Author: Lucas Manfredi

BBY – House budget resolution vote, Fed's Jackson Hole meeting, Best Buy earnings top week ahead

The upcoming week will feature a slew of earnings from big names including Advanced Auto Parts, Best Buy, Big Lots, Dicks Sporting Goods, Nordstrom, Urban Outfitters, Burlington Stores, Dollar General, Dollar Tree, Peloton Interactive, Gap, HP, and Dell Technologies. 

House lawmakers are also expected to take up a $3.5 trillion budget resolution passed by the Senate earlier this month. In addition, the Federal Reserve Bank of Kansas City will hold its annual economic symposium in Jackson Hole, Wyoming in the back half of the week. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35120.08 +225.96 +0.65%
SP500 S&P 500 4441.67 +35.87 +0.81%
I:COMP NASDAQ COMPOSITE INDEX 14714.663065 +172.87 +1.19%

This as the markets are trading higher after falling last week on concerns about the delta variant and the Federal Reserve‘s announcement that tapering its support for the economy could begin as early as this year. 

FOX Business takes a look at the upcoming events that are likely to move financial markets in the coming days. 

Monday 8/23

Kicking off the week for earnings will be JD.com and Madison Square Garden Entertainment before the market open, followed by Palo Alto Networks after the closing bell. Investors will also be watching the national activity index and existing home sales.

Ticker Security Last Change Change %
JD JD.COM, INC. 63.62 +1.43 +2.30%
MSGE MADISON SQUARE GARDEN ENTERTAINMENT CORP. 62.43 +0.88 +1.43%
PANW PALO ALTO NETWORKS, INC. 367.46 +4.56 +1.26%

In the world of politics, the House of Representatives is expected to cut its recess short and return to session to take up a $3.5 trillion budget resolution on Monday, which includes $550 billion in new infrastructure spending. In addition, House Majority Leader Steny Hoyer said lawmakers also may take up other legislation such as the John Lewis Voting Rights Act. 

Ticker Security Last Change Change %
GM GENERAL MOTORS CO. 48.80 -0.28 -0.57%
F FORD MOTOR CO. 12.57 -0.10 -0.79%

Other notable events on Monday include General Motors’ Lansing Delta Assembly plant resuming production and the beginning of Ford’s recall of certain trucks and SUVs. The International Monetary Fund will also dish out $650 billion in its biggest reserve distribution ever.

Tuesday 8/24

Advanced Auto Parts, Best Buy and Medtronic are slated to report earnings before the market open on Tuesday, while Intuit, Nordstrom, Toll Brothers and Urban Outfitters will report after the closing bell. Economic data to watch on Tuesday includes building permits and new home sales. 

Ticker Security Last Change Change %
AAP ADVANCE AUTO PARTS, INC. 209.68 +1.31 +0.63%
BBY BEST BUY CO., INC. 112.63 +2.87 +2.61%
MDT MEDTRONIC PLC 129.90 +0.97 +0.75%
INTU INTUIT, INC. 545.30 +1.86 +0.34%
JWN NORDSTROM, INC. 35.11 +1.17 +3.45%
TOL TOLL BROTHERS, INC. 59.52 +1.62 +2.80%
URBN URBAN OUTFITTERS, INC. 37.81 +1.29 +3.53%

In addition, ReNew Power will make its debut on the Nasdaq Tuesday under the ticker symbols RNW and RNWWW. Approximately 88% of the votes cast by shareholders on the business combination proposal with special purpose acquisition company RMG II were in favor of the measure. The $8 billion deal marks the biggest overseas SPAC listing of an Indian company. 

Wednesday 8/25

On Wednesday investors will hear from big retail names including Dick’s Sporting Goods, Express, Shoe Carnival. Meanwhile, Autodesk, Box, NetApp, Salesforce, Snowflake and Ulta Beauty will all be delivering earnings results after the bell. 

Ticker Security Last Change Change %
DKS DICK’S SPORTING GOODS, INC. 109.82 +4.79 +4.56%
EXP EAGLE MATERIALS, INC. 150.58 +1.45 +0.97%
SCVL SHOE CARNIVAL 38.27 +2.21 +6.13%
ADSK AUTODESK, INC. 334.38 +4.03 +1.22%
BOX BOX INC 24.87 +0.24 +0.97%
CRM SALESFORCE.COM, INC. 256.13 +3.06 +1.21%
SNOW SNOWFLAKE, INC. 266.67 -12.78 -4.57%
ULTA ULTA BEAUTY, INC. 366.77 +5.91 +1.64%

Economic data in focus on Wednesday includes durable goods, weekly mortgage applications and the Energy Information Administration’s weekly crude stocks.

President Joe Biden delivers a speech on infrastructure spending at Carpenters Pittsburgh Training Center, Wednesday, March 31, 2021, in Pittsburgh. (AP Photo/Evan Vucci)

President Biden will also meet with private sector executives on Wednesday to discuss ways to strengthen cybersecurity as hackers have stepped up ransomware attacks throughout 2021. Check Point Research estimates that the number of ransomware attacks, in which a bad actor seizes a company or individual’s data and withholds it until a ransom is paid, has increased by 93% each week over the last 12 months. The firm notes that North America has experienced a 32% surge in ransomware attacks in the last six months alone.

