Weekly Equity Market Outlook - September 13 - 17 TBC Capital Brokerage
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Weekly Equity Market
Outlook
September 13 - 17
TBC Capital Brokerage
/
Executive Summary
Is Financial Crisis in China Imminent? Commodities Investment Themes
USA & China Trade Distribution
93.20 ▲ 0.56% • Hikes in Natural Gas, Coal and Aluminum are continuing to reach
USD Index Weekly change
record highs.
• Evergrande lost 85% of its market capitalization from the
71.97 ▲ 2.16% beginning of the year due to insolvency issues. This could cause
Crude Oil Weekly change
serious problems for real estate market.
• Corporate tax hike appears to be one of the major risks for the
47.03K ▲ 4.17% equity valuations.
• Many theorize that it will commence by cutting back bond buying
Bitcoin Weekly change
programs at the end of 2021 and hiking interest rates as early as at
1.75K ▼ -2.40% the end of 2022
Gold Weekly change
2000 2005 2010 2015 2020
Rebounds in Industrials and Retail S&P 500 Performance YTD Weekly Sector Performance
Retail Sales M-o-M 22.89% Sector ◯ Change
Total
0.70%
Nonstore 5.30%
20% Energy ▲ 3.20%
Furnitire 3.70% 18.52% 19.69%
General Merch.
Food & Beverage
3.50% Consumer Discretionary ▲ 0.66%
1.80%
Miscellaneous
Building Material
1.40%
15.31% Financials ㅡ 0.00%
0.90% 15%
Gasoline
Health & Personal
0.20%
0.20% 13.14% Real Estate ㅡ 0.00%
Clothing
Restaurants
0.10%
0.00%
12.51% Health Care ▼ -0.14%
Sporting Goods -2.70%
Electronics -3.10%
10% Consumer Staples ▼ -0.72%
Autos -3.60% 7.72%
Information Technology ▼ -0.73%
6.47%
• The two key reports that shaped last week’s economic sentiments Industrials ▼ -1.60%
5%
5.08%
were the above-average retail sales and Industrial Production. Communication Services ▼ -2.24%
• The man reason for an increase in retail sales is back to school 2.14% Utilities ▼ -2.99%
spending as more and more schools and colleges are opening up. 0% 0.69% 0.35%
Feb 20… Mar 2… Apr 20… May 2… Jun 20… Jul 2021 Aug 2… Sep 20… Materials ▼ -3.19%
/
Macro Insights
Rebounds in Industrials and Retail
Retail Sales M-o-M
• The two main reports that shaped last week’s economic sentiments were the above-average retail sales and Industrial
Total 0.70%
Production.
Nonstore 5.30%
Furnitire 3.70% • According to U.S. department of Commerce, retail sales increased by 0.7% M-o-M instead of a decline in the same
General Merch. 3.50% amount, and the retail sales excluding autos came at 1.8%.
Food & Beverage 1.80%
Miscellaneous 1.40% • Such an increase is contradictory with the general sentiment in the country, where many are concerned about the spread
Building Material 0.90% of the delta variant and its contribution towards slowing down the economy.
Gasoline 0.20%
• The man reason for an increase in retail sales is back to school spending as more and more schools and colleges are
Health & Personal 0.20%
Clothing
opening up to in-person education; among retail – clothing store sales posted the largest increase of 38.8% Y-o-Y.
0.10%
Restaurants 0.00% • Similarly, the report on industrial production indicated that it grew by 0.4% in August. The value was significantly
Sporting Goods -2.70% negatively affected by hurricane Ida, however, it still surpassed the estimates and sits above the pre-pandemic levels.
Electronics -3.10%
Autos -3.60%
The Economy Shows Signs of Cooling Down
CPI and Core CPI M-o-M
• On the other hand, the initial jobless claims rose to 322,000 which, though lower than the numbers that were reported for 1.00%
most other months since the start of the pandemic, was above the economists’ expectations.
• CPI also posted an unexpected result as the Core CPI increased by lower-than-expected 0.1% M-o-M instead for the
forecasted 0.3%. 0.50%
• These reports are always closely observed, but the latest ones hold particular importance as they will be taken into
consideration by the Fed at the meeting scheduled on September 21-22.
0.00%
• Some economists consider that due to a disappointing nonfarm payroll number, a slight increase in initial public claims,
and insignificant CPI increase – the FOMC might consider that the delta variant is already cooling down the economy
significantly and a further tapering might not be necessary yet. Such a position is further complemented by the recent
-0.50%
downgrades of expected economic activity by banks such as Goldman Sachs.
• Therefore, Fed will have to be especially careful not to cause a panic in the markets and over-cool the economy through
Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 Jul 2021
contractionary policies. CPI Core CPI
/Commodities and FX
USD Index Bitcoin (BTC)
• The U.S. Dollar Index had a successful • The cryptocurrency giant hovered
▲ 0.56% 93.20 week as it passed the hurdle of 93 and ▲ 4.17% 47.03K around the $47,000 level before dropping
USD Index Weekly change Last Price Bitcoing Weekly change
increased from 92.58 to 93.34 Last Price
to just above $45,000 on Sunday.
