$CSL

UK Market Finished in the red yesterday, as reports of the first death in Britain due to theOmicron coronavirus variant raised worries about its impact on economic recovery. Capita plunged 18.7%, after the company announced that revenue at its Capita Experience division declined in the first 11 months of the year. HomeServe eased 4.0%, after the home repairs and improvement business sold its policies shared with Piedmont Natural Gas Company to the same affinity partner for around $22.0 million. Oxford Biomedica dropped 3.7%. The company announced that it has agreed to extend an agreement with Novartis to manufacture lentiviral vectors for several of the drugmaker’s CAR-T therapies. Meanwhile, AstraZeneca rose 0.7%. A study revealed that neutralizing antibody levels induced by two doses of the AstraZeneca vaccine dropped in the presence of an omicron infection to below the detection threshold. The FTSE 100 declined 0.8%, to close at 7,231.4, while the FTSE 250 fell 1.2%, to end at 22,647.2. European Market Finished lower yesterday, amid worries about the spread of Omicron variant of the coronavirus. Air France-KLM fell 3.4%. The airline operator announced that it has redeemed €500 million of a €4 billion French-state backed loan issued to help the carrier cope with the pandemic. Alfa Laval shed 0.3%. The company announced that it has inked a global collaboration agreement with Microsoft to develop a suite of innovative digital tools for facilitating service and maintenance of Alfa Laval plate heat exchangers. On the contrary, Vifor Pharma climbed 18.5%, after Australian biopharma giant, CSL confirmed that it was in talks to acquire the drug maker. The FTSEurofirst 300 index slipped 0.4%, to settle at 1,837.2. Among other European markets, the German DAX Xetra marginally fell to settle at 15,621.7, while the French CAC-40 shed 0.7%, to close at 6,942.9. US Market Closed lower yesterday, amid worries about the Omicron coronavirus variant and ahead of the Federal Reserve meeting later this week. Arena Pharmaceuticals skyrocketed 80.4%, after the drugmaker agreed to be bought by Pfizer for a consideration of around $6.7 billion. Harley-Davidson advanced 4.7%, following news that the motorcycle maker is merging its “Livewire” electric motorcycle unit with a special purpose acquisition company to go public. Pfizer added 4.6%, after a new Israeli study showed that its Covid booster shot provides strong protection against severe illness from the new omicron variant. Rivian Automotive rose 3.7%, amid news that its R1T had been named Motor Trend’s truck of the year. On the flipside, Dollar Tree slid 0.5%, as activist investor, Mantle Ridge, seeks to replace the entire Dollar Tree board. The S&P 500 slipped 0.9%, to settle at 4,669.0. The DJIA fell 0.9%, to settle at 35,651.0, while the NASDAQ shed 1.4%, to close at 15,413.3. Asian Market We’re trading lower this morning, tracking overnight losses on Wall Street. In Japan, Isetan Mitsukoshi Holdings and ANA Holdings have dropped 2.5% and 2.6%, respectively. Meanwhile, Shionogi and Ajinomoto have added 1.2% and 1.5%, respectively. In Hong Kong, Haidilao International Holding and China Overseas Land & Investment have fallen 3.3% and 3.5%, respectively. Meanwhile, CLP Holdings and Budweiser Brewing have risen 0.4% and 0.7%, respectively. In South Korea, LG Chem and Dentium have declined 5.3% and 5.7%, respectively. Meanwhile, Hanwha Investments & Securities and SungShin Cement have climbed 5.8% and 7.2%, respectively. The Nikkei 225 index is trading 0.9% lower at 28,385.7. The Hang Seng index is trading 1.3% down at 23,653.2, while the Kospi index is trading 0.7% lower at 2,979.9

UK Market Friday markets finished in the red, led by losses in mining and energy sector stocks. Petropavlovsk climbed 1.5%, after Britain’s High Court rejected a bid by its major shareholder, JSC Uzhuralzoloto Group of Companies to stop the sale of a stake in iron ore subsidiary, IRC. Rotork edged up 1.4%, after a top broker upgraded its rating on the stock ‘Overweight’ from ‘Neutral’. BP advanced 1.3%, following a rating upgrade on the stock to ‘Buy’ from ‘Hold’. 3i Group added 0.6%, following reports that the company is considering the sale of Havea Group that could be valued at about €1.1 billion. Hargreaves Lansdown rose 0.3%, after the company announced that it would appoint Amy Stirling as its Chief Financial Officer to succeed Philip Johnson. The FTSE 100 shed 0.1%, to close at 7,122.3, while the FTSE 250 slid 0.2%, to end at 22,646.1. European Market Also finished lower on Friday, amid fears about the impact of the Omicron coronavirus variant on the global economy. Aurubis climbed 7.5%, after the copper producer reported a jump in its annual operating earnings. Deutsche Lufthansa added 1.1%, despite fresh restrictions in parts of Europe to prevent the spread of the new Covid-19 variant. Allianz rose 0.6%, after the company raised its financial targets for the next three years and announced a new dividend policy. On the flipside, Vifor Pharma dropped 4.6%, following reports that CSL Ltd is in exclusive talks to acquire the pharmaceutical company in a A$10 billion deal. Nordex fell 2.4%. The company received a deal to supply 67 turbines for the 300MW El Sauz onshore wind farm in the US state of Texas. The FTSEurofirst 300 index declined 0.6%, to close at 1,793.3. Among other European markets, the German DAX Xetra 30 slid 0.6%, to close at 15,170.0, while the French CAC-40 shed 0.4%, to settle at 6,765.5. US Market Followed European markets closing lower on Friday, following weaker-than-expected US jobs data. DocuSign sank 42.2%, after the company issued dismal sales forecast for the fourth quarter. Asana plunged 26.4%, even though the company narrowed its losses in the third quarter. Tesla declined 6.4%, following news that the company’s Chief Executive Officer, Elon Musk, sold additional shares worth $1.0 billion. Nvidia dropped 4.5%, amid uncertainty over the company’s planned acquisition of chip designer, Arm, for $40.0 billion. Meanwhile, Zillow Group climbed 11.3%, after the company announced plans to sell about half of the dwellings it purchased for its home-flipping business. Big Lots advanced 5.3%, as the company reported lower than expected losses in the third quarter. The S&P 500 slid 0.8% to settle at 4,538.4. The DJIA shed 0.2% to settle at 34,580.1, while the NASDAQ fell 1.9%, to close at 15,085.5. Asian Market Markets in Asia are trading mostly lower this morning, amid concerns over rising Omicron cases across various countries. In Japan, Daiichi Sankyo and SoftBank Group have declined 6.6% and 8.2%, respectively. Meanwhile, Denka and Kawasaki Kisen Kaisha have risen 4.2% and 6.4%, respectively. In Hong Kong, CSPC Pharmaceutical Group and Wuxi Biologics (Cayman) have dropped 3.8% and 8.6%, respectively. On the other hand, Hong Kong Exchanges & Clearing and Country Garden Holdings have climbed 3.0% and 3.3%, respectively. In South Korea, Jico and CONBUZZ advanced 29.7% and 30.0%, respectively. Meanwhile, Century and SsangYong Motor have fallen 14.0% and 19.2%, respectively. The Nikkei 225 index is trading 0.5% lower at 27,876.2. The Hang Seng index is trading 1.3% down at 23,466.4, while the Kospi index is trading 0.1% higher at 2,971.2

