Daily Game Plan

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

TODAY’S ECONOMIC DATA:  8:30ET Jobless Claims; 1:00ET 30 Year Bond Auction; 2:00ET Fed’s Daly speaks; 3:00ET Mexico
Rate Decision

HIGHLIGHTS and News:  

• Hamas launched two rounds of rocket fire at the American-made humanitarian aid pier for Gaza
• China’s iPhone shipments rise 12% in March
• Major indices remain s/t positive above their 50 day moving averages

Global stocks paused ahead of a Bank of England rate decision, while Japanese authorities ratcheted up intervention talk again as the yen continued to backslide.
Chinese trade data and some property market developments had helped Chinese stocks continue their recent outperformance. Customs figures showed that China’s imports jumped 8.4% in April from a year earlier, beating expectations for a rise of 4.8%, while exports
returned to growth in a boost to economic growth. The Bank of England announced it would hold interest rates steady, which was in line with expectations. President Biden warned he’d halt additional shipments of offensive weapons to Israel if its military proceeds
with a ground invasion of Rafah. Denmark, Finland, Norway, Sweden, Switzerland are closed for holidays.     

EQUITIES: 

US equity futures eased, dragged lower by Uber overnight as the ride-sharing company issued a downbeat forecast after a surprise quarterly loss. The recent stock bounce is fading as the
earnings season winds down, leaving investors to wait for new data for clues to gauge how fast policymakers will be able to begin cutting rates. Inflation figures due next week will offer fresh insights about the US economy after recent employment data showed
the labor market is cooling.     

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

AAPL holds its 200dma

In pre-market trading, Yeti Holdings shares gain 12% after boosting annual EPS forecast. Robinhood (HOOD) gains 5% after the fintech’s results beat expectations thanks to strength in
crypto trading. ARM Holdings (ARM) drops 8% after the chip-design company gave a full-year forecast that is seen as mixed relative to consensus. Airbnb (ABNB) slides 9% after the home-rental company’s second-quarter revenue forecast trailed estimates. AppLovin
(APP) gains 13% after the software maker’s quarterly sales and earnings came in comfortably above forecasts. Beyond Meat (BYND) slumps 13% after the producer of meat substitutes reported first quarter results below estimates. Bumble (BMBL) jumps 12% after
the online dating company affirmed its full-year forecast. Cardlytics (CDLX) tumbles 29% after the application software company reported revenue for the first quarter that missed the average analyst estimate. Cheesecake Factory (CAKE) rises 4.5% after the
restaurant chain operator reported an earnings beat. Compass (COMP) climbs 12% after the real estate technology firm delivered a revenue forecast beat. Duolingo (DUOL) falls 12% after the education software provider’s daily active user growth cooled. Exact
Sciences (EXAS) falls 14% after the maker of the Cologuard cancer test issued disappointing guidance. Forward Air (FWRD) drops 31% reported Adj. income from operations for the first quarter that missed. GoodRx (GDRX) slips 8.2% after the drug-pricing comparison
software company gave revenue forecast that were below estimates. HubSpot (HUBS) rises 9% as Alphabet has been progressing in talks to acquire marketing software provider. Magnite (MGNI) rises 11% after the advertising technology firm posted 1Q profit and
revenue that beat. Warner Bros. (WBD) slips 5% after reporting sales and profit that fell short of analysts’ expectations. SolarEdge (SEDG) declines 8% after the solar power company reported a wider-than-expected 1Q loss.

European gauges nudge higher, with many EU countries closed for Ascension Day, although there was action in Spain where bank Sabadell’s 12 billion euro ($12.87 billion) courtship by rival
BBVA suddenly turned hostile. The Bank of England maintained its key interest rate at a 16-year high of 5.25% though it gave a broad hint that a reduction could be imminent as inflation falls towards its target. The Stoxx 600 is roughly unchanged after two
straight record closing highs, while Germany’s DAX outperforms. The FTSE 100 index hits an intraday record high after the Bank of England held rates at 5.25% but two out of nine policymakers voted to cut. Stoxx 600 +0.05%, DAX +0.7%, CAC +0.3%, FTSE 100 +0.3%.
Energy outperforms, +1%. Telecom +0.7, Construction +0.5%. Autos fall 1.3%.

In Asia, Chinese stocks advanced after trade data showed both exports and imports beat forecasts in April, while the broader Asia-Pacific market was mixed. Chinese property stocks rose
after Hangzhou city scraps home-purchase curbs. The MSCI Asia Pacific Index climbed 0.3%, with Hong Kong-listed shares among the best performers in the region. China is considering a dividend tax waiver on Hong Kong stocks bought via Stock Connect, according
to sources. Meituan shares jumped nearly 5% after Citi raised its price target. Japan’s Topix gained, while the Nikkei 225 slipped. Shares of Apple’s suppliers in Asia advance as China’s iPhone shipments rise 12% in March after the company and its retailers
cut prices. CSI 1000 +1.6%, Hang Seng Index +1.2%, CSI 300 +1%, Topix +0.25%, Vietnam -0.1%, Nikkei 225 -0.3%, Taiwan -0.7%, ASX 200 -1.1%, Kospi -1.2%, Sensex -1.5%, Philippines -1.7%. 

