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.
Stock futures are edging higher, as U.S. markets look to make it 4-straight days of gains, the longest streak since February ahead of several Fed speakers and economic data. European markets are trading higher after a round of strong economic data, while news of a suspected suicide bombing at an Ariana Grande concert in Manchester, England, on Monday night that left at least 22 people dead keeps the UK terror threat at severe according to PM May. Oil prices are slipping from one-month highs yesterday ahead of the official OPEC meeting start on Thursday, though the entire commodity complex is under pressure this morning. IN news out of Washington, President Trump, who is traveling overseas and will miss the unveiling of his plan, wants lawmakers to cut $3.6 trillion in government spending over 10 years, balancing the budget by the end of the decade, according to a preview given to reporters on Monday. More than $800 billion would be cut from the Medicaid program for the poor and more than $192 billion from food stamps.
Stocks pushed higher Monday, led by technology, industrials and defensive sectors such as consumer staples and utilities, as markets posted gains for a third straight session (longest such streak since late February). However, despite stocks bouncing, the move came on lighter volume amid lingering concerns about political uncertainty surrounding President Donald Trump’s administration.
In Asian markets, The Nikkei Index fell -65 points to close at 19,613, the Shanghai Index dropped -13 points to settle at 3,061, and the Hang Seng Index rose 11 points to close at 25,403. In Europe, the German DAX is higher by more than 40 points at 12,665, while the FTSE 100 rose over 10 points to trade above 7,500. The big story was in the UK last night as at least 22 people, including children, have died in an explosion outside a concert venue in Manchester, England, which police believe was a suicide bombing attack, injuring another +50 people.
Market Closing Prices Yesterday
· The S&P 500 Index jumped 12.29 points, or 0.52%, to 2,394.02
· The Dow Jones Industrial Average rose 89.99 points, or 0.43%, to 20,894.83
· The Nasdaq Composite spiked 49.92 points, or 0.82%, to 6,133.62
· The Russell 2000 Index advanced 9.81 points, or 0.72% to 1,377.14
· 7:45 AM ET ICSC Weekly Retail Sales
· 8:55 AM ET Johnson/Redbook Weekly Sales
· 9:00 AM ET Fed’s Kashkari speaks with reporters in Minneapolis
· 9:45 AM ET Markit US Manufacturing PMI for April…est. 53.0
· 10:00 AM ET New Home Sales MoM for April…est. (-1.8%) to 610K
· 10:00 AM ET Richmond Fed Manufacturing Index for May…est. 15
· 4:30 PM ET API Weekly Inventory Data
· 7:00 PM ET Fed’s Harker speaks in New York
· Earnings Before the Open: AZO, CBRL, DSW, ECC, EVLV, KIRK, TOL
· Earnings After the Close: BRS, HEI, INTU, OOMA, TCS, TLYS, TTWO, UVV, VSAT
· Authorities warned people to avoid Manchester Arena in the U.K. late Monday following reports of an explosion during a concert. Manchester police said they are responding to a “serious incident” that occurred at the time of a concert by pop singer Ariana Grande. There were a number of confirmed fatalities and others injured (22 killed, over 50 injured)
· OMB Director Mick Mulvaney says President Trump’s tax plan “is in its very early stages” and Trump’s fiscal 2018 budget proposal doesn’t include new details
· Bitcoin is about 61% higher for the month, climbing from around $1,344 at the start of the month to Monday’s fresh record of $2,175.35. Those gains have in part been driven by upbeat regulatory moves, and the SEC’s decision to rethink its rejection of the proposed Winklevoss Bitcoin Trust exchange-traded fund
· IHS Markit said a preliminary reading of French services activity in May rose to 58.0, above the consensus of 56.8, touching a 72-month high, although manufacturing output was at a two-month low. The figures indicated an 11th straight month of private sector growth in France
· Overall, the IHS Markit eurozone PMI held a six-year high in May, at 56.8.
· In Germany, the flash manufacturing PMI hit a 73-month high at 59.4, above an estimate of 58.0, even as services activity was at a three-month low. Separately, the closely watched Ifo business climate survey climbed to 114.6, an all-time high.
Sector News Breakdown
· America’s Car-Mart (CRMT) up 5%; Q4 EPS 66c/$153M vs. est. 65c/$154.94M; Q4 retail unit sales up 1.4% to 47,116 units sold
· JELD-WEN Holding (JELD) files to sell 14M shares of common stock for holders
· Hyatt Hotels (H) registers 28.3M share shelf for holders
· Tarena Int’l (TEDU) Q1 revs 332.7 mln yuan; reaffirms full-year net revenue guidance
· Kirkland (KIRK) Q1 EPS loss (9c) vs. est. loss (6c); reports departure of CFO
· Kosmos (KOS) announces sale of 40M shares of common stock for holders
· Helmerich & Payne (HP) downgraded to Sell from Neutral at Goldman Sachs and cut tgt to $45 from $63 saying the valuation and consensus estimates have downside risk; firm upgradedAtwood Oceanics (ATW) to Neutral from Sell and raised tgt to $8.25
· The fiduciary rule will take effect June 9 without any more delays, said Labor Department Secretary Alexander Acosta in a Wall Street Journal opinion piece published late Monday. “We have carefully considered the record in this case, and the requirements of the Administrative Procedure Act, and have found no principled legal basis to change the June 9 date while we seek public input,” Acosta wrote, as he acknowledged that the rule “as written may not align with President Trump’s deregulatory goals.
· CYS Investments (CYS) filed mixed shelf
· First Bank (FRBA) files to sell $35M in common stock
· Agilent (A) +4%; Q2 EPS 58c/$1.1B vs. est. 48c/$1.05B; sees Q3 EPS 49c-51c on revs $1.06B-$1.08B vs. est. 53c/$1.08B; raises FY17 adjusted EPS view to $2.15-$2.21 from $2.10-$2.16 on (est. $2.16) and raises FY17 revenue view to $4.36B-$4.38B from $4.33B-$4.35B (est. $4.35B)
· Perrigo (PRGO) Q4 EPS $1.24/$1.33B vs. est. $1.81/$1.38B; sees 2017 EPS $4.15-$4.50 on revs $4.6B-$4.8B vs. est. $4.55/$4.82B; files 2016 Form 10-K with restated financial statements; reflects accounting treatment of historical Tysabri royalty stream as a financial asset
· Regeneron (REGN) and Sanofi’s (SNY) Kevzara (sarilumab) wins FDA approval as a treatment for moderately to severely active rheumatoid arthritis
· GlycoMimetics (GLYC) files to sell 6M shares of common stock
· Applied DNA Sciences (APDN) files $25M mixed securities shelf
· Quotient (QTNT) Q4 EPS loss (69c)/$5.53M vs. est. loss (74c)/$4.9M; sees Q1 revenue $5.7M-$6M vs. est. $5.7M
· Bellerophon (BLPH) said Phase II data showed INOpulse met its primary endpoint in idiopathic pulmonary fibrosis patients with pulmonary hypertension (PH-IPF).
Industrials & Materials
· Forterra (FRTA) shares dropped a 9th straight day Monday, and has fallen every day since its release of disappointing Q1 results a week ago today; shares have plunged more than 50% from their price in an IPO last October
· Nordson (NDSN) Q2 EPS $1.35/$496.14M vs. est. $1.31/$471M; sees Q3 EPS $1.51-$1.65 vs. est. $1.60
· Raven Industries (RAVN) Q4 EPS 34c/$93.5M vs. est. 24c/$79.87M; said sees ‘meaningful growth in revenues and operating profit’ in FY18
Technology, Media & Telecom
· Take-Two (TTWO) -7%; announced that its upcoming sequel Red Dead Redemption 2 will now be released for the PS4 and Xbox One in the spring of 2018. (originally announced to be releasing in the fall of 2017) https://goo.gl/EHdLdf
· Advanced Micro Devices Inc. (AMD) CEO Lisa Su pretty much quashed any further chatter that AMD would license some of its graphics chip designs to longtime rival Intel Corp. (INTC) at a tech conference hosted by J.P. Morgan
· Nokia (NOK) +5% and Apple Inc. (AAPL) settled long-running intellectual property disputes and agreed to a multi-year patent license. Financial details weren’t disclosed
· Luxoft (LXFT) Q4 EPS 63c/$204.1M vs. est. 62c/$201.84M; reports adjusted EBITDA $29.2M vs. $26.5M last year; Sees FY18 revenue “at least” $943M vs. est. $938.9M
· Mindbody (MB) files to sell 4.4M shares of common stock