Market Snapshot
briefing.com
| Dow | 32219.05 | +344.57 | (1.08%) | | Nasdaq | 11710.59 | +276.54 | (2.42%) | | SP 500 | 3957.60 | +64.40 | (1.65%) | | 10-yr Note | -33/32 | 3.59 |
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| | NYSE | Adv 2203 | Dec 702 | Vol 1.2 bln | | Nasdaq | Adv 2916 | Dec 1533 | Vol 5.4 bln |
Industry Watch
| Strong: Communication Services, Consumer Discretionary, Information Technology, Industrials |
| | Weak: Real Estate, Consumer Staples |
Moving the Market
-- Big banks like Morgan Stanley (MS), JPMorgan Chase (JPM) will make uninsured deposits totaling $30 billion into FRC
-- Favoritism for high quality growth names, helped along by pleasing earnings and guidance from Adobe (ADBE)
-- Repricing a 25 bps rate hike at the March FOMC meeting following the ECB's decision to raise rates by 50 bps
-- Treasury yields rise as safety trade unwinds following FRC news
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Closing Summary
16-Mar-23 16:35 ET
Dow +371.98 at 32246.46, Nasdaq +283.22 at 11717.27, S&P +68.35 at 3961.55
[BRIEFING.COM] It shaped up to be a pretty good day in the stock market, but it didn't start out that way. It started out with bank stocks remaining under pressure and Treasury yields declining in an ongoing flight to safety trade.
At their lows for the day, the Dow, S&P 500, and Nasdaq were down 1.0%, 0.6%, and 0.7%, respectively, as market participants also digested the news that the European Central Bank agreed to raise its key policy rates by 50 basis points due to inflation being projected to remain too high for too long.
Sentiment shifted around midmorning, though, when a Wall Street Journal report highlighted a potential private sector solution to the issues at First Republic Bank (FRC 34.27, +3.11, +10.0%), which had been down as much as 36.5% at its low today. The report suggested big banks had been discussing a capital infusion deal for FRC.
That news prompted a stark reversal in stock prices, which was presumably helped by short covering activity. Later in the day, it was confirmed that 11 banks, including JPMorgan Chase (JPM 130.75, +2.49, +1.9%) and Bank of America (BAC 28.97, +0.48, +1.7%), will make uninsured deposits totaling $30 billion into FRC.
Also, sentiment in the banking sector improved as Treasury Secretary Yellen told the Senate Finance Committee that "Americans can feel confident that their deposits will be there when they need them."
The idea of a private sector-led solution to the issues at FRC drove a broad rally effort, spearheaded by rebounding bank stocks and strong leadership from the mega cap stocks, which were relative strength leaders all day. The Vanguard Mega Cap Growth Index (MGK) rallied 2.6%.
The S&P 500 struggled initially to push past resistance at its 200-day moving average (3,939), but broke through that key technical level on renewed buying interest and finished near its highs for the day. The turnaround in the stock market fueled an unwinding of the safe-haven trade in the Treasury market. The 2-yr note yield, which traded as low as 3.85%, rose 19 basis points to 4.14% and the 10-yr note yield, which saw 3.37% today, rose nine basis points to 3.59%.
Nine of the 11 S&P 500 sectors closed with a gain led by information technology (+2.8%), communication services (+2.8%), and financials (+2.0%). The real estate (-0.1%) and consumer staples (-0.1%) sectors were the worst performers today.
- Nasdaq Composite: +12.0% YTD
- S&P 500: +3.2% YTD
- S&P Midcap 400: flat YTD
- Russell 2000: +0.6% YTD
- Dow Jones Industrial Average: -2.7% YTD
Reviewing today's economic data:
- Weekly Initial Claims 192K (Briefing.com consensus 215K); Prior was revised to 212K from 211K; Weekly Continuing Claims 1.684 mln; Prior was revised to 1.713 mln from 1.718 mln
- The key takeaway from the report is that initial claims were back below 200,000, reflective of a tight labor market that features a reluctance on the part of most employers to let employees go.
- February Housing Starts 1.450 mln (Briefing.com consensus 1.313 mln); Prior was revised to 1.321 mln from 1.309 mln; February Building Permits 1.524 mln (Briefing.com consensus 1.345 mln); Prior 1.339 mln
- The key takeaway from the report is that the stronger-than-expected activity wasn't just a multi-unit story. Single-family starts were up 1.1% month-over-month while single-family permits increased 7.6%.
