Early Look

Wednesday, August 11, 2021

Futures	Up/Down	%	Last
Dow	32.00	0.09%	35,187
S&P 500	-2.25	0.06%	4,427
Nasdaq	-32.00	0.21%	15,012

 

 

U.S. stocks are looking mixed ahead of key economic data today, coming a day after the Dow Jones Industrial Average and the benchmark S&P 500 each rose to record highs, buoyed by gains in economically sensitive value stocks such as materials, industrials, and building products after the Senate passed a $1 trillion infrastructure plan today with 19 Republicans joining all 50 Democrats voting to approve the bill that includes $550B in new funding, and it will now move to the House. Early this morning the Senate Democrats passed the $3.5 trillion budget framework, opening a path for President Joe Biden’s economic agenda. However, tech weakness dragged down the Nasdaq Composite led by large cap names on Tuesday, with more weakness early. Crude posted its biggest intraday gain in more than two weeks, while the U.S. dollar climbed to a three-week high and Treasury yields hit their highest levels since mid-July (1.34%). Meanwhile, Cleveland Fed President Loretta Mester said supply disruptions are raising prices, but it’s unclear whether they will lead to continuous gains in inflation. Those headlines come ahead of today’s consumer price index (CPI) which is expected to show a 4.3% year-over-year core print, 5.3% year-over-year “core” overall. Treasury yields continue to edge higher ahead of today’s CPI reading, with the 10-year up about 3 bps to 1.37%, meanwhile the U.S. dollar overs around 3-week highs. In Asian markets, The Nikkei Index jumped 182 points (0.65%) to settle at 28,070, the Shanghai Index was up slightly at 3,532 and the Hang Seng Index gained 54 points to 26,660. In Europe, the German DAX is up slightly at 15,785, while the FTSE 100 rises around 35 points to 7,200.

Events Calendar for Today

·     7:00 AM ET         MBA Mortgage Applications Data

·     8:30 AM ET         Consumer Price Index (CPI) MoM for July…est. 0.5%

·     8:30 AM ET         CPI Ex: Food & Energy (core) MoM for July…est. 0.4%

·     8:30 AM ET         Consumer Price Index (CPI) YoY for July…est. 5.3%

·     8:30 AM ET         CPI Ex: Food & Energy (core) YoY for July…est. 4.3%

·     10:30 AM ET      Weekly DOE Inventory Data

·     1:00 PM ET         U.S. to sell $41 bln in 10-year notes

·     2:00 PM ET         Federal Budget for July

 

Earnings Calendar:

·     Earnings Before the Open: ALT, BLI, CERE, EVGO, FTCI, HAE, HYLN, OPTN, RADI, RPRX, TELA, TH, WEN

·     Earnings After the Close: ADMA, AMWL, AOSL, ARRY, AVT, AZPN, BLNK, BMBL, CACI, CCAP, DM, DUOL, EBAY, EGY, FOSL, GHLD, HIMS, KRMD, MNKD, MSGM, NAVB, OPEN, PTRA, RGLD, RIDE, ROOT, SONO, STEM, TCON, TIG, VRM, XONE

 

Other Key Events:

·     BTIG HIMSS Digital Health Booth Tour (virtual), 8/11-8/12

·     Canaccord Genuity 41st Annual Growth Conference (virtual), 8/10-8/12

·     Cowen Annual Communications Infrastructure Hybrid Summit, 8/9-8/12

·     Cowen 9th Annual Internet & Media Bus Tour (virtual), 8/9-8/13

·     Credit Suisse 4th Annual FinTech Conference (virtual), 8/11-8/13

·     Goldman Sachs Power, Utilities, MLP & Pipeline Conference 2021 (virtual) – 8/11

·     JPMorgan Auto Conference (virtual), 8/11-8/12

·     KeyBanc Capital Markets Technology Leadership Virtual Forum, 8/9-8/12

·     Oppenheimer 24th Annual Technology, Internet & Comm Conference (virtual), 8/10-8/12

·     Piper Biotech Virtual Tour, 8/10-8/12

·     Susquehanna 2021 Energy, Industrials & Airlines Conference (virtual), 8/10-8/11

·     UBS Financial Services Conference (virtual), 8/10-8/12

·     Wells Fargo 6th Annual FinTech & Technology Services Forum (virtual), 8/10-8/11

 

Market Closing Prices Yesterday

·     The S&P 500 Index gained 4.40 points, or 0.10%, to 4,436.75

·     The Dow Jones Industrial Average rose 162.82 points, or 0.46%, to 35,264.67

·     The Nasdaq Composite dropped -72.09 points, or 0.49%, to 14,788.09

·     The Russell 2000 Index advanced 4.55 points, or 0.20% to 2,239.36

 

 

Macro	Up/Down	Last
Nymex	-0.59	67.70
Brent	-0.55	70.08
Gold	7.30	1,736.25
EUR/USD	-0.0009	1.1711
JPY/USD	0.17	110.74
10-Year Note	+0.029	1.371%

 

 

Sector News Breakdown

Consumer

·     Darling Ingredients (DAR) 2Q EPS $1.17 vs est. $0.89 on revs $1.2B vs est. $1.11B

