Morning Preview: April 24, 2019

Auto PostDaily Market Report

Early Look

Wednesday, April 24, 2019





DJ Industrials




S&P 500










U.S. stock futures are mixed, rebounding off overnight lows despite yesterday’s record close for the benchmark S&P 500 index. European and Asian stocks slipped while Treasury prices gain and the dollar extended its rally. Overnight, U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will lead a U.S. delegation to China next week to resume trade negotiations. The White House confirmed the new round of talks in a statement late Tuesday. The negotiations will begin April 30 in Beijing, to be followed by a Chinese delegation, led by Liu He, that will travel to Washington for continued talks starting May 8. In Asian markets, The Nikkei Index fell -59 points to 22,200, the Shanghai Index gained 3 points to 3,201 and the Hang Seng Index dropped -157 points to settle at 29,805. In Europe, the German DAX is higher by roughly 90 points to 12,325, while the FTSE 100 is down around -20 points back at the 7,500 level.


U.S. stocks closed at record highs on Tuesday, as the S&P remains just off its intraday records following stronger-than-expected earnings reports from several large cap companies. The Nasdaq Composite gained 1.3% and the SmallCap Russell 2000 advanced 1.6% as 10 of the 11 main S&P 500 sectors closed higher (defensive utilities lagged). Volume remains light however and volatility non-existent as the CBOE Volatility index (VIX) declined -1.1% to 12.28 while the dollar jumped to its best levels since June 2017 and WTI crude finished at 6-month highs

Market Closing Prices Yesterday

·     The S&P 500 Index gained 25.71 points, or 0.88%, to 2,933.68

·     The Dow Jones Industrial Average rose 145.34 points, or 0.55%, to 26,656.39

·     The Nasdaq Composite surged 105.56 points, or 1.32%, to 8,120.82

·     The Russell 2000 Index advanced 25.05 points, or 1.61% to 1,585.09


Events Calendar for Today

·     7:00 AM EST      MBA Mortgage Applications Data

·     10:30 AM EST    Weekly DOE Inventory Data


Earnings Calendar:

·     Earnings Before the Open: AMTD, ANTM, APH, BA, BCO, BIIB, BKU, BSX, CAT, CS, EVR, GNTX, Heineken, KNX, MCO, NDAQ, NOC, NVS, NSC, RES, SAP, SIRI, SLAB, STM, SWK, T, TMO, TUP, VALE







WTI Crude















10-Year Note





World News

·     U.K. Prime Minister Theresa May is considering a risky new tactic to try to resolve the Brexit deadlock with a potentially critical parliamentary vote on key exit legislation next week. In an attempt to get the Brexit agreement approved before the European Elections next month, the prime minister’s office has said it was ready to move the bill to implement May’s rejected withdrawal agreement forward, the Financial Times reported.

·     Investor Intelligence Poll shows equity newsletter writers classified as bulls slips to 53.4% from 54.8% which was the highest since October 10, while bearish sentiment slips to 18.4, and those expecting a correction rises for only the second time in the last 12 weeks to 28.2% from 26.0%

·     Saudi Arabia will not rapidly ramp up output after the US ended the sanctions waivers for buyers of Iranian crude, the kingdom’s energy minister said

·     Iran’s President Hassan Rouhani said the country has no choice but to resist US sanctions because Washington has no genuine intention to negotiate with the Islamic republic – FT

·     Australian inflation slowed sharply in the first quarter, prompting economists to bring forward rate-cut forecasts. Price-growth slowed to 1.3%, below consensus, from 1.8%


Sector News Breakdown


·     eBay (EBAY) Q1 adjusted EPS 67c/$2.6B vs. est. 63c/$2.58B; sees Q2 adjusted EPS 61c-63c on revs $2.64B-$2.69B vs. est. 60c/$2.65B; raises FY19 adjusted EPS view to $2.64-$2.70 from $2.62-$2.68 (est. $2.66) and raises FY19 revenue view to $10.83B-$10.93B from $10.7B-$10.9B (est. $10.85B); Q1 gross merchandise vol. $22.59B, 1Q total marketplace gross merchandise $21.57B

