Early Look

Tuesday, February 9, 2021

Futures	Up/Down	%	Last
Dow	-57.00	0.18%	31,121
S&P 500	-6.25	0.16%	3,901
Nasdaq	-21.50	0.15%	13,662

 

 

Major U.S. averages are looking slightly lower, as the S&P 500 and Dow come into the day riding 6-day win streaks after closing the day prior at all-time highs, with some profit taking expected at some point. Stocks keep pushing higher, setting record highs on a daily basis, with the S&P 500, Dow, Nasdaq Comp and Russell 2000 all rising as investors wager that an expected new round of stimulus spending would bolster the economy. The reflation trade paced the advance as the SmallCap Russell 2000 outperformed, rising by more than 2% amid gains in Energy, Financials and Materials. The recent volatility sparked by swings in GameStop and other high short interest individual stocks have been put in the rearview mirror for now, but focus did turn back to Bitcoin on Monday, with prices topping 44K for the first time (jumped further overnight above $48K) after Tesla said it had invested $1.5 billion in the digital currency. The combination of strong quarterly earnings reports from some of the biggest U.S. companies and the possibility of more relief for the economy has boosted stocks, along with an accommodative Fed keeping rates at historic lows. Of the 295 S&P companies that had reported by early Monday, 81% had beaten analysts’ expectations for earnings growth. Oil markets continued to rally, pushing Brent crude futures above $60 a barrel for the first time since January 2020, before the pandemic. The global energy benchmark rose 2.1% to settle at $60.56 a barrel. In Asian markets, The Nikkei Index rose 117 points to 29,505, the Shanghai Index jumped 71 points to move back above 3,600 and the Hang Seng Index gained 156 points to 29,476. In Europe, the German DAX is lower by about -75 points to drop back below the 14,000 level, while the FTSE 100 is down about 10 points to 6,515. The NFIB Small Business Optimism Index reported at 95.0 vs. 98.0 consensus and 95.9 in December.

 

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 28.76 points, or 0.74%, to 3,915.59

·     The Dow Jones Industrial Average rose 237.52 points, or 0.76%, to 31385.76

·     The Nasdaq Composite spiked 131.35 points, or 0.95%, to 13,987.64

·     The Russell 2000 Index surged 56.43 points, or 2.53% to 2,289.76

 

Events Calendar for Today

·     6:00 AM EST      NFIB Small Business Optimism for January

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     10:00 AM EST    JOLTs Job Openings for December

·     4:30 PM ET         API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: ARCH, ARMK, ATUS, AVNT, AVYA, CARR, CNC, COTY, CRSR, DD, EPC, FIS, FLOW, FOXA, GRA, GT, HBI, IIVI, INCY, IT, J, JLL, LCII, MAS, MBUU, MLM, NTZ, PAG, PAGP, RICK, SEE, SPGI, SRDX, TDG, VSH, WCC

·     Earnings After the Close: AAT, ACLS, AIZ, ATEN, AYX, BKH, CCK, CDAY, CNO, CPSI, CSCO, DCPH, DEI, EGP, EQIX, FISV, FMC, G, GLUU, HIW, LYFT, MAT, MESA, MODN, MTW, NCR, OI, PAA, PACB, PPC, PRI, REYN, RPD, RRR, SAVE, THC, TRMB, TWO, TWTR, UBER, UDR, USNA, VOYA, WELL, YELP

 

Other Key Events:

·     Cowen Aerospace, Defense & Industrial Conference (virtual), 2/9-2/11

·     Stifel Transportation & Logistics Conference (virtual), 2/9-2/10

·     Annual WORLDSymposium (Lysosomal Diseases), 2/8-2/12

·     China PPI and CPI data for January

 

 

Macro	Up/Down	Last
Nymex	-0.23	57.74
Brent	-0.08	60.48
Gold	11.40	1,842.20
EUR/USD	0.005	1.2100
JPY/USD	-0.54	104.69
10-Year Note	-0.023	1.15%

 

 

Sector News Breakdown

Consumer

·     Beacon Roofing (BECN) 1Q EPS $0.59 vs. est. $0.60 on net sales $1.58B vs. est. $1.7B; ups FY21 sales growth view to high single digits vs. prior view of low-single digits; backs FY21 adjusted EBITDA view of $500M-$525M

·     Chegg inc. (CHGG) Q4 adj EPS 55c vs. est. 49c; Q4 revs $206M vs. est. $189.6M; sees q1 revenue $182M-$185M vs. est. $174.8M; sees year revs $780M-$790M vs. est. $780.5M; Q1 Gross Margin between 65% and 66% and adjusted EBITDA in the range of $48M-$50M

·     Honda (HMC) net profit for the quarter rose to 284.05 billion yen ($2.70 billion) from Y116.43 billion net profit a year earlier topping a forecast of Y158.53 billion and trimmed its revenue projection for the fiscal year ending March 31 but raised its net-profit forecast

·     Nissan (NSANY) posted Q3 net loss of Y37.76 billion, wider than its Y26.09 billion loss a year earlier but smaller than the Y79.30 billion loss expected; cut its revenue projection for the fiscal year ending in March citing the impact of the pandemic and a shortage of semiconductors but a smaller net loss, in part due to cost reductions.