UK Market Closed in the red yesterday, amid ongoing concerns about the new Omicron Covid variant. AJ Bell declined 8.6%, even though the company raised its dividend payout and announced a special payout to shareholders, after reporting an increase in its annual profits. Aston Martin Lagonda Global Holdings dropped 8.1%, after announcing that Kenneth Gregor would step down as its Chief Financial Officer and as an Executive Director by 30 June 2022. Abrdn eased 3.8%, after the company confirmed that it agreed to acquire Interactive Investor for a cash consideration of £1.49 billion. Meanwhile, Royal Dutch Shell added 1.6%, after the oil & gas company announced that it has started share buybacks of up to $1.5 billion. Wizz Air Holdings rose 0.9%, after the airline operator reported a rise in its passengers in November. The FTSE 100 declined 0.6%, to close at 7,129.2, while the FTSE 250 fell 1%, to end at 22,684.8. Europe Market Finishing lower yesterday, amid fears about the Omicron coronavirus variant and the possibility of lockdown measures. Hermes International dropped 3.1%, despite the goods company’s inclusion in the Euro STOXX 50 index. Safran fell 1.0%. The company announced that it expects organic revenue growth over 2021-2025 to reach 10% CAGR. ThyssenKrupp slid 0.5%, after the industrial engineering and steel production company announced that it expects a turnaround to profit during the current fiscal, despite ongoing Covid related crisis. Sandvik shed 0.4%. The engineering company announced that it has inked a deal to acquire Deswik for an undisclosed sum. On the contrary, Vifor Pharma skyrocketed 21.0%, following reports that Australian biotech company, CSL, is in discussions to acquire the group for around $10 billion. The FTSEurofirst 300 index slipped 1.2%, to settle at 1,803.2. The German DAX Xetra fell 1.4%, to settle at 15,263.1, while the French CAC-40 shed 1.3%, to close at 6,795.8. US Market Ended higher yesterday, on hopes that the new Covid-19 variant, Omicron, would prove mild and would not affect strongly recovering US economy. Boeing climbed 7.5%, following news that China’s aviation regulator cleared the company’s 737 Max to fly again. Five Below advanced 5.0%, after the company reported better than expected revenue and earnings in the third quarter. On the flipside, Signet Jewelers eased 5.1%, even though the company reported a rise in its third quarter earnings. Dollar General dropped 3.1%, after the company announced plans to open 1,000 Popshelf stores by the end of fiscal year 2025. Apple fell 0.6%, amid news that the technology giant warned some suppliers over a slowdown in demand for iPhone 13 series. The S&P 500 gained 1.4%, to settle at 4,577.1. The DJIA rose 1.8%, to settle at 34,639.8, while the NASDAQ added 0.8%, to close at 15,381.3. Asia Market We’re trading mostly higher this morning. In Japan, Nissan Motor and Credit Saison have advanced 3.8% and 3.9%, respectively. Meanwhile, Fanuc and Tokyo Electric Power have fallen 0.9% and 1.0%, respectively. In Hong Kong, CLP Holdings and Geely Automobile Holdings have dropped 1.2% and 1.3%, respectively. Meanwhile, Sands China and AAC Technologies Holdings have risen 1.9% and 2.0%, respectively. In South Korea, Hankook Steel and Galaxia SM have climbed 10.4% and 11.8%, respectively. Meanwhile, Dae Young Packaging and kakaopay have declined 3.5% and 3.6%, respectively. The Nikkei 225 index is trading 0.3% higher at 27,850.5. The Hang Seng index is trading 0.7% down at 23,612.4, while the Kospi index is trading 0.8% higher at 2,969.8.

U.S. stock futures looking mixed on the final day of trading for the week, but a much better picture then what it looked like initially overnight following the first night of disappointing earnings overnight as shares of tech companies Intel (INTC) and Snap (SNAP) led the declines. Asia’s subdued risk sentiment gets a surprise boost following a report of Evergrande $83.5M interest payment on an overdue dollar bond. European stocks also rose on Friday after China Evergrande paid a bond coupon before this weekend’s deadline helping boost those markets and lift sentiment. The Nikkei Index rose nearly 100-points to 28,804, the Shanghai Index slipped -0.3% to 3,582, and the Hang Seng Index climbed 109 points to 26,126. In Europe, the German DAX is up over 100 points to 15,585, while the FTSE 100 gains 0.5% to 7,225. The Dow eased from a record high hit on Wednesday, while the Nasdaq paced market gains and the S&P 500 hit a fresh intraday record high thought breadth was somewhat mixed as six of the 11 major S&P 500 sectors finished lower, with energy stocks falling the most. While the majority of earnings thus far to start quarterly earnings (about 20% in for the S&P 500), the potential impact of supply chain disruptions and labor shortages on profits is starting to take center stage this earnings season. IBM tumbled 8.2% after it missed market estimates for quarterly revenue, while Tesla (TSLA helped lift the Nasdaq. The story of the day was Digital World Acquisition Corp (DWAC), the special purpose acquisition company (SPAC) that will merge with former President Trump’s social media company, shooting up 356% on Thursday, closing at $45.50 a share. Applications for U.S. state unemployment benefits unexpectedly declined to 290,000 last week to pre-pandemic levels, raising expectations the Fed may look to raise rates sooner in 2022 to cool inflation. The CBOE volatility index closed Thursday at 15.01, lowest close since Feb. 19, 2020. Market Closing Prices Yesterday · The S&P 500 Index gained 13.59 points, or 0.30%, to 4,549.78 · The Dow Jones Industrial Average slid -6.26 points, or 0.02%, to 35,603.08 · The Nasdaq Composite surged 94.02 points, or 0.62%, to 15,215.70 · The Russell 2000 Index advanced 6.42 points, or 0.28% to 2,296.18 Events Calendar for Today · 9:45 AM ET Markit Manufacturing PMI-Flash · 9:45 AM ET Markit Services PMI-Flash · 9:45 AM ET Markit Composite PMI-Flash · 1:00 PM EST Baker Hughes Weekly rig count data Earnings Calendar: · Earnings Before the Open: AIMC, AXP, CLFY, CLF, FHB, GNTX, HCA, HON, RF, ROP, SLB, SMPL, STX, VFC