Morning Preview: June 13, 2019

Auto PostDaily Market Report - TEST

Early Look

Thursday, June 13, 2019





DJ Industrials




S&P 500










U.S. futures point to a bounce after slipping for a second straight session on Wednesday, dragged down by weaker energy and financial stocks (on lower oil and rising interest cut expectations), but look to steady ahead of jobless claims and import data later this morning. Oil prices surged today after reports of an attack on two tankers near Iran, boosting the region’s oil stocks. Some investors also took weak U.S. inflation data released yesterday as a positive sign, as it might boost the chances of a Fed rate cut in July. In Asian markets, The Nikkei Index fell -97 points to settle at 21,032, the Shanghai Index was little changed holding at 2,910, and the Hang Seng Index dipped -13 points to 27,294. In Europe, the German DAX is up around 60 points at 12,175, while the FTSE 100 is up about 15 points to 7,385. U.S. stocks ended lower on Wednesday, with bank stocks declining as prospects of a U.S. interest rate cut rose following softer inflation data (CPI) and as energy shares tumbled along with oil prices, as WTI crude sunk to the lowest levels since mid-January on bearish inventory data. In a positive sign for “risk-on” appetite from investors, software IPO CrowdStrike (CRWD) stock jumped nearly 100% in its stock trading debut on Wednesday, adding to recent IPO strength from the likes of Zoom Media (ZM), and Beyond Meat (BYND).

Market Closing Prices Yesterday

·     The S&P 500 Index dropped -5.88 points, or 0.20%, to 2,879.84

·     The Dow Jones Industrial Average fell -43.68 points, or 0.17%, to 26,004.83

·     The Nasdaq Composite slumped -29.85 points, or 0.38%, to 7,792.72

·     The Russell 2000 Index advanced 0.68 points, or 0.05% to 1,519.79


Events Calendar for Today

·     8:30 AM EST      Weekly Jobless Claims…est. 215K

·     8:30 AM EST      Continuing Claims…est. 1.66M

·     8:30 AM EST      Import Prices MoM for May…est. (-0.2%)

·     8:30 AM EST      Export Prices MoM for May…est. (-0.2%)

·     9:45 AM EST      Bloomberg Consumer Comfort Index…prior 61.7

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


Earnings Calendar:

·     Earnings Before the Open: DEST, DLTH

·     Earnings After the Close: AVGO, VNCE


Other Key Events:

·     European Hematology Association 24th annual meeting, 6/13-6/14, in Amsterdam

·     E3 2019 Conference, 6/10-6/14, in Los Angeles, CA

·     Deutsche Bank Global Consumer Conference, 6/11-6/13, in Paris

·     Goldman Sachs 40th Annual Global Healthcare Conference, 6/11-6/13, in CA






WTI Crude















10-Year Note





World News

·     Deployment of National Guard forces to Mexico’s southern border will advance quickly under a migration control deal signed last week with the United States, Foreign Minister Marcelo Ebrard said on Wednesday

·     A Democratic-led House committee voted in favor of holding Attorney General Barr and Commerce Secretary Ross in contempt of Congress for defying congressional subpoenas related to adding a citizenship question to the 2020 U.S. census

·     Former White House Communications Director Hope Hicks, once a close aide to President Donald Trump, agreed to give a closed-door interview to the U.S. House of Representatives Judiciary Committee on June 19, the panel’s chairman said on Wednesday.


Sector News Breakdown


·     Lululemon (LULU) Q1 EPS 74c/$782M vs. est. 70c/$755.1M; total comparable sales increased 14%, or increased 16% on a constant dollar basis; sees Q2 PS 86c-88c on revs $825M-$825M vs. est. 88c/$834.4M; Q1 comp sales ex-FX +16% vs. est. 11%; 1Q direct-to-consumer revenue ex-FX +35% vs. +60% YoY, gross margin 53.9% vs. 53.1% YoY and 1Q operating margin 16.5% vs. 16.1% YoY; raises FY19 EPS view to $4.51-$4.58 from $4.48-$4.55 (est. $4.64) and raises FY19 revenue view to $3.73B-$3.77B from $3.7B-$3.74B (est. $3.77B)

