Morning Preview: November 17, 2021

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Early Look

Wednesday, November 17, 2021









S&P 500










U.S. futures are mixed a day after stronger retail sales data and earnings boosted the S&P 500 back above the 4,700 level, once again approaching all-time highs (Nov 5th record 4,718.50), along with strength in large cap technology that pushed the Nasdaq near the 16,000 level, boosted by strength in semiconductor chips (SOX another ATH). Strong earnings results in the retail space again this morning with both Target (TGT) and Lowe’s (LOW) reporting EPS, sales and comp sales beats, following the footsteps of Wal-Mart (WMT) and Home Depot (HD) Tuesday morning. Concerns about the Federal Reserve possibly needing to become more aggressive to combat rising inflation is not impacting U.S> stock markets at this point. In Asian markets, The Nikkei Index declined -0.4% to 29,688, the Shanghai Index rose +).44% to 3,537, and the Hang Seng Index lost -0.25% to 25,650. In Europe, the German DAX is up about 20 points to 16,265, while the FTSE 100 drops about -0.25% to 7,307 on higher inflation data. A fairly quiet day of data with only Housing Starts data at 8:30 AM ET. The dollar extends gains, along with a bounce in gold while oil futures under pressure early.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 18.10 points, or 0.39%, to 4,700.90

·     The Dow Jones Industrial Average rose 54.77 points, or 0.15%, to 36.142.22

·     The Nasdaq Composite gained 120.01 points, or 0.76%, to 15,973.86

·     The Russell 2000 Index advanced 4.09 points, or 0.17% to 2,405.02


Events Calendar for Today

·     7:00 AM ET         MBA Mortgage Applications Data

·     8:30 AM ET         Housing Starts MoM for October

·     8:30 AM ET         Building Permits MoM for October

·     10:30 AM ET      Weekly DOE Inventory Data


Earnings Calendar:

·     Earnings Before the Open: BV, DGLY, LOW, MTOR, SCVL, TGT, TJX

·     Earnings After the Close: ASYS, CRMT, CSCO, HI, HP, IIIV, NVDA, PFLT, PNNT, QUIK, SONO, TTEK, VSCO


Other Key Events:

·     Barclay’s Global Auto Conference (virtual), 11/17-11/18

·     Benchmark Technology Conference (virtual), 11/17

·     Deutsche Bank Gaming, Lodging, Leisure & Restaurants Conference (virtual), 11/16-11/17

·     MKM Partners Best Ideas Conference (virtual), 11/17

·     Needham Annual tech Week (virtual), 11/16-11/18

·     RBC Capital Global Technology, Internet, Media & Telecom Conference (virtual), 11/16-11/17

·     RBC Capital Midstream & Energy Infrastructure Conference in Dallas, 11/16-11/17

·     RBC Capital Global Mining & Materials Conference (virtual), 11/16-11/17

·     STAT Summit 2021 (virtual), 11/16-11/18

·     Stifel 2021 Healthcare Conference (virtual), 11/15-11/17

·     Wolfe Research Annual Healthcare Conference (virtual), 11/17-11/18





















10-Year Note





World News

·     UK inflation soared to its highest level in 10 years thanks to a rise in fuel and household energy costs. The Consumer Prices Index (CPI) rose by 4.2% in the year to October, climbing from 3.1% the previous month, the Office for National Statistics revealed on Wednesday.


Sector News Breakdown


·     Target (TGT) Q3 adj EPS $3.03 vs. est. $2.83; Q3 sales $25.65B vs. est. $24.78B; Q3 comp sales rise 12.7% vs. est. 8.29%; Q3 digital comp sales grew 29%; for Q4 2021, expects high-single digit to low-double digit growth in comparable sales; continues to expect fy operating income margin rate will be 8% or higher

·     Lowe’s (LOW) Q3 EPS $2.73 vs. est. $2.36; Q3 revs $22.92B vs. est. $22.06B; Q3 consolidated comparable sales up 2.2% vs. est. decline -1.3%; boosted its full-year sales guidance, citing strong results through the first three quarters of the year to sales about $95B, above its prior view of about $92B

