Markt snapshot Wall Street 21 juli

TOP NEWS
• Work-in-progress U.S. infrastructure bill faces test on Senate floor
President Joe Biden's goal of passing a $1.2 trillion bipartisan infrastructure bill faces a test on Wednesday as Democratic Senate Majority Leader Chuck Schumer presses ahead with a planned procedural vote despite Republican appeals for delay.

• Johnson & Johnson forecasts $2.5 billion in COVID-19 vaccine sales this year
Johnson & Johnson forecast just $2.5 billion in 2021 sales of its COVID-19 vaccine, which has fallen way behind rival shots from Pfizer and Moderna as the company deals with vaccine production issues and safety concerns.

• 'Every time, it's messy:' U.S. again approaching debt ceiling
The U.S. Congress will learn on Wednesday when the federal government will likely run out of money to pay its bills, setting the stage for the latest in a long series of fights over what is known as the debt ceiling.

• Health insurer Anthem raises 2021 profit forecast after upbeat second quarter
Anthem beat Wall Street estimates for second-quarter profit and marginally raised its 2021 earnings target, as the health insurer reported lower-than-expected medical costs despite a rebound in demand for non-COVID healthcare services.

• Harley profit beats as turnaround plan shows signs of progress
U.S. motorcycle maker Harley-Davidson reported a better-than-expected quarterly profit, as it benefited from its focus on selling high-margin touring and cruiser bikes under a new turnaround plan.


BEFORE THE BELL
U.S. stock index futures rose after upbeat quarterly results and forecasts from companies including Johnson & Johnson and Harley Davidson. A slew of upbeat updates from blue-chip firms helped European shares rise. Japan's Nikkei ended higher, as investors bought stocks on dips over cautious earnings optimism ahead of a long weekend that will mark the start of the Tokyo 2020 Olympics. Gold prices eased as a stronger dollar contended with the metal's safe-haven status amid worries of a pandemic resurgence. Oil prices rose as improved risk appetite provided support.


STOCKS TO WATCH
Results
• Anthem Inc: The company beat Wall Street estimates for second-quarter profit and marginally raised its 2021 earnings target, as the health insurer reported lower-than-expected medical costs despite a rebound in demand for non-COVID healthcare services. The company said it expected to earn over $25.50 adjusted earnings per share this year, compared to its previous estimate of over $25.10. Anthem said its benefit expense ratio worsened to 86.8% in the second quarter, from 77.9% a year earlier. Analysts on average expected 87.78%, according Refinitiv IBES data. Excluding items, Anthem earned $7.03 per share in the quarter ended June 30, ahead of the average analyst estimate of $6.33 per share.

• ASML Holding NV: ASML hiked its 2021 sales outlook and announced a new share buyback, as orders for its equipment soared amid a global computer chip shortage. "Everybody is working extremely hard, us and our suppliers, to actually produce ... more machines," Chief Executive Officer Peter Wennink said. "It's all driven by basically what we are seeing today which is the digital revolution." ASML, which reported second quarter net profit up 38% at 1.02 billion euros, lifted its 2021 sales growth outlook to 35%. It said it would buy back 9 billion euros worth of its own shares by the end of 2022, replacing its almost finished 6 billion euro buyback launched last year.

• Chipotle Mexican Grill Inc: The company beat estimates for earnings and comparable quarterly sales on Tuesday but warned that higher beef and freight costs will offset the benefit of menu prices hikes in the near term. In the current quarter, commodity costs and staffing shortages at suppliers will mostly cancel out the 3.5% to 4% menu price increase originally implemented to pay for higher wages, Chief Financial Officer Jack Hartung said in a call with analysts. "It shouldn't be a surprise to anyone that Q3 is going to be challenged by several industry-wide issues," Hartung said. Excluding one-time items, the company posted earnings per share of $7.46 for the second quarter ended June 30, crushing estimates of $6.52. Chipotle said it expects third-quarter sales growth in the low to mid double-digits range, compared with estimates of 9.7%. Net income was about $188 million, or $6.60 per share, for the quarter, compared with $8.2 million, or 29 cents per share, a year earlier.

