US EARLY MORNING: US equity futures are lower ahead of today's jobs report

Asia-Pac stocks took impetus from the gains on Wall St in holiday-thinned trade; European shares have started on the front foot, although liquidity is thin given that UK players are away. US equity futures are lower (YM -0.1%, ES -0.2%, RTY -0.3%, NQ -0.5%). The jobs report is the key data highlight for the day, we have a link to our preview below; wages are once again the key measure to watch given they will influence the debate on inflation, while the headline is expected to continue easing, as seen in the ADP data earlier this week. US President Biden will be commenting on the report in wake of the data (10:30EDT/15:30BST); the desk reminds that Biden often frames his remarks for a retail audience, not traders, and as such he is likely to talk-up the continued progress being made in the jobs market, potentially highlighting any declines in the unemployment rate. Fed's Vice Chair Brainard will be speaking around the same time; in Thursday remarks, she seemingly dismissed the notion that the Fed could pause its normalisation in September following 50bps rate rises in June and July, but suggested that she was still undecided on September, and the Fed would take into account incoming data while making its assessment. NOTE: The Fed goes into its pre-meeting blackout window after today, while the ECB is currently in its blackout window ahead of next week's confab. Elsewhere today, May's Services ISM data will be eyed to see if there is surprise improvement as seen in the manufacturing equivalent earlier this week. Full Day ahead calendar can be accessed here.

US JOBS REPORT PREVIEW (FRIDAY 08:30EDT/13:30BST) - Headline measures of payroll additions are expected to continue moderating in May. The jobless rate likely fell back to pre-pandemic levels, while the participation rate may inch upwards, which would be an encouraging development. However, the focus will be on wages to see how employment compensation is faring amid surging consumer prices; the expectation is that the annual rates of pay growth eased, but the monthly rate may pick-up relative to April’s levels. The May jobs data may only have a limited impact on near-term Fed policy, given that the central bank is widely expected to lift rates by 50bps in both June and July, but any signs of moderation in wages may support the argument that the Fed could slow the increments of rate rises in September. Full Newsquawk preview here.

EQUITY NEWS:

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  Alaska Air Group, Inc. (ALK) - Raised Q2 guidance, now sees revenues +12-14% vs 2019 (prev. +5-8%). Also raised fuel cost guidance to 3.65-3.68 (prev. 3.25-3.30). Lowered its capacity forecast by 1ppt, FY capacity seen below the low end of flat-to-down-3% vs 2019; ALK said the lowering was due to the retirement of Alaska Air’s A320 aircraft in 2023.


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  Apple Inc. (AAPL) - Reportedly to make conditions for retail store employees more flexible amid union pressure, Bloomberg reports.


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  Asana, Inc. (ASAN) - Lower by 4.6% after results. Q1 EPS -0.30 (exp. -0.36), Q1 revenue USD 120.6mln (exp. 115mln). Sees Q2 EPS between -0.39 and -0.38 (exp. -0.32), and sees Q2 revenue between USD 127-128mln (exp. 125.3mln). FY23 revenue seen between USD 536-540mln (exp. 529.9mln).


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  Chegg, Inc. (CHGG) - Boosts share repurchase programme by USD 1bln, taking it to an aggregate size of USD 2bln.


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  Citigroup Inc. (C) - May record a loss of at least USD 50mln after a London trader’s “fat-finger trade” last month, according to Bloomberg. Citi is reportedly still tallying the loss that may swell.


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  Coinbase Global, Inc. (COIN) - Said that in response to the current market conditions, it will extend its hiring pause for the foreseeable future, as well as rescind a number of accepted offers.


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  Cooper Companies, Inc. (COO) - Fell over 3% after hours. Q2 adj. EPS 3.24 (exp. 3.43), Q2 revenue USD 829.8mln (exp. 821mln). Lowers FY22 EPS outlook to 13.09-13.29 (exp. 13.74, prev. 13.60-14.00), and narrows its FY revenue outlook to USD 3.28-3.31bln (exp. 3.3bln, prev. 3.26-3.33bln)


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  Costco Wholesale Corporation (COST) - May comparable sales ex impacts from changes in gasoline prices and FX +10.7% (exp. 6.8%); company total comp sales ex gasoline/FX +11.8% (exp. 7.0%).


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  CRH (CRH) - Acquires Barrette Outdoor Living for an enterprise value of USD 1.9bln.


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  CrowdStrike Holdings Inc (CRWD) - Q1 EPS 0.31 (exp. 0.23), Q1 revenue USD 487.8mln (exp. 463.27mln), Q1 ARR USD 1.92bln (exp. 1.9bln). Sees Q2 EPS between 0.27-0.28 (exp. 0.25). and sees Q2 revenue view between USD 513-517mln (exp. 511mln). FY guidance raised.


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  Crypto - CFTC filed a complaint against Gemini Trust Company for making false or misleading statements of material facts or omitting to state material facts to the CFTC in connection with the self-certification of a bitcoin futures product. CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, injunctions relating to registration and trading, and an injunction against further violations.


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  DAX Reshuffle - Reshuffle will be announced Friday after 21:00BST, earlier reports indicated that Delivery Hero (DELHY) and HelloFresh (HLFFF) could exit the DAX 40, while Beiersdorf (BDRFY) and Rheinmetall (RNMBY) could enter. Alterations are scheduled to come into effect from June 20th.


