Early Look

Thursday, May 13, 2021

Futures	Up/Down	%	Last
Dow	-184.00	0.55%	33,324
S&P 500	-13.25	0.34%	4,045
Nasdaq	-28.50	0.22%	12,970

 

 

U.S. stock futures are sliding, extending declines from earlier this week as rising inflation expectations have ramped up following the hottest CPI price increase in 12-years yesterday. The data comes ahead another key inflation report later this morning (8:30 AM) with the April producer price index (PPI) expected to rise as the MoM estimate for April at 0.3% and core PPI MoM est. 0.4% while on a YoY basis, final PPI demand est. 5.9% and PPI YoY core est. 3.7% – which follows the March 2021 PPI reading of 4.2% (which was the highest reading since September 2011’s 4.5%). Market participants have been quick to dump growth stocks amid the rising inflation, but concerns have recently spread to other parts of the market as well. Still, the Fed has insisted that any spike in inflation would be temporary, while Federal Reserve Vice Chairman Richard Clarida said Wednesday the central bank "would not hesitate to act” if necessary to bring inflation Down to its 2% longer-run goal. Markets sold off on Wednesday following the CPI data, with the Dow recording its worst day since January (2 days removed from all-time highs), while the S&P 500 and Nasdaq fell over 2%. Meanwhile, the 10-year Treasury yield is back up at 1.70%, a level not seen since the beginning of April. The Philadelphia Semiconductor (SOX) ended 4.2% lower, pummelled by an escalating coronavirus threat in Taiwan. Focus on Bitcoin prices overnight after Tesla Inc (TSLA) CEO Elon musk said it has suspended the use of bitcoin to purchase its vehicles because of climate concerns, sending Bitcoin prices to as low as $45,000 overnight before rebounding. In Asian markets, The Nikkei Index plunged about -700 point to 27,448, the Shanghai Index fell -33 points to 3,439, and the Hang Seng Index declined -512 points to 27,718. In Europe, the German DAX is falling over -200 points to 14,935, while the FTSE 100 is down by -140 points to 6,860.

Market Closing Prices Yesterday

The S&P 500 Index plunged -89.06 points, or 2.14%, to 4,063.04

The Dow Jones Industrial Average fell -681.50 points, or 1.99%, to 33,587.66

The Nasdaq Composite tumbled -357.75 points, or 2.67%, to 13,031.68

The Russell 2000 Index declined -71.85 points, or 3.26% to 2,135.14

 

Events Calendar for Today

8:30 AM ET Weekly Jobless Claims…est. 490K

8:30 AM EST             Continuing Claims…est. 3.655M

8:30 AM EST             Producer Price Index (PPI) MoM for April…est. 0.3%

8:30 AM EST             PPI Ex: Food & Energy MoM for April…est. 5.9%

8:30 AM EST             Producer Price Index (PPI) YoY for April…est. 0.4%

8:30 AM EST             PPI Ex: Food & Energy YoY for April…est. 3.7%

10:30 AM ET             Weekly EIA Natural Gas Inventory Data

1:00 PM EST             U.S. Treasury to sell $27B in 30-year notes

 

Earnings Calendar:

Earnings Before the Open: AVXL, AZEK, BDR, BFLY, BW, CELH, COIN, CRC, CSU, DYNT, EFOI, EMAN, EYE, GEVO, HAE, KELYA, LQDA, MPLN, NTWK, OPGN, PGTI, SANW, SYBX, TAST, UTZ, VERX, VTNR, YETI

Earnings After the Close: ABNB, AEY, APR, AWH, BBI, BLNK, CAPR, CODX, CRMD, CTEK, CVSI, DASH, DIS, EAST, ETON, FRGI, GDRX, HTGM, HYFM, INFI, IPWR, IZEA, KINS, LAZR, LFMD, LHDX, LIFE, MBII, MCHX, MRNS, NEWR, PLT, PTE, SENS, SHSP, STON, TELA, VOXX

 

Other Key Events:

Bank of America Healthcare Conference (virtual), 5/10-5/13

Citigroup 2021 Chemicals Conference (virtual), 5/13-5/14

JMP Securities’ Insurance Week (virtual), 5/10-5/14

Goldman Sachs Industrials & Materials Conference (virtual), 5/11-5/13

American Society of Gene & Cell Therapy Annual Meeting (ASGCT), 5/11-5/14

 

 

Macro	Up/Down	Last
Nymex	-1.92	64.16
Brent	-1.90	67.42
Gold	-2.10	1,813.50
EUR/USD	-0.0011	1.2061
JPY/USD	-0.03	109.64
10-Year Note	+0.002	1.705%

 

