Morning Preview: April 4th, 2017

eOptionDaily Market Report

Stock futures are sliding early ahead of another busy day for economic data (trade deficit, factory orders) and ahead of an upcoming meeting between President Donald Trump and his Chinese counterpart President Xi scheduled for later this week. The market started the new quarter off slightly lower, as major averages declined (but ended well off its lows) on Monday amid weakness in autos and transports and a dip in financials. The stock market also just might be catching its breath after a solid first quarter, which handed a 5.5% gain to the S&P 500. Bonds rose on Monday as both 2- and 10-year Treasury yields hit 5-week lows (the 10-year Treasury note yield tumbled 4.5 bps to 2.351%, the lowest since Feb. 24). Shares of car makers and their suppliers hammered after March sales disappoint. Markets in holding pattern ahead of start of earnings season in about a week or two, as investors await clarity on further Trump policy plans. In Asian markets, The Nikkei Index fell -172 points to 18,810, the Shanghai Index was closed and the Hang Seng Index rose 149 points to 24,261. In Europe, the German DAX is down slightly, trading under 12,500, while the FTSE 100 was up around 0.2% at 7,300.

Market Closing Prices Yesterday

  • The S&P 500 Index slipped -3.88 points, or 0.16%, to 2,358.84
  • The Dow Jones Industrial Average fell -13.01 points, or 0.06%, to 20,650.21
  • The Nasdaq Composite dropped -17.06 points, or 0.29%, to 5,894.68
  • The Russell 2000 Index declined -16.25 points, or 1.17% to 1,369.67

Events Calendar for Today

  • 7:45 AM ET          ICSC Weekly Retail Sales
  • 8:30 AM ET          Trade Balance for February…est. (-$44.5B)
  • 8:55 AM ET          Johnson/Redbook Weekly Sales
  • 10:00 AM ET       Factory Orders for February…est. 1.0%
  • 10:00 AM ET       Durable Goods Orders for February…est. 1.7%
  • 4:30 PM ET          API Weekly Inventory Data
  • 4:30 PM ET          Fed’s Tarullo speaks at Princeton University

World News

  • Eurozone retail sales rise7% in February, beating forecasts of 0.5% climb
  • Japanese corporate inflation expectations were unchanged in the January-March period, a Bank of Japan survey released Tuesday showed


Sector News Breakdown


  • Kate Spade & Co (KATE) will spend a few more weeks negotiating a potential sale of the company after receiving an offer last week from Coach Inc (COH), Reuters reported citing. Michael Kors Holdings Ltd (KORS) also remains interested in Kate Spade, though it has not been pursuing an acquisition of the company
  • Urban Outfitters (URBN) disclosed that thus far during 1Q, retail comps are down mid-single-digits vs. Street at -1.2% for the full quarter
  • Conn’s (CONN) Q4 EPS 5c/$432.8M vs. est. loss (12c)/$430.8M; 4Q comp sales -8.9%, vs. est. -9.8% and sees 1Q comp sales down Mid-Teens
  • Pier 1 Imports Inc. (PIR) named Alasdair James the company’s new CEO, effective May 1. James last served as president of Kmart in 2014.
  • Digital Ally (DGLY) files to offer up to 800K shares
  • Patriot National (PN) delays filing of annual report on form 10-K because it needs more time to provide documentation requested by its auditor.


  • Peabody announced that it has emerged from Chapter 11 protection with a transformed capital structure, including new equity that is expected to begin trading tomorrow on the New York Stock Exchange under the ticker symbol “BTU”
  • BP Plc (BP) upgraded to buy at Deutsche Bank


  • The average rent being asked by landlords for office leases hit a record high in Manhattan in the first quarter as asking rents rose to $73.92 a square foot in the first quarter from $72.24 a square foot in the last quarter of 2016, according to brokerage Colliers International
  • New Mountain Finance (NMFC) files to sell 5M shares of common stock


  • Paratek Pharmaceuticals (PRTK) said omadacycline met all FDA and EMA goals in a Phase 3 study comparing the once-daily oral and IV antibiotic to moxifloxacin (Bayer’s Avelox) in patients with community-acquired bacterial pneumonia
  • Exact Sciences (EXAS) says Medicare Advantage plans can boost star ratings when beneficiaries complete Cologuard colon cancer screening test
  • Redhill Biopharma (RDHL) said FDA granted Yeliva orphan drug designation for treatment of cholangiocarcinoma.
  • Acadia Healthcare Company (ACHC) will replace Joy Global Inc. (JOY) in the S&P MidCap 400 effective prior to the open on Thursday, April 6.
  • TherapeuticsMD, Inc. (TXMD) said data on TX-001HR, an investigational bio-identical hormone therapy combination of 17AY-estradiol and progesterone in a single, oral softgel, for the treatment of moderate to severe vasomotor symptoms (VMS) due to menopause, was presented at ENDO 2017, the annual meeting of the Endocrine Society in Orlando, Florida, April 1-4
  • Quantum (QTM) announces 1-for-8 reverse stock split

Industrials & Materials

  • Boise Cascade (BCC) upgraded to buy at Bank America
  • Caterpillar (CAT) added to Conviction List at Goldman, remains buy rated
  • Boeing (BA) the U.S. Navy, the Royal Australian Air Force and the United Kingdom Royal Air Force will continue modernizing global maritime patrol capabilities through a $2.2 billion contract awarded March 30 for at least 17 P-8A Poseidon aircraft
  • ABB Ltd. (ABB) said it has agreed to acquire machine and factory automation company Bernecker + Rainer Industrie-Elektronik GmbH for an undisclosed price

Technology, Media & Telecom

  • AMZN named new top pick and raise tgt to $1,200 from $900 at BMO Capital but firm downgraded GOOGL to market perform and lower tgt to $880 from $1,005
  • Google Inc. (GOOGL) accused its former driverless-car executive Anthony Levandowski of quietly developing a competing company for more than three years before he left the internet giant and eventually sold the business to Uber Technologies Inc., according to legal documents
  • Toshiba Corp will meet creditor banks on Tuesday to ask them to accept as collateral shares in its memory chip unit being split off and other businesses and not call in their loans – Reuters
  • Blackbaud, Inc. (BLKB), announced the acquisition of AcademicWorks, Inc., the market leader in scholarship management for higher education and K-12 institutions, foundations and grant-making institutions
  • Qualcomm Inc. (QCOM) said it would file a motion to dismiss a lawsuit by the Federal Trade Commission that accused the company of engaging in anticompetitive behavior to maintain dominance over the market


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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