52K
93.5 • Some reasons for the increase are the • The famous meme stock announced that
fact that yields increased and investors it will accept payments through Bitcoin,
are waiting for Fed to announce tapering 50K Ethereum, Litecoin in attempts to make
93.0
at their next meeting. The 52 week high cryptocurrency more flexible and
for the index was observed almost a year applicable for day-to-day use. The price
ago at 94.74. 48K
keeps posting modest increases each time
• Under such high uncertainty and companies announce news like that.
92.5
hawkish FOMC sentiments, the dollar 46K
• Protests in El Salvador are continuing as
index might increase further as equities complaints have been made about
markets are tumbling. government’s purchases of the
92.0
Aug 22 Aug 29 Sep 05 Sep 12
44K
Aug 22 Aug 29 Sep 05 Sep 12
cryptocurrency and its implementation.
Crude Oil WTI Gold
• Oil was affected by several contrasting • Like many other precious metal prices,
▲ 2.16% 71.97 events last week, which caused it to ▼ -2.40% 1.75K the price of gold is heavily reliant on
Crude Oil Weekly change Last Price Gold Weekly change Last Price
fluctuate between $70.45 per barrel and expectations of future economic policies,
1,840
72
$72.61. and since Fed’s meeting is scheduled on
• A higher-than-expected decrease in September 21-22 (with many investors
70 inventories indicated that the demand 1,820
expecting an announcement of tapering)
for Oil has increased and was bullish for it has negatively affected the commodity.
68 the commodity. OPEC also announced 1,800 • By the end of last week gold fell to
that the demand is expected to exceed $1751.4 per ounce – hitting a month low.
66 pre-pandemic levels next year. 1,780 • The precious metal will fall further if Fed
• On the other hand, the prices were announces tapering as it will cause hikes
64
negatively affected by a firmer dollar that in the U.S. Dollar index and make the
1,760
put a downward pressure on the precious metal more expensive to
62
Aug 22 Aug 29 Sep 05 Sep 12 commodity and partially offset the hike. Aug 22 Aug 29 Sep 05 Sep 12 foreigners.
/Chart of The Week
Is Financial Crisis in China Imminent? Will it Spread Around The World?
Trade With USA and China 2000 Trade With USA and China 2020 USA & China Trade Distribution
©
© 2021
2021 TomTom,
TomTom, ©
© 2021
2021 Microsoft
Microsoft Corporation
Corporation ©
© 2021
2021 TomTom,
TomTom, ©
© 2021
2021 Microsoft
Microsoft Corporation
Corporation
2000 2005 2010 2015 2020
It has been a tough week for Chinese Securities Market. Evergrande, Chinese real estate company, with almost 300 million in debt is failing. Company is out of cash and
is expected to default on its Bank loans on Monday and its bonds on Thursday. Share price of Evergrande decreased more than 85% from its all-time high, causing
major Asian Indexes to fall, such as Heng Seng Index is down 6% over the week. Failure of the Evergrande might spread over other Chinese companies probably causing
the financial crisis in China. Chinese securities analysts are expecting that banks will be affected as well. China is the second largest economy in the world and more
than 75% of world does trade with China. Possible financial crisis might have contagion effect to other markets because of its size and importance in world economy.
Critically enough, major US Equity index, S&P 500, which was in bullish trend and was trading above 50 day Exponential moving average more than 6 month, on Friday
broke down its trend and now is trading below 50 day moving average. Possible corporate tax rate hike and interest rate hike by the end of the year, combined with
probable financial crisis in China, might cause decrease in global equity prices.
/Investment Themes
Co-dependence Among Commodities Fosters Instability China Evergrande as a Systematic Risk for Economy
Natural Gas, Coal and Aluminum Performance • Commodities have had a turbulent several months as gold and Evergrande Group Price • China Evergrande Group was the biggest real estate developer
other precious metals have suffered repeatedly due to fears of and property service provider in china. The company lost 85% of
250%
interest rate hikes and tapering, while others such as coal – its market capitalization from the beginning of the year.
increased exponentially in recent months. 15 Evergrande has been struggling to raise funds to pay its many
• The case of falling precious metal prices is logical as such lenders, suppliers and investors. Company is due to pay $84m
200% commodities typically under-perform in a rising interest rates and $48m on 23 and 29 September respectively. Both bonds
environment; however, it is important to analyze the hikes in would default within 30 days of the scheduled payment dates if
Coal, Aluminum, and Gas. 10
company fails to pay.