- March Philadelphia Fed Index -23.2 (Briefing.com consensus -13.0); Prior -24.3
- The key takeaway from the report is that "most future indicators weakened, suggesting that the firms continue to have tempered expectations for growth over the next six months."
- February Import Prices -0.1%; Prior was revised to -0.4% from -0.2%
- February Import Prices ex-oil 0.4%; Prior was revised to 0.2% from 0.3%
- February Export Prices 0.2%; Prior was revised to 0.5% from 0.8%
- February Export Prices ex-ag. 0.1%; Prior was revised to 0.6% from 0.8%
- The key takeaway from the report is the moderation in year-over-year changes. Import prices were down 1.1%, versus up 11.4%, for the 12 months ending February 2022. Export prices were down 0.8%, versus up 16.8% for the 12 months ending February 2022.
Looking ahead to Friday, market participants will receive the following economic data:
- 9:15 a.m. ET: February Industrial Production (Briefing.com consensus 0.5%; prior 0.0%) and Capacity Utilization (Briefing.com consensus 78.5%; prior 78.3%)
- 10:00 a.m. ET: February Leading Indicators (Briefing.com consensus -0.4%; prior -0.3%) and March Univ. of Michigan Consumer Sentiment - Prelim (Briefing.com consensus 67.2; prior 67.0)
Treasuries settle with losses
16-Mar-23 15:30 ET
Dow +360.53 at 32235.01, Nasdaq +294.58 at 11728.63, S&P +68.45 at 3961.65
[BRIEFING.COM] The main indices remain near their highs of the day heading into the close.
Treasuries settled the session with losses across the curve. The 2-yr note yield rose 19 basis points to 4.14% and the 10-yr note yield rose nine basis points to 3.59%.
Looking ahead to Friday, market participants will receive the following economic data:
- 9:15 a.m. ET: February Industrial Production (Briefing.com consensus 0.5%; prior 0.0%) and Capacity Utilization (Briefing.com consensus 78.5%; prior 78.3%)
- 10:00 a.m. ET: February Leading Indicators (Briefing.com consensus -0.4%; prior -0.3%) and March Univ. of Michigan Consumer Sentiment - Prelim (Briefing.com consensus 67.2; prior 67.0)
GS and MS commit to deposit $ for FRC
16-Mar-23 15:05 ET
Dow +344.57 at 32219.05, Nasdaq +276.54 at 11710.59, S&P +64.40 at 3957.60
[BRIEFING.COM] The market remains in a steady climb currently.
A short time ago, CNBC reported that Goldman Sachs (GS 314.47, +2.30, +0.7%) and Morgan Stanley (MS 86.91, +1.52, +1.8%) have also committed to deposit $2.5 billion to First Republic Bank (FRC 32.99, +1.82, +5.8%), bringing the total to $30 billion.
Energy complex futures settled the session in mixed fashion. WTI crude oil futures fell 0.3% to $67.92/bbl and natural gas futures rose 2.3% to $2.62/mmbtu.
AMD gains in S&P 500 alongside tech/chip peers
16-Mar-23 14:25 ET
Dow +277.82 at 32152.30, Nasdaq +233.90 at 11667.95, S&P +53.02 at 3946.22
[BRIEFING.COM] The S&P 500 (+1.36%) is firmly situated in second place at this point on the penultimate session of the week. Trading has mostly leveled off in the last half hour, all three major indices drifting further off HoDs.
S&P 500 constituents Advanced Micro (AMD 94.89, +5.21, +5.81%), Warner Bros. Discovery (WBD 14.12, +0.55, +4.05%), and ServiceNow (NOW 438.93, +16.67, +3.95%) are among today's non-banking names that show strength. AMD moves higher, aided in part by gains in large cap tech and chip stocks, while NOW, alongside gains in the broader tech space, gets a boost from peer PagerDuty (PD 31.54, +3.70, +13.29%) after its strong report and guidance.
Meanwhile, solar component firm SolarEdge Technologies (SEDG 285.13, -21.30, -6.95%) is today's top laggard as cautious sell side commentary weighs on shares.
