Morning Preview: May 18, 2021

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Early Look

Tuesday, May 18, 2021









S&P 500










Stock futures in the U.S. are edging higher, extending its late day Monday afternoon bounce that saw major averages pare losses ahead of key retail related earnings this week and the FOMC minutes from their April 27-28 meeting. Dow component Home Depot (HD) reported stronger-than-expected quarterly results this morning, helping boost shares early while technology stocks outperform after their recent sell-off, as Treasury yields hold steady (10-year at 1.64%). The U.S. dollar fell vs. various currencies, including a 6-year low vs. the Canadian dollar as oil prices touch 2-yr highs and neared multi-month lows versus European currencies. In Asian markets, The Nikkei Index surged 582 points to 28,406, the Shanghai Index gained 11 points to 3,529, and the Hang Seng Index jumped 399 points to 28,593. In Europe, the German DAX is up about 50 points to 15,450, while the FTSE 100 is up about 25 points to 7,060. On Tuesday, investors are set to receive new data on the housing market in the form of the Commerce Department’s April housing starts and building permits report.

Market Closing Prices Yesterday

·     The S&P 500 Index slipped -10.56 points, or 0.25%, to 4,163.29

·     The Dow Jones Industrial Average fell -54.34 points, or 0.16%, to 34,327.79

·     The Nasdaq Composite dipped -50.93 points, or 0.38%, to 13,379.05

·     The Russell 2000 Index gained 2.49 points, or 0.11% to 2,227.12


Events Calendar for Today

·     7:45 AM ET         ICSC Weekly Retail Sales

·     8:30 AM EST      Housing Starts MoM for April

·     8:30 AM EST      Building Permits MoM for April

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     4:30 PM ET         API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: ECC, HD, M, SYPR, WMT

·     Earnings After the Close: AGTI, AGYS, IBEX, QUIK, STE, TCS, TTWO, WE


Other Key Events:

·     Piper Ohio Community Bank Field Trip (virtual), 5/17-5/18

·     RBC Capital Automotive, Industrials & Transportation Conference (virtual), 5/17-5/19

·     Virtual American Thoracic Society Conference, 5/14-5/19

·     Virtual Display Week 2021, 5/17-5/21





















10-Year Note





World News

·     UK unemployment rate in Q1 fell to 4.8%, compared with a forecast of 4.9% as employment surged 84K vs. expectations of 50K, prior -73K; number of people on payrolls rose 97K and vacancies increased 13%; jobless claims fell by 15,100 in April vs -10.1k prior


Sector News Breakdown


·     Home Depot (HD) Q1 EPS $3.86 vs. est. $3.08; Q1 revs $37.5B vs. est. $34.96B; Q1 comp store sales rose 31% vs. est. 21.1% and comp sales in the U.S. increased 29.9% vs. est. 23.5%; home depot 1q average ticket up 10.3%, 1q customer transactions rose 19.3%

·     President Joe Biden will make the case for his $174 billion electric vehicle plan on Tuesday, calling for government grants for new battery production facilities during a visit to a Ford Motor (F) electric vehicle plant in Michigan – Reuters

·     Canoo (GOEV) says it is on track to start production in 2022 and ramp to 15K units in 2023

·     Fisker (FSR) Q21 EPS loss (63c) vs. es loss (1c) YoY on revs $22,000; says the Ocean program remains on track in of the more important reveals of its Q1 earnings report; it ended the quarter with a cash balance of $985M

·     Gan Limited (GAN) Q1 EPS loss (11c) vs. est. loss (2c); Q1 revs $27.8M vs. est. $24.81M; raises FY21 revenue view to $103M-$108M from $100M-$105M (est. $102.2M)



·     Chesapeake (CHK) files $1.5B mixed securities shelf

·     Comstock Resources (CRK) files $1B mixed securities shelf

·     Daqo New Energy (DQ) Q1 revs $256.1M vs. est. $297.97M; polysilicon production volume was 20,185 mt in q1 2021, compared to 21,008 mt in q4 2020 and polysilicon sales volume was 21,471 mt in q1 2021, compared to 23,186 mt in q4 2020



·     Coinbase (COIN) announces proposed private offering of $1.25 billion of convertible senior notes due 2026



·     AcelRX Pharma (ACRX) 1Q EPS ($0.08) vs. est. ($0.08) on revs $500,000 vs. est. $1.06Mm; had $67.3Mm cash and short-term investments at March 31

·     Concert Pharmaceuticals (CNCE) announced that Vertex Pharmaceuticals (VRTX) has purchased the potential future milestones under the companies’ 2017 asset purchase agreement relating to VX-561 for $32M

·     BioNTech SE (BNTX) said it has named Jens Holstein as chief financial officer. Holstein will replace Dr. Sierk Poetting, who will focus on his role as chief operating officer. Holstein comes to the role from MorphoSys AG, where he was CFO

·     Eli Lilly and Company (LLY) and Innovent Biologics said the FDA has accepted for review a Biologics License Application (BLA) for sintilimab injection in combination with pemetrexed and platinum chemotherapy for the first-line treatment of people with non-squamous non-small cell lung cancer


Industrials & Materials

·     Intrepid Potash (IPI) said effective May 17, 2021, co increased its trio price by $20 per ton on all product grades

·     Raven Industries (RAVN) Q1 EPS 26c vs. est. 14c; Q1 revs $112.5M vs. est. $94.35M

·     Watch copper stocks (BHP, FCX, etc.) after Bloomberg reported Chilean copper mining is facing its biggest regulatory threat since the industry took off more than three decades ago. Triggered by the worst social unrest in a generation, Chile just elected an assembly that places the writing of a new constitution largely in the hands of the left wing, with the ruling coalition falling well short of the numbers needed to exercise veto powers.


Technology, Media & Telecom

·     Amazon (AMZN) is weeks into negotiations on a deal to acquire MGM Studios for about $9 billion, industry sources tell Variety

·     Baidu (BIDU) Q1 EPS $1.89 vs. est. $1.67; Q1 revs $4.29B vs. est. $4.23B; Q1 adj Ebitda $901M, adj Ebitda margin 21%; Q1 revs from iQIYI up 4% to $1.22B; sees Q2 revs $4.5B-$5.0B vs. est. $4.67B

·     Altice USA (ATUS) downgraded to Underperform from Neutral at Bank America

·     Twilio (TWLO) entered into a definitive agreement to acquire Zipwhip for approximately $850 million in an equal blend of cash and stock; transaction is expected to close by the end of 2021

·     Desktop Metal (DM) Q1 EPS loss (25c) vs. est. loss (12c); Q1 revs $11.3M vs. est. $9.42M; backs FY21 revenue view of over $100M and FY21 adjusted EBITDA view of ($70M) to ($60M)

·     ExOne (XONE) Q1 EPS loss (29c) vs. est. loss (21c); Q1 revs $13M vs. est. $14.31M; Q1 Gross margin 15.4% vs. 27.1% YoY; reaffirms FY revs guide of +15-25% vs. est. +21.4%

·     Telstra Corp. (TLS) 1Q adj EPS $0.00 vs. est. ($0.04) on revs $55.8Mm vs. est. $50Mm; reaffirms FY revs $283-295Mm vs. est. $287.8Mm

·     Tencent Music Entertainment Group (TME) and Sony Music Entertainment (SONY) announced the multi-year extension of the digital distribution agreement between the two parties


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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