MARKET UPDATES: CONSUMER: 🔸 $DG upgraded to Overweight (BofA). 🔸 Macau casinos ($WYNN, $LVS, $MLCO, $MGM): Gaming revenue +0.8% YoY. 🔸 $LI: March deliveries 36,674 (+26.5% YoY). 🔸 $NIO: March deliveries 15,039 (+14% MoM). 🔸 $PVH: Q4 EPS $3.27 (beat), revenue -4.8% YoY. 🔸 $TSLA: Denmark sales -65.6% YoY. 🔸 $ULTA: Upgraded to Buy, price target raised to $423. ENERGY & INDUSTRIALS: 🔸 $AAL, $DAL, $LUV: Downgraded (Jefferies). 🔸 Oil: Brent stabilizes after Trump’s Russia comments. 🔸 $CVX: Sells East Texas gas assets ($1.2B+ value). 🔸 $EE: 7M-share secondary offering priced at $26.50. FINANCIALS: 🔸 $LPLA: 4.7M-share secondary offering at $320. 🔸 $V: $375M escrow deposit, reducing Class B shares. 🔸 $WRB: Downgraded (BofA). HEALTHCARE: 🔸 $JNJ: $10B talc settlement rejected by U.S. judge. 🔸 Drugmakers: Lobby Trump to phase in pharma tariffs. TECH & MEDIA: 🔸 $LYV, $SEAT: Fall after Trump’s executive order on ticket pricing. 🔸 $PRGS: Q1 EPS $1.31 (beat), raises full-year guidance. 🔸 $SPIR: Q4 EPS loss ($2.21), weak Q1 outlook.

$LUV a positive gain every session since this flow hit

$LUV - Southwest Airlines Plans to Start Charging for Checked Bags -- WSJ Southwest to Charge Most Customers for Checked Bags for Bookings on or After May 28 -- WSJ Southwest Didn't Say How Much Customers Would Pay to Check Bags -- WSJ

#Downgrades - Mar 03, 2025 • $AGCO: Baird Downgrades to Neutral from Outperform - PT $100 (from $116) • $CNH: Baird Downgrades to Neutral from Outperform - PT $15 (from $16) • $DE: Baird Downgrades to Neutral from Outperform - PT $501 • $DG: Deutsche Bank Downgrades to Hold from Buy - PT $80 (from $90) • $DV: Cannonball Research Downgrades to Neutral from Buy - PT $14 • $FOX: Arete Downgrades to Neutral from Buy - PT $66 • $FTAI: Stifel Downgrades to Hold from Buy - PT $123 (from $100) • $KC: Nomura Downgrades to Neutral from Buy - PT $18.10 (from $6.70) • $KRP: Raymond James Downgrades to Market Perform from Strong Buy • $LUV: JPMorgan Downgrades to Underweight from Neutral - PT $25 • $SRE: Jefferies Downgrades to Hold from Buy - PT $77 (from $96) • $TNDM: Bernstein Downgrades to Market Perform from Outperform - PT $25 (from $35) • $TNDM: Wells Fargo Downgrades to Equal Weight from Overweight - PT $22 (from $38) • $ZLAB: BofA Securities Downgrades to Neutral from Buy - PT $36.10 (from $29)

MORNING BID $AAPL downgraded to Sell by MoffettNathanson, target price $188. $AUR shares up 50% with new partnerships with Continental and Nvidia for deploying driverless trucks using Nvidia's DRIVE Thor and DriveOS. $GETY and $SSTK to merge, forming a $3.7B visual content company under the ticker "GETY". $META adds Dana White, John Elkann, and Charlie Songhurst to its board. $MU shares rise following Nvidia's mention of using Micron's memory in new gaming chips. $NVDA revealed new AI tech for robotics and self-driving, plus new gaming chips and a desktop computer at CES; expects automotive revenue growth. $NXPI to buy TTTech Auto for $625 million to enhance autonomous vehicle safety software. $LULU upgraded to Outperform by Bernstein, target now $460 from $360. $TSLA downgraded to Neutral by Bank America, tgt up to $490 from $400, citing improved sentiment and growth recognition since April 2024 upgrade. $ULTA CEO Dave Kimbell to retire; Kecia Steelman named new CEO, strong holiday performance, Q4 margin outlook raised. $AZEK CFO Peter Clifford resigns to join a private firm outside the building products sector. $APOG) Q3 EPS $1.19, beating consensus $1.11; revenue $341.34M vs. $332.19M expected. Cuts FY25 EPS guidance to $4.90-5.20, lowers revenue growth to -5% from -7% to -4%. $GFL sold Environmental Services to $APO and BC Partners for $8.0B, retaining $1.7B equity, expecting $6.2B cash after taxes. $RPM Q2 EPS $1.39 vs. $1.34 expected; revenue $1.85B vs. $1.79B. Maintains FY25 sales growth in low single digits. $LUV sold and leased back 36 $BA 737-800s to Babcock & Brown, generating $871M from 35 aircraft in late December.

