booking value was $379 million, a 96% y/y increase

·     Brilliant Earth Group (BRLT) 4Q adj EPS $0.11 vs est. $0.04 on revs $121.9Mm vs est. $112.0Mm; sees 1Q revs $96-98Mm vs est. $89Mm; sees FY revs $485-500Mm vs est. $474Mm

·     Shift Technologies (SFT) files $300M mixed securities shelf

·     Yum China (YUMC) expands share buyback program by $1B


Energy, Industrials and Materials

·     Core Laboratories (CLB) cuts Q1 EPS view to 5c-8c from 16c-20c (est. $0.20) and cuts Q1 revenue view to $110M-$113M from $117M-$122M saying disruptions reached an all-time high due to Covid impact as the number of employees testing positive during the first quarter of 2022 has been five to six times higher than any previous period since the pandemic started

·     Steel Dynamics (STLD) guides Q1 adj EPS $5.85-$5.95 vs. est. $5.09; said Q1 profitability from the company’s steel operations is expected to be historically strong, but significantly lower than record Q4 results, driven by lower earnings from the company’s flat roll steel operations

·     Ashland (ASH) will increase prices up to 15% or as contracts allow effective April 1, to cover general inflation related to raw materials, energy, freight, and labor.

·     CF Industries (CF) is increasing fertilizer shipments to both U.S. coasts from its nitrogen complex in Louisiana to help offset a decline in exports from Russia after it invaded Ukraine – Reuters

·     J.B. Hunt Transport (JBHT) rises after revealing an agreement with Berkshire Hathaway’s BNSF Railway, as it plans to increase its intermodal fleet to as many as 150K containers in the next 3-5 years, 40%-plus above its count at the end of 2021, and will add supporting chassis



·     Riot Blockchain (RIOT) posted a $7.9M net loss in 2021, compared with a loss of $12.7M in 2020, driven by non-cash stock-based compensation expense of $68.5M and a non-cash, unrealized loss of $36.5M on impairment of digital assets



·     Catalyst Pharmaceuticals, Inc. (CPRX) 4Q adj EPS $0.13 vs est. $0.12 on revs $38.3Mm vs est. $38.2Mm; guides FY revs $195-205Mm vs est. $198.5Mm

·     Eton Pharmaceuticals (ETON) 4Q EPS $0.04 vs est. $0.19 on revs $6.1Mm vs est. $12.5Mm, cash and equivalents at year-end $14.4Mm


Technology, Media & Telecom

·     Box Inc (BOX) provides long-term financial model at fy23 financial analyst day; anticipates combined revenue growth rate plus free cash flow margin will be 43-44% for FY25; announces new share repurchase authorization of up to $150M

·     PagerDuty (PD) 4Q adj EPS ($0.04) vs est. ($0.06) on revs $78.5Mm vs est. $76.1Mm; guides 1Q adj EPS ($0.09) to ($0.08) vs est. ($0.06) with revs $81.5-83.5Mm vs est. $80.2Mm; sees FY adj EPS ($0.23) to ($0.17) vs est. ($0.19) with revs $360-366Mm vs est. $352.7Mm

·     Semtech (SMTC) Q4 EPS $0.53 vs. est. $0.69; Q4 sales $190.6M vs. est. $189.35M; sees Q1 sales $195M-$205M and EPS $0.50-$0.58 vs. est. $192.3M


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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