2/26/2021
May the Force be with you
After surpassing $20 billion in sales for the first time, revenue was $21.25 billion for the fiscal year, Salesforce (CRM) says it expects to reach $25 billion in sales in the coming near. For its fiscal fourth quarter the cloud-software company posted earnings of $1.04 per share beating the estimates of $0.75 per share on revenue of $5.82 billion which was above estimates of $5.58 billion. Along with the $25 billion sales target in the coming year, the company is projecting earnings of between $3.39 to $3.41 per share, which is slightly lower than the analyst estimates of $3.49 per share. Beyond hitting the $20 billion sales target, the year 2020 also had Salesforce being added to the Dow Jones Industrial Average ($DJI), along with acquiring Slack Technologies (WORK) to better challenge software heavyweight Microsoft (MSFT). Shares of CRM are down 1.7% in the premarket.
A King’s Ransom
DraftKings (DKNG) reported a Q4 loss of $266.4 million, wider than the $29.1 million loss a year earlier. Revenue came in at $322 million, which was up from $130.9 million earlier and beat the projected revenue of $232 million. The online betting platform raised its revenue guidance for fiscal-year 2021 to a range of $900 million to $1 billion from the previous range $750 to $850 million. The increase was attributed to a strong performance in Q4, substantial user activation and the launch of mobile sports betting and iGaming systems in Michigan and Virginia. Monthly unique payers for the company’s business-to-consumer segment rose 44% over the year-ago period as the company added 1.5 million monthly unique paying customers during the quarter. Shares of DKNG are up 5% in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.47%, near 3846
U.S. Crude Oil futures (/CL) -1.65%, near $62.50 a barrel
CBOE Volatility Index (VIX) -4.8%, near 27.40
U.S. Gold Futures (/GC) -0.90%, near $1759 an ounce
Major Economic Reports:
7:30 am CT – International Trade in Goods [Advanced]
7:30 am CT – Retail Sales [Advanced]
7:30 am CT – Wholesale Inventories [Advanced]
7:30 am CT – Personal Income and Outlays
8:45 am CT – Chicago PMI
9:00 am CT – Consumer Sentiment
12:00 pm CT – Baker Hughes Rig Count
2:00 pm CT – Farm Prices
Notable Earnings
Friday:
A.M. - CRON, DKNG, FL, FLR
P.M. - N/A
Monday:
A.M. -NRG, SSYS, WKHS
P.M. - INO, LMND, NIO, NVAX, SRPT, ZM
*Follow us on Twitter @TradeWise
**BOLD above indicates important and potential market-moving news and information
2/25/2021
Best Bye?
Shares of the popular electronics retailer are coming under heavy pressure this morning after seeing lackluster holiday demand slipping over the last quarter. Although Best Buy (BBY) managed to best their $3.45 per-share earnings consensus target by $0.03, it appears inadequate to impress investors who have been spoiled during the strong pandemic run. Online orders jumped by 90% over the previous three months to extend to $6.7 billion dollars which basically accounted for nearly half of all store transactions while validating a major shift in consumer behavior. Revenue for the entire year of $16.94 billion missed the mark of $17.2 billion expected by analysts which has already begun to spark a change in strategy. Plans are being readied to pivot their current business model to foster the online and curbside pickup models that have taken hold which have resulted in some layoffs of more traditional employees along with the repurposing of store space to house online orders. The BBY dividend payout was just raised by 27% to $0.70 a share which has helped to fuel the stock by 38% over the last year before a potential 5% reversal is setting up this morning prior to the open in reaction to the mixed news.
Churn and Burn
Norwegian Cruise Line Holdings (NCLH) just reported their 4th consecutive quarterly results that contained a loss that was wider than expected. Revenue was off by 99.4% to a meager $9.6 million vs. a $1.48 billion comp last year at this time. Ironically, the revenue captured was nearly three times the size of analysts’ expectations of a mere $2.6 million which holds implications of stronger demand in the last half of the year. The cruise liner reported cash burn at a steady pace of $190 million a month as all their ships are still docked until later May at the earliest. The stock has exploded by 35% just over the past three months as hopes of returning to a pre-pandemic normal with home-bound restrictions easing to entice eager travelers. Shares of NCLH are up another 2% ahead of the opening bell.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.43%, near 3905
U.S. Crude Oil futures (/CL) -0.33%, near $62.99 a barrel
CBOE Volatility Index (VIX) +7.12%, near 22.86
U.S. Gold Futures (/GC) -1.05%, near $1779.70 an ounce
Major Economic Reports:
7:30 am CT – Jobless Claims
7:30 am CT – Durable Goods Orders
7:30 am CT – GDP
7:30 am CT – Export Sales
9:30 am CT – EIA Natural Gas Report
10:00 am CT – Kansas City Fed Manufacturing Index
3:30 pm CT – Fed Balance Sheet
Notable Earnings
Thursday:
A.M. - AMRN, AMT, BBY, BUD, CLF, CNP, CSTM, DPZ, EDIT, LI, MKND, MRNA, NCLH, NRG, NTES, PCG, PZZA, SEAS, VALE, W
P.M.- AAOI, ABNB, ADSK, BYND, CRM, CVNA, CZR, DASH, ENDP, EOG, ETSY, FSLR, HPQ, RKY, SHAK, SPCE, SWN, VMW, WDAY, WW, ZS
Friday:
A.M. - CRON, DKNG, FL, FLR
P.M. – N/A
*Follow us on Twitter @TradeWise
**BOLD above indicates important and potential market-moving news and information
2/24/2021
A Little Out of Square
Square (SQ) reported better than expected earnings after the close yesterday but that was not enough to keep the shares from pulling back. The commerce ecosystem company reported earnings of $0.32 per share which beat estimates of $0.24. Revenues came in at $3.16 billion which was better than analysts’ expectations of $3.09 billion. The interesting news from the company was that they had a new $170 billion purchase of the cryptocurrency Bitcoin, which makes up 5% of the company’s cash reserves. Shares of SQ are trading 5% lower in the pre-market.
Home Improvement
Lowe’s (LOW) reported fourth quarter sales growth, when they released earnings this morning. The home improvement giant said their comparable store sales grew 28% as the pandemic drove demand. Earnings per share came in at $1.33 versus estimates of $1.21 per share. Revenues also beat at $20.31 billion, while analysts were expecting $19.42 billion. The company is planning $9 billion in share buybacks and $2 billion in capital expenditures this year. Shares of LOW are trading slightly higher in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.25%, near 3867
U.S. Crude Oil futures (/CL) +1.0%, near $62.30 a barrel
CBOE Volatility Index (VIX) +4.4%, near 24.10
U.S. Gold Futures (/GC) -0.8%, near $1791 an ounce
Major Economic Reports:
6:00 am CT – MBA Mortgage Applications
9:00 am CT – State Street Investor Confidence Index
9:00 am CT – New Home Sales
9:00 am CT – Jerome Powell Speech
9:30 am CT – EIA Petroleum Status Report
10:00 am CT – Survey of Business Uncertainty
Notable Earnings
Wednesday:
A.M. -BHC, HFC, JMIA, LNG, LOW, OSTK, SAGE, TJX
P.M. - ACAD, APA, BKNG, DDD, LB, NTAP, NTNX, NVDA, PBR, RVLV, TDOC, TNDM, VIAC
Thursday:
A.M. - AMRN, AMT, BBY, BUD, CLF, CNP, CSTM, DPZ, EDIT, LI, MKND, MRNA, NCLH, NRG, NTES, PCG, PZZA, SEAS, VALE, W
P.M.- AAOI, ABNB, ADSK, BYND, CRM, CVNA, CZR, DASH, ENDP, EOG, ETSY, FSLR, HPQ, RKY, SHAK, SPCE, SWN, VMW, WDAY, WW, ZS
**BOLD above indicates important and potential market-moving news and information
2/23/2021
Improving your Home
Home Depot (HD) reported Q4 earnings of $2.65 per share, $0.04 better than the consensus estimates of $2.61, on revenue of $32.3 billion, which also easily beat the estimate of $30.66 billion. U.S. same-store sales jumped by 25%, while the overall same-store sales globally grew by 24.5%, higher than the 19.2% that was expected. The home improvement retailer reported that the number of customer transactions rose 12.8% to 416.8 million, and the average transaction size grew to $75.69, from $68.29 in 2019’s fourth quarter. Citing uncertainty caused by the Covid-19 pandemic, the company declined to provide formal guidance for its 2021 results. Shares of HD are down 2.4% in the premarket.
Let’s have a Parade
Macy’s (M) reported its first quarterly profit in a year. The department store retailer reported earnings of $160 million, or $0.50 per share, down from $340 million, or $1.09 last year, but blew past the estimates of only $0.11 per share. Sales of $6.78 billion were down from $8.34 billion last year at this time, but also soudly beat the estimates of $6.48 billion. Comparable sales were down 17.1% on an owned-plus-licensed basis, smaller than the 21.3% drop anticipated by the analysts. Digital sales were up 21%, with digital penetration reaching 44% of net sales. Shares of M are trading slightly higher in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.56%, near 3852
U.S. Crude Oil futures (/CL) -0.08%, near $61.65 a barrel
CBOE Volatility Index (VIX) +5.6%, near 24.80
U.S. Gold Futures (/GC) -0.03%, near $1807.80 an ounce
Major Economic Reports:
7:55 am CT – Redbook
8:00 am CT – Case-Shiller Home Price Index
8:00 am Ct – FHFA House Price Index
9:00 am CT – Richmond Fed Manufacturing Index
9:00 am CT – Consumer Confidence
9:00 am CT – Jerome Powell Speech
12:00 PM CT – Money Supply
Notable Earnings
Tuesday:
A.M - CLVS, HD, HSBC, M, MDT
P.M. – COG, HYLN, INFN, INTU, PXD, RRC, SQ, TOL
Wednesday:
A.M. -BHC, HFC, JMIA, LNG, LOW, OSTK, SAGE, TJX
P.M. - ACAD, APA, BKNG, DDD, LB, NTAP, NTNX, NVDA, PBR, RVLV, TDOC, TNDM, VIAC
**BOLD above indicates important and potential market-moving news and information
2/22/2021
The Week Ahead
Where the Rubber Meets the Road
Cooper Tire and Rubber (CTB) which was founded in 1914 has agreed to be acquired by Goodyear Tire (GT) to morph into one of the biggest tire manufacturers on the planet. The move will solidify Goodyear as the number one tire maker in the United States and essentially double their exposure to China which has been red hot as of late. The deal for Cooper was worth $2.8 billion in cash and stock with the purchase valued at $54.36 a share or a 24% premium from Friday’s close. Cost synergies are expected to save $165 million over the next two years with 10,000 employees joining forces from Cooper.
