Traders Market Weekly: Yield Inversion Therapy Kill Growth To Kill Inflation

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    DA Davidson initiated coverage of Harsco (HSC) with a Buy rating and $18 price target. The firm is positive on the company’s position as the global provider of environmental services tailored towards specialty waste stream solutions as it effectively progresses towards a refined portfolio. The firm sees significant long-term organic opportunities for both its Environmental and Clean Earth segments supported by its competitive service offerings and tenured relationships with customers.

    Deutsche Bank initiated coverage of ABM Industries (ABM) with a Buy rating and $62 price target. The firm sees ABM as a scaled integrated facilities management company that’s on a multi-year self-help journey. The firm expects digitization and new services to drive accelerating growth, improved margins and cash flow, and a re-rating of ABM’s valuation.

    Wells Fargo initiated coverage of Carnival (CCL) with an Underweight rating and $21 price target. The firm has a positive view on cruise stocks given the firm’s expectation for gradually improving fundamentals in the coming quarters, but is relatively more cautious on Carnival at current share levels. The firm notes the company’s international footprint can be a challenge during periods of geopolitical tensions, and it has less-predictable earnings given the fuel price volatility. The firm believes oil could pose a risk to Carnival’s 2023 EBITDA estimates returning to 2019 levels if prices remain elevated.

    Guggenheim initiated coverage of Signify Health (SGFY) with a Buy rating and $36 price target as part of the launch of coverage on six companies in the tech-enabled healthcare industry. The firm notes the U.S. healthcare system operates with unsustainable high costs and the firm believes the way in which services are delivered is beginning to change, with much of that due to the onset of newer technologies.


    —Equity Markets—

    Japan’s Nikkei: -0.8%
    Hong Kong’s Hang Seng: +1.4%
    China’s Shanghai Composite: +2.0%
    India’s Sensex: +1.3%
    South Korea’s Kospi: +0.2%
    Australia’s ASX All Ordinaries: +0.7%


    –Equity Markets—

    STOXX Europe 600: -0.6%
    Germany’s DAX: -1.5%
    U.K.’s FTSE 100: +0.1%
    France’s CAC 40: -1.0%
    Italy’s FTSE MIB: -0.4%
    Spain’s IBEX 35: -0.9%


    Micron (MU 85.35, +3.30): +4.0% after beating top and bottom-line estimates and guiding Q3 EPS and revenue above consensus.
    lululemon athletica (LULU 369.34, +25.37): +7.4% after beating EPS estimates, issuing upside EPS/revenue guidance for fiscal Q1 and FY22, and authorizing a $1 billion stock repurchase program.
    Five Below (FIVE 166.00, -5.39): -3.1% after guiding EPS and revenue for Q1 and FY23 below consensus.
    Chewy (CHWY 43.85, -7.15): -14.0% after missing top and bottom-line estimates and guiding revenue for Q1 and FY23 below consensus.


    Dow 35,228.81 -65.38 -0.19%
    S&P 500 4,602.45 -29.15 -0.63%
    Nasdaq 14,442.27 -177.36 -1.21%
    GlobalDow 4,152.31 -1.75 -0.04%
    Gold 1,940.00 22.00 1.15%
    Oil 107.48 3.24 3.11%


    Asia-Pacific Overnight

    #Japan’s Nikkei: -0.7%
    #HongKong’s Hang Seng: -0.8%
    #China’s Shanghai Composite: -0.4%
    #India’s Sensex: -0.2%
    #SouthKorea’s Kospi: +0.4%
    #Australia’s ASX All Ordinaries: -0.1%.


    China’s March Manufacturing PMI 49.5 (expected 49.9; last 50.2) and March Non-Manufacturing PMI 48.4 (last 51.6)
    Japan’s February Industrial Production 0.1% m/m (expected 0.5%; last -0.8%). February Housing Starts 6.3% yr/yr (expected 1.1%; last 2.1%) and Construction Orders -2.3% yr/yr (last 11.0%)
    South Korea’s February Industrial Production 0.6% m/m (last 0.3%); 6.5% yr/yr (expected 4.5%; last 4.2%). February Retail Sales 0.1% m/m (last -1.9%). April Manufacturing BSI Index 83 (last 91)
    Australia’s February Building Approvals 43.5% m/m (expected 10.0%; last -27.1%) and Private House Approvals 16.5% m/m (last -16.3%)
    Hong Kong’s February Retail Sales -14.6% yr/yr (last 4.1%)

    Shanghai is reportedly remaining under a coronavirus lockdown.
    China’s Manufacturing PMI dipped into contraction for the first time since October.
    Japan is reportedly considering a JPY2 trln stimulus package.
    The Bank of Japan continued its fixed rate buying operations.


