Friday, November 5, 2021
Futures Up/Down % Last
Dow 12.00 0.03% 36,021
S&P 500 10.25 0.23% 4,684
Nasdaq 82.50 0.51% 16,413
Stock futures are looking higher, with the tech heavy Nasdaq futures leading up +0.5%, trying to make it a 10th straight day of advances for the Composite ahead of key economic data. The monthly nonfarm payroll report for October is coming up later this morning, with an estimate for 450K jobs added, 400K added for private payrolls, 27K added for manufacturing and an unemployment rate to drop to 4.7% from 4.8% prior. Regardless of the data outcome, the Fed earlier this week announced it will start tapering its monthly $120B bond purchases by $15B in November and another $15B in December, also saying comparable decreases in pace are likely each month but they are willing to adapt if necessary. Stocks are looking to build on the momentous surge it has seen over the last two weeks, as the S&P 500 is on pace for its third straight year of 15%+ price gains, that would be just the second time that’s happened since 1928, according to Bespoke Investment. The S&P 500 and Nasdaq both closed at record high levels on Thursday, powered by double-digit percentage gains chipmakers Qualcomm and Nvidia. Qualcomm surged nearly 13% after the company provided a stronger than expected outlook, fueled by soaring demand for chips used in phones, cars and other internet-connected devices. Note the S&P 500 and Nasdaq’s have now set record high closes for six straight sessions. On the downside, the financials index sank Thursday as Treasury yields extended their tumble. With Thursday’s gains, the S&P 500 is up almost 25% in 2021 and the Nasdaq has gained nearly 24%. The Philadelphia chip index (SOX) jumped 3.5% for the session and it is now up 33% year to date.
In Asian markets, The Nikkei Index fell -0.6% to 29,611, the Shanghai Index dropped -1% to 3,491 and the Hang Seng Index declined -1.4% or over 3250 points to 24,879. In Europe, the German DAX is up slightly at 16,040, while the FTSE 100 gains roughly 0.5% to trade above the 7,300 level in another good week for European markets. Oil prices are bouncing after yesterday’s drop, Bitcoin stays above $61K and Treasury yields remain depressed.
Market Closing Prices Yesterday
The S&P 500 Index climbed 19.49 points, or 0.42%, to 4,680.06
The Dow Jones Industrial Average fell -33.35 points, or 0.09%, to 36,124.23
The Nasdaq Composite spiked 128.72 points, or 0.81%, to 15,940.31
The Russell 2000 Index slipped -1.85 points, or 0.08% to 2,402.43
Events Calendar for Today
8:30 AM ET Nonfarm Payrolls for October…est. 450K
8:30 AM ET Private Payrolls for October…est. 400K
8:30 AM ET Manufacturing Payrolls for October…est. 27K
8:30 AM ET Unemployment Rate for October…est. 4.7%
8:30 AM ET Average Hourly Earnings for October…est. 0.4%
1:00 PM EST Baker Hughes Weekly rig count data
3:00 AM ET Consumer Credit for September
Earnings Calendar:
Earnings Before the Open: AMR, AXL, CLMT, CNK, D, DKNG, DOC, ECOL, EOG, ESNT, FET, FLR, GCI, GRPN, GT, HE, JCI, KIM, MMI, MOG/A, NOG, RGA, SRE, SSP, TEN, TILE, TUSK, VTR, VST
Macro Up/Down Last
Nymex 0.85 79.66
Brent 0.51 81.05
Gold 1.50 1,793.50
EUR/USD -0.0021 1.1531
JPY/USD 0.08 113.86
10-Year Note +0.008 1.532%
Sector News Breakdown
Consumer
B&G Foods (BGS) Q3 adj EPS $0.55, in-line with ests; Q3 revs $515M vs. est. $489.64M; reaffirms FY21 revenue view $2.05B-$2.1B and sees FY21 adjusted EBITDA $358M-$365M
Floor & Decor (FND) Q3 EPS $0.69 vs. est. $0.57; Q3 revs rose 28% to $876.6M vs. est. $856.74M; said Q3 comp sales rose 10.9% Yoy
