Daily Game Plan

TODAY’S GAME PLAN:  from the trading
desk, this is not research

TODAY’S ECONOMIC DATA:  11:30ET Fed’s Kashkari speaks; 1:00ET 3-Year Note Auction; 1:20ET Fed’s Kashkari speaks
on Bloomberg TV; 2:00ET Consumer Credit

TODAY’S HIGHLIGHTS and News:  

• All four major indices settle back above their 50dma s/t key as growth outperforms
• XLK versus SPY at potential breakout technical point
• WTI seems likely to test $75 area (s/t .618 retrace)
• US$ Index two-day bounce after touching s/t key at 50dma
• PRIVATE EQUITY FIRMS CIRCLE PELOTON (PTON .25%) FOR POTENTIAL BUYOUT: CNBC

Global shares edged higher, trading around one-month highs, as a string of upbeat results pushed stocks and bonds higher. The Israeli military seized control of the
Rafah border crossing between the Gaza Strip and Egypt and its tanks pushed into Rafah, as mediators struggled to secure a ceasefire agreement.    

EQUITIES: 

US equity futures paused after yesterday’s strong gains, with Israel’s strikes on Rafah while negotiations continue having limited impact on the market. This week is light on economic
data but heavy on Fedspeak, with Minneapolis Fed President Neel Kashkari set to appear twice today. Disney shares slumped this morning as a profit beat was overshadowed by revenue that fell short of projections. PRIVATE EQUITY FIRMS CIRCLE PELOTON FOR POTENTIAL
BUYOUT: CNBC      

Futures ahead of the bell: E-Mini S&P +0.05%, Nasdaq -0.1%, Russell 2000 +0.2%, DJI +0.05%.

In pre-market trading, Disney (DIS) slides 5.6% after reporting fewer subscribers to its Disney+ streaming service in the fiscal second quarter than analysts had projected. Fidelity National
Information Services’ (FIS) rises 4% after the company raised its outlook for full-year profit. Hims & Hers Health (HIMS) jumped as much as 18% after the telehealth company boosted its adjusted Ebitda guidance for the full year. Microchip (MCHP) shares fall
as much as 5% as the chipmaker’s adjusted earnings-per-share forecast for the first quarter missed estimates. Lucid (LCID) dropped 8% after the EV maker reported a wider-than-expected loss for the first quarter. Palantir (PLTR) slid about 12% even after the
software company boosted its revenue forecast for the full year, with analysts noting the company’s US commercial revenue growth sharply decelerated in the quarter. Symbotic (SYM) shares jump 12% after the warehouse robotics and automation firm posted forecast-beating
2Q revenue. Zeta (ZETA) surged 18% after the software company gave a forecast revenue for the second quarter that beat the average analyst estimate. Celsius (CELH) falls 8.4% after the energy-drink maker reported first-quarter revenue that missed. Coherent
(COHR) climbs 8.5% after the maker of components for the telecommunications industry raised the bottom end of its year revenue forecast. Vimeo (VMEO) gains 10% after the video software company reported first-quarter results that beat analyst expectations.
Oscar Health (OSCR) climbs 15% after the health insurer reported earnings that outpaced analyst expectations.

European gauges rose for a third day, boosted by strong company earnings, with the FTSE 100 Index reaching yet another record high. Banks were led higher by UBS Group AG, which jumped
nearly 10% as it returned to profit following two losing quarters. UBS reported first-quarter profit that trounced forecasts and said it was sticking with plans for share buybacks over three years despite Swiss government proposals that would hike its capital
requirements.  UniCredit SpA advanced 3% after first quarter profit topped estimates. Infineon Technologies AG jumped over 11% after the chipmaker reduced full-year guidance, but signaled expectations of a recovery in sales in the next two quarters. Share
buybacks continued with BP Plc maintaining its repurchase program despite a profit decline. On the macro front, German factory orders unexpectedly dropped 0.4% in March versus consensus for 0.5% increase. Stoxx 600 +0.7%, DAX +0.7%, CAC +0.3%, FTSE 100 +1%.
Financial Services +2.6%, REITs +1.5%, Travel & Leisure +1.5%. Autos -0.3%.

Asian stocks climbed, boosted by a catch-up rally in Korean and Japanese shares on their return from a holiday. The MSCI Asia Pacific Index rose 0.3% for its fourth straight day of gains,
with technology the best performing sector in the region. Shares of Samsung Electronics and SK Hynix were the biggest contributors to gains on South Korea’s Kospi Index, which jumped 2.2%. The Hang Seng Index fell, snapping a 10-day winning streak that was
the longest since 2018. Indian stocks also declined, with small and mid-caps weighing. Kospi +2.2%, Nikkei 225 +1.6%, ASX 200 +1.4%, Topix +0.6%, Taiwan +0.6%, Vietnam +0.6%, Shanghai Composite +0.2%, CSI 300 was flat. Philippines -0.5%, Sensex -0.5%, Hang
Seng Index -0.5%.

