Morning Wrap

eOptionDaily Market Report

U.S. stock-index futures were little changed as investors assessed the trajectory for interest rates in 2017. Not much in way of news, as major US averages are on pace for weekly gains, as investors turn to more economic data today and a meeting between President Donald Trump and German Chancellor Angela Merkel highlights today’s action. Also, finance ministers from industrialized and emerging-market economies are gathering in Baden-Baden for a G-20 meeting, the first for new U.S. Treasury Secretary Steven Mnuchin. Stocks have been buoyed on the back of a less-hawkish-than-expected policy statement from the Federal Reserve Wednesday after raising rates for only the third time in over 11-years. Coming into today, the S&P 500 was set for a 0.4% weekly advance, the Dow average on track to end 0.2% higher for the week, and the Nasdaq Composite on pace for a 0.7% gain, as of Thursday’s, close. The S&P and Dow finished with small losses on Thursday. In Asian markets, The Nikkei Index fell -68 points to 19,521, the Shanghai Index dropped -31 points to 3,237 and the Hang Seng Index rose 21 points to 24,309. In Europe, the German DAX is down a few points around 12,075, while the FTSE 100 was up around 0.2% at 7,430. Happy St. Patrick’s Day!

Market Closing Prices Yesterday

·      The S&P 500 Index slipped -3.88 points, or 0.16%, to 2,381.38

·      The Dow Jones Industrial Average fell -15.55 points, or 0.07%, to 20,934.55

·      The Nasdaq Composite gained 0.71 points, or 0.01%, to 5,900.76

·      The Russell 2000 Index advanced 3.20 points, or 0.23% to 1,386.03

Events Calendar for Today

·      9:15 AM ET          Industrial Production MoM for February…est. 0.2%

·      9:15 AM ET          Capacity Utilization for Feb…est. 75.5%

·      10:00 AM ET       University of Michigan Confidence, March-P…est. 97.0

·      10:00 AM ET       Leading Index for February…est. 0.5%

·      1:00 PM ET          Baker Hughes Weekly Rig Count

World News

·      According to the European Union’s statistics agency, goods exports from the EuroZone fell by 0.4% from December on a seasonally adjusted basis, while imports jumped by 4.1%. As a result, the Eurozone’s trade surplus fell to 15.7 billion euros ($16.8 billion) from EUR23.1 billion in December

·      China’s central bank is moving to regulate its domestic bitcoin industry, circulating new guidelines that, if enacted, would require exchanges to identify clients and adhere to banking regulations.

·      China’s outbound direct investment dropped 52.8% compared with a year earlier to $13.43 billion in the first two months of the year, the Ministry of Commerce said

Sector News Breakdown
Consumer

·      Tiffany (TIF) Q4 EPS $1.45/$1.23B vs. est. $1.38/$1.22B; Q4 comp sales ex-FX up 0% vs. est. (-1.1%); seesFY17 EPS up mid-single digit percent

·      SeaWorld (SEAS) downgraded to sell from neutral at Citi and cut tgt to $15 from $19 citing street estimates may be overlooking risks to Ebitda.; said Universal is poised to open Volcano Bay in Florida; estimates this could pose $15m Ebitda headwind by 2018

·      Dean Foods (DF) upgraded to Overweight from Neutral at JPMorgan

·      Caleres (CAL) Q4 EPS 33c/$639.5M vs. est. 38c/$630.2M; Q4 comp sales rose 0.3% vs. est. 2.3%; sees year EPS $2.10-$2.20 vs. est. $2.35

Energy

·      Vivint Solar (VSLR) Q4 EPS loss (41c)/$41.77M vs. est. loss (45c)/$42.09M; booked of approximately 57 MWs for the quarter and installed of approximately 47 MWs

·      PNM Resources (PNM) backs FY17 ongoing EPS view of $1.77-$1.87, consensus $1.82

·      ProPetro Holding (PUMP) 25M share IPO priced at $14.00

·      E.ON said it would receive gross proceeds of about 1.35 billion euros ($1.45 billion) from a capital increase

Financials

·      LPL Financial (LPLA) Feb total brokerage & advisory assets up 2.1% $528B MoM; total client cash sweep balances fell 1.3% to $29.6B MoM

·      KKR & Co. (KKR) and Caisse de dépôt et placement du Québec are nearing a deal to jointly acquire insurance broker USI Insurance Services for about $2 billion. The deal would value closely held USI at about $4 billion including debt https://goo.gl/mrTHbw

·      Goldman downgrades retail REITs to cautious, saying the group faces slowing rent growth that’s unaccounted for in consensus estimates, while some subsectors are near historically high valuations; cuts Macerich (MAC) to sell from neutral, Simon (SPG) to neutral from buy

·      Investar Holding (ISTR) 1.412M share Secondary priced at $21.25

Healthcare

·      Perrigo (PRGO) said it continues to work with independent auditor, and expects to file its Form 10-K as soon as practical – Technical accounting matters are not expected to have a material impact on historical or future net cash flow

·      Omeros (OMER) Q4 EPS loss (45c)/$12.9M vs. est. loss (56c)/$12.48M

·      Catabasis Pharmaceuticals (CATB) reports Q4 EPS (47c) vs. consensus (52c)

·      Histogenics (HSGX) files $50M mixed securities shelf

·      Vertex (VRTX) upgraded to Outperform from Market Perform at JMP Securities

·      Editas Medicine (EDIT) 4M share Secondary priced at $22.50

Industrials & Materials

·      A Brazilian judge suspended a nearly $50 billion lawsuit against mining firms responsible for the 2015 Samarco disaster. The decision came as part of a ruling in which federal judge Mário de Paula Franco Júnior approved a road map toward a final agreement between prosecutors and mining companies Vale SA (VALE), BHP Billiton Ltd. (BHP) and their joint-venture Samarco.

·      Mistras Group (MG) Q3 EPS 12c/$167.5M vs. est. 10c/$160M

·      Rayonier Inc. (RYN) entered into three transactions with separate sellers to acquire approximately 95,100 acres of high-quality industrial timberlands located in Florida, Georgia and South Carolina for an aggregate purchase price of approximately $217 million, or $2,280 per acre

·      Rayonier (RYN) announces offering of 5M common shares

·      NN, Inc. (NNBR) files $400M mixed securities shelf

·      Adecoagro (AGRO) Q4 Ebitda $113.9M vs. est. $101.9M; 4Q adj. Ebitda margin 35.7%

Technology, Media & Telecom

·      Adobe (ADBE) Q1 EPS 94c/$1.68B vs. est. 87c/$1.65B; Q1 digital media revenue $1.14B, Q1 creative revenue $942M and digital media annualized recurring revenue $4.25B; sees Q2 PES/revs 94c/$1.73B vs. est. 91c/$1.71B

·      ExOne (XONE) Q4 EPS loss (16c)/$14.6M vs. est. $18.1M; 4Q gross margin 29.6% and sees year sales Growth at Least 25%

·      MuleSoft (MULE) 13M share IPO priced at $17

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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