World News · The eurozone composite PMI dropped from 56.2 to 54.3 in October, posting its lowest reading in six months; Eurozone Oct Mfg PMI (flash) beat: 58.5 vs 57.0 consensus; EZ Oct Services PMI (flash) missed at 54.7 vs 55.5 consensus · UK Sep Retail Sales missed: -0.2% m/m vs 0.5% cons; -1.3% y/y vs -0.4% consensus; UK Sep Retail Sales ex-autos missed: -0.6% m/m vs 0.5% cons; -2.6% y/y vs -1.7% consensus · German Oct Manufacturing PMI (flash) beat: 58.2 vs 56.5 consensus; German Oct Services PMI (flash) missed: 52.4 vs 55.0 consensus · Bank of England chief economist Pill says that inflation could exceed 5% but likely to fall in 2H of next year, BoE would have a “live” decision on whether to raise interest rates at its November meeting. · GfK consumer confidence dropped 4 points to minus 17 in October as higher inflation and climbing Covid rates weighed on sentiment Sector News Breakdown Consumer · Chipotle Mexican Grill, Inc. ($CMG) Q3 EPS $7.02 vs. est. $6.32; Q3 revs rise 21.9% to $2.0B vs. est. $1.94B; qtrly comparable restaurant sales increased 15.1%; qtrly digital sales grew 8.6% year over year to $840.4M; Restaurant level operating margin was 23.5% 1, an increase of 400 bps · Boston Beer ($SAM) Q EPS ($4.76) vs est. $4.02 on revs $561.6Mm vs est. $531.5Mm; guides FY depletions and shipments +18-22%, sees national price increase 2-3%, gr margin 40-42%, advertising promo & selling exp increase $80-100Mm · BJ Restaurants ($BJRI) 3Q EPS ($0.09) vs est. $0.11 on revs $282.2Mm vs est. $292.8Mm, comps +41.8% (-0.5% vs 2019); saw rapid food cost inflation hit 3Q restaurant op margins; expects sales to benefit as staffing levels improve; · Mattel Inc. ($MAT) Q3 adj EPS $0.84 vs. est. $0.72; Q3 sales $1.76B vs. est. $1.68B; raises FY21 revenue growth view to up about 15% from 12%-14% and boosts FY21 adj EBITDA view to $900M-$925M from $875M-$900M; qtrly net sales in the N.A. segment increased 12% as reported and gross billings increased 12% as reported; worldwide gross billings for barbie of $555.2 mln, up 4% and for hot wheels of $329.9 mln, up 5% · PriceSmart ($PSMT) 4Q EPS $0.63 vs est. $0.74 on revs $909.6Mm vs est. $879.8Mm; comparable net merchandise sales +10.3% · Whirlpool ($WHR) 3Q adj EPS $6.68 vs est. $6.12 on net sales $5.5B vs est. $5.74B; guides FY net sales +13% vs est. +15.5%, sees FY adj EPS about $26.25 vs est. $26.35 · Robert Half ($RHI) 3Q EPS $1.53 vs est. $1.40 on revs $1.713B vs est. $1.637B; sees Q4 EPS $1.37-$1.47 vs. est. $1.30; sees Q4 revenue $1.655B-$1.735B vs. est. $1.65B · Walmart ($WMT) is offering bitcoin through 200 of its CoinStar kiosks in a tie-up with crypto atm firm CoinMe- CoinDesk reported last night Energy · DMC Global ($BOOM) shares fell -10%; 3Q EPS $0.02 vs est. $0.10 on sales $67.2Mm vs est. $71.5Mm; guides 4Q sales $46-50Mm below est. $73.6Mm · Altus Midstream Company ($ALTM) said it will combine with privately-owned BCP Raptor Holdco LP in an all-stock transaction. BCP is the parent company of EagleClaw Midstream, which includes EagleClaw Midstream Ventures, the Caprock Midstream and Pinnacle Midstream businesses, and a 26.7% interest in the Permian Highway Pipeline. · Southern Co.’s ($SO) Georgia Power adds another three months to the timetable for the Vogtle 3 and 4 nuclear expansion projects; company now projects a Unit 3 in-service date in Q3 2022 and a Unit 4 in-service date in Q2 2023 Financials · Associated Banc-Corp. ($ASB) Q3 EPS $0.56 vs est. $0.44, tangible book value per share $17.58, recovery of credit losses $24M vs est. recovery of $1.68M · Bank Ozk ($OZK) Q3 EPS $1.00 vs. est. $0.97; Q3 total interest income $262.7M versus 268.3M same quarter 2020 · Independent Bank ($INDB) Q3 EPS $1.21 vs. est. $1.02; Total assets of $14.5 billion at September 30, 2021 increased by $339.1 million, or 2.4%, from the prior quarter, and by $1.4 billion, or 10.3%, as compared to the year ago period · SVB Financial ($SIVB) Q3 EPS $6.24 vs. est. $5.04; qtrly net interest income (fully taxable equivalent basis) of $859 million · Western Alliance ($WAL) Q3 EPS $2.28 vs. est. $2.22; Q3 revs $548.5M vs. est. $535.86M; produced highest ever quarterly organic loan growth of $4.8 billion, with deposits also up $3.4 billion (32% annualized), driving a 14.3% increase in PPNR1 during the quarter to $317.1 million · WR Berkley ($WRB) 3Q EPS $1.40 vs est. $0.99 on revs $2.42B vs est. $2.3B; qtrly net premiums written +23.7% Healthcare · Accuray Inc. ($ARAY) preliminary Q1 revs $107.4M vs est. $88.5M, raised FY revenue view to $420M-$427M from $410M-$420M, above est. $415.8M · Metacrine ($MTCR) shares fall -50%; to halt future development of FXR program in NASH; reports interim results for met642 phase 2a trial in patients with NASH and announces a strategic re-prioritization of its clinical development programs; shares downgraded to Hold from Buy at Jefferies, Canaccord and HC Wainwright · Minerva Surgical ($UTRS) 6.25M share IPO priced at $12.00 · Xilio Therapeutics ($XLO) 7.35M share IPO priced at $16.00 · Iveric bio ($ISEE) 9M share Spot Secondary priced at $16.75 · Rite Aid ($RAD) has filed for a mixed securities shelf offering. Industrials & Materials · Honeywell ($HON) Q3 adj EPS $2.02 vs. est. $1.99; Q3 revs $8.47B vs. est. $8.65B; qtrly organic sales grew 8%, led by 38% growth in aerospace commercial aftermarket, 21% growth in safety and productivity solutions; 14% growth in advanced materials within performance materials and technologies; cuts FY21 revenue view to $34.2B-$34.6B from $34.6B-$35.2B (est. $35.1B) and narrows FY21 EPS view to $8.00-$8.10 from $7.95-$8.10 · Carlisle Companies ($CSL) 3Q adj EPS $2.99 vs est. $2.75 on revs $1.3B vs est. $1.27B · Celanese ($CE) Q3 adj EPS $4.82 vs. est. $4.75; Q3 revs $2.3B vs. est. $2.13B; raises full-year outlook; sees Q4 EPS about $4.00 vs. est. $3.97; reported record net sales of $2.3B for the quarter with sequential pricing and volume increases of 3% and 1%, respectively · Lynas Rare Earths ($LYSCF) said Q1 production and sales revenues fell QoQ, citing disruptions from a rise in COVID-19 cases in the area around its Malaysia processing plant; Q1 total rare earths production fell 16% Q/Q to 3,166 metric tons, Q1 revenues fell to A$121.6M from $A$185.9M · Olin Corp. ($OLN) Q3 EPS $2.38 vs. est. $2.02; Q3 revs $2.34B vs. est. $2.36B; qtrly adjusted Ebitda achieved despite production interruptions from hurricanes, raw material cost volatility, & supply-chain disruptions; for FY21, is targeting debt reduction of approximately $1.1 bln using cash generated from operations · U.S. Xpress Enterprises, Inc ($USX) 3Q adj EPS $0.07 vs est. $0.14 on revs $491.1Mm vs est. $479.6Mm · Vicor Corporation ($VICR) 3Q EPS $0.29 vs est. $0.44 on