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Early Look
Thursday, April 21, 2022
Futures |
Up/Down |
% |
Last |
Dow |
215.00 |
0.62% |
35,296 |
S&P 500 |
35.25 |
0.80% |
4,491 |
Nasdaq |
159.50 |
1.14% |
14,163 |
Stock futures in the U.S. pointing to a higher open, currently trading at overnight highs. After the tech-heavy Nasdaq declined Wednesday following NFLX’s first drop in subscribers in a decade (sending shares down over 35% and pressuring high multiple tech/growth stocks), EV maker TSLA shares surge overnight more than 7% after Q1 results top expectations led by strong margins. Most S&P 500 sectors ended higher on Wednesday, led by Industrials (led by transports), Healthcare and several defensive ones including Utilities, Staples, and REITs. Transports look to a good start today as well after airline UAL provided upbeat profit outlook for next quarter and rail CSX results topped estimates. The U.S. 10-Year Treasury yield hit highs around 2.9810% yesterday, but has since reversed, and is now in the 2.87% area. In Asian markets, Chinese indexes resume slide and yuan hits a fresh 6-month low after President Xi’s speech; the Nikkei Index jumped 335 points or 1.23% to 27,553, the Shanghai Index fell -71 points or 2.26% to 3,079, and the Hang Seng Index fell -262 points or 1.25% to 20,682. In Europe, the German DAX is up 175 points or 1.2% to 14,540, while the FTSE 100 is little changed around the 7,625 level. Another busy day of corporate earnings on deck as we just start heating up, while investors get a moderate doe of economic data with weekly jobless claims, Philly Fed survey and Leading Indicators. Bitcoin prices up 2% to $42,200 in a bounce back week, while the buck takes a breather.
Market Closing Prices Yesterday
- The S&P 500 Index dropped -2.76 points, or 0.06%, to 4,459.45
- The Dow Jones Industrial Average rose 249.59 points, or 0.71%, to 35,160.79
- The Nasdaq Composite declined -166.59 points, or 1.22%, to 13,453.07
- The Russell 2000 Index advanced 7.42 points, or 0.37% to 2,038.19
Economic Calendar for Today
- 8:30 AM ET Weekly Jobless Claims…est. 180K
- 8:30 AM EST Continuing Claims…est. 1.455M
- 8:30 AM ET Philly Fed Index for April…est. 21.0
- 10:00 AM ET Leading Indicators m/m for March…est. +0.3%
- 10:30 AM ET Weekly EIA Natural Gas Inventory Data
Earnings Calendar:
- Earnings Before the Open: AAL. ALK, AN, BANC, BKU, BX, COLB, DGX, DHR, DOW, EWBC, FCX, GPC, HBAN, HOMB, HRI, IIIN, KEY, MMC, NEE, NUE, PM, POOL, SASR, SNA, SNV, SON, STBA, T, TPH, TSCO, UNP, WSO
- Earnings After the Close: ASB, BJRI, CSTR, FE, FOR, GBCI, HTH, ISRG, OZK, PPG, SAM, SIVB, SNAP, UFPI, WAL, XM
Macro |
Up/Down |
Last |
Nymex |
1.13 |
103.32 |
Brent |
1.13 |
107.93 |
Gold |
-7.60 |
1,948.00 |
EUR/USD |
0.0066 |
1.0916 |
JPY/USD |
0.06 |
127.93 |
10-Year Note |
+0.039 |
2.875% |
World News
- The bull-bear spread in the American Association of Individual Investors (AAII) weekly survey was -25 vs -32.6 last week; Bulls rise to 18.9% from 15.8%, Neutrals rise to 37.3% from 35.7% and Bears fall to 43.9% from 48.4%
- China Pres Xi said the global economic recovery is fragile & weak, efforts are needed to stabilize global supply chains, China’s economy is resilient & the sound L/T term trend hasn’t changed, China will still open the economy, countries should stop their cold war mentality & avoid confrontation, China is opposed to 1 sided sanction, a decoupling & shutting off supply with pressure tactics by any country won’t work
- President Vladimir Putin said Russia has “liberated” Ukraine’s Mariupol, apart from the massive Azovstal steel plant, which he ordered blockaded. Kyiv has called for urgent talks to save the lives of the fighters and civilians in Mariupol
- Eurozone March CPI +2.4% for Month; +7.4% on Year; Eurozone March Core CPI +1.2% on Month; +2.9% on Year
- The U.S. Centers for Disease Control and Prevention has asked the Justice Department to move forward with an appeal of a ruling that lifted a travel mask mandate – CNBC
