Morning Preview: April 06, 2021

Early Look

Tuesday, April 6, 2021









S&P 500










U.S. futures are looking modestly lower, pulling back after the three major U.S. stock averages climbed on Monday as the service sector showed stronger-than-expected gains in March and nonfarm payrolls came in well above consensus and bringing the unemployment rate down to 6%. The Dow Jones Industrial Average, Dow Transports, Philly Semiconductor index (SOX) and S&P 500 index all ended the day at new all-time highs, a common occurrence for 2021 as investor optimism remains high behind vaccine rollouts, several government stimulus measures and a dovish Fed which keeps rates at record lows despite a surging economy. The March ISM Service Index increased to 63.7%, beating the 58.6% consensus and its highest level in the index’s history (which started in 1997). The March PMI Services Index hit 60.4 vs. 60.0 consensus and up from 59.8 in February, signaling its fastest growth since July 2014. Oil prices are looking to rebound after prices dropped over 4% on Monday, prompting a decline in energy stocks. Mega cap tech also a bight spot as shares of Alphabet rose 4%, Tesla gained 4.4% after strong deliveries in Q1, Microsoft up 2.8%, Facebook up 3.4%, and Apple was also higher. Overnight in Asian markets, The Nikkei Index dropped -392 points to 29,696, the Shanghai Index slipped -1 point to 3,482 and the Hang Seng Index was closed. In Europe, the German DAX is higher by over 140 points to 15,250, while the FTSE 100 rises over 75 points to 6,815.

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 58.04 points, or 1.44%, to 4,077.91

·     The Dow Jones Industrial Average rose 373.98 points, or 1.13%, to 33,527.19

·     The Nasdaq Composite spiked 225.49 points, or 1.67%, to 13,705.59

·     The Russell 2000 Index advanced 10.98 points, or 0.49% to 2,264.89


Events Calendar for Today

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     10:00 AM EST    JOLTs Job openings for February

·     4:30 PM ET         API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: LNN, PAYX

·     Earnings After the Close: SGH


Other Key Events:

·     EnerCom 20201 Virtual Conference, 4/6-4/7

·     Mizuho Healthcare REIT conference (one-day)

·     Piper Private MedTech Symposium (virtual), 4/6-4/7





















10-Year Note





Energy, Industrials and Materials

·     Bonanza Creek Energy, Inc. (BCEI) announced 2021 guidance; total 2021 annual capital expenditures are expected to be between $150 and $170 million; 2Q-4Q 2021 production guidance of 40.0 to 44.0 thousand barrels of oil equivalent per day; 2Q-4Q 2021 oil production guidance of 48% to 52% of BOE volumes

·     Phillips 66 (PSX) said it sees Q1 loss $865M-$680M; said severe winter storms had significant impacts on company’s operations in central and gulf coast regions

·     Chevron (CVX) downgraded to Neutral from Buy at Goldman Sachs

·     Greenbrier (GBX) Q2 EPS loss (28c) vs. est. loss (37c); Q2 revenue $295.62M vs. est. $386.58M; new railcar orders for 3,800 units valued at over $440M during the quarter; Q2 deliveries 2,100 units, a 1.8x book-to-bill; said expects second half of FY21 to be stronger than first half

·     Freeport McMoRan (FCX) upgraded to Outperform from Market Perform at Raymond James

·     Patterson-UTI Energy (PTEN) reports an average of 70 drilling rigs operating for the month of March, 2021; and for the three months ended March 31, 2021, the company had an average of 69 drilling rigs operating



·     Credit Suisse (CS) announced several high-level staff departures and cut its dividends and bonuses in the wake of a $4.7B hit from the Archegos Capital Management saga and said it now expects Q1 pre-tax loss of around CHF900M ($960.4M).

·     Credit Suisse (CS) sells $2.3 Billion of Stocks tied to Archegos (more blocks in FTCH, VIAC, VIPS) according to Bloomberg – said Credit Suisse continues to unwind positions tied to the Archegos Capital blowup, talk is that it could run into billions of dollars’ worth of losses for them.

·     Ares Management (ARES) announces offering of 9.5M shares of Class A common stock

·     Duck Creek Technologies (DCT) Q2 EPS 1c vs. est. loss (5c); Q2 revenue $62.7M vs. est. $59.2M; Subscription revenue was $30.6 million, an increase of 51%; services revenue was $22.6 million, a decrease of 8%; license revenue was $3.6 million, an increase of 61%; and maintenance revenue was $5.9 million, an increase of 1%; sees Q3 revs $62.5M-$64.5M vs. est. $61.8M; sees 2021 revs $250M-4254.5M vs. est. $249.4M; sees 2021 adj Ebitda $6.5M-$8.0M



·     Illumina (ILMN) said it sees Q1 revenue about $1.085B vs. est. $925.7M; expects YoY rev growth in the range of 25%-28% for FY21 (prior guidance given on 2/11 earnings was 17%-20%)

·     iCAD (ICAD) reports preliminary Q1 revenue $8.1M vs. est. $7.89M; unaudited cash and cash equivalents as of March 31, 2021 were approximately $46.9M, which includes proceeds of the public offering closed in March

·     Novavax (NVAX) announced the initiation of crossover arms in two ongoing clinical trials of NVX-CoV2373, the company’s COVID-19 vaccine candidate; planning to expand trial to include pediatric and adolescent arms, which are also expected to begin in Q2

·     Turning Point Therapeutics (TPTX) reported initial clinical data from the ongoing Phase 1/2 SWORD-1 study of its RET inhibitor drug candidate, TPX-0046; initial data from the Phase 1 dose finding portion of the study showed preliminary clinical activity, including objective responses and a generally well-tolerated safety profile

·     Catalent (CTLT) is expanding its production of Moderna’s (MRNA) Covid-19 shot under an agreement that will nearly double the vaccine output at the Bloomington, Indiana, plant this month to about 400 vials a minute and help fill an additional 80 million vials a year – WSJ reports

·     SeaSpine Holdings (SPNE) said it sees Q1 revenue in the range of $41.5M-42.0M vs. est. $39.22M; sees FY21 revenue to be in the range of $193M-$198M vs. est. $185.77M; said guidance does not include the pending acquisition of 7D Surgical.


Technology, Media & Telecom

· Inc.’s (AMZN) share of the U.S. digital ad market grew to 10.3% last year from 7.8% in 2019, according to a new report from research firm eMarketer; Amazon’s U.S. ad revenue last year grew to $15.73 billion, up 52.5% from 2019, eMarketer estimates.

·     Verint (VRNT) announces $250M convertible senior notes offering

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Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.