Early Look

Tuesday, June 8, 2021

Futures	Up/Down	%	Last
Dow	-55.00	0.16%	34,561
S&P 500	-0.25	0.00%	4,225
Nasdaq	26.50	0.19%	13,831

 

 

U.S. futures slip after several Internet websites went down this morning including New York Times, Reddit, Amazon.com Web Services (though many of them are starting to come back now). Futures dropped when it first appeared it was a potential cybersecurity breach but CNBC reported that Fastly (FSLY) was down and maybe the reason for some of the outages, though still unclear at this point to what the direct driver is of the website outages. Fastly did say it is “investigating potential impact to performance with our CDN services,” on its service page. Prior to the Internet outages, U.S. futures weren’t doing very much, trading mixed to down slightly prior with Treasury yields lower (10-yr at 1.55%), along with a slide in oil prices and cryptocurrency (Bitcoin at 33K). U.S. equity futures were mixed, as inflation concerns continued to play on investors. Bitcoin fell, with some analysts suggesting the move may relate to the display of government control in the cryptocurrency space as the U.S recovered some of the Colonial Pipeline ransom. Stitch Fix and Marvell Technology gained following positive earnings results. Stocks finished mixed on Monday as the S&P 500 and Dow Jones Industrials finished with modest losses while the tech heavy Nasdaq Composite and Russell 2000 outperformed, paced by gains in the biotech sector as Biogen’s (BIIB) FDA approval for its Alzheimer’s drug boosted optimism about futures FDA decisions on other drugs. In Asian markets, The Nikkei Index fell -55 points to 28,963, the Shanghai Index fell -19 points to 3,580 and the Hang Seng Index slipped -5points to 28,781. In Europe, the German DAX is down over 30 points to 15,640, while the FTSE 100 is up a few points at 7,080.

Market Closing Prices Yesterday

·     The S&P 500 Index slipped -3.37 points, or 0.08%, to 4,226.52

·     The Dow Jones Industrial Average fell -126.15 points, or 0.36%, to 34,630.24

·     The Nasdaq Composite climbed 67.23 points, or 0.49%, to 13,881.72

·     The Russell 2000 Index advanced 32.76 points, or 1.463% to 2,319.18

 

Events Calendar for Today

·     6:00 AM EST      NFIB Small Business Optimism for May

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:30 AM EST      International Trade for April

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     10:00 AM EST    JOLTs Job Openings for April

·     4:30 PM ET         API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: ASO, CHS, JILL, NAV, THO

·     Earnings After the Close: ABM, AMSWA, CASY, CVGW, LMNR, ODC, PATH, STRM

 

Other Key Events:

·     China PPI and CPI data for May

·     American Society of Clinical Oncology (ASCO), 6/4-6/8

·     Baird Global Consumer, Technology & Services Conference 2021 (virtual), 6/8-6/10

·     Deutsche Bank Global Consumer Conference (virtual), 6/7-6/10

·     Goldman Sachs Travel & Leisure Conference 2021 (virtual), 6/7-6/8

·     Goldman Sachs Healthcare Conference (virtual), 6/8-6/10

·     Goldman Sachs 25th Annual European Financials Conference (virtual), 6/8-6/10

·     Jefferies Healthcare Virtual Conference, 6/8-6/10

·     Oppenheimer Virtual Software & Semiconductor Bus Tour, 6/7-6/11

·     REITWeek 2021 Investor Virtual Conference, 6/8-6/10

·     UBS Global Industrials and Transportation Conference, 6/8-6/9

 

 

Macro	Up/Down	Last
Nymex	-0.58	68.65
Brent	-0.60	70.89
Gold	-5.30	1,893.90
EUR/USD	-0.0013	1.2177
JPY/USD	0.17	109.42
10-Year Note	-0.02	1.55%

 

 

World News

·     Germany Jun ZEW Expectations 79.8 vs 86.0 consensus; Current Conditions -9.1 vs -27.8 consensus; Expecting strong recovery for next 6 months

·     Eurozone Q1 GDP: q/q -0.3% vs -0.6% consensus; y/y -1.3% vs -1.8% consensus; Eurozone Q1 Employment Change: -1.8% vs -0.3% consensus

 

Sector News Breakdown

Consumer

·     Chico’s FAS, Inc. (CHS) said it has ongoing conversations with its shareholders, including Barrington, to discuss the Company’s strategy and operating plans and appreciates the input it receives

·     Duckhorn Portfolio (NAPA) 3Q adj EPS $0.17 vs. est. $0.07 on sales $90.4Mm vs. est. $76.1Mm

·     Etsy (ETSY) announces offering of $1B of convertible senior notes

·     Keurig Dr Pepper (KDP) announces offering of 28M shares of common stock for Mondelez

·     Leslie’s Inc (LESL) files for offering of 24.5M shares of common stock by the selling stockholders

