Morning Wrap

eOptionDaily Market Report

Stock futures are on the rise, extending the late day gain yesterday that helped push major averages higher and snap the three-day losing streak for the S&P 500 and Dow Industrials. All eyes focused on the monthly jobs report at 8:30, with expectations rising into the number (estimate for 200K) after the “blow-out” ADP private payroll report on Wednesday. Any number in-line or higher should essentially solidify an FOMC rate hike next week when the convene for their two-day meeting. This morning, the dollar rose above 115 against the yen (first time since late January) while spot gold fell below $1,200 an ounce (down 8 straight days coming into today). Oil prices were also showing moderate gains, after finishing at their lowest in more than three months on Thursday. In Asian markets, The Nikkei Index jumped 286 points to 19,604, the Shanghai Index slipped -3 points to 3,212 and the Hang Seng Index rose 67 points to 23,568. In Europe, the German DAX gains over 80 points to 12,060, while the FTSE 100 bounced over 30 points to 7,350. Note the benchmark S&P 500 has gained 249% since the bear-market’s closing low on March 9, 2009, just eight-years ago! Coming into today, the three major indexes are lined up for their worst weekly performances this year.

Market Closing Prices Yesterday

·      The S&P 500 Index inched higher 1.89 points, or 0.08%, to 2,364.87
·      The Dow Jones Industrial Average rose 2.46 points, or 0.01%, to 20,858.19
·      The Nasdaq Composite gained 1.25 points, or 0.02%, to 5,838.81
·      The Russell 2000 Index slipped -5.92 points, or 0.43% to 1,360.12

Events Calendar for Today

·      8:30 AM ET          Change in Nonfarm Payrolls for February…est. 200K
·      8:30 AM ET          Change in Private Payrolls, for Feb…est. 205K
·      8:30 AM ET          Unemployment Rate for Feb…est. 4.7%
·      8:30 AM ET          Average Hourly Earnings for Feb…est. 0.3%
·      8:30 AM ET          Average Weekly Hours for Feb…est. 34.4
·      1:00 PM ET          Baker Hughes Weekly Rig Count
·      2:00 PM ET          Monthly Budget Statement for February…est. (-$190.0B)

World News

·      Germany’s exports jumped 2.7% from the month before, while imports rose by 3.0%
·      U.K. manufacturing activity falls 0.9% in January vs. estimate fall of 0.6%
·      The U.K.’s total production shrank by 0.4% on the month in January, the Office for National Statistics said, as manufacturing output declined by 0.9% on a steep decline in production of pharmaceuticals

Sector News Breakdown

Consumer

·      Ulta Beauty (ULTA) Q4 EPS $2.24/$1.58B vs. est. $2.13/$1.54B; said Q4 comp sales rose 16.6% (est. 14.1%) vs. an increase of 12.5% in Q4’15, driven by 10.9% growth in transactions and 5.7% growth in average ticket; E-commerce sales grew 63.4% to $154.9M from $94.8M YoY; sees Q1 EPS $1.75-$1.80 on revs $1.24B-$1.27B vs. est. $1.80/$1.27B; sees FY17 EPS growth low 20% range and FY17 e-commerce growth around 40%; approves new share repurchase of $425M
·      Colgate (CL) boosts quarterly dividend 3% to 40c from 39c
·      Zumiez (ZUMZ) Q4 EPS 74c/$263.6M vs. est. 66c/$260.6M; Q4 comparable sales increased 5.1% compared to a 9.5% decrease for the year ago, quarter; sees 2017 System-Wide comp sales Unchanged to up 2%
·      El Pollo Loco (LOCO) Q4 EPS 12c/$92.5M vs. est. 13c/$91.7M; reports Q4 System-wide comparable restaurant sales decreased (-1.3%) including a (-0.6%) decrease for company-operated restaurants, and a (-1.9%) decrease for franchised restaurants; sees FY proforma EPS 65c-69c vs. est. 70c
·      Freshpet (FRPT) Q4 EPS 4c/$34.1M vs. est. 4c/$34.18M; sees FY17 revenue to exceed $153M (est. $150.59M) and also sees for FY17 to exceed adjusted EBITDA of $16M, a decrease of approximately 10%
·      Medifast (MED) Q4 EPS 34c/$62.5M; sees 2017 EPS from continuing operations $2.00-$2.10 and revs $290M-$300M
·      Hibbett Sports (HIBB) Q4 EPS 54c/$246.9M vs. est. 54c/$252.08M; Q4 comp sales fell (-2.2%); sees FY18 EPS $2.65-$2.85 vs. consensus $2.75
·      Kirkland’s (KIRK) Q4 EPS 90c/$203.2M vs. est. 81c/$203.21M; Q4 comp sales fell (-4.6%)
·      Food prices may have risen to the highest in nearly six years, according to FAO’s index, but sweet treats aren’t the issue. Raw sugar is at a one-year low, while milk and cocoa prices are also falling – Bloomberg

