"Within our program, there's a tremendous amount of enthusiasm because we're really pushing the envelope every chance we get to try and reach audiences, sources, people who may have information that helps improve our national security," a State Department source told CNN. "It's been edgy for some government agencies, perhaps, but we're going to keep pushing forward in many different ways."
"Something on the Dark Web that allows total anonymity and an initial level of security is probably more appropriate for those folks," a second State Department source said. "So just finding people where they are and reaching them with the technology on which they are most comfortable, I think, is the name of the game for Rewards for Justice."
After Hours Summary: DLO +20%, BBWI +4.1%, SNPS +3.2%, NVDA +2.4% higher on earnings; HOOD -8.4%, RRGB -8.4%, VSCO -7.6%, CSCO -1.2% fall on earningsAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: DLO +20%, BBWI +4.1%, SNPS +3.2%, NVDA +2.4%
Companies trading higher in after hours in reaction to news: LQDA +8.9% (FDA completes on-site Pre-Approval Inspection of NC facility), PRTK +4% (FDA grants Orphan Drug designation to NUZYRA), FHI +1.8% (to acquire remaining interest in Hermes Investment for $161.5 mln), WGO +1.7% (increases dividend; to move HQ), WDAY +1.5% (acheives Ready status for FedRAMP at Moderate impact level), CFMS +1.4% (announces first procedure using knee replacement system), MNR +1% (STWD raises offer to acquire MNR to $19.20/sh)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: HOOD -8.4%, RRGB -8.4%, VSCO -7.6%, CSCO -1.2% (on call, says it expects supply challenges to continue through at least the first half of FY22), KEYS -1.1%, SPTN -0.6%
Companies trading lower in after hours in reaction to news: VRRM -3.1% (stock offering), TRN -0.3% (forms joine venture with Wafra), EQR -0.2% (STWD raises offer to acquire MNR to $19.20/sh), CCI -0.1% (names new COO for Towers unit), WFC -0.1% (reverses decision to shutter personal lines of credit, according to CNBC)
- Reports Q2 (Jul) earnings of $1.04 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $1.02; revenues rose 68.3% year/year to $6.51 bln vs the $6.34 bln S&P Capital IQ Consensus.
- Co issues upside guidance for Q3 (Oct), sees Q3 revs of $6.66-$6.94 bln vs. $6.53 bln S&P Capital IQ Consensus
- Reports Q2 (Jun) loss of $2.16 per share, may not be comparable to the two analyst estimate of ($0.26); revenues rose 131.6% year/year to $565 mln vs the $559.55 mln two analyst estimate.
- Transaction-based revenues increased 141% to $451 million in the second quarter of 2021, compared with $187 million in the second quarter of 2020.
- Options increased 48% to $165 million in the second quarter of 2021, compared with $111 million in the second quarter of 2020.
- Cryptocurrencies increased to $233 million in the second quarter of 2021, compared to $5 million in the second quarter of 2020.
- Equities transaction-based revenue decreased 26% to $52 million in the second quarter of 2021, compared with $71 million in the second quarter of 2020.
- Monthly Active Users (MAUs) increased 109% to 21.3 million in the second quarter of 2021, compared with 10.2 million in the second quarter of 2020.
- Assets Under Custody increased 205% to $102 billion in the second quarter of 2021, compared with $33 billion in the second quarter of 2020.
- Outlook: "... For the three months ended September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter. For operating expenses, we will continue to invest in key areas to enhance platform capabilities, drive product innovation and improve customer support, as well as building upon our regulatory and compliance functions. We will also record a one-time cumulative charge of $1.0 billion in stock-based compensation for restricted stock units related to our IPO in the third quarter... "
- Reports Q4 (Jul) earnings of $0.84 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of $0.83; revenues rose 8.0% year/year to $13.13 bln vs the $13.04 bln S&P Capital IQ Consensus.
- Co reports Q4 non-GAAP operating margin of 33.5% vs 32-33% prior guidance.