·     PLBY Group (PLBY) files to sell 4M shares of common stock

·     Stitch Fix (SFIX) 3Q EPS loss ($0.18) vs. est. ($0.27) on revs $535.6Mm vs. est. $510.6Mm; qtrly active clients +20% to 4.1Mm; guides FY revs $2.07-2.08B vs. est. $2.04B, sees FY adj EBITDA $25-30Mm

·     Superior Industries (SUP) files $150M mixed securities shelf

·     Vail Resorts (MTN) 3Q EPS $6.72 vs. est. $6.54 on revs $889.1Mm vs. est. $882.1Mm; guides FY EBITDA $530-570Mm vs. est. $559.9Mm, sees FY net income $93-139Mm vs. est. $126.8Mm; Q3 total skier visits 7.19 million

·     Wolverine Worldwide (WWW) sees FY21 revs $2.24B-$2.3B vs. est. $2.28B; says 2q performance accelerated, fueled by strength of largest brands and product innovation

·     Tesla (TSLA) sold 33,463 China-made electric cars in May, including exports, a 29% jump from April, according to data from the China Passenger Car Association. China’s new electric vehicle sales surged 177% to 185,000 in May; overall passenger vehicle sales, however, rose just 1.1% to 1.66 million

·     Thor Industries (THO) Q3 EPS $3.29 vs. est. $2.34; Q3 sales $3.46B vs. est. $3.01B; revenues up 105.7%, gross profit margin improved by 240 basis points and earnings per share up 665.1% for the third quarter of fiscal 2021

 

Energy, Industrials and Materials

·     Air Lease Corporation (AL) announces delivery of new airbus a350-900 aircraft to world2fly

·     Clean Energy Fuels Corp. (CLNE) files for offering of up to $100 mln of shares of common stock

·     REV Group (REVG) 2Q adj EPS $0.39 vs. est. $0.20 on revs $643.6Mm vs. est. $636.2Mm; reinstates qtrly cash dividend in 2Q at $0.05/share; backs FY21 rev view $2.45B-$2.6B vs. est. $2.5B; boosts FY21 adjusted EBITDA view to $145M-$160M from $125M-$135M

·     Southwest Airlines (LUV) said May operating rev performed in line with co’s expectations, and represented a sequential increase compared with April 2021; based on current bookings, co expect sequential improvement in operating revenues in June 2021 compared with May 2021; said May 2021 business revenues were down approximately 77 percent compared with May 2019

 

Financials

·     Costar Group (CSGP) announces a ten-for-one stock split

·     Cryptocurrency-exposed companies like Marathon Digital (MARA) and Coinbase (COIN) slide with Bitcoin and other digital tokens falling; Bitcoin prices down around the $33,000 level and Ethereum around $2,500

·     Pzena Investment Management Inc. (PZN) preliminary total assets under management as of May 31, 2021 of $53.6 bln

·     SelectQuote (SLQT) will replace Cooper Tire & Rubber Co. (CTB) in the S&P SmallCap 600 effective prior to the opening of trading on Thursday, June 10

·     UDR (UDR) raises guidance ranges as a result of continued strength in operating fundamentals and accretive external growth; sees Q2 FFO and AFFO per share to be at the high-end of its previously-provided guidance range of $0.47-$0.49

·     W.P. Carey (WPC) 5.25M share Spot Secondary priced at $75.30

 

Healthcare

·     Ironwood Pharmaceuticals (IRWD) announces the appointment of Thomas McCourt, who has served as president and interim chief executive officer since March 12, 2021, as the company’s permanent chief executive officer

·     HealthEquity (HQY) Q1 adj EPS $0.38 vs. est. $0.32; Q1 revs $184.2M vs. est. $180.8M; sees year revs $755M-$765M vs. est. $755.5M

 

Technology, Media & Telecom

·     Coupa Software (COUP) 1Q adj EPS $0.07 vs. est. ($0.19) on revs $167Mm vs. est. $151.1Mm; guides 2Q revs $162-163Mm vs. est. $161.6Mm, sees 2Q adj EPS loss $0.05 to $0.07 vs. est. ($0.09); guides FY revs $681-684Mm vs. est. $679.2Mm, sees FY adj EPS loss $0.14 to $0.20 vs. est. ($0.25)

·     Jamf Holding Corp. (JAMF) files for offering of up to 8.5M shares of common stock by selling shareholders

·     Marvell Technology (MRVL) Q1 adj EPS $0.29 vs. est. $0.27; Q1 revs $832M vs. est. $804.21M; Q1 64.3% non-GAAP gross margin; sees Q2 adj EPS 31c, plus/minus 3c vs. est. 30c; sees Q2 revs $1.065B plus/minus 3% vs. est. $1.04B; says non-GAAP gross margin is expected to be approximately 64%

·     Zhangmen Education (ZME) 3.623M share IPO priced at $11.50