Early Look

Wednesday, April 14, 2021

Futures	Up/Down	%	Last
Dow	3.00	0.01%	33,573
S&P 500	3.25	0.09%	4,136
Nasdaq	22.50	0.16%	13,998

 

 

Stock futures are flattish after another record run by the S&P 500 on Tuesday and another sharp advance by the Nasdaq Composite which is nearing its record all-time highs as well. The yield on the 10-year U.S. slipped to 1.62% late yesterday following an auction of 30-year bonds that was met with strong demand, helping boost interest in technology shares (especially mega caps which have seen massive advances the last few days – AAPL, AMZN, MSFT, FB, NVDA, TSLA), while banking and financial stocks slipped, ahead of a big week of earnings starting today (JPM, GS, WFC expected today). While the S&P 500 hit a record high yesterday, the Dow declined after U.S. health officials recommended a pause in the use of Johnson & Johnson’s (JNJ) vaccine citing rare cases of clotting. Bitcoin prices are jumping, rising another 1% back above the $64,000 level with strength across the entire crypto currency sector as Coinbase Global (COIN) is set to go public Wednesday via an eagerly anticipated direct listing IPO – Nasdaq and Goldman Sachs set a $250-a-share reference price for the stock on Tuesday afternoon. That would put the company’s market capitalization at about $65.3B given that Coinbase disclosed Tuesday that it will have some 261.3M shares outstanding. In Asian markets, The Nikkei Index fell -130 points to 29,620, the Shanghai Index gained 20 points to 3,416 and the Hang Seng Index advanced over 400 points (1.42%) to settle at 28,900. In Europe, the German DAX is down a few points to 15,220, while the FTSE 100 shares edge higher a few points to the 6,900 level.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 13.60 points, or 0.33%, to 4,141.59

·     The Dow Jones Industrial Average fell -68.13 points, or 0.20%, to 33,677.27

·     The Nasdaq Composite jumped 146.10 points, or 1.05%, to 13,996.10

·     The Russell 2000 Index declined -4.86 points, or 0.22% to 2,228.92

 

Events Calendar for Today

·     7:00 AM ET         MBA Mortgage Applications Data

·     8:30 AM EST      Import Prices MoM for March

·     10:30 AM ET      Weekly DOE Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: BBBY, FRC, GS, HOFT, JPM, LOVE, WFC

·     Earnings After the Close: KLXE

 

Other Key Events:

·     American Association for Cancer Research (AACR) Annual Meeting (virtual), 4/10-4/15

·     JPMorgan Retail Round-Up (virtual), 4/14-4/15

·     Needham Annual Healthcare Conference (virtual), 4/12-4/15

 

 

Macro	Up/Down	Last
Nymex	1.02	61.20
Brent	1.08	64.75
Gold	-2.20	1,743.20
EUR/USD	0.0009	1.1957
JPY/USD	-0.08	108.98
10-Year Note	+0.011	1.634%

 

 

World News

·     Australian Central Bank leaves the cash rate unchanged at 0.25%, leaves large scale asset purchases unchanged, prepared to lower cash rate if needed, monetary policy settings will stay in place until there’s confidence on reaching jobs & inflation targets, expects it will take a prolonged time to reach these targets

 

Sector News Breakdown

Consumer

·     Copa Holdings (CPA) said revenue passenger miles dropped 67.4% to 577M in March 2021 when compared to March 2019 and capacity declined 63.7% to 773M available seat miles

·     Stitch Fix Inc.’s (SFIX) Founder and CEO Katrina Lake will step down from her position and assume the role of executive chair of the board, the company said Tuesday.

