Tuesday, September 14, 2021
Futures Up/Down % Last
Dow 39.00 0.11% 34,793
S&P 500 4.25 0.11% 4,464
Nasdaq 4.50 0.03% 15,434
U.S futures are looking flattish to slightly higher ahead of key inflation data later this morning, as the August Consumer Price Index (CPI) is expected to show a MoM increase of +0.4% and YoY rise 5.3% (which would mark a 4th straight month above 5%). The data could set the tone for the rest of the day as the 10-year Treasury yield is up 1.5 bps to 1.339% ahead of the data, while the dollar index is down slightly around 92.60. In Asian markets, The Nikkei Index rose 222 points to 30,670, the Shanghai Index dropped -52 points (1.42%) to settle at 3,662 and the Hang Seng Index declined -311 points (1.21%) to 25,502. In Europe, the German DAX is up about 15 points to 15,720, while the FTSE 100 is down about -20 points to 7,050. On Monday, the S&P snapped its longest losing streak since February (5-days) while the blue-chip Dow Jones Industrial produced its best daily gain since early August as investors bought energy and financial assets to start the week. The Dow closed up by about 262 points, or 0.8%, to 34,870, halting a five-session skid and notching its best point and percentage advance since Aug. 5. The S&P 500 index climbed 10 points, or 0.2%, to around 4,469, also ending a five-session slide. The Nasdaq Composite Index slipped 0.1% at around 15,106, extending its string of declines to four straight sessions, representing the longest such skid since a five-session slump ended July 19. Of note later today, investors await AAPL’s first fall event at 1PM ET / 10AM PT, with expectations for a new iPhone, and updates on other products.
Events Calendar for Today
6:00 AM ET NFIB Small Business Optimism for Aug
7:45 AM ET ICSC Weekly Retail Sales
8:30 AM ET Consumer Price Index (CPI) MoM for Aug…est. +0.4%
8:30 AM ET Consumer Price Index (CPI) YoY for Aug…est. +5.3%
8:30 AM ET CPI Core: Ex: Food & Energy MoM for Aug…est. +0.4%
8:30 AM ET CPI Core: Ex: Food & Energy YoY for Aug…est. +4.2%
8:55 AM ET Johnson/Redbook Weekly Sales
4:30 PM ET API Weekly Inventory Data
Earnings Calendar:
Earnings Before the Open: A LOT, CNM, FCEL, PETM
Earnings After the Close: ASPU, EWCZ, IBEX, SKIL
Other Key Events:
Apple (AAPL) announces product launch event today
China Retail Sales and Industrial Output for Aug
Barclay’s Financial Services Conference (virtual) 2021, 9/13-9/15
BMO Capital 2021 Real Estate Conference (virtual), 9/13-9/14
Citigroup 2021 Global Technology Conference (virtual), 9/13-9/15
Cowen 2nd Annual Health, Wellness & Beauty Summit (virtual), 9/13-9/14
Credit Suisse 34th Annual Basic Materials Conference (virtual), 9/13-9/14
Deutsche Bank 11th Annual Aircraft, Finance & Leasing Conference, 9/13-9/14, in NY
JPMorgan Gaming, Lodging, Restaurant & Leisure Management Forum, 9/13-9/14
Piper Global Technology Conference (virtual), 9/13-9/14
Piper 2021 D.C. Bank Field Trip, 9/13-9/15
Baird Global Healthcare Conference 2021 (virtual), 9/14-9/15
Barclay’s Financial Services Conference (virtual) 2021, 9/13-9/15
HC Wainwright 23rd Annual Global Investment Conference (virtual), 9/13-9/15
Jefferies Software Conference (virtual), 9/14-9/15
Lake Street 5th Annual Best Ideas Growth Conference (virtual), 9/14-9/15
Market Closing Prices Yesterday
The S&P 500 Index gained 10.15 points, or 0.23%, to 4,468.73
The Dow Jones Industrial Average rose 261.91 points, or 0.76%, to 34,869.63
The Nasdaq Composite slipped -9.91 points, or 0.07%, to 15,105.58
The Russell 2000 Index advanced 13.24 points, or 0.59% to 2,240.78
Macro Up/Down Last
Nymex 0.56 71.01
Brent 0.61 74.13
Gold -7.10 1,786.65
EUR/USD -0.0004 1.1807
JPY/USD 0.10 110.09
10-Year Note +0.015 1.338%
World News
UK July Employment Change higher at 183k vs 178k consensus while UK July Unemployment Rate in-line at 4.6%
Japan July Industrial O/P in line fell -1.5% m/m and 13.3% y/y; Japan July Capacity Utilization -3.4% vs 6.2% previous
Sector News Breakdown
Consumer
Herbalife Nutrition ($HLF) cuts Q3 EPS and sales view; cuts FY21 revenue view to 4.5%-8.5% from 8.5%-12.5% and EPS to $4.55-$4.95 from $4.70-$5.10 (est. $4.99) saying they recently observed lower than expected levels of activity amongst its independent distributors that has led to a decrease in expected third quarter and full year net sales
