Thursday, May 20, 2021
Futures Up/Down % Last
Dow -151.00 0.45% 33,680
S&P 500 -16.00 0.41% 4,094
Nasdaq -49.00 0.37% 13,184
Stock futures are looking lower to start, on track for a 4th straight day of losses (S&P hasnโt fell 4-straight days since 2/16-2/22) as markets were surprised in the Fedโs discussion on easing back bond purchases if the economy improves quickly, in its minutes from their April FOMC meeting released yesterday. Energy and Materials were the biggest drags on the market, along with a plunge across the crypto currency space, led by Bitcoin, Ethereum, and the like. Today however, the crypto space is rebounding from overnight weakness with Bitcoin back above the $40K level (after dropping to $30K on Wednesday). The Nasdaq Composite Index is on pace for its worst monthly performance since September 2020, off by more than 5%, as rising inflation fears dent high growth stocks. Treasury yields are down slightly after topping 1.68% on Wednesday. In Asian markets, The Nikkei Index rose 53 points to 28,098, the Shanghai Index slipped -4 points to 3,506, and the Hang Seng Index dropped -143 points to 28,450. In Europe, the German DAX is up about 65 points to 15,180, while the FTSE 100 is little changed at 6,950. Dow component Cisco Systems (CSCO) slips after issuing a lower Q4 outlook.
Market Closing Prices Yesterday
The S&P 500 Index slipped -12.15 points, or 0.29%, to 4,115.638
The Dow Jones Industrial Average fell -164.62 points, or 0.48%, to 33,896.04
The Nasdaq Composite dipped -3.90 points, or 0.03%, to 13,299.74
The Russell 2000 Index declined -17.24 points, or 0.78% to 2,193.64
Events Calendar for Today
8:30 AM ET Weekly Jobless Claimsโฆest. 450K
8:30 AM EST Continuing Claimsโฆest. 3.64M
8:30 AM EST Philly Fed Business Survey for Mayโฆest. 43.0
10:00 AM EST Leading Index MoM for Aprilโฆest. 1.4%
10:30 AM ET Weekly EIA Natural Gas Inventory Data
Earnings Calendar:
Earnings Before the Open: BJ, BRC, HRL, KSS, MNRO, PLCE, RL, WMS, WOOF
Earnings After the Close: AINV, AMAT, DECK, PANW, ROST
Other Key Events:
S. Commerce Secretary Gina Raimondo plans to hold a May 20 meeting with senior U.S. auto industry leaders and other industry officials on a semiconductor shortage that has cut production
JPMorgan Homebuilding & Building Products Conference (virtual), 5/19-5/20
UBS Financial Institutions Conference (virtual), 5/19-5/21
American gas Association Financial Forum (virtual), 5/19-5/20
Virtual Display Week 2021, 5/17-5/21
Macro Up/Down Last
Nymex -0.92 62.44
Brent -1.41 65.25
Gold -2.95 1,866.65
EUR/USD 0.0012 1.2187
JPY/USD -0.26 108.96
10-Year Note -0.02 1.661%
Sector News Breakdown
Consumer
Lithia Motors (LAD)11M share Secondary priced at $322.00
Oatly Group (OTLY)376M share IPO priced at $17.00 per ADS
Chipotle Mexican Grill (CMG) upgraded to Buy from Neutral with a price target of $1,700, up from $1,575 at UBS
Copart Inc. (CPRT) Q3 EPS $1.09 vs. est. $0.80; Q3 revs $733.9M vs. est. $629.6M; Q3 revenue, gross profit, and net income were $733.9 million, $381.3 million, and $286.8 million, respectively
L Brands (LB) Q1 adj EPS $1.25 vs. est. $1.21; q1 revs $3.02B vs. est. $3.01B; guides Q2 EPS $0.80-$1.00 vs. est. $0.76; nit providing yearly guidance; appoints CFOโs for Bath & Body Works and Victoria Secret standalone businesses; Victoriaโs Secret total comparable sales for q1 ended May 1, 2021 increased 9% YoY; Q1 L Brands Stores & direct comp +21% vs. +4% Yoy
Hormel Foods (HRL) Q1 EPS 42c vs. est. 41c; Q1 sales $2.61B vs. erst. $2.41B
