Mid Day Outlook: November 17, 2017

Scott GreenDaily Market Report

Mid-Morning Look
Friday, November 17, 17
  
U.S. stocks open lower, putting weekly gains for the S&P 500 and Dow at risk, though the Nasdaq is still on track to post a weekly gain. The market focus this week has swirled around the developments surrounding the Republican tax cut plan in Washington (now on the Senate, after the House of Representatives passed bill to overhaul the tax code yesterday) along with earnings. Retailer resurgence also a hot topic after Dow component WMT handily topped results yesterday, lifting the sector while results overnight and this morning from ANF, GPS, FL, HIBB, SCVL, ROST extend those gains. Technology was boosted by better earnings out of AMAT and SPLK, which followed a beat/raise by CSCO yesterday, pushing the Nasdaq Composite to record highs late yesterday. Volumes will likely dry up next week given the abbreviated holiday week and with earnings now in the “rear-view” mirror. Stocks have extended losses, now trading near the lows of the session.
 
Treasuries, Currencies and Commodities
·      Bonds mixed as long-dated Treasury yields dropped; short-dated yields rose as the December FOMC meeting still expects to yield a 25-bps hike; the 10-year Treasury note yield fell to 2.344%, from 2.361% late Thursday, while the 2-year note yield rose to 1.721%, from 1.71%
·      The U.S. dollar dropped following a report overnight that U.S. special counsel Robert Mueller’s probe into Russian election interference has made its first official order for information connected to President Donald Trump’s campaign; the buck reversed some of the gains yesterday after the House voted in favor of the Republican-led U.S. tax overhaul (next to Senate). The dollar index down slightly, on track for 2nd weekly decline
·      Commodity prices; sector broadly higher, led by more than 2% gains in crude and a jump in precious metals, helped greatly by a decline in the U.S. dollar
   
Stock GAINERS
·      ANF +27%; quarterly results beat, helped by surprise sales growth at Hollister unit
·      FL +25%; as Q3 results handily topped consensus estimates
·      GPS+8%; reported better earnings as comps surprised to the upside at +1% for core Gap
·      FOXA +3%; was reported that CMCSA has approached FOXA to express interest in buying a substantial piece of the company’s business. CMCSA is interested in assets like those DIS pursued when it recently held talks with FOX https://goo.gl/awvU53
·      JASO +6%; agreed to be taken private by an investor consortium in an all-cash deal with an equity value of about $362.1M, or $7.55 per ADS share https://goo.gl/bn8jh5
·      SPLK +17%; strong quarter, with revenue and billings both coming in well ahead of consensus estimates and with a FY revenue guidance raise/also license revenue growth continues
·      TSLA +2%; launched its Semi tractor-trailer and said JBHT has already ordered multiple tractors
 
Stock LAGGARDS
·      CHRW -2%; another name seen hurt by the TSLA news
·      CMI -3%; tumbled after TSLA’s unveiling of its new electric-powered Semi truck
·      EA -3%; suspended micropayments on its highly anticipated new video game “Star Wars: Battlefront II” given pushback from fans
·      HOG -3%; mentioned cautiously at UBS saying they may post lower shipments in 4Q
·      WSM -11%; downgraded at JP Morgan to underweight following mixed results, lower margins
 
Syndicate:
·      Bluegreen Vacations (BXG) 6.5M share IPO priced at $14.00
·      SailPoint Technologies (SAIL) 20M share IPO priced at $12.00
·      scPharmaceuticals (SCPH) 6.4M share IPO priced at $14.00
·      Sterling Bancorp (SBT) 15M share IPO priced at $12.00
·      Stitch Fix (SFIX) 8M share IPO priced at $15 per share, lower than the $18 to $20 range that the company originally expected
 

 

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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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