Wednesday, October 11, 17
Stock futures are little changed, with S&P futures trading in a narrow 5-point range overnight (high 2,549.50 and low 2,545) as major averages remain at all-time record highs ahead of the start of earnings, with high profile big banks reporting tomorrow and Friday (C, JPM, BAC). Markets also awaiting the release of minutes from the Federal Reserve’s September meeting later today. Stocks look to build on recent gains as the Dow has gained nearly 16% for the year, the S&P is up 14%, and the Nasdaq has risen 22%. Quiet day for economic data, but there are three Fed officials slated to speak.
U.S. stocks finished higher on Tuesday, as all benchmark indexes reached intraday records, while the Dow industrials recorded its 47th all-time peak of 2017, buoyed by gains in energy, financials and consumer-staples shares ahead of the upcoming earnings season. Dow component Walmart (WMT) was an outperformer after the retailer announced a large stock buyback and said it would continue to focus on its domestic stores and e-commerce during its investor day.
In Asian markets, The Nikkei Index rose 57 points to settle at 20,881, the Shanghai Index gained 5 points to finish at 3,388 and the Hang Seng Index fell -101 points to end at 28,389. In Europe, the German DAX is up around 10 points at 12,960, while the FTSE 100down a few points at 7,535. Spanish stocks bounced as worries over the standoff between Catalonia and Madrid eased, after Catalan leader Carles Puigdemont suspended independence plans for now.
Market Closing Prices Yesterday
· The S&P 500 Index gained 5.91 points, or 0.23%, to 2,550.64
· The Dow Jones Industrial Average rose 69.61 points, or 0.31%, to 22,830.68
· The Nasdaq Composite climbed 7.52 points, or 0.11%, to 6,587.25
· The Russell 2000 Index advanced 4.44 points, or 0.30% to 1,508.01
· 7:00 AM EST MBA Mortgage Applications Data
· 10:00 AM EST JOLTs Job openings for August…est. 6,143
· 10:30 AM EST Weekly DOE Inventory Data
· 2:00 PM EST FOMC Minutes from prior meeting
· 4:30 PM EST API Weekly Inventory Data
· Bitcoin investors were hit on news from Russia, where President Vladimir Putin denounced the cryptocurrency as risky and used by criminals, and the country’s central bank said it would support moves to block websites dealing in bitcoin and other virtual currencies
· Investor Intelligence poll showed those considered bullish rise for fourth week in a row to 60.4% vs 57.5% last week; was as low as 47.1% on September 13, which was the least amount of bullishness since the week of the presidential election. Bears shrink to 15.1%, lowest since May 2015, versus 17.0% last week and those expecting a correction tumbles to 10-week low of 24.5% versus 25.5% last week
Sector News Breakdown
· German luxury automaker BMW is looking to form a joint venture with Great Wall Motor, Reuters reported citing a source familiar with the matter https://goo.gl/owjC8D
· Allegiant Travel (ALGT) Sept. Scheduled Service passenger traffic down 10.3%, Service RPM down 9.5%, ASM down 5%, and load factor down 3.9% points to 78.9%.
· LG Electronics estimated its Q3 operating profit jumped 82% on strong sales of premium home appliances
· Colgate-Palmolive (CL) upgraded to Buy from Hold at SunTrust
· NCI Building (NCS) announces new $50M stock repurchase program
· Schlumberger (SLB) downgraded to Market Perform from Outperform at BMO Capital as sees risk to 2018 estimates and limited room for multiple expansion
· BlackRock (BLK) Q3 EPS $5.92/$3.23B vs. est. $5.56/$3.09B; Assets under management $5.98 trillion
· AllianceBernstein L.P. (AB) said preliminary assets under management (AUM) increased to $535 billion during September 2017 from $529 billion at the end of August. The 1.1% increase was the result of market appreciation and firm wide net inflows that spanned all three client channels – Institutions, Retail and Private Wealth
· Invesco (IVZ) preliminary month-end assets under management (AUM) of $917.5B, an increase of 1.2% MoM, driven by favorable market returns, foreign exchange, net long-term inflows, and higher money market AUM; partially offset by PowerShares QQQs outflows.
· Artisan Partners Asset Management (APAM) prelim assets under management, or AUM, as of September 30 totaled $113.7B. Separate accounts accounted for $57.2B of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $56.5B
· Universal Insurance Holdings, Inc. (UVE) anticipates that gross losses relating to Hurricane Irma, a Category 4 hurricane, from both Florida and other Southeastern U.S. states will be $350M-$450M
· Flexion (FLXN) files to sell 4M shares of common stock
· AnaptysBio (ANAB) files to sell 3M shares of common stock
· Cooper Companies (COO) reports minor damage from Hurricane Maria in Puerto Rico plant
· MannKind (MNKD) sells 10.17M shares at $6.00 in registered direct offering
· Astellas Pharma announced today that the FDA has granted Fast Track designation for the development of gilteritinib for adult patients with FLT3 mutation-positive, or FLT3+, relapsed or refractory acute myeloid leukemia, or AML
Industrials & Materials
· International Paper (IP) raises annual cash dividend 2.7% to $1.90 per share
· Kobe Steel tumbled again overseas as the company confirmed a media report that it may have falsified data for steel powder products, days after the steelmaker admitted falsifying inspection data
Technology, Media & Telecom
· Barracuda Networks (CUDA) Q2 EPS 17c/$94.3M vs. est. 17c/$93.3M; Q2 gross billings $108.5M
· Micron (MU) files to sell $1B in stock
· Time Inc. (TIME) is cutting back on the circulation and frequency of some of its biggest titles, part of a far-reaching cost-reduction and restructuring program meant to ensure the profitability of its core brands. The company gradually will reduce the weekly circulation of its flagship Time magazine by one-third to 2 million copies
· Alibaba (BABA) says it will nearly triple spending on R&D over the next three year
· Gartner Inc. said Worldwide PC shipments fell (-3.6%) YoY to 67M units in 3Q which was the 12th consecutive quarter of falling worldwide PC units, driven mainly by a 10% decline in the U.S. market and a weak back-to-school market.
· More from Gartner on individual break-down: HPQ shipped 14.6M units in 3Q vs 14.0M YoY as market share rose to 21.8% from 20.1%, while Lenovo shipped 14.4M units in 3Q vs 14.6M YoY as market share rose to 21.4% to 21.0% and Dell shipped 10.2M units in 3Q vs 10.2M YoY as market share rose to 15.2% from 14.7%; Apple shipped 4.6M units in 3Q vs 4.9M YoY as market share fell to 6.9% from 7.0%
· Worldwide 3Q PC shipments fell (-0.5%) YoY to 67.2M according to IDC saying the decline in worldwide PC unit shipments was better than IDC’s (-1.4%) projected decline and demonstrates the trend of market stabilization in recent quarters.
· Voxx (VOXX) Q2 EPS loss (74c)/$113.5M; 2Q automotive revenue $32.7M and 2Q Premium Audio revenue $39.9M
· American Tower (AMT) is close to an agreement to buy communications infrastructure from Mexico’s KIO Networks in a deal valued at ~$500M – Bloomberg reported
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.