Gold lower after bank sentiment upswings on SNB offer to extend liquidity to Credit Suisse
16-Mar-23 14:00 ET
Dow +333.73 at 32208.21, Nasdaq +244.89 at 11678.94, S&P +59.81 at 3953.01
[BRIEFING.COM] With about two hours to go the tech-heavy Nasdaq Composite (+2.14%) stands atop the major averages.
Gold futures settled $8.30 lower (-0.4%) to $1,923.00/oz, paring recent gains as sentiment perked up in the banking/financial sectors today after reports yesterday that the Swiss National Bank would extended liquidity to Credit Suisse (CS 2.22, +0.06, +2.78%) if needed.
Meanwhile, the U.S. Dollar Index is down about -0.1% to $104.53.
Market staring at a box of chocolates
Today is looking like Forrest Gump's proverbial box of chocolates. You just never know what you're going to get.
The equity futures are mixed, Treasuries are simmering, oil prices are little changed, and the dollar is down modestly. Tangentially, you have larger bank stocks holding their ground and some regional bank stocks, like First Republic (FRC), PacWest Bancorp (PACW), and Western Alliance Bancorporation (WAL), back in plunge mode.
Mega-cap growth stocks continue to exhibit relative strength, paced by Meta Platforms (META) which is up 1.4% on the news that the U.S. might ban TikTok if its owners don't sell their stakes, while many other stocks languish.
Credit Suisse (CS) is up 5.6% after announcing it will pre-emptively borrow up to CHF 50 billion form the Swiss National Bank to improve its liquidity position; and then there is news that First Republic Bank is considering a sale (not from a position of strength we would add) and that Fitch Ratings has put Western Alliance Bancorporation on rating watch negative.
The European Central Bank (ECB) will issue a policy rate decision at 9:15 a.m. ET. Some reports suggest it will still press ahead with a 50 basis points rate hike as inflation worries trump the banking issues. Other reports tease the possibility of a smaller rate hike because of the banking issues.
This morning's economic data, meanwhile, is stirring the pot of rate-hike expectations for the Fed.
Initial jobless claims were better than expected, February housing starts and building permits were stronger than expected, the March Philadelphia Fed Index was weaker than expected but slightly better than last month, and the year-over-year changes in February import and export prices were on the right side of the Fed's desires.
- Initial jobless claims for the week ending March 11 decreased by 20,000 to 192,000 (Briefing.com consensus 215,000) and continuing jobless claims for the week ending March 4 decreased by 29,000 to 1.684 million.
- The key takeaway from the report is that initial claims were back below 200,000, reflective of a tight labor market that features a reluctance on the part of most employers to let employees go.
- February housing starts increased 9.8% month-over-month to a seasonally adjusted annual rate of 1.450 million units (Briefing.com consensus 1.313 million) while building permits -- a leading indicator -- increased 13.8% month-over-month to a seasonally adjusted annual rate of 1.524 million (Briefing.com consensus 1.345 million).
- The key takeaway from the report is that the stronger-than-expected activity wasn't just a multi-unit story. Single-family starts were up 1.1% month-over-month while single-family permits increased 7.6%.
- The March Philadelphia Fed Index edged up to -23.2 (Briefing.com consensus -13.0) from -24.3 in February.
- The key takeaway from the report is that "most future indicators weakened, suggesting that the firms continue to have tempered expectations for growth over the next six months."
- February import prices decreased 0.1% month-over-month. Excluding fuel, they were up 0.4%. Export prices were up 0.2% month-over-month. Excluding agricultural products, they were up 0.1%.
- The key takeaway from the report is the moderation in year-over-year changes. Import prices were down 1.1% for the 12 months ending February 2023, versus up 11.4% for the 12 months ending February 2022. Export prices were down 0.8% for the 12 months ending February 2023, versus up 16.8% for the 12 months ending February 2022.
There wasn't a strong reaction to the data. It was more indecisive than anything else -- like looking into a box of chocolates and not knowing which one to choose.
Currently, the S&P 500 futures are down 12 points and are trading 0.4% below fair value, the Nasdaq 100 futures are down six points and are trading fractionally below fair value, and the Dow Jones Industrial Average futures are down 117 points and are trading 0.4% below fair value. The 2-yr note yield is down four basis points to 3.91%, the 10-yr note yield is down seven basis points to 3.42%, WTI crude futures are up 0.1% to $67.66/bbl, and the U.S. Dollar Index is down 0.1% to 104.49.
