Morning Preview: September 7, 2017

Regal HelpdeskDaily Market Report, Uncategorized

U.S. stock futures are little changed, while Asian stocks recover and European markets are broadly higher after eurozone economic growth figures were revised higher and as markets await the ECB rate decision (7:45 AM EST) and whether they are ready to wind down their bond-buying program. Investors focus remains the tensions surrounding North Korea and President Donald Trump’s debt deal as well as Hurricane Irma, which is headed for Florida. The dollar weakened against most G-10 peers, while gold prices move higher and oil is steady. In Asian markets, The Nikkei Index rose 38 points to end at 19,396, the Shanghai Index declined -19 points to end at 3,365 and the Hang Seng Index fell -90 points to settle at 27,552. In Europe, the German DAX is jumping around 140 points at 12,350, while the FTSE 100 is up about 30 points at 7,380.
 
Treasury prices fell Wednesday, pushing up long-term yields off 10-month lows after President Donald Trump and lawmakers agreed to extend the debt limit for three months to mid-December, giving relief to investors who left the perceived safety of longer-term government paper. Oil prices on Wednesday held on to gains from the day prior on fears of potential damage to U.S. oil production from Hurricane Irma, as well as renewed demand for crude from restarted refineries in the Gulf Coast.
 
Events Calendar for Today
·      8:30 AM EST       Weekly Jobless Claims…est. 245K
·      8:30 AM EST       Continuing Claims…est. 1.945M
·      8:30 AM EST       Nonfarm Productivity, Q2-F…est. 1.3%
·      8:30 AM EST       Unit Labor Costs, Q2-F…est. 0.3%
·      9:45 AM EST       Bloomberg Consumer Comfort Index…prior 53.3
·      10:30 AM EST     Weekly EIA Natural Gas Inventory Data
·      11:00 AM EST     Weekly DOE Inventory Data
·      12:15 PM EST     Fed’s Mester speaks on Economic Outlook and Monetary Policy
·      7:00 PM EST        Fed’s Dudley speaks on Economic Outlook and Monetary Policy
 
Earnings Calendar:
·      Earnings Before the Open: BKS, FCEL, MBUU, VNCE
·      Earnings After the Close: AOBC, BV, CLDR, FNSR, HOFT, MCFT, OKTA, PAY, RDFN, SAIC, TLRD
 
Other Key Events:
·      European Central Bank Decision (ECB) 7:45 AM EST and Press Conference 8:30 AM EST
·      Barclays CEO Energy Power Conference, 9/5-9/7, in NYC
·      Barclays Global Consumer Staples Conference, 9/5-9/7, in Boston
·      Citigroup Global Tech Conference, 9/6-9/7, in NYC
·      Drexel Hamilton Telecom Services Conference, 9/6-9/7, in NYC
·      Goldman Sachs Retail Conference, 9/6-9/7, in NYC
·      Wells Fargo Health Care Conference, 9/6-9/7, in Boston
 
Market Closing Prices Yesterday
·      The S&P 500 Index gained 7.69 points, or 0.31%, to 2,465.54
·      The Dow Jones Industrial Average rose 54.33 points, or 0.25%, to 21,807.64
·      The Nasdaq Composite jumped 17.74 points, or 0.28%, to 6,393.31
·      The Russell 2000 Index advanced 2.54 points, or 0.18% to 1,402.20
 
World News
·      The eurozone economy grew more quickly over the 12 months through June than previously estimated, according to figures released as the eurozone economy expanded by 2.6% in the second quarter, an upward revision from the 2.5% rate of growth Eurostat gave initially
·      China Reserves increased by $10.81 billion from the month before to $3.092 trillion, following a gain of $24 billion in July, figures from the People’s Bank of China showed
 
