Early Look

Tuesday, June 15, 2021

Futures	Up/Down	%	Last
Dow	-3.00	0.01%	34,272
S&P 500	2.25	0.05%	4,248
Nasdaq	10.50	0.07%	14,127

 

 

Another day, another record for the S&P 500, with futures looking to a slightly higher open ahead of a key round of economic data (monthly retail sales at 8:30 AM along with the producer prices index (PPI) inflation reading, which follows the “hotter” CPI report last week) while investors await results of the two-day FOMC meeting tomorrow afternoon. The central bank will make an announcement on interest rates Wednesday, followed by a news conference from Fed Chairman Jerome Powell. Stocks in the U.S. were slightly higher Monday in a listless, tight trading range all day prior to a surge in the final minutes of trading that took most major averages higher, allowing the S&P 500 and Nasdaq to close at record highs led by gains in large cap tech. In Asian markets, The Nikkei Index rose 279 points to 29,441, the Shanghai Index fell -33 points to 3,556, and the Hang Seng Index dropped 203 points to 28,638. In Europe, the German DAX is higher by around 70 points to 15,740, while the FTSE 100 is up about 20 points to 7,165. It should be a relatively quiet day again with all eyes on tomorrows FOMC meeting.

Events Calendar for Today

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:30 AM EST      Producer Price Index (PPI) MoM for May…est. 0.6%

·     8:30 AM EST      Producer Price Index (PPI) YoY for May…est. 6.3%

·     8:30 AM EST      PPI Ex: Food & Energy (core) MoM for May…est. 0.5%

·     8:30 AM EST      PPI Ex: Food & Energy (core) YoY for May…est. 4.8%

·     8:30 AM EST      Advance Retail Sales MoM for May…est. (-0.7%)

·     8:30 AM EST      Retail Sales Less Autos MoM for May…est. 0.2%

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     9:15 AM EST      Industrial Production MoM for May…est. 0.6%

·     9:15 AM EST      Capacity Utilization for May…est. 75.1%

·     10:00 AM EST    Business Inventories MoM for April…est. (-0.1%)

·     10:00 AM EST    NAHB Housing Market Index for June…est. 83

·     4:00 AM EST      Net Long-term TIC Flows for April

·     4:30 PM ET         API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: KPLT

·     Earnings After the Close: ATEX, HNST, HRB, LZB, ORCL, STEP, VOLT

 

Other Key Events:

·     Citigroup European Healthcare Conference (virtual), 6/14-6/16

·     European Hematology Association (EHA) Virtual Meeting, 6/9-6/17

·     FBN Securities Valley tech Tour (virtual), 6/14-6/15

·     Northland Customer Engagement SaaS Conference (virtual), 6/15-6/16

·     Oppenheimer 21st Annual Consumer Growth and E-Commerce Conference (virtual), 6/15-6/16

·     China Retail Sales for May

 

Market Closing Prices Yesterday

·     The S&P 500 Index gained 7.71 points, or 0.18%, to 4,255.15

·     The Dow Jones Industrial Average fell -85.85 points, or 0.25%, to 34,393.75

·     The Nasdaq Composite jumped 104.72 points, or 0.74%, to 14,174.14

·     The Russell 2000 Index declined -9.66 points, or 0.41% to 2,326.15

 

 

Macro	Up/Down	Last
Nymex	0.46	71.34
Brent	0.47	73.33
Gold	-1.45	1,864.75
EUR/USD	0.0005	1.2125
JPY/USD	-0.03	110.04
10-Year Note	-0.014	1.487%

 

 

World News

·     Germany May CPI: m/m 0.5% in line; y/y 2.5% in line; HICP m/m 0.3% in line; y/y 2.4% in line

·     France May CPI: m/m 0.3% in line; y/y 1.4% in line; HICP m/m 0.3% vs 0.4% cons; y/y 1.8% in line

·     Italy May CPI: m/m 0.0 in line; y/y 1.3% in line; HICP m/m -0.1% vs 0.0% cons; y/y 1.2% vs 1.3% consensus

 