revs $84.9Mm vs est. $98.2Mm; gross margin 50.4% vs est. 52.5%; book/bill 2.0 with backlog $296Mm at qtr end Technology, Media & Telecom · Intel Corp. ($INTC) falls -7%; 3Q EPS $1.71 vs est. $1.11 on revs $19.2B vs est. $18.24B (CCG revs 9.7B -2%, DCG revs $6.5B +10%), gr margin 56% vs est. 54.9%; guides FY adj EPS $5.28 vs est. $4.79; sees 2021 cap-ex spending $18B-$19B; questions about falling gross margins dominated the c/c as the company said it expects to turn back to growth in a few years, and execs kept defending their forecast, comfortable with margins above 50% · Cambium Networks ($CMBM) lowers guidance; sees Q3 revs about $75M, down from prior view of $88-$92M which primarily reflects greater than anticipated global supply constraints impacting shipments of products which we expect to continue into the first half of calendar 2022; said Q3 net income is expected to be below the low-end of the previous GAAP and non-GAAP ranges · Snap Inc. ($SNAP) tumbles -20% overnight on lower guidance; Q3 adj EPS $0.17 vs est. $0.08 on revenue $1.07B vs est. $1.1B, DAUs 306M (+23% YoY); sees Q4 DAUs 316-318M, revenue $1.165B-$1.205B below est. $1.36B, saying it missed the lower end of guidance due to changes to advertising tracking on Apple’s iOS that did not scale as expected, making it more difficult for ad partners to measure and manage campaigns, and macroeconomic factors impacting advertising partners with global supply headwinds expected to impact ad demand Q4 in particular; (shares of FB, ROKU, ETSY, TWTR among names that fell in reaction to SNAP) · Western Digital’s ($WDC) discussions to merge with Japan’s Kioxia in a deal worth over $20B have stalled, the Wall Street Journal reported, citing people familiar with the matter. The companies were seeking to finalize a stock deal that would have established a memory-chip giant worth about $40B

Thursday, October 21, 2021 Futures Up/Down % Last Dow -101.00 0.28% 35,376 S&P 500 -10.25 0.24% 4,517 Nasdaq -22.50 0.15% 15,355 U.S. futures are down slightly overnight, as the S&P 500 index comes into the day with a 6-day win streak, as the earnings barrage continues today, with shares of TSLA and IBM slipping after quarterly results last night while media giant AT&T (T) rises early following its results. For the moment, China Evergrande debt contagion fears, inflation, Fed tapering, rising commodity prices are having no effect on global stock markets with the CBOE Volatility index (VIX) settling around its lowest levels in about 2-months. As for yesterday, the Dow Jones Industrial Average touched an all-time fresh intraday high while the S&P 500 flirted with its all-time intraday record highs (rising a 6th straight day) after strong earnings results and forecasts from healthcare companies and as banks advanced amid rising Treasury yields. The 10-Year Treasury yield spiked to 1.6730% early, a fresh five-month high sending the S&P 500 Bank Index higher for a fifth-straight day, for its fourth-straight record close. Technology underperformed as the Nasdaq Composite closed slightly lower as inflation fears crept into the market late day following comments from Federal Reserve President Quarles. In Asian markets overnight, The Nikkei Index fell -546 points (1.87%) to settle at 28,708, the Shanghai Index inched higher 7-points to 3,594 and the Hang Seng Index declined -118 points to 26,017. In Europe, the German DAX is down just a few points holding above 15,500, while the FTSE 100 slips -0.3% to just under 7,200. Market Closing Prices Yesterday The S&P 500 Index gained 16.56 points, or 0.37%, to 4,536.19 The Dow Jones Industrial Average rose 152.03 points, or 0.43%, to 35,609.34 The Nasdaq Composite dropped -7.41 points, or 0.05%, to 15,121.68 The Russell 2000 Index advanced 13.85 points, or 0.61% to 2,289.77 Events Calendar for Today 8:30 AM ET Weekly Jobless Claims…est. 300K 8:30 AM EST Continuing Claims…est. 2.55M 8:30 AM ET Philly Fed Index for October…est. 25.0 10:00 AM ET Existing Home Sales MoM for September…est. 6.09M 10:00 AM ET Leading Index MoM for September…est. +0.4% 10:30 AM ET Weekly EIA Natural Gas Inventory Data Earnings Calendar: Earnings Before the Open: AAL, ALK, ALLY, AMTB, AN, BANC, BHLB, BKU, BX, CROX, DHX, DHR, DOW, EEFT, EWBC, FAF, FCX, GATX, GPC, GTLS, HOMB, HRI, IIIN, IPG, IQV, KEY, LNN, MMC, POOL, SASR, SCHN, T, TPH, TRN, TSCO, UNP, VLO, WBS Earnings After the Close: ASB, NJRI, BOOM, CE, CMG, CSL, CSTR, FFBC, GBCI, INTC, MAT, NUE, OZK, PBCT, PINE, PSMT, SAM, SNAP, SIVB, TRST, USX, VICR, WAL, WHR, WRB, WSFS Other Key Events: The European Society of Gene and Cell Therapy (ESGCT) Congress 2021 is taking place virtually this year from October 19-22 Macro Up/Down Last Nymex -0.53 82.89 Brent -0.95 84.87 Gold 1.90 1,788.70 EUR/USD -0.0012 1.1639 JPY/USD -0.27 113.99 10-Year Note +0.013 1.645% Sector News Breakdown Consumer Tesla Inc. ($TSLA) 3Q adj EPS $1.86 vs est. $1.59 on revs $13.76B vs est. $13.63B, auto gr margin 30.5% vs 27.7% year ago, says expect op margin will continue to grow; qtly bitcoin-related impairment of $51Mm; continue to target first model Y production builds in Berlin and Austin before end of year; says challenges including semi shortages, port congestion, rolling blackouts impacting ability to keep factories running full speed; Las Vegas ($LVS) Q3 revs $857M below the $1.34B estimate; on a GAAP basis, qtrly total net revenues for SCL increased to $611 mln, compared to $167 mln in q3 of 2020; Q3 adj EPS loss (-$0.45) vs. est. loss (-$0.20) Unilever ($UL) rises on higher-than-expected Q3 sales growth; reports higher-than-expected underlying sales growth for Q3 beating analysts’ expectations; reiterates full-year profit margin forecast, defying some analysts’ fears of a cut; warns inflation is likely to accelerate next year Portillo’s ($PTLO)27M share IPO priced at $20.00 Energy Kinder Morgan ($KMI) Q3 adj EPS $0.22 vs. est. $0.24; Q3 revs $3.82B vs. est. $3.26B; backs FY21 adjusted EBITDA view $7.9B, expects to generate net income attributable to KMI of $1.7 billion and declare dividends of $1.08 per share, a 3% increase TechnipFMC ($FTI) shares fall -6%; 3Q adj EPS ($0.06) vs est. $0.02 on revs $1.58B vs est. $1.7B, qtrly total inbound orders were $1.37B, qtr-end backlog $7.0B; guides FY subsea revs $5.2-5.5B, sees FY surface tech revs $1.05-1.25B, sees FY CAPEX approx $250Mm HighPeak Energy ($HPK)2M share Secondary priced at $10.00 Helix Energy ($HLX) narrows FY21 revenue view to $600M-$645M from $600M-$670M; narrows FY21 adjusted EBITDA view to $85M-$100M from $75M-$100M and boosts FY free cash flow view to $80M-$120M from $45M-$90M; lowers cap-ex view Valero (VLO) Q3 adj EPS $1.22 vs. est. $0.92; Q3 revs $29.52B vs. est. $23.97B