Morning Preview: August 13, 2020

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Early Look

Thursday, August 13, 2020





DJ Industrials




S&P 500










Stock futures are little changed, trading cautiously ahead of economic data where weekly jobless claims are expected to show 1.1M to have filed for first time unemployment claims (would mark the 21st week above 1 million claims), while continuing claims are expected at 15.8M. Dow component Cisco (CSCO) shares slide after Q4 results topped views but issued guidance that fell short of consensus expectations (revs down 9%-11% vs. est. decline of 7%). In the commodity space, the IEA said the Covid crisis “has cast a long shadow” over crude demand as it lowered its forecasts for the first time in several months. Stocks are only down slightly as the S&P 500 index traded above its February closing high of 3,386 on Wednesday, but couldn’t settle above that level, ending higher 1.4% at 3.380 (all time intraday high still higher at 3,393.52). In Asian markets, The Nikkei Index jumped 405 points to 23,249, the Shanghai Index gained a point to 3,320 and the Hang Seng Index slid -13 points to 25,230. In Europe, the German DAX is down around -30 points to 13,030, while the FTSE 100 is down -60 points to 6,218. In addition to the jobs data, markets are closely watching (and hoping) for a stimulus deal to be reached in Washington, but the two sides aren’t close after weeks of negotiations. Trade talks between China and the U.S. are also on the agenda, with the two sides expected to meet on Saturday to review their deal.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 46.66 points, or 1.40%, to 3,380.35

·     The Dow Jones Industrial Average rose 289.93 points, or 1.05%, to 27,976.84

·     The Nasdaq Composite jumped 229.42 points, or 2.13%, to 11,012.24

·     The Russell 2000 Index advanced 8.15 points, or 0.52% to 1,583.25


Economic Calendar for Today

·     8:30 AM EST      Weekly Jobless Claims…est. 1.1M

·     8:30 AM EST      Continuing Claims…est. 15.8M

·     8:30 AM EST      Import Prices MoM for July…est. 0.6%

·     10:30 AM EST    Weekly EIA Natural Gas Inventory Data


Earnings Calendar:

·     Earnings Before the Open: BLNK, DTIL, ENS, HOOK, IIVI, MTBC, TPR, WCC

·     Earnings After the Close: AMAT, APTX, ARAY, AWH, BIDU, CWBR, QRHC, RKDA, TFFP, VIVE


Other Key Events:

·     Canaccord Annual Global Growth Conference, 8/12-8/13

·     Wedbush Virtual Footwear Summit

·     William Blair Virtual Insurance Technology Conference






WTI Crude















10-Year Note





Sector News Breakdown


·     Lyft (LYFT) Q2 EPS loss ($1.41) vs. est. loss (99c) and revs down -61% YoY to $339.3M vs. est. $334.5M; 2Q adjusted net loss $265.8M; 2Q active riders fall -60% YoY to 8.69 million vs. est. 10.5 million and 2Q revenue per active rider $39.06; said to achieve adjusted EBITDA profitability with 20%-25% fewer rides than originally contemplated in fourth quarter 2021 target

·     Fossil (FOSL) 2Q EPS ($0.44) vs. est. ($1.71) on sales $259Mm vs. est. $182.1Mm, says ended qtr with $278Mm cash and equiv and $269Mm total debt; says expects to end 3Q with $250-300Mm cash & equiv; not providing full year guidance; sees Q3 worldwide sales down 35% to 45%

·     Revolve Group (RVLV) shares rose 14%; Q2 adjusted EPS 18c on revs $142.78M vs. est. 2c/$119.41M; said REVOLVE segment inventory turned approximately 30% faster YoY, serving as a key driver of our strong cash flow

·     SpartanNash (SPTN) Q2 adj EPS 73c tops the 63c estimate while Q2 revenue $2.18B misses the est. $2.26B; raises FY20 EPS view to $2.40-$2.60 from $1.85-$2.00 (est. $2.07) and now expects fiscal 2020 adjusted EBITDA of $232M-$242M above the prior view $205M-$215M; guidance continues to reflect capital expenditures and IT capital in the range of $80.0M-$90M

·     Telenav (TNAV) Q4 EPS loss (20c) on revs $35.35M vs. est. loss (13c)/$44.43M

