Early Look

Thursday, August 29, 2024

NVDA earnings weren’t bad, in fact they were a beat, but they weren’t enough to keep investors sufficiently excited. Shares declined almost 7% after hours and took AMD, QCOM and MRVL down in sympathy, among others. But, after testing support pivots overnight, US equity futures are broadly higher this morning (holy resilience, Batman) ahead of today’s round of economic releases. NVDA pared its decline to only about 2.5%, but investors’ focus can shift quickly between earnings and the macro, so stay tuned. In Asian markets, the Nikkei was flattish at -0.02% to 38,362, the Shanghai faded -0.5% to 2,823 but the Hang Seng gained 0.53% to 17,786. In Europe, the DAX climbed 0.79% to 18,929 after a better inflation report, while the FTSE 100 added 0.32% to 8,370. In commodities, WTI crude gained slightly to $74.71, natgas futures added 0.4% to $2.10 and gold gained $17/oz to $2,555. The Dollar index gained slightly while yields saw a small fade ahead of GDP data. 

• The Dow Jones Industrial Average lost 159.08 points, or -0.39%, to 41,091.42.
• The Nasdaq Composite lost 198.79 points, or 1.12%, to 17,556.03.
• The Russell 2000 Index declined -14.36 points, or -0.65% to 2,188.64

• 8:30 AM ET US Initial Jobless Claims
• 8:30 AM ET US Retail Inventories Ex. Auto Adv.
• 8:30 AM ET US Advance Goods Trade Balance
• 10:00 AM ET US Pending Home Sales Mo/Mo
• 10:30 AM ET EIA Natural Gas Change
• 3:30 PM ET          Fed’s Raphael Bostic speech

• Earnings After the Close: ADSK AMRK DDD DOMO ESTC GAP LULU MDB ULTA DELL MRVL

• CMG In an 8-K last night Chipotle announces appointment of Adam Rymer to CFO and Jamie McConnell to Chief Accounting and Administrative Officer beginning 10/1/24. Additionally, Former CFO Jack Hartung to remain with the organization indefinitely as President and Chief Strategy Officer, starting 10/1/24.
• GME In an 8-K filing last night GameStop “issued an irrevocable notice of termination pursuant to the Credit Agreement to voluntarily terminate the Credit Facility, including all commitments and obligations under the Credit Agreement. The termination is effective as of August 27, 2024. After giving effect to the termination, the Company’s principal sources of liquidity will be cash from operations and cash on hand.”
• BJRI Last night the restaurant chain announced the appointment of current Board Director Brad Richmond to interim CEO as of yesterday.
• DKNG DraftKings agreed to acquire private company Simplebet Inc., which specializes in wagers placed during a live sporting event, saying the deal will make betting easier for customers in a statement Wednesday night.
• VSCO Q2 adj EPS $0.40 vs est $0.36 on revs $1.42B vs est $1.407B; sees Q3 net sales +low-single vs est -1.3% and adj EPS ($0.80)-($0.60) vs est ($0.69).
• FIVE Q2 adj EPS $0.54 vs est $0.54 on sales $830.1Mm vs est $822.21Mm; sees Q3 sales $780-800Mm vs est $790.62Mm and adj EPS $0.10-0.22 vs est $0.13; guides FY sales $3.73-3.8B vs st $3.784B and adj EPS $4.35-4.71 vs est $4.69.
• GES Q2 adj EPS $0.42 vs est $0.43, adj op Inc $37.9Mm vs est $48.6Mm on revs $733Mm vs est $730Mm; guides Q3 revs +14.5-16.5% vs est +17.1% and adj EPS $0.33-0.45 vs est $0.58; sees FY revs +9.5-11% vs est +11.3% and adj EPS $2.42-2.70 vs est $2.79.
• DLTH Q2 adj EPS ($0.02) vs est ($0.10), adj EBITDA $10.6Mm on revs $141.6Mm vs est $130Mm; reaffirmed 2024 outlook, still sees FY adj EPS ($0.22) vs est ($0.33) and adj EBITDA about $39Mm vs est $34.92Mm

• TSLA Tesla asked Canada for lower tariff on China-made EVs, government source says
• PLAB Photronics Board Approves $100 Million Share Repurchase Plan, Up From $31.7 M

• RPTX Repare Therapeutics announced strategic reprioritization last night to focus on broad clinical portfolio; to focus company’s resources on its deep clinical Oncology pipeline.
• QGEN In a PR last night Qiagen announced that they are expanding QIAstat-Dx into precision medicine through partnership for companion diagnostics in chronic diseases.
• BMRN Announced last night to cut global workforce by about 225 employees., sees pretax charges of ~$30M – $40M.
• COO Q3 adj EPS $0.96 vs est $0.91 on revs $1.003B vs est $997.3Mm; guides Q4 revs $1.015-1.036B vs est $1.012B and adj EPS $0.98-1.01 vs est $0.96
• MRK Merck To Discontinue Phase 3 Keynote-867 Trial Of Keytruda Plus Stereotactic Body Radiotherapy For Patients With Stage I Or II Non-small Cell Lung Cancer And Phase 3 Keynote-630 Trial Of Keytruda As Adjuvant Treatment Of Patients With High-risk Locally Advanced Cutaneous Squamous Cell Carcinoma Following Surgery And Radiation

• NVDA says Blackwell production scheduled to begin in Q4 and continue into 2026, also says anticipation for Blackwell is incredible and Hopper demand remains strong. Board approved additional $50B in share repurchase authorization without expiration.
• CRM announced CFO transition with its earnings report last night, “Amy Weaver has made the decision to step down from her role as President and CFO at Salesforce. She will remain CFO until a successor is appointed. After that time, Amy will be an advisor to the company.”
• CRM Q2 adj EPS $2.56 vs est $2.36 on revs $9.33B vs est $9.234B; sees Q3 revs $9.31-9.36B vs est $9.413B and adj EPS $2.42-2.44 vs est $2.43; sees FY revs $37.7-38B vs est $37.841B, adj EPS $10.03-10.11 vs est $9.89 with adj op mgn 32.8%.
• CRWD Q2 adj EPS $1.04 vs est $0.97 on revs $963.872Mm vs est $958.58Mm; sees Q3 revs $979.2-984.7Mm vs est $1.012B, adj op Inc $201.2-205.2Mm vs est $224.96Mm and adj EPS $0.80-0.81 vs est $0.96.
• HPQ Q3 adj EPS $0.83 vs est $0.86 on revs $13.52B vs est $13.38B; guides Q4 adj EPS $0.89-0.99 vs est $0.95 and FY adj EPS $3.35-3.45 vs est $3.45.
• PSTG Q2 adj EPS $0.44 vs est $0.37, adj op Inc $138.6Mm vs est $123.71Mm on revs $763.8Mm vs est $755.08Mm, adj op mgn 72.8%; guides Q3 revs $815Mm vs est $810.13Mm, adj op Inc $140Mm vs est $148.63Mm and adj op mgn 17.2%; sees FY revs $3.1B vs est $3.133B, adj op Inc $532Mm vs est $540.93Mm and adj op mgn 17%.
• AFRM Q4 EPS ($0.14) vs est ($0.51) on revs $659.18Mm vs est $603.66Mm; sees Q1 gr merch vol $7.1-7.4B and revs $640-670Mm vs est $624.64Mm.
• INTC Republican Senator Rick Scott on Wednesday asked Intel CEO Pat Gelsinger for more details on the company’s plans to cut more than 15,000 jobs despite being set to receive nearly $20 billion in U.S. grants and loans to boost chip production.
• GOOGL Google weighs large data center in Vietnam, source says, in nation’s first by US big tech.