Sector News Breakdown

Consumer

·     Kohl’s (KSS) said it sees FY sales +mid-high teens vs 2020, below the consensus of up +20.85%

·     Vroom, Inc. (VRM) announces proposed convertible senior notes offering/to offer $500 mln of convertible senior notes due 2026

·     Spirit Airlines (SAVE) estimates its load factor for Q2 will be about 84.0%, total operating expenses, excluding special items, for q2 2021 are tracking towards better end of co’s initial guidance; now expects its Ebitda margin, excluding special items, for q2 of 2021 to be modestly positive; expects that air travel demand will continue to gradually recover in 2021

·     H&M shares slipped after Q2 sales were lower than expected, hurt by China and European restrictions; Q2 sales were up 62% year on year to SEK 46.51 bln ($5.59 bln), but still down 19% – when compared with two years earlier

·     Ford (F) says production of 2021 Ford Bronco is underway at the Michigan assembly plant

 

Energy, Industrials and Materials

·     FedEx Corp (FDX) increased quarterly cash dividend by $0.10 per share, or 15%

·     Mosaic (MOS) announced its May 2021 sales revenue and volumes May Potash sales volumes in thousands of tons 891 versus 810 in May of last year

·     Fastenal (FAST) downgraded to Underweight from Equal Weight at Morgan Stanley

 

Financials

·     Discover Financial Services (DFS) credit card delinquency rate 1.01% at may end vs 1.12% at April end; credit card charge-off rate 1.78% at may end vs 1.54% at April end

·     Capital One Financial (COF) May domestic credit card net charge-offs rate 2.33 % vs 2.40% in April; delinquencies rate for auto 3.14% at May end vs 2.74% at April end

·     Blucora (BCOR) raises Q2 non-GAAP EPS view to $1.12-$1.21 from $0.94-$1.11 and ups revenue view to $250.0-$254.5M from $238M-$249M (vs. est. $243.4M)

·     MicroStrategy (MSTR) has filed a registration statement with the SEC for the potential offering of its class A common shares

·     Principal Financial (PFG) downgraded to Neutral from Overweight at Piper Sandler

·     Arbor Realty (ABR) 6M share Spot Secondary priced at $18.65

·     Alexandria Real Estate (ARE) 7M share Spot Secondary priced at $184.00

·     Ellington Residential (EARN) 3.25M share Spot Secondary priced at $13.20

·     T. Rowe Price (TROW) declares special cash dividend of $3.00 per share

 

Healthcare

·     Biogen (BIIB) announces topline results from phase 3 gene therapy study in Choroideremia; says phase 3-star study did not meet primary or key secondary endpoints

·     Sage Therapeutics (SAGE) and Biogen (BIIB) announce positive pivotal phase 3 results for zuranolone, an investigational two-week, once-daily therapeutic being evaluated for major depressive disorder; rapid onset of treatment effect was seen in hamd-17 results at days 3, 8, and 12

·     AstraZeneca (AZN) announces that its antibody cocktail, AZD7442, didn’t achieve a statistically significant reduction in the risk of symptomatic COVID-19 after exposure to the virus, failing to meet primary endpoint of the STORM CHASER trial

·     Ampio Pharmaceuticals (AMPE) receives approval to expand enrollment of its ap-019 phase ii study to India; phase ii study will utilize inhaled Ampion to treat those suffering from respiratory distress due to covid-19

·     NanoString Technologies (NSTG) and the Parker Institute for Cancer Immunotherapy (PICI) are collaborating on an expansive molecular characterization project for cellular therapies

·     Novavax (NVAX) announces positive results from first study of influenza vaccine and covid-19 vaccine candidate administered simultaneously and that study demonstrated no early safety concerns

·     C4 Therapeutics (CCCC) files to sell 4.25M shares of common stock

·     Rapt Therapeutics (RAPT) offers to sell $125M in common stock

 

Technology, Media & Telecom

·     PING Identity Holding (PING) files prospectus related to offering of 32.7 mln shares of common stock by selling stockholders

·     Vimeo (VMEO) says May avg. revenue per user up 18% and May total revenue up 42%

·     Applied Materials (AMAT) files debt securities shelf