Financials Discover Financial ($DFS) Q3 EPS $3.54 vs. est. $3.53; Q3 revs $2.78B vs. est. $2.91B; Total loans ended the quarter at $89.5 billion, up 1% year-over-year, and up 2% sequentially. Credit card loans ended the quarter at $70.3 billion, up 1% year-over-year. Personal loans decreased $321 million, or 4%, and private student loans increased $168 million, or 2%, year-over-year. Banner Corp. ($BANR) 3Q EPS $1.44 vs est. $1.15 on revs $155.5Mm vs est. $122.6Mm Cohen & Steers ($CNS) 3Q adj EPS $1.06 vs est. $0.97 on revs $154.2Mm vs est. $148.3Mm Equifax ($EFX) 3Q adj EPS $1.85 vs est. $1.72 on revs $1.2B vs est. $1.18B; guides 4Q revs $1.23-1.25B vs est. $1.2B and adj EPS $1.72-1.82 vs est. $1.80; sees FY revs $4.9-4.92B vs est. $4.83B and adj EPS $7.52-7.62 vs est. $7.47 First Industrial Realty ($FR) 3Q FFO/share $0.51 vs est. $0.49; raises FY FFO/share guide by $0.02 at midpoint to $1.95 vs est. $1.94 OneMain Holdings ($OMF) 3Q adj EPS $2.37 vs est. $2.30; C&I managed receivables $19.1B, C&I net charge-off ratio 3.52%, repurchased 2.4Mm shares for $141Mm in qtr; proposes minimum qtrly div/share of $0.70; Sterling Bancorp. ($STL) 3Q adj EPS $0.52 vs est. $0.51; NII $213.8Mm vs est. $219.3Mm; proposes 3Q dividend of $0.07 SL Green Realty ($SLG) Q3 FFO $1.78 vs. est. $1.58; Q3 revs $142.7M vs. est. $160.97M; revising its earnings guidance ranges; said same-store cash NOI, including our share of same-store cash NOI from unconsolidated joint ventures, increased by 5.7% for Q3; narrows FY21 FFO view to $6.45-$6.65 from $6.30-$6.70 SLM Corp. ($SLM) 3Q core EPS $0.24 vs est. $0.20; private education loan originations +10% to $2.1B; declares 4Q dividend of $0.11/share vs $0.03/share in 3Q21; qtrly NII $358Mm vs est. $343.6Mm; qtrly education loan provisions for credit losses $138Mm; sees FY net charge-offs $195M to $205M, saw $215M to $225M Texas Capital ($TCBI) Q3 EPS $0.76 vs. est. $1.10; Q3 net interest income of $194.1M declines from $197.0M in Q2 and $207.6M YoY due to a decline in loan fees, partially offset by a decrease in average interest-bearing deposits; non-interest income also fell 30% from Q2 and 65% from Q3 2020, driven by Q2 sale of its mortgage servicing rights portfolio and other non-interest income. Triumph Bancorp ($TBK) Q3 EPS $0.94 vs est. $1.08; Q3 net charge-offs .08%; Q3 CET1 capital ratio 9.45%; Q3 tangible book value per share $19.73; net interest margin was 6.69%. Yield on loans and the average cost of our total deposits were 7.92% and 0.16%, respectively Umpqua Holdings Corporation ($UMPQ) Q3 EPS $0.49 vs. est. $0.44; Net income of $108.1 million, or $0.49 per common share; non-PPP loan balances increased $479.7 million or 2.3%; Deposit balances increased $754.8 million or 2.9%; provision for credit losses recapture of $18.9 million as modeled economic conditions improve Healthcare S. regulators on Wednesday signed off on extending COVID-19 boosters to Americans who got the Moderna (MRNA) or Johnson & Johnson ($JNJ) vaccine and said anyone eligible for an extra dose can get a brand different from the one they received initially. Tenet Healthcare ($THC) Q3 adj EPS $1.99 vs. est. $0.99; Q3 revs $4.89B vs. est. $4.81B; qtrly same-hospital net patient service revenue per adjusted admission up 6.2% versus q3 2020; sees 2021 adj EPS now $6.15-$6.38 (from prior $5.23-$5.73) and adj Ebitda $3.275B-$3.325B (from prior $3.15B-$3.25B) Regeneron ($REGN) and Sanofi ($SNY) said the FDA has approved Dupixent, or dupilumab, as an add-on maintenance treatment of patients aged 6 to 11 years with moderate-to-severe asthma characterized by an eosinophilic phenotype or with oral corticosteroid-dependent asthma Ventyx Biosciences ($VTYX)47M share IPO priced at $16.00 Investment adviser Darwin Global Management became the third shareholder of Acceleron Pharmaceuticals ($XLRN) to publicly oppose the company’s pending acquisition by Merck ($MRK). In a letter, Darwin said it believes Merck’s $11 billion offer price, or $180 per share, is too low. Acceleron is actually worth between $22 billion and $28 billion, according to the firm, or $353 to $451 per share Industrials & Materials CSX Corp. ($CSX) 3Q EPS $0.43 vs est. $0.39 on revs $3.29B vs est. $3.11B; 24% surge in revenue just outpaced a 23% increase in expenses. Activist investor Elliott Management Corp. has a big stake in Canadian National Railway Co. ($CNI), the WSJ reported citing people familiar with the matter said, adding to pressure on the railroad after its CEO resigned following a failed bid for rival Kansas City Southern. Covenant Logistics ($CVLG) 3Q adj EPS $1.02 vs est. $1.02 on revs $274.6Mm vs est. $259.9Mm Dow Inc. ($DOW) Q3 EPS $2.75 vs. est. $2.56; Q3 revs $14.84B vs. est. $14.25 Graco ($GGG) 3Q adj EPS $0.57 vs est. $0.63 on revs $486.7Mm vs est. $490.5Mm; says continue to target mid-high-teen organic sales growth on constant currency basis for FY21 vs est. +19% Kaiser Aluminum ($KALU) Q3 adj EPS $0.57 vs. est. $1.33; Q3 sales $751M misses the $773.2M est.; anticipates cost issues and supply chain disruptions will continue during quarter Landstar ($LSTR) Q3 EPS $2.58 vs. est. $2.49; Q3 revs $1.734B vs. est. $1.66B; Q3 truckload transportation revenue hauled via van equipment inQ3 was up 59% YoY to $918.1M; truckload transportation revenue hauled via unsided/platform equipment in Q3 was up 44% to $423.0M; sees Q4 EPS $2.55-$2.65 vs. est. $2.43 PPG Industries ($PPG) 3Q adj EPS $1.69 vs est. $1.58 on sales about $4.4B vs est. $4.24B; guides FY adj EPS $6.67-6.73 vs est. $7.03; says plan to execute share repurchases in 4Q and continue to evaluate potential bolt-on acquisitions; say increased supply disruptions negatively impacted sales and manufacturing costs Rush Enterprises ($RUSHA) Q3 EPS $1.20 vs. est. $0.96; Q3 revs $1.27B below est. $1.34B; said supply chain issues continue to impact new truck and aftermarket sales Valmont Industries ($VMI) 3Q adj EPS $2.57 vs est. $2.47 on revs $868.8Mm vs est. $862.3Mm; guides FY adj EPS $10.60-11.10 vs est. $10.78; sees FY22 sales +7-12% vs est. +6.2%, sees EPS +13-15% vs est. +13.5%