150% • For example, the increasingly high temperatures this summer, • Evergrande grew to be one of China's biggest companies by
increased electricity consumption, which increased demand for borrowing more than $300bn. The company accounts for almost
coal and hydro-power, supply of which was limited due to HSE 16% of China's outsdanding corporate junk bonds. Investors
100%
regulations and droughts, (respectively). The strain on electricity became worried about debt crisis in china and Hong Kong’s
5
supply also limited aluminum production and smelting. broader stock market lower as contagion fears spread.
• As the global emphasis on clean and renewable energy • "The financial fallout would be far reaching. Evergrande
50%
sources is increasing, it is important to make sure that they are reportedly owes money to around 171 domestic banks and 121
2017 2018 2019 2020 2021 not codependent and a supply shortage for one will not weigh Feb Mar Apr May Jun Jul Aug Sep other financial firms," the Economist Intelligence Unit's (EIU)
Aluminium coal Natural Gas
considerably on others. 2021 2021 2021 2021 2021 2021 2021 2021 Mattie Bekink told the BBC.
Corporate Tax Rate Hike: Way to Fund A Deficit Investors Awaiting FOMC
US Effective Tax Rate By Periods • Corporate tax hike appears to be one of the major risks for the Fed Total Assets and Funds Rate • Investors worldwide have been speculating the start date of
40% equity valuations. This week House Democrats outlined tax tapering, many theorizing that it will commence by cutting back
increases they aim to use to offset up to $3.5 trillion in spending 8M 5 bond buying programs at the end of 2021 and hiking interest
38% on the social safety net and climate policy. The tax plans could rates as early as at the end of 2022.
change as Democrats try to craft and pass a final bill next week. 4
• Fed was waiting for the economy to demonstrate substantial
36% • Among the many components of the Biden tax plan are an 6M progress, and though many indicators have recovered
increase in the domestic corporate tax rate to 28% from 21% and significantly since pandemic-lows, there are still contradictory
34% the top individual income tax rate to 39.6% from 37%. The White 3 reports that indicate that the economy is slowing down due to the
House also wants to raise the capital gains tax rate on those 4M surge in delta cases.
32% making more than $1 million a year from its current 20% to 2
• Therefore, investors are awaiting Fed’s meeting scheduled on
39.6%. September 21-22 when many expect that the central bank will
30% • “Such tax increases would make the United States 2M
announce its tapering plans. According to Goldman Sachs, there is
uncompetitive as a place to do business and make U.S. 1 a 70% chance for tapering to commence in Q4, 2021.
28% companies uncompetitive globally,” said Joshua Bolten, chief • Investors will pay attention to not only tapering, but also (more
executive of the Business Roundtable, which represents about importantly) indicators of interest rate hikes. Ahead of the
0M 0
200 large U.S. companies, when the measures were first 2005 2010 2015 2020 meeting, equities markets and commodities tumbled as
26%
2000 2005 2010 2015 2020 announced on March 31. Fed Total Assets Fed Funds Rate, Percent uncertainty increased significantly and volatility soared.
/Sector Snapshot
13.34 -0.73% 35.80 27.20 STOCKS TO WATCH TICKER MARKET CAP CLOSE CHANGE P/E EV/EBITDA
Information Technology Market Cap (Trillions) Weekly Change P/E EV/EBITDA
Apple Inc AAPL 2,414bn 146.06 -2.33% 26.01 19.69
Sector Comparison to S&P 500 Performance • Apple (AAPL) had its first fall event on Tuesday, iPhone 13 lineup and the Watch Microsoft Corp MSFT 2,253bn 299.87 0.97% 29.72 20.33
25%
Series 7 were published. The device specs matched previous reports and leaks, Taiwan Semiconductor-Sp Adr TSM 611bn 117.75 -4.75% 15.82 12.36
though this lack of surprise combined with the off-year cycle could be driving the Alibaba Group Holding-Sp BABA 435bn 160.05 -3.24% 14.25 9.77
20% share pressure. Skyworks Solutions (SWKS) whose tech helps power the iPhone's Adr
Sea Ltd-Adr SE 187bn 339.81 5.18% 244.70
wireless communications, Modem supplier Qualcomm (QCOM), display glass
Qualcomm Inc QCOM 151bn 133.60 -6.84% 14.50 10.63
15% supplier Corning (GLW), Memory provider Micron (MU) and a contract
Jd.Com Inc-Adr JD 121bn 77.69 -3.09% 37.84 25.35
manufacturer for the Watch Jabil (JBL) all suppliers share prices are under pressure.
Micron Technology Inc MU 84bn 74.30 -0.07% 6.47 3.88
• Microsoft (MSFT) board approves new share buyback of up to $60B in shares;
10% Didi Global Inc DIDI 40bn 8.30 -4.27%
raises quarterly dividend 11% to 62 cent per share. Sea (SE) upgraded to Buy from Corning Inc GLW 33bn 38.39 -1.44% 15.96 8.94
Hold at Stifel and raise Target price to $400 from $325, saying with attractive Perrigo Co Plc PRGO 6bn 43.94 -2.27% 15.42 12.60
5% gaming margins, Sea is well positioned to invest in its burgeoning eCommerce and
ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
financial services segments.