Jungle Warfare!
Walmart (WMT) just announced plans to deploy $14 billion in capital spending to boost their e-commerce fulfillment through automation and better supply chain in an attempt to become the “primary destination for online customers.” Shares of Amazon (AMZN) have taken notice with nearly a 4% retreat coming just since last week. Renewed concerns also arise as superstar, Jeff Bezos readies plans to step down as C.E.O. in the 3rd quarter which he has been at the helm over since 1994. Walmart saw a 69% growth rate in their e-commerce space in their 4th quarter report compared to last year and expects to reap $100 Billion in revenue over the span of just the next two years as the stakes continue to be raised.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.38%, near 3872
U.S. Crude Oil futures (/CL) +1.97%, near $60.42 a barrel
CBOE Volatility Index (VIX) +9.48%, near 24.15
U.S. Gold Futures (/GC) +1.06%, near $1796.5 an ounce
Economic Releases (02/22-02/26):
Monday:
7:30 am CT – Chicago Fed National Activity Index
9:00 am CT – Leading Indicators
9:30 am CT – Dallas Fed Manufacturing Survey
10:00 am CT – Export Inspections
10:30 am CT – 3-Month and 6-Month Bill Auction
Tuesday:
7:55 am CT – Redbook
8:00 am CT – Case-Shiller Home Price Index
8:00 am Ct - FHFA House Price Index
9:00 am CT – Richmond Fed Manufacturing Index
9:00 am CT – Consumer Confidence
9:00 am CT – Jerome Powell Speech
12:00 PM CT – Money Supply
Wednesday:
6:00 am CT – MBA Mortgage Applications
9:00 am CT – State Street Investor Confidence Index
9:00 am CT – New Home Sales
9:00 am CT – Jerome Powell Speech
9:30 am CT – EIA Petroleum Status Report
10:00 am CT – Survey of Business Uncertainty
Thursday:
7:30 am CT – Jobless Claims
7:30 am CT – Durable Goods Orders
7:30 am CT – GDP
7:30 am CT – Export Sales
9:30 am CT – EIA Natural Gas Report
10:00 am CT – Kansas City Fed Manufacturing Index
3:30 pm CT – Fed Balance Sheet
Friday:
7:30 am CT – International Trade in Goods [Advanced]
7:30 am CT – Retail Sales [Advanced]
7:30 am CT – Wholesale Inventories [Advanced]
7:30 am CT – Personal Income and Outlays
8:45 am CT – Chicago PMI
9:00 am CT – Consumer Sentiment
12:00 pm CT – Baker Hughes Rig Count
2:00 pm CT – Farm Prices
Major Earnings for the Upcoming Week (02/22-02/26):
Monday:
A.M. - DISH, RCL
P.M. - MRO, OKE, OXY, PANW, RIG, WMB
Tuesday:
A.M - CLVS, HD, HSBC, M, MDT
P.M. - HYLN, INFN, INTU, PXD, RRC, SQ, TOL
Wednesday:
A.M. -BHC, HFC, LNG, LOW, OSTK, SAGE, TJX
P.M. - ACAD, APA, BKNG, DDD, LB, NTAP, NTNX, NVDA, PBR, RVLV, TDOC, TNDM, VIAC
Thursday:
A.M. - AMRN, AMT, BBY, BUD, CLF, CNP, CSTM, DPZ, EDIT, LI, MKND, MRNA, NCLH, NRG, NTES, PCG, PZZA, SEAS, VALE, W
P.M.- AAOI, ABNB, ADSK, BYND, CRM, CVNA, CZR, DASH, ENDP, EOG, ETSY, FSLR, HPQ, RKY, SHAK, SPCE, SWN, VMW, WDAY, WW, ZS
Friday:
A.M. - CRON, DKNG, FL, FLR
P.M. – N/A
