Early Look

Wednesday, March 10, 2021

Futures	Up/Down	%	Last
Dow	58.00	0.18%	31,869
S&P 500	-4.25	0.12%	3,868
Nasdaq	-62.50	0.49%	12,726

 

 

Stock futures in the U.S. are looking mixed after finishing higher Tuesday, though gains faltered in the final minutes of trading, as receding bond yields helped to send the tech-heavy Nasdaq Composite to its best day since early November after it tumbled into correction territory on Monday. Nasdaq futures are looking lower by about -0.5% after surging 3.7% to 13,073 behind massive gains in big tech like TSLA, AAPL, and AMZN, while the Dow looks higher. Markets have been volatile surrounding concerns whether additional stimulus from Congress will lead to inflation or if high-growth stocks remain expensive. Investors will be watching today’s 10-year auction for clues to where yields may be headed, as well as the latest Consumer Price Index data. Congress is also expected to pass the latest economic stimulus plan for the amount of $1.9 trillion, which includes $1,400 payments for most Americans, expanded unemployment insurance, funding for schools and public health, and state and local government aid. In Asian markets, The Nikkei Index inches higher 8 points to 29,036, the Shanghai Index was little changed at 3,357 and the Hang Seng Index rose 134 points to 28,907. In Europe, the German DAX is higher by about 30-points to 14,470, while the FTSE 100 dips -20 points to 6,710.

 

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 54.09 points, or 1.42%, to 3,875.44

·     The Dow Jones Industrial Average rose 30.30 points, or 0.10%, to 31,832.74

·     The Nasdaq Composite spiked 464.66 points, or 3.69%, to 13,073.82

·     The Russell 2000 Index advanced 42.07 points, or 1.91% to 2,245.06

 

Events Calendar for Today

·     7:00 AM ET         MBA Mortgage Applications Data

·     8:30 AM EST      Consumer Price Index (CPI) MoM for Feb…est. 0.4%

·     8:30 AM EST      CPI Ex: Food & Energy MoM for Feb…est. 1.7%

·     8:30 AM EST      Consumer Price Index (CPI) YoY for Feb…est. 0.2%

·     8:30 AM EST      CPI Ex: Food & Energy YoY for Feb…est. 1.4%

·     10:30 AM ET      Weekly DOE Inventory Data

·     2:00 PM EST       Federal budget for February

 

Earnings Calendar:

·     Earnings Before the Open: BBW, BPTH, CPB, CVGI, DRVN, EXPR, GSKY, HBIO, IMXI, LCUT, MPLN, REVG, SGRY, TUP, UNFI, VRA

·     Earnings After the Close: AMC, BMBL, CDXC, CLDR, DMAC, FLXN, FOSL, FTK, HARP, HCHC, KIDS, LC, LMNR, ORCL, SKLZ, SUMO, TALO, UMH

 

Other Key Events:

·     Barclay’s Global Healthcare Conference (virtual), 3/9-3/11

·     Citigroup Global Property Conference (virtual), 3/8-3/11

·     Deutsche Bank Internet and Telecom Conference (virtual), 3/8-3/10

·     HC Wainwright Global Life Sciences Conference (virtual), 3/9-3/10

·     Truist Securities Technology, Internet & Services Conference, 3/9-3/10

·     UBS Global Consumer & Retail Conference (virtual), 3/9-3/10

·     Wolfe FinTech Forum (virtual), 3/9-3/11

 

 

Macro	Up/Down	Last
Nymex	0.24	64.25
Brent	0.13	67.65
Gold	-4.20	1,711.90
EUR/USD	-0.001	1.1891
JPY/USD	0.31	108.79
10-Year Note	+0.019	1.563%

 

 

World News

·     China’s factory gate inflation accelerated to the fastest pace since 2018 in February, official data showed on Wednesday. The producer price index (PPI) rose 1.7% from a year earlier, the National Bureau of Statistics said compared with the median forecast for a 1.5% rise. The consumer price index fell 0.2% from a year earlier, vs. an expected 0.4% fall

·     China’s exports in February grew at a record 154.9% in dollar terms from a year earlier, when the country was in virtual shutdown during the height of the COVID-19 pandemic. But the country’s purchasing manager’s index (PMI), which gauges factory activity, expanded by the slowest pace since May. (Full Story)

 

