Morning Wrap

eOptionDaily Market Report

Events Calendar for Today

· 7:00 AM ET MBA Mortgage Applications Data

· 8:30 AM ET Empire Manufacturing Index for March…est. 15.0

· 8:30 AM ET Consumer Price Index MoM for February…est. 0.0%

· 8:30 AM ET CPI Ex: Food & Energy MoM for Feb…est. 0.2%

· 8:30 AM ET Advance Retail Sales MoM for February…est. 0.1%

· 8:30 AM ET Retail Sales Less Autos MoM for Feb…est. 0.1%

· 10:00 AM ET NAHB Housing Market Index for March…est. 65

· 10:00 AM ET Business Inventories for January…est. 0.3%

· 10:30 AM ET Weekly DOE Inventory Data

· 2:00 PM ET FOMC Rate Decision (a 25-bps hike is expected)

· 4:00 PM ET Total Net TIC flows for January…prior (-$42.8B)

Earnings Calendar

· Earnings Before the Open: ACRS, AXAS, CBK, HCAP, OFS, TWI

· Earnings After the Close: ALRM, AVID, CNAT, CPRX, EVOK, FRSH, GES, JBL, ORCL, SYNC, WSM

Market Closing Prices Yesterday

·      The S&P 500 Index dropped -8.02 points, or 0.34%, to 2,365.45

·      The Dow Jones Industrial Average slid -44.11 points, or 0.21%, to 20,837.37

·      The Nasdaq Composite dropped -18.97 points, or 0.32%, to 5,856.82

·      The Russell 2000 Index declined -7.91 points, or 0.58% to 1,362.38

World News

·      Germany’s economic growth has probably accelerated during the first quarter from the previous three months’ 0.4% quarterly growth, the economics ministry said

·      UK unemployment in the November-January period fell by 0.1 percentage point to 4.7%, the lowest rate since mid-1975, as employment rose by 92,000, hitting the highest level on record, the Office for National Statistics said.

Sector News Breakdown

·      Adidas AG said it expects to increase its North American sales nearly 50% by 2020; the EUR5 billion ($5.32 billion) forecast for sales in North America in 2020 is up from the EUR3.41 billion in sales rung up in 2016

·      FTD Cos (FTD) Q4 EPS loss ($3.17)/$280.7M vs. es.t $282.5M; sees 2017 revs largely in-line with 2016 revs of $1.12B

·      Fogo De Chao (FOGO) Q4 EPS 28c/$80.9M vs. est. 27c/$77.07M; Q4 comp total comp sales fell (-2%) vs. est. (-4.8%); sees FY revs $315M-$320M vs. est. $318M

·      Hostess Brands (TWNK) Q4 EPS 14c/$178.8M vs. est. 15c/$; backs FY17 revenue view $781M and adjusted EBITDA view $235M


·      The American Petroleum Institute (API) reported a decline of 531,000 barrels in U.S. crude supplies for the week ended March 10; a fall of 3.9 million barrels in gasoline supplies and a drop of 4.1 million barrels in distillates

·      OPEC data to show 100% compliance with cuts in February

·      Southwestern Energy (SWN) upgraded to buy at Citigroup

·      Abraxas Petroleum (AXAS) Q4 EPS 1c/$22M vs. est. loss (1c)/$20.2M; 4Q production 7,955 boe/d and 4Q production 732,000 mboe


·      Capital One Financial (COF) said February net-charge offs (NCOs) were 5.09% vs. 4.91% MoM and the delinquency rate was 4.04% vs. 4.13% MoM

·      First Industrial Realty Trust (FR) files $1.5B mixed shelf


·      An FDA Advisory Committee voted 18 no, versus 8 yes, with 1 abstaining, as to whether the benefits of Endo Pharma’s (ENDP) reformulated Opana ER continue to outweigh its risks

·      The FDA approved updated labeling for Merck’s (MRK) Keytruda today that includes indication in adult and pediatric patients with refractory classical Hodgkin lymphoma, or who have relapsed after 3+ prior lines of treatment

·      Arena Pharmaceuticals (ARNA) Q4 EPS 16c/$85.4M vs. est. loss (8c)/$15.58M; Q4 revenue includes $15.2M in net product sales of BELVIQ, $1.3M in milestone payments earned from Eisai and Ildong for BELVIQ, and $66.1M of revenue associated with upfront BELVIQ payments

·      Achaogen (AKAO) Q4 EPS loss ($1.04)/$1077M vs. est. loss (49c)/$12.41M

·      Infinity Pharma (INFI) Q4 EPS loss (46c) vs. est. loss (57c), est. loss/share 57c; 4Q cash & cash equivalents $92.1M and 4Q total assets $125.7M

·      Hill-Rom (HRC) raises quarterly dividend to 18c from 17c per share

·      Celldex (CLDX) Q4 EPS loss (30c) on revs $1.87M vs. est. loss (33c); says sees having enough to fund planned ops through 2018

Industrials & Materials

·      German police raided the offices and homes of Audi AG executives in two southern German cities in connection with a criminal investigation of the company in the wake of Volkswagen AG’s (VLKAY) diesel emissions-cheating scandal, Audi said

Technology, Media & Telecom

·      NeoPhotonics (NPTN) Q4 EPS 13c/$109.8M vs. est. 8c/$106.92M; sees Q1 adjusted EPS loss (30c)-(20c) on revs $67M-$73M below consensus 5c/$98.04M

·      Rubicon Project (RUBI) Q4 EPS 37c/$66.9M vs. est. 15c/$64M; sees Q1 EPS loss (22c-26c) vs. est. profit of 10c

·      China Unicom (CHU) said 2016 net profit fell 94%, dragged lower in part by higher expenses. The Chinese mobile operator said net profit fell to 625 million yuan (US$90.4 million) from CNY10.56 billion a year earlier, while revenue fell to CNY274.2 billion

·      Snap (SNAP) rated new underweight at Cantor with $18 tgt

·      A huge hack hit dozens of prominent Twitter (TWTR) accounts early Wednesday, hijacking them to post messages supporting the Turkish leader in his diplomatic feud with the Netherlands and Germany

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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