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Investors face a new challenge with an inverted yield curve sending a recession signal that is getting hard to ignore to pile on the inflation and war headlines. Against that backdrop, next week's release of the minutes of the last Federal Reserve minutes will be watch very closely for the line of thinking on rate hikes and plans to shrink the balance sheet. Economic reports of note due in include updates on factory orders, PMI prints, trade balance and jobless claims. Earnings nearly grind to a halt with another few weeks to go until Q1 reports roll in, but the conference calendar is active with a space symposium, cannabis gathering and large Bitcoin event all in the spotlight.
IPO and SPAC watch: Allvue Systems Holdings (ALVU) and Allvue Systems Holdings (INTM) could start trading next week. IPO lockup expirations hit this week on Life Time Group (LTH), Theseus Pharmaceuticals (NASDAQ:THRX), Pyxis Oncology (NASDAQ:PYXS), Cognition Therapeutics (CGTX) and UTime (UTME).
Ontario gaming launch: Ontario will officially allow commercial iGaming and sportsbook operators to operate in the province for the first time on April 4. Sports betting and iGaming companies expected to launch operations include PointsBet (OTCQX:PBTHF), BetMGM (MGM, OTCPK:GMVHF), Rush Street Interactive's (NYSE:RSI) BetRivers, Caesars Sportsbook (NASDAQ:CZR), DraftKings (NASDAQ:DKNG), Penn National Gaming (PENN) via theScore and Flutter Entertainment's (OTCPK:PDYPY) FanDuel. Meanwhile, Bragg Gaming Group (BRAG) has a deal to supply local iGaming and sports betting operators with its player account management platform and Genius Sports (GENI) recently obtained the rights to commercialize the Canadian Football League’s official data worldwide. Sports analytics firm Sportradar Group (NASDAQ:SRAD) has also received permission to operate in Ontario.
Levi Strauss earnings preview: A slow period in the market for earnings reports means that the update from Levi Strauss (LEVI) could take on added significance with investors increasingly worried about rising cost inflation, interest rates hikes, tough stimulus comparisons for apparel manufacturers. The read on consumer demand in Europe will be particularly crucial. Analysts will be focused on how Levi Strauss (LEVI) is approaching pricing and promotions as the company looks to protect margins.
Federal Reserve breakdown: The week ahead features several speeches by voting members of the FOMC, as well as the release of the minutes from the last report. Economists will be watching for nuances around the discussion on the size of future hikes to the target of the federal funds rate, especially from St. Louis President James Bullard and other members of the hawkish side. UBS thinks the minutes will fail to reveal any consensus on the size of the May rate hike, but could tip off more openness for a 50-point move than anticipated. The discussion around the pace and structure of the balance sheet runoff will also be closely watched.
Corporate events: The walk date for the UnitedHealth (NYSE:UNH)-Change Healthcare (CHNG) deal is on April 5. Change Healthcare is said to be seeking a sizable reverse break up fee from UnitedHealth if the parties decide to fight the Department of Justice's lawsuit to block the deal. Also on April 5, Analog Devices (NASDAQ:ADI) will host its Investor Day, which is expected to include discussion on the company’s long-term vision and growth strategy, as well as strategic opportunities in the current business environment. Meanwhile, Microsoft (MSFT) is scheduled to hold another preview event to discuss the future of "Hybrid Work, Powered by Windows." Details on Microsoft Teams innovations, Windows 365 subscriptions for cloud PCs that can be accessed via a web browser and the rollout of the Fluid framework for Microsoft Office apps are anticipated. Atreca (BCEL) will host a virtual R&D Day focused on the company's preclinical pipeline programs in oncology. Accenture (NYSE:ACN) will hold an investor and analyst conference on April 7 and Designer Brands (NYSE:DBI) has an Investor Day event on April 8.
Conference schedule: The conference schedule includes the BTIG Global Cannabis Conference, the Credit Suisse The Investor Landscape: Hidden Gems Conference and the B. Riley Securities’ Disruptive Biotech Enabling Technologies Virtual Mini Conference. Bitcoin 2022 will also take place in Miami from April 6-9. Described as the world's largest Bitcoin gathering, speakers at the four-day event will include the President of El Salvador, Paypal and Palantir founder Peter Thiel, MicroStrategy's Michael Saylor, ARK Invest's Cathie Wood, NFL quarterback Aaron Rogers and Riot Blockchain (NASDAQ:RIOT) CEO Jason Les. See a more detailed list of events that may impact share prices next week.
Annual meetings: Broadcom (NASDAQ:AVGO) holds its annual meeting next week. Any update from management will be watched closely with Broadcom thin with its guidance with its last earnings report.
Stock splits: The 1-for-3 Colfax (CFX) reverse stock split and 1-for-4 MFA Financial (MFA) reverse split become effective on April 4.
Barron's mentions: The housing industry is featured this week and is said to probably in its best shape ever, with strong balance sheets and increasing capital returns to shareholder. The housing market is noted to feature some of the lowest price-to-earnings ratios in the market. KB Home (KBH), Taylor Morrison Home (NYSE:TMHC), Tri Pointe Homes (NYSE:TPH), PulteGroup (PHM), Toll Brothers (NYSE:TOL), D.R. Horton (NYSE:DHI) and Lennar (LEN) all trade with forward PEs below 5.0X. The publication pulls out Starry Group Holdings (STRY) from the telecommunications sector as an interesting company with an attractive business model. The company's forecasts it will have 1.4 million subscribers by 2026 for its wireless service delivers high-speed home broadband connections with no involvement from a cable or phone network. In the energy sector, the rally in Texas Pacific Land (NYSE:TPL) is seen extending. "Higher prices, higher production, and improvements in the once-sleepy business’ governance could make this play on U.S. energy richer still," reads the bull call.
Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital