Early Look

Friday, May 14, 2021

Futures	Up/Down	%	Last
Dow	136.00	0.40%	34,074
S&P 500	23.25	0.58%	4,130
Nasdaq	132.00	1.01%	13,232

 

 

Stocks are looking to extend Thursday’s gains where major averages snapped their three-day losing streak, as investors overlooked another data point showing a jump in inflation (PPI surged Thursday after CPI’s sharp spike the day prior). Fed officials have repeatedly suggested (just about all outside of Kaplan) that they have no intention to withdraw its support, saying the recent spike in inflation prices is transitory and not long-term, while the 10-year Treasury yield fell by another 3 bps overnight to 1.63% after topping out at highs around 1.7% earlier in the week. Dow futures are looking higher despite Dow component Disney (DIS) sliding after missing quarterly revenue views and weaker ARPU on their streaming service. Reopening trades such as theme parks, airlines, restaurants and cruise companies led the late day advance after the CDC eased mask guidelines for those that have been vaccinated. Also helping sentiment, new applications for unemployment insurance continue to fall, according to jobless claims data from the Labor Department that hit a 14-month low. Oil prices in the U.S. edged higher Friday after slumping 3.4% on Thursday as Colonial Pipeline, the biggest U.S. pipeline, returned to service following a cyberattack at the end of last week. The S&P 500 ended Thursday up 1.2%, trimming its loss this week to about 2.8%. The Nasdaq has lost almost 5% this week and is down about 7% from its record high close on April 26. In Asian markets, The Nikkei Index jumped 636 points to 28,084, the Shanghai Index spiked 60 points to 3,490, and the Hang Seng Index advanced 308 points to 28,027. In Europe, the German DAX is higher by about 90 points to 15.290, while the FTSE 100 rises over 40 points to move back above the 7,000 level.

Events Calendar for Today

·     8:30 AM EST      Import/Export Prices MoM for April

·     8:30 AM EST      Retail Sales MoM for April

·     8:30 AM EST      Retail Sales Ex: Autos MoM for April

·     9:15 AM EST      Industrial Production MoM for April

·     9:15 AM EST      Capacity Utilization for April

·     10:00 AM EST    Business Inventories for March

·     10:00 AM EST    University of Michigan Sentiment, May-P

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

 

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 49.46 points, or 1.22%, to 4,112.50

·     The Dow Jones Industrial Average rose 433.79 points, or 1.29%, to 34,021.45

·     The Nasdaq Composite climbed 93.31 points, or 0.72%, to 13,124.99

·     The Russell 2000 Index advanced points, or 1.68% to 2,170.95

 

 

Macro	Up/Down	Last
Nymex	0.42	64.24
Brent	0.45	67.50
Gold	7.00	1,833.75
EUR/USD	0.003	1.2111
JPY/USD	-0.09	109.38
10-Year Note	-0.031	1.637%

 

 

Sector News Breakdown

Consumer

·     AirBnB (ABNB) 1Q EPS ($1.95) vs. est. ($1.19) on revs $886.9Mm vs. est. $714.4Mm, have seen improving trends for April vs March in both nights and experiences booked; expect 2Q will be significantly above 2Q20 but still below 2Q19 for nights and experiences booked; have seen bookings lead times start to lengthen vs 4Q20; guides 2Q revs similar to 2Q19 and 2Q adj EBITDA margin breakeven to slightly pos

·     Blink Charging (BLNK) Q2 revs rose 72% in Q2 to $2.2M while revenue from product sales was up 113% to $1.7M and revenue from network fees, warranty fees, grants/rebates and other revenues increased 100% to $0.4M

·     Dillard’s (DDS) Q1 EPS $7.25 on sales $1.38B rising 73%; Net income of $158.2 million compared to a net loss of $162.0 million; retail gross margin of 42.7% compared to 12.8%; inventory decreased approximately 17%

·     DoorDash (DASH) Q1 EPS loss (34c) vs. est. loss (26c); Q1 revs $1.08B vs. est. $993.32M; said total Orders grew 219% year-over-year to 329M, and marketplace GOV grew 222% year-over-year to $9.9B; expect Q2 marketplace gov to be in range of $9.4 billion to $9.9 billion, with q2 adjusted Ebitda in range of $0 million to $100 million

·     Farfetch Limited (FTCH) 1Q EPS ($0.24) vs. est. ($0.42) on revs $485Mm vs. est. $457Mm, 1Q GMV and digital platform GMV +50% and 60%, respectively; guides 2Q digital platform GMV $910-945Mm, sees adj EBITDA ($23) to ($25) Mm; guides FY digital platform GMV $3.725-3.865B, sees adj EBITDA margin 1-2%

·     Fiesta Restaurant (FRGI) Q1 adj EPS 1c vs. est. loss (3c); Q1 revs $144.7M vs. est. $139.61M; Q1 comp restaurant sales at Pollo Tropical increased 4.3%; and compared to the same fiscal period in 2019, comparable restaurant sales for Pollo Tropical decreased 3.3%; Comparable restaurant sales at Taco Cabana decreased 4.3%

·     Fisker Inc. (FSR) announced plans to make cars in the U.S. with a manufacturing partner known for working with Apple Inc. Fisker and Foxconn, revealed that they will jointly invest in a plan to manufacture an electric vehicle in the U.S.

·     Tyson Foods Inc. (TSN) said it would sell its pet treats business for $1.2 billion to General Mills Inc. (GIS), about 11 years after the foods company entered the pet treats business.