 

Sector News Breakdown

Consumer

Tesla Inc (TSLA) CEO Elon musk said it has suspended the use of bitcoin to purchase its vehicles because of climate concerns, reversing the company’s stance in the face of an outcry from some environmentalists and investors. Bitcoin prices dropped as low as $45,000 overnight after the tweet before rebounding. Musk said Tesla would not sell any bitcoin, and intends to use bitcoin for transactions as soon as mining transitions to more sustainable energy (prices of other crypto names Ethereum, Litecoin, Bitcoin Cash all fell in sympathy)

Boot Barn (BOOT) Q4 EPS 75c vs. est. 47c; Q4 revs $258.9M vs. est. $232.86M; Q4 comp store sales rose 26.9%, comprised of an increase in retail store same store sales of 28.5% and an increase in e-commerce sales of 19.5%; said sees FY22 new unit growth of 10%

Caesar’s (CZR) announced today that the Nevada Gaming Control Board has approved a return to full occupancy, without social distancing, on the casino floors at all nine of the company’s Las Vegas properties

Coupang (CPNG) Q1 EPS loss (68c) compares to loss of ($5.74) last year; Q1 revs $4.21B vs. $2.41B last year; qtrly total net revenues increased 74% on a reported basis and 63% on a constant currency basis; total active customers grew 21% year over year to 16 mln and total net revenues per active customer was up 44% to $262 in q1

Fossil Group (FOSL) Q1 EPS loss (47c) on sales $363M, down 7%; sees FY sales about 12%-16%; for 13-week quarter ending July 3, 2021, worldwide net sales are expected to increase in range of 50% to 55%

GrowGeneration Corp. (GRWG) Q1 EPS 10c vs. est. 7c; Q1 revs $90M vs. est. $87.14M; Q1 comp sales rise 51% YoY; raising the financial outlook for the year and expect 2021 revenues to be $450M-$470M, more than double the company’s sales in 2020; sees year adjusted EBITDA guidance for 2021 is now $54M-$58M

Jack in the Box (JACK) Q2 adj EPS $1.48 vs. est. $1.29; Q2 revs $257.2M vs. est. $250.91M; Q2 same-store sales increased 14.5%, reflecting average check growth of 19.9% and a 5.4% decrease in transactions; raises quarterly dividend 10% to 44c; sees FY commodity cost inflation of approximately 3%, labor cost inflation of 5% to 6%

Poshmark (POSH) 1Q adj EPS ($0.33) vs. est. ($0.42) on revs $81Mm vs. est. $77.2Mm; guides 2Q revs $79-81Mm vs. est. $79.3Mm, sees 2Q adj EBITDA $1.5-2.5Mm vs. est. $2.15Mm

ThredUp Inc. (TDUP) 1Q pro forma EPS ($0.17) vs. est. ($0.16) on revs $56Mm vs. est. $48.4Mm, active buyers 1.29Mm +14% and orders of 1.13Mm +18%; guides FY revs $223-229Mm vs. est. $211Mm

Vroom Inc. (VRM) Q1 EPS loss (57c) vs. est. loss (63c); Q1 revs $591.1M vs. est. $518.19M; sees Q2 EPS loss (58c)-(51c) vs. est. loss (44c); guides Q2 revs $618M-$640M vs. est. $600.81M; for Q1, 15,504 ecommerce units sold, up 96% YoY, Ecommerce revenue of $422.3 million, up 81% YoY, Ecommerce gross profit of $31.8 million, up 123% YoY

Yeti Holdings Inc. (YETI) Q1 adj EPS of 38c beat the 22c est.; Q1 sales jumped 42% to $247.6 million, topping analyst estimates of $220.4 million; and raised year EPS view to $2.28 to $2.32 a share, up from a prior forecast of $2.11 to $2.14 a share and sales growth of 20%-22% from prior 15%-17%

Casper Sleep (CSPR) 1Q EPS ($0.52) vs. est. ($0.55) on revs $127.7Mm vs. est. $124.5Mm; guides 2Q revs $146-153Mm vs. est. $134.1Mm; sees FY revs $580-610Mm vs. est. $596.9Mm

XPeng (XPEV) Q1 EPS loss (13c) vs. est. loss (17c); Q1 revs $450.4M vs. est. $440.38M; Q1 deliveries of vehicles reached 13,340, up 487.4% from 2,271 YoY and an increase of 2.9% from 12,964 in the fourth quarter of 2020

 

Energy, Industrials and Materials

The Colonial Pipeline began to resume fuel shipments around 5 p.m. Eastern time Wednesday. It could take several days for the supply chain to return to normal service. – oil prices still looking o lower however, with WTI -2.85% at $64.19