Sector News Breakdown
Consumer
- Tesla Inc. (TSLA) shares rise 6%; 1Q EPS $3.22 vs est. $2.26 on revs $18.8B vs est. $17.8B; automotive gross margin 32.9% vs 26.5% year ago; chip shortages and covid been weighing on supply chain; sees factories likely to run below-capacity thru rest of 2022; says over multi-year horizon expects to achieve 50% avg annual growth in vehicle deliveries; Q1 FCF $2.2B (watch shares of other EV stocks NKLA RIVN LCID NIO and charging BLNK CHPT on results)
- Carvana (CVNA) shares fell -5%; Q1 EPS loss ($2.89) vs. est. loss ($1.43); Q1 revs $3.497B vs. est. $3.4B; Q1 retail units sold totaled 105,185 an increase of 14%; expects to close acquisition of Adesa in May; expect to continue to gain significant market share in 2022 through continued growth in retail units and revenue; filed to sell up to $1 bln in stock
- Scotts Miracle-Gro (SMG) downgraded to Equal Weight from Overweight at Barclays
- Sleep Number (SNBR) 1Q EPS $0.09 vs est. $0.33 on revs $537Mm vs est. $534.4Mm, gross margin 57.3%; guides FY EPS $5.00-6.00 vs est. $5.77, sees sales +low-dbl-digit vs est. +7.6%
- United Airlines (UAL) shares rise 3% on upbeat outlook; Q1 EPS loss (-$4.24) and revs fell -21% to $7.6B vs. est. $7.68B; reported Q1 cost per available seat mile of up 21%, and CASM ex of up 18%, compared to q1 2019; expects to return to profitability in q2 on a robust operating revenue outlook; expects to be solidly profitable in q2 with approximate 10% operating margin, despite cost headwinds driven by recent fuel price spike
- Dave & Buster’s Entertainment Inc. (PLAY) said in a filing that Kevin Sheehan will have his current position of interim chief executive extended; said Mr. Sheehan’s term is indefinitely extended until a permanent CEO is appointed, or until the new agreement is terminated
Energy
- Chevron (CVX) downgraded to Sector Perform from Outperform at RBC Capital
- Exxon Mobil (XOM) upgraded to Outperform from Sector Perform at RBC Capital
- Kinder Morgan (KMI) Q1 EPS $0.32 vs. est. $0.28; Q1 revs $4.29B vs. est. $3.62B; budgeted to generate 2022 DCF of $4.7B and adjusted ebitda of $7.2B; raises dividend
- Southwestern Energy (SWN) upgraded to Overweight from Neutral at Piper Sandler
Financials
- Banner Corp. (BANR) 1Q EPS $1.27 vs est. $1.10 on revs $138.1Mm vs est. $118.67; declares qtrly cash dividend of $0.44/share
- Cohen & Steers (CNS) 1Q adj EPS $1.04 vs est. $1.02 on revs $154.2Mm vs est. $157.3Mm
- Equifax (EFX) Q1 adj EPS $2.22 vs. est. $2.14; Q1 revs $1.36B vs. est. $1.33B; sees Q2 EPS $1.98-$2.08 on revs $1.31B-$1.33B vs. est. $2.15/$1.32B; lowers year EPS view to $8.00-$8.30 (from prior $8.50-$8.80) and vs. est. $8.63 and sees year revs $5.15B-$5.25B vs. est. $5.29B; posts 9th consecutive quarter of double-digit growth
- First industrial (FR) Q1 FFO $0.53 vs. est. $0.52; guides 2022 FFO $2.10-$2.20 vs. est. $2.15
- Globe Life (GL) 1Q op EPS $1.70 vs est. $1.72; sees FY op EPS $7.85-8.25 vs est. $8.08; expects to incur about $71Mm covid life claims for FY at mid-pint of guidance based on range of $2.5-3.5Mm covid life claims per 10,000 deaths
- KeyCorp (KEY) Q1 EPS 45c vs. est. 49c; Q1 revs $1.7B vs. est. $1.74B; Q1 CET1 capital ratio 9.4%; reports Q1 book value per share $14.43
- Umpqua Holdings (UMPQ) 1Q op EPS $0.36 vs est. $0.39 on NII $228.8Mm vs est. $230.2Mm
- SL Green (SLG) 1Q FFO/share $1.65 vs est. $1.64 on revs $188Mm vs est. $157.5Mm; announced that it has entered a contract to purchase 450 Park Avenue for $445.0 million from Oxford Properties
- Texas Capital Bancshares (TCBI) Q1 EPS $0.69 vs. est. $0.73; non-interest income for the first quarter of 2022 decreased $11.2 million, or 36%, compared to the fourth quarter of 2021; Q1 net intere4st income $183.5M
- Triumph Bancorp (TBK) Q1 EPS $0.93 vs. est. $0.99; Q1 revs $111.2M vs. est. $115.37M; Q1 net charge-offs .03%, Q1 CET1 capital ratio 10.4% and Q1 tangible book value per share $22.75; net interest income $100.1M
Healthcare
