Morning Preview: May 5th, 2017

eOptionDaily Market Report

Stock futures are little changed, trading a in a narrow range overnight (S&P high 2,387 where it is now and low 2,379) ahead of the monthly jobs report at 8:30 AM EST (est. 190K). Oil prices are little changed after a tumultuous slide yesterday, while gold partially recovers from its recent decline. With one trading session left in the week, the Nasdaq is poised to gain nearly 0.5%, while the S&P 500 is up 0.2% and the DJIA is barely higher. Outside of the jobs data, there are six Federal Reserve officials are scheduled to speak on Friday. Dow component IBM slides after Berkshire’s Buffett told CNBC in an interview Thursday that his company has sold about one-third of its stake in the company.

Stocks ended little changed on Thursday, highlighted by a tumbling energy sector (WTI crude fell around 5% to lowest level since November) and commodities in general, while House Republicans took a step to begin rolling back Dodd-Frank reforms and Obamacare, passing a bill by a narrow margin. Crude sank on expectations for a recovery in Libyan production, along with rising U.S. output.

Treasury prices fell Thursday, allowing yields to extend their rise to two days, ahead of the jobs data today, as the yield on the 10-year note moved up 4.5 bps to 2.354%, the highest level since April 10. The yield for the 2-year ticked 1.4 bps higher to 1.31%, marking the rate-sensitive note’s highest level since March 17, and the 30-yr rose 4 bps to around 3%.

In Asian markets overnight, The Nikkei Index remain closed, the Shanghai Index fell -24 points to close at 3,103, and the Hang Seng Index fell -207 points to settle at 24,476. In Europe, the German DAX is down around -50 points at just under 12,600, while the FTSE 100 is up a few points around the 7,250 level. European stocks drop on Friday, easing back from an almost 21-month high as investors take a cautious approach ahead of the French election and the latest U.S. jobs data.

Market Closing Prices Yesterday

  • The S&P 500 Index inched higher 1.39 points, or 0.06%, to 2,389.52
  • The Dow Jones Industrial Average fell -6.43 points, or 0.03%, to 20,951.47
  • The Nasdaq Composite gained 2.79 points, or 0.05%, to 6,075.34
  • The Russell 2000 Index dipped -2.08 points, or 0.15% to 1,388.85

Events Calendar for Today

  • 8:30 AM ET          Change in Nonfarm Payrolls for April…est. 190K
  • 8:30 AM ET          Change in Private Payrolls for April…est. 190K
  • 8:30 AM ET          Change in Manufacturing Payrolls for April…est. 10K
  • 8:30 AM ET          Unemployment Rate…est. 4.6%
  • 8:30 AM ET          Average Hourly Earnings MoM for April…est. 0.3%
  • 8:30 AM ET          Average Weekly Hours for April…est. 34.4 hours
  • 1:00 PM ET          Baker Hughes Weekly Rig Count
  • 3:00 PM ET          Consumer Credit for March…est. $14.0B

Earnings Calendar:

