Morning Preview: April 10, 2018

Scott GreenDaily Market Report

Early Look

Tuesday, April 10, 18

U.S. stock futures are rising, partially recovering yesterday’s late day meltdown that saw stocks nearly give back all of its early Monday gains. Markets are cheering comments by Chinese President Xi Jinping to open the country’s markets. Xi’s pledges, made at a major conference in Asia, may help to soothe fears of an all-out trade war between the U.S. and China. Among the promises, lowering tariffs on imported autos and other products, enforcing the legal intellectual property of foreign firms, and improving the investment environment for international companies. Futures for major U.S. stock markets climbed more than 1% across the board after his speech. Russia markets however getting hit hard again as Russia’s currency plunged to the weakest level since Dec. 2016 with the ruble falling over 4% to 63.61 vs. the dollar, taking its slump this week to 8.5% given the toughest U.S. sanctions yet combined with an escalation in tensions over Syria to rattle investor sentiment. The other big story today, Facebook CEO on Capital Hill talking about its recent data breach.

U.S. stock markets dropped late Monday, paring strong gains (Dow was up as much as 440 points before ending higher by 46 points) after reports the FBI had raided the office of President Donald Trump’s longtime personal lawyer Michael Cohen. Treasury prices declined, pushing up yields, as trade tensions between the U.S. and China appeared to be dialed back somewhat. Other factors for U.S. markets remain a suspected chemical-weapons attack in Syria that left dozens dead or injured and has heightened tensions between leaders in Washington officials in Russia. All three major averages rallied in midday trading, with the Nasdaq at one point up more than 2%, but subsequently retreated, in the latest example of the market’s recent intraday volatility.

In Asian markets, The Nikkei Index gained 116 points to settle at 21,794, the Shanghai Index jumped 52 points to close at 3,190 and the Hang Seng Index surged 499 points (1.65%) to settle at 30,728. In Europe, the German DAX is higher by around 125 points at 12,385, while the FTSE 100 is up around 30 points at 7,225. The Pound rose to a two-week high Tuesday after comments from Bank of England policymaker Ian McCafferty that the central bank should not delay in raising interest rates again.

Market Closing Prices Yesterday

  • The S&P 500 Index gained 8.69 points, or 0.33%, to 2,613.16
  • The Dow Jones Industrial Average rose 46.34 points, or 0.19%, to 23,979.10
  • The Nasdaq Composite climbed 35.23 points, or 0.51%, to 6,950.34
  • The Russell 2000 Index advanced 1.17 points, or 0.08% to 1,514.46

Events Calendar for Today

  • 6:00 AM EST       NFIB Small Business Optimism for March
  • 7:45 AM EST       ICSC Weekly Retail Sales
  • 8:30 AM EST       Producer Price Index (PPI) MoM for March
  • 8:30 AM EST       PPI Ex: Food & Energy MoM for March
  • 8:55 AM EST       Johnson/Redbook Weekly Sales
  • 10:00 AM EST     Wholesale Inventories MoM for February
  • 4:30 PM EST        API Weekly Inventory Data

World News

  • The FBI raided the offices and home of U.S. President Donald Trump’s personal lawyer Michael Cohen, law enforcement sources said, in a dramatic new development in a series of probes involving close Trump associates
  • President Donald Trump on Monday blasted the FBI’s seizure of his personal lawyer’s records, calling the move “a witch hunt” — and even “an attack on our country.”
  • The index of small-business optimism from the National Federation of Independent Businesses (NFIB)fell to 104.7 in March, below the estimate of 107

Sector News Breakdown


  • United Continental Holdings Inc. (UAL) said its Q1 PRASM rose near the upper end its forecast even as it ramped up the supply of seats and flights; said PRASM rose about 2.7% vs a prior view of up 1%-3%; boosted seating capacity 3.6% in Q1
  • Tupperware (TUP) guided Q1 EPS to 87c-92c, down from the prior view $1.01-$1.06 (estimate $1.04); currently expects second quarter sales modestly lower than previously foreseen and no change from its previous expectations in the second half of the year
  • Hawaiian Airlines (HA) said March traffic rose 8.6% and capacity up 6.7%; load factor improved in March to 86.5% from 85% a year ago; traffic rose 6.1% in 1Q and capacity rose 4.6% in 1Q
  • WWE (WWE) raised sees FY18 adjusted OIBDA of at least $145M vs. prior view of at least $140M and sees Q1 adjusted OIBDA of at least $30M, topping the previous guidance of $23M-$27M