Friday, July 23, 2021 Futures Up/Down % Last Dow 169.00 0.49% 34,878 S&P 500 21.25 0.49% 4,381 Nasdaq 71.50 0.48% 15,000 Stocks looking to build on weekly gains, boosted overnight from strong results in the social media sector as both Twitter ($TWTR) and Snap ($SNAP) top expectations in what has been a generally strong week for quarterly earnings. After yesterday’s semiconductor weakness behind TXN guidance, Dow component Intel ($INTC) issues a beat and raise for the year last night, though conservative guidance for Q3 weighs on shares early. Major indexes rose for a third straight session on Thursday as investors looked past mixed weaker data showing a rise in first-time claims for unemployment benefits last week. In Asian markets, The Nikkei Index rose 159 points to 27,548, the Shanghai Index fell -24 points to 3,550, and the Hang Seng Index drops over 400 points (1.45%) to settle at 27,321. In Europe, the German DAX is up over 150 points (about 1%) to 15,665, while the FTSE 100 gains over 50 to 7,025. While enthusiastic about the economic recovery, investors remained nervous about the spread of the delta variant of COVID-19 which had weighed on sentiment last week. Markets also prepare for the busiest week of quarterly earnings coming up with results from Apple, Alphabet, and Facebook among them,. Market Closing Prices Yesterday The S&P 500 Index gained 8.79 points, or 0.20%, to 4,367.48 The Dow Jones Industrial Average rose 25.35 points, or 0.07%, to 34,823.35 The Nasdaq Composite gained 52.64 points, or 0.36%, to 14,684.60 The Russell 2000 Index declined -34.57 points, or 1.55% to 2,199.48 Events Calendar for Today 9:45 AM ET Markit Composite Flash PMI 9:45 AM ET Markit Manufacturing PMI for July 9:45 AM ET Markit Services Flash PMI 1:00 PM EST Baker Hughes Weekly rig count data Earnings Calendar: Earnings Before the Open: $ACBI, $AIMC, $AXP, $CIVB, $FHN, $GNTX, $HON, $KMB, $NEE, $NEP, $RF, $ROP, $SBSI, $SLB, $SXT Macro Up/Down Last Nymex -0.09 71.82 Brent -0.11 73.68 Gold -7.45 1,799.50 EUR/USD -0.0008 1.1763 JPY/USD 0.31 110.45 10-Year Note +0.026 1.293% World News Eurozone July Markit Mfg. PMI (flash) beat: 62.6 vs 62.5 consensus Eurozone July Markit Services PMI (flash) beat: 60.4 vs 59.5 consensus UK June Retail Sales Inc Auto Fuel YoY, actual 9.7%, est. 9.5%, prior 24.6% UK June Retail Sales Inc Auto Fuel MoM, actual 0.5%, est. -0.1%, prior -1.4%, revised -1.3% German July Markit/BME Germany Composite P, actual 62.5, est. 60.7, prior 60.1 German July Markit Germany Services PMI, actual 62.2, est. 59.5, prior 57.5 UK Markit/CIPS UK Services PMI, actual 57.8, est. 62.0, prior 62.4 UK July Markit UK PMI Manufacturing SA, actual 60.4, est. 62.3, prior 63.9 Sector News Breakdown Consumer Magna International Inc. ($MGA) to acquire Veoneer, Inc. ($VNE) for $ 31.25 per share in cash, representing a total value of $ 3.8 billion, and an enterprise value of $ 3.3 billion, inclusive of Veoneer’s cash, net of debt and other debt-like items as of March 31, 2021 Chinese education names getting crushed down over 40%: New oriental (EDU), TAL Education (TAL), and Gaotu Techedu ($GOTU) getting crushed on Bloomberg report that China is considering asking companies that offering tutoring on the school curriculum to go non-profit, according to people familiar with the matter. In rules currently being mulled, the platforms will likely no longer be allowed to raise capital or go public, the people said Boston Beer ($SAM) shares fall -15%; Q2 EPS $4.75 vs. est. $6.69; Q2 revs $602.8M vs. est. $657.6M; sees year EPS $18.00-$22.00 vs. est. $24.66; in 2021 and going forward, company has chosen not to report covid-19 related direct costs separately Del Taco ($TACO) Q2 adj EPS $0.16 vs. est. $0.11; Q2 revs $125M vs. est. $122.79M; Q2 system-wide comp store sales up 17.8%; Q2 company-operated comp sales up 18.3% and Q2 franchise comp sales up 17.2%; expects system-wide new unit growth to achieve 5% in 2023 led by franchising Skecher’s ($SKX) 2Q EPS $0.88 vs est. $0.52 on revs $1.66B vs es.t $1.49B; guides 3Q EPS $0.70-0.75 vs est. $0.63, sees 3Q revs $1.6-1.65B vs est. $1.52B; guides FY EPS $2.55-2.65 vs est. $2.13, sees FY revs $6.15-6.25B vs est. $5.93B Lamb Weston Holdings ($LW) announces $415 million capital investment in new French fry processing line in American falls, Idaho; declares quarterly dividend Robert Half ($RHI) 2Q EPS $1.33 vs est. $1.05 on revs $1.58B vs est. $1.48B Scholastic ($SCHL) 4Q adj EPS $0.90 on revs $401.4Mm; expects significant growth in FY22 revs yr/yr com ($GAMB) 5.25M share IPO priced at $8.00 Xponential Fitness ($XPOF) 10M share IPO priced at $12.00 Energy DMC Global (BOOM) 2Q EPS $0.10 vs est. $0.13 on sales $65.4Mm vs est. $69.5Mm; guides 3Q sales $46-48Mm vs est. $73.3Mm First Energy (FE) 2Q adj EPS $0.59 vs est. $0.57 on revs $2.6B vs est. $2.65B; guides 3Q adj EPS $0.70-0.80 vs est. $0.82; guides FY adj EPS $2.40-2.60 vs est. $2.50 Financials Capital One ($COF) Q2 adj EPS $7.71 vs. est. $4.61; Q2 revs $7.4B vs. est. $7.09B; NII $5.74B vs est. $5.58B, NIM 5.89% -10bps sequentially, common equity tier 1 capital ratio 14.5%, provision decreased $337Mm to ($1.2B) vs 1Q Bank OZK ($OZK) Q2 EPS $1.16 vs. est. $0.92; return on average assets 2.24% vs. 0.78% y/y; return on average equity 13.7% vs. 4.92% y/y; net interest income $240.7 million, +11% y/y; efficiency ratio 38.4% vs. 42.1% y/y Independent Bank ($INDB) Q2 EPS $1.17 vs. est. $1.08; Q2 revs $118.32M vs. est. $117.92M; total assets of $14.2B at June 30 increased by $420.3M, or 3.1%, from the prior quarter, and by $1.2B, or 9.0%, as compared to the year ago period; Q2 total loans at June 30 decreased by $307.7M, or 3.3%, when compared to the prior quarter RenaissanceRe ($RNR) 2Q adj EPS $5.64 vs est. $4.74 on revs $1.48B vs est. $1.28B, says net claims and claim expenses incurred associated with the covid pandemic were not significant in 2Q SVB Financial ($SIVB) Q2 GAAP EPS of $9.09 vs. est. $6.50; Q2 revs up 69% YoY to $1.49B (+69.0% Y/Y) beats by $350M; Q2 average loans of $49.8 billion, an increase of $3.5 billion; period-end loans of $50.8 billion, an increase of $3.1 billion; average total client funds increased $45.9 billion to $308.1 billion, which includes an increase in average on-balance sheet deposits of $23.2 billion R. Berkley ($WRB) Q2 EPS $1.27 vs. est. $0.94; Q2 revenue $2.30B vs. est. $2.16B; Q2 net premiums written $2.21B vs. $1.74M last year and consolidated combined ratio of 89.7% vs. 98.7% last year Future FinTech ($FTFT) files $200M mixed securities shelf S. Century Bank ($USCB) 4M share IPO priced at $10.00 Healthcare Caribou Biosciences (CRBU) 19M share IPO priced at $16.00 Cytek Biosciences (CTKB)7M share IPO priced at $17.00 Sophia Genetics (SOPH) 13M share IPO priced at $18.00 Industrials & Materials Honeywell ($HON) Q2 EPS $2.02 vs. est. $1.94; Q2 revs $8.81B vs. est. $8.63B; raises FY21 adj EPS view to $7.95-$8.10 from $7.75-$8.00 (est. $8.01) and boosts FY21 revenue view to $34.6B-$35.2B from $34B-$34.8B (est. $34.93B) Carlisle Corp. ($CSL) Q2 adj EPS $2.16 vs. est. $2.12; Q2 revs $1.2B vs. est. $1.15B; now sees full year sales to be up mid-teens Celanese ($CE) 2Q EPS $4.81 vs est. $4.44 on revs $2.2B vs est. $1.96B; guides 3Q adj EPS $4.50-4.75 vs est. $3.39; guides FY adj EPS $16.50-17.00 vs est. $13.98 S. Xpress Enterprises ($USX) Q2 