0% • U.S. listed China names fall again Alibaba (BABA), JD.com (JD), DiDi Global (DIDI) Invesco QQQ Trust QQQ 193bn 373.83 -0.73% 20.86% 0.20%
with more goverment regulation impact as China will accelerate the drafting and Vanguard IT ETF VGT 51bn 418.87 -0.45% 20.40% 0.10%
implementation of laws to prevent online crimes, rules for online information Technology Select SPDR XLK 45bn 155.48 -0.73% 21.56% 0.12%
-5%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Fidelity IT FTEC 6bn 123.48 -0.65% 20.07% 0.08%
management and the protection of minors on the internet, Xinhua reported.
Information Technology S&P 500 SPDR Semiconductor XSD 1bn 205.61 0.79% 21.10% 0.35%
6.46 -0.14% 25.40 20.10 STOCKS TO WATCH TICKER MARKET CAP CLOSE CHANGE P/E EV/EBITDA
Health Care Market Cap (Trillions) Weekly Change P/E EV/EBITDA
Pfizer Inc PFE
246bn 43.89 -1.55% 12.09 10.34
Sector Comparison to S&P 500 Performance • The FDA advisory panel endorsed emergency approval for the Pfizer (PFE) Thermo Fisher Scientific Inc TMO 235bn 596.80 6.74% 29.59 23.25
25% Eli Lilly & Co LLY 220bn 230.10 -3.30% 26.71 24.12
/BioNTech (BNTX) Covid-19 vaccine booster shots for those aged 65 and over or at
Moderna Inc MRNA 174bn 430.05 2.46% 16.33 11.70
high risk for severe disease
20% Biontech Se-Adr BNTX 87bn 359.18 9.79% 7.87 5.81
• BeiGene Ltd (BGNE) surged amid FDA approval of BRUKINSA (Zanubrutinib) in
Regeneron Pharmaceuticals REGN 70bn 651.88 1.93% 14.28 9.65
relapsed or refractory marginal zone lymphoma
Beigene Ltd-Adr BGNE 38bn 403.14 10.68%
15% • The FDA authorized Eli Lilly‘s (LLY) Covid-19 antibody cocktail for use as a Curevac Nv CVAC 10bn 55.11 -16.56% 6.95 3.11
prophylaxis in people who have been exposed to the virus, giving a boost to the Abcellera Biologics Inc ABCL 6bn 20.36 14.83%
10% beleaguered shares of AbCellera Biologics (ABCL), one of Lilly’s partners on the Protagonist Therapeutics Inc PTGX 1bn 17.53 -61.38%
development of Balmanivimab, one of the two antibodies in the cocktail Innate Pharma Sa-Spons Adr IPHA 1bn 8.10 43.36%
5% • Regeneron Pharmaceuticals (REGN) rises after being awarded a $2.94B
ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
modification to a contract for 1.4M REGEN-COV antibody therapeutic doses by
Health Care Select SPDR XLV 33bn 133.00 -0.14% 17.75% 0.12%
0%
Department of Defense (DOD)
Vanguard Healthcare VHT 17bn 258.79 -0.07% 16.27% 0.10%
• Thermo Fisher Scientific (TMO) rallied to a new high after presenting optimistic
iShares Biotechnology IBB 11bn 173.61 0.22% 15.36% 0.47%
forecast for fiscal 2022 as demand booms amid the pandemic
-5% ARK Genomic Revolution ARKG 8bn 83.93 0.23% -9.89% 0.75%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021
• Protagonist Therapeutics (PTGX) plunged more than 60% after FDA put a clinical
SPDR S&P Biotech XBI 7bn 132.88 0.88% -5.73% 0.35%
Health Care S&P 500 hold on Rusfertide studies
/Sector Snapshot
Consumer Discretionary 6.34
Market Cap (Trillions)
0.66%
Weekly Change
42.00
P/E
24.60
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Amazon.Com Inc AMZN 1,754bn 3,462.52 0.15% 42.10 19.85
Sector Comparison to S&P 500 Performance
• Wedbush Securities stays positive on Tesla (TSLA) despite the near-term chip Tesla Inc TSLA 761bn 759.49 2.22% 105.68 54.77
Mcdonald'S Corp MCD 181bn 242.49 0.53% 24.59 18.08
20% shortage issues impacting the supply chain. Analyst Dan Ives thinks Tesla can get
Philip Morris International PM 159bn 101.86 -0.71% 15.23 11.82
close to 900 K deliveries this year with a strong second half and track toward 1.3 M
Altria Group Inc MO 90bn 48.61 -2.94% 10.06 9.23
in 2022.