·     Burlington Stores (BURL) narrows Q1 EPS view to $1.21-$1.25 from $1.21-$1.31 (est. $1.29) and narrows Q1 comp sales view to 0%-0.5% vs. the previous guidance of 0%-2%

·     Hawaiian Holdings (HA) Q1 adjusted EPS 67c/$656.75M vs. est. 64c/$655.88M; sees Q2 ASMs up 1.5%-3.5% and sees Q2 operating revenue per ASM down 2.0%-5.0%

·     iRobot (IRBT) Q1 EPS 78c/$237.7M vs. est. 63c/$251.4M; raises FY19 EPS view to $3.15-$3.40 from $3.00-$3.25 and reaffirms FY19 revenue view $1.28B-$1.31B (est. $1.29B); 1Q gross margin 50.3%, 1Q consumer units shipped 876 vs. 815 YoY and 1Q average gross selling price $321

·     Meritage Homes (MTH) Q1 EPS 65c/$708.15M vs. est. 64c/$636.1M; total orders for Q1 increased 7% year-over-year, driven by a 7% increase in average active community count with an absorption pace consistent with the prior year’s Q1; sees FY19 EPS $4.65-$4.95 vs. est. $4.69

·     Robert Half (RHI) Q1 EPS 93c/$1.47B vs. est. 95c/$1.5B; sees Q2 EPS 95c-$1.01 on revs $1.48B-$1.55B vs. est. $1.01/$1.55B

·     Six Flags (SIX) Q1 EPS loss (82c)/$128.2M vs. est. loss (86c)/$123.79M; 1Q adjusted Ebitda loss $31.8M; Q1 attendance down 8% and reports Q1 total guest spending per capita up 5%



·     The American Petroleum Institute (API) reported that U.S. crude supplies rose by 6.9M barrels for the week ended April 19, showed a stockpile climb of 2.2M barrels for gasoline, while distillate stockpiles fell by -865K barrels

·     Cenovus Energy (CVE) lowers FY19 total production view to 472-500 from 350-370 MBOE/d

·     FirstEnergy (FE) Q1 adjusted basic EPS 67c vs. est. 67c; reaffirms year operating EPS of $2.45-$2.75 and also reaffirmed its compound annual growth projection of 6%-8% through 2021

·     Superior Energy (SPN) Q1 EPS loss (31c)/$467.2M vs. est. loss (24c)/$495.4M



·     TD Ameritrade (AMTD) Q2 adjusted EPS 93c/$1.45B vs. est. 92c/$1.46B; 2Q net interest margin 2.17%, 2Q operating margin 48.6%, 2Q number of trades 52.5 million, Q2 net new client assets $19.6 billion; 2Q average client trades per day 860,359

·     TSYS (TSS) Q1 adjusted EPS $1.20/$1.03B vs. est. $1.16/$999.22M; reports Q1 adjusted EBITDA was $357.3M, up 8.0% from last year

·     Chemical Financial (CHFC) Q1 ex-items EPS $1.02/$197.9M vs. est. 99c/$202.7M; reports Q1 tangible book value per share $24.39

·     Navient (NAVI) Q1 adjusted EPS 58c/$257M vs. est. 44c/$292.43M; Q1 segment net interest margin 0.80% vs. 0.83% last year; Q1 private education loan provision down $9M from last year

·     Trustmark (TRMK) Q1 EPS 51c vs. est. 52c; 1Q net interest margin 3.60% and 1Q provision for loan losses $1.61 million

·     United Community Banks (UCBI) Q2 operating EPS 56c vs. est. 54c; reports Q1 net charge-offs of fifteen basis points, up six basis points from last quarter, but remain at a historically low level

·     WR Berkley (WRB) Q1 EPS 94c/$1.94B vs. est. 63c/$1.91B; 1Q net premiums written $1.71B