adj EPS $0.08 vs. est. $0.16; Q2 revs $475M vs. est. $463.69M; continues to expect strong freight demand for balance of 2021; says expects total fleet size to begin growing in q3 Vicor ($VICR) reports Q2 EPS 43c vs. est. 33c; Q2 revs $95.4M vs. est. $93.98M Technology, Media & Telecom Intel Corp. ($INTC) 2Q adj EPS $1.28 vs est. $1.05 on revs $18.5B vs est. $17.8B; guides 3Q adj revs $18.2B vs est. $18.1B and adj EPS about $1.10 vs est. $1.08; guides FY adj revs $73.5B vs est. $72.8B, sees FY adj EPS $4.80 vs est. $4.62, sees FY adj gr mgn about 56.5% Twitter ($TWTR) Q2 EPS $0.20 vs. est. $0.07; Q2 revs $1.19B vs. est. $1.07B; Q2 Advertising revenue totaled $1.05 billion, an increase of 87% yoy, or 85% on a constant currency basis; Q2 cost per engagement (CPE) increased 42% yoy; reached 206 million average monetizable DUA in 2q, up 11%; Q2 international revenue $537m; had 11% year-over-year growth in monetizable daily active usage Snap inc. ($SNAP) 2Q adj EPS $0.10 vs est. ($0.01) on revs $982Mm vs est. $845.5Mm, DAU +23% to 293Mm; guides 3Q revs $1.07-1.085B vs est. $1.0B, sees 3Q adj EBITDA $100-120Mm vs est. $116.7Mm, says currently estimate DAU grow about 21% yr/yr to reach about 301Mm in 3Q, continues to invest heavily in video advertising, says the expected iOS platform policy changes did not materialize in 2Q to disrupt ad demand Verisign ($VRSN) Q2 EPS $1.31 vs. est. $1.32; Q2 revs $329M vs. est. $327.95M; ended 2q with cash, cash equivalents and marketable securities of $1.12B; ended Q2 with 170.6 million .com and .net domain name registrations in the domain name base, a 5.2% increase from the end of the second quarter of 2020, and a net increase of 2.59 million during the second quarter of 2021 Clearfield ($CLFD) 3Q EPS $0.44 on sales $38.7Mm; guides FY sales $150-160Mm above est. $122.9Mm Outbrain ($OB) 8M share IPO priced at $20.00

Thursday, July 22, 2021 Futures Up/Down % Last Dow 83.00 0.24% 34,772 S&P 500 8.25 0.20% 4,359 Nasdaq 20.50 0.14% 14,848 Stock futures pointing higher, looking to make it a third straight day in a row of gains as optimism about earnings and the economic recovery outweighed Wall Street’s concerns about rising inflation and surging coronavirus cases. The yield on the benchmark 10-year Treasury rose early Thursday to 1.287% after touching lows below 1.13% earlier this week. President Joe Biden, at a town hall in Cincinnati hosted by CNN, said Wednesday night “there will be near-term inflation” as the economy recovers but said he has been advised by his economic team that current price increases won’t last as demand returns to normal levels. Stocks advanced Wednesday as strong corporate earnings and renewed optimism about the U.S. economic recovery stoked investor risk appetite. All three major U.S. stock indexes appeared set to build on the previous session’s gains, which delivered the S&P 500’s best day since March, while the Russell 2000 SmallCap outperformed for a second day after trading in correction territory on Monday (defined as 10% down off record highs). With Wednesday’s advance, all three are within 1% of their all-time closing highs. Economically sensitive SmallCaps, semiconductors and financials outperformed the broader market as investors prep for another busy day of earnings. In Asian markets, The Nikkei Index rose 159 points to 27,548, the Shanghai Index gained 12 points to 3,574 and the Hang Seng Index jumped nearly 500 points (1.83%) to settle at 27,723. In Europe, the German DAX is jumps 125 points to 15,550, while the FTSE 100 rises about 15 points to move above the 7,000 level. Market Closing Prices Yesterday The S&P 500 Index gained 35.63 points, or 0.82%, to 4,358.69 The Dow Jones Industrial Average rose 286.01 points, or 0.83%, to 34,798.00 The Nasdaq Composite jumped 133.08 points, or 0.92%, to 14,631.95 The Russell 2000 Index advanced 39.74 points, or 1.81% to 2,234.04 Events Calendar for Today 8:30 AM ET Weekly Jobless Claims 8:30 AM EST Continuing Claims 10:00 AM ET Existing Home Sales MoM for June 10:00 AM ET Leading Index MoM for June 10:30 AM ET Weekly EIA Natural Gas Inventory Data 11:00 AM ET Kansas City Fed Manufacturing for July Earnings Calendar: Earnings Before the Open: $AAL, $ABT, $AEP, $ALK, $AUB, $BANC, $BCO, $BIIB, $BKU, $BX, $CADE, $CLF, $CROX, $CSBR, $DGX, $DHI, $DHR, $DOW, $EWBC, $FAF, $FCX, $FITB, $GPC, $GTLS, $HRI, $HZO, $IIIN, $LUV, $MMC, $NEM, $NUE, $POOL, $RS, $SAFE, $SON, $T, $TPH, $TRN, $UNP, $VLY, $WBS, $WSO Earnings After the Close: $ABCB, $ASB, $BOOM, CBSH, $CE, $COF, $CSL, $CSTR, $GGBC, $INTC, $MMLP, $MSBI, $OZK, $RBNC, $SAM, $SBCF, $SIVB, $SNA, $SNAP, $TACO, $TWTR, $USX, $VRSN, $WRB, $WSFS Macro Up/Down Last Nymex 0.63 70.93 Brent 0.62 72.85 Gold -7.50 1,796.10 EUR/USD -0.0007 1.1787 JPY/USD -0.01 110.28 10-Year Note +0.013 1.295% World News The U.S. Treasury Department is projected to exhaust its borrowing authority in October or November, the Congressional Budget Office said on Wednesday, as a fight between Democrats and Republicans over raising the nation’s debt ceiling erupted in Congress. A failure to work out differences over whether government spending cuts should accompany an increase in the statutory debt limit, currently set at $28.5 trillion, could lead to a federal government shutdown – as has happened three times in the past decade – or even a debt default. Sector News Breakdown Consumer Las Vegas Sands ($LVS) 2Q EPS loss ($0.25) vs est. ($0.17), adj property EBITDA $244Mm, revs $1.17B vs est. $1.41B, net revs from Macao $855Mm Whirlpool ($WHR) Q2 adj EPS $6.64 vs. est. $5.93; Q2 revs $5.32B vs. est. $5.05B; raises FY21 adjusted EPS view to $26.00 from $22.50-$23.50 (est. $23.73); boosts FY21 net sales growth to ~16% from ~13%; sees FY21 cash provided by operating activities of $1.95B Stanley Black & Decker ($SWK) raises quarterly dividend 13% to 79c from 70c per share R. Horton ($DHI) Q3 EPS $3.06 vs. est. $2.81; Q3 revs $7.3B vs. est. $7.19B; Q3 net sales decreased 17% to 17,952 homes and increased 2% in value to $6.4 billion compared to 21,519 homes and $6.3 billion in the same quarter of the prior year; sees FY21 consolidated revenue $27.6B-$28.1B vs. est. $27.4B China is weighing an unprecedented penalty for Didi Global (DIDI) following its IPO last month, people familiar with the matter tell Bloomberg Energy Kinder Morgan ($KMI) Q2 adj EPS $0.23 vs. est. $0.19; Q2 revs $3.15B vs. est. $2.88B; expects to meet or exceed the top end of the range provided last quarter for DCF and Adjusted EBITDA; anticipates generating 2021 DCF of $5.4 billion and Adjusted EBITDA of $7.9 billion. TechnipFMC ($FTI) Q2 adj EPS ($0.06) vs est. ($0.01) on revs $1.669B vs est. $1.6B, qtr-end backlog $7.3B, qtrly inbound