10% • JPMorgan Chase (JPM) goes live with credit card payments processing for ETFs TO WATCH TICKER TOTAL ASSETS CLOSE
CHANGE YTD Expense
Alibaba.com, the B2B unit of Alibaba Group (BABA). Working with Alipay, the Consumer Disc. Select SPDR XLY 20bn 184.11 0.66% 15.49% 0.12%
0%
fintech platform operated by Ant Group, J.P. Morgan Merchant Services, now Vanguard Consumer Disc. VCR 7bn 320.44 0.67% 17.96% 0.10%
powers payments made by U.S. credit cards on Alibaba.com. First Trust Consumer Disc. FXD 2bn 61.31 1.05% 22.72% 0.63%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 • Beyond Meat (BYND) will be supplying McDonald's (MCD) in 245 restaurants in Fidelity Consumer Disc. FDIS 2bn 82.73 0.62% 17.10% 0.08%
Consumer Discretionary S&P 500 Netherlands. Also Sweden, Denmark and Austria in future with pea-protein meat. SDPR S&P Retail XRT 1bn 94.38 1.65% 48.54% 0.35%
5.71 -2.24% 27.80 20.40
Communication Services Market Cap (Trillions) Weekly Change P/E EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP
CLOSE CHANGE P/E EV/EBITDA
Alphabet Inc-Cl C GOOG 1,882bn 2,829.27 -1.40% 22.55 15.27
Sector Comparison to S&P 500 Performance
• Dish Network (DISH) selected IBM’s artificial intelligence-powered automation Walt Disney Co/The DIS 333bn 183.47 -0.82% 37.12 22.00
and network orchestration software and services for its cloud-native 5G network. Netflix Inc NFLX 261bn 589.35 0.01% 45.33 32.58
20% Dish Network Corp-A DISH 22bn 42.48 -4.02% 13.93 9.77
• Live Nation Entertainment (LYV) agreed to proceed with its previously announced
Live Nation Entertainment In LYV 19bn 86.83 -2.56% 108.81 19.69
acquisition of a 51% controlling interest in OCESA Entretenimiento, a leading
promoter in Latin America and owner of Ticketmaster Mexico from CIE, a ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
10%
prominent player in the live entertainment industry in Latin America. Com.Services Select SPDR XLC 16bn 83.14 -1.33% 25.06% 0.12%
• The Walt Disney Company (DIS) Shang-Chi and the Legend of the Ten Rings Vanguard Com.Services VOX 5bn 146.59 -1.01% 23.85% 0.10%
0%
grossed $35.8M in its second-weekend follow-up, bringing its cumulative domestic First Trust Indxx ETF NXTG 1bn 79.03 -0.19% 14.16% 0.70%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021
box office to $145.6M. Fidelity Com.Services FCOM 1bn 55.41 -1.34% 23.54% 0.08%
Communication Services S&P 500 Ishares Global Com.Services IXP 0bn 87.44 -1.75% 18.77% 0.46%
5.73 0.00% 17.10 6.20
Financials Market Cap (Trillions) Weekly Change P/E EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Jpmorgan Chase & Co JPM 471bn 157.68 -1.36% 13.37
Sector Comparison to S&P 500 Performance
40%
• JPMorgan Chase (JPM) hires two executives from Charles Schwab's TD Paypal Holdings Inc PYPL 325bn 276.34 -1.48% 46.81 34.30
Ameriatrade and Goldman Sachs to boost its online investing business that lagged Wells Fargo & Co WFC 191bn 46.47 1.55% 12.96
due to rise of online brokerage firms like Robinhood markets (HOOD). Goldman Sachs Group Inc GS 138bn 391.46 -4.35% 10.53 12.95
Greensky Inc-Class A GSKY 2bn 11.62 31.30% 19.37 10.94
20% • GreenSky (GSKY) shares shoot up 50% after online lender agrees to be acquired
ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
by Goldman Sachs (GS) for $2.24B. The exchange ratio will be 0.03 shares of GS
per GSKY share, its approximately $12 per share. Financial Select SPDR XLF 40bn 37.58 0.00% 29.23% 0.12%
0% • Wells Fargo (WFC) selects Microsoft (MSFT) Azure and Google (GOOG) as part of Vanguard Financials VFH 11bn 92.84 0.15% 29.29% 0.10%
its digital infrastructure strategy that combines a multi-cloud approach with third- iShares Global Financials IXG 3bn 78.51 -0.41% 21.70% 0.46%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021
party data centers to improve "technological speed, agility, and scalability" for its SPDR S&P Bank KBE 3bn 50.52 0.20% 22.00% 0.35%
Financials S&P 500 customers and employees. SPDR S&P Insurance KIE 0bn 38.16 -0.96% 16.70% 0.35%
