Morning Preview: October 29, 2024

Early Look

Tuesday, October 29, 2024

Futures

Up/Down

%

Last

Dow

-40.00

0.09%

42,566

S&P 500

-1.25

0.03%

5,859

Nasdaq

14.75

0.07%

20,511

 

 

U.S. futures little changed overnight after a very slow trading day on Monday, as investors await several economic data points and key earnings results starting today that could push markets to new all-time highs, or pullback markets after an incredible run. Stocks added to recent gains as the Nasdaq came close to all-time highs again on Monday, rising 7 straight weeks as we await earnings from AMD and GOOGL tonight after the close. Data this week still includes, Tuesday brings a consumer-confidence survey and JOLTs job-openings data and Wednesday a look at third-quarter GDP. On Thursday, Personal-consumption expenditures inflation data, and the October jobs report lands Friday morning. Reminder that Federal Reserve officials, following their internal guidelines, have gone silent to prepare for their interest-rate policy meeting on Nov. 7 (blackout period has begun). In Asian markets, The Nikkei Index rose 298 points to 38,903, the Shanghai Index fell -35 points to 3,286, and the Hang Seng Index gained 101 points to 20,701. In Europe, the German DAX is up 65 points to 19,596, while the FTSE 100 rises 11 points to 8,297. Bitcoin prices extend their rally, rising another 2% and topping $71,000 as financial markets increasingly bet on a Donald Trump victory at the November 5 U.S. presidential election, Deutsche Bank says. A Trump victory is considered a favorable outcome for bitcoin due to his support for cryptocurrencies and the prospect of more relaxed regulation. A ton of stocks moving on earnings overnight and this morning/see below. Boeing raised about $21 billion to shore up its balance sheet and stave off a potential credit rating downgrade and oil prices steadied after falling 6% Monday.

Market Closing Prices Yesterday

  • The S&P 500 Index climbed 15.40 points, or 0.27%, to 5,823.52.
  • The Dow Jones Industrial Average rose 273.17 points, or 0.65%, to 42,387.57.
  • The Nasdaq Composite gained 48.58 points, or 0.26%, to 18,567.19.
  • The Russell 2000 Index advanced 36.07 points, or 1.63% to 2,244.07.

Economic Calendar for Today

  • 7:45 AM ET ICSC Weekly Retail Sales
  • 8:30 AM ET                  Advance Goods Trade Balance for September…prior (-94.22B)
  • 8:55 AM ET                  Johnson/Redbook Weekly Sales
  • 9:00 AM ET                  Monthly Home Prices M/M for August
  • 9:00 AM ET                  CaseShiller 20-city index for Aug…est. +0.2%
  • 10:00 MA ET                Consumer Confidence for October…est. 99.5
  • 10:00 AM ET                JOLTs Job Openings for September…est. 8.0M (prior 8.04M)
  • 10:30 AM ET                Dallas Fed Services for October
  • 1:00 PM ET US Treasury to sell $44B in 7-year notes
  • 4:30 PM ET API Weekly Inventory Data

Earnings Calendar:

  • Earnings Before the Open: ABG AMT ATI AWI CAC CBZ CCO CROX CTS CVLT DHI DTM ECL EPD EXP FELE FFWM FOR GLW GPK HAYW HEES HNI HRMY HUBB INCY IPGP ITT JBI JBLU KNSA LDOS MAS MCD MSCI NAUT NLST NXRT PAG PFE PJT PSX PYPL RCL RITM SOFI SSTK SWK SYY TALK THC UFPI ULCC WGS XRX ZBRA
  • Earnings After the Close: AAT ALHC ALSN AMD AMH APAM ATGE ATNI ATOM ATRC BGFV BMRN BXP CAKE CHCT CHE CMG CTRE CVRX CZR DVA EA EIX ENVX EQT ESS EXE EXEL EXLS EXR FCF FE FMC FSLR GSP GOOGL HRZN HURN IEX IVT LFUS LSTR LXU MCY MDLZ MIR MOD MTH NGVT NRDS OKE OI PFS PK PRO PRTS QRVO RDDT RSG RUSHA SYI SAGE SKWD SNAP STAG SYK TCS TRTX TTI TXG UDMY UIS UMBF UNM V VRNS WERN WPC ZWS

 

 

Macro

Up/Down

Last

Nymex

0.61

67.99

Brent

0.67

72.09

Gold

5.40

2,761.30

EUR/USD

-0.0004

1.0808

JPY/USD

0.11

153.40

10-Year Note

+0.022

4.30%

 