Ticker Security Last Change Change %
DIS THE WALT DISNEY CO. 175.12 +1.87 +1.08%

Also on Wednesday, Disneyland will open sales for its Magic Keys program, a replacement for its Annual Pass. The program, which is split into four separate tiers dubbed Dream Key, Believe Key, Enchant Key and Magic Key, will offer special perks including dining, merchandise, and parking discounts and the ability to hold multiple theme park reservations at a time. 

In this image from video made available by Blue Origin, the New Shepard rocket lifts off during a test in West Texas on Wednesday, April 14, 2021. (Blue Origin via AP)

In addition, Blue Origin will fly its 17th New Shepard mission to date. The mission, which will liftoff at 9:35 a.m. Eastern Time from Launch Site One in West Texas, will carry a NASA lunar landing technology demonstration on the exterior of its booster, 18 commercial payloads inside the crew capsule, 11 of which are NASA-supported, and an art installation on the exterior of the capsule. To date, New Shepard has flown more than 100 payloads to space across 11 flights.

Thursday 8/26

Thursday marks the busiest day for earnings with 1-800-Flowers, Abercrombie & Fitch, Build-A-Bear Workshop, Burlington Stores, Coty, Dollar General, Dollar Tree, Hain Celestial Group, JM Smucker, and Sanderson Farms all set to report before the market open. 

Ticker Security Last Change Change %
FLWS 1 800 FLOWERS COM 29.30 -0.08 -0.27%
ANF ABERCROMBIE & FITCH CO. 38.02 +0.56 +1.49%
BBW BUILD A BEAR WORKSHOP INC 14.65 +0.43 +3.02%
BURL BURLINGTON STORES 347.52 -1.37 -0.39%
COTY COTY, INC. 7.86 +0.10 +1.29%
DG DOLLAR GENERAL CORP. 234.78 +2.31 +0.99%
DLTR DOLLAR TREE, INC. 102.67 +1.61 +1.59%
HAIN THE HAIN CELESTIAL GROUP, INC. 40.31 +0.21 +0.52%
SJM THE J. M. SMUCKER CO. 131.28 -1.10 -0.83%
SAFM SANDERSON FARMS, INC. 192.50 -0.34 -0.18%

Meanwhile, taking the spotlight after the bell on Thursday will be big names including Dell Technologies, Gap, HP, Peloton Interactive and Workday. 

Ticker Security Last Change Change %
DELL DELL TECHNOLOGIES, INC. 98.50 +2.28 +2.37%
GPS GAP, INC. 28.27 +0.85 +3.10%
HP HELMERICH & PAYNE, INC. 24.13 -0.12 -0.49%
PTON PELOTON INTERACTIVE, INC. 108.07 +0.27 +0.25%
WDAY WORKDAY, INC. 235.95 +4.05 +1.75%

As for economic data, investors will be watching corporate profits, GDP, and weekly initial and continuing jobless claims. 

Friday 8/27

Big Lots will wrap up the week for earnings data, while personal income, consumer spending, the core PCE price index and the University of Michigan’s consumer sentiment index will finish out the week for economic data. 

Ticker Security Last Change Change %
BIG BIG LOTS, INC. 56.07 +1.40 +2.56%

The Federal Reserve Bank of Kansas City will also holds its economic policy symposium titled “Macroeconomic Policy in an Uneven Economy” in Jackson Hole, Wyoming. The event, which was originally slated to host in-person attendees, has switched to a virtual only event due to the “recently elevated COVID-19 health risk level” in Teton County, Wyoming.

“While we are disappointed that health conditions will prevent us from being able to gather in person at the Jackson Lake Lodge this year as we had planned, the safety of our guests and the Teton County community is our priority,” said Kansas City Fed president and CEO Esther George said in a statement.

Federal Reserve Chairman Jerome Powell’s remarks will be live-streamed to the public 10 a.m. eastern time on the Kansas City Fed’s YouTube channel.

FILE PHOTO: Federal Reserve Chair Jerome Powell attends the Federal Reserve Bank of Kansas City’s annual Jackson Hole Economic Policy Symposium in Jackson Hole, Wyoming August 28, 2015. REUTERS/Jonathan Crosby/File Photo/File Photo (REUTERS/Jonathan Crosby/File Photo/File Photo / Reuters Photos)

It will also be a big day for the newly public Astra Space, which will conduct its first orbital launch on Friday in which it will carry a test payload for the U.S. Space Force’s Space Test Program. 

Ticker Security Last Change Change %
ASTR HOLICITY INC 9.62 +0.12 +1.26%

The mission, dubbed STP-27AD1, will take place at Astra’s Kodiak Spaceport, located at the Pacific Spaceport Complex in Kodiak, Alaska. The launch window will begin at 1:00PM pacific time on Friday and remain open through Saturday Sept. 11.

HOOD – Robinhood signals trading slowdown despite strong second quarter boosted by crypto

Robinhood is bracing for a slowdown despite reporting strong second quarter earnings on Wednesday. 

The commission-free trading app, which rose to popularity earlier this year as a result of the trading frenzy related to meme stocks like GameStop and AMC, posted a net loss of $502 million, or $2.16 per diluted share compared with a net income of $58 million, or $0.09 per diluted share, a year ago. Total net revenues surged 131% to $565 million, compared to $244 million during the same period a year ago. 

Transaction-based revenues jumped 141% to $451 million, compared to $187 million a year ago. Options revenue increased 48% to $165 million, up from $111 million a year ago, while cryptocurrency revenue rose to $233 million, compared to $5 million a year ago. Meanwhile, equities transaction-based revenue decreased 26% to $52 million, compared with $71 million a year ago. 

