Early Look
Thursday, August 12, 2021
|
Futures |
Up/Down |
% |
Last |
|
Dow |
40.00 |
0.12% |
35,413 |
|
S&P 500 |
2.25 |
0.05% |
4,442 |
|
Nasdaq |
5.50 |
0.04% |
15,025 |
Another day, another record high for the Dow and S&P 500 as futures are pointing to a slightly higher open, building on the ongoing upside momentum that pushed the S&P 500 to its 45th all-time high Wednesday. Both the Dow Jones Industrial Average and S&P 500 are coming off all-time bests as consumer prices (CPI) data indicated U.S. inflation was in-line with estimates, raising hopes that growth may have peaked, while sectors tied to economic growth such as industrials, materials and metals advanced a second day on the heels of the passage of a large infrastructure bill. The July consumer price index increased 0.5% last month after climbing 0.9% in June, though on a YoY basis was above 5% again (ahead of today’s PPI data at 8:30 AM ET). Meanwhile, two Fed members (George and Kaplan) each said the central bank should announce its timeline to reduce its massive bondholding, with Kaplan calling for it to begin next month, with tapering to begin in October. Healthcare was also a drag on markets as S&P components MRNA and PFE fell after the drug regulator of the European Union said it was looking into new possible side-effects of mRNA COVID-19 shots. Asian shares dropped for the first time this week as China stepped up scrutiny of its insurance technology platforms while European stocks drift on mixed earnings results. The Nikkei Index slipped -55 points to 28,015, the Shanghai Index slid -7 points to 3,524, and the Hang Seng Index dropped -142 points (0.535) to settle at 26,517. In Europe, the German DAX is up over 60 points to 15,888, while the FTSE 100 is down a few points at 7,210.
Events Calendar for Today
· 8:30 AM ET Weekly Jobless Claims…est. 375K
· 8:30 AM EST Continuing Claims…est. 2.88M
· 8:30 AM ET Producer Price Index (PPI) MoM for July…est. 0.6%
· 8:30 AM ET PPI Ex: Food & Energy (core) MoM for July…est. 0.5%
· 8:30 AM ET Producer Price Index (PPI) YoY for July…est. 7.3%
· 8:30 AM ET PPI Ex: Food & Energy (core) YoY for July…est. 5.6%
· 10:30 AM ET Weekly EIA Natural Gas Inventory Data
· 1:00 PM ET U.S. to sell $27 bln in 30-year bonds
Earnings Calendar:
· Earnings Before the Open: AVXL, AZEK, BDR, BODY, BR, BTTR, CELH, EFOI, EMAN, EYE, FSTX, GRWG, HOOK, KELYA, MDP, MIDD, MKTW, NYC, PGTI, SOHO, TAST, UP, UTZ, VERU
· Earnings After the Close: ABNB, ACHV, AFIB, APDN, ASTR, AWH, BBI, BIOL, BLBD, BOXL, BW, CAPR, CODX, CRMD, DASH, DCO, DIS, EAR, FIGS, FLO, FRGI, HOFV, ICCC, INTZ, IPWR, KINS, LAZR, LIVX, LMB, LVOX, LZ, MOTS, OPGN, PHUN, PTE, SFE, SGHT, SOFI, TLMD, TPCS, VIVE, WISH, XL
Other Key Events:
· BTIG HIMSS Digital Health Booth Tour (virtual), 8/11-8/12
· Canaccord Genuity 41st Annual Growth Conference (virtual), 8/10-8/12
· Cowen Annual Communications Infrastructure Hybrid Summit, 8/9-8/12
· Cowen 9th Annual Internet & Media Bus Tour (virtual), 8/9-8/13
· Credit Suisse 4th Annual FinTech Conference (virtual), 8/11-8/13
· JPMorgan Auto Conference (virtual), 8/11-8/12
