Monday, October 9, 17
Stock futures are higher, looking to extend their record setting pace after major averages posted small declines on Friday to snap their week-long rallies, though the Nasdaq Composite managed to close in positive territory, its 9th straight day of gains. The S&P 500 snapped its longest streak of record-setting closes in 20 years after the latest nonfarm payroll report showed the US economy shedding jobs for the first time in seven years. Still, each gauge managed to close the week out with a more than 1% gain, boosted by technology and financials as interest rate hike expectations climbed on better data. The Dow has gained 15% for the year as of Friday’s close, the S&P is up 14%, and the Nasdaq Composite has risen 22%. Volume should be quieter than normal, while bond markets are closed in observance of the Columbus Day holiday (though stock markets are open all day).
In Asian markets, The Nikkei Index was closed the Shanghai Index reopened after a week-long holiday to rise 25 points (0.75%) and settle at 3,374, while the Hang Seng Index fell -131 points to settle at 28,326. In Europe, the German DAX is up a few points at 12,965, while the FTSE 100 is down around -10 points holding above 7,500. European stocks mostly higher helped by Spain’s IBEX benchmark rallying somewhat after last week’s tumble that was sparked by Catalonia edging toward secession. The independence movement lately has faced counter-protests and companies threatening to leave the restive region. The Turkish Lira was sharply lower against the dollar as the U.S. and Turkey on Sunday stopped issuing nonimmigrant visas to each others’ citizens, in a development that followed the arrest of a U.S. Consulate employee in Istanbul.
Market Closing Prices Yesterday
· The S&P 500 Index slipped -2.74 points, or 0.11%, to 2,549.33
· The Dow Jones Industrial Average slid -1.72 points, or 0.01%, to 22,773.67
· The Nasdaq Composite gained 4.82 points, or 0.07%, to 6,590.18
· The Russell 2000 Index dipped -1.87 points, or 0.12% to 1,510.22
· None due to Columbus Day Holiday
· Tesla (TSLA) said it will push back its Tesla Semi reveal event until November 16 to focus on Model 3 bottlenecks and its energy aid to Puerto Rico, according to Elon Musk.
· Walmart (WMT) is using e-commerce to jump-start earnings growth, Barron’s reports noting the company is increasing revenues faster than Amazon.com (AMZN) as it benefits from acquisitions, including the 2016 buy of Jet.com. Walmart has said it can expand e-commerce revenue 20% to 30% organically
· Gun shares look overvalued according to Barron’s noting tragedies involving guns and political pronouncement about gun violence tend to move shares of publicly traded firearms companies, such as Sturm Ruger (RGR), American Outdoor Brands (AOBC) and Vista Outdoor (VSTO)…but with prospects dim for stricter gun control, an impetus for long-term sales growth is lacking, he notes, adding that the stocks look overvalued.
· Following assets have been affected by Hurricane Nate which is forecast to make landfall on the U.S. Gulf of Mexico coast this weekend. Nate’s top winds have reached 90 miles (145 kilometers) per hour as the Category 1 hurricane approaches mouth of Mississippi River: U.S. National Hurricane Center in Miami. Ports Shut; 92% of Oil Output, 77% of Gas Offline as of 10/07
· Oil companies Royal Dutch Shell (RDS.A) and BP (BP), along with U.K. communications firm WPP (WPPGY), power multinational Enel (ENEL IM), Taiwan Semiconductor (TSM) and Dutch bank ING Groep (ING), are dividend-paying foreign stocks that hold attractive yields and should be explored by U.S. investors looking for assets abroad, Barron’s reports
· Chevron Corp. (CVX) has started producing liquefied natural gas from its $34 billion Wheatstone LNG project in Western Australia, with first shipments expected in the coming weeks
· Intersect ENT (XENT) said one serious implant-related adverse event, an intranasal bleed requiring intervention, was observed in RESOLVE II Phase III Study evaluating safety and efficacy of SINUVA, an investigational steroid releasing sinus implant
· U.S. FDA granted Breakthrough Therapy Designation (BTD) for AstraZeneca’s (AZN) Tagrisso for the 1st-line treatment of patients with metastatic epidermal growth factor receptor (EGFR) mutation-positive non-small cell lung cancer (NSCLC)
Industrials & Materials
· Honeywell (HON) plans to spin off non-core assets and create at least two new publicly listed companies, as it seeks to streamline its business, according to Reuters
· Axta Coating (AXTA) sees Q3 sales $1.08B-$1.10B vs. est. $1.13B; sees Q3 Ebitda $205M-$215M vs. est. $248.8M
Technology, Media & Telecom
· Match Group (MTCH) has seen shares rise about 45% in the last three months with the launch of a paid feature, Tinder Gold, Barron’s said. Jefferies analyst Brent Thill, who rates the dating website operator a buy, sees Tinder rising as a share of Match’s overall revenue to 27% this year and 35% in 2018.
· China Mobile (CHL) mixed mention in Barron’s noting the company holds $60 billion in net cash, equal to 30% of its market value, and says analysts see the company’s stock rising 30% in coming years from a recent level near $50 based on its growth prospects and the likelihood of higher dividend payments (but notes the company is 73% owned by the Chinese government, triggering anxiety about its direction).
· Cognizant (CTSH) is building a lucrative digital-consulting business, Barron’s said. Meanwhile, the company’s shareholders could see a twofold payoff thanks to activist investor Elliott Management, which took a 4% stake last November, acquired three board seats, and pressed management to prioritize profit-margin expansion.
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.