·     Sono Group (SEV) 10M share IPO priced at $15.00

·     La-Z-Boy Inc. (LZB) 2Q adj EPS $0.85 vs est. $0.73 on revs $576Mm vs est. $540Mm; said demand trends remain strong, our backlog is high and we expect delivered sales to continue to strengthen; continue to expect to deliver full-year consolidated operating margin at or near double digits

·     Nikola (NKLA) files to sell 29.04M shares of common stock for holders

·     On Holding (ONON) announces early lock-up release; stand-off provisions will be released with respect to 10% of the shares subject to such agreements; estimates about 11.8m shares will become eligible for sale in market Nov 19

·     Tattooed Chef, Inc. (TTCF) 3Q EPS ($0.10) vs est. ($0.06) on revs $58.8Mm vs est. $63.95Mm; guides FY revs $210-215Mm vs est. $239.4Mm


Energy, Industrials and Materials

·     Boeing (BA) upgraded to Overweight from Equal-weight at Wells Fargo and raise tgt to $272 from $224 as now sees a positive risk/reward balance with the stock lagging the S&P 500 Index by 30% since its March high

·     Spirit AeroSystems (APR) added to US 1 List at Bank America

·     Iris Energy (IREN) 8.27M share IPO priced at $28.00

·     Comstock Resources, Inc. (CRK) announced it has closed on the sale of the previously announced divestiture of its Bakken shale non-operated properties for total consideration of $154 million, before selling expenses with an effective date of October 1, 2021

·     Ferro Corp. (FOE) Q3 sales rose 43.7% to $294.3M vs. est. $278.43M; Q3 adj EPS $0.35 vs. est. $0.28

·     Oshkosh Corp (OSH) files for mixed shelf; size not disclosed



·     Amazon (AMZN) to ban Visa (V) credit cards in the UK due to the high transaction fees charged; Amazon customers can still use Visa debit cards, Mastercard and Amex credit cards, and Eurocard

·     CubeSmart (CUBE) 13.5M share Secondary priced at $51.00

·     Postal Realty Trust (PSTL) 4.25M share Secondary priced at $17.00

·     AvidXchange Holdings Inc. (AVDX) 3Q EPS ($0.71) on revs $65.2Mm; guides FY revs $244.5-245.5Mm; sees FY adj EBITDA neg $30.1Mm – neg $28.1Mm

·     DLocal Ltd. (DLO) 3Q EPS $0.06 vs est. $0.07 on revs $68.6Mm vs est. $65.1Mm

·     nCino (NCNO) entered into a definitive agreement to acquire SimpleNexus in a stock and cash transaction valued at ~$1.2B. which consists of $240M in cash and ~13.2M shares of nCino common stock.

·     StoneCo Ltd. (STNE) total revenue and income in Q3 of 2021 was R$1,469.6M, an increase of 57.3% from R$934.3M YoY; in financial services, net addition of clients was 293,800 in quarter, reaching a total of nearly 1.4 mln active payment clients



·     Varex Imaging Co (VREX) 4Q adj EPS $0.45 vs est. $0.37 on revs $226Mm vs est. $215.5Mm; guides 1Q adj EPS $0.20-0.40 vs est. $0.22, sees 1Q revs $200-220Mm vs est. $192.3Mm

·     Rockwell Medical (RMTI) said study demonstrates no drug-drug interaction between ferric pyrophosphate citrate and unfractionated heparin

·     Cyclo Therapeutics (CYTH) 1.95M share Spot Secondary priced at $6.00

·     EyePoint (EYPT) 4.03M share Spot Secondary priced at $13.75

·     ViewRay (VRAY) 12.5M share Spot Secondary priced at $5.60


Technology, Media & Telecom

·     iQIYI (IQ) drops after weak Q4 forecast as sees Q4 revenue between RMB 7.08 bln ($1.11 bln) and RMB 7.53 bln ($1.18 bln), below consensus of RMB 7.74 bln ($1.21 bln) saying it experienced significant uncertainty in content scheduling in Q3, and expects the uncertainty to largely remain

·     Roku (ROKU) downgraded to Sell from Neutral at MoffettNathanson

·     Braze (BRZE) 8M share IPO priced at $65.00

·     Dolby Laboratories, Inc. (DLB) 4Q adj EPS $0.58 vs est. $0.56 on revs $285Mm vs est. $299.95Mm

·     SS&C Technologies (SSNC) raises quarterly dividend to $0.20 vs. est. $0.16


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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