Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on May 10, 2021 at 9:00 AM
Updated on May 10, 2021 at 12:48 PM
  • Strategies and Concepts
  • Expectational Analysis

When combined with fundamental and technical factors (a 3-tiered methodology we call Expectational Analysis®), sentiment becomes a powerful tool for analyzing stocks, sectors, or the overall market. This is especially important as earnings season ramps up. 

Last week was a whirlwind of corporate reports, which we tried to cover here, here, and basically everywhere.

But this week still brings plenty of earnings action, so we're going to harken back to our Benzinga feature that aired last month. Below is an excerpt of the article, which can also be found here.

It’s earnings season, a time of trepidation and anxiety for publicly held companies. But according to Schaeffer’s Investment Research, a privately held provider of stock and options trading recommendations, earnings season also provides a look under the hood of how companies have been managed over the past few months and how they may fare going forward.

According to Schaeffer’s, it’s also a time of opportunity for traders who can play options before the earnings announcements, or after the reports have been released. But they warn that playing options before the announcement is the riskier move, though potentially yielding large profits if the directional move is correctly predicted. However, jumping in with options after the release could set the investor on track with long-term directional movement.

Schaeffer’s Investment Research offers the following outlook and advice on options trading during earnings season.

Using Options to Profit During Earnings Season

One way to speculate on volatility using options is by employing a long strangle options strategy. Much like a straddle, a long strangle involves a bullish option trade and a bearish option trade, played simultaneously. Both the call and put are bought to open, and both trades share an expiration date. Unlike a straddle, however, a strangle employs a call and a put at different strike prices, usually slightly out of the money, that sits on either side of the underlying stock's current price.

Even Without a Crystal Ball, You Can Still Make Money

Event risks such as takeovers and earnings reports can cause stock prices to make huge, fast moves in either direction. In the traditional, old-line investment world, it might make sense to define the associated “risk” as a substantial decline in the share price. But in the modern trading world, with its hedge funds and short-term traders, who may as easily be holding short positions as long positions, and with the added flexibility investors have to profit on bearish views by buying put options, event risk is now “an equal opportunity” phenomenon. A sharp reaction to the upside could be at least as devastating to a short seller or a put holder as a sharp decline would be to a stock or call option owner.

One fascinating aspect of “date certain” events is that even though they can have an explosive impact on a stock or on the market, you as a trader can plan your strategy in advance and execute it just before the event is scheduled to occur. This means that you can position yourself to achieve big profits in a very short time period, often in less than a full trading day.

Pre-Event Trading: Putting Time on Your Side

The easiest way for option buyers to mitigate volatility going into a date certain event is to only trade events that occur during expiration week and simply buy front-month options the day before the known event date occurs. This may run counter-intuitive to other option buying strategies, in which time decay is a concern. However, for event trading, you are only going to be in the trade for a very short period of time (as little as one day). For the event trader, expiration week is the optimal time to make your move: Your leverage is at its greatest, you have the fewest dollars at risk, and the “penalty” of higher volatility premium is minimal.

Post-Event Trading: Capitalizing on Certainty

In trading “post-events,” because the element of uncertainty is removed, you can make decisions based on more factual information, while the options are much cheaper. If the news is sufficient to change the market's perception of the shares, this could create a sustainable move in the direction of the immediate price reaction, and buying options at much cheaper prices when the volatility premiums are minimal might make sense.

While Schaeffer’s Investment Research admits they can neither predict nor trade in front of “out of the blue” events like financial catastrophes and terrorist attacks, “date certain” events such as earnings announcements offer a unique opportunity for the option trader to capture potentially explosive stock movements in very short time frames. They add that by properly measuring investor expectations ahead of the event, you can help tilt the odds in your favor of getting the post-event direction right.

Learn more about Schaeffer’s Investment Research at www.schaeffersresearch.com.