·     Grocery Outlet (GO) Q2 adj EPS $0.47 vs. est. $0.24; Q2 revs $775.5M, in-line with consensus; Q2 comparable store sales decreased by 10.0% compared to a 16.7% increase in the same period last year; continues to expect to open between 36 and 38 stores in fiscal 2021 with one closure

·     PLBY Group (PLBY) Q2 revenue $49.9M vs. est. $46.9M; Revenue grew 44% yoy, to $49.9M, driven by growth in both direct-to-consumer and licensing revenues; Direct-to-consumer revenue grew 88% yoy, to $28.0M, and licensing revenue grew 12% yoy, to $15.4M; net loss was $8.9M

·     Poshmark (POSH) 2Q revs $81.8Mm vs est. $80.3Mm, GMV +25% to $449.6Mm; guides 3Q revs $81-83Mm vs est. $82.4Mm, sees 3Q adj EBITDA $1.0-2.0Mm vs est. $1.4Mm

·     Shift Technologies (SFT) Q2 EPS ($0.41) vs est. ($0.44) on revs $155M vs est. $129.4M; sees Q3 revenue $155M-$170M vs est. $134.5M, raises FY revs guidance to $575M-$595M from $480M-$520M vs est. $509.2M

·     WW International (WW) tumbles -25%; Q2 EPS $0.12 vs. est. $0.65; Q2 revs $311.4M vs. est. $337M; guides year revs $1.3B vs. est. $1.38B; sees year EPS $1.10-$1.25 below est. $2.00; revised the estimated cost of its previously disclosed 2021 restructuring plan to approximately $22.0 million in fiscal 2021; Q2 2021 End of Period Digital Subscribers up 6% year-over-year to an all-time Q2-end high

 

Energy, Industrials and Materials

·     CNBC reports that the White House will call on OPEC and its oil-producing allies to boost oil production. Also, Iraq plans to increase oil production to eight million barrels per day (BPD) by the end of 2027, Iraqi Oil Minister Ihsan Abdul Jabbar told the Iraqi news agency (INA) on Tuesday

·     The American Petroleum Institute (API) said that crude inventories fell 816,000 barrels last week, gasoline inventories fell 1.11M barrels, ahead of EIA weekly data later this morning

·     Chesapeake Energy Corp (CHK) raised its adjusted core income and production guidance for the full year after beating Q2 consensus estimates; also initiated a variable return program to deliver 50% of free cash flow to shareholders on a quarterly basis, payable in the 2022 first quarter; raised its total annual production forecast to 415,000 barrels of oil equivalent per day (boepd) to 435,000 boepd, from previous its range of 410,000 boepd to 420,00 boepd

·     HyreCar (HYRE) 2Q adj EPS ($0.36) vs est. ($0.12) on revs $9.1Mm vs est. $8.9Mm, new drivers to the platform +49%

·     N5 Global (NVEE) 2Q adj EPS $1.34 vs est. $1.00 on revs $$179.5Mm vs est. $174.1Mm; guides FY gr revs $705-727Mm vs est. $699.1Mm, sees FY adj EPS $4.20-4.55 vs est. $4.18

·     Shoals Technologies Group (SHLS) Q2 adj EPS $0.09 vs. est. $0.08; Q2 revs $59.7M vs. est. $59.5M; sees full year revenues to be in range of $230M-$240M, up 31% to 37% and sees full year adjusted net income to be in range of $47M-$51M

 

Financials

·     Coinbase (COIN) trading volume in Q2 was $462B, an increase of 38% compared to Q1, topping the $381.6MM est.; Q2 revs $2.23B vs. est. $1.85B; Q2 adj ebitda $1.15B vs. est. $961.5M; Q2 verified users 68 million vs. est. 63.1 million; qtrly retail monthly transacting users (MTUs) grew to 8.8 million, up 44% from q1 2021; Q2 net income of $1.6 billion, up from $32.3M a year earlier

·     Bottomline Technologies (EPAY) 4Q core EPS $0.27 vs est. $0.26 on revs $122.1Mm vs est. $122.9Mm, subscription revs +15% to $101Mm

·     BrightSpire Capital (BRSP) 8.25M share Secondary priced at $9.00

·     Invesco Ltd. (IVZ) preliminary month-end assets under management (AUM) of $1,528.4 billion, an increase of 0.2% versus previous month-end. Total net inflows were $3.5 billion. The firm achieved net long-term inflows of $1.7 billion this month.