FIXED INCOME: 
 

Treasuries edge higher, with yields richer by 1bp to 3bp across the curve, underpinned by bigger gains in core European rates after Germany factory orders unexpectedly
declined, pointing to persistent economic headwinds. Focal points of US session include 3-year note auction, ahead of 10- and 30-year sales Wednesday and Thursday. Demand will be tested at a $58 billion three-year note auction today, which is followed by $42
billion in 10-year sales on Wednesday and $25 billion of 30-year sales on Thursday. 10-year around 4.465%.

METALS: 
   

Gold edged lower, after closing 1% higher on Monday as investors weighed dovish remarks from US policymakers. Fed President Thomas Barkin said he expects high rates
to slow the economy further and cool inflation toward a 2% target. Goldman said gold-buying by emerging-market central banks has much further to run. It still sees bullion hitting $2,700 by the end of the year. Spot gold -0.5%, silver -0.7%. 

ENERGY:   

Crude oil eased from overnight highs as weakness in the physical market countered concern about conflict in the Middle East as Israel stepped up attacks in southern
Gaza and a ceasefire deal between Hamas and Israel proving elusive. OPEC+ is still analyzing the possibility of increasing crude oil output, Interfax reported. WTI -0.3%, Brent -0.2%, US Nat Gas +0.9%, RBOB -0.8%.

CURRENCIES:   

In currency markets, Sterling edged lower while traders awaited the Bank of England’s policy announcement on Thursday as markets moved to fully price in two quarter-point
rate cuts this year. Economists expect the BoE to keep interest rates unchanged this week but expect the central bank to leave the door open to lower interest rates as early as June. The Aussie dollar slipped after policymakers did not strengthen guidance
around the risk of another rate hike. The yen slipped for a second day after a Japanese government official suggested that the bar for further intervention in the currency may be higher than markets have been anticipating. Japan may have to take action against
any disorderly, speculative-driven foreign exchange moves, the government’s top currency diplomat said. US$ Index +0.1%, GBPUSD -0.2%, EURUSD -0.03%, USDJPY +0.3%, AUDUSD -0.3%, USDNOK +0.4%.

Spot Bitcoin +0.6%, Ethereum -0.3%.

TECHNICAL LEVELS:  

Colors within the report:
Green is always the 200 period (day, week).
Red is always 21,
Blue = 50,
Brown =
100 *Stars have added importance 

• Upgrades
• AMD (AMD) Raised to Buy at DZ Bank; PT $190
• Apple (AAPL) Raised to Accumulate at Phillip Secs; PT $194(Earlier)
• Cementos Pacasmayo (CPACASI1 PE) ADRs Raised to Outperform at Itau BBA
• Cloudflare (NET) Raised to Buy at DZ Bank; PT $95
• Design Therapeutics (DSGN) Raised to Overweight at Piper Sandler
• Gap (GPS) Raised to Buy at Citi; PT $28
• Insulet (PODD) Raised to Outperform at Wolfe; PT $200
• Napco Security Technologies (NSSC) Raised to Outperform at Imperial
• Omnicom (OMC) Raised to Overweight at Barclays; PT $110
• Sunstone Hotel (SHO) Raised to Neutral at Compass Point; PT $12
• Target (TGT) Raised to Buy at Citi
• Territorial Bancorp (TBNK) Raised to Neutral at Piper Sandler; PT $8.50
• Vale (VALE3 BZ) ADRs Raised to Buy at UBS
• Downgrades
• CVS (CVS) Cut to Hold at Cowen; PT $59
• GlycoMimetics (GLYC) Cut to Equal-Weight at Capital One; PT 50 cents
• Integra LifeSciences (IART) Cut to Market Perform at Oppenheimer
• Cut to Equal-Weight at Wells Fargo; PT $25
• Lyra Therapeutics (LYRA) Cut to Neutral at HC Wainwright
• Cut to Hold at Jefferies; PT 50 cents
• Teradata (TDC) Cut to Underperform at BofA
• Vestis (VSTS) Cut to Neutral at Redburn; PT $13.40
• Initiations
• Ares Management (ARES) Rated New Buy at Cowen; PT $154
• Corning (GLW) Rated New Neutral at Mizuho Securities; PT $36
• Kaspi.kz (KSPI KZ) ADRs Rated New Buy at New Street Research; PT $175
• LanzaTech Global (LNZA) Rated New Hold at Cowen; PT $3
• Metagenomi (MGX) Rated New Buy at HC Wainwright; PT $10
• NextSource (NEXT CN) Rated New Market Perform at BMO; PT C$1
• Palo Alto Networks (PANW) Rated New Outperform at CICC; PT $328
• Summit Therapeutics (SMMT) Rated New Buy at Citi; PT $7
• Thesis Gold Inc (TAU CN) Rated New Outperform at Raymond James; PT C$2
• UL Solutions (ULS) Rated New Neutral at Goldman; PT $39
• Rated New Outperform at William Blair
• Rated New Outperform at Raymond James; PT $42
• Rated New Overweight at Wells Fargo; PT $40
• Rated New Outperform at Baird; PT $40
• Rated New Overweight at JPMorgan; PT $39
• Rated New Buy at Jefferies; PT $42
• Rated New Buy at Stifel; PT $40
• Rated New Buy at Citi; PT $41

Data sources: Bloomberg, Reuters, CQG