Ticker Security Last Change Change %
HOOD ROBINHOOD MARKETS, INC. 49.80 +3.13 +6.71%

ROBINHOOD GETS BOOST AS CONGRESS DECLINES BAN – FOR NOW – ON SALES TACTIC

According to the company, over 60% of its funded accounts placed their first trade in cryptocurrencies rather than equities. Approximately 59% of funded accounts traded equities, down from 66% a year ago. 

The company’s net cumulative funded accounts grew 130% in the second quarter to a total of 22.5 million, up from 9.8 million a year ago. Monthly active users increased 109% to 21.3 million, up from 10.2 million a year ago. Average revenue per user was $112 in the second quarter, compared to $115 a year ago, and Robinhood now boasts $102 billion in total assets under custody, up 205% from $33 billion a year ago.  

While Robinhood supports a portfolio of seven cryptocurrencies, approximately 62% of its cryptocurrency transaction-based revenue was attributable to transactions in Dogecoin, compared to 34% in the previous quarter.

“If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected,” the company warned in a 10Q filing

Vladimir Tenev said he wants the introduction of digital crypto wallets to be “done correctly and properly.” (Noam Galai/Getty Images for TechCrunch)

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Although Robinhood did not offer full-year guidance, the company anticipates “seasonal headwinds and lower trading activity” will result in lower revenue and considerably fewer new funded accounts in the third quarter. 

Going forward, Robinhood expects to become less reliant on payment for order flow. In the second quarter, payment for order flow for equities and options as a percentage of revenue declined to 38% from 64% in the previous quarter.

“As customer interest in crypto increased, we expect the makeup of revenue to continue to fluctuate and payment for order flow in the near term may again increase,” Robinhood Chief Financial Officer Jason Warnick told analysts and retail investors on the company’s earnings call. “But over the long run, the trend should be continued.”

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When it comes to introducing digital wallets to deposit and withdraw cryptocurrencies, executives acknowledged that it is a “key priority” but “tricky to do with scale.”

“We want to make sure it’s done correctly and properly, and we want to make sure that everything from a security and operations standpoint is as bulletproof as possible because our top value is safety first and we hold ourselves to a very high standard for that,” Robinhood co-founder and CEO Vlad Tenev said. “So I think, as with all these things, we want to make sure it’s right.” 

The company is also exploring giving customers access to tax-advantaged accounts, such as IRAs and Roth IRAs, as well as joint accounts and beneficiaries. However, executives emphasized that any related announcements will not be made for the foreseeable future.

In addition, executives said that a dividend payment to shareholders is unlikely for the foreseeable future as the company remains in a “growth stage.”

Shares of Robinhood have fallen more than 8% in after-hours trading following the earnings results. 

D – Dominion Energy, Warren Buffett's Berkshire Hathway Energy terminate Questar Pipeline sale

Dominion Energy and Warren Buffett’s Berkshire Hathaway Energy have agreed to terminate a planned sale of Questar Pipelines.

Ticker Security Last Change Change %
BRK.A BERKSHIRE HATHAWAY, INC. 422,510.01 +510.00 +0.12%
D DOMINION ENERGY, INC. 75.12 -0.38 -0.50%

Dominion cited “ongoing uncertainty associated with achieving clearance from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976” as the reason for the termination.  

A representative for Berkshire Hathaway Energy did not immediately return FOX Business’ requests for comment. An FTC spokesperson declined to comment.

UK NEEDS TOUGHER POLICIES, MORE PUBLIC AWARENESS TO HIT ZERO EMISSIONS, REPORT SAYS

Dominion said Monday’s announcement has no impact on the sale of gas transmission and storage assets to Berkshire Hathaway Energy.

Berkshire entered into an agreement last year to purchase Dominion’s natural gas transmission and storage network for $4 billion, including more than 7,700 miles of natural gas transmission lines and 900 billion cubic feet of gas storage, according to Reuters

The asset sale, which represents approximately 80% of the original transaction value for Questar Pipelines, was completed in November 2020.

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Additionally, the terminated sale will not change Dominion’s existing financial guidance, the company said, noting it will “continue to account for Questar Pipelines as discontinued operations.”

The company intends to enter into a 364-day term loan, which will be used to repay Berkshire for its approximately $1.3 billion transaction deposit. The loan is expected to be repaid from the proceeds of a Questar Pipelines sale to an alternative buyer. 

Dominion noted it is “commencing a competitive process for the sale of Questar Pipelines,” with a target close by the end of 2021. 

SPCE – Virgin Galactic shares soar after Richard Branson's spaceflight

Just like its founder Richard Branson, Virgin Galactic shares are set to soar as high as 9% in premarket trading Monday.

Ticker Security Last Change Change %
SPCE VIRGIN GALACTIC HOLDINGS INC. 49.20 -3.49 -6.62%

The meteoric rise comes after the aerospace company’s successful Unity 22 mission on Sunday, in which Branson and five other crewmates flew to suborbital space and back. 

VIRGIN GALACTIC GIVING AWAY TO FREE SEATS ON 2022 SPACEFLIGHT

Virgin Galactic’s VSS Unity spaceplane lifted off around 10:30 a.m. Sunday after being delayed by overnight weather, flying to a peak altitude of 86 kilometers above Earth, or 282,000 feet, before gliding back down for a smooth landing at Spaceport America in New Mexico. 