/Sector Snapshot
Industrials 7.56
Market Cap (Trillions)
-1.60%
Weekly Change
26.10
P/E
15.80
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Quanta Services Inc PWR 16bn 118.42 2.83% 21.40 12.67
Sector Comparison to S&P 500 Performance
• MasTec Inc. (MTZ) and Quanta Services Inc. (PWR) soared after Goldman Sachs Rocket Lab Usa Inc RKLB 7bn 15.41 0.06%
Mastec Inc MTZ 7bn 89.61 -1.14% 15.09 8.58
20% initiated both with buys, favoring their exposure to long-term secular growth
Avis Budget Group Inc CAR 6bn 95.32 5.56% 12.80 23.53
trends within modernization of America’s aging utility infrastructure, transition to
Lion Electric Co/The LEV 2bn 13.09 12.36% 138.11
renewable power generation, and evolution of 5G infrastructure
10% • Avis Budget Group (CAR) soared after Bank of America upped its rating to Buy, ETFs TO WATCH TICKER TOTAL ASSETS CLOSE
CHANGE YTD Expense
saying it expects many of the macro factors driving "over-earning" by the car rental The Industrial Select SPDR XLI 17bn 100.33 -1.60% 16.11% 0.12%
0%
company in 2021 will likely persist well into 2022 Vanguard Industrials VIS 5bn 191.91 -1.36% 15.51% 0.10%
• Rocket Lab USA (RKLB) declined after Barron’s warned about high valuation and U.S. Global Jets JETS 3bn 22.75 2.39% 5.37% 0.60%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 issued a sell recommendation. The stock reached its all-time high, gaining more ishares Transportation IYT 1bn 245.91 -0.83% 13.83% 0.42%
Idustrials S&P 500 than 100% in the previous week. Fidelity Industrials FIDU 1bn 52.86 -1.82% 15.24% 0.08%
2.86 -0.72% 23.70 16.50
Consumer Staples Market Cap (Trillions) Weekly Change P/E EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Procter & Gamble Co/The PG 351bn 144.34 -0.92% 22.73 16.33
Sector Comparison to S&P 500 Performance
• PepsiCo (PEP) and Beyond Meat's (BYND) joint venture titled The PLANeT Pepsico Inc PEP 213bn 154.13 -1.05% 23.01 16.01
20% Partnership is aiming to release its products made from plant-based proteins in Colgate-Palmolive Co CL 64bn 76.23 -1.49% 22.15 15.00
early 2022. General Mills Inc GIS 36bn 58.92 0.49% 15.20 12.83
Beyond Meat Inc BYND 7bn 112.95 0.01% 310.11
10% • Colgate-Palmolive (CL) declares $0.45/share quarterly dividend, in line with
previous. Dividend yield totaling 2.34%. ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
0%
• Credit Suisse (CS) lowers General Mills (GIS) to a Neutral rating after having it Consumer Staples SPDR XLP 13bn 71.36 -0.72% 6.95% 0.12%
slotted at Outperform due to high margin risk, high inflation environment and Vanguard Consumer Stap. VDC 6bn 185.21 -0.56% 7.57% 0.10%
-10%
global supply chain problems. Fidelity Consumer Stap. FSTA 1bn 42.99 -1.22% 6.83% 0.08%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Ishares Consumer Stap. KXI 1bn 61.55 -0.92% 5.99% 0.46%
Consumer Staples S&P 500 First Trust Consumer Stap. FXG 0bn 57.03 0.16% 10.86% 0.63%
1.66 0.00% 10.90 24.20
Real Estate Market Cap (Trillions) Weekly Change P/E EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
American Tower Corp AMT 134bn 293.75 -0.29% 53.40 28.01
Sector Comparison to S&P 500 Performance • Homebuilders D R Horton (DHI), MDC Holdings (MDC) , Meritage Homes (MTH) Dr Horton Inc DHI 33bn 90.80 2.02% 6.99 5.60
40%
still look like relative bargains according to Barron’s saying when it comes to Zillow Group Inc - A ZG 24bn 96.14 1.57% 73.90 33.78
builders book value may no longer be the only metric to look at. Meritage Homes Corp MTH 4bn 105.60 1.05% 4.83 3.89
20%
• Wells Fargo said its Proprietary August Real Estate Agents’ Survey indicated a Mdc Holdings Inc MDC 4bn 51.55 2.16% 5.37 4.60
moderation in housing momentum and believe Q3 numbers will need to be ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
trimmed. Vanguard Real Estate VNQ 44bn 106.40 0.00% 29.49% 0.12%
0% • Zillow (ZG) Target price cut from $184 to $145 at BTIG but maintain Buy noting it iShares U.S. Real Estate IYR 8bn 106.79 -0.24% 29.07% 0.42%