- "The demand for Cisco technology is strong with our Q4 performance marking the highest product order growth in over a decade. With the power of our portfolio, we are well positioned to help our customers accelerate their digital transformation and thrive in a hybrid world."
- Co issues guidance for Q1 (Oct), sees EPS of $0.79-0.81, excluding non-recurring items, vs. $0.81 S&P Capital IQ Consensus; sees Q1 revs of $12.82-13.06 bln vs. $12.81 bln S&P Capital IQ Consensus. Co guides to Q1 non-GAAP op margin of 31.5-32.5%.
- Co issues guidance for FY22, sees EPS of $3.38-3.45, excluding non-recurring items, vs. $3.41 S&P Capital IQ Consensus; sees FY22 revs of $52309-53305 vs. $51.89 bln S&P Capital IQ Consensus.
Closing Stock Market SummaryThe S&P 500 fell 1.1% on Wednesday amid a flush of selling interest into the close on no specific news. The market traded relatively flat for most of the day, as investors digested earnings news from retailers, mixed economic data, and a July FOMC Minutes report that was largely in-line with expectations.
The Nasdaq Composite (-0.9%), Dow Jones Industrial Average (-1.1%), and Russell 2000 (-0.8%) declined between 0.8-1.1%.
Eight of the 11 S&P 500 sectors declined at least 1.0%, including energy (-2.4%), which fell more than 2.0%. The consumer discretionary sector (+0.2%) was the lone holdout amid some relief in retail stocks and Tesla (TSLA 688.99, +23.28, +3.5%).
Retail stocks drew support from better-than-expected earnings reports from Lowe's (LOW 199.70, +17.44, +9.6%), Target (TGT 247.95, -7.10, -2.8%), and TJX Cos. (TJX 73.31, +4.36, +6.0%). In addition, Lowe's raised its FY22 revenue guidance above consensus, and Target's CEO said he hasn't seen any slowdown due to the Delta variant. TGT shares closed lower, though.
The broader market didn't really react to the earnings news or to mixed housing starts and building permits data for July. Briefly, total housing starts were weaker than expected at 1.534 million units (Briefing.com consensus 1.610 million) while building permits were better than expected at 1.635 million (Briefing.com consensus 1.610 million). Both figures are seasonally adjusted annual rates.
Instead, there was a slight overreaction to the FOMC Minutes from the July meeting, which indicated that several Fed members thought tapering should begin later this year after substantial further progress has been met. This was in-line with recent Fed commentary when the market was hitting all-time highs.
The major indices briefly pushed toward session highs immediately following the minutes at 2:00 p.m. ET, then quickly turned around. The bulk of the selling interest happened well after the minutes were released. It's worth mentioning that trading volume at the NYSE was on the lighter side, which might have contributed to the weak price action.
The Treasury market was well behaved throughout the session. The 10-yr yield increased two basis points to 1.27%, and the 2-yr yield was unchanged at 0.21%. The U.S. Dollar Index was little changed at 93.15. WTI crude futures fell 1.7%, or $1.16, to $65.44/bbl, which reflecting lingering growth concerns.
Reviewing Wednesday's economic data:
- Total housing starts declined 7.0% month-over-month to a seasonally adjusted annual rate of 1.534 million units (consensus 1.610 million) while building permits increased 2.6% month-over-month to a seasonally adjusted annual rate of 1.635 million (Briefing.com consensus 1.610 million).
- The key takeaway from the report is that permits and starts for single-family units both declined, which speaks to some of the resistance of prospective buyers to high prices and some of the hesitancy to build new homes due to the high costs for materials, land, and labor.
- The weekly MBA Mortgage Applications Index decreased 3.9% following a 2.8% increase in the prior week.
- Weekly crude oil inventories decreased by 3.23 mln barrels after decreasing by 447,000 barrels during the previous week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Conference Board's Leading Economic Index for August, and the Philadelphia Fed Index for August on Thursday.
- S&P 500 +17.2% YTD
- Dow Jones Industrial Average +14.2% YTD
- Nasdaq Composite +12.7% YTD
- Russell 2000 +9.3% YTD