FIXED INCOME: 
 

Treasuries, still lower on the day, have pared declines as gilts jump on Bank of England’s 7-2 vote to keep rates on hold.  US long-end yields remain cheaper by about
3bp with front-end outperforming slightly. 10-year around 4.51%. Treasury 30-year new issue today follows 1bp tail for Wednesday’s 10-year note.  

METALS: 
   

Gold inched higher as investors await key economic data releases that could provide insights into the Federal Reserve’s future interest rate decisions. Investors
are also monitoring the situation between the US and Israel, as President Biden warned of halting offensive weapon shipments if Israel launches a ground invasion in Gaza. Spot gold +0.3%, silver +1.4%.

ENERGY:   

Crude oil rose for a second day, having bounced off two-month lows the previous session on falling US crude inventories. The improved China trade balance data added
to sentiment. OPEC+ is expected to extend production cuts when members meet June 1, Goldman said, abandoning its forecast of a partial unwinding of the curbs. WTI +0.8%, Brent +0.7%, US Nat Gas -0.9%, RBOB +1%

CURRENCIES:   

In currency markets, the yen fell further, getting only a temporary lift from a summary of the last BOJ meeting which suggested rates may rise faster than expected.
Japan’s top currency diplomat Masato Kanda said there was no limit for reserves in currency intervention. Minutes from the Bank of Japan’s April meeting showed policymakers had turned overwhelmingly hawkish at their April policy meeting, with some seeing the
chance of interest rates rising faster than anticipated. GBP/USD fell as much as 0.4% after the BOE policy announcement. The Bank of England moved closer to cutting interest rates from a 16-year high after a second policymaker voted for lower borrowing costs
and Governor Andrew Bailey said he was “optimistic that things are moving in the right direction.” US$ Index +0.1%, GBPUSD -0.15%, EURUSD -0.15%, USDJPY +0.2%, AUDUSD +0.1%, USDCHF +0.2%, USDBRL +1.3%

Spot Bitcoin -1.6%, Ethereum +1%. Bankruptcy lawyers for FTX announced a plan in which customers with $50,000 or less worth of assets on the exchange (which they
say is 98% of users) would get 118% of the value of their assets at the time of the company’s bankruptcy filing – Axios

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
• Assurant (AIZ) Raised to Buy at CFRA
• Athabasca Oil (ATH CN) Raised to Outperform at National Bank; PT C$7
• Canadian Apartment (CAR-U CN) Raised to Buy at Echelon Wealth; PT C$56.50
• Cheesecake Factory (CAKE) Raised to Outperform at Raymond James; PT $42
• CytomX (CTMX) Raised to Outperform at Wedbush; PT $8
• Editas (EDIT) Raised to Equal-Weight at Morgan Stanley; PT $7
• Emerson Electric (EMR) Raised to Buy at Deutsche Bank; PT $138
• EVgo (EVGO) Raised to Overweight at Cantor; PT $4
• Fox Corp (FOXA) Raised to Buy at BofA; PT $40
• Live Nation (LYV) Raised to Buy at Redburn; PT $115
• LL Flooring Holdings Inc (LL) Raised to Hold at Loop Capital; PT $2
• Manulife Financial (MFC CN) Raised to Outperform at National Bank
• Select Water Solutions I (WTTR) Raised to Buy at Citi; PT $13
• Shopify (SHOP CN) Raised to Market Outperform at JMP; PT C$109.82
• Raised to Outperform at ATB Capital; PT C$115
• Raised to Neutral at Piper Sandler; PT C$86.48
• Sprott (SII CN) Raised to Buy at Cowen; PT C$66
• TripAdvisor (TRIP) Raised to Hold at CFRA; PT $19
• Wolverine World Wide (WWW) Raised to Buy at Williams Trading; PT $16
• Wynn Resorts (WYNN) Raised to Buy at CFRA; PT $126
• Downgrades
• Enhabit (EHAB) Cut to Hold at Jefferies; PT $8.75
• Skyworks (SWKS) Cut to Peerperform at Wolfe
• Snap One (SNPO) Cut to Market Perform at Raymond James
• SolarEdge (SEDG) Cut to Market Perform at Northland
• Spin Master (TOY CN) Cut to Sector Perform at National Bank; PT C$35
• TripAdvisor (TRIP) Cut to Neutral at DA Davidson; PT $20
• Ultrapar (UGPA3 BZ) ADRs Cut to Neutral at Grupo Santander; PT $6
• Viridian Therapeutics Inc (VRDN) Cut to Neutral at Ladenburg Thalmann
• Cut to Neutral at B Riley; PT $20
• Initiations
• ArcelorMittal (MT NA) ADRs Rated New Neutral at Goldman; PT $29.60
• Caesars Entertainment (CZR) Reinstated Buy at B Riley; PT $70
• MercadoLibre (MELI) Reinstated Buy at William O’Neil
• Perspective Therapeutics (CATX) Rated New Overweight at Cantor
• Truist Financial (TFC) Reinstated Inline at Evercore ISI; PT $44

Data sources: Bloomberg, Reuters, CQG