Sign up now for a trial subscription of Schaeffer's Expiration Week Countdown! We'll send you 5 trades for expiration week, each targeting double- or triple-your-money gains in less than 5 days.
Published on May 10, 2021 at 12:01 PM
  • Ezines
  • Midday Market Check
 
Published on May 10, 2021 at 10:41 AM
Updated on May 10, 2021 at 10:56 AM
  • Analyst Update
The security's usually quiet option pits are brimming with bullish activity today. So far, 13,000 calls have already crossed the tape, which is 29 times the intraday average. Most popular is the June 800 call -- where new positions are being opened -- followed by the May 77.50 call. 
Published on May 10, 2021 at 10:44 AM
  • Earnings Preview

This Restaurant Stock Tends to Soar After Earnings

by Schaeffer's Digital Content Team
 
Published on May 10, 2021 at 10:44 AM
  • Intraday Option Activity
  • Buzz Stocks
So far, MAR has seen 2,251 calls and 1,273 puts cross the tape. The July 150 call is the most popular, followed by the weekly 5/14 105-strike put, with new positions being opened at the latter.

 

Published on May 10, 2021 at 10:35 AM
  • Buzz Stocks

The shares of Box Inc (NYSE:BOX) are up 2.7% at $21.73 at last check, following news that activist investor Starboard Value LP plans on taking greater control of the company, nominating four directors for election to its board. Box's current board responded to the statement this morning, noting it does not believe the proposed changes are warranted.

The security's recovery from its late-2020 plummet to the $15 level has been a choppy one, though the 320-day area has provided a floor for some of this volatility back in January and February, before launching the equity to a March 22, two-year high of $26.47. BOX has dropped dramatically since then, suffering a rather large bear gap in early April. Despite the dip, though, the equity still sports a 25.6% year-over-year lead. 

It looks like option bears can't get enough of the volatile cloud stock, per BOX's 10-day put/call volume ratio of 5.50 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all but 1% of readings from the past year. This means long puts have been picked up at a much quicker clip than usual during the past two weeks. 

Despite some of this choppiness, the security's Schaeffer's Volatility Index (SVI) of 31% stands in the 1st percentile of its 12-month range, meaning option traders have rarely priced in lower volatility expectations for the security during the past year. In other words, premiums on BOX options are relatively cheap right now. 

Not everyone on Wall Street is so pessimistic on BOX. The brokerage bunch has taken a much more bullish stance, with just one of the seven analysts in coverage calling BOX a "strong sell," compared to six "buy" or better ratings. What's more, the 12-month consensus price target of $26.80 is a 24% premium to current levels. 

Published on May 10, 2021 at 9:17 AM
  • Opening View

Stock futures are looking at another mixed morning, with the Dow Jones Industrial Average (DJI) pointed roughly 130 points higher, set for another fresh high right out of the gate, while the, S&P 500 Index (SPX) is also poised for more records. The two major indexes are being inflated by a rise in energy stocks, after a ransomware attack pushed the United State's Colonial Pipeline to close this weekend. Meanwhile, futures on the Nasdaq-100 Index (NDX) are inching lower, as the increasingly volatile tech sector turns sour once again, weighed down by a slew of analyst bear notes.

Continue reading for more on today's market, including:

  • Founder and CEO Bernie Schaeffer dives into if copper's recent run will be here to stay.
  • Breaking down Riot Blockchain stock ahead of its earnings event. 
  • Plus, COTY dips on YoY sales drop; BNTX topples estimates; and SPG jumps on Eddie Bauer buyout buzz. 

futures chart may 10

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts traded on Friday, and 873,877 put contracts. The single-session equity put/call ratio fell to 0.51 and the 21-day moving average stayed at 0.48.
  2. The shares of Coty Inc (NYSE:COTY) are off 4.6% in premarket trading following the cosmetics company's fiscal third-quarter report. The firm's earnings and revenue both matched expectations. However, a 3.3% year-over-year drop in sales in weighing on shares, though in 2021%, the stock has more than doubled, up 109% year-to-date coming into today. 
  3. BioNTech SE (NASDAQ:BNTX), on the other hand, is soaring after the company posted first-quarter profits and revenue that exceeded expectations. The pharma concern also said no current evidence suggests it will need to adapt its Covid-19 vaccine to mutating variants of the virus, though it is prepared to do so if needed. Should today's gains hold, the equity will be well on its way back toward its early May peak of $213.15. 
  4. Simon Property Group Inc (NYSE:SPG) just announced it will be purchasing Eddie Bauer from private equity firm Golden Gate Capital with Authentic Brands, though the monetary details of the deal are unknown. SPG is up 0.5% ahead of the bell in response, adding to its impressive 119% year-over-year lead. 
  5. Monday's calendar is relatively bare, with no economic data on the books.

