Early Look

Friday, March 12, 2021

Futures	Up/Down	%	Last
Dow	-33.00	0.10%	32,335
S&P 500	-22.25	0.57%	3,905
Nasdaq	-219.50	1.68%	12,819

 

 

U.S. futures are pointing lower, led by weakness in the tech heavy Nasdaq, looking down over 1.5% following a spike overnight in global Treasury yields, as the 10-year rises over 8 bps back above the 1.6% level (currently at highs 1.612%). S&P futures are looking lower as well but Dow futures are currently little changed. The sharp spike in yields again renewing inflation fears for investors. Speaking of inflation, monthly producer price index (PPI) data is expected at 8:30 AM, which could improve or worsen the mood for investors. In vaccine news, Novavax (NVAX) shares jump over 20% after U.K. trial showed that it vaccine was 96.4% effective against mild, moderate, and severe disease caused by the original COVID-19 strain. President Biden also said he wants all adults in the U.S. made eligible for vaccines by May 1. The Dow and S&P 500 closed at records on Thursday as tech shares rallied and President Joe Biden signed his coronavirus relief bill a day earlier than expected. Stimulus checks of $1,400 for millions of Americans could begin rolling out as soon as this weekend, according to the White House. In Asian markets, The Nikkei Index jumped 506 points to 29,717, the Shanghai Index rose 16 points to 3,453, and the Hang Seng Index plunged -645 points to 28,739. In Europe, the German DAX is down over 100 points to 14,450, while the FTSE 100 slips -15 points to 6,720. Major averages are coming off a momentous day on Thursday as the Dow Jones Industrial Average, Dow Transports, S&P 500 and Russell 2000 SmallCap all settled at record highs in what has been another stellar week of gains.

 

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 40.53 points, or 1.04%, to 3,939.34

·     The Dow Jones Industrial Average rose 188.57 points, or 0.58%, to 32,485.59

·     The Nasdaq Composite surged 329.84 points, or 2.52%, to 13,398.67

·     The Russell 2000 Index advanced 52.86 points, or 2.31% to 2,338.54

 

Events Calendar for Today

·     8:30 AM EST      Producer Price Index (PPI) MoM for Feb…est. 0.5%

·     8:30 AM EST      PPI Ex: Food & Energy MoM for Feb…est. 27%

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

·     8:30 AM EST      PPI Ex: Food & Energy YoY for Feb…2.6%

·     10:00 AM EST    University of Michigan Confidence, Mar-P…est. 78.5

·     1:00 PM EST       Baker Hughes Weekly rig count data

 

Earnings Calendar:

·     Earnings Before the Open: BKE, INSW, KIRK, NOG, SGA

 

Other Key Events:

·     Loop Capital Consumer, Industrials, TMT Conference (virtual), 3/11-3/12

·     Truist Virtual Atlanta and Texas Bank Summit, 3/11-3/12

 

 

Macro	Up/Down	Last
Nymex	-0.41	65.61
Brent	-0.39	69.24
Gold	-21.50	1,701.010
EUR/USD	-0.0066	1.1920
JPY/USD	0.50	109.01
10-Year Note	+0.087	1.614%

 

 

Sector News Breakdown

Consumer

·     ChargePoint Holdings (CHPT) Q4 EPS ($5.29) vs. est. ($1.09) on revs $42.4Mm vs. est. $37.95Mm; guides 1Q revs $35-40Mm vs. est. $41Mm; sees FY revs $195-205Mm vs. est. $198.9Mm

·     El Pollo Loco (LOCO) Q4 EPS 16c vs. est. 15c; Q4 revenue $110.34M vs. est. $111.61M; Q4 system-wide comparable restaurant sales decreased 0.2%, including a 3.0% decrease for company-operated restaurants, and a 1.8% increase for franchised restaurants.

·     Funko (FNKO) Q4 EPS 24c vs. est. 14c; Q4 revenue $227M vs. est. $195.67M; Q4 adj EBITDA rises 29% to $33.2M; sees 2021 adj EPS 84c-96c vs. est. 53c and sees year sales growth of 25%-30%

·     Joann (JOAN) 10.94M share IPO priced at $12.00

·     Poshmark (POSH) Q4 adj EPS 5c vs. est. loss (1c); Q4 revs rose 27% to $69.3M vs. est. $68M; Q4 Gross merchandise value up 28% to $387.2M; guides Q1 revs $75.5M-$77.5M vs. est. $80.1M and adj Ebitda $1M-$2M

·     Tilly’s (TLYS) Q4 EPS 29c vs. est. 19c; Q4 revenue $177.9M vs. est. $176.23M; Q4 comp sales rose 2.5%