For added measure, the CME FedWatch Tool shows a 61.3% probability of a 25 basis points rate hike from the Fed at its March FOMC meeting versus 54.6% yesterday... but, you never know what you will get there by the end of the day.
-- Patrick J. O'Hare, Briefing.com
Williams-Sonoma provides comforting results and outlook that ease fears of steeper sales drop (WSM)
Furniture and home decor company Williams-Sonoma (WSM) reported mixed 4Q23 results that included its first yr/yr revenue decline since the pandemic-impacted quarter of 1Q21, but the report eased investors' concerns about a steeper drop off in business. Heading into the report, it was well understood that consumer spending on big ticket items -- including for furniture and home improvement products -- had cooled off considerably. Disappointing recent earnings reports/outlooks from peers RH (RH) and Wayfair (W), as well as from big box retailers like Costco (COST) and Home Depot (HD), clearly illustrated this deceleration in demand.
Consequently, WSM faced a relatively low bar to hurdle with shares sinking by about 17% since the beginning of February. However, exceeding muted expectations isn't the only reason why the stock is rallying today. The company is likely gaining market share in this highly promotional and challenging business environment.
- Comparable brand revenue declined by just 0.6%, despite lapping a difficult year-earlier comp of +10.8%. Pottery Barn was especially impressive, posting a positive comp of 5.8%, on top of last year's +16.2% mark.
- Very few retailers in this market are generating mid-single-digit comps. Even COST, which benefits greatly from its food and sundries categories (over 50% of total sales), barely outperformed Pottery Barn's comps with a +6.8% increase in its most recent quarter. In fact, COST's big ticket item categories were down by 15% in its digital channel in 2Q23.
- RH doesn't provide a same store sales number, but its total revenue is declining at a faster rate than WSM's. Last quarter (3Q23), RH's sales fell by nearly 14% and analysts are predicting another 14% drop when the company reports Q4 results on March 23. Meanwhile, Wayfair has posted seven consecutive quarters of sales declines.
The stronger top-line growth is likely partly due to WSM's willingness to be a little more promotional than RH.
- In Q4, WSM's gross margin did decline by 380 bps yr/yr to 41.2%, which the company said was mostly due to higher inbound and outbound shipping and freight costs. In comparison, RH's generated adjusted gross margin of 49.7% in Q3.
- In our view, trading some margin for growth and market share gains seems like a winning proposition, especially since WSM has implemented some cost cutting measures to help offset the promotions.
- SG&A expenses declined by about 10% this quarter, helping operating margin to stay firm at 17.3% versus 17.6% in the year-ago quarter.
This year doesn't look to be any easier for WSM with the company guiding for a 3% decline to a 3% increase for FY24 revenue, meeting analysts' expectations for a 1.5% decrease. Still, the company is confident that it will continue to outperform its competitors, as illustrated by its announcement of a new $1.0 bln stock repurchase program and a 15% increase in its quarterly dividend.
UiPath's upbeat JanQ results accelerate its path to over 20% annual operating margins (PATH)
Shares of UiPath (PATH +16%) are gapping well above their 200-day moving average (15.40) following a solid beat-and-raise in Q4 (Jan). The robotic process automation (RPA) software developer also meaningfully accelerated its path to 20+% long-term non-GAAP operating margins, reflecting positive benefits from the company's recent restructuring initiatives.
- PATH's moves to streamline its organization and drive efficiencies contributed significantly to its record non-GAAP operating margins of 22%. This margin leap manifested in adjusted earnings shooting up by 200% yr/yr to $0.15, marking PATH's best quarter of profitability since going public in 2021.
- Less thrilling was PATH's revenue growth of just 6.5% yr/yr to $308.5 mln, which, although topped estimates, was PATH's lightest quarter of growth by far and a hard deceleration from the +19% posted last quarter.
- Still, PATH's annualized recurring revenue (ARR) of $1.204 bln, a 30% jump yr/yr, quickly brushed this weak point aside. The company also saw an improvement in net new ARR, which came in at $94 mln, up from $67 mln in Q3 (Oct). Meanwhile, PATH inked a record number of deals exceeding $1.0 mln in ARR, bumping the cohort to 229 from 201 last quarter and 158 in the year-ago period.
