Morning Preview: April 21st, 2017

eOptionDaily Market Report

Stock futures are little changed globally, flat in the U.S. while Asia (outside of Japan) and Europe are also mixed. Fundamentals grabbed headlines this week as the first full week of quarterly earnings is in the books, mixed with large cap Dow components mostly disappointing this week. But going into the weekend, macro factors will once again take center-stage with the first round of the French presidential election coming up on Sunday, on top of escalating tensions in Syria and North Korea. U.S. stocks rose for the first time in three days on Thursday as financial, material and industrial shares climbed reversing day earlier declines. The Nasdaq Composite surged 0.9% to come within about 11 points at its highest point from record highs reached earlier this month. In Asian markets overnight, The Nikkei Index gained 190 points to settle at 18,620, the Shanghai Index gained a point to finish at 3,173, and the Hang Seng Index fell -14 points to close at 24,042. In Europe, the German DAX is up around 20 points at 12,045, while the FTSE 100 is down only a few points around the 7,110 level.

Market Closing Prices Yesterday

  • The S&P 500 Index jumped 17.67 points, or 0.76%, to 2,355.84
  • The Dow Jones Industrial Average rose 174.22 points, or 0.85%, to 20,578.71
  • The Nasdaq Composite spiked 53.74 points, or 0.92%, to 5,916.78
  • The Russell 2000 Index advanced 17.02 points, or 1.24% to 1,384.15

Events Calendar for Today

  • 9:30 AM ET          Fed’s Kashkari participates in Q&A in St. Paul Minnesota
  • 9:45 AM ET          Markit US Manufacturing PMI, Apr-P…est. 53.8
  • 9:45 AM ET          Markit US Services PMI, Apr-P…est. 53.2
  • 10:00 AM ET       Existing Home Sales MoM for March…est. 5.6M
  • 1:00 PM ET          Baker Hughes Weekly Rig Count

Earnings Calendar:

  • Earnings Before the Open: COL, GE, HON, IPG, KSU, MAN, STI, SLB, SWK, WBC

World News

  • The U.S. Justice Department is considering filing criminal charges against WikiLeaks founder Julian Assange, according to multiple reports. CNN reported that U.S. officials have prepared charges related to the site’s publication of classified U.S. government documents. In a separate report, the Washington Post said Assange and members of the organization could face charges including conspiracy, theft of government documents and violations of the Espionage Act.
  • The eurozone’s current-account surplus rose sharply in February to hit a record high. The surplus hit EUR37.9 billion ($40.62 billion), compared with EUR26.1 billion in January, the data showed
Sector News Breakdown

Consumer

  • Skechers (SKX) Q1 EPS 60c/$1.073B vs. est. 54c/$1.06B; said Q1 sales represent a new quarterly record and the first time exceeded $1 billion in quarterly sales; 1Q gross margin 44.4%; Q1 total comp sales +2.9% vs. est. +3.7%; sees Q2 EPS 42c-47c on revs $950M-$975M vs. 47c/$962.1M
  • Mattel (MAT) Q1 EPS loss (32c)/$735.6M vs. est. loss (17c)/$804.82M; 1Q worldwide gross sales for Girls & Boys Brands down 16% YoY vs est. down 7.1%; Worldwide gross sales for Barbie brand down 13% as reported
  • Hawaiian Holdings (HA) Q1 EPS $1.04/$614.19M vs. est. 85c/$610.72M; 1Q available seat miles 3.50 and 1Q PRASM $11.89; sees Q2 ASMs up 3%-5% YoY; Raises guidance for available seat miles (ASMs) and gallons of jet fuel to be consumed for 2017
  • Stanley Black & Decker (SWK) Q1 EPS $1.29/$2.81B vs. est. $1.20/$2.75B; raises FY17 adj. EPS view to $7.08-$7.28 from prior $6.98-$7.18 and est. $7.11
  • Bebe Stores (BEBE) said it plans to close all stores by the End of May; expects to record a $20M impairment charge, net of deferred rent and other credits, in 3Q, 4Q
  • Robert Half (RHI) Q1 EPS 62c/$1.287B vs. est. 58c/$1.28B

Energy

  • Oil prices set for a decline this week – investors watching whether OPEC will extend ongoing production cuts into the second-half of 2017, a move which could offset rising U.S. output. Saudi Arabia Energy Minister Kalid al-Falih said Thursday
  • Frac sand makers Fairmount Santrol (FMSA) and S. Silica (SLCA) downgraded to Equal-weight at Barclays