· KeyBanc Capital Markets Technology Leadership Virtual Forum, 8/9-8/12
· Oppenheimer 24th Annual Technology, Internet & Comm Conference (virtual), 8/10-8/12
· Piper Biotech Virtual Tour, 8/10-8/12
· UBS Financial Services Conference (virtual), 8/10-8/12
Market Closing Prices Yesterday
· The S&P 500 Index gained 10.95 points, or 0.25%, to 4,447.70
· The Dow Jones Industrial Average rose 220.30 points, or 0.62%, to 35,484.97
· The Nasdaq Composite slipped -22.95 points, or 0.16%, to 14,765.14
· The Russell 2000 Index advanced 10.98 points, or 0.49% to 2,250.34
|
Macro |
Up/Down |
Last |
|
Nymex |
-0.08 |
69.17 |
|
Brent |
-0.04 |
71.40 |
|
Gold |
1.10 |
1,752.80 |
|
EUR/USD |
-0.0002 |
1.1737 |
|
JPY/USD |
-0.02 |
110.41 |
|
10-Year Note |
-0.008 |
1.351% |
World News
· The International Energy Agency (IEA) cut its outlook for global oil demand “sharply” for the rest of 2021 as the resurgence of coronavirus rocks major consumers and predicted a new surplus in 2022. The IEA cut its 2021 global oil demand growth forecast by 100,000 barrels a day, while upgrading its 2022 forecast by 200,000 barrels a day
· Eurozone Jun Industrial Production: m/m -0.3% vs -0.2% consensus; y/y 9.7% vs 10.4% consensus
· UK Q2 GDP: q/q 4.8% in-line; y/y 22.2% vs 22.1% consensus; UK Jun GDP: 1.0% vs 0.8% consensus; UK June Trade Balance: -£11.99b vs -£9.1b consensus; K June Ind Production m/m 0.7% vs 0.3% consensus, y/y 8.3% vs 9.4% consensus
Sector News Breakdown
Consumer
· DoorDash (DASH) is said to have held talks to purchase Instacart over the past two months that may have valued the grocery delivery company at $40B to $50B. The talks felt apart in recent weeks at least partly over regulatory concerns, according to a report in The Information https://bit.ly/2VKi4F5
· Core-Mark Holding (CORE) said the waiting period under the HSR act for Performance Food Group’s (PFGC) planned purchased expired on Aug. 9 and the closing conditions for the deal have been satisfied
· Fisker Inc (FSR) announces private offering of $600 mln 5-yr convertible notes
· Nio (NIO) Q2 non-GAAP EPS loss (-$0.03) vs. est. loss (-$0.11); Revenue of $1.31B (+127% Y/Y) beats by $20M; said achieved a record-high quarterly delivery of 21,896 vehicles in Q2, followed by 7,931 vehicles in July, bringing the cumulative deliveries of NIO vehicles to 125,528 as of July 31, 2021
· Blink Charging (BLNK) 2Q EPS ($0.32) vs est. ($0.16) on revs $4.4Mm vs est. $2.6Mm
· eBay Inc. (EBAY) Q2 adj EPS $0.99 vs. est. $0.95; Q2 revs $2.7B vs. est. $3.00B; expands share repurchase authorization by an additional $3B; entered agreement to sell about 135M shares of eBay’s Adevinta stock to Permira for over $2.4B, reducing ownership to 33%; announced an agreement to sell 80.01% of eBay Korea business to eMart for about $3B; guides Q3 revs $2.42B-$2.47B vs. est. $2.92B; annual active sellers grew by 5%, for total of 19M global active sellers
· Fossil Group (FOSL) 2Q EPS ($0.02) on sales $411Mm; sees 3Q net sales +5-10%; guides FY net sales growth to approx +14-17%;
