US EARLY MORNING: Equity futures are flat ahead of weekly claims data, and NFP on Friday

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  OVERNIGHT: Wall Street was risk-off, with stocks predominantly lower and havens generally bid after data from ADP showed a sharper than expected slowdown in hiring, while the ISM services data for March disappointed to the downside, fuelling growth concerns (see here for our US wrap). APAC stocks were mostly subdued amid headwinds from the US, while risk appetite was also said to be restricted as we approach the Easter holiday period. China's Caixin Services PMI data showed an acceleration in services activity; in Japan there was some speculation of a potential policy shift by the BoJ soon as the Kuroda era comes to an end this week; US-Sino frictions continued after Taiwan President Tsai met members of the US Congress including House Speaker McCarthy; the RBI surprised with a decision to keep rates unchanged (expectations were for a 25bps hike) (see here for our APAC wrap). Equity indices in Europe opened around flat; German Industrial Output rose +2.0% M/M in February (exp. 0.1%, prev. 3.7%); ING said noted that German industrial production rose much more than expected in February; "a technical recession has now been avoided, but we're expecting only subdued growth in the months ahead," the Dutch bank said. In the UK, data from Halifax showed house prices grew +0.8% M/M in March, (exp. -0.3%); the building society said data continued to suggest relative stability in the housing market at the start of 2023, though it still expects to see a continued slowdown through the year (see here for our European open note).


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  US PRE-MARKETS: The landscape is flat ahead of the long weekend; US equity futures are around neutral, the dollar Index is little changed, Treasury yields are mostly unchanged, although the short-end continues this week’s rally amid slowing growth concerns in the face of almost stubbornly hawkish monetary policy. Today’s initial jobless claims data provide a more timely look at labour market conditions rather than tomorrow’s nonfarm payrolls data; there is also Canadian jobs data due today. Next week’s docket is also packed with potentially market moving macro releases, by way of the March CPI report, Fed minutes, as well as retail sales data, which will all give further fodder on both inflation and growth dynamics. Next week will also bring the start of Q1 reporting, with much focus on the Big Banks which are due to report at the back-end of the week, while some regional banks will also be updating earlier in the week (FRC). This may leave trading conditions somewhat tentative for large parts of today, as traders eye the long weekend. NOTE: The March jobs data is being released tomorrow, and the desk will be running a special service on the squawk and headline feed covering the events between 13:00BST/08:00EDT to 13:45BST/08:45EDT.

DAY AHEAD:

• Our full interactive calendar can be accessed here; a pdf version can be accessed here.


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  EUROPEAN DATA/SPEAKERS: The economic docket is thin on Thursday, with only the S&P Global Construction PMI data for March due across the bloc. EU officials' China visit continues (between April 5-7th), our primer for the events can be accessed here.


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  US DATA/SPEAKERS: Ahead of the Good Friday jobs report (our preview is here), there is more labour market data due, with the release of the March Challenger layoffs data, as well as the weekly (and timely) initial jobless claims data; the weekly data does not coincide with the survey periods for the BLS establishment survey, but traders will still be paying close attention, with many fretting about growth dynamics as credit conditions tighten and the economic growth impulse cools. Fed’s Bullard (non-voter, hawkish) will be making remarks in wake of the data; he has generally advocated continued rate hikes, despite the recent banking woes, as the Fed continues its fight to bring inflation down. Elsewhere, Canada will release its labour market report.


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  ENERGY: The EIA will report weekly NatGas inventories, where the consensus expects a draw of 21BCF vs a draw of 47BCF last week.


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  SUPPLY: France will sell between EUR 10-11bln of 2033, 2043, and 2054 debt. US will announce auction sizes for next week’s 3yr, 10s and 30s supply due for next week.

EQUITY NEWS:

HEALTH CARE:

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  AbbVie Inc. (ABBV) - AbbVie lowers Q1 EPS outlook to USD 2.31-2.41 (exp. 2.55, vs previous guidance of between 2.39-2.49). Said Q1 results were expected to include acquired IPR&D and milestones expense of USD 150mln million, an unfavourable impact of USD 0.08 to both GAAP diluted EPS and adj. diluted EPS. For the FY23, it cut EPS outlook to USD 10.62-11.02 (exp. 11.07, vs prior guidance of between 10.70-11.10).

TECH:

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  Advanced Micro Devices, Inc. (AMD), Samsung Electronics (SSNLF) - AMD and Samsung announced a multi-year agreement extension to bring multiple generations of high-performance, ultra-low-power AMD Radeon graphics solutions to an expanded portfolio of Samsung Exynos SoCs.


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  QUALCOMM Incorporated (QCOM), NVIDIA Corporation (NVDA) - AI chips from Qualcomm beat Nvidia in two out of three measures of power efficiency in a new set of test data published on Wednesday, Reuters reports.


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  Lumentum Holdings Inc. (LITE) - Fell in afterhours trade after it cut its Q3 outlook. Now sees Q3 revenue between USD 380-384mln (exp. 444mln) from USD 430-460mln. Said that late in Q3, a network equipment manufacturer who represented more than 10% of its Q2 revenue said that due to its inventory management, it would not take the shipments it had originally projected for the quarter. Lumentum raised its share repurchase authorisation by USD 200mln, taking it to USD 1.2bln.


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  Amplitude, Inc. (AMPL) - Board approved plans to reduce its global workforce by approximately 13%. The plan is intended to improve operational efficiencies and reduce operating costs.

