Morning Preview: May 12th, 2017

eOptionDaily Market Report

U.S stock futures are trading lower (S&P high 2,391.25 and low 2,384.25), with today’s focus on economic data, as monthly retail sales and consumer prices are in the spotlight. Stocks ended lower on Thursday, as the Dow Jones Industrial Average logged its third consecutive down day following weakness in retailers after Macy’s, DDS, and KSS posted disappointing quarterly earnings results. The DJIA ended down 0.1%, while both the S&P 500 Index and Nasdaq Composite Index fell 0.2%, which was well off session lows. Economic data was key for markets yesterday, as jobless claims fell further, but the higher inflation report (PPI) raised expectations that the FOMC may intensify its interest rate rises going forward this year. That’s why today’s CPI inflation report proves important, as another “hot” reading could raise expectations for the Fed to increase rates more than expected this year. Investors are also grappling with lingering concerns over President Donald Trump’s ability to push through his pro-growth agenda, after his abrupt firing of FBI Director James Comey earlier in the week. Crude oil prices are little changed after scoring back to back gains. In Asian markets, The Nikkei Index fell -77 points to 19,883, the Shanghai Index rose 22 points to close at 3,083, and the Hang Seng Index rose 30 points to close at 25,156. In Europe, the German DAX is up about 15 points at 127,725, while the FTSE 100 is up a few points, just shy of 7,400
Events Calendar for Today
·      8:30 AM ET          Consumer Price Index (CPI) MoM for April…est. 0.2%
·      8:30 AM ET          CPI Ex: Food & Energy MoM for April…est. 0.2%
·      8:30 AM ET          Retail Sales MoM for April…est. 0.6%
·      8:30 AM ET          Retail Sales MoM Ex: Autos for April…est. 0.5%
·      9:00 AM ET          Fed’s Evans speaks in Dublin
·      10:00 AM ET       University of Michigan Confidence, May-P…est. 97.0
·      10:00 AM ET       Business Inventories MoM for March…est. 0.1%
·      12:30 PM ET        Fed’s Harker speaks at Drexel University
·      1:00 PM ET          Baker Hughes Weekly Rig Count
Market Closing Prices Yesterday
·      The S&P 500 Index slipped -5.19 points, or 0.22%, to 2,394.44
·      The Dow Jones Industrial Average fell -23.69 points, or 0.11%, to 20,919.42
·      The Nasdaq Composite dropped -5.19 points, or 0.22%, to 6,115.96
·      The Russell 2000 Index declined -9.39 points, or 0.67% to 1,390.20
World News
·      For the week so far, the Dow is looking at 0.4% drop and the S&P 500 at a 0.2% decline, each set to break a three-week string of weekly wins. The Nasdaq Composite is poised for a gain of 0.2%. That would mark the index’s fourth-straight weekly rise, albeit the smallest in the streak.
·      Eurozone industrial production falls 0.1% in March vs. estimated 0.3% rise
Sector News Breakdown
·      Nordstrom (JWN) Q1 EPS 43c/$3.35B vs. est. 27c/$3.34B; Q1 total comps fell (-0.8%) vs. est. 0%; said it expects a 3% to 4% increase in net sales and flat comparable-store sales for the year
·      Hain Celestial (HAIN) delays 10-Q filing
·      Cherokee (CHKE) Q4 EPS 15c/$15M vs. est. 6c/$6.86M
·      China Lodging (HTHT) Q1 EPS 33c/$231.4M vs. est. 25c/$230.08M
·      US Foods (USFD) 40M share Secondary priced at $28.25
·      The Royal Bank of Scotland (RBS) is in talks to settle a multibillion-dollar lawsuit with the U.S. Federal Housing Finance Agency over allegations it mis-sold mortgage-backed securities, Reuters reports, citing comments made by its CEO
·      AstraZeneca Plc (AZN) jumped by the most in more than five months after a key lung-cancer drug proved to be more effective than expected, giving the U.K. company an edge in the competitive market for a new class of oncology treatments
·      Cigna (CI) won judge’s approval to walk away from Anthem (ANTM) merger
·      Akari Therapeutics (AKTX) says its CEO has been placed on administrative leave while review on Edison Report, which contained “material inaccuracies,” is pending.
·      AveXis (AVXS) Q1 EPS loss ($1.07) vs. est. (95c); had $204.5M in cash and cash equivalent at end of March
·      Blue Bird (BLBD) Q2 EPS 8c/$208.7M vs. est. 15c/$195.9M
·      ChromaDex (CDXC) Q1 net sales $4.4M vs. $7.3M YoY citing decreased sales in its ingredients business segment, as a result of dropping largest customer for FY16
·      CymaBay Therapeutics (CBAY) files mixed shelf up to $100M; company’s cash, cash equivalents and marketable securities totaled $23.4M at the end of Q1
·      Staar Surgical Co (STAA) files $200M mixed securities shelf
·      Viveve (VIVE) Q1 EPS loss (57c)/$3.04M; said based on our continued commercial success, we now have an installed base of 259 systems placed worldwide, 42 of which were sold in the first quarter of 2017
Industrials & Materials
·      General Electric (GE) downgraded to Sell from Hold at Deutsche Bank and cut his price target for the shares to $24 from $28
·      Chemours (CC) upgraded to Overweight from Neutral at JPMorgan
·      Darling Ingredients (DAR) Q1 EPS 4c/$880.1M vs. est. 7c/$829.3M; Q1 Ebitda $102.5M vs. est. $107M
·      Navios Maritime Containers (NM) announces $75M private placement
Technology, Media & Telecom
·      Sprint (S) has entered into preliminary talks to merge with T-Mobile (TMUS), Bloomberg reports, citing people familiar with the matter. According to the people, Sprint and SoftBank, Sprint’s largest shareholders, have had “informal” conversations with T-Mobile owner Deutsche Telekom (DTEGY) about a deal
·      Veritone (VERI) 2.5M share IPO priced at $15.00
·      CA Technologies (CA) Q4 EPS 54c/$1.01B vs. est. 49c/$995.84M; sees FY18 EPS of $2.35-$2.40 vs. est. $2.45 and sees FY18 revenue to increase in a range of 2%-3% as reported and 3%-4% in constant currency
·      CyberArk Software (CYBR) Q1 EPS 28c/$46.9M vs. est. 22c/$57.8M; sees 2Q EPS 23c-25c on revs $61M-$62M vs. est. 27c/$62.4M; cuts FY17 adjusted EPS view to $1.18-$1.22 from $1.20-$1.24  (est. $1.24) and raises FY17 revenue view to $268.5M-$271.5M from $267M-$270M (est. $268.75M); also acquires DevOps security firm Conjur for $42M
·      Trade Desk (TTD) shares jumped; Q1 EPS 81c/$53.4M vs. est. 1c/$43.3M; sees 2Q revenue $67M vs. est. $60.7M and year at least $291M, up from prior $270M; sees year Ebitda $78M up from prior view $72M
·      Talend (TLND) Q1 non-IFRS EPS loss (19c)/$32.87M vs. est. loss (16c)/$31.97M; cuts FY17 non-IFRS EPS view to (81c)-(74c) from (75c)-(68c)  while raises FY17 revenue view to $144.3M-$146.3M from $141.5M-$143.5M
·      Upland Software (UPLD) Q1 EPS loss (16c)/$20.8M vs. est. loss (23c)/$20.55M; sees Q2 revenue $21.3M-$22.3M vs. est. $21.56M; sees Q2 adjusted EBITDA $6.2M-$6.8M; backs year rev outlook
·      Apple Inc. (AAPL) said it issued $7 billion in corporate bonds

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