Early Look

Tuesday, May 14, 2024

U.S. futures extremely quiet ahead of this mornings PPI inflation report at 8:30 AM (S&P futures trade in narrow 8-point range overnight) while Fed Chair Powell also speaks. It seemed like stock markets were “killing time” the last few days ahead of inflation reports this week, starting with the April producer Price Index (PPI) later this morning and then tomorrow’s consumer price index (CPI) and retail sales report, with investors looking for clues as to the next move by the Fed and interest rates. Market expectations are still calling for 1 to 2 rate cuts into the data, but a fourth straight month of unexpectedly higher inflation readings could change that stance and put stock markets under pressure. Stocks were mixed on Monday after the New York Fed said consumers expect prices to climb 3.3% over the next year, the highest reading since November. The dollar and Treasury yields were little changed. The Japanese yen weakened past 156. Crude futures rose in anticipation of Tuesday’s monthly OPEC report, while gold fell. The Dow Jones Industrial Average snapped its 8-day winning streak as Wall Street eyes upcoming inflation data. In Asian markets, The Nikkei Index gained 176 points to 38,356, the Shanghai Index fell -2 points to 3,145, and the Hang Seng Index dropped -41 points to 19,073. In Europe, the German DAX is down -41 points to 18,700, while the FTSE 100 edges higher 6 points to 8,421.

In stock news this morning, Dow component Home Depot (HD) reported mostly in-line results and reaffirmed guidance, and several China based companies out with earnings (BABA, TCEHY) but the story again is the volatility in “meme” stocks with shares of GME, AMC, and others seeing pre mkt strength after strong returns on Monday. "Roaring Kitty", the social media persona of Keith Gill, credited with setting off the so-called Reddit rally in January 2021 with his bullish calls on GameStop, posted on social media platform X, formerly Twitter, several times yesterday after nearly three years.

Is weakness coming this week? as @AlmanacTrader tweeted “Weak May Monthly OpEx Week – DJIA Down 12 of Last 15. Since 1990 May’s monthly OpEx week has a slight bearish bias with $DIA and $SPY down 18 and up 16. More recently, DJIA has suffered declines in 12 of the last 15, monthly expiration weeks. S&P 500 has one additional weekly gain since 2009, down 11 of the last 15. NASDAQ $QQQ has declined in 9 of the last 15.”

• The Dow Jones Industrial Average fell -81.33 points, or 0.21%, to 39,431.51.
• The Nasdaq Composite gained 47.37 points, or 0.29%, to 16,388.24.
• The Russell 2000 Index advanced 2.35 points, or 0.11% to 2,062.12.

• 7:45 AM ET                  ICSC Weekly Retail Sales
• 8:30 AM ET                  Producer Price Index (PPI) M/M for April…est. +0.3% (prior +0.2%)
• 8:30 AM ET                  Producer Price Index (PPI) Y/Y for April…est. +2.2% (prior +2.1%)
• 8:30 AM ET                  PPI Core (ex: food and energy) M/M for April…est. +0.2% (prior (+0.2%)
• 8:30 AM ET                  PPI Core (ex: food and energy) Y/Y for April…est. +2.4% (prior +2.4%)
• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 10:00 AM ET                Fed Chair Powell, ECB’s Knot Speak
• 4:30 PM ET                   API Weekly Inventory Data

• Earnings After the Close: ARQT BOOT BRTX BSEM CSWC CYCC DFLI EARN GNSS GOEV ICCC INFN LIDR NDRA NXT ORGN OTRK PBH PXLW REED RUM SSTI TCON TSHA TYGO VOXX VTSI

• JMP Securities Life Sciences Conference, 5/13-5/14, in New York
• Mizuho Industrials & Specialty Materials Bus Tour, 5/13-5/14
• Needham 19th Annual Technology, Media & Consumer Conference, 5/14-5/16 in New York
• RBC Capital Global Healthcare Conference, 5/14-5/15, in New York
• RBC Capital Canadian Industrials Conference, 5/14-5/16, in Toronto

• Alibaba (BABA) adjusted EPS $1.40 vs. est. $1.41; Q4 revenue $30.73B vs. est. $30.39B; board approves $4 billion dividend for FY24; approves two-part dividend.
• AMC Entertainment Holdings, Inc. (AMC) completed its previously disclosed “at-the-market” equity offering launched on March 28, 2024. AMC raised in aggregate approximately $250M of new equity capital through the sale of 72.5M shares, before commissions and fees, at an average price of approximately $3.45 per share
• On Holding (ONON) Q1 EPS CHF 0.33 vs. CHF 0.15 last year and revs CHF 508.2M vs. CHF 420.2M last year.
• Games Global (GGL) files to withdraw U.S IPO plans citing current market conditions – CNBC reported.

• Biden has signed a bipartisan bill banning imports of Russian enriched uranium, with waivers for companies to continue bringing it in until 2028 – Axios.

• Inotiv Inc (NOTV) files non-timely 10-q with SEC; says expects report will disclose existence of substantial doubt about co’s ability to continue as going concern; says it has plans to address existence of substantial doubt about co’s ability to continue as a going concern.
• Voyager Therapeutics (VYGR) Q1 operating income -$16.18M vs. est. -$26.9M; Q1 EPS loss (-$0.20) vs. est. loss (-$0.44); Q1 net income USD -$11.33M vs. est. -$23.8M.

• Infineron (INFN) Q4 EPS $0.12 vs. est. $0.10; Q4 revs $453.46M vs. est. $443.63M; said due to process delays in the finalization of the audit of its fiscal year 2023 financial statements, currently expects to file its Form 10-K on or before May 17.
• Sea Ltd (SE) Reports Q1 revs $3.73B vs. est. $3.6B and Ecommerce revs $2.75B vs. est. $2.49B; affirms FY24 outlook; reported Q1 adj EBITDA $401.1M v $507.2M y/y and vs. $221.8M est.