OV Buzz May 10

Overseas Markets Mixed on U.S. Jobs Data, Interest Rate Speculation

Asian markets were mostly higher on Monday. Investors brushed off a disappointing U.S. jobs report for April, and monitored an advance in oil futures following a cybersecurity attack that left some of the largest stateside pipelines closed. Leading the gainers was South Korea’s Kospi, which rose 1.6%, followed by Japan’s Nikkei, which added 0.6%. Elsewhere, China’s Shanghai Composite added 0.3%, while Hong Kong’s Hang Seng finished slightly below breakeven with a 0.05% loss.

European markets are mostly lower, on the other hand. Traders are still weighing the prospects of an extended period of lower interest rates in the U.S., in the wake of rising unemployment numbers and the lackluster nonfarm payrolls report. At last check, France’s CAC 40 is down 0.2%, the German DAX has fallen 0.1%, and London’s FTSE 100 is slightly above breakeven with a 0.07% gain.

Published on May 10, 2021 at 8:44 AM
Updated on May 10, 2021 at 9:01 AM
  • Monday Morning Outlook
 

“… Cboe Market Volatility Index futures options buyers have returned, with the 20-day buy (to open) call/put ratio at 2.21… its highest level since late-May 2020, which preceded a VIX pop. Long-term readers of Monday Morning Outlook have seen comments in the past along the lines of VIX option buyers historically being smart money… the VIX moved below one half its 2021 closing high (37.21) at 18.60. Be on the lookout for a sharp move higher if the VIX closes back above 18.60 in the days and weeks ahead.”

            -Monday Morning Outlook, April 12, 2021

One month ago, the CBOE Market Volatility Index (VIX--16.69) hit a pandemic low with a reading just below 16. The volatility decline that we were seeing at the time is usually bullish for stocks, but there was something amiss, as described in the observation that I made during that mid-April period, excerpted above. 

Specifically, option buyers on VIX futures were buying calls at an increasing rate relative to puts, an action that has historically preceded VIX pops. As such, I noted that this option activity increased the risk of a pullback, although momentum continued to favor equity market bulls.

It was at that time, and in hindsight, that the 20-day, buy (to open) call/put volume ratio on VIX futures peaked at 2.50. Meanwhile, the VIX made a calendar-year and 52-week closing low at 16.25 just a few days after my mid-April comments.  

Fast forward to early last week, with the VIX hitting an intraday high of 21.85 and a closing high of 19.48. VIX option buyers were correct about the direction of the VIX during the ensuing month. But another move above the 18.50 level, or half its 2021 closing high, proved only temporary. 

Encouraging for equity market bulls is that the option activity I observed last month preceded a narrow trading range around all-time highs in the S&P 500 Index (SPX -- 4,232.60), resulting simply in a loss of momentum from the late-March into mid-April rally. 

While volatility expectations, as measured by the VIX, advanced during this period, it was hardly a volatility pop like that of early June 2020, when the VIX increased by nearly 50% in only one week. This pop occurred after the ratio of VIX futures call buying to put buying on VIX futures in late May hit 2.50, like we saw in mid-April of this year.

With the VIX back below 18.60, following the gradual advance higher discussed above,  the 20-day ratio of call buying to put buying is on the decline, currently at 1.75.  With VIX call buying  relative to put buying decreasing, the worst of a volatility increase hinted at last month may have passed.

5-10 chart 1

“… after the Fed meeting, the SPX completed a third successive day in which the open and close were roughly the same. I referred to them as ‘doji-like,’ as the open and closes were not exactly the same, but close enough that it was easily observed… It remains to be seen if last week’s reversal pattern precedes an immediate decline like we witnessed in January and February.“

A move into the channel suggests loss of momentum since last month’s breakout and risk of a further pullback to a second line of defense at 4,131, which is exactly 10% above the 2020 close.  A third potential support level is 4,100, which is the level at which the breakout above the top of the channel occurred on April 9.”

            -Monday Morning Outlook, May 3, 2021

I have noted increasing vulnerability to a market pullback for weeks now, whether sentiment-based or, in the case of last week, daily candlestick patterns that emerged in late April -- the tri-star doji pattern (circled in graph below) -- that traditionally hint at trend reversals like we saw in January and February.