• Harley-Davidson Inc: The U.S. motorcycle maker reported a better-than-expected quarterly profit, as it benefited from its focus on selling high-margin touring and cruiser bikes under a new turnaround plan. The company said its shipments doubled to 56,700 units in the second quarter. "We are starting to see the initial proof points as we execute our Hardwire Strategy," Chief Executive Officer Jochen Zeitz said.Net profit was $206.3 million, or $1.33 per share, in the quarter ended June 27, compared with a loss of $92.2 million, or 60 cents, a year earlier. On an adjusted basis, Harley earned $1.41 per share in the quarter, beating analysts' average estimate of $1.17 per share, according to IBES data from Refinitiv. Revenue from motorcycles and related products nearly doubled to $1.33 billion.

• Johnson & Johnson: The company forecast just $2.5 billion in 2021 sales of its COVID-19 vaccine, which has fallen way behind rival shots from Pfizer and Moderna as the company deals with vaccine production issues and safety concerns. J&J said it expects full-year sales of $91.3 billion-$92.1 billion this year from the rest of the business, and $93.8 billion to $94.6 billion including contribution from the single-dose vaccine. Pfizer has forecast $26 billion in sales of its vaccine, while has forecast $19.2 billion in vaccine sales this year. Both were approved in the United States last year, while the J&J shot was approved this year. Both companies have said they expect to profit from their vaccines, while Johnson & Johnson has said it will make the vaccine available on a not-for-profit basis during the pandemic.

• Lithia Motors Inc: The auto retailer followed larger rival AutoNation in reporting a record quarterly profit, boosted by strong demand for personal transportation amid low availability of vehicles. The company's sales and average gross profit for new vehicles surged 130% and 58%, respectively. Sales from used vehicles nearly doubled, with average gross profit jumping 47%. "With 40% of our targeted $20 billion revenue acquired in the first year of our 5-year plan, we are well ahead of schedule and are only getting started," CEO Bryan DeBoer said. For the quarter, its net income rose nearly four-fold to $304.9 million. On an adjusted basis, it earned $11.12 per share, beating analysts' estimate of $6.17, according to Refinitiv data, while its record revenue of $6.01 billion also surpassed estimates.

• Netflix Inc: The company said it would make a deeper dive into video games as the movie and TV streaming service projected weak subscriber growth amid growing competition and the lifting of pandemic restrictions that had kept people at home. In the United States and Canada, Netflix reported losing about 430,000 subscribers in the second quarter, only its third quarterly decline in 10 years. "Netflix delivered another underwhelming quarter as competition in the streaming space heats up," said Investing.com senior analyst Jesse Cohen. "The absence of any new looming growth catalysts has been one of the main reasons for Netflix’s relatively mild performance this year." Earnings for April through June came in at $2.97 per share, below the average forecast of $3.16. If its subscriber forecast pans out, Netflix will have added more than 54 million subscribers over the past two years, a pace consistent with its annual additions before the COVID-19 pandemic, the company said.

• Novartis AG: The Swiss drugmaker beat second-quarter sales and profit expectations, while keeping its 2021 guidance unchanged, as disruption from the coronavirus pandemic waned. Finance chief Harry Kirsch told reporters that the pandemic was still weighing, for instance, on cancer patients' diagnostic rates, which crimped sales of products sold via hospitals. He estimated business was probably averaging 80-90% of pre-COVID levels, with strong divergences by category and country. Novartis boosted core net profit by a fifth to $3.72 billion. Core operating income rose 18% to $4.35 billion. Sales in the three months through June rose 14% to $12.96 billion, a gain of 9% when stripping out currency fluctuations.