Financials

  • Visa (V) Q2 EPS 86c/$4.5B vs. est. 79c/$4.31B; 2Q payments volume growth +37%; 2Q payment vol. $1.73T; 2Q cross-border volumes +132%; reports new $5.0B share buyback program; sees year net rev growth at high end of 16%-18% range
  • E*TRADE (ETFC) Q1 EPS 49c/$553M vs. est. 39c/$532.9M; Q1 net interest income $319M, DARTS 207k vs 188k QoQ; average commission per trade $9.87 vs $10.42 QoQ; had $335.7B in total customer assets at 1Q end vs $311.3B QoQ
  • SunTrust (STI) Q2 EPS 87c vs. est. 84c; Q1 NIM 3.09% above views; net charge-offs $112M and provisions for credit losses $119M
  • Federal Reserve levies fines against Deutsche Bank AG (DB) for failures in Volcker Rule compliance and unsafe practices in foreign exchange market. Fed fines company $136.9M in FX action, $19.7M in separate Volcker sanction
  • Independent Bank (INDB) Q1 EPS 78c (in-line); 1Q tangible book value per share $23.92; 1Q net interest income $60.2M and 1Q provision for loan losses $0.6M
  • FCB Financial (FCB) Q1 core EPS 64c vs. est. 63c; 1Q net interest margin 3.24%, 1Q return on avg. equity 15.6%, 1Q return on avg. assets 1.72% and 1Q provision for loan losses $1.64M
  • EastGroup (EGP) Q1 FFO  99c vs. est. 98c; sees FY FFO/share $4.18-$4.28 vs. est. $4.21
  • First Internet Bancorp (INBK) Q1 EPS 43c vs. est. 44c; Q1 NII $11.5M vs. $9.1M last year; NIM 2.50% vs. 2.78%
  • Associated Banc-Corp. (ASB) Q1 EPS 35c vs. est. 32c; Q1 loan loss provision $9M vs. $20M a year ago; Q1 net charge offs of $6M; 1Q net interest margin 2.84%
  • National Bank (NBHC) Q1 EPS 30c vs. est. 23c; Q1 return on average tangible assets was 0.81% vs. 0.95% in Q4
  • Merchant Bancshares (MBVT) Q1 EPS 52c vs. est. 58c; Q1 loan loss provision was $500K vs. $205K in the same period in 2016

Healthcare

  • Atara Biotherapeutics Inc. (ATRA) reported positive results from an early stage clinical trial of its multiple sclerosis drug; said a Phase I trial showed its ATA188 drug was well tolerated in MS patients and that half experienced improvements in their symptoms.
  • Humana (HUM) downgraded to Hold at Jefferies
  • Quest Diagnostics (DGX) upgraded to Outperform at Raymond James
  • VBL Therapeutics (VBLT) announced that the Independent Data Safety Monitoring Committee (DSMC) met to conduct its second safety review of the Phase 3 GLOBE Study investigating ofranergene obadenovec (VB-111) in recurrent glioblastoma (rGBM)

Industrials & Materials

  • General Electric (GE) Q1 EPS 21c/$27.7B vs. est. 17c/26.41B; backs FY17 EPS view of $1.60-$1.70 (est. $1.63) and sees organic growth of 3%-5% in FY17
  • Honeywell (HON) Q1 EPS $1.71/$9.49B vs. est. $1.62/$9.32B; raises low end of 2017 EPS view by 5c to $6.90-$7.10 from prior $6.85-$7.10; sees Q2 sales $9.7B-$9.9B vs. est. $9.86B and year sales $38.6B-$39.5B vs. est. $39.2B
  • Wabco (WBC) Q1 EPS $1.47/$747.3M vs. est. $1.43/$720.3M; backs FY17 performance EPS view $5.55-$6.05
  • Rockwell Collins (COL) Q2 EPS $1.27/$1.34B vs. est. $1.30/$1.33B; sees year EPS $5.95-$6.15
  • Werner Enterprises (WERN) Q1 EPS 22c/$501.2M vs. est. 20c/$491.8M
  • Marten Transport (MRTN) Q1 EPS 25c/$173.2M vs. est. 21c/$169.57M
  • Covenant Transportation (CVTI) Q1 EPS 3c/$158.7M vs. est. 2c/$155M
  • Clearwater Paper (CLW) Q1 EPS 64c/$437.5M vs. est. 86c/$433.3M; sees Q2 EPS 44c-63c on sales growth 0%-1% vs. est. 52c/$724.57M

Technology, Media & Telecom

  • NCR Corp. (NCR) Q1 EPS 56c/$1.48B vs. est. 46c/$1.46B; sees 2Q EPS 72c-77c on revs $1.59B-$1.62B vs. est. 78c/$1.63B; maintaining 2017 cash flow guidance; raises year EPS and revenue guidance and announces new $300M share buyback authorization
  • Maxim Integrated (MXIM) Q3EPS 56c/$581.2M vs. est. 52c/$575.9M; sees Q4 EPS 59c-65c on revs $590M-$630M vs. est. 58c/$597.9M; sees 4Q gross margin 65%-67% vs. est. 64.8% after Q3 gross margins 65.2% vs. est. 64.06%
  • Proofpoint (PFPT) Q1 EPS 12c/$113.3M vs. est. 9c/$110.58M; reports Q1 billings of $137.4M, up 40% YoY; sees FY17 56c-59c on revs $496M-$500M vs. est. 52c/$492.15M
  • Manhattan Associates (MANH) Q1 EPS 42c/$143.5M vs. est. 38c/$146.49M; sees FY17 adjusted EPS $1.89-$1.93 on revs $606M-$620M vs. est. $1.91/$624.57M
  • CAI International (CAI) Q1 EPS 27c/$81.5M vs. est. 13c/$78.69M
  • Electronics for Imaging (EFII) Q1 EPS 55c/$228.7M vs. est. 55c/$239.5M

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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