11/20/2020
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Mnuchin vs. Powell
Yesterday after the close, Treasury Secretary Mnuchin raised uncertainty following a decision to allow several emergency Federal Reserve lending programs to expire, which sent equity futures lower. These Fed programs that have backstopped corporate credit and municipal lending markets will end on December 31st. Fed Chairman Powell had indicated that he did not think it would be appropriate to allow the programs to expire in remarks on Tuesday. The Fed signaled that they were disappointed in the decision, as they feel the programs still serve an important role.
Pfizer Seeking Vaccine Authorization
S&P 500 futures (/ES) have rebounded from lower levels after Pfizer (PFE) released they plan on asking U.S. health regulators to permit the use of their Coronavirus vaccine. Following the filing, it will be up to the FDA to decide whether the company’s two-shot vaccine is safe enough to distribute to millions of people. Pfizer feels that their filing could open the door to distribution by the middle to end of December.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.11%, near 3576
U.S. Crude Oil futures (/CL) -0.45%, near $41.71 a barrel
CBOE Volatility Index (VIX) -1.9%, near 22.66
U.S. Gold Futures (/GC) +0.8%, near $1876 an ounce
Major Economic Reports:
12:00 pm CT – Baker-Hughes Rig Count
2:00 pm CT – Cattle on Feed
Notable Earnings
Friday:
A.M. – FL
P.M. – N/A
Monday:
A.M.– N/A
P.M. – AMBA, NTNX, URBN
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11/19/2020
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Chipping away
Nvidia (NVDA) reported fiscal third quarter sales of $4.73 billion, up by 57% from the previous quarter. Earnings came at $2.91 per share, beating the consensus estimate of $2.57 per share. The graphics chipmaker saw no immediate letup in demand of home computing, videogaming and the use of its chips in big data center. Nvidia projects overall revenue growth of 55% year-over-year for the fiscal fourth quarter, well above the 41% expected by analysts. NVDA is trading slightly lower in the pre-market.
The Sound of Music
Sonos (SONO) reported fiscal fourth quarter earnings of $0.33 per share versus a loss of $0.15 per share a year ago, bettering the consensus of $0.15. The maker of smart speakers and other audio electronics for the home said they are anticipating revenue of around $1.5 billion for fiscal 2021, versus market projections of $1.38 billion. The company also announced a common stock repurchase program to $50 million. It completed its previous $50 million buyback program during Q4 of fiscal 2020, when it purchased 3.8 million shares. Shares of SONO are trading 18% higher in the pre-market.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.25%, near 3555
U.S. Crude Oil futures (/CL) -0.19%, near $41.93 a barrel
CBOE Volatility Index (VIX) -0.6%, near 23.70
U.S. Gold Futures (/GC) -0.8%, near $1858 an ounce
Major Economic Reports:
7:30 am CT – Jobless Claims
7:30 am CT – Philadelphia Fed Manufacturing Index
9:00 am CT – E-Commerce Retail Sales
9:00 am CT – Existing Home Sales
9:00 am CT – Leading Indicators
9:30 am CT – EIA Natural Gas Report
10:00 pm CT – Kansas City Fed Manufacturing Index
3:30 pm CT – Fed Balance Sheet
Notable Earnings
Thursday:
A.M.– CSIQ, M, NTES
P.M. – INTU, ROST, WDAY
Friday:
A.M. – FL
P.M. – N/A
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11/18/2020
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Clear for Take-Off
Boeing (BA) may finally be on the right path to put the pair of horrific crashes behind them after receiving the essential FAA approval to begin allowing their 737 MAX back in the air. The plane has been grounded since March of 2019 which has forced many organizational and structural changes to combat the core problem. Several hurdles still remain including the tall order of gaining confidence back from disenfranchised customers while simultaneously selling the planes to battered airlines who are still navigating through one of the toughest travel periods in modern history. Boeing has already seen 10% of their backorders cancelled with many more expected into next year. Shares are up 7% in reaction to the important development.
All-Time High?
Shares of big-box retailer, Target (TGT) are moving dangerously close to breaking new highs this morning which were carved out nearly one month ago at $167.42 after posting their latest quarterly report. The iconic company saw an adjusted earnings result of $2.79 which easily beat consensus and was more than double last year’s number. Comparable same store sales soared by an impressive 20.7% as the combination of live and virtual shopping was a strong combination amid the extended pandemic norm. Overall, revenue extended to $22.63 billion with digital sales exploding by a whopping 155% which is translating to strong momentum leading into the ever-important holiday shopping season.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.08%, near 3610
U.S. Crude Oil futures (/CL) +1.27%, near $42.18 a barrel
CBOE Volatility Index (VIX) -1.63%, near 22.34
U.S. Gold Futures (/GC) -0.42%, near $1877.00 an ounce
Major Economic Reports:
6:00 am CT – MBA Mortgage Applications
7:30 am CT – Housing Starts and Permits
9:00 am CT – Quarterly Services Survey
9:30 am CT – EIA Petroleum Status Report
Notable Earnings
Wednesday:
A.M. – LOW, TGT, TJX
P.M. – LB, NVDA
Thursday:
A.M. – CSIQ, M, NTES
P.M. – INTU, ROST, WDAY
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11/17/2020
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Pharmacy Prime
Amazon (AMZN) made its latest move into a new market when it announced this morning that customers will be able to fill prescriptions online at Amazon Pharmacy. Amazon Prime members will be able to save money when purchasing medication, even without insurance. Prime members will be able to save as much as 80% on generic meds, and up to 40% on name brands. Amazon bought online pharmacy, Pill Pack Inc. in 2018 for roughly $1 billion, which gives the company the ability to fill prescriptions throughout the U.S. Shares of CVS Health Corp. (CVS) are almost 7% lower in the pre-market, while Walgreens Boots Alliance Inc. (WBA) is trading over 9% lower. AMZN is currently almost 2% higher, pre-market.