With the help of VMS Eve, a WhiteKnightTwo carrier plane named after Branson’s mother, Unity climbed to an altitude of 50,000 feet before igniting its engine and blasting off to achieve a speed of Mach 3.

The rocket plane carrying Virgin Galactic founder Richard Branson and other crew members takes off from Spaceport America near Truth or Consequences, New Mexico, Sunday, July 11, 2021. (AP Photo/Andres Leighton)

During the trip, which lasted about four minutes, Branson and his crew evaluated the commercial customer cabin, including the cabin environment, seat comfort, the weightless experience and the views of Earth that the spaceship delivers. 

The crew also demonstrated the conditions for conducting human-tended research experiments and confirmed the company’s training program at Spaceport America, which supports the spaceflight experience. 

The crew’s experience was captured through 16 HD cameras throughout the cabin.

VIRGIN GALACTIC’S RICHARD BRANSON REACHES SPACE IN TEST FLIGHT, PART OF FURIOUS SPACE TOURISM RACE

The successful trip has now opened the door for the first commercial spaceflights for tourists. Virgin Galactic is giving away two free seats on a spaceflight scheduled for 2022 in partnership with charity fundraiser Omaze. Every charitable donation will go toward Space for Humanity, a nonprofit that aims to “expand access to space, train our leaders of tomorrow and contribute to a culture of interconnectedness.”

Winners of the giveaway will receive an an all-expenses-paid trip to New Mexico and a tour of Spaceport America by Branson himself. Submissions for the sweepstakes will close on Sept. 1, with winners expected to be announced around Sept. 29.

“I was honoured to test the incredible customer experience onboard Virgin Galatic’s spaceship VSS Unity as part of this remarkable crew of mission specialists – and now astronauts,” Branson said in a statement. “How you feel when you look down on Earth is impossible to put into words, it’s just indescribable beauty. I can’t wait for you all to get up there.”

Following the historic flight, Branson said he can “see even more clearly how Virgin Galactic is the spaceline for Earth.” 

“We are here to make space more accessible to all and turn the next generation of dreamers into the astronauts of today and tomorrow,” he added. “Imagine a world where people of all ages and backgrounds, from anywhere, of any gender, of any ethnicity have equal access to space. They will in turn, inspire us all back here on Earth. If you’ve ever had a dream, now is the time to make it come true. Welcome to the dawn of a new space age.”

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In addition to Virgin Galactic, Jeff Bezos’ Blue Origin is looking to one day send civilians to space, with plans for its first crewed spaceflight on July 20. 

Bezos will climb aboard Blue Origin’s New Shepard rocket along with his brother Mark, 82-year-old female aerospace pioneer Mary Wallace Funk and a mystery auction winner who paid $28 million. 

New Shepard will fly above the Kármán Line, a widely recognized boundary between Earth’s atmosphere and outer space at about 100 kilometers, or around 328,000 feet.

F – Jobs report, Ford earnings and Krispy Kreme IPO top week ahead

It is a big week for the U.S. economy with several jobs reports on tap along with earnings from big retailers and the first restaurant IPO in quite some time which is actually a blast from the past; Krispy Kreme. Also, another well-known name Legal Zoom will IPO as well. 

KRISPY KREME TAKES SECOND CHANCE AT IPO

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34433.84 +237.02 +0.69%
SP500 S&P 500 4280.7 +14.21 +0.33%
I:COMP NASDAQ COMPOSITE INDEX 14360.387701 -9.32 -0.06%

This as the S&P 500 hit an all-time high on Friday and the Dow Jones Industrial Average and Nasdaq sit near record highs. 

FOX Business takes a look at the upcoming events that are likely to move financial markets in the coming days. 

Monday 6/28

Investors will get the first chance to welcome new members to several Russell Indices. GameStop joins the Russell 1000, Fisker the 3000 while AMC remains in the Russell 2000. 

Ticker Security Last Change Change %
GME GAMESTOP CORP. 209.51 -2.80 -1.32%
AMC AMC ENTERTAINMENT HOLDINGS INC 54.06 -2.64 -4.66%
FSR FISKER 19.30 +0.26 +1.37%

As for earnings, Herman Miller is due after the bell on Monday. 

Ticker Security Last Change Change %
MLHR HERMAN MILLER, INC. 48.28 +0.03 +0.06%

While the calendar is light for economic data, New York Federal Reserve President John Williams will deliver a speech at the BIS Andrew Crockett Memorial Lecture at 8:45 AM ET. 

John Williams, president of the Federal Reserve Bank of San Francisco, right, speaks during Politico’s Morning Money lunch briefing in Washington, D.C., U.S., on Tuesday, May 17, 2016. The two regional Federal Reserve bank presidents said at least tw (Getty images)

In the world of politics, President Biden will host Israel President Reuven Rivlin at the White House. 

“President Rivlin’s visit will highlight the enduring partnership between the United States and Israel and the deep ties between our governments and our people.  It will be an opportunity to consult about the many challenges and opportunities facing the region,” White House press secretary Jen Psaki said in a statement

Secretary of State Antony Blinken will also travel overseas to attend the G20 Foreign Ministers’ meeting and meet with world leaders including German Chancellor Angela Merkel, French President Emmanuel Macron, and Italian President Sergio Mattarella.

Tuesday 6/29

On Tuesday, investors will take in earnings from Barnes & Noble Education and FactSet Research Systems before the opening bell. 