  • Earnings Before the Open: AEE, CI, CNP, CTSH, HCN, MCO
Sector News Breakdown


  • Monster Beverage (MNST) Q1 EPS 31c/$742.1M vs. est. 32c/$742.43M
  • Herbalife (HLF) Q1 EPS $1.24/$1.1B vs. est. 89c/$1.05B; reports volume point growth of 1% compared to last year; raises 2017 adjusted EPS outlook to $4.05-$4.45 from $3.65-$4.05
  • Monro Muffler (MNRO) Q4 EPS 29c/$252M vs. est. 40c/$261.8M; Q4 comparable sales -8%; sees 2018 EPS $2.10-$2.30, est. $2.30
  • Shake Shack (SHAK) Q1 EPS 10c/$76.7M vs. est. 8c/$74.7M; Q1 comps down (-2.5%) vs. est. 0.2%; sees FY revenue $351M-$355M from prior $349M-$353M (est. $356.1M; cuts FY comparable sales 0%, saw +2% to +3%
  • Del Taco (TACO) Q1 EPS 10c/$105.3M vs. est. 9c/$105.21M; Q1 system-wide comparable restaurant sales growth of 4.2% and company-operated comp restaurant sales growth of 4.0%; backs year EPS and revenue outlook
  • El Pollo Loco (LOCO) Q1 EPS 16c/$99.8M vs. est. 14c/$98.72M; system-wide comparable restaurant sales declined 0.3%, including a 0.4% decrease for company-operated restaurants; backs FY16 EPS 65c-69c vs. est. 66c
  • Chuy’s (CHUY) Q1 EPS 27c/$86.9M vs. est. 27c/$87.96M; Q1 comparable restaurant sales decreased 0.7%; backs FY17 EPS $1.11-$1.15
  • Wingstop (WING) Q1 EPS 22c/$26.6M vs. est. 16c/$24.17M; system-wide restaurant count increased 18.1% to 1,031 worldwide locations; sees FY17 EPS growth of 19%-21% and sees FY17 System-wide unit growth of approximately 13-15%
  • DeVry (DV) Q3 EPS 70c/$452.1M vs. est. 65c/$458.2M; sees Q4 revenue down 3%-44% vs. last year; Chamberlain revenue increased 2.4 percent to $124.9 million, while revenue for the medical and veterinary schools decreased 5.7 percent to $83.2 million
  • Callaway Golf (ELY) Q1 EPS 27c/$308.9M vs. est. $283.6M; sees 2Q sales $290M-$300M, vs. est. $266.2M and boosts yearly forecast
  • Red Rock Resorts (RRR) Q1 EPS 30c/$417.7M vs. est. 33c/$403.6M; Q1 Ebitda $135.9M
  • Beacon Roofing (BECN) Q2 EPS loss (4c)/$870.7M vs. est. loss (5c)/$811.02M
  • Planet Fitness (PLNT) files to sell 16.1M shares of common stock for holders


  • EnerSys (ENS) Q4 EPS $1.28/$626.8M vs. est. $1.21/$606.18M
  • Parsley Energy (PE) Q1 EPS 15c vs. est. 8c; Q1 production 54.80 mboe/d; raises production view


  • Bankrate (RATE) Q1 EPS 17c/$118.7M vs. est. 15c/$116.31M; sees FY revenue $500M-$515M vs. est. $504.8M and year Ebitda $122M-$129M vs. est. $125.5M
  • LendingClub (LC) Q1 EPS loss (2c)/$124.5M vs. est. loss (3c)/$122.8M; sees FY17 revenue $575M-$595M vs. consensus $590.31M; sees Q2 revenue $132M-$137M vs. est. $137.34M; 1Q originations fell 1% q/q to $1.96B while revenue beat
  • Goldman Sachs BDC (GSBD) Q1 net investment income per share 49c vs. est. 50c; Q1 Total investment income $32.2M
  • MFA Financial (MFA) files to sell 20M shares of common stock
  • ProAssurance (PRA) Q1 EPS 62c/$222.99M vs. est. 54c/$213.59M.
  • KKR Real Estate Finance (KREF)25M share IPO priced at $20.50