·     Digital Brands (DBGI) 2.41M share IPO priced at $4.15

·     Save Foods (SVFD) 1.091M share Secondary priced at $11.00

 

Energy, Industrials & Materials

·     Graphic Packaging Holding Company (GPK) announced a definitive agreement under which they will acquire AR Packaging Group for approximately $1.45 billion in cash, subject to customary adjustments.

·     Hydrofarm Holdings (HYFM) 1Q ($0.16) vs. est. ($0.16) on revs $7.45Mm vs. est. $7.5Mm

 

Financials

·     Coinbase (COIN) Q1 EPS $3.05 vs. est. $3.09; Q1 revs $1.8B vs. est. $1.81B; said had verified users of 56M, Q1 monthly transacting users of 6.1M and Q1 assets on platform of $223B, representing 11.3% crypto asset market share; in FY 2021, expect technology and development expenses and general and administrative expenses between $1.3B-$1.6B; anticipate transaction expenses will be in the low-to-mid teens as a percent of net revenue in 2021

·     Paycom Software, Inc. (PAYC) increased and extended its ongoing stock repurchase plan, such that $300 million is available for repurchases

·     Victory Capital (VCTR) reported assets under management of $157.1B on April 30, 2021 vs. $154.3B prior month-end

·     The9 (NCTY) signs three Chia (XCH) cryptocurrency mining machine purchase and cloud service leasing agreements with three unrelated vendors, with the total contract sum of more than $5.7M

 

Healthcare

·     Affimed (AFMD) announces publication of preclinical data in clinical cancer research supporting therapeutic potential of afm13 in combination with natural killer cells

·     Aptinyx (APTX) Q1 EPS loss (22c) on revs $1.0M vs. est. no revs; cash, equivalents were $146.8 mln at march 31, 2021 vs $141.0 mln at December 31, 2020; expects its current cash balance to support anticipated operations into 2023

·     Co-Diagnostics (CODX) Q1 EPS 26c vs. est. 22c; Q1 revs $20M vs. est. $19.89M; sees Q2 EPS 19c-23c vs. est. 22c; sees Q2 revs $20M-$22M vs. est. $16.31M; cash, cash equivalents, and marketable securities totaled $60.1 mln as of march 31, 2021

·     Fate Therapeutics (FATE) announces promising interim early-stage data from the company’s off-the-shelf, iPSC-derived natural killer (NK) cell programs in relapsed / refractory acute myeloid leukemia (AML).

·     GoodRx Holdings (GDRX) Q1 adj EPS 7c, in-line with ests; Q1 revs $160.4M vs. est. $160.58M; sees Q2 revs $172M-$176M vs. est. $172.44M; sees Q2 adjusted EBITDA margin roughly 30%; raises FY21 revenue view to $740M-$760M from $735M-$755M

·     Spectrum Pharma (SPPI) 1Q adj EPS ($0.20) vs. est. ($0.32), ended qtr with cash and equiv of $162.9Mm, says Poziotinib NDA on trade for 2021 submission

·     Praxis Precision Medicines (PRAX) 5M share Secondary priced at $18.25

·     Vera Therapeutics (VERA) 4.35M share IPO priced at $11.00

 

Technology, Media & Telecom

·     Disney (DIS) Q2 adj EPS 79c vs. est. 27c; Q2 revs $15.61B vs. est. $15.87B; as of quarter-end, Disney+ paid subscribers were 103.6M, total Hulu paid subscribers were 41.6M and ESPN+ paid subscribers were 13.8M; Disney parks, experiences and products revenues for quarter decreased 44% to $3.2B; estimate additional $1.2 bln impact on Disney parks, experiences and products segment operating income compared to prior-year quarter; qtrly impacts of covid-19 on Disney media and entertainment distribution segment, vs prior-year quarter, were less significant

·     Globant (GLOB) Q1 EPS 83c vs. est. 80c; Q1 revs $270.2M vs. est. $259.3M; sees FY21 adj EPS ‘at least’ $3.37 vs. est. $3.28; sees FY21 revenue “at least” $1.135B vs. est. $1.07B

·     Luminar Technologies (LAZR) 1Q adj EPS ($0.08) vs. est. ($0.06) on revs $5.3Mm vs. est. $4.8Mm; says on track to achieve its FY guide for revs $25-30Mm

·     New Relic (NEWR) Q4 adj EPS loss (27c) vs. est. loss (45c); Q4 revs $173M vs. est. $167.05M; announced the promotion of Bill Staples to CEO, effective July 1, 2021; Q4 $100K+ paid business accounts 1,048, +5.5% y/y and dollar-based net expansion rate 99% vs. 116.0% y/y; sees FY22 adj EPS loss (83c)-(80c) vs. est. (79c); sees FY22 revs $709M-$711M vs. est. $709.66M

·     Plantronics (PLT) Q4 EPS $1.23 vs. est. 93c; Q4 revs $476M vs. est. $455.69M, driven primarily by Video, which more than doubled to a record high; announces symbol change to “POLY”; sees Q1 non-GAAP EPS 35c-55c vs. est. 82c; sees Q1 revs $410M-$430M vs. est. $441.2M

·     Sierra Wireless (SWIR) 1Q adj EPS ($0.26) vs. est. ($0.27) on revs $108.1Mm vs. est. $107.2Mm; guides 2Q revs $118-122Mm vs. est. $107Mm

·     Vivint Smart Home (VVNT) 1q revs $343.3Mm vs. est. $332.8Mm, smart home news subs +20%, rev growth +13%, net service cost per sub $10.77, still expects to end 2021 with 1.8-1.85Mm total subs; affirms FY adj EBITDA guide $640-655Mm vs. est. $645Mm

·     Data Storage (DTST) 1.6M share IPO priced at $6.75