Early Look

Tuesday, November 26, 2024

U.S. S&P futures recoup from an overnight knee-jerk drop to trade little changed after President-elect Donald Trump vows to impose tariffs on all products from Mexico and Canada. Trump pledged to issue big tariffs on the country’s biggest trading partners. Trump said he would impose a 25% tariff on imports from Canada and Mexico and outlined “an additional 10% tariff, above any additional tariffs” on imports from China. The comments weighed on the Mexican peso which dropped to 2-year lows while the greenback hit over 4-year highs vs. the Canadian dollar. Shares of European and U.S. based carmakers also dropped after Trump pledged big tariffs on Canada, Mexico and China, with shares of STLA, VLVLY, POAHY trading lower as well as weakness in European steelmakers.

Stocks finished broadly higher on Monday, led again by the Dow and Russell, while the S&P made it a 5^th day of gains in the last 6. The Smallcap Russell 2000 index made it a 6^th straight day of gains on Monday, taking out its November 2021 intraday record high before settling below, as stocks advanced on news of hedge fund manager after Scott Bessent’s nomination as U.S. Treasury secretary, easing some of the fiscal concerns that had pushed bond yields higher ahead of the elections about possible new tariffs. News reports of ceasefire deal talk between Israel and Lebanon also helped boost sentiment and pushed oil prices lower, dragging the Energy index down on the day.

In Asian markets, The Nikkei Index fell -338 points to 38,442, the Shanghai Index dipped -4 points to 3,259, and the Hang Seng Index edged higher 8 points to 19,159. In Europe, the German DAX is down -105 points to 19,299, while the FTSE 100 is down -22 points to 8,269. For a short holiday week, lots of earnings on the calendar today including those from Dell Technologies, CrowdStrike Holdings, Analog Devices, Workday, Autodesk, HP Inc., Nutanix, Best Buy, Burlington Stores, Dick’s Sporting Goods, Abercrombie & Fitch, and Nordstrom. Bitcoin prices are down -2% to $91,700 are weighing early on crypto related stocks like MSTR which is down over 7%.

• The Dow Jones Industrial Average rose 440.06 points, or 0.99%, to 44,763.57.
• The Nasdaq Composite gained 51.18 points, or 0.27%, to 19,054.84.
• The Russell 2000 Index surged 35.36 points, or 1.47% to 2,442.03.

• 8:55 AM ET                  Johnson/Redbook Weekly Sales
• 9:00 AM ET                  Monthly Home Price M/M for September
• 9:00 AM ET                  CaseShiller 20-city index for September…est. +0.3%
• 10:00 AM ET                Consumer Confidence for November…est. 111.3
• 10:00 AM ET                New Home Sales M/M for October…est. 725K
• 10:00 AM ET                Richmond Fed Index for November
• 1:00 PM ET US Treasury to sell $70B in 5-year notes
• 2:00 PM ET FOMC Policy Minutes from Nov 7 meeting
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: ADSK AMBA ARWR CRWD DELL EMBC HPQ JWN NTNX PD PNST URBN WDAY

• Central Garden (CENT) Q4 adj EPS ($0.18) vs est. ($0.20), adj EBITDA $17Mm vs est. $22.32Mm on sales $669.489Mm vs est. $706.18Mm; sees FY25 adj EPS $2.20 or better vs est. $2.44.
• Kohl’s (KSS) says CEO Tom Kingsbury will step down after less than two years at the helm and that former Walmart (WMT) executive Ashley Buchanan to become CEO, as the retailer looks to execute a turnaround.
• Leslie Pools (LESL) Q4 adj EPS $0.02 vs est. $0.11, adj EBITDA $43Mm vs est. $57.6Mm on sales $397.9Mm vs est. $405.2Mm; sees Q1 sales $169-176Mm vs est. $178.41Mm, adj EBITDA ($39)Mm – ($37)Mm vs est. ($21.6)Mm.
• Rivian Automotive (RIVN) said it received conditional approval for a loan of up to $6.6 billion from the U.S. government “to accelerate its growth and leadership of electric vehicle design, development and manufacturing in the United States.

• Astronics (ATRO) announces $150M convertible senior notes offering.
• Blue Bird Corp. (BLBD) Q4 adj EPS $0.77 vs est. $0.66, adj EBITDA $41.3Mm vs est. $36.4Mm on revs $350.2Mm vs est. $330.55Mm; guides FY25 revs $1.4-1.5B vs est. $1.453B and adj EBITDA $190-210Mm vs est. $191.41Mm; raises long-term adj EBITDA margin towards 15% on about $2B revs.
• Woodward (WWD) Q4 EPS $1.41 vs. consensus $1.26; Q4 revs $854.5M vs. est. $811.11M; Q4 adj EBITDA rose 5.7% y/y to $146.8M vs. est. $142.7M; guides FY25 adj EPS $5.75-$6.25 vs. est. $5.87 and FY25 sales $3.3B-$3.5B vs. est. $3.38B.

• Wells Fargo (WFC) is in the last stages of a process to pass regulatory tests to lift a $1.95 trillion asset cap next year after fixing problems from its fake accounts scandal, according to three sources familiar with the situation, Reuters reported this morning. The punishment could be removed as early as the first half of 2025, one of the sources said.

• Agilent (A) Q4 adj EPS $1.46 vs. consensus $1.41 on revs $1.7B vs. est. $1.67B; guides Q1 adjusted EPS $1.25-$1.28, below consensus $1.37 and sees Q1 revenue $1.65B-$1.68B vs. consensus $1.7B; reported Q3 Life sciences and applied markets revenue $833M (misses) and Diagnostics and Genomics revenue $442M (beat); forecasts 2025 adj EPS $5.54 to $5.61, vs. est. $5.65 and 2025 rev. $6.79B to $6.87B vs. est. $6.83B.
• Alector (ALEC) shares fall after saying its experimental drug did not meet the main goal of slowing Alzheimer’s progression in a mid-stage trial and that the co will stop the long-term extension study of the drug. ALEC also plans to cut 17% of the workforce.
• Enanta Pharmaceuticals (ENTA) Q4 EPS ($1.36) vs est. ($1.16) on revs $14.6Mm vs est. $17.93Mm.
• Replimune (REPL) 6.923M share Spot Secondary priced at $13.00.

• Semtech (SMTC) Q3 adj EPS $0.26 vs est. $0.23, adj EBITDA $51.5Mm vs est. $47.25Mm on revs $236.8Mm vs est. $232.9Mm, adj gr mgn 52.4%.
• Tencent (TCHEY) Nintendo Switch said on Tuesday that its Chinese online service would gradually cease operations for the Nintendo (NTDOY) eShop starting from March 31, 2026.
• Zoom Communications (ZM) Q3 revs $1.18B vs. est. $1.16B; sees Q4 EPS $1.29-$1.30 vs. est. $1.28 on revs $1.175B-1.18B vs. est. $1.17B; reported 3Q GAAP operating margin 15.5%; boosted total common stock repurchase authorization by $1.2B; reported Q3 enterprise customers 192,400, vs. est. 188,954; raises FY25 EPS view to $5.41-$5.43 from $5.29-$5.32 (est. $5.35) and boosted its FY25 revenue view to $4.66B-$4.67B from $4.63B-$4.64B (est. $4.64B).