Sector News Breakdown
Consumer
·      RH (RH) shares up over 30%; Q2 adjusted EPS 65c/$615.3M vs. est. 47c/$609.36M; raises FY17 adjusted EPS view to $2.43-$2.67 from $1.67-$1.94 (est. $2.14) and raises FY17 revenue view to $2.42B-$2.46B from $2.4B-$2.45B; sees the transformation of its business model and its supply chain redesign driving continued growth in 2017 and beyond
·      Watch other home-goods retailers: BBBY, ETH, HOME, PIR, Wayfair on the RH results
·      NCI Building (NCS) Q3 EPS 27c/$469.4M vs. est. 32c/$495.2M; sees Q4 revs $470M-$500M vs. est. $526.7M and lowers year revs to $1.75B-$1.78B from $1.8B-$1.86B and below est. $1.83B
·      Conn’s (CONN) Q2 EPS 26c/$366.6M vs. est. loss (2c)/$372M; 2Q comparable sales fell (-15.1%)
·      Royal Caribbean (RCL) raises dividend to 60c from 48c per quarter
 
Energy
·      The American Petroleum Institute (API) reported that U.S. crude supplies rose 2.8M barrels for the week ended Sept. 1, but gasoline stockpiles fell by -2.5M barrels; data also showed that inventories of distillates edged down by -603,000 barrels
·      The two power plants that supply most of the electricity for the Caribbean islands of Saint-Martin and Saint-Barthelemy are halted after suffering damage from hurricane Irma, Agence France-Presse reports, citing EDF
·      Helmerich & Payne (HP) said Hurricane Harvey didn’t result in material damage to its rigs, facilities; doesn’t expect operating disruptions to have material impact on earnings.
·      Antero Midstream Partners (AM) 10M share Spot Secondary priced at $31.45
·      Matrix Service (MTRX) Q4 EPS loss (4c)/$291.8M vs. es.t loss (3c)/$287M; sees FY EPS 55c -75c on revs $1.23B-$1.33B vs. est. 55c/$1.20B
·      Antero Midstream Partners (AM) files to sell 10M common units for holders
 
Healthcare
·      Insmed (INSM) 12.281M share Secondary priced at $28.50
 
Industrials & Materials
·      Deere & Co. (DE) said it’s acquiring Blue River Technology to increase the machine-learning capabilities of farm equipment, paying $305 million
·      AK Steel (AKS) said it will increase current spot market base prices for all carbon flat-rolled steel products by a minimum of $30 per ton, effective immediately with new orders
·      ABM Industries (ABM) Q3 EPS 51c/$1.32B vs. est. 54c/$1.31B; said is removing prior guidance outlook due to deal
·      Barnes Group (B) reaffirms tear 2017 outlook
 
Technology, Media & Telecom
·      Guidewire (GWRE) Q4 EPS 59c/$181.1M vs. est. 39c/$168.61M; sees Q1 EPS loss (14c-17c) on revs $98M-$102M vs. est. profit 4c/$113.2M; raises year EPS view to 97c-$1.08 from prior 82c-86c view
·      Verint (VRNT) Q2 EPS 61c/$278.2M vs. est. 47c/$269.55M; raises FY17 EPS view to $2.75 at midpoint vs. est. $2.72 (previously saw FY17 EPS view of $2.70 at midpoint) and backs FY17 adjusted revenue view of $1.14B with a range of +/- 2% vs. est. $1.13B
·      Yext (YEXT) Q2 EPS loss (13c)/$40.8M vs. est. loss (14c)/$40.18M; sees Q3 non-GAAP EPS loss (14c)-(12c) on revs $169.5M-$170.5M vs. est. loss (13c)/$43.8M
·      Amazon (AMZN) begins search for second headquarters city in N. America: WSJ reports
·      2U (TWOU) 3.15M share Secondary priced at $49.00
·      FireEye (FEYE) upgraded to Overweight from Equal Weight at Morgan Stanley
·      Descartes Systems (DSGX) Q2 EPS 9c/$57.3M vs. est. 25c/$56M; 2Q adjusted Ebitda $19.8M
·      SeaChange (SEAC) Q2 EPS loss (3c)/$17.2M vs. est. loss (6c)/$17.95M
·      Barstool Sports is launching a live college football show on Facebook Inc.’s (FB) new much talked about video platform Watch
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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