Early Look

Wednesday, September 8, 2021

Futures	Up/Down	%	Last
Dow	-36.00	0.10%	35,055
S&P 500	-3.25	0.08%	4,515
Nasdaq	-13.50	0.09%	15,661

 

 

U.S. stocks are pointing to a slightly lower open just a day after finishing mixed as the Nasdaq Composite registered a record closing high for fourth consecutive session with Apple (AAPL) and Netflix (NFLX) touching all-time highs. This morning, the dollar is indicated higher while Treasury yields slip ahead of a $38 billion 10-year auction of new notes later this morning. Bitcoin prices extended declines Wednesday, following on from the cryptocurrency’s worst day in three months, as markets continue to digest the impact of El Salvador’s move to declare it as legal tender. In Asian markets, The Nikkei Index rose 265 points to 30,181, the Shanghai Index was little changed at 3,675 and the Hang Seng Index dipped -32 points to 26,320. In Europe, the German DAX is down over -135 points to hold just above 15,700, while the FTSE 100 is down about -40 points to 7,110. There were a handful of M&A deals announced overnight in various sectors in what is expected to be another light day of news on this holiday shortened week. The Delta variant, the China economy, slowing U.S. growth and jobs, travel impacts and the Fed remain prevalent themes heading into the Fall.

Market Closing Prices Yesterday

·     The S&P 500 Index dropped -15.40 points, or 0.34%, to 4,520.03

·     The Dow Jones Industrial Average fell -269.09 points, or 0.76%, to 35,100.00

·     The Nasdaq Composite edged higher 10.81 points, or 0.07%, to 15,374.33

·     The Russell 2000 Index declined -16.44 points, or 0.72% to 2,275.61

 

Events Calendar for Today

·     7:00 AM ET         MBA Mortgage Applications Data

·     4:30 PM ET         API Weekly Inventory Data

·     10:00 AM ET      JOLTS Job Openings for July

·     3:00 PM ET         Consumer Credit for July

 

Earnings Calendar:

·     Earnings Before the Open: KFY, REVG

·     Earnings After the Close: ABM, AVAV, BASE, CDMO, CPRT, CVGW, GME, HQY, INTA, MIND, RH, S, STRM

 

Other Key Events:

·     Barclay’s Global Consumer Staples Conference (virtual) 2021, 9/8-9/10

·     Barclay’s CEO Energy-Power Conference 2021 (virtual), 9/8-9/10

·     BTIG Cloud Communications and Collaboration Investor Forum (virtual), 9/8

·     Citigroup Annual BioPharma Conference (virtual), 9/8-9/10

·     Citigroup GEMS Conference 2021 (virtual), 9/8-9/10

·     Cowen 14th Annual Global Transportation & Sustainable Mobility Conference, 9/8-9/10

·     Credit Suisse 2021 Global Steel & Mining Conference (virtual), 9/8-9/10

·     Stephens Building Materials Investor Trip, 9/8-9/9

·     Wolfe Inaugural TMT Conference, 9/8-9/9

·     China CPI, PPI for August

 

 

Macro	Up/Down	Last
Nymex	0.98	69.34
Brent	0.87	72.56
Gold	3.60	1,798.00
EUR/USD	-0.0021	1.1819
JPY/USD	-0.07	110.21
10-Year Note	-0.02	1.351%

 

 

World News

·     Japan Q2 GDP beat at +0.5% q/q vs 0.4% consensus; Japan Q2 GDP Annualized beat: 1.9% q/q vs 1.6% consensus and Japan July Current Account smaller surplus: JPY +1.91b vs JPY +2.30b cons

 

Sector News Breakdown

Consumer

·     Coty (COTY) 50M share secondary Block Trade priced at $8.53

·     Nio (NIO) announces at-the-market offering of $2B of American depositary shares

·     Casey’s General Stores (CASY) Q1 EPS $3.19 vs. est. $2.96; Q1 revs $3.18B vs. est. $3.02B; said Q1 fuel gallons sold increased by 24.7% compared to FQ4 2021 ended April 30, 2021, while fuel margin increased 2.1¢ sequentially to 35.1¢ per gallon. That number is still below last year’s comparable quarter mark of 38.2¢ per gallon.

 

Energy, Industrials and Materials

·     Cheniere Energy (LNG) declares an inaugural quarterly dividend of $0.33 per share, or $1.32 per share annualized; plans for about $1 bln of annual debt repayment, targeting investment grade consolidated credit metrics by the early-to-mid 2020s

·     Chevron (CVX), Delta (DAL), and Google (GOOGL) announced a memorandum of understanding to track sustainable aviation fuel test batch emissions data using cloud-based technology.

