Morning Preview: April 19th, 2017

eOptionDaily Market Report

Stock futures are rising slightly to start the morning, following a rebound in Europe, as markets are led higher on positive sales data in Europe and commodity producers rebounding with metals prices, and ahead of the release of the Federal Reserve’s Beige Book. Dow futures are indicated higher early despite shares of Dow component IBM falling around 4% overnight after another revenue miss. Another busy day of earnings today, highlighted by results from MS, TXT, USB, ABT and AMTD.

U.S. stocks fell on Tuesday as commodity prices retreated and both healthcare and financial sectors declined led by disappointing earnings and/or guidance from GS, JNJ and CAH. Meanwhile, defensive consumer staples, real estate and utility stocks edged higher as Treasury yields dropped across the board to their lowest levels in 5-months. The dollar fell against the British Pound (a 2% move) after U.K. Prime Minister Theresa May called for an early election on June 8, aimed at strengthening her hand going into talks on leaving the European Union.

In Asian markets, The Nikkei Index rose 13 points to close at 18,432, the Shanghai Index fell -26 points to settle at 3,170 and the Hang Seng Index fell -98 points to finish at 23,825. In Europe, the German DAX is higher by more than 30 points at 12,035, and the FTSE 100 is flat at just under 7,350. The British pound was giving up a little of the prior day’s sizable gain, but was holding above $1.28 as investors waited for the outcome of a U.K. parliamentary vote on the snap election.

Market Closing Prices Yesterday

  • The S&P 500 Index jumped 12.58 points, or 0.65%, to 2,140.45
  • The Dow Jones Industrial Average rose 98.58 points, or 0.59%, to 18,836.10
  • The Nasdaq Composite spiked 44.58 points, or 0.05%, to 5,296.23
  • The Russell 2000 Index advanced 22.72 points, or 0.55% to 1,243.94

Events Calendar for Today

  • 7:00 AM ET          MBA Mortgage Applications Data
  • 10:30 AM ET       Weekly DOE Inventory Data
  • 12:00 PM ET        Fed’s Rosengren speaks at Bard College Conference
  • 2:00 PM ET          Federal Reserve Beige Book released

Earnings Calendar:

  • Earnings Before the Open: ABT, AMTD, BLK, GPC, HBAN, MS, PZN, SBNY, TXT, UBSH, USB

World News

  • Former President George H.W. Bush has been hospitalized in Houston for four days with a recurrence of pneumonia he had earlier in the year, a family spokesman said
  • The European Union’s statistics agency said the Eurozone exported3 billion euros ($182 billion) of goods to countries outside the currency area, while importing goods valued at EUR152.6 billion from the U.S., the U.K. and other economies, leaving a surplus of EUR17.8 billion
  • Investor Intelligence Poll shows writers classified as bulls tumble to 51.9% versus 56.3% last week; bearish sentiment rises to 18.3% from 17.5% and those expecting a correction rises to 3-week high 29.8% vs 26.2% last week
Sector News Breakdown


  • Coca-Cola (KO) upgraded to Outperform from Neutral at Credit Suisse


  • The American Petroleum Institute (API) reported a fall of 840,000 barrels in U.S. crude supplies for the week ended April 14, and also showed a climb of 1.4 million barrels in gasoline supplies, while inventories of distillates declined by 1.8 million barrels
  • Murphy USA (MUSA) lowers FY17 net income guidance to $90M-$160M from $140M-$190M and lowers FY17 adjusted EBITDA guidance to $340M-$450M from $400M-$450M


  • BlackRock (BLK) Q1 EPS $5.25/$2.82B vs. est. $4.90/$2.87B; Assets under management $5.42T and Q1 operating margin 40.6%
  • Navient (NAVI) said it reached an agreement to purchase JPMorgan Chase’s (JPM) approximately $6.9 billion education loan portfolio.
  • Interactive Brokers (IBKR) Q1 comprehensive EPS 40c/$374M vs. est. 39c/$393.4M; sees $25M costs on phasing out some ops
  • WesBanco (WSBC) Q1 EPS 60c (in-line) and Q1 provision for credit losses increased to $2.7M compared to $2.3M in the Q1 of FY16 due primarily to loan growth
  • Eagle Bancorp (EGBN) Q1 EPS 79c vs. est. 74c; 1Q non-interest income $6.07M and Q1 provision for credit losses $1.40M
  • Fulton Financial (FULT) Q1 EPS 25c vs. est. 23c