Funko (FNKO) Q3 adj EPS $0.39 vs est. $0.27 on sales $267.7M vs est. $240.7M; DTC sales +88% YoY, now account for 11% of net sales; sees FY21 adj EPS $1.20-$1.31 vs est. $1.15 on sales $950M-$975M vs est. $922.1M
GoPro (GPRO) Q3 adj EPS $0.34 vs est. $0.20 on revenue $316.7M vs est. $292.2M, adj EBITDA $60.4M vs est. $39.8M; subscriber count 1.34M, +168% YoY; avg selling price $381, +25% YoY
Monster Beverage (MNST) 3Q EPS $0.63 vs est. $0.67 on sales $1.41B vs est. $1.4B
Peloton (PTON) shares plunge 30%; 1Q EPS ($1.25) vs est. ($1.07) on revs $805.2Mm vs est. $810.7Mm, 1Q connected fitness subs +87% to 2.49Mm and paid digital subs +74% to 887K; guides 2Q revs about $1.1-1.2B vs est. $1.5B, sees FY revs $4.4-4.8B vs est. $5.4B
Shake Shack (SHAK) Q3 adj EPS (5c) vs est. (6c) on revenue $193.9M vs est. $197.5M, same-store sales +24.8%; sees Q4 revenue $193.5M-$200M vs est. $202.1M;
Uber Technologies (UBER) Q4 EPS loss (-$1.28) vs. est. loss (-$0.33); qtrly revenue grew 72% yoy to$4.8 billion, or 69% on a constant currency basis; qtrly gross bookings reached an all-time high of $23.1 bln, up 57% YoY; airport gross bookings mix in U.S. has reverted back to pre-covid levels while approaching 12% to 13% of global mobility gross bookings; for the first time in 2021, demand recovery is in balance with supply recovery; beginning to rapidly build non-restaurant food delivery offerings in 2021
WW Inc. (WW) Q3 EPS $0.65 vs. est. $0.73; Q3 revs $293.5M vs. est. $314.12M; ends Q3 with subscribers of 4.5M; sees FY21 GAAP EPS 80c-90c below consensus $1.65; sees FY21 revs modestly above $1.2B vs. est. $1.29B
The Real Good Food Company (RGF)333M share IPO priced at $12.00
Energy
Delek (DK) Q3 adj EPS $0.13 vs. est. loss (-$0.35); Q3 revs $2.96B vs. est. $2.55B; refining contribution margin increased to $91.4 mln in q3 2021 from negative $17.8M in Q3; midstream remains resilient with dkl on-track to deliver a 5% distribution increase on a full-year basis
EOG Resources (EOG) Q3 adj EPS $2.16 vs. est. $2.04; Q3 revs $4.77B vs. est. $4.53B; qtrly total company crude oil production of 449,500 boed; increased regular dividend 82% to an indicated annual rate of $3.00 per share; Generated $1.4 billion of free cash flow; capital expenditures near low end of guidance range driven by sustainable cost reductions
First Solar (FSLR) 3Q EPS $0.42 vs est. $0.59 on revs $584Mm vs est. $685Mm; guides FY net sales $2.875-3.1B vs est. $2.9B, sees FY EPS $4.00-4.60 vs est. $4.15
Occidental Petroleum (OXY) Q3 EPS $0.87 vs. est. $0.66; Q3 revs $6.81B vs. est. $6.55B; total average production from continuing operations of 1,160 thousand of barrels of oil equivalent per day for q3; in qtr, average worldwide realized crude oil prices increased by about 7% from prior qtr to $68.74 per barrel
SunRun (RUN) Q3 EPS $0.11 vs. est. $0.01; Q3 revs $438.8M vs. est. $414.3M; Customer Additions of 30,698 in Q3, Bringing Total Customers to 630,441, 20% year-over-year growth in Customers pro-forma for Vivint Solar; Net Subscriber Value of $7,605 in Q3, an increase of $2,031 from Q2; Annual Recurring Revenue of $787 Million with Average Contract Life Remaining of 17.3 years
Financials
AIG Inc. (AIG) Q3 adj eps $0.97 vs. est. $0.89; qtrly total general insurance net premiums written increased 11% to $6.6 billion from prior year quarter; qtrly total general insurance underwriting income was $20 mln compared to an underwriting loss of $423 million in prior year quarter; qtrly general insurance APTI increased by $395 million to $811 million from prior year quarter