Ticker Security Last Change Change %
BNED BARNES & NOBLE EDUCATION INC COM 8.87 -0.43 -4.62%
FDS FACTSET RESEARCH SYSTEMS, INC. 332.08 +1.45 +0.44%

The day will also be jam-packed with virtual investor days for Jack in the Box, Capri Holdings and Sempra Energy. 

While movie-chain-turned-meme-stock AMC Entertainment Holdings will host its annual meeting. As of June 2, there were 501,780,240 AMC shares outstanding. Despite speculation, AMC emphasized that it has no plans to propose or take any actions regarding a stock split or reverse stock split.

Ticker Security Last Change Change %
JACK JACK IN THE BOX, INC. 120.08 -0.71 -0.59%
CPRI CAPRI HOLDINGS LTD. 56.26 +0.74 +1.33%
SRE SEMPRA ENERGY 137.47 +1.92 +1.42%
AMC AMC ENTERTAINMENT HOLDINGS INC 54.06 -2.64 -4.66%

For economic data, the Case-Shiller home price index and the consumer confidence index top the reports. 

Other notable events on Tuesday include President Biden’s visit to Wisconsin to talk agriculture and rural economies. 

And former President Barack Obama’s appearance at the American Libraries Association Annual Conference where he will discuss his memoir A Promised Land. 

President Barack Obama speaks to the media before a meeting with his cabinet members in the White House Cabinet Room in Washington, Friday, Nov. 7, 2014. (AP Photo/Evan Vucci)

Wednesday 6/30

Wednesday will be one of the busiest days for the market this week as Bed Bath & Beyond, Constellation Brands, and Micron Technology are set to report earnings. 

Ticker Security Last Change Change %
BBBY BED BATH & BEYOND, INC. 28.93 -1.32 -4.36%
STZ CONSTELLATION BRANDS, INC. 228.60 +2.60 +1.15%
MU MICRON TECHNOLOGY, INC. 82.03 +1.45 +1.80%

Online legal services provider, LegalZoom, is also set to begin trading on the Nasdaq under the ticker symbol LZ. Reuters reported that LegalZoom plans to sell over 19 million shares priced between $24 – $27 per share to raise $516 million.

As for economic data, investors will be watching ADP national employment, the Chicago Purchasing Managers Index, pending home sales and weekly mortgage applications, and the Energy Information Administration’s weekly crude stocks. 

FILE – In this Thursday, Nov. 5, 2020, file photo, President Donald Trump speaks at the White House, in Washington. (AP Photo/Evan Vucci, File)

Former President Donald Trump is also set to visit the U.S.-Mexico border with Texas governor Greg Abbott as an influx of migrants continue to cross the southern border.  

Thursday 7/1

On Thursday, investors will hear from big names including Acuity Brands, McCormick, Walgreens Boots Alliance, who are all set to report earnings before the market open. 

Ticker Security Last Change Change %
AYI ACUITY BRANDS, INC. 193.11 +1.47 +0.77%
MKC MCCORMICK & CO., INC. 87.28 +1.00 +1.16%
WBA WALGREENS BOOTS ALLIANCE, INC. 52.16 +0.06 +0.12%

Meanwhile, economic data will include challenger layoffs, initial and continuing jobless claims, construction spending, and the ISM manufacturing PMI.

Krispy Kreme original glazed doughnuts half dozen box

Krispy Kreme original glazed doughnuts half dozen box (iStock)

Krispy Kreme is also set to return to the market Thursday with an initial public offering looking to raise up to $640 million. The donut chain is planning to sell 26.67 million shares at a price between $21 and $24 apiece. The company would be valued at $3.22 billion at the high end of its range. Shares are proposed to trade on the Nasdaq under the ticker DNUT. 

Other notable events happening Thursday include OPEC and non-OPEC’s ministerial virtual meeting.

Friday 7/2

Friday will be among the most important for investors with Ford Motor Company’s earnings and the July jobs report.

U.S. employers are expected to have added 650,000 positions in June while the unemployment rate dipped to 5.7%. 

MAY JOBS REPORT FALLS SHORT

This would show an improvement from May when employers added 559,000 jobs, the Labor Department reported, missing the 650,000 jobs that analysts surveyed by Refinitiv were expecting. April’s reading was revised higher by 12,000 to 278,000.

Ticker Security Last Change Change %
F FORD MOTOR CO. 15.19 -0.07 -0.46%

Friday will also mark a big day for Royal Caribbean as the company launches cruises from U.S. ports after a COVID-19 induced hiatus. 

CARNIVAL CEO: DEMAND IS REBOUNDING FASTER THAN SUPPLY

Ticker Security Last Change Change %
RCL ROYAL CARIBBEAN GROUP 89.22 +2.25 +2.59%
CCL CARNIVAL CORP. 28.13 +0.67 +2.44%

CEOs of both Royal Caribbean and Carnival Cruise telling FOX Business demand is rebounding. 

VPCC – Mark Cuban-backed Dave plans public offering through SPAC

Dave, a banking app backed by Dallas Mavericks owner Mark Cuban, is planning to go public through a business combination with Chicago-based global investment firm Victory Park Capital’s special purpose acquisition company, VPC Impact Acquisition Holdings III, Inc.

Special purpose acquisition companies, or SPACs, are shell companies that have no active business operations but are listed on major exchanges where investors can buy shares. They use funds raised by their sponsors and investors to acquire other companies.

WILLIAM ACKMAN SPAC NEARS $40 BILLION UNIVERSAL MUSIC DEAL

Dave, founded in 2017, is a financial platform that assists about 10 million customers with banking, financial insights, overdraft protection, building credit and finding side gigs. 