Walmart Feeling Lonely
Walmart (WMT) saw its e-commerce sales jump 79% in the third quarter, which helped the company beat earnings estimates. The grocery giant posted earnings per share of $1.34, which beat analysts’ expectations of $1.19. Revenue came in above expectations at $134.7 Billion versus estimates of $131.5 Billion. Although the company saw gains in online sales, U.S. in-store shopper traffic decreased 14.2%. Shares of WMT are trading just over 1% lower in the pre-market.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.6%, near 3599
U.S. Crude Oil futures (/CL) -0.9%, near $40.95 a barrel
CBOE Volatility Index (VIX) +4.6%, near 23.50
U.S. Gold Futures (/GC) -0.12%, near $1885 an ounce
Major Economic Reports:
7:30 am CT – Retail Sales
7:30 am CT – Import and Export Prices
7:55 am CT – Redbook
8:15 am CT – Industrial Production
9:00 am CT – Business Inventories
9:00 am CT – Housing Market Index
Notable Earnings
Tuesday:
A.M. – HD, KSS, SE, WMT
P.M. –NIO
Wednesday:
A.M. – LOW, TGT, TJX
P.M. – LB,NVDA
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11/16/2020
The Week Ahead
Shots for everyone
U.S. stock futures (/ES) are trading higher in pre-market after drug company Moderna (MRNA) announced that preliminary trial data showed its coronavirus vaccine was more than 94% effective. Similar trial results last week from Pfizer and BioNTech drove investors into underperforming names dependent on a vaccine reopening the economy. Moderna also announced that its vaccine would keep for a month in regular refrigerators, providing a distributional advantage over the Pfizer/BioNTech product, which must be shipped in a special deep-freeze container. S&P 500 futures are up 0.85% in response while shares of Moderna are up more than 13% in the pre-market.
‘Tis the shopping week
This week will be a busy one for retail earnings, as Walmart (WMT), Home Depot (HD), Target (TGT) and Lowes (LOW) are amongst the big-box companies that will be reporting earnings throughout the week. Walmart and Home Depot will be the first out of the gate reporting fiscal-third quarter earnings on Tuesday morning. Both stocks are up about 26% in 2020, helped by the Covid-19 crisis. Walmart has benefited from its position as an essential retailer, while consumers’ increasing home purchases, and willingness to spend on DIY projects has been a tailwind for Home Depot. Smaller rivals Target and Lowes, up 27% and 33% year to date respectively, will report the following morning.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.85%, near 3612
U.S. Crude Oil futures (/CL) +4.30%, near $41.85 a barrel
CBOE Volatility Index (VIX) +1.00%, near 23.40
U.S. Gold Futures (/GC) -0.25%, near $1881 an ounce
Economic Releases (11/16-11/20):
Monday:
7:30 am CT – Empire State Manufacturing Index
10:00 am CT – Export Inspections
10:30 am CT – 3-Month and 6-Month Bill Auction
3:00 pm CT – Crop Progress
Tuesday:
7:30 am CT – Retail Sales
7:30 am CT – Import and Export Prices
7:55 am CT – Redbook
8:15 am CT – Industrial Production
9:00 am CT – Business Inventories
9:00 am CT – Housing Market Index
Wednesday:
6:00 am CT – MBA Mortgage Applications
7:30 am CT – Housing Starts and Permits
9:00 am CT – Quarterly Services Survey
9:30 am CT – EIA Petroleum Status Report
Thursday:
7:30 am CT – Jobless Claims
7:30 am CT – Philadelphia Fed Manufacturing Index
9:00 am CT – E-Commerce Retail Sales
9:00 am CT – Existing Home Sales
9:00 am CT – Leading Indicators
9:30 am CT – EIA Natural Gas Report
10:00 pm CT – Kansas City Fed Manufacturing Index
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Friday:
12:00 pm CT – Baker-Hughes Rig Count
2:00 pm CT – Cattle on Feed
Major Earnings for the Upcoming Week (11/16-11/20):
Monday:
A.M. – JD, PANW, TSN, VOD
P.M. – BIDU, CODX, IQ, SDC, YY
Tuesday:
A.M. – HD, KSS, SE, WMT
P.M. – NIO
Wednesday:
A.M. – LOW, TGT, TJX
P.M. – LB, NVDA
Thursday:
A.M. – CSIQ, M, NTES
P.M. – INTU, ROST, WDAY
Friday:
A.M. – FL
P.M.– N/A
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*BOLD above indicates important and potential market-moving news and information
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