CubeSmart (CUBE) 3Q adj FFO/shr $0.56 vs est. $0.53, qtrly same-store occupancy averaged 95.6% and ended qtr at 94.8%; guides Fy adj FFO/shr $2.09-2.10 vs est. $2.04
Redfin (RDFN) 3Q EPS ($0.20) vs est. ($0.19) on revs $540Mm vs est. $534.9Mm; guides 4Q revs $585-606Mm vs est. $503.4Mm
Green Dot (GDOT) Q3 adj EPS $0.43 vs est. $0.37 on revenue $339.5M vs est. $304.8B; now sees FY adj EPS $2.19-$2.27 from $2.13-$2.27, revenue $1.37B-$1.38B from $1.33B-$1.35B
Rocket Co’s (RKT) Q3 adj EPS $0.57 vs est. $0.48 on revenue $3.12B vs est. $2.93B; closed loan volume $88B, gain on sale margin of 3.05%, both of which exceed guidance; sees Q4 closed loan volume $75B-$80B, net rate lock volume $71B-$78B
Square Inc. (SQ) Q3 adj EPS $0.37 vs. est. $0.39; Q3 revs $3.84B below est. $4.52B; excluding bitcoin, total net revenue in the third quarter was $2.03 billion, up 45% YoY; bitcoin rev was $1.81 bln in q3, up 11%; bitcoin gross profit was only $42 mln, or about 2% of bitcoin revenue; transaction-based revenue was $1.30 billion in Q3, up 40% YoY; processed $45.4 billion in GPV in Q3 of 2021, up 43% YoY; cash app delivered strong growth, generating $2.39 billion of revenue
Monmouth Real Estate (MNR) to be acquired by ILPT for $21.00 per share, or $4B
Healthcare
Endo Pharma (ENDP) 3Q adj EPS $0.80 vs est. $0.48 on revs $772Mm vs est. $669.7Mm; guides FY revs $2.9-2.94B vs est. $2.79B, sees FY adj EPS $2.80-2.85 vs est. $2.33
Illumina (ILMN) Q3 adj EPS $1.45 vs. est. $1.14; Q3 revs $1.108B vs. est. $1.05B; raises FY rev guidance as expects both consolidated and core Illumina rev growth of about 36% for fy21
Insulet (PODD) 3Q EPS $0.18 vs est. $0.24 on revs $275.6Mm; guides FY revs to +18-20% vs est. +19.9%
iRhythm Technologies, Inc. (IRTC) 3Q EPS ($0.81) vs est. ($1.10) on revs $85.4Mm; guides FY revs $317-319Mm vs est. $323.5Mm
Mettler-Toledo (MTD) Q3 adj EPS $8.72 vs. est. $8.24; Q3 revs $952M vs. est. $924.31M; anticipates local currency sales growth for q4 of 2021 will be about 8% and EPS growth of 8% to 9%; anticipates local currency sales growth in 2022 will be about 6%
Novavax (NVAX) Q3 EPS ($4.31) vs. est. loss ($3.91); Q3 revs $178.8M vs. est. $334.62M; said as of September 30, 2021, Novavax had $1.9B in cash, cash equivalents and restricted cash, compared to $0.8B as of December 31, 2020; announced the completion of its rolling submission to the WHO for emergency use listing of NVX-CoV2373, its COVID-19 vaccine candidate.
The FDA has declined to approve an EUA request from NRx Pharmaceuticals (NRXP) for Zyesami (aviptadil) for patients with critical COVID-19 with respiratory failure; shares down -24%
Evaxion Biotech (EVAX)43M share Secondary priced at $7.00
IO Biotech (IOBT)15M share IPO priced at $14.00
Industrials & Materials
Air Transport Services Group, Inc. (ATSG) 3Q adj EPS $0.60 vs est. $0.46 on revs $466Mm vs es.t $434.7Mm; guides FY adj EBITDA at least $535Mm vs est. $531Mm
Barnes Group (BE) Q3 adj EPS (20c) vs est. (9c) on revenue $207.2M vs est. $239M
Chemours (CC) 3Q adj EPS $1.27 vs est. $1.02 on revs $1.7B vs est. $1.58B; guides FY adj EPS $3.93-4.13 vs. est. $3.67
Livent Corp. (LTHM) 3Q adj EPS $0.03 vs est. $0.04 on revs $103.6Mm vs est. $96.1Mm; guides FY revs $390-410Mm vs est. $386.4Mm
MasTec (MTZ) Q3 adj EPS $1.81 vs. est. $1.68; Q3 revs $2.404B vs. est. $2.28B; guides 4Q adj EPS $1.33 vs est. $1.35, sees 4Q revs about $1.9B vs est. $2.1B
Snap-on (SNA) announces $500M share buyback
