Early Look

Wednesday, June 5, 2024

After ending the day with a little rally, pushing major averages higher into the close, U.S. futures are looking to add to those gains. A handful of stocks are moving higher following earnings results last night in tech space including security software co CrowdStrike (CRWD) and Hewlett Packard Enterprises (HPE). Wall Street ended Tuesday’s session slightly higher, paring some losses, with rate-sensitive real estate stocks leading sector gains. That came on the heels of initial losses after data showed U.S. job openings in April fell to their lowest in more than three years, opening the door for rate cuts by the Fed. We get another reading on the jobs market this morning with the May ADP Private Payroll report at 8:15 AM. In Asian markets, The Nikkei Index fell -347 points to 38,490, the Shanghai Index fell -25 points to 3,065, and the Hang Seng Index dipped -19 points to 18,424. In Europe, the German DAX is up 137 points to 18,542, while the FTSE 100 gains 20 points to 8,252, led higher by technology stocks, a day before the European Central Bank is expected to deliver a 25bps interest-rate cut. Individual stocks news little quiet outside of a few stories (see below), as macro-economic data dominates headlines today.

• The Dow Jones Industrial Average rose 140.06 points, or 0.36%, to 38,711.09.
• The Nasdaq Composite gained 28.38 points, or 0.17%, to 16,857.05.
• The Russell 2000 Index declined -25.74 points, or 1.25% to 2,033.94.

• 8:15 AM ET                  ADP Private Payrolls for May…est. +175K (prior 192K)
• 9:45 AM ET                  S&P Global Composite PMI, May-Final…prior 54.4
• 9:45 AM ET                  S&P Global Services PMI, May-Final…prior 54.8
• 10:00 AM ET                ISM Non-Manufacturing Index for May…est. 50.8 (prior 49.4)
• 10:30 AM ET                Weekly DOE Inventory Data

• Earnings After the Close: BASE CHPT CXM FIVE GEF IDT SMAR SMTC VSCO

• Deutsche Bank 21st Annual Global Consumer Conference, 6/4-6/6, in Paris
• Deutsche Bank 15th Annual Global Materials & Industrials Conference, 6/5-6/6, in New York
• European Association for the Study of the Liver (EASL) annual meeting, 6/5-6/8, in Milan, Italy
• Goldman Sachs Annual European Financials Conference, 6/4-6/6, in Madrid
• Jefferies Healthcare Conference, 6/5-6/6, in New York
• NAREIT Conference 2024, 6/4-6/6, in New York
• RBC Capital Global Energy, Power & Infrastructure Conference, 6/4-6/5, in New York
• RBC Capital 2024 Investor Sessions for Canadian REITs and REOCs, 6/5-6/6, in New York
• TD Cowen 8th Annual Future of the Consumer Conference, 6/4-6/5, in New York
• TD Cowen Financials, Payments & Fintech Summit, 6/5-6/7, in Miami, FL
• Wedbush Gaming Company Conference, 6/4-6/5 (virtual)
• William Blair 44th Annual Growth Stock Conference, 6/4-6/6, in Chicago, IL
• China Imports/Exports/Trade Balance data for May

• Hibbett (HIBB) Q1 EPS $2.67 vs. est. $2.63; Q1 revs $447.16M vs. est. $453.91M; Q1 comp sales fell (-5.8%); said will not be providing or updating previously issued guidance in light of pending transaction with JD Sports.
• PVH Corp. (PVH) Q1 adj EPS $2.45 vs est. $2.16 on revs $1.952B vs est. $1.93B; sees Q2 revs down 6-7% vs est. -6.25%, adj EPS approx $1.98 vs est. $2.20; guides FY revs down 6-7% vs est. -5.87%, op mgn approx flat vs 10.1%, adj EPS $11.00-11.25 vs prior $10.75-11.00 and est. $10.99; said Q1 Tommy Hilfiger revenue decreased 10% y/y.
• Sportsman Wearhouse (SPWH) Q1 adj EPS loss (-$0.47) vs. est. loss (-$0.35); Q1 revs fell -8.7% y/y to $244.24M vs. est. $249.48M; Q1 comp same store sales decreased (-13.5%) vs. est. loss (-11.7%); Q1 adj EBITDA loss -$8.74M, +57% y/y, vs. the est. loss -$5.37M; reaffirming its guidance for fiscal year 2024.
• Stitch Fix Inc. (SFIX) Q3 EPS ($0.18) vs est. ($0.25), adj EBITDA 6.7Mm vs est. $(2.37Mm); sees Q4 revs $312-322Mm vs est. $306.57Mm, adj EBITDA $5-10Mm vs est. $3.565Mm; sees FY revs $1.33-1.34B vs est. $1.307B and adj EBITDA $25-30Mm vs est. $14Mm.
• US Foods (USFD) board has authorized a $1B share buyback program.