• Qualtrics International Inc: The company’s shares rose on Tuesday after it forecast full-year 2021 sales and losses that beat analyst expectations as more companies rely on its software to gather and use feedback from their customers. Qualtrics forecast a full-year sales range with a midpoint of $1 billion and adjusted losses with a midpoint of 1 cent per share, compared with analyst estimates of $983.8 million in shares and an adjusted loss of 11 cents per share, according to data from Refinitiv. Qualtrics said it expects third-quarter revenue and adjusted losses to have midpoints of $258 million and 2 cents per share, compared with analyst estimates of $246.6 million and 5 cent per share adjusted loss, according to Refinitiv data. For the just-ended second quarter, sales and adjusted profits were $249.3 million and 4 cents per share, compared with Refinitiv estimates of $241.63 and a 2 cent per share adjusted loss.

• SAP SE: Shares in the company fell, with investors disappointed that the German business software group's revenue and profit outlook had not been lifted further. SAP said it expected cloud revenue to grow by 15%-18% in the year, helping overall cloud and software revenue gain by 2%-3%. Operating profit was forecast in a range from unchanged to 4% lower for 2021. Adjusted revenue, up 3% at constant currency to 6.67 billion euros in the quarter, was in line with median estimates of analysts compiled by Refinitiv. Operating profit, up 3% at 1.92 billion euros, was ahead of the median view. Adjusted earnings per share rose 50% to 1.75 euros, with Chief Financial Officer Luka Mucic highlighting SAP's profitable venture capital investments. SAP lifted its forecast for cloud and software revenue for the full year by 200 million euros to 23.6 billion-24 billion euros, while it now sees operating profit at 7.95 billion-8.25 billion euros - up 150 million euros at the lower boundary.

• United Airlines Holdings Inc: The company reported its sixth consecutive quarterly loss on Tuesday due to the coronavirus pandemic, though revenue quadrupled from a year ago and topped estimates with a strong domestic travel rebound. United said it will continue ramping up flying in the third quarter and forecast its total unit revenue for the period will be higher than the same quarter in 2019, a turning point for the airline. The company said business and long-haul international travel, to which it is more exposed than rivals, accelerated faster than anticipated, and it expects a full recovery in demand by 2023. United's adjusted net loss narrowed to $1.26 billion, or $3.91 per share, in the quarter, from $2.6 billion, or $9.31 per share, a year ago. Analysts had estimated a loss of $3.94, according to IBES data from Refinitiv.

In Other News
• Apple Inc: The company will release from next year only 5G-enabled iPhones and will revamp its budget handset after for the first time in two years, Nikkei reported, citing sources familiar with the matter. It will start selling a 5G version of iPhone SE in the first half of 2022, the report said, adding that the budget iPhone will be powered by its A15 processor and its 5G connectivity will be enabled by Qualcomm’s X60 modem chip. Apple will not introduce an updated version of its iPhone Mini next year, after it failed to become popular among consumers, the report said.

• AmerisourceBergen Corp, Cardinal Health Inc, Johnson & Johnson and McKesson Corp: With a $26 billion nationwide settlement in sight over claims that the three largest U.S. drug distributors and Johnson & Johnson helped fuel a nationwide opioid epidemic, state and local governments will soon turn their attention to pharmacies and a handful of drugmakers. U.S. state attorneys general are expected to unveil a settlement proposal this week with distributors McKesson, Cardinal Health and AmerisourceBergen contributing a combined $21 billion, while Johnson & Johnson would pay $5 billion. The ultimate settlement price-tag could fluctuate depending on how many state and local governments agree to the deal or reject it to pursue litigation on their own.

• JPMorgan Chase & Co: The company said on Tuesday it has awarded Chief Executive Officer Jamie Dimon 1.5 million options in the form of stock appreciation rights. "This special award reflects the board's desire for Mr. Dimon to continue to lead the firm for a further significant number of years," the bank's board said in a filing. The board considered what it called "the importance of Mr. Dimon's continuing, long-term stewardship" when approving the reward, which is structured in a way intended to encourage continued good performance.