AMZN ($AMZN) has increased its average starting wage in the United States to more than $18 an hour, a ~6% hike, and plans to hire another 125,000 warehouse and transportation workers, according to Reuters
Figs ($FIGS) files to sell 8.83M shares of Class A common stock for holders
Volt information Sciences ($VOLT) 3Q adj EPS $0.05 vs est. $0.04 on revs $217.5Mm vs est. $213Mm
Energy, Industrials, Materials
The Pentagon has awarded Lockheed Martin Corp ($LMT) annualized contracts for 2021 and option years 2022 and 2023, worth up to $6.6 billion to support operations and sustainment of the global F-35 fleet, its F-35 Joint Program Office said
Exelon ($EXC) upgraded to Buy from Neutral at Mizuho and raise tgt to $53 from $47.50
Matrix Service Company ($MTRX) 4Q adj EPS ($0.40) vs est. ($0.03) on revs $174.9Mm vs est. $177.2Mm, backlog as of June 30 was $462.6Mm; says award activity in the first quarter of fiscal 2022 has accelerated and we are expecting increasing awards and improving backlog as we move through the fiscal year
MP Materials ($MP) announces offering of 4M shares of common stock for holders
Financials
Intuit ($INTU) said it would buy email marketing company Mailchimp for about $12 billion in a cash-and-stock deal (confirmed a late day WSJ report that INTU was in works to acquire the company)
AllianceBernstein L.P. ($AB) said preliminary assets under management increased to $761 billion during August 2021 from $748 billion at the end of July. Market appreciation and firmwide net inflows drove the 2% increase. In the month of August, net inflows to Retail and Institutions were partially offset by modest net outflows from Private Wealth.
Discover Financial Services ($DFS) said credit card delinquency rate 0.92% at August end vs 0.93% at July end and credit card charge-off rate 1.14% at August end vs 1.09% at July end
Invesco Ltd. ($IVZ) preliminary month-end assets under management ($AUM) of $1,562.7 billion, an increase of 2.2% versus previous month-end. Total net inflows were $13.6 billion. The firm achieved net long-term inflows of $8.4 billion this month.
Manning & Napier, Inc. ($MN), reported preliminary assets under management as of August 31, 2021 of $22.7 billion, compared with $22.5 billion at July 31, 2021, and $22.3 billion at June 30, 2021.
Opendoor Technologies ($OPEN) announces offering of 28M shares of common stock for holders
Victory Capital Holdings, Inc. ($VCTR) reported assets under management ($AUM) of $164.9 billion as of August 31, 2021.
Life Storage ($LSI)5M share $306M Spot Secondary offering priced at implied $122.40
Healthcare
Incyte ($INCY) announces ruxolitinib cream data accepted for presentation at the 2021 European academy of dermatology and venereology (EADV) virtual congress
KalVista Pharmaceuticals (KALV) announces the lifting of FDA clinical hold for phase 2 trial of KVD824
MaxCyte, Inc. ($MXCT) 2Q EPS ($0.05) vs est. ($0.07) on revs $7.1Mm vs est. $5.7Mm; guides FY revs about $30Mm vs est. $28.2Mm
Akerna ($KERN) will acquire business management software system 365 Cannabis in a $17M deal; Akerna will pay $4M in cash and $13M in stock, with a potential earn-out of $8M. The transaction is expected to close in Q4.
Avantor ($AVTR)83M share Secondary priced at $42.00
Technology, Media & Telecom
Oracle ($ORCL) Q1 adj EPS $1.03 vs. est. $0.97; Q1 revs $9.73B vs. est. $9.77B; Q1 Cloud Services and License Support Revenue $7.37B, Q1 Cloud License And On-Premise License Revenue $813M; Q1 Hardware Revenue $763M and Q1 Services Revenue $781M; Q1 GAAP operating income was up 7% to $3.4 billion, and GAAP operating margin was 35%; Non-GAAP operating income was up 4% to $4.3 billion; sees Q2 EPS $1.09-$1.13 vs. est. $1.08 and sees Q2 revs up 3%-5%
SeaChange Int’l ($SEAC) 2Q adj EPS loss ($0.03) vs est. ($0.09) on revs $6.5Mm vs est. $5Mm
IAC/InterActiveCorp (IAC) said August revenue for ANGI up 21%, DotDash up 29%, search up 67%; said August rev for emerging and other up 33%
Vimeo Inc. ($VMEO) August total rev up 33%, August average revenue per user up 15%
Semiconductor equipment makers Advanced Energy ($AEIS), Applied Materials ($AMAT) and Lam Research ($LRCX) all downgraded to Neutral from Positive at Susquehanna, while the firm upgraded KLA Corp. ($KLAC) to Positive from Neutral at Susquehanna
Sportradar ($SRAD) 19M share IPO priced at $27.00