• Cummins (CMI), Paccar (PCAR): Watch heavy duty truck makers after April Class 8 Truck orders came in at 23.2K, up 46% m/m after 15.6K prior and a March result below 20k as well.
• The U.S. Federal Aviation Administration (FAA) said it issued a license for SpaceX’s fourth flight of its Starship rocket system, another test mission along the company’s path to building a reusable satellite launcher and moon lander.
• Spirt AeroSystems (SPR) CFO Mark Suchinski to step down and be replaced by Irene Esteves.
• Suncor Energy Inc. (SU) files for mixed shelf; size not disclosed.
• Thor Industries (THO) Q3 EPS $2.13 vs. est. $1.85; Q3 revs $2.80B vs. est. $2.73B; lowers FY24 EPS view to $4.50-$4.75 from $5.00-$5.50 (est. $5.19) and lowers FY24 revenue to $9.8B-$10.1B from $10.0B-$10.50B (est. $10.17B).

• eBay (EBAY) to stop taking American Express (AXP) card after fee dispute- Bloomberg News reported.

• Medifast (MED) downgraded to Underperform from Neutral at DA Davidson.

• Guidewire Software (GWRE) Q3 adj EPS $0.26 vs. est. $0.13; Q3 revs rose 16% y/y to $240.7M vs. est. $231.3M; sees Q4 revenue $279M-$287M vs. est. $284.9M and sees Q4 ARR $856M-$864M; posted Q3 subscription and support revenue rising 28% y/y to $138.0M and license revs rose 1% y/y to $56.2M; raises FY24 revenue view to $968M-$976M from prior $957M-$967M (vs. est. $965.1M) and sees FY24 ARR $856M-$864M.
• HPE Inc. (HPE) Q2 adj EPS $0.42 vs. est. $0.39; Q2 revs rose 3.3% y/y to $7.20B vs. est. $6.82B; guides Q3 EPS $0.43-$0.48 vs. est. $0.46 and revs $7.4b-$7.8B vs. est. $7.45B; sees FY revs adj for currency 1%-3%, up from prior 0%-2% and raises FY adj EPS to $1.85-$1.95, from $1.82-$1.92 (est. $1.87); Q3 adj gross margin 33.1% vs. 36.2% y/y.
• Verint Systems (VRNT) Q1 adj EPS $0.59 vs est. $0.54 on revs $221.277Mm vs est. $214.53Mm; guides FY revs $933Mm +/-2% vs est. $932.8Mm, adj EPS $2.90 at revs guide mid-point vs est. $2.88.
• AT&T (T) mobile customers have reported problems making phone calls on Tuesday. A company spokesman said in February that the outage was caused by “an incorrect process used as we were expanding our network,” and that it wasn’t the result of a cyberattack.
• 3D Systems (DDD) says they are rapidly expanding market-leading solution portfolio to address all major facets of dentistry, including alignment, protection, repair, and partial/full replacement of teeth.
• HashiCorp (HCP) and AWS sign strategic collaboration agreement to expand joint product and go-to-market initiatives.
• Intel Corporation (INTC) and Apollo (APO) announced a definitive agreement under which Apollo-managed funds and affiliates will lead an investment of $11B to acquire from Intel a 49% equity interest in a joint venture entity related to Intel’s Fab 34.
• Yext (YEXT) to cut the workforce by about 12% of full-time employees.