- Management's tone was clearly bullish when discussing FY24. The strong finish to FY23 served as a baseline for PATH's FY24 non-GAAP operating margins outlook of 9.5%, a 350 bp improvement yr/yr. Furthermore, PATH's FY24 sales projection of $1.253-1.258 bln was consistent with its 18% yr/yr baseline growth rate outlined during Investor Day in late September. Likewise, PATH's FY24 ARR projection of $1.425-1.430 bln also kept up with its 18% growth target detailed at Investor Day.
There are still risks on the horizon, explaining why shares of PATH may be hitting some resistance today around previous highs of $18.32. PATH's FY24 outlook assumes that the macroeconomic environment does not improve, with weakness in North America persisting throughout the year. Also, the company's revenue target depends on its sales team's repositioning building momentum as the year progresses. PATH also remains cautiously optimistic about Europe, its primary market; it is encouraged by its sales team's progress but is aware of lingering economic woes.
Nevertheless, the RPA market remains healthy despite the elevated uncertainty in the global economy. For example, PATH stated that it is starting to see larger companies discussing potentially going all in with UiPath's RPA offerings due to resource constraints, whether in labor or capital. Meanwhile, the central component of RPA is AI, which has been skyrocketing in popularity in recent months. On that front, PATH partnered with OpenAI, the organization behind ChatGPT, to develop additional generative AI technologies.
Bottom line, PATH's road ahead will be challenging, but its prospects are looking more favorable each quarter.
Signet Jewelers a diamond in a rough market as upside results reflect strong market position (SIG)
Signet Jewelers (SIG), the world's largest diamond jewelry retailer, is sparkling in an otherwise gloomy market after posting better-than-expected Q4 results that showcased the company's strong competitive position. While revenue and same store sales fell by 5.3% and 9.1%, respectively, SIG's performance still provided some relief that demand didn't erode at a more profound rate. It's worth pointing out that SIG lapped very difficult yr/yr comps, with same store sales surging by 23.8% in the year-ago quarter.
The company's "Inspiring Brilliance" growth strategy, which includes strengthening its digital business and updating its merchandise assortment to stay on trend, is helping it to outperform its market.
- On that note, annual U.S. jewelry industry sales are expected to be down mid-single digits this year, according to SIG, but its FY24 revenue guidance of $7.67-$7.84 bln calls for sales to be roughly flat on a yr/yr basis.
- SIG's confidence in gaining more market share, while delivering annual double-digit non-GAAP operating margin, provides it with the confidence to bump its share buyback program higher by $263 mln and increase its quarterly dividend to $0.23/share from $0.20/share.
- That FY24 revenue guidance did fall short of expectations, though, as did SIG's Q1 revenue guidance of $1.62-$1.65 bln. Understandably, the company is taking a cautious approach with its sales outlook given the tough business climate.
- In particular, demand in the lower price point consumer group remains weak and SIG doesn't expect that to improve much in FY24. An ongoing shift in consumer spending habits towards experience-oriented categories, and away from the jewelry category, is adding another layer to SIG's challenges. If all of that wasn't enough, the bridal business, which accounts for 47-49%, is expected to be down this year, before rebounding again in FY25.
Despite all these headwinds, SIG is still growing earnings and expanding its margins.
- In Q4, non-GAAP EPS increased by 10% yr/yr to $5.52, bolstered by a 60 bps improvement in non-GAAP operating margin. Solid cost management and healthier demand for higher-priced jewelry are two key factors underlying SIG's impressive bottom-line performance. More specifically, SG&A costs decreased by 5.8% yr/yr in Q4, while average transaction values were up by 3.9%.
The main takeaway is that SIG's results and outlook were better-than-feared and highlighted its ability to drive market share gains, margin expansion, and earnings growth, even against fierce headwinds in the jewelry market.
Dollar General's Q4 report mostly expected, driving its somewhat chilly reception today (DG)
Most of Dollar General's (DG -1%) Q4 (Jan) results were likely already baked into the price after the retail chain, which operates nearly 19,000 locations across the U.S., provided an update on Q4 in late February. DG lowered its earnings and same-store sales guidance at the time, citing lower-than-expected sales and higher-than-expected inventory damages resulting from the severe winter storm in December. DG also issued FY24 guidance, forecasting comp growth of +3.0-3.5% and EPS growth of +4-6%.
