Morning Preview: March 23rd, 2017

eOptionDaily Market Report

Stock futures are little changed, range bound overnight after stabilizing on Wednesday ahead of a key vote on U.S. health care later today that could be a set the stage for future Trump administration policies (tax reform, regulation and infrastructure spending). There is definitely a bit of cautiousness ahead of the health-care bill, where Democrats are all expected to vote against the Bill, and several Republicans are “on the fence” for the Obamacare replacement. Shares of hospitals, managed care and life science tools are all expected to by active today following the vote. There is also weekly jobless claims, and housing data, but all eyes focused on the healthcare bill vote. In Asian markets, The Nikkei Index gained 43 points to 19,085, the Shanghai Index gained 3 points to 3,248 and the Hang Seng Index inched higher 7 points to 24,327. In Europe, the German DAX is up a few points around 11,915, while the FTSE 100 is down slightly around 7,310. Note the Nikkei hit six-week lows Thursday and briefly broke through 19,000 after the dollar fell below ¥111 overnight. The EU233.5 billion take-ups at today’s TLTRO is higher than the median expectation for EU110 billion among analysts. EUR/USD is paring its decline after the TLTRO

Market Closing Prices Yesterday

  • The S&P 500 Index gained 4.43 points, or 0.19%, to 2,348.45
  • The Dow Jones Industrial Average fell -6.71 points, or 0.03%, to 20,661.30
  • The Nasdaq Composite climbed 27.82 points, or 0.48%, to 5,821.64
  • The Russell 2000 Index slipped -0.95 points, or 0.07% to 1,345.60

Events Calendar for Today

  • 8:00 AM ET          Fed’s Yellen speaks at Community Development Conference
  • 8:30 AM ET          Weekly Jobless Claims…est. 240K
  • 8:30 AM ET          Continuing Claims…est. 2.04M
  • 9:45 AM ET          Bloomberg Consumer Comfort Index…prior 51.0
  • 10:00 AM ET       New Home Sales MoM for February…est. up 1.8% at 565K
  • 10:30 AM ET       Weekly EIA Natural Gas Inventory Data
  • 11:00 AM ET       Kansas City Fed Manufacturing Activity for March…est. 14
  • 12:30 PM ET        Fed’s Kashkari speaks on U.S. Education in Washington DC
  • 7:00 PM ET          Fed’s Kaplan speaks on economy in Chicago

World News

  • Eight people have been arrested as police continue to investigate the deadly terrorist attack in London on Wednesday that left three victims and the attacker dead and more than two dozen others injured
  • A powerful network of conservative donors, backed by the billionaire Koch brothers, have vowed financial support to House Republicans in their 2018 reelection races — if they vote against the health-care bill backed by the Trump administration
  • K. retail sales rebounded in February following three consecutive months of decline, data showed Thursday, but the underlying trend remained weak. Sales in February grew by 1.4% from the previous month, driven by strong sales across all categories, with household goods stores performing particularly well. Compared with the same month last year, sales rose by 3.7%.


Sector News Breakdown


  • PVH Corp. (PVH) Q4 EPS $1.23/$2.1B vs. est. $1.19/$2.09B; authorizes extension, $750M increase to buyback program; sees FY EPS $7.30-$7.40 vs. est. $7.26 and sees 1Q EPS $1.58-$1.60 vs. est. $1.57
  • Five Below (FIVE) Q4 EPS 90c/$388.1M vs. est. 89c/$387.63M; sees Q1 EPS 12c-14c on revs $228M-$232M vs. est. 14c/$231.14M; sees year revs $1.21B-$1.23B vs. est. $1.21B; Q4 comp sales +1% vs. est. +0.9%
  • Herman Miller (MLHR) Q3 EPS 39c/$524.9M vs. est. 32c/$530.5; sees Q4 EPS 53c-57c on revs $575M-$595M vs. est. 49c/$587.85M
  • Cintas (CTAS) Q3 EPS ex-items $1.11/$1.28B vs. est. $1.07/$1.28B; purchase accounting process may have SIG impact on results
  • Bebe Stores Inc. (BEBE) said Wednesday that it hired financial advisers to help it explore strategic alternatives, according to a news release
  • Pinnacle Foods (PF) affirmed its outlook for full year 2017 adjusted diluted EPS in the range of $2.55-$2.60, representing growth of approximately 20% at the mid-point of the range
  • Altria (MO) downgraded to underperform at RBC Capital with $62 target


  • Matador (MTDR) increases 2017 total production view to 12.4M-13.0M BOE from 6.7M-7M BOE; raises 2017 adjusted EBITDA view to $255M-$275M from $245M-$265M; sees 2017 oil production 6.9M-7.2M; reaffirms 2017 Capex view o $110M-$125M, including midstream Capex $56M-$64M


  • Raymond James (RJF) said total securities commissions and fees of $324M increased 16% compared to February 2016 but declined 3% compared to January 2017; client assets under administration reached a record $637.3B, increasing 30% over February 2016 and 2% over January 2017
  • Washington REIT (WRE) has agreed to buy for about $135M in operating units. The deal is expected to close early next month; lifts its full-year core FFO per share guidance by $0.02 at both ends to $1.76-$1.84
  • American Homes 4 Rent (AMH) files to sell 11M shares of common stock
  • Cherry Hill Mortgage (CHMI) files to sell 4.5M shares of common stock
  • Lazard (LAZ) upgraded to neutral and tgt upped to $47 at Bank America


  • Ultragenyx Pharmaceutical (RARE) said Phase II study of UX007 in glucose transporter type-1 deficiency syndrome in patients with seizures did not meet primary endpoint of reducing the frequency of total number of observable and absence seizures among patients treated with UX007 from baseline to Week 8 compared to placebo
  • Bellicum Pharmaceuticals (BLCM) files to sell 5M shares of common stock
  • Kadmon (KDMN) Q4 EPS loss (50c)/$4.3M; reports R&D expenses $8.7M vs. $10.2M last year and cash position $36.1M
  • HTG Molecular Diagnostics (HTGM) announced that it has obtained CE marking in the European Union for its HTG EdgeSeq ALKPlus Assay EU
  • Merit Medical (MMSI)5M share Secondary priced at $28.25

Industrials & Materials

  • ArcelorMittal (MT) upgraded to Outperform at Cowen
  • Commercial Metals (CMC) Q2 EPS 25c/$1.15B vs. est. $1.12B; Q2 adjusted Ebitda $82.7M vs. est. $60M
  • Nucor (NUE) to invest $85M to upgrade rolling mill in Marion, Ohio
  • Orion Engineered (OEC) files to sell 5M shares of common stock for holders
  • Daewoo Shipbuilding & Marine Engineering Co.’s state-run creditors on Thursday unveiled a 2.9 trillion won ($2.6 billion) rescue package for the South Korean shipbuilder, which has been hurt by massive losses from its offshore projects

Technology, Media & Telecom

  • FireEye (FEYE) upgraded to buy from sell at Goldman Sachs and boosts price target to $15 from $10 saying mix shift to recurring revenue occurring faster than expected
  • Apple (AAPL) has acquired Workflow, an automation tool for iOS, TechCrunch reports. Financial terms of the deal have not been disclosed
  • Avid Technology (AVID) Q4 EPS 13c/$115.3M vs. est. 15c/$113.45M
  • Keysight Technologies (KEYS)43M share Secondary priced at $35.00
  • LSC Communications (LKSD)242M share Secondary priced at $20.25

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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