To date, Dave estimates that it has helped its customers avoid nearly $1 billion in overdraft fees through its flagship feature, ExtraCash, and earn over $200 million in income through its gig-economy job board, Side Hustle. In December 2020, the company launched Dave Banking, a spending account and debit card with no monthly fees, which has already accumulated more than 1.3 million members. 

“We believe the legacy financial system has failed to deliver and today, more than 150 million people need our help to build financial stability,” Dave CEO Jason Wilk said in a statement. “Dave is upending the banking industry with our suite of breakthrough financial products and making a meaningful impact on our customers’ lives. This transaction and continued support from our longstanding investors signify confidence in our strategy, vision and the significant growth opportunities ahead.”

Ticker Security Last Change Change %
VPCC VPC IMPACT ACQUISITION HOLDINGS III INC. 9.88 -0.01 -0.10%

Victory Park Capital recently provided a $100 million credit facility to the company in January 2021. VPC Impact Acquisition Holdings III (VPCC) completed an initial public offering in March 2021.

“Dave’s growth and expansion over the last few years have been significant and we believe that the company has only scratched the surface of what it can achieve,” Brendan Carroll, co-CEO of VPCC and senior partner and co-founder of VPC, added. “With its strong management team, differentiated product suite and immense brand affinity, we believe Dave is well-positioned to achieve future growth and continue to disrupt the legacy financial system.”

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Following completion of the transaction, the combined company will trade under the ticker symbol DAVE and is expected to have an equity value of approximately $4 billion.

It is also expected to result in over $375 million in cash on the company’s balance sheet, including a contribution of up to $254 million of cash held in VPCC’s trust account and a $210 million concurrent private placement led by Tiger Global Management with additional participation from Wellington Management and Corbin Capital Partners.

In addition to Cuban, the company is backed by Norwest, Section 32, Capital One, The Kraft Group, SV Angel and The Chernin Group. The company’s board of directors includes Wilk, Cuban, Metromile CEO Dan Preston, Google Ventures Founders Bill Maris, and Norwest Venture Partners’ Parker Barrile.

The business combination has been unanimously approved by the Boards of Directors of Dave and VPCC. The transaction, which is subject to regulatory and VPCC stockholder approval, is expected to close late in the third quarter or the fourth quarter of 2021. 

COST – Costco earnings, Bitcoin and Biden's budget top week ahead

Investors will take in another wave of earnings this week from big names including Best Buy, Costco and Dick’s Sporting Goods. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34207.84 +123.69 +0.36%
SP500 S&P 500 4155.86 -3.26 -0.08%
I:COMP NASDAQ COMPOSITE INDEX 13470.99253 -64.75 -0.48%

As for stocks, more volatility in the cryptocurrency markets may spill over into equities as investors experienced last week. As of Sunday, Bitcoin took another beating, falling to the $31,000 level. 

FOX Business takes a look at the upcoming events that are likely to move financial markets in the coming days. 

Monday 5/24

On Monday, both Lyft and Uber will be teaming up with the White House to begin offering free rides to COVID-19 vaccination centers beginning May 24. Lyft will offer a “ride code”, covering up to $15 for each trip to and from a vaccination site. The offer covers daytime rides on bikes and scooters, as well as cars. Uber has not provided additional details on its plans. 

Ticker Security Last Change Change %
LYFT LYFT INC. 52.32 +0.36 +0.69%
UBER UBER TECHNOLOGIES, INC. 48.81 -0.48 -0.97%

The promotion will run through July 4, the Biden administration’s intended goal for 70% of all U.S. adults to get at least one vaccine shot.

Ticker Security Last Change Change %
AMZN AMAZON.COM, INC. 3,203.08 -44.60 -1.37%
FB FACEBOOK, INC. 316.23 -2.38 -0.75%

Facebook will reopen its offices in Sunnyvale, California at 10% capacity beginning May 24 and Amazon will allow fully vaccinated warehouse workers to ditch masks unless mandated by state and local laws. To be eligible, Amazon workers will have to present a vaccine card. Employees receive a bonus of $40 for each vaccine dose they receive.

Ticker Security Last Change Change %
RIDE LORDSTOWN MOTORS 9.58 -0.12 -1.24%

Earnings will be light on Monday, with electric vehicle manufacturer Lordstown Motors taking the spotlight after the bell.

Tuesday 5/25

On Tuesday AutoZone and Cracker Barrel are reporting before the opening bell, while Intuit, Nordstrom, Red Robin Gourmet Burgers, Toll Brothers and Urban Outfitters will release after the bell.  

Ticker Security Last Change Change %
AZO AUTOZONE 1,457.94 -15.54 -1.05%
CBRL CRACKER BARREL OLD COUN.ST.INC 160.37 -1.50 -0.93%
INTU INTUIT, INC. 433.43 -1.84 -0.42%
JWN NORDSTROM 37.80 -0.40 -1.05%
RRGB RED ROBIN GOURMET BURGERS 34.91 -0.52 -1.47%
TOL TOLL BROTHERS 59.88 -0.60 -1.00%
URBN URBAN OUTFITTERS 33.82 -0.31 -0.91%

Investors will also be given a slew of housing data on Tuesday, including new home sales, building permits, the Federal Housing Finance Agency’s monthly home price index, and the Case-Shiller home price index, as well as the latest data on consumer confidence.