Therefore, even though DG's Q4 report today met analyst expectations across the board, and the company also reiterated its FY24 targets, these developments did not come as much of a surprise. DG added only a few new items, including raising its quarterly dividend by a respectable 7% to $0.59, although this was far below the 31% hike last year, and predicting FY24 revenue growth of +5.5-6.0%.
- On the plus side, Winter Storm Elliott, which clipped performance in Q4, was a one-off event occurring entirely out of DG's control. The storm took a considerable toll on the company, evidenced by comps in December growing by just +4.5%, well below the +6.7% and +6.5% comps seen in November and January, respectively.
- Still, DG also chalked up its +5.7% comp growth in Q4, below its initial forecast of +6-7%, to softer-than-expected sales. Clearly, the macroeconomic environment continues to weigh on DG. The company has expanded beyond its typical rural market into more urban areas with many big-box alternatives, which typically boast lower prices. During the inflationary environment, consumers are gravitating toward retailers that offer the best value, even if it means skipping out on some of the convenience DG's stores may offer.
- DG is not halting its expansion plans either. The company reiterated its goal of over 1,000 new store openings, 2,000 remodels, and 120 relocations during the year, each representing an acceleration from FY23, except for relocations. This agenda does not come cheap, illuminated by capital expenditures ticking up slightly to an estimated $1.8-1.9 bln in FY24 from $1.6 bln in FY23.
- As merchandise costs remain on the rise, increasing 14.3% yr/yr on a per-store basis in FY23, investors may be wary of DG's expansionary plans, especially if the economic environment worsens as they would coincide with weakening financial performance.
Bottom line, without new encouraging developments on the horizon, concerns that emerged since last quarter continue to linger, namely elevated inflationary costs and softening discretionary spending. Peers Dollar Tree (DLTR) and Five Below (FIVE) are experiencing similar woes, leading to their somewhat mild FY24 earnings outlooks. Still, DG has plenty of upside, especially given its mostly rural presence, where it remains the only option for local residents. Shares are also showing support around $212.50.
Adobe seems to be navigating macro headwinds pretty well, raises FY23 EPS guidance (ADBE)
Adobe (ADBE +4%) is nicely higher today after starting out FY23 on a strong note. The company's Q1 (Feb) results included its largest EPS upside in seven quarters. Revenue and Q2 (May) guidance was in-line, same as last quarter. Adobe also raised its FY23 EPS guidance, which we think is being viewed very positively by investors.
- Its Digital Media segment performed well with revenue rising 9% yr/yr (+14% constant currency) to $3.40 bln. This was slightly above prior guidance of $3.350-3.375 bln. DM is by far Adobe's larger segment, so people watch it closely. Adobe's other major segment is Digital Experience, which allows businesses to manage/track customer experiences using analytics. DE saw revenue grow 11% yr/yr (+14% CC) to $1.18 bln, which was at the high end of $1.16-1.18 bln prior guidance.
- Adobe addressed concerns about macro issues. Basically, there is really no change in its macro view since it set its annual guidance. Adobe says that digital is imperative for its customers. Also, a lot of the companies that have single product offerings are probably seeing more headwinds because clients may deprioritize some areas. Adobe has a broad, diversified offering which has helped. Adobe continues to see strong demand for its flagship applications, including Photoshop, Lightroom, Illustrator, Premiere Pro and Acrobat and is excited about the traction it's getting with Adobe Express. Also, businesses continue to prioritize investments in digital.
- Adobe also gave an update on its pending acquisition of Figma. Adobe has completed the discovery phase of the US DOJ second request and is prepared for the next steps, whether that is an approval or a challenge. Adobe believes the transaction remains on track to close by the end of 2023. We were surprised to get any color from Adobe, we were expecting a "no comment" on the DOJ angle, but Adobe sounds pretty confident.
Overall, this was a very good quarter for Adobe. We had some trepidation going in following DocuSign's (DOCU) weak results last week, citing softening demand trends. But maybe that is a good example of what Adobe was talking about. Adobe is much more diversified than DocuSign and that is helping. Again, we think the main reason for move in the stock is Adobe raising FY23 EPS guidance by more than the Q1 upside, which surprised investors who have heard a lot from other tech names about longer sales cycles and deals getting harder to close with more layers of scrutiny. Adobe seems to be "Acrobating" right along.
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