COMMUNICATIONS:

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  Walt Disney Company (DIS) - In a shake-up of Disney’s streaming leadership ranks, the company is moving Hulu president Joe Earley into the role of president of direct-to-consumer for Disney Entertainment effective immediately, succeeding Michael Paull, who is leaving Disney after six years, according to Variety. Separately, Isaac Perlmutter said Disney fired him as chairman of Marvel Entertainment because he pushed Disney too aggressively to cut costs, and ran afoul of the creative executives whom newly returned CEO Robert Iger wants to empower, WSJ reports.

CONSUMER DISCRETIONARY:

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  Tesla (TSLA) - Board recently made significant changes to the company’s amended restated bylaws to provide stockholders with a proxy access right, effective March 30th. Elsewhere, Tesla’s sprawling manufacturing hub in Texas more than tripled its employee ranks last year, Bloomberg reports.


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  Amazon.com, Inc. (AMZN) - A leaked memo says Amazon plans to reduce employee stock awards in 2025, signaling a potentially major shift in its approach to compensation, Business Insider reports.


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  Nike, Inc. (NKE) - Announced a change in its senior executive leadership team: KeJuan Wilkins, Vice President of Enterprise Communications, will become the company's new Executive Vice President and Chief Communications Officer. Succeeds Nigel Powell, the company's long-time EVP, Chief Communications Officer, who will retire this summer.


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  Bed Bath & Beyond Inc. (BBBY) - BBBY called for a shareholder vote on a potential reverse stock split at a special meeting set for May 9th, Business Insider reports. The company said the vote would be on whether to allow an amendment to execute a stock split at a ratio in the range of 1-for-10 to 1-for-20, with such ratio to be determined at the discretion of the Board.


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  Rivian Automotive, Inc. (RIVN), Fastly, Inc. (FSLY) - Rivian appoints Mike Johnson as Chief Information Security Officer. Johnson joins from Fastly where he was CISO for over 3 years.


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  Fox Factory Holding Corp. (FOXF) - Scott Humphrey departs as Chief Financial Officer and Treasurer. Fox Factory reaffirms Q1 and FY23 guidance.


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  Pirelli (PRLLY) - Pirelli has delayed its shareholder meeting to June 29th as the Italian government reviews the governance agreement with Pirelli's top shareholder, China's Sinochem, which has a 37% stake.

CONSUMER STAPLES:

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  Costco (COST) - Slipped after hours following publication of March sales data, where revenues were +0.5% to USD 21.71bln; March total comp sales decline 1.1%, e-commerce comp sales were -12.7%. Total comp sales (ex-gas, FX) +2.6%, US SSS +0.9%.


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  Conagra Brands, Inc. (CAG) - CEO told CNBC that it saw 30% cost inflation over the last three years, adding that the consumer response to increased pricing has been benign vs historical norms. Said there was no need to take additional pricing actions as inflation has moderated. Said inflation was averaging around 6%.

MATERIALS:

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  Ero Copper Corp. (ERO) - Ero Copper raises medium-term copper production outlook to 100K-110k tonnes in 2025 (around +125% vs 2022 levels), above its previous 2025 production forecast of 92-102k tonnes. Added that gold production was on track to grow by approximately 40% vs 2022 levels, to 55-60 ounces per year, beginning 2024.

INDUSTRIALS:

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  Boeing Co. (BA) - The jetmaker confirmed it has restarted deliveries of its widebody 767 after a three-month pause caused by supplier quality issues.


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  FedEx Corporation (FDX) - CEO told CNBC that it will become more efficient. FDX had enacted significant cost cuts, and it is able to improve operating margins despite declines in volumes.


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  Woodward, Inc. (WWD) - William Lacey appointed new Chief Financial Officer, effective May 8th. Lacey was most recently Vice President of Finance for Amazon's Books and Kindle Content, and prior to that as President and CEO of Savant's Lighting division. Prior to that, Lacey had a successful 28-year career at General Electric.


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  Planet Labs PBC (PL) - Product and Business President Kevin Weil purchased 274k shares on April 3rd for a total USD 997k.


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  Raytheon Technologies (RTX), Boeing Co. (BA) - Raytheon and Boeing have been awarded a shared USD 400mln max contract for the Advanced Aerospace Systems Technology Research programme.

ENERGY:

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  Shell (SHEL) - In its Q1 update, said Q1 2023 Upstream Adj. EBITDA seen between USD 1.8-1.9bln (vs USD 1.859bln in Q4); Integrated Gas EBITDA seen between USD 930-970mln (vs 917mln in Q4); its chemicals sub-segment adjusted earnings are expected to reflect a loss for Q1 2023.


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  TotalEnergies (TTE) - Has extended price freeze in France to all fuels in stations at a maximum of EUR 1.99/L until stations no longer have supply difficulties.

FINANCIALS:

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  SVB Financial Group (SIVB), Signature Bank (SBNY), BlackRock Inc (BLK) - FDIC retains BlackRock unit Financial Market Advisory to sell the securities portfolios it kept in receivership after the collapse of Signature Bank and Silicon Valley Bank, Reuters reports. The face values of the two portfolios are about USD 27bln and USD 87bln.


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  Allianz (ALIZY) - Does not plan on renewing its Nord Stream 1 pipeline policy after it expires in late 2023, leaning back on earlier reports in the week which had suggested that Allianz and Munich Re renewed coverage for the gas pipeline.

06 Apr 2023 - 09:30- Fixed IncomeData- Source: Newsquawk