Early Look

Friday, November 19, 2021

Futures	Up/Down	%	Last
Dow	-191.00	0.53%	35,620
S&P 500	-11.25	0.23%	4,690
Nasdaq	52.50	0.32%	16,533

 

 

U.S. futures are looking mixed with the Dow and S&P 500 pointing to lower opens, while the Nasdaq Composite remains the one constant, extending record highs as large cap tech continues to push this market higher, led by Apple, Amazon, Alphabet (GOOGL), Nvidia, Microsoft (MSFT) and AMD, with each ending at or near record highs of their own on Thursday. Treasury yields tumble further overnight, with the benchmark 10-yr down about 4 bps below 1.55%; the euro plunging below 1.13 vs. the dollar to 16-month lows of 1.1284 (-0.7%); S&P futures are only down a few points at 4,695, while Nasdaq futures extending to new ATH up +0.4% at 16,550. Oil prices also sharply lower, down over 3% and on track for a third weekly decline. In Asian markets, The Nikkei Index rose +0.5% to 29,745, the Shanghai Index gained 1.13% to 3,560, and the Hang Seng Index dropped over 1% to 25,049. In Europe, the German DAX is down over -50 points to 16,165, while the FTSE 100 is down -0.6% to 7,210. In Washington, a voting delay on President Joe Biden’s $1.75 trillion social spending bill in the House occurred, along with renewed fears for a fourth wave of coronavirus infections in Europe, with Germany noting they may have to take additional measures. The Congressional Budget Office (CBO) said the spending bill would add around $367 billion to the deficit over the next ten years, putting the spending bill in at least some doubt given the Democrats narrow majority in the lower chamber.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 15.87 points, or 0.34%, to 4,704.54

·     The Dow Jones Industrial Average fell -60.10 points, or 0.17%, to 35,870.95

·     The Nasdaq Composite climbed 72.14 points, or 0.45%, to 15,993.71

·     The Russell 2000 Index declined -13.42 points, or 0.56% to 2,363.59

 

Events Calendar for Today

·     1:00 PM EST       Baker Hughes Weekly rig count data

 

Earnings Calendar:

·     Earnings Before the Open: BKE, DXLG, FL

 

 

Macro	Up/Down	Last
Nymex	-2.34	76.67
Brent	-2.48	78.76
Gold	2.60	1,866.60
EUR/USD	-0.0079	1.1288
JPY/USD	-0.27	113.96
10-Year Note	-0.039	1.548%

 

 

World News

·     The Congressional Budget Office (CBO) is out with its estimate for President Biden’s Build Back Better Act. The $1.75T social spending measure is the second installment of the administration’s economic agenda after an infrastructure package passed earlier this week. The federal agency found that the Build Back Better Act would contribute $367B to the deficit over 10 years, though that doesn’t include $207B in revenue which could result from spending $80B on tax enforcement efforts at the IRS. Adding in those potential gains, the bill’s 10-year deficit still totals $160B

 

Sector News Breakdown

Consumer

·     Beacon Roofing (BECN) 4Q EPS $1.21 vs est. $1.54 on revs $1.88B vs est. $1.88B; gr margin 27.1% vs est. 27%

·     Caleres (CAL) Q3 EPS $1.59 vs. est. $1.14; Q3 revs $784.2M; raises year EPS outlook to $3.80-$3.90 from prior $3.25-$3.50; posted a 26.3% sales increase in the Famous Footwear segment; a 12.3% sales increase in the Brand Portfolio segment; DTC sales represented 73.5% of total net

·     Dillard’s (DDS) announced that the Board of Directors declared a special dividend of $15.00 per share on the Class A and Class B Common Stock of the company

·     Farfetch (FTCH) 3Q adj EPS ($0.14) vs est. ($0.36) on revs $583Mm vs est. $591.3Mm; sees FY adj EBITDA approx $5Mm vs est. $15.7Mm, sees FY digital platform GMV growth about +33%

·     Ross Stores (ROST) Q3 EPS $1.03 vs. est. $0.78; Q3 revs rise 19% to $4.6B vs. est. $4.33B; sees FY EPS $4.65-$4.75, up from prior $4.20-$4.38 and est. $4.53; boosts FY comp sales view to 12%-13% from 10%-11%; Q4 comp sales rose 14%

·     William Sonoma (WSM) 3Q adj EPS $3.32 vs est. $3.14 on revs $2.05B vs est. $1.98B, comparable brands revs +16.9%; sees FY revs +22-23% vs est. +20.1%, for long-term sees annual revs growth +mid-high-single digits

·     Arrival SA (ARVL) 32.374M share Secondary priced at $9.50

·     Rover Group (ROVR) 11M share Secondary priced at $10.00

 