5-10 chart 2

At the same time, I have suggested that with the trend in equities obviously higher and the index still respecting support levels on pullbacks, one can manage emerging risks by simply hedging long positions versus selling them. Or, at the very least, these various risks suggest that one have a plan to hedge a portfolio without hesitation, if or when support levels on the SPX are no longer holding.

As such, I would not have argued with anyone that began hedging last week when the SPX broke back into its channel and the VIX moved above 18.60, as it makes sense to buy insurance when it is relatively cheap, and the technical backdrop looks “iffy.” Last week, for example, the SPX moved back into a channel that it has been generally trading above since early April. 

But as I noted last week, there are multiple support areas not far below the SPX’s current level. It was the level that coincides with the round 10% -- above the 2020 close that marked support. This SPX 4,131 level was situated only about 1% below that channel line. As such, if last week is indeed a low for the time being, the bearish “tri-star doji” pattern from late April proved to be a good for a negligible 1.3% decline within a few days of the pattern emerging at last week’s intraday lows. In fact, while the SPX broke below its popular 20-day moving average intraday, it never closed below it.  The action around this moving average was like that of late March.

With the SPX closing Friday at an all-time high and more than a week surpassing since the emergence of the bearish “tri-star doji” reversal pattern, one must wonder if the bulls dodged yet another bullet?

With the top of the SPX channel at 4,200 to begin the week and at 4,215 by Friday and last week’s intraday low around 4,130, or 10% above the 2020 close, the area between 4,130 and 4,215 are potentially strong areas of support in the week ahead. But keep in mind that other support levels (discussed in detail last week) lie not far below this zone, so hedging is still recommended as a cheap way to guard against a major unwind of optimism in lieu of moving to cash or even getting overly aggressive on the short side and thus fighting the major trend.

Continue to stay in tune with support levels that I have discussed.  With many companies reporting earnings during the past two weeks, implied volatility on many equity options has decreased substantially. Therefore, you can play the price momentum with call options with those equities helping support the market, such as re-opening plays like traditional retailers, restaurants and metals names that are showing strong price action amid low expectations.

Todd Salamone is Schaeffer's Senior V.P. of Research

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Published on May 10, 2021 at 7:15 AM
  • Buzz Stocks

Today's Stock Market News & Events: 5/10/2021

by Schaeffer's Digital Content Team

May's second week will be a relatively quiet one. It'll be a slow builder, as economic data trickles in over the course of the week, but looking ahead, investors have some job openings data to pair with more initial and continuing jobless claims. In addition, there's a Federal budget balance report due out, as well as consumer sentiment and retail sales data. The earnings docket is full as well, with Airbnb (ABNB), Alibaba (BABA), JD.com (JD), The Children's Place (PLCE), Walt Disney (DIS), and Yeti Holdings (YETI) all slated to report.

Today a quiet day with economic data but the schedule is packed to the brim with earnings reports due out.

The following companies are slated to release quarterly earnings reports today, May 10:

Air Products and Chemicals Inc. (NYSE:APD -- $290.55) provides atmospheric gases, process and specialty gases, equipment, and services. Air Products and Chemicals will report its Q1 earnings of 2021 before the bell today.

Ambac Financial Group Inc. (NYSE:AMBC -- $17.30) operates as a financial services holding company. Ambac will report its Q1 earnings of 2021 before the bell today.

Bally's Corp. (NYSE:BALY -- $58.27) owns and operates gaming and racing facilities in the United States. Bally's will report its Q1 earnings of 2021 before the bell today.

Cerence Inc. (NASDAQ:CRNC -- $89.42) provides AI-powered assistants and innovations for connected and autonomous vehicles. Cerence will report its Q1 earnings of 2021 before the bell today.

Ceva Inc. (NASDAQ:CEVA -- $52.16) operates as a licensor of wireless connectivity and smart sensing platforms. Ceva will report its Q1 earnings of 2021 before the bell today.

Choice Hotels International Inc. (NYSE:CHH -- $115.31) operates as a hotel franchisor. Choice Hotels will report its Q1 earnings of 2021 before the bell today.

Coty Inc. (NYSE:COTY -- $10.34) manufactures, markets, distributes, and sells beauty products. Coty will report its Q1 earnings of 2021 before the bell today.

Diebold Nixdorf Inc. (NYSE:DBD -- $13.69) provides connected commerce solutions to financial institutions and retailers. Diebold Nixdorf will report its Q1 earnings of 2021 before the bell today.