Sector News Breakdown

Consumer

  • Ford Motor (F) Q3 net income of $900M, or 22 cents per share, compared with $1.2B, or 30 cents per share y/y; Q3 EPS $0.49 vs. est. $0.47 and revs $46.2B vs. est. $41.88B; updated its full-year operating profit guidance to be about $10 billion vs. prior range in July of $10 billion and $12 billion; Sees capex $8B-$8.5B, from $8B-$9B, est. $8.39B.
  • Boot Barn (BOOT) Q2 EPS reported in-line at $0.95 on better sales $425.8M vs. consensus $423.3M; Q2 comp store sales +4.9% vs. est. +3.9%; guides sees Q3 EPS $1.96-$2.07 vs. consensus $2.10 and sees Q3 revenue $582M-$595M vs. est. $588.61M; sees Q3 Same store sales growth of approximately 3.5% to 6.0%, with retail store same store sales growth of approximately 3.0% to 5.0% and e-commerce same store sales growth of approximately 7.5% to 10.0%. CEO stepping down to purse role as Ross Stores (ROST) CEO.
  • Camping World (CWH) Q3 adj EPS $0.13 vs. est. $0.11; Q3 revs $1.725B above consensus $1.64B; Q3 same-store new unit sales increase 29% y/y, driving record new unit market share, used unit volume trends sequentially improve in Oct; Q3 new vehicle rev was $824.9M, an increase of $145.7M, or 21.5%, and new vehicle unit sales were 19,943 units, increase of 4,738 units, or 31.2%
  • Keurig Dr Pepper (KDP) said top shareholder German investment firm JAB Holding to sell about 60 mln shares of KDP at $32.85 per share; the offer price is at ~3% discount to KDP stock as of Monday’s close.
  • Legget & Platt (LEG) Q3 adj EPS $0.32 vs. est. $0.33; Q3 revs $1.1B vs. est. $1.11B; guides Q4 profit and sales below consensus and cuts FY24 adjusted EPS view to $1.00-$1.10 from $1.10-$1.25 while narrows FY24 revenue view to $4.3B-$4.4B from $4.3B-$4.5B (est. $4.42B).
  • Royal Caribbean (RCL) Q3 adj EPS $5.20 vs. est. $5.01; Q3 revs rose 17% to $4.89B vs. est. $4.89B; guides Q4 EPS $1.40-$1.45 vs. est. $1.58; Sees ADJ EPS $11.57 to $11.62, vs. prior $11.35 to $11.45 and est. $11.51.
  • Stanley Black & Decker (SWK) Q3 adj EPS $1.22 vs. consensus $1.05; Q3 revs $3.80B vs. est. $3.8B; narrows FY24 adjusted EPS to $3.90-$4.30 from $3.70-$4.50 and backs FY24 free cash flow view $650M-$850M.
  • Trex Inc. (TREX) Q3 adj EPS $0.37 vs est. $0.32, on sales $233.717Mm vs est. $225.39Mm; reaffirms FY net sales at midpoint of range ($1.14B vs est. $1.143B) and EBITDA mgn high end of guide (30.5%).
  • VF Corp. (VFC) Q2 adj EPS $0.60 vs est. $0.37 on revs $2.8B vs est. $2.706B; sees Q3 revs $2.7-2.75B vs est. $2.771B and adj op Inc $170-200Mm vs est. $253.17Mm.

Energy, Industrials and Materials

  • Boeing (BA) announces offering of 112,500,000 shares of company at a public offering price of $143.00 per share
  • Champion Homes (SKY) Q2 adj EPS $0.93 vs. est. $0.81; Q2 revs rose 32.9% y/y to $616.9M vs. est. $602.12M; Q2 homes sold increased 31.3% to 6,357; Q2 total backlog increased 5.6% to $427M q/q; Q2 average selling price per U.S. home sold increased 4.5% to $92,400.
  • Crane Inc. (CR) Q3 adjusted EPS $1.38 above consensus $1.32 and revs $597M tops consensus $594.11M; for Q3, posted 6% y/y core order growth and 10% y/y core backlog growth; raises FY24 EPS view to $5.05-$5.20 from $4.95-$5.15 (est. $5.11) and backs FY24 sales growth view roughly 11%.
  • Element Solutions (ESI) Q3 adj EPS $0.39 vs est. $0.38, adj EBITDA $143Mm on revs $645Mm vs est. $626.5Mm; guides FY adj EBITDA $535-540Mm vs est. $551.5MM and FCF $280-300Mm.
  • Flowserve (FLS) Q3 adj EPS $0.62 vs est. $0.67 on sales $1.133B vs est. $1.126B; guides FY revs +4-6% vs est. +6.17% and adj EPS $2.60-2.75 vs est. $2.76.
  • NextEra Energy, Inc. (NEE) announced that it intends to sell $1.5B of equity units.

