Early Look

Tuesday, June 6, 2023

Futures	Up/Down	%	Last
Dow	-42.00	0.12%	33,577
S&P 500	-4.50	0.11%	4,276
Nasdaq	-14.50	0.10%	14,574

 

 

S&P futures down a modest -0.1% at 4,276 after trading in narrow 12-point range overnight (4,285 high and 4,273.75 low) as stocks continue to hold recent upside gains. There is no major US economic data today and no Fed speakers as they remain in their “blackout” period ahead of next week’s FOMC policy meeting. All three major U.S. stock indexes dipped on Monday, with shares of Apple turning lower late in the session after the company unveiled a raft of new products and features at a conference, pushing shares of the Dow, S&P and Nasdaq lower. The tech behemoth unveiled among other things an augmented-reality headset called the Vision Pro (at $3,499 to start), but Apple did not make any major announcements about generative AI products like ChatGPT. Economic data on Monday showed new orders for U.S.-made goods rose for a second month in April, boosted largely by defense spending. The overall manufacturing industry continued to struggle. In Asian markets, The Nikkei Index rose 289 points to 32,506, the Shanghai Index fell -37 points to 3,195, and the Hang Seng Index dipped -9 points to 19,099. In Europe, the German DAX is down -27 points to 15,937, while the FTSE 100 is down -20 points to 7,577. Handful of earnings this morning, but markets await the FOMC, as stocks stay steadily higher.

 

Market Closing Prices Yesterday

·     The S&P 500 Index dipped -8.61 points, or 0.20%, to 4,273.76.

·     The Dow Jones Industrial Average fell -200.16 points, or 0.59%, to 33,562.60.

·     The Nasdaq Composite slipped -11.34 points, or 0.09%, to 13,229.43.

·     The Russell 2000 Index declined -24.19 points, or 1.32% to 1,806.71.

 

Economic Calendar for Today

·     7:45 AM ET              ICSC Weekly Retail Sales

·     8:55 AM ET             Johnson/Redbook Weekly Sales

·     4:30 PM ET              API Weekly Inventory Data

 

Earnings Calendar:

·     Earnings Before the Open: ABM ASO CBRL CHS CIEN CNM GIII OESX QMCO SJM THO

·     Earnings After the Close: BASE CASY CVGW LMNR PLAY SFIX SKIL YEXT

 

Other Key Events:

·     American Society of Clinical Oncology (ASCO) Annual Meeting, 6/2-6/6, in Chicago, IL

·     Apple (AAPL) Worldwide Developers Conference, 6/5-6/9

·     Bank America Global Tech Conference, 6/6-6/8, in San Francisco, CA

·     Deutsche Bank Global Consumer Conference, 6/6-6/8, in Paris

·     NAREIT REITweek, 6/6-6/8, in New York

·     Raymond James Silicon Valley, California, 6/5-6/6

·     RBC Capital Global Energy, Power & Infrastructure Conference, 6/6-6/7, in New York

·     TD Cowen Sustainability Week 2023 (virtual), 6/6-6/9

·     William Blair 43^rd Annual Growth Stock Conference, 6/6-6/8, in Chicago, IL

 

 

Macro	Up/Down	Last
Nymex	-1.51	70.64
Brent	-1.44	75.27
Gold	5.90	1,980.20
EUR/USD	-0.0019	1.0693
JPY/USD	-0.16	139.38
10-Year Note	-0.027	3.667%

 

 

World News

·     An ECB survey noted that “expectations for inflation 3 years ahead fell to 2.5% from 2.9%” whilst consumer expectations decreased “significantly.”

·     In the UK, the British Retail Consortium (BRC) published the May retail sales monitor. It showed same-store sales at 3.7% in May versus 5.2% prior. Total sales totaled 3.9% versus 5.1% prior.

·     Chinese authorities asked the nation’s biggest banks to lower their deposit rates for at least the second time in less than a year, according to people familiar with the matter – Bloomberg.

 

Sector News Breakdown

Consumer

·     JoAnn Stores (JOAN) 1Q adj EPS ($0.93) vs est. ($0.66), adj EBITDA $3.5Mm vs est. $9.878Mm on revs $478.1Mm vs est. $480.61Mm, gr mgn 52.1%; guides FY net sales -1% to -4% vs est. -1.74%, adj EBITDA $85-95Mm vs est. $109.45Mm.

