Thursday, October 5, 17
It’s a quiet morning for stock futures, holding steady ahead of speeches by policy makers including San Francisco Fed President John Williams and ECB executive board members Praet and Coeure. The S&P futures have traded in a very tight range overnight, with a high of 2,537 and low 2,534.50 as volumes have dried up this week. Stocks advanced modestly on Wednesday, with major benchmarks notching the latest in a series of record finishes after a round of strong economic data. The S&P 500, Nasdaq Composite and Dow industrials each posted very small gains, but it was enough to extend their winning streaks. Stocks were buoyed after a positive reading on U.S. service sector activity in the ISM’s nonmanufacturing index. Today, markets await weekly jobless claims (ahead of the nonfarm payroll report tomorrow morning), trade balance and factory orders, along with a few Fed speakers. In Asian markets, The Nikkei Index settled higher by 1 point at 20,628, the Shanghai Index remains closed for its week-long holiday and the Hang Seng Index was also closed. In Europe, the German DAX is down around -30 points at 12,940, while the FTSE 100 is up a few points around 7,475. European stocks drop, heading for first back-to-back losses in a month, though Spanish stock rebound from its biggest loss in over a year following fallout from an independence vote from the Catalan region that turned violent.
· 7:30 AM EST Challenger Job Cuts YoY for September
· 8:30 AM EST Weekly Jobless Claims…est. 265K
· 8:30 AM EST Continuing Claims…est. 1.95M
· 8:30 AM EST Trade Balance for August…est. (-$42.7B)
· 9:15 AM EST Fed’s William speaks at Community Banking Conference
· 9:45 AM EST Bloomberg Consumer Comfort Index…prior 51.6
· 10:00 AM EST Factory Orders MoM for August…est. 1.0%
· 10:00 AM EST Durable Goods Orders, Aug-F…est. 1.7%
· 10:00 AM EST Fed’s Harker speaks at Workforce Conference
· 10:30 AM EST Weekly EIA Natural Gas Inventory Data
· 4:30 PM EST Fed’s George speaks at Workforce Conference
Market Closing Prices Yesterday
· The S&P 500 Index gained 3.16 points, or 0.12%, to 2,537.74
· The Dow Jones Industrial Average rose 19.97 points, or 0.09%, to 22,661.64
· The Nasdaq Composite gained 2.91 points, or 0.04%, to 6,534.63
· The Russell 2000 Index declined -4.20 points, or 0.28% to 1,507.76
· Australian Retail sales fell 0.6% in August from July, compared with a 0.3% rise expected
· Australia posted a seasonally adjusted trade surplus of A$989 million in August, compared with a surplus of A$808 million in July. The value of exports rose 1.0% in August, while import growth remained flat.
Sector News Breakdown
· SeaWorld Entertainment (SEAS) shares up 6%; follows a report that Merlin Entertainment, the owner of Legoland had approached the troubled water park operator about a sale. The report said Merlin is interested in just part of SeaWorld — and a split of the water park by venues may not be possible https://goo.gl/HRgBU6
· Zumiez (ZUMZ) September sales up 12.6% to $84.4M and said Sept comp sales increased 9.3% vs. Bloomberg est. 2.9% (vs. 6.3% a year ago); sees 3Q net sales $241M-$243M vs. prior view $236M-$241M and est. $237M; raises Q3 EPS to 45c-48c from 43c-48c (est. 47c
· Resources Connection (RECN) Q1 EPS 7c/$141.2M vs. est. 12c/$140.3M (said EPS includes 5c per share for severance and acquisition related costs); Q1 Ebitda $7.9M
· 8Point3 Energy (CAFD) Q3 EPS 27c/$27.7M vs. est. $25.8M; Q3 adjusted Ebitda $53.5M; sees Q4 revenue $12M-$15M vs. est. $14.57M and sees Q4 adjusted EBITDA of $22M to $25M
· Carrizo Oil & Gas (CRZO) backs Q3 production guidance despite Hurricane Harvey impact; currently expects total Q3 production to be above the midpoint of its previously-issued guidance range of 53,467-54,733 Boe/d. The company is revising its Q3 crude oil production guidance to 34,700-34,900 Bbls/d from 35,400-35,800 Bbls/d
· Matador (MTDR) files to sell 8M shares of common stock
· Tronox (TROX) 19.5M share Secondary priced at $22.00
· W. R. Berkley Corporation (WRB) said its preliminary estimated catastrophe losses attributable to Hurricanes Harvey, Irma and Maria and the earthquakes in Mexico are expected to be less than $110 M, before tax, or $72M, after tax. The Company’s loss estimate gives consideration to all expected reinsurance recoveries and is inclusive of reinstatement premiums
· RenaissanceRe Holdings (RNR) announced it anticipates an initial estimated net negative impact of $625M from Hurricanes Harvey, Irma and Maria and the Mexico City Earthquake
· Iberiabank (IBKC) sees 3Q credit losses incremental provision $8.5M saying the credit losses tied to Hurricanes Harvey and Irma.
· ACADIA (ACAD) begins phase III study to evaluate Pimavanserin for the treatment of hallucinations and delusions associated with dementia-related psychosis. FDA Grants Breakthrough Therapy Designation to Pimavanserin for Dementia-Related Psychosis
· Rhythm Pharmaceuticals (RYTM) 7.05M share IPO priced at $17.00
· Biogen (BIIB) upgraded to Overweight from Equal Weight at Morgan Stanley
· Celgene (CELG) downgraded to Underweight from Equal Weight at Morgan Stanley
· Rigel Pharmaceuticals (RIGL) 18.1M share Secondary priced at $3.35
· ImmunoGen (IMGN) files to sell 13M shares of common stock
· Valeritas (VLRX) files $20M mixed securities shelf
· Ligand Pharmaceuticals (LGND) will acquire Crystal, a leader in avian genetics and the generation of fully-human therapeutic antibodies, paying $25M in cash at closing, up to an additional $10.5M of success-based milestones, and revenue sharing from existing licensees for a defined period
Technology, Media & Telecom
· Citrix Systems Inc. (CTXS) announced a reorganization, including layoffs and what the company termed “facilities consolidation.” Citrix said it expects $60M-$100M in pretax restructuring charges associated with the plan, including $55M-$70M in severance costs
· Apple Inc. (AAPL) issued a software update Wednesday that it said addresses some cellular-connectivity issues that have affected its newest smartwatch.
· Globalstar (GSAT) files automatic mixed securities shelf
· Drivers for Lyft Inc. and Uber Technologies Inc. won’t have to submit their fingerprints to the state under proposed new regulations in California, the San Francisco Chronicle reported Wednesday night.
· Microsoft (MSFT) upgraded to Buy from Hold at Canaccord
· GrubHub (GRUB) downgraded to Neutral from Buy at Citi
· NeoPhotonics (NPTN) announces restructuring actions that include a reduction in force, real estate consolidation and inventory write down for certain programs and assets, as well as idle assets
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.