Duke Energy Corp. (NYSE:DUK -- $100.86) operates as an energy company in the United States. Duke Energy will report its Q1 earnings of 2021 before the bell today.

Energizer Holdings Inc. (NYSE:ENR -- $50.53) manufactures, markets, and distributes household batteries, specialty batteries, and lighting products. Energizer will report its Q1 earnings of 2021 before the bell today.

Gates Industrial Corp. (NYSE:GTES -- $17.57) manufactures and sells engineered power transmission and fluid power solutions. Gates Industrial will report its Q1 earnings of 2021 before the bell today.

The Geo Group Inc. (NYSE:GEO -- $5.74) operates as a real-estate investment trust. Geo Group will report its Q1 earnings of 2021 before the bell today.

Intersect ENT Inc. (NASDAQ:XENT -- $21.04) operates as an ear, nose, and throat (ENT) medical technology company. Intersect ENT will report its Q1 earnings of 2021 before the bell today.

MagnaChip Semiconductor Corp. (NYSE:MX -- $24.21) designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions. MagnaChip Semiconductor will report its Q1 earnings of 2021 before the bell today.

Marriott International Inc. (NASDAQ:MAR -- $146.69) operates, franchises, and licenses hotel, residential, and timeshare properties. Marriott will report its Q1 earnings of 2021 before the bell today.

RadNet Inc. (NASDAQ:RDNT -- $23.27) provides outpatient diagnostic imaging services in the United States. RadNet will report its Q1 earnings of 2021 before the bell today.

Scientific Games Corp. (NASDAQ:SGMS -- $56.02) develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries. Scientific Games will report its Q1 earnings of 2021 before the bell today.

TEGNA Inc. (NYSE:TGNA -- $19.95) operates as a media company in the United States. TEGNA will report its Q1 earnings of 2021 before the bell today.

The Trade Desk Inc. (NASDAQ:TTD -- $661.43) operates as a technology company. The Trade Desk will report its Q1 earnings of 2021 before the bell today.

Tyson Foods Inc. (NYSE:TSN -- $78.82) operates as a food company. Tyson Foods will report its Q1 earnings of 2021 before the bell today.

US Foods Holding Corp. (NYSE:USFD -- $40.57) markets and distributes fresh, frozen, and dry food and non-food products. US Foods will report its Q1 earnings of 2021 before the bell today.

Weibo Corp. (NASDAQ:WB -- $47.91) operates as a social media platform for people to create, distribute, and discover content in the People's Republic of China. Weibo will report its Q1 earnings of 2021 before the bell today.

Workhorse Group Inc. (NASDAQ:WKHS -- $9.64) operates as a technology company. Workhorse Group will report its Q1 earnings of 2021 before the bell today.

3D Systems Corp. (NYSE:DDD -- $19.21) provides 3D printing and digital manufacturing solutions. 3D Systems will report its Q1 earnings of 2021 after the market closes today.

8x8 Inc. (NYSE:EGHT -- $28.96) provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions. 8x8 will report its Q1 earnings of 2021 after the market closes today.

AECOM (NYSE:ACM -- $69.11) delivers professional services to program and construction management. AECOM will report its Q1 earnings of 2021 after the market closes today.

Affirm Holdings Inc. (NASDAQ:AFRM -- $54.00) operates a platform for digital and mobile-first commerce. Affirm will report its Q1 earnings of 2021 after the market closes today.

Ameren Corp. (NYSE:AEE -- $84.98) operates as a public utility holding company. Ameren will report its Q1 earnings of 2021 after the market closes today.

Brighthouse Financial Inc. (NASDAQ:BHF -- $48.93) provides annuity and life insurance products in the United States. Brighthouse Financial will report its Q1 earnings of 2021 after the market closes today.

Brooks Automation Inc. (NASDAQ:BRKS -- $99.17) provides manufacturing automation solutions for the semiconductor industry, and life science sample-based services and solutions. Brooks Automation will report its Q1 earnings of 2021 after the market closes today.

Callaway Golf Co. (NYSE:ELY -- $31.13) designs, manufactures, and sells golf clubs and golf balls, apparel, gear, and other products. Callaway Golf will report its Q1 earnings of 2021 after the market closes today.

