Morning Preview: March 12, 2019

Auto PostDaily Market Report

Early Look

Tuesday, March 12, 2019





DJ Industrials




S&P 500










Stock futures are mixed to little changed early, as Dow futures slip following more weakness in shares of Boeing after reports of more countries grounding their 737 Max planes following the second fatal crash in the last 6-months yesterday, while tech looks to extend its gains. European markets are little changed, while the British pound extended yesterday’s gains after a deal between U.K. Prime Minister Theresa May and European Union officials secured legal changes over the Irish border backstop. The deal could help May win a key vote Tuesday in parliament, where a rejection of her deal is feared. It’s not clear if the assurances over the Irish backstop would be enough to win over the 116 additional lawmakers, she needs to approve her Brexit deal. The alternatives are leaving the EU without a deal on March 29 or delaying Brexit. In Asian markets, The Nikkei Index jumped 378 points (1.79%) to settle at 21,503, the Shanghai Index gained 33 points (1.1%) to finish at 3,060 and the Hang Seng Index rose 417 points (1.46%) to 28,920. In Europe, the German DAX is up slightly at 11,550, while the FTSE 100 is also little changed at 7,130. Consumer Price Index (CPI) data to be released later this morning in the U.S.


Stocks jumped on Monday, snapped a five-session losing streak for major averages, led by gains in technology, though all sectors participated in the road-based buy-the-dip rally. The Dow Industrial Average overcame an early 240-point decline to close 200 points higher, even as Boeing sank -5.3% percent in the wake of the second crash involving one of its 737 MAX 8 jets (shares had been down as much as 13% prior). All eleven sectors of the S&P 500 gained as both the S&P 500 and Nasdaq Composite moved back above their 200-day moving averages. U.S. Treasury prices edged lower note, pushing the two-year yield up 3 bps to 2.47% and the benchmark 10-year yield up 2 bps to 2.64%. Meanwhile, WTI crude climbed 1.2% to $56.80/bbl amid plans from Saudi Arabia to cut oil exports in April and expectations that OPEC would not change its production policy at the next meeting.

Market Closing Prices Yesterday

·     The S&P 500 Index jumped 34.37 points, or 1.25%, to 2,783.30

·     The Dow Jones Industrial Average rose 177.65 points, or 0.70%, to 25,650.88

·     The Nasdaq Composite spiked 136.60 points, or 1.84%, to 7,558.06

·     The Russell 2000 Index advanced 25.25 points, or 1.66% to 1,548.88


Events Calendar for Today

·     6:00 AM EST      NFIB Small Business Optimism for February…est. 102.5

·     7:45 AM EST      ICSC Weekly Retail Sales

·     8:30 AM EST      Consumer Price Index MoM for February…est. 0.2%

·     8:30 AM EST      CPI Ex: Food & Energy MoM for February…est. 0.2%

·     8:30 AM EST      CPI Ex: Food & Energy YoY for February…est. 2.2%

·     8:55 AM EST      Johnson/Redbook Weekly Sales

·     4:30 PM EST       API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: BLCM, CVGI, DFRG, IPI, KEYW, KOPN, NOG, VSTM

·     Earnings After the Close: APEI, BPI, CLNE, CLSD, COHU, INO, NTRA, PEIX, PETX


Other Key Events:

·     Barclay’s Global Healthcare Conference, 3/12-3/14, in Miami, FL

·     Cowen 39th Annual Healthcare Conference, 3/11-3/13, in Boston, MA

·     Deutsche Bank 2019 Media & Telecom Conference, 3/11-3/13, in Palm Beach, FL

·     Susquehanna 8th Annual Technology Conference, in New York





WTI Crude















10-Year Note





World News

·     The National Federation of Independent Business said its small-business optimism index inched higher in February after hitting in January the worst levels since the 2016 presidential election. The optimism index rose 0.5 point to 101.7, with 5 out of the 10 components increasing,

·     The U.K. economy grew 0.5% month-on-month in January, surpassing the consensus estimate for 0.2% and rebounding from a prior 0.4% drop. The rolling three-month figure was in line with expectations at 0.2%.

·     U.S. Trade Chief Robert Lighthizer will testify before the Senate Finance Committee today at a hearing on the WTO.