·     Molson Coors (TAP) upgraded to Neutral from Underperform at Bank America and raised tgt to $68 from $54 saying the company’s recent market share gains related to the Bud Light boycott have lasted long enough to positively impact sales and earnings.

·     McCormick (MKC) upgraded to Buy from Underperform at Bank America.

·     Thor Industries (THO) Q3 EPS $2.24 vs. est. $1.07; Q3 revs $2.93B vs. est. $2.83B; raises low end of FY23 EPS view to $5.80-$6.50 from $5.50-$6.50 (est. $5.64) and narrows its FY23 revenue view to $10.5B-$11B from $10.5B-$11.5B (est. $11.03B).

 

Energy, Industrials and Materials

·     Blue Bird (BLBD) announces offering of 5M shares of common stock for holders.

·     Exelon Corp. (EXC) reaffirm prior target of 6-8% operating EPS CAGR from 2021-2025, with expectation to be at midpoint or better; current target of 6-8% operating EPS CAGR from 2022-2026, with expectation to be at midpoint or better.

·     Old Dominion Freight Line’s (ODFL) said its May Less-Than-Truckload revenue per day drops 15.7%; the 8-K showed the freight shipping company said the decrease was mainly due to a 14.4% drop in LTL tons per day. The LTL revenue per hundredweight edged up by 0.1% and the LTL revenue per hundredweight excluding fuel surcharges rose 7.9% in the quarter-to-date period from a year earlier, the company said.

·     Rollins Inc (ROL) files for mixed shelf of up to $1.5 bln.

 

Financials

·     AIG Inc. (AIG) said offering 65M existing shares of Corebridge (CBRG) in Secondary offering.

·     Blackstone (BX) has agreed to sell the JW Marriott San Antonio Hill Country Resort & Spa for $800 million to Ryman Hospitality Properties, Inc. (RHP).

·     Nasdaq Inc (NDAQ) says May U.S. Equity options volume of 269 mln contracts, up +6.7% y/y vs 208 mln contracts in April.

 

Healthcare

·     Alkermes (ALKS) raises 2023 revenue and Gaap net income expectations by approximately $425M after it announced it received a final award (the Final Award) from the arbitral tribunal (the Tribunal) in its arbitration proceedings with Janssen Pharmaceutica N.V.

·     Cigna (CI) upgraded to Buy from Neutral at Bank America.

·     GE HealthCare (GEHC) files to sell 25M shares of common stock for holders.

·     GlaxoSmithKline (GSK) said the FDA has accepted the supplemental Biologics License Application for its Jemperli endometrial cancer treatment in combination with chemotherapy.

·     HealthEquity (HQY) 1Q adj EPS $0.50 vs est. $0.41 on revs $244.432Mm vs est. $239.43Mm, adj EBITDA $86.6Mm vs est. $78.44Mm; guides FY revs $975-985Mm vs est. $967.94 and adj EPS $1.88-1.97 vs est. $1.77, sees FY adj EBITDA $333-343Mm vs est. $328.24Mm.

 

Technology, Media & Telecom

·     Taiwan Semi (TSM) CEO said at its annual shareholder meeting it expects its performance to be better in the second half of the year than the first; first half revenue is expected to drop 10% year-on-year in U.S. dollar terms.

·     AT&T (T) upgraded to Market Perform from Underperform at MoffettNathanson.

·     Celestica (CLS) files to sell 12M subordinate voting shares for holder Onex Corp.

·     Mobileye Global (MBLY) files preliminary prospectus for offering of 35 mln shares of Class A common stock by selling stockholder.

·     GitLab Inc. (GTLB) 1Q adj EPS ($0.06) vs est. ($0.14) on revs $126.9Mm vs est. $117.78Mm, adj gr mgn 91%; guides 2Q revs $129-130Mm vs est. $117.78Mm and adj EPS ($0.03)-($0.02) vs est. ($0.08); guides FY revs $541-543M vs est. $532.56M and adj EPS ($0.18)-($0.14) vs est. ($0.26).

·     Sprinkler Inc. (CXM) Q1 adj EPS $0.06 vs. est. $0.01; Q1 revs $173.4M vs. est. $168.91M; raises FY24 EPS view to $0.19-$0.21 from prior $0.13-$0.15 (est. $0.14) and boosts FY24 revenue view to $711M-$715M from $710M-$714M (est. $712.38M).

·     IDT Corp. (IDT) 3Q adj EPS $0.46 on revs $18.1Mm, adj EBITDA $2.7Mm.