Morning Preview: July 11, 2019

Auto PostDaily Market Report

Early Look

Thursday, July 11, 2019





DJ Industrials




S&P 500










Stock futures are inching higher, while European markets are little changed, as Fed Chairman Powell is back in the spotlight again today as he testifies before the Senate Banking Committee at 10:00 AM EST. The S&P 500 index, Dow Jones Industrial Average and the Nasdaq Comp all traded to intraday record highs on Wednesday, as the S&P topped the 3,000 level for the first time ever, though the Nasdaq Composite was the only one of the three to close at all-time highs. The gains came after Fed Chairman Jerome Powell raised expectations for an interest-rate cut in his Congressional testimony yesterday. Energy stocks rallied behind a more than 4% spike in oil prices while technology and interest rate sensitive stocks also surged. This morning, oil prices extending yesterday gains, pushing to fresh 7-week highs on reports that Britain is concerned about action by Iranian vessels to stop a commercial oil tanker passage. In Asian markets, The Nikkei Index gained 110 points to 21,643, the Shanghai Index rose 2 points to 2,917 and the Hang Seng Index rose 227 points to 28,431. In Europe, the German DAX is down a few points to 12,365, while the FTSE 100 is little changed at 7,530. Markets focus remains on the Fed and hopes for an interest rate cut later this month, but also a busy day of economic data, including the CPI inflation reports. Markets also a watchful eye on corporate quarterly earnings that are right around the corner, with results kicking off next week.

Events Calendar for Today

·     8:30 AM EST      Weekly Jobless Claims…est. 221K

·     8:30 AM EST      Continuing Claims…est. 1.683M

·     8:30 AM EST      Consumer Price Index (CPI) MoM for June…est. 0.0%

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

·     8:30 AM EST      CPI YoY for June…est. 1.6%

·     8:30 AM EST      CPI Core Ex: Food & Energy YoY for June…est. 2.0%

·     10:00 AM EST    Fed Chairman Powell testifies before Senate Banking Committee

·     10:30 AM EST    Weekly EIA Natural Gas Inventory Data

·     12:15 PM EST    Fed’s Bostic speaks on Monetary Policy at Fiscal Conference

·     12:30 PM EST    Fed’s Bostic speaks at Rocky Mountain Economic Summit

·     2:00 PM EST       Monthly Budget Statement for June…est. (-$7.9B)


Earnings Calendar:

·     Earnings Before the Open: DAL, FAST

·     Earnings After the Close: None


Market Closing Prices Yesterday

·     The S&P 500 Index gained 13.44 points, or 0.45%, to 2,993.07

·     The Dow Jones Industrial Average rose 76.71 points, or 0.29%, to 26,860.20

·     The Nasdaq Composite spiked 60.80 points, or 0.75%, to 8,202.53

·     The Russell 2000 Index advanced 2.46 points, or 0.16% to 1,565.05






WTI Crude















10-Year Note





Sector News Breakdown


·     American Eagle (AEO) authorizes 30M shares for buyback

·     Bed Bath & Beyond (BBBY) Q1 EPS 12c/$2.57B vs. est. 8c/$2.58B; Q1 comp store sales fell (-6.6%) vs. est. decline (-5.6%); said it sees year net sales and EPS at the lower end of ranges

·     Costco (COST) June US comp sales rose 5.4% vs. est. 5.3% and June comps ex: gas rose 5.3% vs. est. 5%

·     Lululemon (LULU) filed mixed securities shelf

·     PriceSmart (PSMT) Q3 EPS 46c/$788.6M vs. est. 46c/$791.38M; Q3 EPS were negatively impacted by 9c per share from costs related to investments to expand omni-channel capabilities, combined with net operating results of the Aeropost legacy business

·     Brinker International, Inc. (EAT) announced it has executed a letter of intent to acquire 116 Chili’s Grill & Bar restaurants from its 14-year franchisee, ERJ Dining

·     Weight Watchers (WW) upgraded to neutral from underweight and up tgt to $22 from $17 at JPMorgan

·     Kroger (KR) and Ocado (OCDGF) announced plans for a new customer fulfillment center, or CFC, in Forest Park, Georgia, a $55M investment that will create more than 400 new jobs


Energy, Industrials & Materials

·     The British government said three Iranian vessels tried to block the passage of a BP-operated tanker through the Strait of Hormuz but withdrew after warnings from a British warship

·     Alcoa (AA) downgraded to hold from buy and cut its tgt to $23 from $35

·     AAR Corp. (AIR) Q4 adjusted EPS 64c/$563M vs. est. 62c/$529.13M; sees 2020 sales $2.1B-$2.2B vs. est. $2.13B; guides year EPS $2.45-$2.65 vs. est. $2.80



·     Artisan Partners Asset Mgmt. (APAM) reported that its assets under management as of June 30, 2019 totaled $113.8 billion. Separate accounts accounted for $59.7 billion of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $54.1 billion

·     Invesco (IVZ) preliminary month-end assets under management, of $1,197.8B was an increase of 3.3%; driven by favorable market returns, foreign exchange, non-management fee earning AUM inflows, and reinvested distributions, partially offset by net long-term outflows and lower money market AUM. FX increased AUM by $2.9B

·     Virtus Investment (VIRT) reported preliminary long-term and total assets under management as of June 30, of $103.3B and $105B (including $1.8B of liquidity assets), respectively



·     Reckitt Benckiser Group Plc agreed to pay as much as $1.4B to settle an investigation into the sales and marketing of a treatment for opioid addiction by former unit Indivior Plc.

·     Sunesis (SNSS) 33.3M share Spot Secondary priced at 60c

·     Neurocrine Biosciences, Inc. (NBIX) said the FDA accepted its New Drug Application (NDA) for opicapone, a novel, once-daily, oral, selective catechol-O-methyltransferase (COMT) inhibitor as an adjunctive treatment to levodopa/carbidopa in patients with Parkinson’s disease experiencing OFF episodes


Technology, Media & Telecom

·     Vishay (VSH) cuts Q2 revenue view to $682M-$688M from $700M-$740M (below est. $715.2M) and cuts Q2 gross margin view to 25.2%-25.8% from 26%-27% citing the result of weaker than expected demand mainly from distribution

·     Amazon (AMZN) to spend $700 mln to retrain 100,000 employees by 2025—WSJ reports

·     The White House is launching an investigation into France’s proposed tax on internet giants like Google (GOOGL), Amazon (AMZN) and Facebook (FB), a move that could lead to U.S. taxes on French imports.

·     EXFO Inc. (EXFO) said Q3 sales increased 1.9% to $73.6M from $72.2M YoY; said Q3 bookings decreased 4.8% to $69.6M for a book-to-bill ratio of 0.95 from $73.1M YoY

·     Microsoft (MSFT) initiated outperform with PT $150 at Cowen saying its position in key secular markets could help add an incremental $100 bln in revenue by FY25


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