·     Vroom (VRM) shares fell -8%; 2Q adj EPS ($0.34) vs. est. $(0.70) on revs $253.1Mm vs. est. $234.9Mm; says expects another qtr of yr/yr growth in ecommerce unit sales and revs for 3Q and improvement in total ecommerce gross profit per unit; guides 3Q revs $268-290Mm vs est $344.6Mm, sees 3Q EPS loss 37-42c vs. est. loss/shr -36c; Q2 average vehicle selling price $25.4K, down 17.4% from last year


Energy, Industrials and Materials

·     The IEA said it sees global crude demand for 2020 at 91.1M barrels per day, down 140K bpd from a previous projection and reflecting a fall of 8.1M bpd Y/Y; also revised down its 2021 global oil demand estimate by 240K barrels per day to 97.1M bpd.

·     3M Company (MMM) July sales rose 6% to $2.8B, organic local currency sales rose 3%

·     Ameren (AEE) downgraded to Neutral from Buy at Bank America

·     Occidental Petroleum (OXY) upgraded to Neutral from Underweight at JPMorgan

·     Nabors Industries (NBR) downgraded to Sell from Neutral at Goldman Sachs

·     EnerSys (ENS) Q1 adj EPS 92c on revs $704.9M vs. est. 67c and $692.0M

·     TFI International (TFII) 4.4M share Secondary priced at $43.25

·     ZTO Express (ZTO) Q2 adjusted earnings per ADS 26c on revs $906.2M vs. est. 27c/$903M



·     StoneCo (STNE) 27.375M share Secondary priced at $47.50

·     Stewart (STC) 2.6M share Secondary priced at $38.00



·     1Life healthcare (ONEM) 2Q revs $78Mm vs. est. $61.7Mm; guides 3Q revs $84-89Mm vs. est. $74.6Mm, sees 3Q adj EBITDA loss $12-70Mm vs. est. -21.95Mm, sees FY ending membership count 505-515k

·     Quidel (QDEL) said Health Canada approved its Lyra Direct SARS-CoV-2 Assay

·     SmileDirectClub (SDC) 2Q EPS ($0.13) ex items vs. est. ($0.14) on revs $107Mm vs. est. $84.2Mm, says avg aligner gross sales price $1,817 for 2Q, says making good progress toward its 4Q adj EBITDA goals

·     Adverum Biotechnologies (ADVM) 14.5M share Secondary priced at $13.00

·     Seres Therapeutics (MCRB) 10.5M share Secondary priced at $21.50


Technology, Media & Telecom

·     Cisco Systems (CSCO) shares fell -5%Q4 adj EPS 80c vs. est. 74c; revs $12.2B vs. est. $12.08B; Q4 cash and equivalents $29.4B; sees Q1 EPS 69c-71c vs. est. 76c and revs to fall (9%-11%) for Q1, below the estimate of down (-7.15%)

·     Aspen Technology (AZPN) shares rose 24%; Q4 adjusted EPS $1.54 on revs $199.3M vs. est. $1.17/$176.57M; guides FY21 adjusted EPS $4.78-$5.32 vs. est. $3.64 and revenue $704M-$754M, well above the consensus $600.43M

·     CACI (CACI) Q4 EPS $3.68 on revs $1.50B vs. est. $3.44/$1.47B; 4q adjusted ebitda $162.9 million, +50% YoY; Contract awards in Q4 FY20 totaled $3.4 billion, with over 55% for new business to CACI; announced it has acquired Ascent Vision Technologies, LLC; guides year EPS $13.50-$14.28 on revs $6.0B-$6.2B vs. est. $13.74 and $6.06B

·     Ping Identity (PING) 2Q revs $59Mm vs. est. $53.8Mm, qtrly ARR $235.2Mm +19%; guides 3Q revs $54-57Mm vs. est. $59.6Mm, sees 3Q total ARR $240.2-242.2Mm, not providing FY outlook

·     KE (KE) 106M share IPO priced at $20.00

·     OneConnect (OCFT) 18M share Secondary priced at $18.00

·     Schrodinger (SDGR) 4.5M share Secondary priced at $66.00

·     Sprout Social (SPT) 6M share Secondary priced at $27.50

·     Vertiv Holdings (VRT) 20M share Secondary priced at $15.25


Market commentary provided by Catena Media Financials US, LLC, 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.

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