MORNING RECAP • $ASO announces a $700M share buyback. • $AEO Q3 EPS $0.48 vs. $0.46 est., rev down -0.9% to $1.29B; cuts annual sales growth forecast to 3%, expects Q4 comp sales +1%, total rev -4%. • $CHPT Q3 loss (-$0.18) vs. est. (-$0.09), rev -10% to $99.6M; Q4 rev guidance $95M-$105M. Networked charging systems down -29%, subscription rev up +19%. • $COST November comp sales +3.1%, net sales +5.6% to $21.87B; Q1 sales +7.5% to $60.99B. • $FIVE Q3 EPS $0.42 vs. $0.17 est., sales +15% to $843.7M; Q4 sales guide $1.35B-$1.38B, comp sales expected to decline. • $PVH Q3 adj EPS $3.03 vs. $2.59 est., rev $2.26B vs. $2.22B; Q4 rev expected -7% to -6%, EPS $3.05-$3.20. • $PG now sources Gillette razor steel from India to mitigate potential Trump tariffs. • $AVAV Q2 rev $188.5M vs. $182.9M est.; adj EBITDA $25.9M vs. $31.7M est.; maintains FY25 EPS $3.18-$3.49, revenue $790M-$820M. • $APD: Mantle Ridge now nominates only four for the board, down from nine. • $CULP Q2 adj op income ($2.6M) vs. ($3.589M) est., sales $55.7M vs. $58M est.; expects flat to slightly down Q3 sales, positive EBITDA in 2H, profitable by Q4. • $GEF Q4 EPS $1.08 vs. $1.10 est.; rev up 8.3% to $1.42B, adj EBITDA down 0.8% to $197.6M; FY25 adj EBITDA expected at $675M low-end. • $LUV boosts Q4 revenue per seat mile forecast to 5.5%-7% from 3.5%-5.5%, due to pricing and travel demand. • $FI stock falls as CEO Frank Bisignano is nominated by Trump to lead the SSA. • $FOUR downgraded to Hold from Buy after CEO Jared Isaacman is chosen by Trump to head NASA. • $HOOD plans Asia expansion, setting up in Singapore. NYPD seeks man who killed UnitedHealth $UNH executive Brian Thompson outside a Manhattan hotel, suspect fled into Central Park. TSM discussing with $NVDA to manufacture AI chips in Arizona. • $AMAT downgraded to Underweight at Morgan Stanley due to memory market concerns. • $HPE upgraded to Overweight, target price raised post-Juniper acquisition. • $NCNO Q3 adj EPS $0.21 vs $0.16 est., Q4 rev guidance below estimates. • $OOMA Q3 EPS $0.17 vs $0.16 est., raised yearly outlook. • $S Q3 EPS loss ($0.25) vs $0.01 est., slightly beat on revenue for Q4 and year. • $SNPS Q4 adj EPS $3.40 vs $3.30 est., Q1 guidance below expectations. • $VRNT Q3 EPS $0.54 vs $0.43 est., strong SaaS growth, FY25 revenue guidance up. • $DIS increases dividend to $1.00 per share. • $SMTC launches $400M stock offering.

#Downgrades - Nov 26, 2024 • $AAL: UBS Downgrades to Neutral from Buy - PT $16 • $BC: B.Riley Downgrades to Neutral from Buy - PT $88 (from $95) • $EG: Jefferies Downgrades to Hold from Buy - PT $429 (from $420) • $GS: HSBC Downgrades to Hold from Buy • $HUBB: Deutsche Bank Downgrades to Hold from Buy - PT $473 (from $493) • $LUV: UBS Downgrades to Sell from Buy - PT $27 • $MS: HSBC Downgrades to Hold from Buy • $SUM: Citi Downgrades to Neutral from Buy - PT $52.50 (from $55) • $SUM: Longbow Downgrades to Neutral from Buy - PT $52.50 • $SUM: Wolfe Research Downgrades to Peerperform from Outperform • $SUM: Loop Capital Downgrades to Hold from Buy - PT $52.50 (from $54) • $SAVA: H.C. Wainwright Downgrades to Neutral from Buy • $TGT: Daiwa Securities Downgrades to Neutral from Outperform - PT $130 (from $170) • $FIBK: DA Davidson Upgrades to Buy from Neutral - PT $42 • $GMS: DA Davidson Downgrades to Neutral from Buy - PT $97

$LUV RESULTS: Q3 🔸 ADJ EPS $0.15 vs. $0.38 y/y, EST $7.10 🔸 Operating revenue $6.87B, +5.3% y/y, EST $6.81B 🔸 Passenger revenue $6.25B, +5.7% y/y, EST $6.16B 🔸 Freight revenue $43M, -2.3% y/y, EST $45.9M 🔸 Other revenue $577M, +1.4% y/y, EST $588.7M 🔸 ADJ net income $89M, -63% y/y, EST $51M 🔸 ADJ operating income $32M, -86% y/y, EST loss $12.9M 🔸 Available seat miles 45.22B, +2.4% y/y, EST 45.05B 🔸 PRASM $13.82, +3.3% y/y 🔸 Revenue passenger miles 36.74B, +3.1% y/y, EST 36.83B 🔸 Load factor 81.2% vs. 80.7% y/y, EST 81.7% 🔸 Average passenger fare $175.97, +5.2% y/y, EST $172.52 🔸 Yield per passenger mile $17.01, +2.5% y/y

#Upgrades - Oct 09, 2024 $AFRM: Morgan Stanley Upgrades to Equalweight from Underweight - PT $37 (from $20) $HD: Loop Capital Upgrades to Buy from Hold - PT $460 $HON: CFRA Upgrades to Buy from Hold - PT $235 $INTR: JPMorgan Upgrades to Overweight from Neutral - PT $8.50 (from $7.50). $LOW: Loop Capital Upgrades to Buy from Hold - PT $30 $LPLA: Wells Fargo Upgrades to Overweight from Equal Weight - PT $285 (from $235) $LUV: Jefferies Upgrades to Hold from Underperform - PT $32 (from $24) $MSCI: Redburn-Atlantic Upgrades to Buy from Neutral - PT $680 $RJF: JMP Securities Upgrades to Market Outperform from Market Perform - PT $146 $SAIA: Wolfe Research Upgrades to Outperform from Peerperform $VLO: Wells Fargo Upgrades to Overweight from Equal Weight - PT $165 (from $172) $VNET: HSBC Upgrades to Buy from Hold - PT $5.20