Financials

  • Brixmor Property (BRX) Q3 FFO/SHR $0.52 vs est. $0.52 on revs $320.7Mm vs est. $320.11MM; guides FY FFO/SHR $2.13-2.15 vs est. $2.13.
  • Kilroy Realty (KRC) Q3 FFO/SHR $1.17 vs est. $1.05 on sales $289.9Mm vs est. $275.58Mm; guides FY FFO/SHR $4.38-4.44 vs est. $4.27.
  • Regency Centers (REG) Q3 FFO/SHR $1.07 vs est. $1.04; guides FY FFO/SHR $4.27-4.29 vs est. $4.24.

Healthcare

  • Encompass Health (EHC) Q3 EPS $1.07 vs. est. $0.94; Q3 revs $1.35B vs. est. $1.33B; raises FY24 adj. EPS $4.19 -$4.33 from $3.97-$4.22, boosts FY24 operating rev view to $5.325B-$5.375B from $5.275B-$5.350 and boosted its FY24 adjusted EBITDA to $1.070B-$1.090B from $1.040B-$1.075B.
  • Inari Medical (NARI) Q3 EPS ($0.31) vs est. ($0.11) on revs $153.39Mm vs est. $150.7Mm; guides FY revs $601.5-604.5Mm vs est. $600.18Mm; expects to reach sustained operating profitability in the first half 2025.
  • TransMedics Group (TMDX) shares tumbled; Q3 EPS $0.12 vs. est. $0.29; Q3 revs $108.8M vs. est. $115M; backs FY24 revenue view $425M-$445M, vs. consensus $444.36M; said Most on track to reach target of achieving 10,000 OCS transplant cases per year in S.S. by 2028
  • Procept BioRobotics (PRCT) announces $175M common stock offering.

Technology, Media & Telecom

  • Agilysys Inc. (AGYS) Q2 adj EPS $0.34 vs est. $0.30, adj EBITDA $12.2Mm vs est. $10.3Mm on revs $68.3Mm vs est. $67.5Mm; guides FY revs $280-285Mm vs est. $277.28Mm and adj EBITDA mgn 18%.
  • Amkor Technologies (AMKR) Q3 EPS $0.49 vs. est. $0.50; Q3 revs rose 2.2% y/y to $1.862B vs. est. $1.84B; Q3 Gross margin 14.6% vs. 15.5% y/y; guides Q4 net sales $1.60B-$1.70B below est. $1.84B and sees Q4 EPS $0.28-$0.44 below consensus $0.56.
  • Cadence Design Systems (CDNS) Q3 EPS $1.64 tops consensus $1.44 and Q3 revenue $1.215B beat consensus $1.18B; raises FY24 EPS to $5.87-$5.93 from $5.77-$5.97 prior (est. $5.89) and narrows FY24 revenue to $4.61B-$4.65B from prior $4.6B-$4.66B (consensus $4.63B).
  • CCC Intelligent Solutions (CCCS) Q3 adj EPS $0.10 vs est. $0.09, adj EBITDA $101.6Mm vs est. $98.21Mm on revs $238.5Mm vs est. $238.04MM, adj gr mgn 78%; sees Q4 revs $242.5-246.5Mm vs est. $246.31Mm and adj EBITDA $103-105Mm vs est. $105.74Mm; guides FY revs $941-945Mm vs est. $943.38Mm.
  • F5 Networks (FFIV) authorizes additional $1B for shr buyback program; Q4 adj EPS $3.67 vs est. $3.45 on revs $747Mm vs est. $730.4Mm; guides Q1 revs $705-725Mm vs est. $707.05Mm and adj EPS $3.29-3.41 vs est. $3.37; sees FY revs +4-5% vs est. +4% and adj EPS +5-7% vs est. +7.9%.
  • Harmonic (HLIT) Q3 EPS $0.26 vs. est. $0.22; Q3 revs $195.8M vs. est. $181.89M; reported Q3 backlog and deferred revenue of $584.7M; guides Q4 EPS $0.33-$0.39 vs. est. $0.35.
  • Rambus Inc. (RMBS) Q3 EPS $0.45 vs est. $0.51 on revs $145.5Mm vs est. $147.33Mm; guides Q4 revs $148-166Mm vs est. $160.7Mm, sees product revs $72-78Mm, contract & other revs $22-28Mm, royalty revs $54-60Mm.
  • SBA Communications (SBAC) Q3 AFFO/shr $3.32 vs est. $3.31, adj EBITDA $472.6Mm vs est. $478Mm on revs $6676Mm vs est. $669.8Mm; guides FY revs $2.66-2.68B vs est. $2.659B and AFFO/shr $13.20-13.45 vs est. $13.23.
  • Nokia (NOK) announced it has signed a multi-year patent license agreement with HP (HPQ) covering the use of Nokia’s video technologies in HP’s devices.

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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.