Cannae Holdings Inc. (NYSE:CNNE -- $38.08) operates as a principal investment firm. Cannae Holdings will report its Q1 earnings of 2021 after the market closes today.

Castle Biosciences Inc. (NASDAQ:CSTL -- $60.32) operates as a commercial-stage dermatological cancer company. Castle Biosciences will report its Q1 earnings of 2021 after the market closes today.

Computer Programs and Systems Inc. (NASDAQ:CPSI -- $31.21) provides healthcare information technology solutions and services. Computer Programs will report its Q1 earnings of 2021 after the market closes today.

Everbridge Inc. (NASDAQ:EVBG -- $114.34) operates as a software company. Everbridge will report its Q1 earnings of 2021 after the market closes today.

Ferro Corp. (NYSE:FOE -- $17.54) produces and markets specialty materials. Ferro will report its Q1 earnings of 2021 after the market closes today.

FibroGen Inc. (NASDAQ:FGEN -- $20.23) operates as a biopharmaceutical company. FibroGen will report its Q1 earnings of 2021 after the market closes today.

Genpact Ltd. (NYSE:G -- $47.13) provides business process outsourcing and information technology (IT) services. Genpact will report its Q1 earnings of 2021 after the market closes today.

Halozyme Therapeutics Inc. (NASDAQ:HALO -- $47.57) operates as a biopharma technology platform company. Halozyme Therapeutics will report its Q1 earnings of 2021 after the market closes today.

Helios Technologies Inc. (NASDAQ:HLIO -- $75.95) develops, manufactures, and sells solutions for the hydraulics and electronics markets. Helios Technologies will report its Q1 earnings of 2021 after the market closes today.

The Howard Hughes Corp. (NYSE:HHC -- $110.73) owns, manages, and develops commercial, residential, and hospitality operating properties. Howard Hughes will report its Q1 earnings of 2021 after the market closes today.

Inovio Pharmaceuticals Inc. (NASDAQ:INO -- $6.85) a biotechnology company. Inovio Pharmaceuticals will report its Q1 earnings of 2021 after the market closes today.

Inter Parfums Inc. (NASDAQ:IPAR -- $74.86) manufactures, markets, and distributes a range of fragrances and fragrance related products. Inter Parfums will report its Q1 earnings of 2021 after the market closes today.

International Flavors & Fragrances Inc. (NYSE:IFF -- $146.45) manufactures and sells cosmetic active and natural health ingredients for use in various consumer products. International Flavors & Fragrances will report its Q1 earnings of 2021 after the market closes today.

j2 Global Inc. (NASDAQ:JCOM -- $122.10) provides internet services. j2 Global will report its Q1 earnings of 2021 after the market closes today.

Magnite Inc. (NASDAQ:MGNI -- $35.84) operates an independent sell-side advertising platform. Magnite will report its Q1 earnings of 2021 after the market closes today.

Maravai LifeSciences Holdings Inc. (NASDAQ:MRVI -- $37.15) operates as a life sciences company. Maravai LifeSciences will report its Q1 earnings of 2021 after the market closes today.

MBIA Inc. (NYSE:MBI -- $9.94) operates as a real-estate investment trust. MBIA will report its Q1 earnings of 2021 after the market closes today.

Mesa Air Group Inc. (NASDAQ:MESA -- $11.15) operates as the holding company for Mesa Airlines, Inc. Mesa Air will report its Q1 earnings of 2021 after the market closes today.

Model N Inc. (NYSE:MODN -- $38.09) provides revenue management cloud solutions for the life sciences and high tech industries. Model N will report its Q1 earnings of 2021 after the market closes today.

National Cinemedia Inc. (NASDAQ:NCMI -- $4.38) operates cinema advertising network in North America. National Cinemedia will report its Q1 earnings of 2021 after the market closes today.

National Health Investors Inc. (NASDAQ:NHI -- $71.10) operates as a real-estate investment trust. National Health will report its Q1 earnings of 2021 after the market closes today.

Nautilus Inc. (NYSE:NLS -- $71.10) operates as a fitness solutions company. Nautilus will report its Q1 earnings of 2021 after the market closes today.

Nelnet Inc. (NYSE:NNI -- $74.99) engages in loan servicing, communications, and education technology, services, and payment processing businesses. Nautilus will report its Q1 earnings of 2021 after the market closes today.

