Morning Wrap

eOptionDaily Market Report

U.S. stock futures jump, but markets are actually higher all around the world, extending gains since the Fed announcement yesterday, with stocks, bonds, gold, oil prices all surging while the dollar takes a breather. Stocks jumped on Wednesday, with the Nasdaq Composite trading above its all-time closing high, and the Dow soaring more than 100 points as the Federal Reserve raised interest rates for the third time since December 2015, but is moving gradually toward normalization slowly, easing fears that the Fed may be stepping on the gas a little too hard. The Fed dot plot showed more unity among the central bankers about their interest-rate forecast and indicated two more hikes this year. Utility and real estate shares led the late-day rally as 10-year Treasury yields fell the most in two months.

In Asian markets, The Nikkei Index rose 12 points to 19,590, the Shanghai Index gained 27 points to settle at 3,268 and the Hang Seng Index surged 495 points (over 2%) to close at 24,288. In Europe, the German DAX is up around 1% at 12,125, while the FTSE 100 is up around 0.9% at 7,435. European stocks are at their strongest levels in more than a year, carried higher by a rally in mining shares and after Dutch voters rebuffed a far-right party in the country’s general election

Market Closing Prices Yesterday

·      The S&P 500 Index jumped 19.81 points, or 0.84%, to 2,385.26

·      The Dow Jones Industrial Average rose 112.73 points, or 0.54%, to 20,950.10

·      The Nasdaq Composite spiked 43.23 points, or 0.74%, to 5,900.05

·      The Russell 2000 Index advanced 20.45 points, or 1.50% to 1,382.83

Events Calendar for Today

·      8:30 AM ET          Weekly Jobless Claims…est. 240K

·      8:30 AM ET          Continuing Claims…est. 2.05M

·      8:30 AM ET          Housing Starts MoM for February…est. up 1.4% to 1.264M

·      8:30 AM ET          Building Permits MoM for February…est. -1.9% to 1.268M

·      8:30 AM ET          Philly Fed Business Outlook for March…est. 30.0

·      9:45 AM ET          Bloomberg Consumer Comfort Index…prior 50.6

·      10:00 AM ET       JOLTs Job Openings for January…est. 5562

·      10:30 AM ET       Weekly EIA Natural Gas Inventory Data

Earnings Calendar:

·      Earnings Before the Open: DG, INSY, MDLY, NGI, USPH

·      Earnings After the Close: ADBE, CATB, CAL, CMLS, KINS, MNKD, NWY, VSLR, XONE

World News

·      The euro hit a five-week high in Asia trade after exit polls suggesting a pro-European Union winner in the Dutch election. Preliminary results backed up the earlier exit polls, showing that Prime Minister Mark Rutte had likely held off the challenge of a far-right rival Geert Wilders, lowering the threat of a common currency breakup

·      China’s central bank raised a suite of key short-term interest rates for the second time since late January. The People’s Bank of China raised the interest rates it charges commercial banks in the money market on the seven-day, 14-day and 28-day loans–also known as reverse repurchase agreements or repos–each by 0.1%

·      U.S. Total Cross-Border Investment (TIC) inflow $110.4B in January; China holds $1.05t of U.S. Treasuries, a decrease of $7.3b from last month, while Japan holds $1.10t, an increase of $11.7b from last month

Sector News Breakdown
Consumer

·      Williams-Sonoma (WSM) Q4 EPS $1.55/$1.582B vs. est. $1.51/$1.61B; reports Q4 comparable brand revenue fell (-0.9%) vs. est. up 0.9%; sees Q1 EPS 45c-50c on revs $1.085B-vs. est. 54c/$1.12B; sees Q1 comparable brand revenue growth (1%)-2%; sees FY17 EPS $3.45-$3.65 on revs $5.165B-$5.265B vs. est. $3.61/$5.27B

·      Guess (GES) Q4 EPS 41c/$679M vs. est. 44c/$685.98M; sees Q1 EPS loss (30c-33c) vs. est. loss (15c); sees Q1 net revenues are expected to range between a decline of 0.5% and an increase of 1.5% in U.S. dollars

·      Tesla (TSLA) announces $250MM common stock offering, $750MM convertible note offering

·      Barnes & Noble (BKS) announces new $50M buyback program

·      Papa Murphy’s (FRSH) Q4 EPS 9c/$35.5M vs. est. 2c/$39.19M; reports Q4 domestic system comparable store sales decreased (-7.8%) on a comp 13-week basis, including a (-7.5%) decrease at domestic franchise-owned stores and an (-11.1%) decrease at company-owned stores

Energy

·      Diamond Offshore (DO) says panel of appellate judges ruled unanimously against Petrobras’ appeal and upheld the injunction for its Ocean Valor rig contract

·      Pioneer Natural Resources (PXD) said it has signed a purchase and sale agreement with an undisclosed buyer to sell its previously-announced acreage package in northeastern Martin County, Texas, for $266M

Financials

·      Virtu Financial (VIRT) has made an offer to buy KCG Holdings (KCG), the Wall Street Journal reports. Virtu has made a bid with a price of over $18 per share, or at least $1.2B based on a recent share count https://goo.gl/mgSqld

Healthcare

·      Biogen (BIIB) was downgraded to market perform at Leerink and equal-weight at Morgan Stanley

·      Editas Medicine (EDIT) to offer 4M shares

·      Trovagene (TROV) signs development and commercialization agreement with Nerviano that grants Trovagene exclusive global development and commercialization rights to NMS-1286937, which Trovagene refers to as PCM-075; reports Q4 EPS loss (34c)/$68K revs

Technology, Media & Telecom

·      Oracle (ORCL) reports Q3 EPS 69c/$9.2B vs. est. 62c/$9.26B; 3Q adjusted operating margin 43%; raises quarterly dividend 27% to 19c from 15c per share; 3Q service revs $812M, hardware revs $1.03B, cloud revs $1.19B

·      Jabil Circuit (JBL) Q2 EPS 48c/$4.4B vs. est. 46c/$4.37B; sees Q3 core EPS 19c-39c on revs $4.25B-$4.55B vs. est. 29c/$4.4B; sees Q3 diversified manufacturing services revenue up 9% YoY; sees Q3 electronics manufacturing services revenue down 1% YoY

·      GoPro (GPRO) sees Q1 revenue at upper end of $190M-$210M range vs. est. $200.07M and repeated its target of full-year non-GAAP profitability; also announced a restructuring that reduces full-year GAAP operating expenses to below $585M and non-GAAP operating expenses to below $495M; cutting 270 jobs

·      Alarm.com (ALRM) Q4 EPS 19c/$69.8M vs. est. 13c/$63.95M; said Q4 SaaS and license revenue grew to $46.9M, up 21% YoY; Q4 non-GAAP adjusted EBITDA increased to $14.3M, up 47% YoY; sees year EPS 73c-75c vs. est. 53c

·      Synacor (SYNC) Q4 EPS loss (10c)/$34.9M vs. est. loss (10c)/$35.18M; sees Q1 revenue $26M-$28M vs. consensus $30.98M and Q1 adjusted EBITDA ($4M)-($3M)

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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