Energy

·      Oil prices were also showing moderate gains, after finishing at their lowest in more than three months on Thursday|
·      Western Gas Partners (WES) files to sell 21.92M common units for holders

Financials

·      AllianceBernstein (AB) preliminary AUM increased to $498B as of February 28, from $489B at the end of January, driven primarily by market appreciation, with firm wide net inflows contributing as well
·      Invesco Ltd. (IVZ) said preliminary month-end assets under management (AUM) was $836.8B, an increase of 1.4% MoM, driven by favorable market returns, net long-term inflows, and an increase in PowerShares QQQs
·      Artisan Partners Asset Management Inc. (APAM) Feb prelim AUM totaled $101.5B vs. $100.3B MoM. Separate accounts accounted for $49.7 billion of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $51.8 billion.
·      Manning & Napier (MN) cuts quarterly dividend to 8c per share
·      GAIN Capital (GCAP) Q4 EPS 43c/$115.8M vs. est. 45c/$116.72M
·      Alexandria Real Estate (ARE) 6.1M share Spot Secondary priced at $108.55
·      Royal Bank of Canada (RY) to repurchase up to 30M shares

Healthcare

·      BioCryst (BCRX) 5.29M share Secondary priced at $8.50
·      AbbVie (ABBV) added to Conviction List at Goldman, PT to $80 From $74
·      Surgery Partners (SGRY) Q4 EPS 35c/$306M vs. est. 20c/$298.6M; said it sees 2017 revs up 9%-11% YoY and sees 2017 Ebitda up 10%-15% YoY; says forecasts assume “modest contribution from acquisitions in 2107”
·      Acacia Research (ACTG) Q4 EPS 2c/$21.97M vs. est. 8c/$29.99M
·      Sciclone Pharmaceuticals (SCLN) files $100M Mixed Securities Shelf
·      Harvard Bioscience (HBIO) Q4 EPS 4c/$26.4M vs. est. 4c/$27.03M

Technology, Media & Telecom

·      Finisar (FNSR) Q3 EPS 59c/$380.6M vs. est. 62c/$389.55M; sees Q4 EPS 50c-56c on revs $360M-$380M below estimates 58c/$393.1M; Q3 gross margin 37% and sees 4Q gross margin 36.0%
·      Shares of other optical component stocks fell overnight on FNSR report (OCLR, LITE, AAOI, ACIA, NPTN); recall Ciena (CIEN) results recently weighed on the sector
·      VeriFone (PAY) Q1 EPS 21c/$454M vs. est. 20c/$457M; sees FY17 adjusted EPS $1.35-$1.39 and revs $1.9B-$1.915B vs. est. $1.37/$1.91B; sees Q2 EPS 29c on revs $470M-$474M vs. est. 33c/$472.22M
·      Sinclair Broadcast (SBGI) 12M share Secondary priced at $42.00
·      Presidio (PSDO) 16.67M share IPO priced at $14.00
·      Ooma (OOMA) 2.86M share Spot Secondary priced at $8.85
·      American Tower (AMT) boosts quarterly dividend to 62c from 58c
·      MeetMe (MEET) files to sell common stock, no amount given

Market commentary provided by Hammerstone Markets, a division The Hammerstone Group, a firm separate from and not affiliated with Regal Securities L.P.  Regal Securities L.P. has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

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