    Eurozone’s February Unemployment Rate 6.8% (expected 6.7%; last 6.9%)
    Germany’s February Retail Sales 0.3% m/m (expected 0.5%; last 2.0%); 7.0% yr/yr (expected 6.1%; last 10.4%). March Unemployment Change -18,000 (expected -20,000; last -33,000) and Mach Unemployment Rate 5.0%, as expected (last 5.0%)
    U.K.’s Q4 GDP 1.3% qtr/qtr (expected 1.0%; last 0.9%); 6.6% yr/yr (expected 6.5%; last 6.9%). March Nationwide HPI 1.1% m/m (expected 0.8%; last 1.7%); 14.3% yr/yr (expected 13.5%; last 12.6%)
    France’s March CPI 1.4% m/m (expected 1.3%; last 0.8%); 4.5% yr/yr (expected 4.3%; last 3.6%). February PPI 1.1% m/m (last 4.7%) and February Consumer Spending 0.8% m/m (expected 1.2%; last -2.0%)
    Italy’s March CPI 1.2% m/m (expected 0.9%; last 0.9%); 6.7% yr/yr (expected 6.4%; last 5.7%). February Unemployment Rate 8.5% (expected 8.7%; last 8.6%)
    Swiss February Retail Sales 12.8% yr/yr (last 5.7%)

    Russia is reportedly set to implement a law requiring that payments for gas be made in rubles, starting tomorrow.
    Bank of Italy Governor Visco said that rate hikes will not take place before the end of the ECB’s quantitative easing program.
    France and Italy reported hotter than expected flash inflation readings for March.


    Walgreens Boots Alliance (WBA 47.11, -0.35): -0.7% despite beating top and bottom-line estimates.
    UiPath (PATH 24.74, -4.30): -14.8% after guiding revenue for fiscal Q1 and FY23 below consensus, overshadowing its better-than-expected fiscal Q4 results.
    Advanced Micro Devices (AMD 116.76, -2.46): -2.1% after the stock was downgraded to Equal Weight from Overweight at Barclays.


    U.S. Treasury yields are trading lower across the curve but more so on the shorter end.
    The 2-yr yield is down five basis points to 2.28%, and the 10-yr yield is down four basis points to 2.32%.

    The U.S. Dollar Index is up 0.4% to 98.19.


    Major European indices trade in the red.

    STOXX Europe 600: -0.2%
    Germany’s DAX: -0.4%
    U.K.’s FTSE 100: -0.4%
    France’s CAC 40: -0.6%
    Italy’s FTSE MIB: -0.2%
    Spain’s IBEX 35: -0.4%.


    Thankful for safekeeping as strong storms crossed over
    time to hook our hound “Samson” up & enjoy warm spring day
    And to bark at the DEER as we’ll soon plant our 2022 “victory garden” 🙂


    Dow 34,678.35 -550.46 -1.56%
    S&P 500 4,530.41 -72.04 -1.57%
    Nasdaq 14,220.52 -221.76 -1.54%
    GlobalDow 4,098.58 -54.82 -1.32%
    Gold 1,942.30 3.30 0.17%
    Oil 101.19 -6.63 -6.15


    GameStop (GME 192.16, +35.58): +15.4% after announcing plans to seek approval for a 3.33-for-1 stock split for Class A shares.
    PNC (PNC 185.71, +1.26): +0.7% despite issuing downside Q1 revenue guidance. PNC shares fell 8.0% in the first quarter, so the guidance may have been priced in already.
    BlackBerry (BB 7.13, -0.33): -4.4% despite beating EPS estimates.
    Duck Creek Technologies (DCT 19.40, -2.72): -12.3% after guiding fiscal Q3 revenue below consensus, overshadowing its better than expected fiscal Q2 results.


    Equity indices in the Asia-Pacific region ended the week on a mostly higher note.

    Japan’s Nikkei: -0.6% (-1.7% for the week)
    Hong Kong’s Hang Seng: +0.2% (+3.0% for the week)
    China’s Shanghai Composite: +0.9% (+2.2% for the week)
    India’s Sensex: +1.2% (+3.3% for the week)
    South Korea’s Kospi: -0.7% (+0.4% for the week)
    Australia’s ASX All Ordinaries: -0.1% (+1.3% for the week).

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