orders $1.56B; guides FY subsea revs $5.2-5.5B, guides surface tech revs $1.05-1.25B vs total revs est. $6.452 Precision Drilling (PDS) Q2 EPS loss (C$5.71) vs. (C$3.56) a year ago; Q2 revs C$201M vs. C$189.76M a year ago Chart Industries ($GTLS) Q2 adj EPS 80c vs. est. 79c; Q2 revs $322.0M vs. est. $317.45M; raises FY21 adjusted EPS view to $3.80-$4.25 from $3.65-$4.15 (est. $3.91); raises FY21 revenue guidance to $1.38B-$1.43B from $1.36B-$1.41B Financials Cohen & Steers ($CNS) Q2 adj EPS 94c vs. est. 86c; Q2 revs $144.27M vs. est. $131.17M; ending AUM of $96.2B, vs. $87.04B at previous quarter end – increase was driven by net inflows of $2.6B and market appreciation of $7.4B, partially offset by distributions of $769M Discover Financial ($DFS) 2Q EPS $5.55 vs est. $3.97, qtrly payment services volume $78.4B +22%, total loans ended qtr at $87.7B -1%, credit card loans ended qtr at $68.9B -2%, total net charge-off rt 2.12%; increases qtrly common stock dividend from $0.44-0.50/shr, approves share repurchase up to $2.4B Equifax ($EFX) 2Q adj EPS $1.98 vs est. $1.71 on revs $1.235B vs est. $1.16B; guides 3Q adj EPS $1.62-1.72 vs est. $1.65, raises FY adj EPS guide to $7.25-7.45 vs est. $7.05, sees FY revs $4.76-4.8B vs est. $4.675B Globe Life ($GL) 2Q EPS $1.92 vs est. $1.82; guides FY EPS $7.34-7.54 vs est. $7.29; says for FY at mid-point of guidance, estimate covid life claims between $53-55Mm Moelis ($MC) Q2 adj EPS $1.19 vs. est. $0.80; Q2 revs $360.9M vs. est. $273.8M; raises quarterly dividend by 9% to $0.60 and approves $100M share buyback OneMain Financial ($OMF) 2Q adj EPS $2.66 vs est. $2.19, NII $708Mm vs est. $769.1Mm; C&I managed receivables $18.3B, net charge-off ratio 4.41%, repurchased $35Mm in 2Q SEI Investments ($SEIC) 2Q EPS $0.93 vs est. $0.92 on revs $475.7Mm vs est. $464.7Mm SL Green Realty ($SLG) 2Q FFO/shr $1.60 vs est. $1.62, qtrly consolidated revs $218.1Mm vs est. $189.6Mm, op income $88.7Mm; same-store cash NOI including share of same-store NOI from unconsolidated JVs -3.7% yr/yr SLM Corp. ($SLM) Q2 core EPS $0.45 vs. est. $0.35; raises FY21 GAAP EPS view to $3.15-$3.25 from $2.95-$3.15; affirms FY21 private education loan origination y/y growth view of 6%-7% and lowers portfolio net charge-off view to $215M-$225M from $260M-$280M Texas Capital ($TCBI) 2Q EPS $1.31 vs est. $1.21; net interest income was $197.0 mln for q2 of 2021, compared to $200.1 mln for q1 of 2021 Triumph Bancorp. ($TBK) 2Q adj EPS $1.17 vs est. $1.02, NII $90.3Mm vs est. $89.2Mm, net int margin 6.47% Umpqua Holdings ($UMPQ) Q2 EPS $0.53 vs. est. $0.44; Q2 loan loss provision ($23M) vs. $87.08M a year ago; Q2 net charge-offs ($13.6M) vs. ($16.16M) a year ago; tangible book value per share was $12.49 at quarter end from $12.10 at previous quarter end; board approves to repurchase up to $400M of stock Ryan Specialty Group ($RYAN) 57M share IPO priced at $23.50 Travelers ($TRV) downgraded to Underperform from Buy at Bank America Healthcare Pfizer Inc. ($PFE) said the FDA has notified the company that it will not meet the Prescription Drug User Fee Act (PDUFA) goal dates for the New Drug Application for abrocitinib for the treatment of adults and adolescents with moderate to severe atopic dermatitis and the supplemental New Drug Application for XELJANZ/XELJANZ XR (tofacitinib) for the treatment of adults with active ankylosing spondylitis ICON Plc ($ICLR) Q2 adj EPS $2.12 vs. est. $2.09; Q2 revs $871.2M vs. est. $855.9M; sees FY21 EPS $9.10-$9.50 vs. est. $8.71; Record net business wins in the quarter of $1,106 million, an increase of 21.6% year on year; a net book to bill of 1.27; record closing backlog of $10.2 billion, an increase of 12.7% year on year Tenet Healthcare ($THC) Q2 EPS $1.59 vs. est. $1.07; Q2 revs $4.95B vs. est. $4.79B; Q2 Same-facility system-wide ambulatory surgical cases were up 68.2% from last year; year adj EBITDA Outlook range now $3.15B-$3.25B, up from prior view of $3.0B-$3.2B, which excludes the projected gain on the sale of the Miami-area hospitals; year adjusted diluted EPS $5.23-$5.73 up from $4.12-$5.46 prior – shares fell as Q3 guidance falls below consensus Absci ($ABSI)5M share IPO priced at $16.00 Natera ($NTRA)5M share Secondary priced at $113.00 Danaher ($DHR) Q2 adj EPS $2.46 vs. est. $2.05; Q2 revs $7.22B vs. est. $6.72B; for q3 2021, anticipates that non-GAAP core revenue growth will be in mid- to high-teens percent range; for full year 2021, now anticipates that non-GAAP core revenue growth rate including Cytiva will be about 20% Industrials & Materials CSX Corp. ($CSX) Q2 EPS $0.52 vs. est. $0.37; Q2 revs $2.99B vs. est. $2.93B; Q2 2021 operating ratio was 43.4% compared to 63.3% in prior year period; maintains full year revenue outlook and still sees year cap-ex $1.7B-$1.8B; Q2 expenses fall by 9% year-over-year to $1.30B Graco ($GGG) Q2 EPS $0.63 vs. est. $0.60; Q2 revs $507.2M vs. est. $475.94M; says initiating an outlook for full-year 2021 of mid-to-high teen sales growth on an organic, constant currency basis Dow Inc. ($DOW) Q2 EPS $2.72 vs. est. $2.30; Q2 revs $13.89B vs. est. $13.02B; qtrly packaging & specialty plastics segment net sales were $7.1 bln, up 78% versus year-ago period; industrial intermediates & infrastructure segment net sales were $4.2 bln, up 74% versus year-ago period; qtrly performance materials & coatings segment net sales were $2.5 bln, up 33% over year-ago BHP ($BHP) announced the signing of a nickel supply agreement with Tesla ($TSLA). Kaiser Aluminum ($KALU) Q2 adj EPS $1.00 vs. est. $1.44; Q2 revs $741M vs. est. $519.18M; qtrly shipments 337 mln lbs vs 119 mln lbs; said automotive business is temporarily dampened as ongoing shortages of semiconductor chips affects N. American light vehicle production Landstar ($LSTR) Q2 EPS $2.40 vs. est. $2.32; Q2 revs $1.57B vs. est. $1.46B; actual revenue per load on loads hauled via truck in 2021 q2 compared to 2021 q1 increased 7.5%; sees Q3 EPS $2.20-$2.30 and revs $1.55B-$1.6B UFP Industries ($UFPI) 2Q EPS $2.78 vs est. $1.81 on sales $2.7B vs est. $2.26B, expects all segments to benefit from more stable pricing in 2022 Valmont Industries ($VMI) Q2 adj EPS $3.06 vs. est. $2.50; Q2 revs $894.6M vs. est. $814.85M; sees FY21 adj EPS $10.40-$11.10 above consensus $9.89 and raises FY21 revenue growth view to 16%-19% from 9%-14%; expect meaningful sequential margin improvement in second half of 2021 as pricing becomes more aligned with steel cost inflation XL Fleet Corp ($XL) announced a battery and power electronics development and supply agreement and an investment in eNow, Inc., a provider of solar and battery power systems that enable fully-electric Transport Refrigeration Units for Class 8 commercial trailers