·     Ulta Beauty (ULTA) Q4 adj EPS $3.41 vs. est. $2.35; Q4 revenue $2.2B vs. est. $2.08B; Q4 comp sales down (-4.8%); announces CEO transition; sees FY21 EPS $8.85-$9.30 vs. est. $10.61; sees FY21 revenue $7.2B-$7.3B vs. est. $7.32B

·     Vail Resorts (MTN) Q2 EPS $3.62 vs. est. $2.12; Q2 revenue $684.3M vs. est. $641.95M; expects resort reported Ebitda to be between $560M-$600M for nine months ended April 30, 2021; says given ongoing uncertainty of covid-19, we will not be providing full year guidance for fiscal 2021; expect to invest approximately $115M-$120M for 2021

·     Zumiez (ZUMZ) 4Q EPS $1.68 vs. est. $1.63 on sales $331.5Mm vs. est. $327.3Mm, comps for 35 days ended March 6th -0.4%; not providing outlook at this time

 

Energy, Industrials and Materials

·     Apollo Global Management Inc. (APO) has made a bid for Aegion Corp. (AEGN), a pipeline-services company that last month agreed to be taken private by New Mountain Capital, according to people with knowledge of the matter – Bloomberg https://bloom.bg/3rG7MRl 

·     Hayward (HAYW) 40.278M share IPO priced at $17.00

·     Northern Oil & Gas (NOG) Q4 Non-GAAP EPS of $0.64 misses by $0.03 and revenue of $99.51M misses by $15.74M.

·     Gold miners (AEM, NEM, AUY) looking lower as gold prices slide along with the jump in yields and the dollar

 

Healthcare

·     GoodRx (GDRX) Q4 adj EPS 8c vs. est. 7c; Q4 revenue $153.5M vs. est. $147.8M; sees Q1 revenue $158M-$161M vs. est. $161.98M; sees Q1 adjusted EBITDA margin roughly 30%

·     Novavax (NVAX) shares surged over 20% after saying studies show its COVID-19 vaccine is highly effective. The company said a completed late-stage clinical study showed that its vaccine candidate NVX–CoV2373 was 96.4% effective against “mild, moderate, and severe disease caused by the original COVID-19 strain.” Novavax said it plans to use the data to support regulatory approval of the vaccine worldwide

·     Longboard Pharmaceuticals (LBPH) 5M share IPO priced at $15.00

·     Prometheus (RXDX) 10M share IPO priced at $19.00

 

Technology, Media & Telecom

·     Comtech Telecom (CMTL) 2Q ad EPS $0.27 vs. est. $0.04 on sales $161.3Mm vs. est. $137.9Mm; sees FY21 revenue $610M-$620M vs. est. $620.12M; continues to target Adjusted EBITDA in a range of $74.0M-$76M

·     DocuSign (DOCU) 43Q adj EPS $0.37 vs. est. $0.22, qtrly billings $534.9Mm +46%; guides FY revs $1.96-1.97B vs. est. $1.89B, sees FY billings $2.26-2.28B

·     Domo Inc. (DOMO) 4Q adj EPS ($0.32) vs. est. ($0.43) on revs $56.8Mm vs. est. $54.0Mm; guides 1Q revs $56.5-57.5Mm vs. est. $56.3Mm, sees 1Q adj EPS loss $0.43-0.47 vs. est. loss $0.30; guides FY revs $240-245Mm, sees FY adj EPS loss $1.53-1.63 vs. est. loss $1.26

·     Exone Co (XONE) 4Q EPS ($0.21) vs. est. ($0.17) on revs $17.4Mm vs. est. $16.9Mm; sees 15%-25% rev growth for 2021; achieves scientific breakthrough: automotive industry-first binder jet aluminum 3d printing and high-density sintering

·     Zuora Inc. (ZUO) Q4 adj EPS loss (2c) vs. est. loss (4.5c); q4 revs $79.3M vs. est. $76.1M; sees Q1 EPS loss (4c) to (3) vs. est. loss (4c); sees Q1 revenue $78M-$80M vs. est. $79.36M; Full year subscription revenue grew 17% YoY; customers with annual contract value (ACV) equal to or greater than $100,000 increased to 676 customers, or 8% YoY

·     AudioEye (AEYE) 4Q adj EPS ($0.09) vs. est. ($0.32) on revs $5.6Mm vs. est. $5.5Mm; guides FY revs $30-32Mm vs. est. $31.8Mm

·     Coherent (COHR) announced that the company’s board of directors, in consultation with its financial and legal advisors, has determined that a revised acquisition proposal Coherent received from II-VI (IIVI) constitutes a “Company Superior Proposal” under the terms of Coherent’s pending revised merger agreement with Lumentum (LITE).