·     Murphy Oil (MUR) sees capital expenditure $685M-$715M, vs. est. $722.1M

 

Financials

·     Vertiv Holdings LLC (VRT) to buy E&I Engineering Ireland Ltd., and its affiliate Powerbar Gulf LLC, in a deal valued at up to $2 billion. Separately, Vertiv cut its financial outlook, as worse-than-expected supply chain challenges are offsetting continued “robust” demand. https://on.mktw.net/38RtNEQ

·     Coinbase Global Inc. (COIN) said the SEC intends to sue it in court if it launches a planned program letting users earn interest on lending cryptocurrency; COIN said the SEC handed it a Wells notice in relation to its Coinbase Lend program, signaling its intention to sue the company in court. As a result, Coinbase said it won’t launch Lend until at least October.

·     PayPal Holdings Inc. (PYPL) agreed to buy Japanese “buy now, pay later” startup Paidy Inc. for about $2.7 billion, in a move that will boost its business in the world’s third-largest e-commerce market. https://on.mktw.net/3ncZkd1

·     MeridianLink Inc. (MLNK) Q2 revs rose 38% to $68.5M vs. est. $67.4M; sees Q3 revs $62.9M-$63.5M vs. est. $62.2M; sees year revs $256.7M-$257.9M vs. est. $255.4M; sees FY adj Ebitda $112.3M-$113.5M

·     Apollo Global (APO) announced that clients managed by its affiliates have entered into a definitive agreement to acquire up to a 50% equity stake in MaxCap Group, a Australasian commercial real estate financier and fund manager

 

Healthcare

·     Sanofi SA (SNY) entered into a definitive agreement to acquire U.S.-based biopharmaceutical company Kadmon Holdings Inc. (KDMN) as Kadmon common stock will receive $9.50 a share in cash, representing a total equity value of about $1.9 billion on a fully diluted basis. https://on.mktw.net/3haEIOs 

·     Option Care Health (OPCH) 9.2M share Spot Secondary priced at $26.90

·     ICU Medical, Inc. (ICUI) to acquire Smiths Medical division from Smiths Group plc for $2.35 billion in cash and stock plus the assumption of certain liabilities and a stock price performance-based earn-out

·     India Globalization Capital (IGC) announces the completion of its Phase 1 clinical trial on IGC’s cannabis-based investigational new drug, IGC-AD1, for patients suffering from Alzheimer’s disease

·     Impel NeuroPharma (IMPL) files to sell 3M shares of common stock

·     Maravai (MRVI) announces offering of 20M shares of Class A common stock for holders

·     Ortho Clinical Diagnostics (OCDX) files to sell 22M shares for holders

 

Technology, Media & Telecom

·     Elliott Management Corp. has a more than $1 billion stake in Citrix Systems Inc. (CTXS) and wants the software company to take action to boost its lagging stock price, according to people familiar with the matter – WSJ https://on.wsj.com/3yOaCGN

·     Analog Devices (ADI) raises Q4 adjusted EPS view to $1.69 plus/minus 9c from $1.33 plus/minus 11c (est. $1.65) and raises Q4 revenue view to $2.3B plus/minus $70M from $1.78B plus/minus $70M (vs. est. $2.26B); to repurchase up to $2.5B of common stock

·     Bumble (BMBL) files to sell 15M shares of Class A common stock for holders

·     Coupa Software (COUP) 2Q adj EPS $0.26 vs est. ($0.06) on revs $179Mm vs est. $163Mm; guides 3Q adj EPS $0.01-0.03 vs est. ($0.08), sees 3Q revs $177-178Mm vs est. $168.8Mm; guides FY adj EPS $0.27-0.29 vs est. ($0.15), sees FY revs $706-708Mm vs est. $687.2Mm

·     Smartsheet (SMAR) 2Q adj EPS ($0.05) vs est. ($0.13) on sales $131.7Mm vs est. $125.5Mm; guides 3Q adj EPS loss $0.10-0.12 vs est. loss $0.11, sees 3Q revs $138-139Mm vs est. $129.9Mm; guides FY adj EPS loss $0.36-0.44 vs est. EPS loss $0.39, sees FY revs $530-533Mm vs est. $514.1Mm

·     UiPath (PATH) raises FY22 ARR view to $876M-$881M from $850M-$855M; 2Q ARR $726.5Mm +60%, revs $195.5Mm vs est. $184.3Mm, adj gr margin 86%, adj FCF ($3.5Mm); guides 3Q revs $207-209Mm