·     Open Lending Corp. (LPRO) Q2 EPS $0.60 vs est. $0.17 on revenue $61.1M vs est. $49M, adj EBITDQA $46.1M; facilitated 46,408 certified loans in the quarter, +148% YoY; reaffirmed previous FY guidance for revenue $184M-$206M, certified loans 181k-206k, and adj EBITDA $125M-$168M

·     Riot Blockchain (RIOT) said in July 2021 produced 444 Bitcoin, an increase of approximately 771% over its July 2020 production of 51 Bitcoin; as of July 31, 2021, riot held approximately 2,687 Bitcoin, all of which were produced by its self-mining operations

·     Truist Financial Corporation (TFC) said its wholly owned bank subsidiary, Truist Bank, has signed a definitive agreement to acquire Service Finance Company, LLC, a leading national provider of point-of-sale (POS) financing solutions for the home improvement industry, for $2 billion

·     Upstart Holdings (UPST) 2Q adj EPS $0.62 vs est. $0.25 on revs $194Mm vs est. $157.8Mm; guides 3Q revs $205-215Mm vs est. $161.6Mm; guides FY revs approx $750Mm from $600Mm prior and vs est. $601.5Mm

 

Healthcare

·     BioCryst Pharmaceuticals (BCRX) has withdrawn its public offering of common stock, previously announced on August 9

·     Health Catalyst (HCAT) 4.245M share Secondary priced at $53.00

·     Inari Medical (NARI) 2Q EPS $0.08 vs est. $0.08 on revs $63.5Mm vs est. $59.6Mm; guides FY revs $250-255 (prior $240-250Mm) vs est. $247Mm

 

Technology, Media & Telecom

·     NortonLifeLock (NLOK) agreed to merge with the antivirus software provider Avast in a stock and cash deal valued at up to $8.6 billion, where Avast holders can choose to receive either $2.37 in cash plus 0.1937 NLOK for each Avast share, or $7.61 a share in cash plus 0.0302 Norton shares.

·     Wix.com (WIX) Q2 EPS loss (-$0.28) vs. est. loss (-$0.37); Q2 revs $316.41M vs. est. $311.66M; Q2 total collections were $342.9M, up 29% y/y; online commerce accounted for 35% of Q2 total collections; sees Q3 revenue $311M-$317M vs. est. $325.32M

·     CuriosityStream (CURI) 2Q EPS ($0.19) vs est. ($0.19) on revs $15.3Mm vs est. $15Mm; guides FY revs at least $71Mm vs est. $71Mm

·     FuboTV Inc. (FUBO) 2Q adj EPS ($0.38) vs est. ($0.51) on revs $130.9Mm vs est. $118.3Mm, says delivered triple-digit yoy total paid subs growth; guides FY revs $560-570Mm vs est. $530.2Mm; triple digit year-over-year growth in total paid subscribers (up 138% year-over-year to 681,721, including 91,291 net subscriber additions in the quarter)

·     Jamf Holdings (JAMF) Q2 revs $86.2M (up 39% YoY) vs. est. $83M; Q2 EPS loss (-$0.14) vs. est. $0.05; sees Q3 revs $92.5M-$94.5M vs. est. $85.1M; sees FY21 revs $357M-4361M vs. est. $338.9M; Q2 ARR year-over-year growth of 38% to $333.0 million as of June 30, 2021; Q2 cash flow provided by operations of $34.0 million; Unlevered free cash flow of $33.1 million, or 38% of total revenue

·     McAfee Corp. (MCFE) Q2 adj EPS $0.28 vs. est. $0.18; Q2 revs $467M vs. est. $434M; sees Q3 revs $461M-$467M vs. est. $442.8M; sees year revs $1.84B-$1.85B vs. est. $1.79B; sees year Ebitda $765M-$775M

·     ON24 Inc. (ONTF) 2Q adj EPS $0.04 vs est. $0.00 on revs $52.1Mm vs est. $51.1Mm; guides 3Q adj EPS loss $0.07-0.09 vs est. loss $0.05, sees 3Q revs $47.5-48.5Mm vs est. $51.2Mm; guides FY revs $201.2-204.2Mm vs est. $209.3Mm, sees FY EPS loss $0.06-0.13 vs est. loss $0.04

·     ShotSpotter (SSTI) 2Q EPS ($0.02) vs est. $0.02 on revs $14.6Mm vs est. $14.9Mm; guides FY revs $60-61Mm vs est. $60.5Mm

·     Super Micro Computer (SMCI) 4Q adj EPS $0.81 vs est. $0.78 on revs $1.07B vs est. $1.02B; guides 1Q adj EPS $0.28-0.48 vs est. $0.55, sees 1Q sales $900-980Mm vs est. $911Mm; guides FY adj EPS at least $3.00 vs est. $3.31

·     ThredUP (TDUP) 2Q EPS ($0.15) vs est. ($0.16) on revs $60Mm vs est. $56Mm, says all time high active buyers of 1.34Mm and orders of 1.22Mm in qtr; guides 3Q revs $60-62mm vs est. $57.4Mm, sees 3Q gr mgn 71.5-72.5%, sees 3Q adj EBITDA mgn loss 19-17%%; guides FY revs $236-241Mm vs est. $231Mm, sees FY gr mgn 71.5-72.5%, sees FY adj EBITDA mgn loss 16-14.5%

·     Unity Software (U) Q2 adj EPS ($0.02) vs est. ($0.13) on revs $273.6M vs est. $242.9M; sees Q3 revs $260M-$265M vs est. $254M, now sees FY revs $1.045B-$1.06B from $1B-$1.015B vs est. $1.01B; announced it will acquire Parsec, a remote desktop and streaming tech company that allows gaming and creative professionals to work from anywhere, for approximately $320M in cash