· Lordstown Motors (RIDE) 2Q EPS ($0.61) vs est. ($0.49); pursuing external capital sources including debt and equity-linked securities; sees FY op exp $95-105Mm, expects to end 3Q with liquidity between 225-275Mm cash and equivalents without any funds from a capital raise
· Utz Brands (UTZ) Q2 adj EPS 13c vs. est. 15c; Q2 revs $299.2M vs. est. $290.29M; sees FY 2021 adjusted shr $0.55 to $0.60; believes that consumer demand for its products will remain strong in second half of fiscal 2021; says continue to expect fiscal 2021 net sales consistent with fiscal 2020 pro forma net sales
· Vroom (VRM) Q2 adj EPS loss (-$0.48), in-line with consensus; Q2 revs $761.89M vs. est. $637.99M; for Q2, had18,268 ecommerce units sold, up 172% YoY; Ecommerce revenue of $579.7 million, up 230% YoY; Ecommerce gross profit of $49.6 million, up 588% YoY
Energy
· Array Technologies (ARRY) 2Q EPS $0.00 vs est. $0.01 on revs $202.8Mm vs est. $231Mm; guides FY revs $850-940Mm vs est. $1B, sees FY adj EPS $0.15-0.25 vs est. $0.37
· EnerSys (ENS) Q adj EPS $1.25 vs est. $1.20 on revs $814.9Mm vs est. $810.5Mm, backlog grew $157Mm; guides 2Q adj EPS $1.03-1.13 vs est. $1.28
· Canadian Solar (CSIQ) Q2 EPS $0.18 vs. est. loss (-$0.30); Q2 revs $1.43B vs. est. $1.43B; Q2 solar module shipments of 3.7 GW, top end of 3.5 GW to 3.7 GW guidance; sees Q3 revs $1.2B-$1.4B vs. est. $1.62B; reducing its full year 2021 total module shipment guidance to 16 GW to 17 GW; reiterates its project sales guidance and total battery storage shipment guidance for FY 2021; carve-out IPO of CSI solar subsidiary remains on track
Financials
· AllianceBernstein L.P. (AB) preliminary assets under management increased to $748 billion during July 2021 from $738 billion at the end of June. Market appreciation and modest firmwide net inflows drove the 1% increase.
· Manning & Napier, Inc. (MN) reported preliminary assets under management (“AUM”) as of July 31, 2021 of $22.5 billion, compared with $22.3 billion at June 30, 2021
· Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $162.9 billion as of July 31, 2021.
· Opendoor Technologies (OPEN) Q2 EPS loss (-$0.24) vs. est. loss (-$0.34); Q2 revs $1.2B vs. est. $1.09B; Gross profit of $159 million, up 64% versus 1Q21; gross margin of 13.4%, up 40 basis points versus 1Q21; Adjusted EBITDA of $26 million versus ($2) million in 1Q21; adjusted EBITDA margin of 2.2% versus (0.3%) in 1Q21; sees Q3 revenue $1.8B-$1.9B vs. est. $1.52B
Healthcare
· In vaccine news, NBC reports that the FDA would authorize a third shot of coronavirus vaccine as soon as Thursday for certain people with weakened immune systems. The decision to expand the emergency use of the vaccines from Moderna (MRNA) and the Pfizer (PFE)/BioNTech (BNTX) shots
· Amwell (AMWL) Q2 EPS loss (-$0.15) vs. est. loss (-$0.19); Q2 revs $60.2M vs. est. $61.7M; Q2 gross margins increased 600 bps to 44% of revenue versus 38% last quarter; said total visits of 1.3 million versus 1.6 million last quarter; lowers year revs to $252M-$262M from $260M-$270M and narrows year adj Ebitda loss view
· Fulcrum Therapeutics (FULC) 6.6M share secondary priced at $19.00
· GoHealth (GOCO) 2Q EPS ($0.12) vs est. ($0.04) on revs $196.9Mm vs est. $175.1Mm; guides FY revs $1.2-1.3B vs est. $1.24B, sees FY adj EBITDA $300-330Mm
