Morning Preview: April 16, 2021

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Early Look

Friday, April 16, 2021









S&P 500










U.S. overnight futures are looking mixed, with the Dow and S&P 500 looking to add to record all-time highs, while the tech heavy Nasdaq pulls back following outperformance on Thursday behind another rally in large cap tech stocks, though all major average are on track to extend their winning streaks to three weeks. Stocks touched record levels on Thursday after key companies reported strong earnings and new economic data pointed to a rebound in consumer spending and the jobs market. Overnight, China reported record GDP data rises 18.3% in Q1 from 6.5% YoY, but still fell short of estimate of a rise over 19%. In Asian markets, The Nikkei Index rose 40 points to 29,683, the Shanghai Index gained 27 points to 3,426, rallying behind upbeat economic data and the Hang Seng Index jumped 176 points to 28,969. In Europe, the German DAX is jumps over 140 points to 15,400, while the FTSE 100 is higher by about 50 points at 7,030 as strength in Europe continues. Bitcoin prices slide 4% below $61,000 after Turkey banned the use of cryptocurrencies and crypto assets to purchase goods and services. The yield on the 10-year U.S. treasury edged higher Friday to 1.585%. the 10-year treasury note sank Thursday to 1.531%, the lowest in four weeks.

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 45.76 points, or 1.11%, to 4,170.42

·     The Dow Jones Industrial Average rose 305.10 points, or 0.90%, to 34,035.99

·     The Nasdaq Composite surged 180.92 points, or 1.31%, to 14,038.76

·     The Russell 2000 Index advanced 9.35 points, or 0.42% to 2,257.07


Events Calendar for Today

·     8:30 AM EST      Housing Starts MoM for March…est. 1.613M

·     8:30 AM EST      Building Permits MoM for March…est. 1.75M

·     10:00 AM EST    University of Michigan Confidence, Apr-P…est. 89.6

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


Earnings Calendar:

·     Earnings Before the Open: ALLY, BK, CFG, KSU, MS, PNC, STT





















10-Year Note





World News

·     China’s economy surged 18.3% in Q1 from a year earlier, a record rate of growth, but fell short of the 19.2% economist estimate. The rate of GDP growth in the first three months of 2021 was sharply higher than the 6.5% year-over-year growth recorded in the final quarter of 2020, though it fell short of the 19.2% estimate

·     China Jan-March Industrial Production below expected; +24.5% y/y vs 26.5% consensus; China Jan-March Fixed Investment below expected; +25.6% y/y vs 26.0% consensus; China Jan- March Retail Sales above expected; +33.9% y/y vs 31.7% consensus; China March House Price Index +0.41% m/m vs prior +0.36%


Sector News Breakdown


·     Bally’s (BALY) 11M share Secondary priced at $55.00

·     Caesars Entertainment (CZR) becomes an official sports betting partner of NFL and renews rights as official casino sponsor of NFL

·     DraftKings (DKNG) named an official sports betting partner of the National Football League (NFL)

·     Daimler AG (DDAIF) said Daimler group EBIT, Mercedes-Benz Cars & Vans adjusted EBIT, Daimler Trucks & Buses Return on Sales (RoS) adjusted, Daimler Mobility adjusted EBIT and Daimler’s Industrial Free Cash Flow for the first quarter of 2021 are all significantly above market expectations

·     Norwegian cruise (NCLH) submits reminder letter to CDC on proposal to lift conditional sailing order & resume cruising from U.S. ports starting July 4th



·      E&P Sector changes at Scotiabank, upgrading Cimarex (XEC), EOG Resources (EOG), Murphy (MUR) to Outperform and downgraded Occidental (OXY), Pioneer Natural (PXD) and Diamondback Energy (FANG) to sector perform

·     North Dakota could see 400K barrels per day of crude oil production temporarily wiped out if Energy Transfer’s (ET) Dakota Access Pipeline is shut, according to the director of the state’s Department of Mineral Resources.