  • Ultragenyx Pharma (RARE) reported burosumab met the primary endpoint in a Phase 3 study in adults with X-linked hypophosphatemia (XLH). Patients treated with burosumab demonstrated a statistically significant improvement in serum phosphorus levels
  • Intuitive Surgical (ISRG) Q1 EPS $5.09/$674M vs. est. $4.95/$666.54M; 1Q worldwide procedure growth +18% and shipped 133 da Vinci Surgical Systems compared with 110 in Q1’16; FY17 procedure growth view to 12%-14% from 9%-12%
  • Agios Pharmaceuticals (AGIO)1M share Secondary priced at $49.50
  • Audentes Therapeutics (BOLD)2M share Secondary priced at $14.50
  • Globus Medical (GMED) disclosed that it dismissed Grant Thornton as its independent registered public accounting firm
  • Boston Scientific (BSX) has initiated a worldwide study that will evaluate the survival benefit of patients treated with the EMBLEM™ MRI Subcutaneous Implantable Defibrillator (S-ICD) System who are aged 65 and older with a history of prior heart attack, diabetes and moderately reduced left ventricular ejection fraction.
  • Nivalis Therapeutics, Inc. (NVLS) and privately held Alpine Immune Sciences, Inc. announced they have entered into a definitive merger agreement under which Alpine will merge with a wholly-owned subsidiary of Nivalis in an all-stock transaction

Industrials & Materials

  • Textron (TXT) Q1 EPS 46c/$3.18B vs. est. 45c/$3.16B; cuts FY17 adjusted EPS view to $2.40-$2.60 from $2.50-$2.70 (est. $2.58)
  • Air Lease (AL) announced a long-term lease agreement with LOT – Poland – for a new Boeing 787-9 aircraft with Rolls Royce Trent 1000 engines. The aircraft is from ALC’s order book with Boeing and will deliver in 2Q18
  • Akzo Nobel NV (AKZOY) outlined a new strategy to separate its specialty chemicals division, part of the Dutch firm’s efforts to fend off a $24 billion takeover approach from U.S. rival PPG Industries Inc. (PPG)
  • Genesee & Wyoming (GWR) upgraded to buy at Bank America
  • AK Steel (AKS) upgraded to neutral from sell at Citigroup
  • Diana Shipping (DSX) files to sell $70M in common stock

Technology, Media & Telecom

  • IBM Corp. (IBM) shares fell; Q1 EPS $2.38/$18.2B vs. est. $2.35/$18.39B; backs FY17 adjusted EPS ‘at least’ $13.80 vs. est. $13.78; says continues to expect free cash flow to be relatively flat year to year; said Q1 gross margin 44.5% vs. Bloomberg est. 46.89%; Q1 segment revs: strategic imperatives revs $7.8B, cognitive solutions revs $4.06B, global services revs $4.01B, technology services & cloud platforms revs $8.22B and systems revs $1.40B
  • Lam Research (LRCX) Q3 EPS $2.80/$2.15B vs. est. $2.55/$2.13B; sees Q4 EPS $2.88-$3.12 vs. est. $2.65 and revs $2.3B, +/- $100M, above est. $2.19B; 3Q shipments $2.41B and GM’s 46.1%; sees Q4 gross margins 46% +/- 1%
  • Rogers Communications (RCI) Q1 EPS C$0.64/C$3.34B revs vs. est. C$0.57/C$3.37B; said Q1 postpaid net change +60,000, postpaid monthly ARPA C$119.61, Q1 postpaid monthly churn 1.1% and 1Q prepaid net losses 42,000
  • CalAmp (CAMP) Q4 EPS 28c/$86.1M vs. est. 27c/$86.01M; sees Q1 EPS 24c-32c/$84M-$90M vs. est. 28c/$88.15M; sees 1Q Ebitda $11M-$14M
  • Yahoo (YHOO) Q1 EPS 18c/$1.33B vs. est. 14c/$1.23B; Q1 revs ex-tac $833.8M vs. est. $814.0M; 1Q Ebitda $188.3M and said sees VZ deal closing to occur in June 2017
  • ADTRAN (ADTN) Q1 EPS 18c/$170.3M vs. est. 12c/$167.44M
  • Shutterfly (SFLY) authorizes additional $140M for buybacks, says repurchased $20M in Q1

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.

Live Trading

Open an Account

Paper Trading