NortonLifeLock Inc. (NASDAQ:NLOK -- $21.09) provides cyber safety solutions for consumers. NortonLifeLock will report its Q1 earnings of 2021 after the market closes today.

Novavax Inc. (NASDAQ:NVAX -- $176.00) operates as a biotechnology company. Novavax will report its Q1 earnings of 2021 after the market closes today.

Nuance Communications Inc. (NASDAQ:NUAN -- $52.81) provides conversational and cognitive artificial intelligence (AI) innovations. Nuance Communications will report its Q1 earnings of 2021 after the market closes today.

Oak Street Health Inc. (NYSE:OSH -- $58.11) offers healthcare services to the patients. Oak Street Health will report its Q1 earnings of 2021 after the market closes today.

Occidental Petroleum Corp. (NYSE:OXY -- $27.39) engages in the acquisition, exploration, and development of oil and gas properties. Oak Street Health will report its Q1 earnings of 2021 after the market closes today.

Rackspace Technology Inc. (NASDAQ:RXT -- $23.72) operates as a multi cloud technology services company. Rackspace Technology will report its Q1 earnings of 2021 after the market closes today.

Repay Holdings Corp. (NASDAQ:RPAY -- $21.49) provides integrated payment processing solutions to industry-oriented markets. Repay Holdings will report its Q1 earnings of 2021 after the market closes today.

Ritchie Bros. Auctioneers Inc. (NYSE:RBA -- $67.09) operates as an asset management and disposition company. Ritchie Bros. will report its Q1 earnings of 2021 after the market closes today.

Roblox Corp. (NYSE:RBLX -- $67.90) develops and operates an online entertainment platform. Roblox will report its Q1 earnings of 2021 after the market closes today.

SailPoint Technologies Holdings Inc. (NYSE:SAIL -- $46.30) provides enterprise identity security solutions. SailPoint will report its Q1 earnings of 2021 after the market closes today.

ScanSource Inc. (NASDAQ:SCSC -- $32.31) distributes technology products and solutions. ScanSource will report its Q1 earnings of 2021 after the market closes today.

Seer Inc. (NASDAQ:SEER -- $38.08) operates as a life sciences company. Seer will report its Q1 earnings of 2021 after the market closes today.

ShockWave Medical Inc. (NASDAQ:SWAV -- $147.87) operates as a medical device company. ShockWave Medical will report its Q1 earnings of 2021 after the market closes today.

Simon Property Group Inc. (NYSE:SWAV -- $124.94) operates as a real-estate investment trust. Simon Property Group will report its Q1 earnings of 2021 after the market closes today.

SmileDirectClub Inc. (NASDAQ:SDC -- $8.38) operates as an oral care company. SmileDirectClub will report its Q1 earnings of 2021 after the market closes today.

Summit Materials Inc. (NYSE:SUM -- $30.95) produces and sells construction materials and related downstream products. Summit Materials will report its Q1 earnings of 2021 after the market closes today.

Switch Inc. (NYSE:SWCH -- $18.13) provides colocation space and related services. Switch will report its Q1 earnings of 2021 after the market closes today.

The RealReal Inc. (NASDAQ:REAL -- $22.80) operates an online marketplace for consigned luxury goods. The RealReal will report its Q1 earnings of 2021 after the market closes today.

Trex Inc. (NYSE:TREX -- $108.82) manufactures and distributes wood and plastic composite products, and related accessories. Trex will report its Q1 earnings of 2021 after the market closes today.

Velodyne Lidar Inc. (NASDAQ:VLDR -- $11.81) provides real-time three-dimensional vision for autonomous systems. Velodyne Lidar will report its Q1 earnings of 2021 after the market closes today.

Virgin Galactic Holdings Inc. (NYSE:SPCE -- $19.61) operates as an integrated aerospace company. Virgin Galactic will report its Q1 earnings of 2021 after the market closes today.

Voya Financial Inc. (NYSE:VOYA -- $70.00) operates as a real-estate investment trust. Voya Financial will report its Q1 earnings of 2021 after the market closes today.

Vuzix Corp. (NASDAQ:VUZI -- $18.82) designs, manufactures, markets, and sells augmented reality (AR) wearable display and computing devices. Vuzix will report its Q1 earnings of 2021 after the market closes today.