Sector News Breakdown

Consumer

·     American Public Education (APEI) Q4 EPS 47c vs. est. 41c; Q4 revenue $85.9M vs. est. $84.7M; sees Q1 EPS 39c-44c vs. est. 22c

·     Everi Holdings (EVRI) Q4 EPS 1c vs. est. 0c; Q4 revenue $119.6M vs. est. $115.1M; expects 2021 q1 operating and financial results to exceed 2020 q1 results

·     Hersha Hospitality (HT) says Feb revenues exceeded internal forecasts by over 20%

·     Sonos (SONO) updates financial targets for FY24 as part of an investor day event today saying it aims for FY24 revenue of $2.25B, representing a 13% CAGR based on the midpoint of its fiscal 2021 guidance and ahead of its prior long-term target of 10% CAGR

·     IMAX (IMAX), IMAX China, and Broadway inks agreement of four new IMAX theaters across various locations in downtown Shanghai.

 

Energy

·     The American Petroleum Institute (API) showed a build of 12.8M barrels of oil for the week ending March 5; gasoline inventories show a draw of 8.5M barrels, distillate inventories show a draw of 4.8M barrels and Cushing inventories show a build of 295K barrels.

·     Ballard Power Systems (BLDP) said that Canadian Pacific (CP) will employ Ballard fuel cell modules for CP’s pioneering Hydrogen Locomotive Program. The modules will provide a total of 1.2 megawatts of electricity to power the locomotive.

·     Clean Energy (CLNE) Q4 adj EPS loss (1c) vs. est. flat and Q4 revenue $75M vs. est. $71.3M; delivered 96.0 million gallons in Q4 of 2020, a 7% decrease from 103.3 million in the fourth quarter of 2019. This decrease was principally from the continuing effects of COVID-19, primarily impacting the airports and public transit customer markets

 

Financials

·     AllianceBernstein L.P. (AB) prelim assets under management increased to $688 billion during February 2021 from $683 billion at the end of January. Firmwide net inflows and market appreciation drove the 0.7% increase. By channel, net inflows to Private Wealth and Retail were partially offset by net outflows from Institutions.

·     Artisan Partners Asset Management Inc. (APAM) assets under management as of February 28, 2021 totaled $161.5 billion. Separate accounts accounted for $83.2 billion of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $78.3 billion.

·     Franklin Resources (BEN) reports preliminary AUM $1.5T as of February 28 compared to $1.49T at January 31. This month’s increase in AUM primarily reflected the positive impact of markets and long-term net inflows, partially offset by cash management net outflows.

·     H&R Block (HRB) Q3 adj EPS loss ($1.17) vs. est. loss ($1.55); Q3 revenue $308M vs. est. $470.8M; reiterates its revenue growth and earnings outlook for the fiscal year; said q3 revenue was impacted by a delayed start to the U.S. tax season and a later than usual opening of IRS e-file resulting in a decline of $211 million, or 41%, to $308 million

·     Invesco Ltd. (IVZ) reported preliminary month-end assets under management (AUM) of $1,391.5 billion, an increase of 1.8% versus previous month-end. Total net inflows were $11.2 billion. The firm achieved net long-term inflows of $5.3 billion this month. Non-management fee earning net inflows were $2.7 billion and money market net inflows were $3.2 billion.

·     Open Lending (LPRO) Q4 EPS 12c (in-line w ests) and Q4 revenue $39.63M vs. est. $34.03M; facilitated 26,822 certified loans during Q4, compared to 22,559 certified loans in Q4 of 2019; sees FY21 revenue view $184M-$234M vs. est. $216.36M and sees FY21 adjusted EBITDA $125M-$168M

 

Healthcare

·     BioNTech SE (BNTX) and Pfizer (PFE) said the European Commission enters into a deal with the two companies for supply of additional 4 mln COVID-19 vaccine doses to be delivered this month; PFE had previously committed to supply 500 mln doses to EU by end of 2021

·     MediciNova (MNOV) shares rise over 60%; said it partnered with the Biomedical Advanced Research and Development Authority to repurpose its candidate MN-166 as a potential medical countermeasure (MCM) against chlorine gas-induced lung damage

·     Jounce Therapeutics (JNCE) 5M share Spot Secondary priced at $11.25

·     Xenon Pharmaceuticals (XENE) 4.32M share Spot Secondary priced at $18.50

·     Curaleaf (CURLF) is expanding its cannabis empire internationally through a $286 million deal to acquire European cannabis company Emmac Life Sciences Limited.

