Early Look

Tuesday, July 13, 2021

Futures	Up/Down	%	Last
Dow	-25.00	0.08%	34,847
S&P 500	0.25	0.02%	4,377
Nasdaq	48.50	0.33%	14,918

 

 

Investors brace for the start of earnings season today, with big banks JPMorgan and Goldman Sachs results expected morning, while beverage giant Pepsi posted results that topped expectations as overnight stock futures look mixed. Dow futures edge lower led by Boeing (BA) after the FAA said that some undelivered Boeing 787 Dreamliners have a new manufacturing quality issue. The tech heavy Nasdaq Comp is looking higher with S&P futures flat. Note with yesterday’s close the S&P 500 posted a record high for the 10th time in the last 12 trading days. In Asian markets, The Nikkei Index rose 149 points to settle at 28,718, the Shanghai Index climbed 18 points to 3,566, and the Hang Seng Index jumped 448 points to 27,963. In Europe, the German DAX is down around -10 points to 15,780, while the FTSE 100 is up a few points to 7,130. Heading into earnings, analysts surveyed by FactSet expect profits for S&P 500 companies to have risen 64% in the second quarter from the same quarter in 2020, a period when business activity was slowed considerably by the coronavirus pandemic.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 15.08 points, or 0.35%, to 4,384.63

·     The Dow Jones Industrial Average rose 126.02 points, or 0.36%, to 34,996.18

·     The Nasdaq Composite climbed 31.32 points, or 0.21%, to 14,733.24

·     The Russell 2000 Index advanced 1.82 points, or 0.08% to 2,281.82

 

Events Calendar for Today

·     6:00 AM ET         NFIB Small Business Optimism for June

·     7:45 AM ET         ICSC Weekly Retail Sales

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

·     8:30 AM ET         CPI Ex: Food & Energy (core) MoM for June…est. 4.9%

·     8:30 AM ET         Consumer Price Index (CPI) YoY for June…est. 0.4%

·     8:30 AM ET         CPI Ex: Food & Energy (core) YoY for June…est. 4.0%

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     2:00 PM ET         Federal Budget for June…est. (-$194.0B)

·     4:30 PM ET         API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: ANGO, CAG, FAST, FRC, GS, JPM, PEP

·     Earnings After the Close: ASPU, KRUS

 

Other Key Events:

·     Bloomberg Business Summit Global, 7/13-7/14 (virtual)

·     BTIG Virtual Software Bus Tour 2021, 7/13

·     Cowen Cannabis Policy Summit on 7/13 (virtual)

 

 

Macro	Up/Down	Last
Nymex	0.31	74.41
Brent	0.37	75.53
Gold	3.10	1,809.40
EUR/USD	-0.0017	1.1844
JPY/USD	-0.11	110.26
10-Year Note	-0.002	1.361%

 

 

World News

·     China data released overnight as the June Trade Balance: $51.53b vs $44.2b consensus; China Jun $ denominated Exports: +38.6% y/y and China June $ denominated Imports: +36% y/y

·     The IEA said in its monthly report that oil markets are likely to remain volatile until there is clarity on OPEC+ production policy. And volatility does not help ensure orderly and secure energy transitions – nor is it in the interest of either producers or consumers

 

Sector News Breakdown

Consumer

·     PepsiCo (PEP) Q2 core EPS $1.72 vs. est. $1.53; Q2 revs $19.22B vs. est. $17.69B; says given the strength of results, now expect our full year organic revenue to increase 6% (previous guidance of mid-single-digit growth) and core constant currency earnings per share to increase 11% (vs. previous guidance of high-single-digit growth)

·     ChargePoint (CHPT) files to sell 12M shares of common stock for holders

·     Poshmark (POSH) upgraded to Buy from Hold at Stifel

·     Copa Holdings (CPA) reports preliminary June traffic down 45.6%, capacity down 41.4%; 78.9% load factor was down 6.2 percentage points

 

Energy, Industrials and Materials

·     Boeing (BA) with news issues as Reuters reports the Federal Aviation Administration (FAA) said that some undelivered Boeing 787 Dreamliners have a new manufacturing quality issue that the manufacturer will fix before the planes will be delivered. The FAA said the issue is “near the nose on certain 787 Dreamliners in the company’s inventory of undelivered airplanes.

