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 inched higher, looking for its first gain in three days, as investors await tomorrow’s Federal Reserve policy decision. The two day FOMC meeting kicks off today, but results will be released tomorrow afternoon, where a second-rate hike of 2017 is widely anticipated. On Monday, the Nasdaq Composite and the S&P 500 marked a second day of losses, dropping 0.5% and 0.1% respectively as Apple Inc. and other major tech names came under pressure again. The Dow industrials snapped a three-session winning streak to finish 0.2% lower. U.S. stocks fell amid a selloff in technology shares that spread from New York to Asia and Europe. Technology down 0.8% after paring early losses, bringing two-day decline to 3.5%, the biggest two-day retreat since Brexit. The price of bitcoin fell as much as 14% yesterday to lows $2,446.20, the biggest intraday decline since May 26, after flirting with $3,000. Today prices are higher by 4%. Oil prices are inching higher, while gold slips a 5th day.
In Asian markets, The Nikkei Index slipped -9 points to settle at 19,898, the Shanghai Index gained 13 points to settle at 3,153 and the Hang Seng Index rose 144 points to close at 25,852. In Europe, the German DAX jumps over 70 points to around 12,770, while the FTSE 100 is higher by a few points at 7,520. The dollar fell against the British pound after a bigger-than-expected gain in U.K. inflation.
Market Closing Prices Yesterday
· The S&P 500 Index slipped -2.38 points, or 0.10%, to 2,429.39
· The Dow Jones Industrial Average fell -36.30 points, or 0.17%, to 21,235.67
· The Nasdaq Composite dropped -32.45 points, or 0.52%, to 6,175.46
· The Russell 2000 Index declined -2.50 points, or 0.18% to 1,419.21
· 6:00 AM ET NFIB Small Business Optimism for May…est. 104.5
· 7:45 AM ET ICSC Weekly Retail Sales
· 8:30 AM ET Producer Price Index (PPI) MoM for May…est. 0.0%
· 8:30 AM ET PPI Ex: Food & Energy MoM for May…est. 0.1%
· 8:30 AM ET PPI Core YoY for May…prior 1.9%
· 8:55 AM ET Johnson/Redbook Weekly Sales
· 4:30 PM ET API Weekly Inventory Data
Other Key Events:
· JPMorgan 7th Annual Cloud & Beyond Conference, 6/13, in NY
· Morgan Stanley Financials Conference, 6/13-6/14, in NY
· Citigroup Industrials Conference, 6/13-6/14, in Boston
· Goldman Sach’s 38th Annual Global Healthcare Conference, 6/13-6/14, in CA
· Piper 37th Annual Consumer Conference, 6/13-6/14, in NY
· William Blair Annual Growth Stock Conference, 6/13-6/15, in Chicago
· Eurozone ZEW survey expectations for June
· German ZEW survey results for June
· The American Diabetes Association (ADA) annual meeting in Sand Diego, 6/9-6/13
· The National Federation of Independent Business (NFIB) said its small-business optimism index held steady at a seasonally adjusted 104.5 in May from the prior month. This is slightly above the consensus forecast of 104
· German economic sentiment dropped in June, as the ZEW’s measure of economic expectations fell to 18.6 points from 20.6 points in May, which is below the indicator’s long-term average of 23.9…estimates had forecast a slight increase in the expectations component to 21.5 points
· U.K. inflation hit 2.9% in May, the fastest rate in four years, as consumer prices continue to run much higher than the Bank of England’s target. Tuesday’s reading from the Office for National Statistics was above the 2.7% estimate from a FactSet consensus survey,
Sector News Breakdown
· JetBlue Airways Corp. (JBLU) prelim May traffic rose 3.8% from May 2016, on a capacity increase of 3.7%; load factor for May 2017 was 84.7%, an increase of 0.1%; preliminary completion factor was 97.4% and its on-time (1) performance was 67.2%; reaffirms Q2 Rasm forecast
· Cavco Industries (CVCO) Q4 EPS $1.19 on revenue $198.0M
· Essendant (ESND) says Robert B. Aiken, Jr. notified company of his resignation as President, CEO and board member
· U.S. Silica Holdings (SLCA) approved a $225M project for the construction of a new, state-of-the-art frac sand mine and plant in West Texas to serve the rapidly-growing Permian Basin. The new facility is expected to produce approximately 4M tons annually
· Cobalt International Energy (CIE) announced that its Board of Directors has approved a 1-for-15 reverse stock split
· Invesco Ltd. (IVZ) reported preliminary month- end assets under management (AUM) of $859.0B, an increase of 2.1% month over month. The increase was driven by favorable market returns, higher Money Market AUM, PowerShares QQQs inflows, foreign exchange, and net long-term inflows.