  • California Resources (CRC) announced that it has executed and closed a purchase and sale agreement with Chevron (CVX) to acquire the remaining working, surface and mineral interests in the 47,000-acre Elk Hills field in the San Joaquin Basin of California, paying cash consideration of $460M and issued 2.85M CRC common shares to Chevron
  • Exxon Mobil (XOM) added to US 1 List at Bank America


  • Franklin Resources, Inc. (BEN) reported preliminary month-end assets under management of $737.5 billion at March 31, 2018, compared to $744.9 billion at February 28, 2018. Preliminary average assets under management for the quarter ended March 31, 2018, were $751.8 billion.
  • Cohen & Steers, Inc. (CNS) preliminary assets under management (AUM) of $58.5 billion as of March 31, 2018, an increase of $774 million from February 28, 2018. The increase was due to market appreciation of $1.0 billion and net inflows of $112 million, partially offset by distributions of $376 million
  • Pzena Investment (PZN) reports March AUM $37.7B vs. $38.5B in February
  • Selective Insurance Group (SIGI) says 1Q catastrophe and non-catastrophe property losses exceeded expectations by $33m, will reduce fully diluted EPS by 44c; Q1 pretax net insured catastrophe losses were ~$26m,
  • Triumph Bancorp (TBK) announces $175M common stock offering
  • S&P Global (SPGI) files automatic mixed securities shelf


  • vTv Therapeutics (VTVT) shares fell -65%; said patients taking azeliragon compared with placebo did not improve in cognitive or functional outcomes as measured by ADAS-cog and CDR-sb; says it’s discontinuing current clinical studies involving azeliragon
  • Becton Dickinson (BDX) upgraded to Buy from Neutral at Citigroup

Industrials & Materials

  • MSC Industrial (MSM) Q2 sales $769M vs. est. $773.8M; sees Q3 net sales $820M-$835M vs. est. $827.7M
  • Royal Gold, Inc. (RGLD) unit RGLF Gold AG sold about 63,000 gold equivalent ounces in 3Q; Royal Gold had about 26,000 gold ounces and 659,000 silver ounces in inventory at March 31, 2018; sees impact of the temporary shutdown at Mount Milligan facility reflected in its mid-calendar 2018 results
  • Eaton (ETN) upgraded to Buy from Neutral at Goldman Sachs

Technology, Media & Telecom

  • Verifone Systems (PAY) to be acquired by an investor group led by Francisco Partners and including British Columbia Investment Management Corporation for $23.04 per share in cash, in a total deal valued at approximately $3.4B
  • Seagate Technology (STX) upgraded to overweight from equal-weight at Morgan Stanley and raised tgt to $72 from $51
  • Nvidia (NVDA) upgraded to overweight from equal-weight at Morgan Stanley and raise tgt to $258
  • Emcore (EMKR) reduces Q2 revenue view to $18M-$19M, down from previous guidance of $21M-$23M and below consensus $27.06M; said CATV had “significant” demand shortfall in Q2
  • Alibaba (BABA) CEO Jack Ma, speaking at the Boao Forum for Asia in China’s southern Hainan province, urged Facebook Inc to resolve its data privacy problems, a day before the social media giant’s founder, Mark Zuckerberg, was due to appear at U.S. congressional hearings
  • Energous Corp. (WATT) said the FCC has certified the company’s near-field transmitter, WattUp, as compliant with safety, electromagnetic compatibility, and regulatory requirements
  • Live Nation (LYV) upgraded to Buy following recent pullback at Citigroup


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.

Live Trading

Open an Account

Paper Trading