·     Brookfield Infrastructure Partners’ (BIP) effort to acquire Inter Pipeline (IPPLF) suffers a blow, as the Alberta Securities Commission rules Inter Pipeline did not engage in any improper defensive tactics to fend off Brookfield’s hostile takeover bid, providing a boost to Pembina Pipeline’s (PBA) friendly takeover offer.

·     First Solar (FSLR) downgraded to Neutral from Buy at Citi

·     Fortive Corporation (FTV) entered into a definitive agreement with Bayard Capital and Accel Partners to acquire ServiceChannel, a global provider of SaaS-based multi-site facilities maintenance service solutions with an integrated service-provider network; sees 2q adj. oper profit margin ahead of prior guidance

·     Gatos Silver Inc. (GATO) says selling 6.5 mln common shares and selling stockholders are selling 1.82 mln common shares

 

Financials

·     JPMorgan (JPM) Q2 EPS $3.78 vs. est. $3.20; Q2 revs $30.5B vs. est. $31,4B

·     AllianceBernstein L.P. (AB) said preliminary assets under management increased to $738 billion during June 2021 from $731 billion at the end of May.

·     Artisan Partners Asset Management Inc. (APAM) prelim assets under management as of June 30, 2021 totaled $175.2 billion. Separate accounts accounted for $89.5 billion of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $85.7 billion.

·     Cohen & Steers, Inc. (CNS) reported preliminary assets under management of $96.2 billion as of June 30, 2021, an increase of $2.0 billion from assets under management at May 31, 2021.

·     Franklin Resources, Inc. (BEN) preliminary month-end assets under management (AUM) of $1,552.1 billion at June 30, 2021, compared to $1,543.5 billion at May 31, 2021. This month’s increase in AUM primarily reflected the positive impact of markets, partially offset by long-term net outflows, inclusive of two equity redemptions

·     Invesco Ltd. (IVZ) reported preliminary month-end assets under management (AUM) of $1,525.0 billion, an increase of 1.3% versus previous month-end. Total net inflows were $8.3 billion. The firm achieved net long-term inflows of $1.9 billion this month

·     Two Harbors (TWO) files to sell 40M shares of common stock

·     Republic Services (RSG) upgraded to Overweight from Equal Weight at Morgan Stanley

 

Healthcare

·     Curaleaf Holdings (CURLF), Green Thumb Industries (GTBIF): watch cannabis names after reports Chuck Schumer, the leader of the U.S. Senate and colleagues will be releasing a discussion draft of a long-awaited bill to federally legalize cannabis on Wednesday, Marijuana Moment has learned. Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) will hold a press conference Wednesday to unveil a preliminary version of what’s being titled the Cannabis Administration and Opportunity Act. https://bit.ly/3wI8P56 

·     Iveric bio (ISEE) 11.65M share Spot Secondary priced at $8.60

·     Biogen (BIIB) and InnoCare Pharma (INCPF) entered into a license and collaboration agreement for orelabrutinib for the potential treatment of multiple sclerosis (MS).

·     Equillium (EQ) announces plans to initiate phase 3 pivotal study of itolizumab in first-line treatment of acute graft-versus-host disease following end-of-phase 1 meeting with the FDA; says on track to initiate study in Q4 2021

·     Acutus Medical (AFIB) reports preliminary Q2 revenue $4.6M-$4.7M vs. est. $4.15M; company increased worldwide installed base of second generation AcQMap consoles to 68 as of June 30, up from 57 as of March 31; files for common stock offering of up to 5.5 mln shares

·     Simulations Plus (SLP) Q3 EPS 18c, in-line with ests; Q3 revs $12.8M vs. est. $14.74M

 

Technology, Media & Telecom

·     Nokia (NOK) said it saw continued strength in the business, improving its expectations for the entire year and now expects to revise upwards its prior outlook ranges for 2021; Nokia plans to provide full details on its Q2 and H1 financial performance and revised full-year 2021 guidance on July 29, 2021

·     VOXX International (VOXX) 1Q EPS $0.11 vs. est. ($0.25) on sales $137.1Mm vs. est. $125Mm; says expects higher supply chain costs and shipping delays to impact 2Q