· Hims & Hers (HIMS) Q2 EPS loss (-$0.05) vs. est. loss (-$0.10); Q2 revs $60.7M vs. est. $56.49M; sees Q3 revs $69M-$71M vs. est. $58.31M and sees year revs $251M-$255M vs. est. $226.3M
· Xeris Pharmaceuticals (XERS) announced it has received U.S. FDA clearance for phase 1 clinical trials for its hypothyroidism treatment
Industrials & Materials
· Apogee Enterprises (APOG) announced plans to realign and simplify its business structure to “bring a stronger focus to serving customers, enable a more competitive cost model, and better position the company for future growth and improved profitability; now expects to achieve $20M-$30M of annualized savings by the end of fiscal 2023
· Royal Gold (RGLD) 4Q EPS $1.25 vs est. $0.92 on revs $168Mm vs est. $165Mm; guides 1Q stream segment sales 62,000-67,000 GEOs with qtr-end inventory 22,000-27,000 GEOs
· Gates Industrial (GTES) 25M share Secondary priced at $16.00
Technology, Media & Telecom
· Aspen Technology (AZPN) 4Q adj EPS $1.53 vs est. $1.47 on revs $198Mm vs est. $208.1Mm; guides FY22 adj EPS $4.79-5.17 vs est. $4.87, sees FY revs $702-737Mm vs est. $728.8Mm
· Avnet (AVT) Q4 adj EPS $1.12 vs. est. $0.79; Q4 revs $5.2B vs. est. $5B; sees Q1 adj EPS $1.02-$1.12 vs. est. $0.79; sees Q1 revs $5.1B-$5.4B vs. est. $5.07B
· Baidu (BIDU) Q2 EPS $2.39 vs. est. $2.07; Q2 revs $4.86B vs. est. $4.78B; sees Q3 revs $4.7B-$5.2B vs. est. $5.14B; in June, Baidu MAUs reached 580 mln and daily logged in users reaching 77%; iQIYI subscribers reached 106.2 mln in June 2021; qtrly online marketing revenue was RMB 19.0 bln ($2.95 bln), up 18% year over year
· KnowBe4 (KNBE) 10.43M share Secondary priced at $20.75
· Bumble (BMBL) Q2 EPS loss (-$0.06) vs. est. 0c; Q2 revs $186.22M vs. est. $177.51M; Q2 total paying users increased 20% to 2.9M; Q2 total average revenue per paying user increased to $20.88, compared to $18.12; -adjusted EBITDA was $51.9 million, or 27.9% of revenue, compared to $32.5 million, or 24.1% of revenue; sees FY adj Ebitda $195M-$200M
· CACI International (CACI) 4Q adj EPS $6.26 vs est. $5.58 on revs $1.564B vs est. $1.566B, backlog at June 30 was $24.2B; guides FY22 revs $6.2-6.4B vs est. $6.05B, sees FY22 adj EPS $18.00-18.83 vs est. $18.17
· Desktop Metal, Inc. (DM) will acquire all of the issued and outstanding shares of ExOne (XONE) with ExOne shareholders to receive $8.50 in cash and $17.00 in shares of Desktop, for a total consideration of $25.50 per share, representing a transaction value of $575 million
· Duolingo Inc. (DUOL) Q2 total revs rose 47% to $58.8M; qtrly bookings $64.5M; monthly active users MAUs) 37.9M and DAUs 9.1M
· Rackspace Tech (RXT) 2Q adj EPS $0.24 vs est. $0.22 on revs $744Mm vs est. $741.4Mm; guides 3Q revs $750-760Mm vs est. $761.4Mm, sees 3Q adj EPS $0.23-0.25 vs est. $0.26
· Sonos (SONO) 3Q adj EPS $0.27 vs est. ($0.17) on revs $378.7Mm vs est. $313.6Mm; guides FY revs $1.695-1.71B vs est. $1.66B, sees gross margin 46.5-46.9% and adj EBITDA $270-280Mm vs est. $235.6Mm
Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.