Early Look

Tuesday, May 21, 2024

S&P futures (Spuz) flat at 5,332 after staying in a very narrow trading range all night long, with high of 5,335.50 and low of 5,329 as investors awaited minutes of the Federal Reserve’s latest policy meeting to gauge the timing and extent of possible interest rate cuts this year. No major U.S. economic data for a second day, but another long list of Fed speakers on the calendar today. In earnings, shares of security tech company PANW falls -7% overnight on guidance, while home improvement retailer LOW reports a beat and affirms guidance, lifting shares over 4% this morning. All eyes remain on Wednesday when the face of “AI” reports earnings with chip giant NVDA. In Asian markets, The Nikkei Index dropped -122 points to 38,946, the Shanghai Index dropped -13 points to 3,157, and the Hang Seng Index declined -415 points to 19,220. In Europe, the German DAX is down -79 points to 18,689, while the FTSE 100 is down -34 points to 8,389. Gold prices -0.7% at $2,420 an ounce, pulling back after hitting record highs on Monday and oil prices slip, with WTI crude -1.34% at $78.75 per barrel (at overnight lows) as commodity prices pull back. Bitcoin no slow up after jumping on Monday, adding to gains +2.25% above $71.000. In Fed news, the WSJ’s Timiraos said: Fed staff expect core PCE rose 2.75% in April from a year earlier. ‘Fed staff expect core PCE rose 2.75% in April from a year earlier; Most analysts likewise have core PCE rising by 0.24% in April; That would put the 6-month annualized rate of core PCE inflation at 3.2%.

• The Dow Jones Industrial Average fell -196.82 points, or 0.49%, to 39,806.77.
• The Nasdaq Composite gained 108.91 points, or 0.65%, to 16,794.87.
• The Russell 2000 Index advanced 6.78 points, or 0.32% to 2,102.50.

• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 9:00 AM ET                  Fed’s Barkin Gives Welcome Remarks
• 9:00 AM ET                  Fed’s Waller Discusses US Economy
• 9:05 AM ET                  Fed’s Williams Gives Opening Remarks
• 9:10 AM ET                  Fed’s Bostic Offers Brief Welcome Remarks
• 4:30 PM ET                   API Weekly Inventory Data
• 7:00 PM ET                   Fed’s Bostic Moderates Panel with Collins and Mester

• Earnings After the Close: EDUC MOD SKY TOL URBN VSAT

• JP Morgan 52nd Annual Global technology, Media, and Comm Conference, 5/19-5/22, in Boston, MA
• Oppenheimer Biotech Bus Tour, 5/21, in Boston, MA
• TD Cowen 2nd Annual Sustainability Week, 5/21-5/23 (virtual)

• Peloton Interactive (PTON) announced that it intends to launch a global refinancing, pursuant to which it will offer $275.0M aggregate principal amount of convertible senior notes due 2029 in a private offering and enter a $1.0B five-year term loan facility and a $100.0M five-year revolving credit facility.
• Xpeng (XPEV) Q1 revs rose 62% to CNY6.55 billion, beating an estimate of CNY6.22 billion; reported a narrower net loss in the first quarter of 1.37 billion yuan ($189.4 million), compared with a net loss of CNY2.34 billion a year earlier; forecast its quarterly vehicle deliveries in the range of 29,000 to 32,000, a rise of 25% to 37.9% YoY.

• Consol Energy (CEIX) coal shipments resume from its marine terminal in Baltimore.
• Nordson Corp. (NDSN) Q2 adj EPS $2.34 vs est. $2.31 on revs $650.642Mm vs est. $661.41Mm, gr mgn 56.2%; guides Q3 sales $645-670Mm vs est. $705.07Mm and adj EPS $2.25-2.40 vs est. $2.72; sees FY revs $+0-2% vs est. +5.36% and adj EPS $9.35-9.75 vs est. $10.23.
• SunPower (SPWR) received a notice from The Nasdaq Stock Market LLC indicating they are not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the SEC, because of not having timely filed its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024.
• TotalEnergies SE (TTE) and its partners approved a $6 billion deep-water oil project about 100 kilometers (62 miles) off the coast of Angola, reaffirming the French energy giant’s commitment to the African nation.

• Biora Therapeutics (BIOR) files $200M mixed securities shelf.
• Dyne Therapeutics (DYN) announces a $300M public offering of stock.
• Larimar Therapeutics (LRMR) announces FDA has removed partial clinical hold for Nomlabofusp program in Friedreich’s Ataxia following review of Phase 2 dose exploration study data.

• Palo Alto Networks (PANW) Q3 adj EPS $1.32 vs. est. $1.25 as revs rose 15% y/y to $1.98B vs. est. $1.97B; Q3 product revenue $391.0M, rose +0.7% y/y and sub revs +20% y/y to $1.59B; guides Q4 EPS/revs mid-point in-line to slightly below ests while guides FY billings $10.13B-$10.18B from $10.10B-$10.20B (est. $10.19B) and guides FY revenue $7.99B- $8.01B, from prior $7.95B-$8.00B (est. $7.98B).
• Zoom Video (ZM) Q1 adj EPS $1.35 vs est. $1.20 on revs $1.141B vs est. $1.126B, adj op mgn 40%; guides Q2 revs $1.145-1.15B vs est. $1.151B, adj op Inc $415-420Mm vs est. $435.13Mm and adj EPS $1.20-1.21 vs est. $1.23; sees FY revs $4.61-4.62B vs est. $4.613B, adj op Inc $1.74-1.75B vs est. $1.735B and adj EPS $4.99-5.02 vs est. $4.92.
• ASML (ASML) and Taiwan Semi (TSM) have ways to disable the world’s most sophisticated chipmaking machines if China invades Taiwan, Bloomberg reported; the Firms can remotely shut off advanced EUV chip-making machines; US officials concerned over risk of conflict to chip industry.
• Scale AI said on Tuesday it had raised $1 billion in a late-stage funding round led by venture capital firm Accel with participation from tech giants Nvidia (NVDA), Amazon (AMZN), and Meta (META), valuing the AI data startup at nearly $14 billion – Reuters.