·     Clean Energy Fuels (CLNE) discloses it established a 50-50 joint venture with BP to develop, own and operate new renewable natural gas facilities at dairies and other agriculture facilities in North America

·     Sunrun (RUN) upgraded to Overweight at Piper Sandler on valuation

·     Maxeon Solar Technologies (MAXN) priced its offering of $125M ordinary shares at $18.00 per share



·     Bank of New York (BK) Q1 EPS $0.97 vs. est. $0.87; Q1 revs $3.9B fell 5% but above estimates $3.85B; at qtr-end, auc/a of $41.7 trillion, increased 18% and at qtr-end, AUM of $2.2 trillion, increased 23%; qtrly total fee and other revenue $3.27 bln vs $3.29 bln; qtrly total noninterest expense of $2.9 billion, increased 5%

·     Citizens Financial (CFG) Q1 EPS $1.41 vs. est. 97c; Q1 revenue $1.66B vs. est. $1.65B; qtrly net interest income $1.12 bln vs $1.16 bln

·     Aon plc (AON) raises quarterly dividend 11% to 51c per share

·     United Rentals, Inc. (URI) to acquire General Finance Corp. (GFN) for $19 per share in cash, representing a total enterprise value of approximately $996 million, including the assumption of $400 million of net debt.

·     Western Alliance Bancorp (WAL) Q1 EPS $1.90 vs. est. $1.46 on revs $337M (vs. est. $338M); NIM was down at 3.37% vs. 4.22% YoY and NII rises 18% YoY to $317.3M



·     IDEAYA Biosciences, Inc. (IDYA) said it plans to issue a pre-market press release and conduct a webcast on Friday, April 16, 2021, to discuss clinical data from the ongoing Phase 1/2 trial evaluating darovasertib (IDE196) as monotherapy and darovasertib and binimetinib combination in patients with metastatic uveal melanoma (MUM)

·     Progyny Inc. (PGNY) will replace Domtar Corp. (UFS) in the S&P MidCap 400, and Domtar will replace NIC Inc. (EGOV) in the S&P SmallCap 600. S&P 500 constituent Tyler Technologies Inc. (TYL) is acquiring NIC in a deal expected to close soon pending final conditions.

·     Akoya Biosciences (AKYA) 6.58M share IPO priced at $20.00


Industrials & Materials

·     Alcoa (AA) Q1 adj EPS 79c vs. est. 44c; Q1 sales $2.87B vs. est. $2.62B; said 2021 shipment outlook for bauxite and aluminum remains unchanged from prior full-year estimates; expects another strong quarter in Q2; company’s aluminum segment is forecasting double digit growth on year-over-year sales of value-add products in 2021

·     JB Hunt (JBHT) 1Q $1.37 vs. est. $1.17 on revs $2.62B vs. est. $2.5B; Q1 intermodal revenue $1.18B, up +2.6% y/y, dedicated contract services revenue $580M up 7% y/y and integrated capacity solutions revs $525M up 57% y/y

·     Marten Transport (MRTN) Q1 EPS 22c vs. est. 20c; Q1 operating revenue $223.0M vs. est. $224.0M

·     Matson (MATX) sees Q1 operating income for ocean transportation to be $110.0 to $115.0 mln and expects Q1 operating income for logistics to be about $6.0 mln; sees Q1 EPS $1.83-$1.93 vs. est. $1.29

·     PPG Industries (PPG) Q1 adj EPS $1.88 vs. est. $1.56; Q1 sales $3.88B vs. est. $3.67B; sees Q2 EPS $2.15-$2.20 vs. est. $2.03; sees aggregate sequential net sales up a low-teen percentage when compared to Q1; said in near-term, managing through direct supply chain disruptions, production constraints at some customers due to input component shortages


Technology, Media & Telecom

·     S&P MidCap 400 constituent PTC Inc. (PTC) will replace Varian Medical (VAR) in the S&P 500, and Lattice Semiconductor Co. (LSCC) will replace PTC in the S&P MidCap 400 (Siemens Healthineers AG acquired Varian Medical Systems Inc. in a deal that closed today, April 15)

·     Qorvo (QRVO) awarded a $24.4M contract with the National Institutes of Health (NIH) through the Rapid Acceleration of Diagnostics initiative to help advance the production and market launch of the Qorvo Omnia diagnostic test platform


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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