has been among the worst performers in coverage universe YTD. Schwab US REIT SCHH 6bn 47.76 -0.04% 30.10% 0.07%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Real Estate Select SPDR XLRE 4bn 46.85 0.00% 32.42% 0.12%
Real Estate S&P 500 iShares REIT ETF REZ 1bn 88.13 -1.50% 34.88% 0.48%
/Sector Snapshot
Energy 1.43
Market Cap (Trillions)
3.20%
Weekly Change
14.70
P/E
7.60
EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Conocophillips COP 79bn 58.92 2.31% 11.83 4.74
Sector Comparison to S&P 500 Performance
• Diamondback Energy (FANG) announced 2 million USD share buyback program. Canadian Natural Resources CNQ 40bn 33.34 -3.89% 8.37 4.70
Occidental Petroleum Corp OXY 25bn 26.94 1.09% 22.56 5.56
Along with the boost from high oil prices, announcement caused share price to
40% Cheniere Energy Inc LNG 22bn 86.93 -4.29% 12.56 10.18
increase by 6% for the week
Diamondback Energy Inc FANG 15bn 82.62 6.20% 6.06 4.73
• According to JP Morgan, American Integrated oil companies are undervalued and
they will start distributing cash to shareholders in 2022. Bank is overweight on ETFs TO WATCH TICKER TOTAL ASSETS CLOSE
CHANGE YTD Expense
20%
CNQ, CVE, RDS and XOM Energy Select SPDR XLE 23bn 49.32 3.20% 29.93% 0.12%
• Wells Fargo upgraded Cheniere Energy (LNG) from buy to overweight and Vanguard Energy VDE 5bn 69.64 3.31% 33.59% 0.10%
increased price target from 95$ to 112$ SPDR Oil & Gas Exploration XOP 3bn 87.95 5.12% 48.99% 0.35%
0%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 iShares U.S. Energy IYE 2bn 26.81 3.19% 32.13% 0.42%
Energy S&P 500 iShares Global Energy IXC 1bn 25.07 2.66% 22.95% 0.46%
1.14 -3.19% 19.70 12.20
Materials Market Cap (Trillions) Weekly Change P/E EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Alcoa Corp AA 9bn 48.83 -0.79% 9.62 4.28
Sector Comparison to S&P 500 Performance
• Shares of Tronox holdings (TROX), chemical product producer, surged after the Cameco Corp CCJ 9bn 22.46 -8.18% 253.25 31.85
20%
announcement that private equity firm Apollo plans to buy TROX ay 27 USD per United States Steel Corp X 6bn 23.36 -7.96% 3.31 2.94
share. Share price increased by 20% Tronox Holdings Plc- A TROX 4bn 24.52 7.50% 9.89 6.37
Denison Mines Corp DNN 1bn 1.61 -1.23%
• Shares of Uranium Producers (CCJ, DNN) had weak week, after MS announced
10%
that their surge is not sustainable into next year ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
• Price target of Alcoa Corporation (AA) was raised to 58 USD and upgraded from VanEck Vectors Gold Miners GDX 13bn 30.58 -2.92% -20.59% 0.52%
0% hold to buy by Argus securities. Materials Select Sector XLB 8bn 81.33 -3.19% 13.43% 0.12%
Vanguard Materials VAW 4bn 177.49 -3.15% 13.93% 0.10%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 SPDR S&P Metals & Mining XME 2bn 42.34 -5.28% 25.82% 0.35%
Materials S&P 500 Global X Silver Miners SIL 1bn 37.46 -4.24% -23.86% 0.65%
1.13 -2.99% 20.70 13.10
Utilities Market Cap (Trillions) Weekly Change P/E EV/EBITDA
STOCKS TO WATCH TICKER MARKET CAP CLOSE
CHANGE P/E EV/EBITDA
Exelon Corp EXC 49bn 49.86 -1.38% 15.31 9.47
Sector Comparison to S&P 500 Performance • Exelon Corporation (EXC) was upgraded from neutral to buy by Mizuho securities. Ameren Corporation AEE 21bn 83.60 -2.89% 20.72 11.56
Price target was raised from 47.50$ to 53$. Mizuho mentions that energy bill of Fuelcell Energy Inc FCEL 2bn 6.55 16.55%
20%
Illinois shall provide 140 million in subsidy Jinkosolar Holding Co-Adr JKS 2bn 48.08 -0.25% 11.81 12.04
• JinkoSolar Holding Company (JKS) price target was cut from 58 to 51 by Roth Ftc Solar Inc FTCI 1bn 9.30 -6.25% 24.28 19.00
10% Capital. Price Cut was initiated after company reported bigger than expected loss ETFs TO WATCH TICKER TOTAL ASSETS CLOSE CHANGE YTD Expense
and reduced forward guidance in terms of revenue Utilities Select Sector XLU 13bn 66.40 -2.99% 8.64% 0.12%
• Fuelcell Energy (FCEL) reported greater than expected EPS (-0.04 vs -0.05), which Vanguard Utilities VPU 5bn 144.62 -2.89% 7.97% 0.10%