Sector News Breakdown


·     ADT Inc. (ADT) Q4 EPS 13c/$1.19B vs. est. 12c/$1.16B; sees 2019 revenue $4.90B-$5.1B vs. est. $4.9B; sees 2019 adjusted Ebitda $2.46B-$2.5B vs. est. $2.56B

·     Casey’s General Stores (CASY) Q3 EPS $1.13/$2.05B vs. est. 92c/$2.14B; lowers FY19 fuel SSS view to (2%)-(0.5%) from (1%)-0.5%; 3Q same store gallons -3.4% vs. est. -1.1% and 3Q Same-store grocery sales +3.4% vs. est. +2.2%

·     Tesla (TSLA) CEO Elon Musk has accused the SEC of “unprecedented overreach” as he asked a federal judge to dismiss the regulator’s attempt to hold him in contempt of court

·     United Natural Foods (UNFI) downgraded to Underweight from Equal Weight at Barclays



·     Northern Oil and Gas (NOG) Q4 EPS 24c/$152.56M vs. est. 14c/$158.3M; sees FY19 CapEx $247M-$285M



·     Wells Fargo (WFC) said that CEO and President Timothy J. Sloan will appear before the U.S. House Committee on Financial Services today at 10:00 AM EST, and may discuss various matters relating to the company and its business during the hearing

·     AllianceBernstein L.P. (AB) said that preliminary assets under management increased to $547 billion during February 2019 from $538 billion at the end of January. The 1.7% increase was due to market appreciation, as well as total firm wide net inflows

·     Invesco (IVZ) reports preliminary AUM $945.7B as of February 28, up 1.6% as the increase was driven by favorable market returns, higher money market AUM, foreign exchange, and reinvested distributions, partially offset by net long-term outflows and non-management fee earning AUM outflows.

·     Artisan Partners Asset Management (APAM) reported that its assets under management as of February 28 totaled $108.2B. Separate accounts accounted for $56.1B of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $52.1B



·     Zafgen (ZFGN) decided to suspend investigational new drug filing plans for ZGN-1258, its candidate for rare metabolic disorders including Prader-Willi syndrome (PWS), based on an unexpected finding in muscle tissue in four- and six-month long-term rodent toxicology studies.

·     Avid Bioservices (CDMO) Q3 EPS loss (5c)$13.8M vs. est. loss (7c)/$12.7M; 3Q gross margin 15%; said expects to end the fiscal year within the lower half of its revenue guidance of $51M-$55M

·     Dicerna (DRNA) Q4 EPS loss (29c)/$1.5N vs. est. loss (22c); said “our active business development and financing activities have put us in a strong financial position ending 2018 with $302.6 million of cash, cash equivalents and held-to-maturity investment

·     PetIQ (PETQ) Q4 EPS loss (16c)/$111M vs. est. $98.72M; sees FY19 revenue at least $600M vs. est. $602.19M and sees FY19 adjusted EBITDA of at least $51M, an increase greater than 23% from growth of 86% in 2018


Industrials & Materials

·     Australia and Singapore suspended the operation of Boeing’s (BA) 737 Max planes and more carriers grounded them. Lion Air may switch to Airbus A320s, according to some reports, it lost a Boeing jet in a crash in October. The airline refused delivery of a 737 Max due this month. – Bloomberg

·     The International Air Transport Association (IATA) on Tuesday nearly halved its annual forecast for traffic growth in the air cargo market to 2% citing trade frictions, Brexit and anti-globalization rhetoric. That is lower than a previous estimate of 3.7% traffic growth issued in December and leaves airlines more dependent on passenger revenue for growth

·     Mistras (MG) Q4 EPS loss (4c)/$180.8M vs. est. 21c/$175.3M; Q4 Ebitda $16.1M vs. est. $21.5M; sees 2019 revenue $765M-$785M vs. est. $770.8M; sees 2019 adjusted Ebitda $90 million to $93 million, estimate $90.9 million

·     Kronos (KRO) Q4 EPS 21c/$349.4M vs. est. 22c/$393.5M; said 4Q TiO2 Product pricing change -2%


Technology, Media & Telecom

·     Apple (AAPL) has announced March 25 for its annual spring product announcement at its Cupertino, Calif., headquarters and is expected to release its content with a new streaming TV service and a revamped Apple News

·     Coupa Software (COUP) Q4 adjusted EPS 5c/$74.9M vs. est. 0c/$67.73M; sees Q1 adjusted EPS loss (6c)-(3c) on revs $73.5M-$74M vs. est. 1c/$70.27M; sees FY20 adjusted EPS 4c-10c on revs $325M-$327M vs. est. 21c/$315.02M

·     Stitch Fix (SFIX) Q2 EPS 12c/$370.3M vs. est. 5c/$364.89M; Q2 active clients of 3.0M, an increase of 18% year over year; sees Q3 revenue $388M-$398M, above consensus $384.35M and sees Q3 adjusted EBITDA ($4M)-$1M; sees year revs $1.53B-$1.56B vs. est. $1.51B

·     F5 Networks (FFIV) has a definitive deal to acquire Nginx for a total enterprise value of about $670M

·     F5 Networks (FFIV) downgraded to Neutral from Overweight at JPMorgan

· (STMP) announces $60M share repurchase plan


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