Tuesday will also mark one year since the death of George Floyd, a Black man killed by former Minneapolis police officer Derek Chauvin. Chavuin, 45, was found guilty of second-degree unintentional murder, third-degree murder and second-degree manslaughter for Floyd’s death in April.  President Biden will host Floyd’s family at the White House on Tuesday.

Ticker Security Last Change Change %
ETSY ETSY, INC. 167.56 -4.80 -2.78%

Elsewhere, Etsy will ban gun parts and accessories from being sold on its platform beginning Tuesday.

Wednesday 5/26

Wednesday will be a big day for ZipRecruiter and Paymentus, both of which are slated to make their debuts on the New York Stock Exchange. 

ZipRecruiter, a marketplace for job postings utilized by over 2.8 million businesses and 110 million job seekers, will file under a direct listing, in which a company becomes publicly traded without a bank-backed IPO by enlisting large investors first and setting an opening share price.

The company, which will trade under the symbol ZIP, became profitable in 2020, reporting $86 million in income from $6.3 million in losses in 2019. Revenue dropped nearly 3% to $418 million in 2020, according to the company’s prospectus filing

Meanwhile, Paymentus, which handles cloud-based payments, has filed under a traditional IPO to sell 10 million shares, trading under the symbol PAY. It reported 2020 revenue of $302 million and net income of $13 million. At $21 a share, the high end of the expected pricing range, the company could be valued at $2.4 billion.

Ticker Security Last Change Change %
ANF ABERCROMBIE 37.16 -0.24 -0.64%
BBW BUILD A BEAR WORKSHOP INC 9.78 +0.04 +0.41%
DKS DICKS SPORTING 83.31 -0.28 -0.34%
AEO AMERICAN EAGLE OUTFITTERS, INC. 32.74 -0.04 -0.12%
ELF E L F BEAUTY INC 28.78 -0.55 -1.88%

Retailers will dominate earnings during the day with Abercrombie & Fitch, Build-A-Bear Workshop, Dick’s Sporting Goods all set to report before the opening bell, while American Eagle Outfitters and e.l.f. Beauty report after the bell. Other names reporting after the bell Wednesday include NVIDIA, Okta, Snowflake, and Workday.

Ticker Security Last Change Change %
NVDA NVIDIA CORP. 599.67 +15.17 +2.60%
OKTA OKTA, INC. 238.31 +4.28 +1.83%
SNOW SNOWFLAKE, INC. 233.35 +2.85 +1.24%
WDAY WORKDAY, INC. 231.42 -2.01 -0.86%

As for economic data, investors will watch mortgage applications and the Energy Information Administration’s data on weekly crude stocks. 

Thursday 5/27

On Thursday, President Biden will travel to Cleveland, Ohio to deliver remarks on the economy. Biden’s comments will come as investors take in data on new and continuing jobless claims, pending home sales, durable goods, corporate profits and revised GDP. 

Biden will also release the first detailed budget proposal of his presidency, outlining his spending priorities ranging from foreign aid, immigration and policing to defense spending and deficit reduction. 

AP Photo/Evan Vucci

As for earnings Best Buy,  Burlington Stores, Dollar General, Dollar Tree and Medtronic will report before the start of trading on Thursday.

Ticker Security Last Change Change %
BBY BEST BUY 114.88 +0.49 +0.43%
BURL BURLINGTON STORES 322.90 +1.45 +0.45%
DG DOLLAR GENERAL 205.17 +0.46 +0.22%
DLTR DOLLAR TREE, INC. 108.58 +0.21 +0.19%
MDT MEDTRONIC PLC 127.34 +0.53 +0.42%
COST COSTCO WHOLESALE CORP. 380.72 -2.86 -0.75%
DELL DELL TECHNOLOGIES 98.47 -0.12 -0.12%
GPS GAP 32.55 -0.03 -0.09%
HP HELMERICH & PAYNE INC 28.90 +0.18 +0.63%
LGF.A LIONS GATE ENTERTAINMENT CORP. 18.17 -0.43 -2.31%
CRM SALESFORCE.COM, INC. 222.52 -1.48 -0.66%
ULTA ULTA BEAUTY, INC. 316.08 -2.54 -0.80%

While Costco, Dell Technologies, Gap, HP, Lions Gate Entertainment, Salesforce, and Ulta Beauty are among the major players to announce earnings after the bell. 

Ticker Security Last Change Change %
DIS THE WALT DISNEY CO. 172.51 +1.37 +0.80%

Another notable company to watch on Thursday will be Disney, which will unveil its newest cruise ship, Disney Wish, which will also begin to take bookings. The ship, which will weigh in at about 144,000 gross tons and include 1,250 staterooms, will set sail beginning in summer 2022. 

Friday 5/28

Wrapping up the week will be earnings from Big Lots and Hibbett Sports before the opening bell.

Ticker Security Last Change Change %
BIG BIG LOTS INC. 64.19 -0.27 -0.42%
HIBB HIBBETT SPORTING 77.00 +1.33 +1.76%

The consumer will also be in focus on Friday with data on personal income and consumer spending and the University of Michigan’s consumer sentiment index.

 Other economic data to watch will be core inflation, the advance report for the trade deficit for the month of April, and the Chicago purchasing managers index. 

TSLA – Tesla claims deadly Texas car crash may have had passenger behind the wheel

Tesla CEO Elon Musk doubled down Monday on his previous claim that the electric vehicle’s Autopilot feature did not play a role in a fatal crash in Texas earlier this month that killed two people

Musk reiterated his criticism of media reports surrounding the crash during the company’s first-quarter earnings call, labeling the stories as “extremely deceptive” and “totally false.” He added that any journalists suggesting that Autopilot played a role should be “ashamed of themselves.”