- Danaher (DHR) Q1 adj EPS $2.76 vs. est. $2.66; Q1 revs $7.7B vs. est. $7.54B; for q2 2022, co anticipates that non-Gaap base business core revenue growth will be in mid-single digit percent range; for full year 2022, company continues to expect non-Gaap base business core revenue growth will be in high-single digit percent range
- Quest Diagnostics (DGX) Q1 adjusted EPS $3.22 vs. est. $2.97; Q1 revs $2.61B vs. est. $2.63B; said off to a good start in 2022, as we drove strong year-over-year growth in our base business, which excludes COVID-19 testing
- Tenet Healthcare (THC) Q1 adj EPS $1.93 vs. est. $1.04; Q1 revs $4.745B vs. est. $4.71B; sees Q2 adjusted EPS $1.18-$1.45 vs. est. $1.54 and revs $4.8B-$5B vs. est. $4.91B; sees FY22 adjusted EPS $5.85-$7.03 vs. est. $6.56 and sees FY22 revs $19.5B-$19.9B vs. est. $19.85B
Industrials & Materials
- Alcoa (AA) shares fall -6%; 1Q adj EPS $3.06 vs est. $2.93 on revs $3.3B vs est. $3.45B; says has made alternate plans for securing limited number of materials purchased from Russian suppliers for remainder of 2022 into the future; expects total alumina shipments to remain unchanged between 14.2-14.4Mm metric tons in 2022
- BHP Group (BHP) backs FY22 iron ore output 249-259MT, down 2% to up 2% from last year, while cuts FY22 copper output view to 1,570-1,620kt from 1,590-1,760kt
- CSX Corp. (CSX) Q1 EPS $0.39 vs. est. $0.37; Q1 revs rose 21% to $3.41B vs. est. $3.3B; qtrly operating ratio increased by 150 basis points to 62.4%, including impacts of acquisition of quality carriers and higher fuel prices; targeting full-year double digit revenue and operating income growth, excluding impacts from the Virginia real estate transaction in 2022
- Dow Inc. (DOW) Q1 operating EPS $2.34 vs. est. $2.05; Q1 revs rose 28% to $15.26B vs. est. $14.54B; says looking ahead, we see strong demand across our end-markets; Q1 packaging & specialty plastics segment net sales in quarter were $7.6B, up 25% versus year-ago period and industrial intermediates & infrastructure segment net sales in quarter were $4.5B, up 25% y/y
- Knight-Swift Transport (KNX) 1Q adj EPS $1.61 vs est. $1.26 on revs $1.82B vs est. $1.76B; guides FY adj EPS $5.10-5.30 vs est. $5.24
- Landstar System (LSTR) Q1 EPS $3.34 vs. est. $3.05; Q1 revs rose 53% to $1.97B vs. est. $1.83B; sees Q2 revs $2.0B-$2.05B vs. est. $1.8B; expect revenue per load on loads hauled via truck in q2 2022 to be in a mid-teen percentage range y/y; sees Q2 EPS $3.22-$3.32 vs. Est. $2.78; expect number of loads hauled via truck to increase over the 2021 second quarter in a range of 11%-13%
- Steel Dynamics (STLD) 1Q adj EPS $6.02 vs est. $5.66 on sales $5.6B vs est. $5.32B, qtrly steel shipments 2.9Mm tons; raises 1Q cash dividend by 31% and repurchased $389Mm common stock; remains confident market conditions are in place for domestic steel consumption to continue to be strong this year and into 2023; sees four lines begin operating mid-2023
- Valmont Industries (VMI) 1Q adj EPS $3.07 vs est. $2.44 on revs $980.8Mm vs est. $888.1Mm; qtr end backlog record $1.8B; raises qtrly dividend from $0.50/share to $0.55/share; guides FY adj EPS $13.00-13.50 vs est. $12.66
Technology, Media & Telecom
- AT&T (T) Q1 EPS $0.77 vs. est. $0.75; reports rev $38.1B vs. est. $29.5B; Q1 includes about $300 mln in 3g/other timing impacts; total U.S. Wireless net adds of 5.5 mln in qtr; qtrly U.S. Prepaid net additions of 116,000; qtrly U.S. Postpaid net additions of 965,000; fiber subscribers of 6.3 mln; qtrly and fiber ARPU $60.41; HBO max and HBO added 12.8M subs, up 3M sequentially
- Lam Research (LRCX) 3Q adj EPS $7.40 vs est. $7.51 on revs $4.06B vs est. $4.25B; guides 4Q revs $3.9-4.5B vs est. $4.5B
- Crown Castle (CCI) 1Q FFO/share $1.87 vs est. $1.80 on revs $1.74B vs est. $1.69B; guides FY adj FFO/share $7.36 vs est. $4.36
- Spotify (SPOT) – the Obamas to leave Spotify, seek multimillion-dollar deal elsewhere – Bloomberg News reported
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