Morning Preview: April 05, 2021

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Early Look

Monday, April 5, 2021









S&P 500










U.S. futures are adding to last week’s gains, with the S&P holding above the 4,000 level after topping it for the first time on Thursday, getting an additional boost after a stellar jobs report on Friday lifted sentiment about the strengthening U.S. economy. Equity market were closed on Friday, but monthly jobs data handily topping expectations as Nonfarm payrolls surged by 916,000 jobs in March, the biggest gain since last August and topping estimates of 647,000. Data for February was revised higher to show 468,000 jobs created instead of the previously reported 379,000. The data just added to upbeat market optimism after the announcement of the $2 trillion infrastructure bill last week by the White House, which has buoyed investments in metals, materials and industrial stocks. In Asian markets, The Nikkei Index rose 235 points to 30,089, the Shanghai Index rose 18 points to3,484 and the Hang Seng Index surged 560 points to 28,938. In Europe, the German DAX is higher by 100 points to 15,105, while the FTSE 100 is up about 20 points to 6,735. In stock news, Tesla (TSLA) shares jump over 7% after better delivery orders for the latest month, GameStop (GME) shares slip following an “at-the-market” offering, while Bitcoin prices drop 2% back to the $58,000 level after topping $60K this weekend. Oil prices are looking lower along with gold as the dollar rises and Treasury yields are steady at 1.72%.

Market Closing Prices Yesterday

·    The S&P 500 Index jumped 46.98 points, or 1.18%, to 4,019.87

·    The Dow Jones Industrial Average rose 171.66 points, or 0.52%, to 33,153.21

·    The Nasdaq Composite spiked 233.23 points, or 1.76%, to 13,480.11

·    The Russell 2000 Index advanced 33.38 points, or 1.50% to 2,253.90


Events Calendar for Today

·    9:45 AM EST      Markit Composite PMI, March-F

·    9:45 AM EST      Markit Services PMI, March F

·    10:00 AM EST    Durable Goods MoM for Feb

·    10:00 AM EST    Durable Goods Ex-Defense

·    10:00 AM EST    Factory Orders MoM for February

·    10:00 AM EST    ISM Non-Manufacturing Index for March





















10-Year Note





Sector News Breakdown


·    Tesla Inc (TSLA) posted record deliveries between January-March quarter with 184,800 deliveries topping estimates of 177,822 vehicles, according to Refinitiv and exceeding its previous record of 180,570 achieved last quarter. Tesla delivered 182,780 Model 3/Ys in Q1, up 13% QoQ while deliveries of pricier S/Xs slumped from 18,920 to 2,020 during the period.

·    GameStop (GME) announces 3.5M share common stock offering priced ‘at-the-market’; said that global sales for the nine-week period ending April 4 rose about 11%.

·    IMAX (IMAX) posted its biggest domestic opening weekend in more than a year as "Godzilla vs. Kong" earned $4.5 million on 284 screens. Over 1,000 domestic IMAX shows were sold-out over the 5-day opening, nearly 25% of all IMAX showtimes over that period. Globally, the Warner Bros. and Legendary Pictures earned $13 million this weekend across all markets

·    WW Inc. (WW) mentioned favorably inn Barron’s noting the pandemic has taken a physical toll, even on those spared the worst of COVID-19, with Americans on average having gained weight after a year of restricted movements and stress-eating, and the company is likely to play a part in the recovery as the opportunity isn’t yet reflected in its stock price



·    Pioneer Natural (PXD) downgraded to Sector Weight from Overweight at KeyBanc

·    Seadrill has asked creditors to write off more than 85% of its debts in exchange for a 99% stake in the reorganized company, a court filing showed. The company in February filed for Chapter 11 bankruptcy protection in the United States, the second time it has done so in four years.



·    Charles Schwab (SHCW) upgraded to Conviction Buy from Buy at Goldman Sachs



·    Invitae Corp (NVTA) rises after the WSJ reported SoftBank Group Corp plans to lead an investment of nearly $1.2 billion into the genetic-testing provider in the form of convertible debt

·    Acadia Pharmaceuticals (ACAD) receives complete response letter from U.S. FDA for supplemental new drug application for pimavanserin for the treatment of hallucinations and delusions associated with dementia-related psychosis

·    Emergent BioSolutions (EBS) backs FY21 revenue view $1.95B-$2.05B (est. $2.02B) and backs FY21 adjusted EBITDA view $750M-$810M; has received a contract modification from BARDA to increase the original task order by $23M

·    AbbVie (ABBV) said the FDA extended the PDUFA action date for upadacitinib for the treatment of atopic dermatitis by three months to early 3Q 2021

·    The United States has put Johnson and Johnson (JNJ) in charge of a plant that ruined 15 million doses of its COVID-19 vaccine and has stopped British drugmaker AstraZeneca Plc (AZN) from using the facility, a senior health official said on Saturday.


Industrials & Materials

·    Barrick (GOLD) is a good way to play gold comeback according to Barron’s saying with the recent selloff, gold looks attractive and so does mining giant Barrick Gold. Barrick and other large gold-mining companies are trading cheaply, relative to their histories and to gold, even though they are better run than ever before, the author notes

·    Vulcan (VMC), NextEra (NEE) among stocks to gain from infrastructure plan, according to Barron’s saying with Democrats in control in Washington, the infrastructure floodgates could finally open. Engineering and construction companies have had strong runs, but their stocks don’t look overpriced on 2022 estimates, such as MasTec (MTZ), Aecom (ACM), Jacobs (J) and Quanta Services (PWR), while construction materials supplier Vulcan Materials (VMC) would be a beneficiary of spending on roads and bridges.

·    Japan Airlines Co. has retired its fleet of Boeing (BA) 777s with Pratt & Whitney engines a year ahead of schedule after problems including a Feb. 20 incident in which a United Airlines Boeing 777 strewed engine debris across a Denver neighborhood. The Japanese airline had originally planned to retire its last remaining seven 777s with those engines by the end of March 2022

·    GMS Inc. (GMS) raises FY21 revenue view to $455M-$465M from $416.7M (est. $417.37M) and raises FY21 adjusted EBITDA view to $72M-$75M from $70.8M

·    Leidos (LDOS) upgraded to Buy from Neutral at Goldman Sachs


Technology, Media & Telecom

·    Facebook’s (FB) mentioned positively in Barron’s saying the stock is trailing Silicon Valley rivals, and it trades essentially in line with the broad market…but it won’t remain this cheap for long, especially with investors rotating out of expensive tech stocks with questionable business models. The company is expected to generate $35B in free cash flow next year, up 30% from this year’s forecast, and the stock price should follow

·    TIM Brazil has selected Ceragon Networks (CRNT) to participate in the joint work they are carrying out along with Telecom Infra-Project (TIP) and the National Telecommunication Institute to test providers for 5G OpenRAN


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

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