0%
was supported by higher gross margin. Stock price increased by 14.5% after the Global X US Infrastructure Dev PAVE 4bn 25.97 -2.18% 24.20% 0.47%
Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 announcement. iShares Global Infrastructure IGF 3bn 45.90 -1.18% 5.78% 0.46%
S&P 500 Utilities
/Week Ahead
Monday Tuesday Wednesday Thursday Friday
Today September 2021 Month Week Day List Today September 2021 Month Week Day List Economic
Today September 2021Calendar
Month Week Day List Today September 2021 Month Week Day List Today September 2021 Month Week Day List
September 20, 2021 Monday September 21, 2021 Tuesday September 22, 2021 Wednesday September 23, 2021 Thursday September 24, 2021 Friday
10:00am - 11:00am Germany DE:PPI 5:30am - 6:30am AU:RBA Meeting Minutes 3:00pm - 4:00pm US:MBA Mortgage Applications 9:00am - 10:00am SG:CPI 12:30am - 1:30am US:Fed Balance Sheet
12:30pm - 1:30pm Hong Kong HK:CPI 8:30am - 9:30am US:FOMC Meeting Begins 6:00pm - 7:00pm EZ:EC Consumer Confidence Flash 10:45am - 11:45am FR:Business Climate Indicator 2:45am - 3:45am NZ:Merchandise Trade
6:00pm - 7:00pm USA US:Housing Market Index 10:00am - 11:00am CH:Merchandise Trade 6:00pm - 7:00pm US:Existing Home Sales 11:15am - 12:15pm FR:PMI Composite Flash 3:30am - 4:30am JP:CPI
7:30pm - 8:30pm USA US:3-Month Bill Auction 10:00am - 11:00am UK:Public Sector Finances 6:30pm - 7:30pm US:EIA Petroleum Status Report 11:30am - 12:30pm CH:SNB Monetary Policy Assessment 4:30am - 5:30am JP:PMI Composite Flash
7:30pm - 8:30pm USA US:6-Month Bill Auction 2:00pm - 3:00pm UK:CBI Industrial Trends 7:30pm - 8:30pm US:2-Yr FRN Note Auction 11:30am - 12:30pm DE:PMI Composite Flash 9:00am - 10:00am SG:Industrial Production
4:30pm - 5:30pm US:Current Account 10:00pm - 11:00pm US:FOMC Announcement 12:00pm - 1:00pm EZ:PMI Composite Flash 12:00pm - 1:00pm DE:Ifo Survey
4:30pm - 5:30pm US:Housing Starts and Permits 12:30pm - 1:30pm UK:PMI Composite Flash 12:00pm - 1:00pm IT:Business and Consumer Confidence
4:55pm - 5:55pm US:Redbook 3:00pm - 4:00pm UK:BoE Announcement & Minutes 2:00pm - 3:00pm UK:CBI Distributive Trades
7:00pm - 8:00pm US:4-Week Bill Announcement 4:30pm - 5:30pm CA:Retail Sales 6:00pm - 7:00pm US:Jerome Powell Speaks
7:00pm - 8:00pm US:8-Week Bill Announcement 4:30pm - 5:30pm US:Chicago Fed National Activity Index 6:00pm - 7:00pm US:New Home Sales
9:00pm - 10:00pm US:20-Yr Bond Auction 4:30pm - 5:30pm US:Jobless Claims 9:00pm - 10:00pm US:Baker Hughes Rig Count
5:45pm - 6:45pm US:PMI Composite Flash
6:00pm - 7:00pm US:Leading Indicators
6:30pm - 7:30pm US:EIA Natural Gas Report
Corporate Actions Calendar
Ticker Type Time Maket Cap Ticker Type Time Maket Cap Ticker Type Time Maket Cap Ticker Type Time Maket Cap Ticker Type Time Maket Cap
LEN Earnings After-Hours 31bn ADBE Earnings After-Hours 317bn SOVO IPO NASDAQ 0bn NKE Earnings After-Hours 249bn KDC IPO NYSE 1bn
CGNT Earnings Pre-Market 2bn FDX Earnings After-Hours 69bn GOTU Earnings Pre-Market 1bn ACN Earnings Pre-Market 217bn CWAN IPO NYSE 1bn
FRSH IPO NASDAQ 1bn AZO Earnings Pre-Market 35bn TOST IPO NYSE 1bn COST Earnings After-Hours 205bn HLTH IPO NASDAQ 0bn
THRN IPO NASDAQ 0bn SFIX Earnings After-Hours 4bn SCS Earnings After-Hours 2bn DRI Earnings Pre-Market 20bn
CBRL Earnings Pre-Market 3bn FUL Earnings After-Hours 3bn TCOM Earnings After-Hours 18bn
INNV Earnings After-Hours 2bn KBH Earnings After-Hours 4bn MTN Earnings After-Hours 12bn
ESMT IPO NYSE 0bn BB Earnings After-Hours 6bn DAVA Earnings Pre-Market 8bn
STER IPO NASDAQ 0bn JEF Earnings Not-Supplied 9bn BRLT IPO NASDAQ 0bn
GIS Earnings Pre-Market 36bn
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/Sources
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/Brokerage Team
Mary Chachanidze, CFA
Tornike Mchedlishvili, CFA
Nina Sandler
Tatia Dzaptashvili
Rati Kalandarishvili
Sandro Tchanturidze
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