Energy, Industrials and Materials

·     EQT Corporation (EQT) 10.974M share Spot Secondary priced at $21.10

·     Ecovyst (ECVT) 8M share Secondary priced at $9.50

·     Snow Lake Resources (LITM) 3.2M share IPO priced at $7.50

·     Kornit Digital (KRNT) 2.65M share Secondary priced at $151.00

·     Ingersoll-Rand (IR) upgraded to Overweight from Equal Weight at Wells Fargo

·     Mammoth Energy (TUSK) said a subsidiary has been awarded a contract by a major utility to help build electric-vehicle charging station infrastructure

·     ESCO Technologies Inc. (ESE) 4Q adj EPS $0.85 vs est. $0.78 on revs $205.5Mm vs est. $201.2Mm; sees 1Q EPS flat to slightly down YoY; guides FY sales $810-830Mm vs est. $801Mm

·     Haynes International, Inc. (HAYN) 4Q EPS $0.20 vs est. $0.07 on revs $95.3Mm vs est. $93Mm; sees 1Q revs and EPS similar to 4Q

·     Matthews Int’l (MATW) Q4 adj EPS $0.80 vs. est. $0.75; Q4 sales $438.8M vs. est. $393.7M; Operating cash flow of $56.0 million; debt reduction of $28.8 million; Q4 adj Ebitda fell -19% YoY to $52M; sees modest decline in FY22 consolidated adj. ebitda

·     SAIC (SAIC) awarded $348 million in space and intelligence community contracts in fiscal year 2022 third quarter

·     Woodward (WWD) Q4 adj EPS $0.92 vs est. $0.86 on revenue $570M vs est. $605.1M; guides FY22 EPS $3.55-$3.95 vs est. $3.99, sales $2.45B-$2.65B vs est. $2.54B as they anticipate end markets and supply chain disruptions to improve in FY22 but uncertainty and volatility around the pace of the recovery is expected to persist

 

Financials

·     Intuit (INTU) 1Q adj EPS $1.53 vs est. $0.97 on revs $1.88B vs est. $1.81B; guides 2Q revs +73-74% vs est. +47%, sees 2Q adj EPS $1.84-1.88 vs est. $1.47; raises FY revs guide to +26-28% (+18-20% ex MailChimp) vs est. +15.8%

·     UWM Holdings (UWMC) shares rise 25% after saying SFS Holding, its principal shareholder, has terminated the previously announced secondary offering of Class A Common shares and concurrent stock repurchase effective immediately, according to its statement; the company intends to accelerate its previously announced buyback program and defer its plans to increase public float to a later date

·     FinWise Bancorp (FINW) 3.5M share IPO priced at $10.50

 

Healthcare

·     Connect Biopharma Holdings (CNTB) reports positive top-line results from the global phase 2 clinical trial of CBP-201 in patients with moderate-to-severe atopic dermatitis

·     Alignment Healthcare (ALHC) 8M share Secondary priced at $21.00

·     Privia Health (PRVA) 6M share Secondary priced at $29.00

 

Technology, Media & Telecom

·     Applied Materials (AMAT) 4Q adj EPS $1.94 vs est. $1.95 on revs $6.12B vs est. $6.35B; adj gr margin 48.2% vs est. 48%; sees Q1 EPS $1.78-$1.92, below consensus $2.01 and sees Q1 revenue approximately $6.16B plus or minus $250M vs. est. $6.5B

·     American Software (AMSWA) Q2 adj EPS $0.12 vs. est. $0.07; Q2 revs $31.2M vs. est. $29.69M; Subscription fees were $10.4M, up 49% YoY and software license revenues were up slightly to $0.8 million compared to $0.5 million for the same period last year

·     Globant SA (GLOB) Q3 adj EPS $0.98 vs est. $0.93 on revenues that increases 65% YoY to $341.8M vs est. $326.9M; sees Q4 adj EPS at least $1.01 vs est. $0.97 on revenue at least $359M vs est. $341M

·     Nuance Comm (NUAN) 4Q adj EPS $0.09 vs est. $0.18 on revs $333.1Mm vs est. $352.9Mm; sees Microsoft merger closing by end-1q, early 2q

·     Palo Alto networks (PANW) 1Q adj EPS $1.64 vs est. $1.57 on revs $1.2B vs est. $1.2B; guides 2Q revs $1.265-1.285B vs est. $1.272B, sees 2Q adj EPS $1.63-1.66 vs est. $1.64

·     Workday (WDAY) Q3 EPS $1.10 vs. est. $0.87’ Q3 revs rose 20% YoY to $1.33B vs. est. $1.31B; raising our fiscal 2022 guidance for subscription revenue to a range of $4.533 billion to $4.535 billion, growth of 20%; 24-Month Subscription Revenue Backlog of $7.12B, Up 19.7% YoY; total Subscription Revenue Backlog of $10.97 Billion, Up 23.7% YoY

·     Datadog (DDOG) upgraded to outperform from sector perform at RBC Capital

·     SEMrush (SEMR) 5M share Secondary priced at $20.50