TESLA’S ELON MUSK CITES ‘REALLY SEVERE SUPPLY CHAIN ISSUES’ YET STILL POSTS RECORD DELIVERIES

Lars Moravy, Tesla vice president of vehicle engineering, told analysts on the earnings call that representatives from the company were able to inspect the crash along with local law enforcement and federal investigators from National Highway Traffic Safety Administration (NHTSA) and the National Transportation Safety Board (NTSB).

“What we’ve learned from that effort was that autosteer did not and could not engage on the road condition as it was designed,” Moravy said. “Our adaptive cruise control only engaged when the driver was buckled and above five miles per hour and it only accelerated to 30 miles per hour over the distance before the car crashed. Adaptive cruise control disengaged the car slowly to complete the stop when the driver’s seat belt was unbuckled.”

Further investigation of the vehicle and the accident found that the steering wheel was “deformed,” which Moravy said points to “the likelihood that someone was in the driver’s seat at the time of the crash.” He added that all seat belts post-crash were found to be unbuckled.

Tesla said it has so far been unable to recover data from the vehicle’s SD card at the time of impact. Tesla models allow for these secure digital memory cards to use the cameras installed in the car to continuously record what is happening on the road while driving, as well as space around the vehicle when Sentry Mode is activated.

“Local authorities are working on doing that and we await their report,” Moravy added. “We continue to hold safety in a high regard and look to improve our products in the future through this kind of data and other information from the field.”

BITCOIN SALE NETS TESLA $10M BELIEVERS IN LONG-TERM VALUE

Tesla’s claim contradicts previous comments made by Mark Herman, constable for Harris County Precinct 4. 

Herman told KHOU, the CBS affiliated TV station in Houston, that police “are 100 percent certain that no one was in the driver’s seat,” noting the two victims were found in the passenger and back seat. 

According to the New York Times, Herman also said that minutes before the crash, the wives of the two men watched them leave in the Tesla after the husbands said they wanted to go for a drive and were talking about the vehicle’s Autopilot feature.

A test drive of a Tesla Model Y by Consumer Reports engineers found that Autopilot can still run regardless of whether a passenger is in the driver seat. 

TESLA TEST DRIVE SHOWS AUTOPILOT WILL RUN WITHOUT PASSENGER BEHIND THE WHEEL

Earlier this month, Tesla released its accident data for the first quarter of 2021. Musk claimed that Tesla vehicles with Autopilot engaged are now approaching a 10 times lower chance of an accident than the average vehicle. 

In the first quarter of 2021, the company registered one accident for every 4.19 million miles driven with Autopilot engaged. For those driving without Autopilot but with the Tesla’s active safety features, the company registered one accident for every 2.05 million miles driven. As for those driving without Autopilot or active safety features, the company registered one accident for every 978,000 miles driven. 

In comparison, the most recent data from the National Highway Transportation Security Administration finds that there is an automobile crash in the United States every 484,000 miles. 

Tesla warns consumers that while its Autopilot and Full Self-Driving Capability features are designed to become more capable over time, they do not make the vehicle autonomous, and are intended for use with a fully attentive drive who has their hands on the wheel and is prepared to take over at any moment.

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Tesla noted in its earnings release that it is working on developing a “vision-only system,” which it claims is “ultimately all that is needed for full autonomy.” 

“Our AI-based software architecture has been increasingly reliant on cameras, to the point where radar is becoming unnecessary earlier than expected,” the company wrote. As a result, the company said its Full Self Driving (FSD) team “is fully focused on evolving to a vision-based autonomous system and we are nearly ready to switch the US market to Tesla Vision.” 

Musk said on the earnings call that removing the vehicle’s radar system is “finally getting rid of one of the last crutches” to completing its autonomous driving system, which will utilize eight cameras.  

“Radar was really, it was making up for some of the shortfalls of vision but this is not good. You actually just need vision to work,” Musk said. “When vision works, it works better than the best human. It’s like having eyes in the back your head, the side of your head and has three eyes of different focal distances looking forward and processing it at a speed that is superhuman.”

Musk believes Tesla’s self-driving car technology will help create a car that is “dramatically safer” than the average vehicle.

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Despite the safety concerns and “really severe supply chain issues,” Tesla hit a new record of 184,877 vehicle deliveries in the first quarter. 

The company also reported record net income of $438 million, or 39 cents per share, compared with $16 million, or 2 cents a share, a year ago. Adjusted for one-time items, the company earned 93 cents per share. Total revenue grew 74% year-over-year to $10.3 billion, with about $518 million in automotive revenue coming from sales of regulatory credits. Both top and bottom line exceeded analyst estimates.  

Ticker Security Last Change Change %
TSLA TESLA, INC. 738.20 +8.80 +1.21%

Tesla expects the first deliveries of its latest Model S to begin “very shortly” and noted that Model Y production in Shanghai and Fremont, California continues to ramp up. The company also noted that its making progress on its two new factories in Berlin and Texas, which remain on track to start vehicle production and deliveries later this year. Tesla Semi deliveries will also begin in 2021.

Looking ahead, the company expects 50% average growth in vehicle deliveries in 2021 and beyond. 

Tesla stock fell as much as 3% in after-hours trading following company’s earnings announcement.