• Tesla Inc: The company plans to open its network of superchargers to other electric vehicles later this year, Chief Executive Officer Elon Musk said on Twitter. "We're making our Supercharger network open to other EVs later this year," Musk said on Tuesday, adding that over time Tesla's charging network will be opened to other electric vehicles in all countries.


ANALYSIS
Biogen Alzheimer's drug slow to take off as U.S. Medicare wrestles with coverage
U.S. hospitals that were expected to be early adopters of Biogen’s Alzheimer’s drug have treated only a handful of patients since its early June approval as they wait for the first payments from the government’s Medicare program for people aged 65 and older.


ANALYSTS' RECOMMENDATION
• Chipotle Mexican Grill Inc: Credit Suisse raises target price to $2,075 from $1,950, after the company reported a strong second quarter.

• Qualtrics International Inc: Barclays raises price target to $43 from $41, saying second-quarter results were strong across the board with billings, large customer, and bookings growth numbers all accelerating.


ECONOMIC EVENTS
No economic indicators are scheduled for release.


COMPANIES REPORTING RESULTS
Crown Castle International Corp: Expected Q2 earnings of 69 cents per share
CSX Corp: Expected Q2 earnings of 37 cents per share
Discover Financial Services: Expected Q2 earnings of $3.97 per share
Equifax Inc: Expected Q2 earnings of $1.71 per share
Globe Life Inc: Expected Q2 earnings of $1.82 per share
Interpublic Group of Companies Inc: Expected Q2 earnings of 42 cents per share
Kinder Morgan Inc: Expected Q2 earnings of 19 cents per share
Las Vegas Sands Corp: Expected Q2 loss of 16 cents per share
M&T Bank Corp: Expected Q2 earnings of $3.62 per share
Marketaxess Holdings Inc: Expected Q2 earnings of $1.69 per share
Texas Instruments Inc: Expected Q2 earnings of $1.83 per share
Whirlpool Corp: Expected Q2 earnings of $5.90 per share


CORPORATE EVENTS (All timings in U.S. Eastern Time)
0800 Comerica Inc: Q2 earnings conference call
0800 Credit Acceptance Corp: Annual Shareholders Meeting
0800 Nasdaq Inc: Q2 earnings conference call
0800 Rexnord Corp: Q2 earnings conference call
0830 Anthem Inc: Q2 earnings conference call
0830 Baker Hughes Co: Q2 earnings conference call
0830 Coca-Cola Co: Q2 earnings conference call
0830 Interpublic Group of Companies Inc: Q2 earnings conference call
0830 Johnson & Johnson: Q2 earnings conference call
0830 Verizon Communications Inc: Q2 earnings conference call
0900 Harley-Davidson Inc: Q2 earnings conference call
0900 Seagate Technology Holdings PLC: Q4 earnings conference call
0930 Pinnacle Financial Partners Inc: Q2 earnings conference call
1000 Avangrid Inc: Q2 earnings conference call
1000 BOK Financial Corp: Q2 earnings conference call
1000 Lithia Motors Inc: Q2 earnings conference call
1000 Marketaxess Holdings Inc: Q2 earnings conference call
1030 United Airlines Holdings Inc: Q2 earnings conference call
1100 M&T Bank Corp: Q2 earnings conference call
1130 Middleby Corp: Shareholders Meeting
1500 Petco Health and Wellness Company Inc: Annual Shareholders Meeting
1630 CSX Corp: Q2 earnings conference call
1630 Kinder Morgan Inc: Q2 earnings conference call
1630 Las Vegas Sands Corp: Q2 earnings conference call
1630 SEI Investments Co: Q2 earnings conference call
1630 Texas Instruments Inc: Q2 earnings conference call


EX-DIVIDENDS
APA Corp (US): Amount $0.02