·     Jack Henry (JKHY) Q2 GAAP EPS 94c vs. est. 87c; Q2 revenue $422.4M vs. est. $432.71M; guides FY21 GAAP EPS $3.85-$3.90 vs. est. $3.80 and sees FY21 revenue $1.76B-$1.77B vs. est. $1.77

·     Leggett & Platt (LEG) Q4 EPS 76c vs. est. 70c; Q4 revenue $1.18B vs. est. $1.15B; CEO said delivered a strong Q4 to end a very challenging 2020. Q4 sales, EBIT, EBIT margin, and EPS increased vs. 4Q19; sees 2021 EPS $2.30-$2.60 vs. est. $2.61; sees 2021 revenue $4.6B-$4.9B vs. est. $4.67B

·     Wynn Resorts (WYNN) 6.5M share Secondary priced at $115.00

 

Energy, Industrials and Materials

·      Aecom (ACM) Q1 EPS 62c vs. est. 57c; Q1 revenue $3.31B vs. est. $3.21B; raises FY21 EPS view to $2.60-$2.80 from $2.55-$2.75 (est. $2.67) while reaffirms FY21 adjusted EBITDA view of $790M-$830M and free cash flow view of $425M-$625M

·     Boeing’s (BA) board failed to challenge then-CEO Dennis Muilenburg on the safety of the 737 MAX or his campaign to counter negative news reports between two fatal crashes, WSJ reported

·     Cleveland-Cliffs (CLF) 60M share Spot Secondary priced at $16.29

·     DuPont (DD) Q4 adj EPS 95c vs. est. 89c; Q4 revenue $5.25B vs. est. $5.23B; sees Q1 adjusted EPS 75c-77c vs. est. 64c; sees Q1 revenue $3.75B-$3.85B above consensus $3.69B; sees Q1 operating EBITDA between $950 and $970 million, an increase of 6 percent at the mid-point versus 1Q 2020 operating EBITDA of $907 million

·     Liberty Oilfield Services (LBRT) 8.7M share Spot Secondary priced at $11.45

·     Esco Technologies (ESE) Q1 adj EPS 55c vs. est. 45c; Q1 revenue $162.95M vs. est. $164.95M; current business outlook for 2021 is consistent with commentary included in company’s previous earnings release

·     Intrepid Potash inc. (IPI) said effective February 8, 2021, increased its agricultural pricing for potash by $50 per ton at all locations and on all new orders – (watch shares of MOS, NTR)

·     Ideal Power (IPWR) 1.18M share Spot Secondary priced at $17.00

 

Financials

·     Cohen & Steers, Inc. (CNS) preliminary assets under management of $81.2 billion as of January 31, 2021, an increase of $1.3 billion from assets under management at December 31, 2020. The increase was due to net inflows of $2.1 billion, partially offset by market depreciation of $586 million and distributions of $207 million.

·     Everest Re (RE) Q4 EPS loss ($1.12) vs. est. ($1.16); Q4 revenue $2.76B vs. est. $2.32B; Q4 Gross written premium growth of 13%; attritional combined ratio of 86.3%, a 4 point improvement year over year; pre-tax net catastrophe losses of $70 million

·     Reinsurance Group (RGA) Q4 adj EPS $1.19 vs. est. $1.06; Q4 revenue $4.14B vs. est. $3.77B; global estimated covid-19 claim costs of approximately $300 mln for q4; q4 and full-year results were negatively impacted by a significant level of covid-19 mortality claim costs

·     Simon Property Group (SPG) 4Q FFO $2.17 vs. est. $2.22, says US malls and premium outlets occupancy was 91.3% at yr-end; guides FY21 FFO/shr $9.50-9.75 vs. est. $9.55, sees FY21 net income/shr $4.60-4.85, says expects growth in earnings and cash flow in 2021, says as of Feb. 5, has collected from its US retail portfolio, 90% of net billed rents for second, third, fourth qtrs combined

 

Healthcare

·     Centene (CNC) Q4 adj EPS 46c vs. est. 47c; Q4 revenue $28.29B vs. est. $28.36B; 2020 managed care membership of 25.5M, an increase of 10.3M members, or 67%, over December 31, 2019; Raises FY21 revenue view to $116.1B-$118.1B from $114.1B-$116.1B and backs its eps forecast