  • Cigna (CI) Q1 EPS $2.77/$10.3B vs. est. $2.45/$10.1B; raises year EPS to $9.25-$9.75 from prior $9.00-$9.50 (est. $9.52) and sees rev growth up to 3%-4% from prior 2%-3%
  • Allscripts (MDRX) Q1 EPS 13c/$415M vs. est. 13c/$415.11M; sees FY17 EPS growth of 10%-15% and sees FY17 revenue $1.71B-$1.74B vs. consensus $1.72B; Q1 bookings $286M
  • BioMarin (BMRN) Q1 GAAP EPS loss (9c)/$304M vs. est. loss (29c)/$288.98M; sees FY loss $140M-$180m, had seen loss $140M-to profit $180M (est. loss $159.6M); reaffirms year revs
  • Endologix (ELGX) cuts FY17 EPS to (86c)-(83c) from (76c)-(70c), vs. consensus (60c); backs FY17 revenue $193M-$200M
  • Esperion (ESPR) says current cash sufficient to fund operations through the announcement of topline results from all pivotal Phase 3 safety and efficacy studies and into early 2019; Q1 cash, equivalents and investment securities $207.8M vs. $242.5M at Dec. 31
  • Juno (JUNO) Q1 EPS loss (71c)/$19.3M vs. loss (70c)/$16.0M
  • Mettler-Toledo (MTD) Q1 EPS $3.34/$594.6M vs. est. $3.09/$571.34M; sees Q2 adjusted EPS $3.85-$3.90 vs. est. $3.60 and local currency sales growth in the range of 8% to 9%; raises FY17 adjusted EPS view $16.95-$17.15 from $16.55-$16.75
  • PerkinElmer (PKI) Q1 EPS 55c/$514M vs. est. 54c/$506.78M; sees FY adjusted EPS $2.80-$2.90, vs. est. $2.82
  • Regulus (RGLS) shares dropped over 30%; announced a corporate restructuring plan to streamline its operations as it focuses on its most promising discovery and development programs.
  • Select Medical (SEM) Q1 EPS 21c/$1.11B vs. est. 20c/$1.12B
  • Zafgen (ZFGN) says ZGN-1061, a second-generation MetAP2 inhibitor in severe and complicated obesity, was well tolerated and safe in a Phase 1 trial, and showed improvements in metabolic parameters

Industrials & Materials

  • The most actively traded iron-ore futures contract opened down 6.8% on the Dalian Commodity Exchange, after tumbling by the 8% daily limit on Thursday
  • Fluor (FLR) Q1 EPS 43c/$4.84B vs. est. 67c/$4.83B; lowers 2017 EPS outlook to $2.25-$2.75 from $2.75-$3.25 (est. $2.90); consolidated segment profit for the quarter was $133 million, compared to $241 million a year ago
  • Air Lease (AL) Q1 revs $360.2/$1.33 vs. est. $369.5M/87c
  • Alexander & Baldwin (ALEX) Q1 EPS 9c w/items/$3.2M vs. est. 22c/$107.81M
  • Genpact (G) Q1 EPS 31c/$623.0M vs. est. 32c/$619.44M; backs FY17 adjusted EPS view of $1.53-$1.57 and raises FY17 revenue view to $2.63B-$2.70B from $2.61B-$2.68B
  • Kratos Defense (KTOS) Q1 EPS loss (1c)/$167.8M vs. est. loss (6c)/$159.53M; book to bill ratio in the first quarter of 2017 was 0.9 to 1.0; total backlog at the end of the first quarter of 2017 was approximately $878.3M; sees 2Q revs $170M-$176M vs. est. $171.8M
  • Stericycle (SRCL) Q1 EPS $1.09/$892.4M vs. est. $1.03/$874.3M
  • Global Brass and Copper (BRSS) Q1 EPS 71c/$393.3M vs. est. 62c/$344.1M

Media & Telecom

  • CBS Corp. (CBS) Q1 EPS $1.04/$3.34B vs. est. 96c/$3.27B; Q1 Cable Networks revenues of $543M for increased 3% from $525M; Q1 Publishing revenues of $161M, up 11%; Q1 Entertainment revenue down 9% to $2.35B
  • Live Nation (LYV) Q1 EPS loss (22c)/$1.41B vs. est. loss (33c)/$1.26B
  • National CineMedia (NCMI) cuts FY17 revenue view to $422M-$442M from $445M-$465M (est. $457.91M); updates its outlook and expects total revenue to be down 6% to 1% and Adjusted OIBDA to be down 12% to 6% from the full year 2016; Q1 EPS/revs missed views
  • Sierra Wireless (SWIR) Q1 EPS 24c/$161.8M vs. est. 16c/$155.94M; sees Q2 EPS 24c-32c on revs $165M-$175M vs. est. 21c/$164.25M