·     Anthem (ANTM) Q1 adjusted EPS $6.03/$24.4B vs. est. $5.86/$24.28B; raises FY19 adjusted EPS view to greater than $19.20 vs. est. $19.16 (prior view was adjusted EPS greater than $19.00) and backs year revs

·     Novartis (NVS) raised its earnings outlook for 2019 after net sales and core operating income exceeded forecasts, as the drugmaker doubled down on its medicines business

·     Thermo Fisher (TMO) Q1 EPS $2.81/$6.12B vs. est. $2.73/$6.02B

·     Abiomed (ABMD) says MS-DRG 215 proposed CMS Reimbursement rate lower; the proposed new rate for reimbursement proposed by the Centers for Medicare and Medicaid Services is lower than the previous year, Abiomed disclosed in a regulatory filing/current rate for MS-DRG 215 is $78,724, proposed rate all hospitals $57,047

·     AbbVie Inc. (ABBV) said the FDA approved its psoriasis treatment Skyrizi. In clinical trials, the drug cleared up skin by 90% in around 80% of patients and by 100% in just over half of patients

·     Edwards Lifesciences (EW) Q1 adjusted EPS $1.32/$993M vs. est. $1.22/$989.61M; raises FY19 adjusted EPS view to $5.10-$5.35 from $5.05-$5.30 (est. $5.21) and sees FY19 revenue $3.9B-$4.3B (est. $4.14B); Transcatheter aortic valve replacement sales $597.7M vs. $551.1M YoY

·     Stryker (SYK) Q1 adjusted EPS $1.88/$3.52B vs. est. $1.84/$3.52B; sees FY19 adjusted EPS $8.05-$8.20 vs. est. $8.13 and sees FY19 organic net sales growth in the range of 6.8%-7.5%


Industrials & Materials

·     Air Products (APD) Q2 EPS $1.92 vs. $1.87; raises FY19 adj. EPS view to $8.15-$8.30 from $8.05-$8.30 (est. $8.15) but guides Q2 EPS $2.10-$2.15 vs. est. $2.19

·     Canadian Pacific (CP) 1Q adjusted EPS C$2.79/C$1.77B vs. est. C$2.98/C$1.77B; Q1 operating ratio 69.3%; Q1 operating ratio 69.3%; expects to generate double digit adjusted diluted EPS growth in 2019

·     Carlisle (CSL) Q1 EPS $1.33/$1.07B vs. est. $1.10/$1.04B

·     Hexcel (HXL) Q1 EPS 84c/$609.9M vs. est. 78c/$590.91M; backs FY19 adjusted EPS view of $3.38-$3.52 (est. $3.46) and backs FY19 revenue view $2.375B-$2.475B(est. $2.41B)

·     Kaiser Aluminum (KALU) Q1 adjusted EPS $1.85/$395M vs. est. $1.79/$404.05M; sees FY adjusted Ebitda margin above +25%


Technology, Media & Telecom

·     Texas Instruments (TXN) Q1 EPS $1.26/$3.59B vs. est. $1.13/$3.5B; sees Q2 EPS $1.12-$1.32 on revs $3.46B-$3.74B vs. est. $1.24/$3.69B

·     Snap (SNAP) Q1 adjusted EPS loss (10c)/$320.43M vs. est. loss (12c)/$306.48M; Q1 DAUs were 190 million in Q1 2019 (est. 186.8M), compared to 186 million in Q4 2018 and 191 million in Q1 2018; sees Q2 revenue $335M-$360M vs. est. $348.04M; sees Q2 adjusted EBITDA ($150M)-($125M); said it is not giving specific guidance on DAUs, but that it has previously seen stronger growth rates in 1Q when compared to 2Q

·     Teradyne (TER) Q1 EPS 54c/$494M vs. est. 44c/$476.15M; sees Q2 EPS 56c-65c on revs $520M-$550M vs. est. 58c/$539.4M

·     Manhattan Associates (MANH) Q1 EPS 41c/$148.4M vs. est. 34c/$137.56M; raises FY19 EPS view to $1.42-$1.46 (est. $1.40) and raises FY 19 revenue view to $582M-$592M (est. $570.03M)


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