Deere (DE) downgraded to Market Perform from Outperform at BMO Capital

Avangrid (AGR) announced plans to sell $4B in shares to Qatar Investment Authority and majority shareholder Iberdrola (IBDRY) for $51.40 per share, roughly equal to yesterday’s closing price

NV5 Global (NVEE) 1Q adj EPS $0.88 vs. est. $0.84 on revs $153.1Mm vs. est. $161.3Mm; raises FY adj EPS guide to $4.05-4.45 vs. est. $4.00, sees FY gr revs $695-720Mm vs est. $693Mm

 

Financials

Genworth Financial, Inc. (GNW) announced that it has postponed the previously announced initial public offering (IPO) of its subsidiary, Enact Holdings, Inc.

JPMorgan Chase & Co (JPM), Wells Fargo (WFC), U.S. Bancorp (USB) and other banks plan to share data on customers’ deposit accounts to extend credit to people who have traditionally been barred from getting them, the Wall Street Journal reported. The plan, part of a government-backed initiative, will factor in information from applicants’ checking or savings accounts at other financial institutions

Manning & Napier, Inc. (MN), reported preliminary assets under management as of April 30, 2021 of $21.9 billion, compared with $21.1 billion at March 31, 2021

Silvergate Capital Corporation (SI), the leading provider of innovative financial infrastructure solutions to the digital currency industry, today announced a partnership with Diem Networks U.S. Inc., in which the Company’s wholly-owned subsidiary Silvergate Bank will become the exclusive issuer of Diem USD

 

Healthcare

1Life Healthcare (ONEM) Q1 EPS loss (29c) vs. est. loss (15c); Q1 revs $121.35M vs. est. $116.24M; membership count as of quarter-end was 598,000 compared to 455,000, a 31% increase

American Well Corp. (AMWL) Q1 EPS loss (16c) vs. est. loss (19c); Q1 revs $57.6M vs. est. $58.75M; Q1 total active providers grew to ~81K vs. 24K last year and over 72K last quarter; total visits were ~1.6 million, compared to ~725K; sees FY21 revenue $260M-$270M vs. est. $266.21M

Evolus (EVLS) 1Q EPS $0.16 vs. est. ($0.43) on revs $12.2Mm vs. est. $11.7Mm; says on track for $100Mm FY net revs run-rate in 2Q

Flexion Therapeutics (FLXN) Q1 EPS loss (57c) vs. est. loss (52c); Q1 revs $24.59M vs. est. $24.77M; said Q1 sales marked by solid ZILRETTA sales and important progress with both FX201 and FX301; expects to deliver full-year net sales in the range of $120M-$130M

Marker Therapeutics (MRKR) 1Q EPS ($0.16) vs. est. ($0.15), cash and equiv $64.5Mm as of March 31; believes existing cash and equiv will fund operating expenses and capex into 1Q23

 

Media & Telecom

Bumble (BMBL) 1Q EPS $1.69 vs. est. $0.02 on revs $171Mm vs. est. $164.6Mm, total ARPPU $19.99, total paying users +20% to 2.8Mm; guides 2Q adj EBITDA $42-44Mm vs. est. $42.4Mm, sees 2Q revs $175-178Mm vs. est. $174.4Mm; guides FY adj EBITDA $177-182Mm vs. est. $176Mm, sees FY revs 724-734Mm vs. est. $723.9Mm

PLBY Group (PLBY) Q1 revs $42.7M vs. est. $38.5M; Q1 adjusted EBITDA $6.72M; Revenue grew 34% year-over-year to $42.7M, driven by 114% growth in direct-to-consumer revenue in the comparable period; Q1 net loss was $5.0M, largely due to a $13.8M year-over-year increase in selling and administrative expenses

 

Technology

Amdocs (DOX) 2Q adj EPS $1.13 vs. est. $1.13 on revs $1.049B vs. est. $1.037B; guides 3Q revs $1.04-1.08B vs. est. $1.05B, sees 3Q adj EPS $1.14-1.20 vs. est. $1.18

AppLovin (APP) Q EPS ($0.05) on revs $603.9Mm; guides FY revs $2.65-2.7B and adj EBITDA $680-700Mm

Coherent (COHR) Q2 adj EPS $1.42 vs. est. $1.15; Q2 revs $374M vs. est. $330.14M; special meetings set for June 24, 2021 for ii-vi shareholders and coherent stockholders to vote on transaction

Sonos Inc. (SONO) Q2 adj EPS 31c vs est. -(22c) on sales $332.9M vs est. $248.41M; raised FY21 sales guidance midpoint to $1.65B from $1.55B