  • Activision Blizzard (ATVI) Q1 EPS 31c/$1.20B vs. est. 21c/$1.09B; sees 2017 EPS $1.88, saw $1.85, and est. $1.95 and sees year revs $6.33B from $6.30B and est. $6.40B; had 431M Monthly Active Users (MAUs) in 1Q and 41M MAUs in 1Q (Activision had 48M MAUs in 1Q)
  • Applied Optoelectronics (AAOI) Q1 EPS $1.10/$96.2M vs. est. 98c/$94.96M; sees Q2 EPS $1.09-$1.19 on revs $106M-$112M vs. est. 96c/$98.06M
  • Apptio (APTI) Q1 EPS loss (8c)/$43.9M vs. est. (12c)/$42.5M; sees 2Q revenue $43.5M-$44.0M, vs. est. $43.5M and year revs $179.0M-$182.0M vs. est. $180.0M
  • Arista Networks (ANET) Q1 EPS 93c/$335.5M vs. est. 86c/$326.17M; sees 2Q revenue $354M-$364M vs. est. $343.8M
  • Carbonite (CARB) Q1 EPS 9c/$59.1M vs. est. 7c/$56.76M; sees Q2 EPS 11c-13c on revs $58.0M-$62.0M vs. est. 16c/$59.46M
  • GoDaddy (GDDY) 24M share Secondary priced at $38.50
  • Ovid Technologies (OVID) 5M share IPO priced at $15.00
  • Warren Buffett said he sold about 1/3 of his IBM Stake in 1Q, 2Q, CNBC reported on Twitter, citing interview with Warren Buffett (when it got above $180 he said); still owns more than 50M shares of stock
  • Imperva (IMPV) Q1 EPS 9c/$72.3M vs. est. loss (4c)/$68.19M; says Services revenue growth of 35% was driven by the 64% year-over-year increase in subscription revenue; booked 142 deals with a value over $100,000, an increase of 20% compared to 118; raises year outlook
  • Infinera (INFN) Q1 EPS loss (15c)/$175.5M vs. est. loss (14c)/$172.7M; 1Q adjusted gross margin 40.3%, est. 40.53%
  • MercadoLibre (MELI) Q1 EPS $1.10/$273.9M vs. est. 79c/$246.8M; Q1 Gross Merchandise Volume was $2.33B, a 31.0% increase in USD and a 61.4 % increase on an FX neutral basis
  • MuleSoft (MULE) Q1 EPS loss (6c)/$60.9M vs. est. loss (11c)/$57.97M; sees Q2 adjusted EPS loss roughly (13c)/$63M-$64M vs. est. loss (14c)/$61.19M
  • WageWorks (WAGE) Q1 EPS 46c/$125M vs. est. 42c/$122.09M
  • Workiva (WK) Q1 EPS loss (4c)/$51.9M vs. es.t loss (15c)/$50.67M; sees Q2 EPS loss (20c)-(21c), on revs $48.1M-$48.6M vs. es.t loss (20c)/$49.5M
  • Zendesk (ZEN) Q1 EPS loss (5c)/$93M vs. est. loss (6c)/$92.42M; raises FY revenue to $417M-$425.0M from $415M-$245M vs. est. $420.0M and Q2 revs $98M-$100M vs. est. $99.8M
  • Zillow (ZG) Q1 adjusted EPS 11c/$245.8M vs. est. 6c/$236.94M; sees Q2 revenue $257M-$262M vs. consensus $259.25M; sees FY17 revenue $1.05B-$1.065B vs. est. $1.06B
  • Zynga (ZNGA) Q1 EPS 3c/$194.3M vs. est. 2c/$188.1M; sees 2Q revenue $200M vs. est. $199.8M; 1Q Ebitda $29.8M vs. est. $19.9M and avg MAUs 72M, up 15% q/q, up 5% y/y

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 conten

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