· AllianceBernstein L.P. (AB) announced that preliminary assets under management increased to $512B during May 2017 from $504B MoM; the 1.6% increase was the result of market appreciation and positive firm wide net flows.
· Manning & Napier (MN) announces preliminary AUM $28.7B as of May 31 with $29.2B at April 30 and $31.6B at March 31
· Moelis (MC) declares special dividend of $1.00 per share
· Deutsche Bank AG (DB) will pay $170 million to settle an investor lawsuit alleging it acted with other banks to manipulate the euro interbank offered rate, or Euribor.
· S&P MidCap 400 constituent Everest Re (RE) will replace Mead Johnson Nutrition (MJN) in the S&P 500
· S&P SmallCap 600 constituent Pinnacle Financial Partners (PNFP) will replace Everest Re Group in the S&P MidCap 400
· Armada Hoffler Properties (AHH) will replace Pinnacle Financial Partners in the S&P SmallCap 600
· Merck (MRK) pausing enrollment in two Keytruda multiple myeloma studies due to imbalance in patient deaths.
· ANI Pharmaceuticals (ANIP) files $350M mixed securities shelf
· Adamas Pharmaceuticals (ADMS) said that it phase III Ease LID clinical trial of ADS-5102 showed reduced dyskinesia and off time at 6 months in Parkinson’s disease patients with Levodopa-induced dyskinesia
· Acceleron Pharma Inc. (XLRN) announced that the DART Phase 2 study of dalantercept plus axitinib did not achieve its primary endpoint in advanced renal cell carcinoma (RCC).
Industrials & Materials
· Genesee & Wyoming Inc. (GWR) said traffic in May 2017 was 275,054 carloads, an increase of 42,307 carloads, or 18.2%, compared with May 2016. G&W’s same-railroad traffic in May 2017 was 237,945 carloads, an increase of 5,198 carloads, or 2.2%, compared with May 2016. G&W’s traffic in Q2 was 535,494 carloads, an increase of 72,775 carloads, or 15.7%, vs. with Q2 last year
· Star Bulk Carriers Corp. (SBLK) announced that it has entered into a definitive agreement to acquire a Supramax dry bulk carrier from an unaffiliated third party
· Commercial Metals (CMC) upgraded to buy at Citigroup
Technology, Media & Telecom
· Science Applications (SAIC) Q1 EPS $1.08/$1.10B vs. est. $1.10/$1.12B; 1Q free cash flow $84M, net new bookings $1.3B and 1Q book to bill ratio 1.2%
· Imax Corp.(IMAX) said it plans to lay off 14% of its global workforce in a bid to trim costs; cuts affect 100 positions including those in China at a cost of $15M in 2017; also plans to buy back another $200M in shares after a $200M share buyback plan wraps up this month.
· Tableau (DATA) upgraded to Buy from Neutral at Goldman Sachs
· Synaptics (SYNA) announced that it has signed a definitive agreement to acquire Conexant Systems, a technology leader in voice and audio processing solutions for the smart home. Synaptics also announced the signing of a definitive agreement to acquire the Multimedia Solutions Business of Marvell Technology Group (MRVL), With the acquisitions, Synaptics expects gross margins to be accretive immediately and to increase its total addressable market opportunity by 38 percent or $2.8B billion to $10.3B by 2020