·     Array Technologies (ARRY) Q4 adj EPS 8c vs. est. 6c; Q4 revenue $180.57M vs. est. $164M; guides FY21 revs $1.025-1.125B vs. est. $989.9Mm

·     CytoSorbents (CTSO) Q4 revenue $12.0M vs. est. $10.95M; believe that we have sufficient cash to fund our operations and clinical trial activities well into future; expect our Q1 2021 product sales will exceed product sales reported in Q1 of 2020

·     Humana (HUM) files automatic mixed securities shelf

·     Inari Medical (NARI) 4Q EPS $0.14 vs. est. $0.01 on revs $48.6Mm vs. est. $41.1Mm; guides 1Q revs $54-56Mm vs. est. $41.7Mm; sees FY revs $225-235Mm vs. est. $181.5Mm

 

Industrials & Materials

·     ABM Industries (ABM) 1Q adj EPS $1.01 vs. est. $0.59 on revs $1.49B vs. est. $1.48B; guides FY21 adj EPS $3.00-3.25 vs. est. $2.42

·     AeroVironment (AVAV) Q3 EPS 14c vs. est. 0c; Q3 revenue $78.8M vs. est. $75.46M; sees FY EPS $1.38-$1.58 from prior $1.28-$1.48 and guides year revs $400M-$410M, from prior $390.0M-$410M; sees FY22 EPS $2.50-$2.70 vs. est. $2.59 and FY 22 revs $560M-$580M; its wholly-owned subsidiary Arcturus UAV awarded approximately $7 million task order for U.S. special operations command mid-endurance unmanned aircraft systems program

·     CAE (CAE) 9.09M share Secondary priced at $27.50

 

Technology, Media & Telecom

·     Coherent Inc. (COHR) announced an amended buyout agreement with Lumentum Holdings Inc. (LITE), in which the value of the cash-and-stock deal increases to $6.6 billion from about $5.7 billion; the terms come after II-VI Inc.’s (IIVI) unsolicited bid, valued at about $6.4 billion, or $260 a share was deemed by Coherent earlier this week to be “superior” to the original deal. Under terms of the revised bid, Coherent shareholders will receive $175 in cash and 1.0109 Lumentum shares for each Coherent share they own ($261.62 per share) https://on.mktw.net/2N6EhsU

·     Roblox Corp. (RBLX) gets a price of $45 a share from the New York Stock Exchange late Tuesday as the company prepares to go public through a direct listing on Wednesday.

·     TSMC (TSM) announced its net revenues for February 2021: On a consolidated basis, revenues for February 2021 were approximately NT$106.53B, a decrease of 15.9% from January 2021 and an increase of 14.1% from February 2020

·     ChipMOS (IMOS) reports February revenue of $70.2M (-9.5% MoM; and +3.7% YoY)

·     Avid Technology (AVID) Q4 EPS 16c vs. est. 32c; Q4 revenue $104.3M vs. est. $104.99M; at end of 2020, the company had $231.3M in revenue backlog expected to be recognized during the next 12 months, up 16% YoY; sees Q1 EPS 17c-24c vs. est. 20c; sees Q1 revenue $88M-$94M vs. est. $93.69M; sees Q1 adjusted EBITDA $12.2M-$15.8M.

·     BlackLine (BL) announces $1B convertible senior notes offering

·     MongoDB, Inc. (MDB) Q4 adj EPS loss (33c) vs. est. loss (39c); Q4 revenue $171M vs. est. $156.97M; sees Q1 adj EPS loss (39c)-(36c) vs. est. loss (27c); sees Q1 revenue $167M-$170M vs. est. $166.78M; sees FY22 adj EPS loss ($1.55)-($1.39) vs. est. loss (98c) on revs $745M-$765M vs. est. $737.42M

·     Qualtrics Int’l (XM) 4Q adj EPS ($0.02) vs. est. ($0.12) on revs $213.6Mm vs. est. $216Mm; guides 1Q adj EPS loss $0.02-0.04 vs. est. ($0.04), sees 1Q revs $226-228Mm vs. est. $223Mm; guides FY EPS loss $0.16-0.18 vs. est. ($0.19), sees FY revs $950-954Mm vs. est. $943Mm