Western Midstream Partners L.P. (NYSE:WES -- $21.04) acquire, own, develop, and operate midstream assets. Western Midstream will report its Q1 earnings of 2021 after the market closes today.

WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC -- $29.37) provides modular space and portable storage solutions. WillScot Mobile Mini will report its Q1 earnings of 2021 after the market closes today.


Wynn Resorts Ltd. (NASDAQ:WYNN -- $126.29) designs, develops, and operates integrated resorts. Wynn Resorts will report its Q1 earnings of 2021 after the market closes today.

Looking ahead to tomorrow, things start to pick up on Tuesday as investors digest the latest National Federation of Independent Business' (NFIB) small-business index reading, as well as job openings data. All economic dates listed here are tentative and subject to change.

Published on May 7, 2021 at 4:46 PM
  • Market Recap
  
Published on May 7, 2021 at 1:08 PM
Updated on May 7, 2021 at 4:41 PM
  • 5-Minute Market Rundown

The first week of May started off strong, as investors demonstrated reopening optimism as several states lifted Covid-19 restrictions. In addition, strong corporate earnings continued to boost investor sentiment. By Tuesday, however, things took a turn for the worse. Though the Dow finished the session marginally higher, it spent most of the day trading in red territory. A Big-Tech selloff and U.S. Treasury Secretary Janet Yellen's comments regarding interest rates took a massive toll on the S&P 500 and Nasdaq, too, both of which finished lower. 

Stellar earnings, paired with upbeat economic data, and U.S. President Joe Biden's statements about waving Covid-19 vaccine patent protections, helped stocks recover on Wednesday. In fact, the Dow went on to notch a record close. That happened again on Thursday, as the blue-chip index notched its second-straight all-time high on better-than-expected  jobless claims data. Additionallythe Nasdaq snapped its four-day losing streak in the final hour of trading. By Friday, however, the benchmarks were eyeing weekly losses following a disappointing April non-farm payrolls report, though indexes did rebound on the day and the blue-chip giant snagged a third-consecutive record high.

All Eyes on Vaccine Stocks

Stocks tied to the vaccine race made waves over the course of the pandemic, and with rollouts of now well underway, it should come as no surprise investors are eager to see the results. Pfizer (PFE) reported a first-quarter earnings and revenue beat, and raised its full-year guidance. Plus, the company moved to get vaccine approval for adolescents aged 12-15.

Elsewhere, Vaxart (VXRT) popped after reporting successful early-trial results for its oral Covid-19 vaccine candidate. Lastly, Moderna (MRNA) plummeted despite better-than-expected earnings and sales forecast. Instead, a revenue miss weighed on the stock.

Earnings Season in Full Steam

Another batch of high-profile corporate earnings reports rolled in over the last five days. Unfortunately for XPO Logistics (XPO), the company failed to capitalize on its quarterly win. The same was true for iRobot (IRBT), which plummeted despite a top-line beat. A handful of names had more successful trips to the earnings confessional, however, including Under Armour (UAA) and T-Mobile (TMUS) -- both of which attracted bull notes following their reports.

Several others had good news to share with investors. Regeneron Pharmaceuticals (REGN) redeemed itself after blowing past analysts' estimates, and so did ridesharing giant Uber (UBER), though analysts had mixed feelings about the latter. Roku (ROKU) also surprised Wall Street with a jaw-dropping profit, while AMC Entertainment (AMC) popped despite a wider-than-expected first-quarter loss.

Reports Continue to Pour In, Economic Data Slows

Looking ahead, the earnings season shows no signs of slowing down, with the likes of Airbnb (ABNB), Alibaba (BABA), Walt Disney (DIS), and Yeti (YETI) all slated to report. On the economic data front, it'll be a slow-building week. Investors will have little to digest at first, though a Federal budget balance, retail sales, and initial and continuing jobless claims data is sure to keep them busy later on.

In the meantime, traders can check out the latest Monday Morning Outlook, in which Schaeffer's Senior V.P. of Research Todd Salamone explores the cautionary tale of doji candles. Plus, Schaeffer's Senior Quantitative Analyst Rocky White took a look at how copper can be used to determine market strength  in his last Indicator of the Week.

Published on May 7, 2021 at 10:48 AM
Updated on May 7, 2021 at 4:40 PM
  • Buzz Stocks
 

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