·     Ekso Bionics (EKSO) 3.902M share Spot Secondary priced at $10.25

·     Option Care Health (OPCH) 15M share Spot Secondary priced at $18.50

·     Zomedica (ZOM) 91.3M share Spot Secondary priced at $1.90

·     Corcept Therapeutics (CORT) 4Q prelim EPS $0.20 vs. est. $0.17 on prelim revs $85.7Mm vs. est. $90.4Mm, sees FY21 revs $375-405Mm vs. est. $403.2Mm

·     Luminex Corp. (LMNX) Q4 EPS 32c vs. est. 13c; Q4 revenue $111.4M vs. est. $104.57M; reaffirms its 2021 revenue expectations of approximately $480M (est. $474.3M)

·     Navidea (NAVB) files $100M mixed securities shelf

·     Oak Street Health (OSH) files to sell 9M shares of common stock for holders

·     SelectQuote (SLQT) 2Q EPS $0.55 vs. est. $0.44 on revs $358.3Mm vs. est. $316.5Mm; guides FY21 revs $920-940Mm above prior $840m-$880M and vs. est. $866.7Mm, sees FY21 net inc $138-146Mm vs. est. $139Mm

·     I-MAB (IMAB) 3.284M share Secondary priced at $54.00

·     Sientra (SIEN) 5.4M share Spot Secondary priced at $6.75

 

Technology, Media & Telecom

·     Amkor Technologies (AMKR) 4Q $0.52 vs. est. $0.37 on sales $1.37B vs. est. $1.3B; guides 1Q sales $1.27-1.37B vs. est. $1.2B, sees 1Q EPS $0.29-0.48 vs. est. $0.22; guides FY21 CAPEX about $700Mm

·     Blackbaud Inc. (BLKB) Q4 non-GAAP EPS 85c vs. est. 71c; Q4 revenue $242.6M vs. est. $228.4M; Non-GAAP organic recurring revenue increased 4.3%; Non-GAAP free cash flow was $24.8 million, a decrease of $21.3 million

·     CDK Global (CDK) 2Q adj EPS $0.59 vs. est. $0.65 on revs $406.3Mm vs. est. $418.8Mm; sees FY21 adj EPS $2.45-2.75 vs. est. $2.66, sees FY21 revs $1.66-1.71B vs. est. $1.68B;

·     Electronic Arts (EA) to acquire Glu Mobile (GLUU) for $2.1B, creating a new global leader in the largest and fastest growing gaming segment; Glu stockholders will receive $12.50 in cash for each share of Glu stock, representing a 36% premium https://on.mktw.net/3rDk78e

·     I3 Verticals (IIIV) Q1 adj EPS 22c vs. est. 21c; Q1 revenue $43.3M vs. est. $41.13M; sees FY21 adj EPS 93c-$1.06 vs. est. 99c; sees FY21 revenue $198M-$214M above consensus $177.1M

·     LiveRamp (RAMP) 3Q adj EPS $$0.14 vs. est. $0.07 on revs $120Mm vs. est. $113.1Mm; sees 4Q revs about $116Mm vs. est. $113.2Mm, sees 4Q operating loss about $31Mm

·     Monolithic Power Systems Inc. (MPWR) will replace TechnipFMC plc (FTI) in the S&P 500, S&P SmallCap 600 constituent Iridium Communications Inc. (IRDM) will replace Monolithic Power Systems in the S&P MidCap 400, and Collegium Pharma (COLL) will replace Iridium Comm in the S&P SmallCap 600 effective prior to the opening of trading on Friday, February 12.

·     Nuance Comm (NUAN) 1Q adj EPS $0.20 vs. est. $0.18 on revs $345.8Mm vs. est. $337.9Mm, announces acquisition of Saykara; sees Q2 EPS 14c-18c vs. est. 18c; sees Q2 revenue $332M-$350M vs. est. $333.29M; raises FY21 revenue view to $1.34B-$1.38B from $1.33B-$1.37B

·     Take-Two Software (TTWO) Q3 GAAP EPS $1.57 vs. est. 96c; Q3 net bookings $814.3M vs. est. $746.96M (but vs. $888.2M YoY); sees FY21 EPS $4.08-$4.18 vs. est. $5.72 and raises FY21 net bookings view to $3.37B-$3.42B from $3.15B-$3.25B, consensus $3.3B; Digitally-delivered Net Bookings were $664.4 million, as compared to $690.6 million in last year’s fiscal third quarter

·     Varonis Systems (VRNS) Q4 revs $95.2M vs. est. $84.4M; sees Q1 EPS loss (41c)-(39c) vs. est. loss (32c); sees Q1 revenue $68M-$69.5M below consensus $84.36M but guides year revs $357M-$366M above est. $338.4M; approves 3-1 stock split in form of stock dividend