·     Nikola (NKLA) rising following news of a collaboration with Iveco, OGE to accelerate deployment of hydrogen infrastructure and fueling solutions

·     Hooker Furniture (HOFT) Q4 EPS 71c on revs $155.3M; said since June 2020, the company began to experience historically high levels of demand and backlogs that continue to be robust and sustainable

 

Energy, Industrials and Materials

·     The American Petroleum Institute (API) showed a weekly draw of 3.61M barrels of oil for the latest week, gasoline inventories showed a build of 5.57M barrels, distillate inventories show a draw of 3M barrels and Cushing inventories show a build of 917K barrels

·     Air Lease (AL) announced the delivery of one new Airbus (EADSY) A321-200neo LR aircraft on long-term lease to Air Arabi

·     Airlines Spirit Airlines (SAVE) and JetBlue (JBLU) double upgraded to Overweight from Underweight at JPMorgan and raised Southwest (LUV) to Neutral from Underweight

·     Alaska Air Group (ALK) said it sees Q1 revs falling 57.5% from 2019 period vs. prior outlook of down 55%-60%, while capacity to drop 33% from 2019 period, unchanged from previous outlook and the load factor to rise to 52% vs. previous guidance of ~45%-50%

·     Occidental Petroleum (OXY) upgraded to Buy at MKM Partners on valuation

 

Financials

·     JPMorgan (JPM) Q1 revenue $33.12B vs. est. $30.4B

·     Nasdaq and Goldman Sachs set a reference price of $250 per share for Coinbase’s (COIN) direct listing, putting the valuation of Coinbase at $66.5B, assuming an estimated 266.2M shares outstanding

·     Manning & Napier (MN) reports preliminary AUM $21.1B as of March 31 (included approximately $15.5B in separately managed accounts and approximately $5.6B in mutual funds and collective investment trusts)

·     Victory Capital (VCTR) reported assets under management of $154.3B on March 31, 2021 vs. $150.6B prior month-end

 

Healthcare

·     Bruker (BRKR) guides Q1 revenue $549M-$554M, representing reported revenue growth of approximately 30% to 31%, above estimates of $506.86M

·     Flexion (FLXN) issues prelim Q1 revenue $24.6M vs. est. $25.23M

·     PerkinElmer, Inc. (PKI) sees Q1 reported and organic revenue growth of 98% and 90% driven by broad-based momentum across the portfolio. In total, non-COVID-19, or core, demand increased approximately 10% organically year-over-year, and COVID-19 related solutions contributed approximately $535 million of revenue in Q1

·     Galectin (GALT) shares rise over 20% after saying paper published in a medical journal shows using the co’s lead drug candidate with Merck & Co’s (MRK) cancer drug Keytruda significantly enhances tumor response to immunotherapy in patients with two types of cancer

 

Technology, Media & Telecom

·     SAP AG (SAP) raised year view; now expects EUR9.2B-EUR9.5B in adjusted cloud revenue and EUR23.4B-EUR23.8B adjusted cloud and software revenue, compared with its earlier view of EUR9.1B-EUR9.5B and EUR23.3B-EUR23.8B, respectively, driven by the fastest growth in new cloud business in five years

·     Atlassian (TEAM) preliminary Q4 revenue $566M-$572M well above consensus $487.49M and prior view of $475M-$490M issued in February driven by short-term dynamics related to our server and data center products

·     SeaChange International (SEAC) 4Q adj EPS ($0.09) vs. est. ($0.10) on revs $5.1Mm vs. est. $4.64Mm

·     Grupo Televisa (TV) and Univision announced that they have finalized a deal to combine their content and production assets. Televisa will receive $3B in cash and $1.5B in equity as part of the deal, and SoftBank (SFTBY) will invest $1B in the combined entity.

·     SolarWinds (SWI) guides prelim Q1 revenue $255.9M-$256.9M vs. est. $249.89M; prelim Q1 adjusted EBITDA $103M-$106M; sees preliminary results for Q1 loss of more than $16 million

·     Squarespace is said to plan to go public through a direct listing this year rather than a traditional IPO according to Bloomberg but says the plans, including timing, may still change

·     Palantir (PLTR) shares rose over 8% yesterday ahead of its Double Click demo event which starts today at 11 AM ET.