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  Duckhorn Portfolio, Inc. (NAPA) - Rose 2.6% after results. Q3 adj. EPS 0.17 (exp. 0.13), Q3 revenue USD 91.6mln (exp. 84.8mln). Boosts FY22 EPS outlook to 0.59-0.62 (exp. 0.60, prev. 0.55-0.58), and lifts FY22 revenue outlook to USD 369-373mln (exp. 367.7mln, prev. 364-369mln).


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  Global Payments Inc. (GPN) - Announced Senior Executive Vice President and Chief Strategy and Enterprise Risk Officer Josh J. Whipple will be appointed its new CFO.


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  Iberdrola (IBDRY) - Expects to invest USD 6.0bln in New York over the next three-years. Later in the year, Avangrid is to negotiate tariff frameworks for distributors in Maine, Connecticut and Massachusetts; investments under the plan contribute to network business growth which it expects to increase to USD 20bln by 2025.


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  Kohl’s Corporation (KSS), Franchise Group, Inc. (FRG) - Kohl’s rose 5.3% after hours. WSJ reports it has received takeover bid from Sycamore and Franchise. Sycamore’s bid values KSS in the mid-50s/shr, Franchise Group offered around USD 60/shr (USD 7-8bln) vs Kohl’s Thursday close at USD 41.18/shr. WSJ said details of the bids were thin, but Kohl’s board expected to review the approach bids in the coming days.


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  Leonardo (FINMY), Rheinmetall (RNMBY) - Rheinmetall has reportedly made a non-binding offer for up to 49% of OTO Melara cannon unit, according to Reuters.


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  Lululemon Athletica Inc. (LULU) - Rose 2.1% after results, raised guidance, with little sign results were impacted by China curbs. Q1 EPS 1.48 (exp. 1.43), Q1 revenue USD 1.60bln (exp. 1.53bln). Q1 comp sales +28% (exp. +24%). Q1 inventories +74% to USD 1.3bln billion on a unit basis. Q2 EPS seen between 1.82-1.87 (exp. 1.75), Q2 revenue outlook is between USD 1.75-1.775bln (exp. 1.7bln). FY Adj. EPS outlook 9.35-9.50 (exp. 9.28), FY Revenue outlook USD 7.61bln-7.71bln (exp. 7.54bln).


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  Meta Platforms (FB) - Announced new creative tools and features to Reels over the coming weeks.


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  Northrop Grumman Corporation (NOC) - Awarded USD 249mln Missile Defense Agency contract.


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  Okta, Inc. (OKTA) - Surged 18% higher after results and boosting FY guidance. Q1 adj. EPS -0.27 (exp. -0.34), Q1 revenue USD 415mln (exp. 389mln). Sees Q2 adj. EPS between -0.32 and -0.31 (exp. -0.33), and sees Q2 revenue between USD 428-430mln (exp. 422.3mln). Lifts FY23 adj. EPS outlook to -1.14 to 1.11 (exp. -1.25), prev. -1.27 to -1.24), and raises its FY23 revenue outlook to USD 1.805-1.815bln (exp. 1.78bln, prev. 1.78-1.79bln).


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  PagerDuty, Inc. (PD) - Rose almost 4% after results. Q1 EPS -0.04 (exp. -0.08), Q1 revenue USD 85.4mln (exp. 82.7mln). Sees Q2 EPS between -0.09 and -0.08 (exp. -0.08), and sees Q2 revenue between USD 87-89mln (exp. 87.2mln). For the FY, sees EPS between -0.21 and -0.17 (exp. -0.20), and sees FY23 revenue between USD 364-369mln (exp. 362.6mln).


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  Pinterest, Inc. (PINS) - To acquire “THE YES”; no terms.


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  RH (RH) - Fell 1.3% after results. Q1 adj. EPS 7.78 (exp. 5.37), Q1 revenue USD 0.96bln (exp. .92bln). Authorises a USD 2bln buyback. Sees Q2 revenue down by 1-3% (exp. +6%, USD 1.04bln). Sees FY22 revenue flat to +2% (exp. +7.5%, USD 4.01bln).


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  Riot Blockchain, Inc. (RIOT) - May bitcoin production +104% Y/Y at 466 BTC; As of May 31, Riot held approximately 6,536 BTC. Riot sold 250 BTC generating net proceeds of approximately USD 7.5mln. CEO said it was initiating a project to refurbish its fleet of S17-Pro Antminers.


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  Spirit Airlines, Inc. (SAVE), Frontier Group Holdings, Inc. (ULCC), JetBlue Airways Corporation (JBLU) - Frontier said it would pay a USD 250mln reverse breakup fee to Spirit if regulators do not approve merger on antitrust grounds, CNBC reported, an effort aimed at convincing investors to approve the deal next week as rival JetBlue Airways tries to buy Spirit outright.


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  Stellantis (STLA) - US DoJ is charging Stellantis' FCA US unit with criminal conspiracy within the US diesel emissions probe. Hearing set for Friday at 18:30BST/13:30EDT, according to a filing.


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  Telecom Italia (TIIAY) - Prepared to end its partnership with DAZN, according to reports; and is looking for new partners, according to La Stampa.


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  Tesla, Inc. (TSLA) - The automaker has slipped by 2.5% in premarket trading on news that it is to pause all hiring worldwide, according to Reuters which cites an internal email. CEO Musk said the automaker needed to make approximately 10% staff reductions, adding that he had a “super bad feeling about the economy”, the reported said. Separately, CEO Thursday announced that the “AI Day” has been pushed back to September 30th, since it might have an Optimus prototype working by then. Musk also pledged that Tesla’s second AI Day “will be epic.”

03 Jun 2022 - 09:27- EquitiesData- Source: Newsquawk