Morning Preview: August 24, 2021

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Early Look

Tuesday, August 24, 2021









S&P 500










U.S. futures are looking higher, adding to the record setting performances by the S&P 500 and Nasdaq yesterday on further vaccine approval optimism yesterday, while China stocks rebound for the first time in 2-weeks. Last week’s stock market pullback (if you can call 1% a pullback) is all but a memory as stocks surged on Monday, with the S&P 500 hitting an intraday record high along with the Nasdaq notching another new record close. Helping positive sentiment was the U.S. FDA granting full approval to the COVID-19 vaccine developed by Pfizer Inc and its partner BioNTech SE. Investors were also looking ahead to the Federal Reserve’s Jackson Hole symposium, which gets underway later this week. Energy led the way among S&P 500 sectors, rising 3.8% as crude prices rose about 5%, snapping its 7-day losing streak from last week, while defensive sectors such as utilities lagged. In Asian markets, The Nikkei Index jumped 237 points to 27,732, the Shanghai Index gains 37 points to 3,514 and the Hang Seng Index jumps 618 points to 25,727. In Europe, the German DAX rises over 50 points above 15,900, while the FTSE 100 is down a few points holding around the 7,100 level. The big event for markets this week will take place in Jackson Hole at the economic symposium of the Federal Reserve. While some officials have stated plans to scale back stimulus, threats from the Delta variant have raised questions about whether they will hold off on signaling a taper timeline on $120B/month in bond buying.

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 37.86 points, or 0.85%, to 4,479.53

·     The Dow Jones Industrial Average rose 215.63 points, or 0.61%, to 35,335.71

·     The Nasdaq Composite spiked 227.99 points, or 1.55%, to 14,942.65

·     The Russell 2000 Index advanced 40.70 points, or 1.88% to 2,208.30


Events Calendar for Today

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     4:30 PM ET         API Weekly Inventory Data

·     10:00 AM ET      New Home Sales MoM for July

·     10:00 AM ET      Richmond Fed Manufacturing for Aug


Earnings Calendar:

·     Earnings Before the Open: AAP, CTRN, IMBI

·     Earnings After the Close: ELMD, HEI, INTU, JWN, PSEC, SCSC, TOL, URBN, XPOF


Other Key Events:

·     American Association of Neurological Surgeons, 8/21-8/25, in Orlando, FL

·     UBS China Telco, Media, Internet Virtual Conference 2021, 8/23-8/27

·     Truist Texas Bank Virtual Summit, 8/23-8/24

·     Craig Hallum Online Gaming Conference 8/24

·     Piper Sandler MedTech and Diagnostics California Bus Tour (virtual), 8/24-8/26

·     Raymond James Diversified Industrials Virtual Conference, 8/24-8/25





















10-Year Note





World News

·     The House of Representatives scrapped a planned vote on Monday to advance two key economic proposals of President Biden’s $4.1T economic agenda. The chamber will reconvene at 12 p.m. ET today


Sector News Breakdown


·     Advance Auto Parts (AAP) Q2 adj EPS $3.40 vs. est. $3.03; Q2 revs $2.6B vs. est. $2.62B; Q2 comp store sales +5.8%; increased full year 2021 guidance as now sees FY comparable store sales up 6.0% to 8.0% (from 4%-6%) and raises year sales view to $10.6B-$10.8B (from $10.4B-$10.6B)

·     Mister Car Wash (MCW) announces 12M share offering of common stock for holders

·     Camping World (CWH) raises quarterly dividend 100% to 50c from 25c per share


Energy, Industrials and Materials

·     International Flavors & Fragrances (IFF) signed a deal to sell its microbial control unit to German specialty chemicals maker Lanxess, with the deal being valued at $1.3 billion, the companies said.

·     Ferroglobe (GSM) Q2 EPS 2c vs. (7c) last year; Q2 revs $418.5M vs. $250.0M last year; Adjusted EBITDA of $34.1M, up 54.5% compared to $22.1M in Q1 2021; Positive operating cash flow of $37.8M and a return to positive net cash flow of $21.6M

·     U.S.-listed energy shares rise premarket for a second day, mirroring strength in oil prices as hopes of improved coronavirus vaccination rates buoy energy’s demand outlook, after WTI crude snapped its 7-day losing streak yesterday

·     The Federal Aviation Administration, or FAA, is launching a review of how Boeing (BA) employees handle safety matters following a survey that found 35% of a small sample of employees reported issues with undue pressure and difficulties being transparent with regulators – WSJ



·     Riot Blockchain (RIOT) Q2 EPS 22c vs. est. 5c; Q2 revs $31.5M vs. est. $30.91M; Q2 total cash and Bitcoin of $195.4M as of June 30; Increased mining revenue margin to 70% for the three-month period ended June 30, 2021, as compared to 25% for the same three-month period in 2020

·     Banco Santander SA said Tuesday that its U.S. subsidiary Santander Holdings USA, Inc. will acquire the remaining shares it doesn’t already own in Santander Consumer USA Holdings Inc. (SC) for roughly $2.5 billion; Santander Holdings USA will buy the outstanding shares in Santander Consumer USA Holdings for $41.50 apiece via an all-cash tender offer



·     Cigna (CI) announces $2B accelerated buyback

·     Cara Therapeutics (CARA) shares rise after the company and Switzerland’s Vifor announced U.S. FDA approval for Korsuva kidney disease drug

·     Theravance Biopharma, inc. (TBPH) announces top-line results from phase 2b dose-finding induction study of Izencitinib in patients with ulcerative colitis. Izencitinib was well-tolerated and safety data were consistent with expectations for this gut-selective pan-jak inhibitor. Randomized, double-blind, placebo-controlled study did not meet primary endpoint: change in total mayo score at week eight, vs placebo

·     At least six U.S. states, including Georgia, have decided they will not fully sign on to a proposed $26 billion settlement with three drug distributors (ABC, CAH, MCK) and Johnson & Johnson (JNJ), which have been accused of fueling the nation’s opioid epidemic, according to the states’ attorneys general – Reuters


Technology, Media & Telecom

·     Palo Alto Networks (PANW) Q4 adj EPS $1.60 vs. est. $1.43; Q4 revenue $1.2B vs. est. $1.17B; Q4 billings +34% to $1.9B; guides 1Q adj EPS $1.55-1.58 vs est. $1.59, sees 1Q revs +26-28% vs est. 21% and total billings $1.29-1.31B; guides FY22 adj EPS $7.15-7.25 vs est. $7.07, sees FY revs +24-25% vs est. +18.4% and billings $6.60-6.65B

·     China stocks rebound (BABA, JD, TCHEY, BIDU) as Bloomberg reported Cathie Wood joins bargain hunters as Ark bought back into (JD) and Tencent Holdings (TCEHY) shares rise after the company bought back 230,000 shares for HK$100.9 mln ($12.95 mln) on Aug. 23, according to HK Exchange filing

·     Tencent Holdings (TCEHY) shares rise after the company bought back 230,000 shares for HK$100.9 mln ($12.95 mln) on Aug. 23, according to HK Exchange filing

·     Crowdstrike (CRWD) to replace Maxim Integrated (MXIM) in the Nasdaq-100 Aug 26th

·     The U.S. Securities and Exchange Commission (SEC) has started to issue new disclosure requirements to Chinese companies seeking to list in New York as part of a push to boost investor awareness of the risks involved, according to a document reviewed by Reuters and people familiar with the matter


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.

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