Shoe Carnival (SCVL) 1Q EPS $3.02 vs. est. $1.40 on sales $328.5Mm vs. est. $274.4Mm; guides 2Q sales $268-278Mm vs. est. $281.9Mm, sees 2Q EPS $1.00-1.20 vs. est. $0.94; says plans to modernize about 100 stores by May 2022 with goal of modernizing 2/3 of store fleet in next 3-5 years; will continue to evaluate repurchase of shares during remainder of 2021; not providing 2H21 guide at this time
Energy, Industrials and Materials
Ingersoll-Rand (IR) upgraded to Buy from Hold at Deutsche Bank and raise tgt to $54 from $50 noting it is the third worst performer in the MI/EE group year-to-date, and sees the current level as an optimal entry point into a very high quality
Canadian Solar (CSIQ) Q1 EPS 36c vs. est. 41c; Q1 revs $1.09B vs. est. $1.05B; Q1 total module shipments 3,139 MW, up 42% YoY and 5% quarter-over-quarter increase; of the total, 267 MW was shipped to the companyโs own utility-scale solar power projects; sees Q2 revs $1.4B-$1.5B vs. est. $1.37B
HollyFrontier (HFC) downgraded to Sell from Neutral with a price target of $34, down from $36 at Goldman Sachs
SolarEdge (SEDG) upgraded to Buy from Neutral but cut target to $290 from $312
Sun Country Airlines (SNCY)25M share Secondary priced at $34.50
Triumph Group (TGI) Q4 adj EPS 10c vs. est. 8c; Q4 revs $466.83M vs. est. $436.26M; is not providing guidance for the year
Valaris ltd (VAL) has been awarded a contract of about 45 days with W&T offshore in U.S. Gulf of Mexico for Valaris ju-117
ZTO Express (ZTO) Q1 adj EPS 14c vs est. 15c; Q1 revs $987.9M vs. est. $950.86M
Healthcare
Incyte (INCY) announced that data from the primary analysis of the Phase 2 OPTIC trial will be presented during an oral session at the 2021 American Society of Clinical Oncology (ASCO) Meeting June 4-8
Pfizer Inc. (PFE) and partner BioNTech SE (BNTX) said they have reached a new agreement with the European Commission to supply up to 1.8 billion additional doses of their COVID-19 vaccine; the agreement is to provide 900 million doses initially with an option for the EC to request up an additional 900 million doses
Voyager Therapeutics (VYGR) announces strategic shift and leadership transitions
Y-Mabs (YMAB) enters into exclusive distribution agreement with Adium Pharma S.A. for Danyelzaยฎ (naxitamab-GQGK) and omburtamab in Latin America
Technology, Media & Telecom
Cisco Systems (CSCO) Q3 EPS $0.83 vs. est. $0.82; Q3 revs $12.8B vs. est. $12.56B; sees Q4 rev growth 6%-8% YoY (est. $12.82B); sees Q4 EPS $0.81-$0.83 vs. est. $0.85; Continued momentum in transforming business to software and subscriptions: 81% of software revenue sold as a subscription, up from 76% last quarter
Waymo is talking to outside investors about raising as much as $4 billion in additional capital to fuel its self-driving efforts. And the company has discussed plans to eventually list publicly, spinning out from its parent Alphabet Inc. (GOOGL), according to people familiar with the plans, Bloomberg reported https://bloom.bg/2Sas0Wk
Keysight Technologies (KEYS) 2Q adj EPS $1.44 vs. est. $1.34 on revs $1.22B vs. est. $1.21B; guides 3Q revs $1.205-1.225B vs. est. $1.2B, guides 3Q adj EPS $1.39-1.45 vs. est. $1.38
Synopsys (SNPS) Q2 adj EPS $1.70 vs. est. $1.52; q2 revs $1.024B vs. est. $988.7M; said market demand is strong, and we see a new wave of growth on the horizon, driven by an increasing need for highly complex, connected, specialized, and secure chips and systems; raises FY21 non-GAAP EPS view to $6.38-$6.45 from $6.23-$6.30 and boosts FY21 revenue view to $4.04B-$4.09B from $4.0B-$4.05B, consensus $4.03B
Silicon Labs (SLAB) to buy back up to $150M shares
ViacomCBS (VIAC) upgraded to Buy from Neutral with a price target of $53, up from $38 at Bank America
Procore (PCOR)47M share IPO priced at $67.00
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