·     RH (RH) shares rose 20%; Q1 adjusted EPS $1.85/$598M vs. est. $1.53/$583.6M; 1Q adjusted operating margin 11.8% vs. 9.60% YoY and Q1 adjusted gross margin 39.1%; raises year EPS view to $8.76-$9.27 from prior $8.05-$8.69 and also raises year rev outlook

·     Oxford Industries (OXM) shares rose 13%; Q1 adjusted EPS $1.30/$282.0M vs. est. $1.21/$277.29M; sees Q2 EPS $1.80-$1.90 on revs $300M-$310M vs. est. $1.93/$313.1M; Q1 comp sales rose 2%; backs FY19 EPS view of $4.45-$4.65 and backs FY19 revenue view of $1.135B-$1.155B

·     Tailored Brands (TLRD) Q1 EPS 21c/$781M vs. est. 15c/$776M; sees Q2 EPS 65c-70c below the 96c estimate; retail comps -3.2% vs +2.1% yr ago; sees Q2 Men’s Wearhouse comp sales down 3%-5% and sees Q2 Jos. A. Bank comps down 2%-4%

·     Uber (UBER) is testing restaurant food deliveries by drone. The company’s Uber Eats unit began the tests in San Diego with McDonald’s (MCD) and plans to expand to other restaurants later this year.

·     Hertz (HTZ) disclosed that it on June 26, it will distribute to shareholders subscription rights to buy up to 57.92 million new shares in a rights offering

·     Laureate Education (LAUR) files to sell 10M shares for holder

·     Walmart Inc. (WMT) said it is absorbing what remains of staff into the rest of its operations, winding down the startup it bought for $3.3 billion three years ago while continuing to run the website



·     Crude prices surged Thursday, rebounding from a 4% plunge yesterday amid reports that two oil tankers had been attacked in the Gulf of Oman, with fresh tensions in that region potentially posing a threat to global supplies. WTI crude and Brent both closed at the lowest levels since mid-January yesterday, with Brent below $60 per barrel

·     OPEC cuts 2019 global oil demand growth forecast to 1.14 million bpd (prev. forecast 1.21 million bpd) in its monthly report; OPEC for 2H says significant downside risks remain from trade disputes spilling over to global demand growth; OPEC sees 2019 demand for its crude averaging 30.52 mln bpd, down 60,000 bpd from previous forecast while leaves 2019 non-OPEC oil supply growth forecast at 2.14 million bpd

·     Callon Petroleum Co (CPE) sees 2019 operational capex $495 – $520M, sees 2019 total production 38.0 mboe/d – 39.5 mboe/d; updating 2019 guidance to account for impact of divestiture, announced acreage trade involving producing properties in midland county and lowering 2019 estimates for operational capital expenditures to reflect realized efficiencies and cost reductions



·     AllianceBernstein L.P. (AB) said preliminary assets under management decreased to $560 billion during May 2019 from $568 billion at the end of April. The 1.4% decline was due to market depreciation, partially offset by net inflows into all three distribution channels – Institutions, Retail and Private Wealth

·     Manning & Napier (MN) preliminary AUM $20.6B as of May 31 which compared with $21.2B at April 30, and $21.1B at March 31

·     Hercules Capital (HTGC) 5M share Spot Secondary priced at $12.64



·     Savara (SVRA) shares fell over 75%; says IMPALA study did not meet primary endpoint; said top line data from its Impala Phase 3 study evaluating Molgradex did not meet primary endpoint of alveolar-arterial oxygen gradient; A-aDO2 improvement of 12.1 mmHg was observed in the continuous dosing arm, compared to an average A-aDO2 improvement of 8.8 mmHg in the placebo arm

·     Seres Therapeutics (MCRB) files to sell $60M in common stock


Industrials & Materials

·     RPM International Inc. (RPM) announced that its Tremco business has acquired Schul International Co., LLC, a manufacturer of joint sealants for commercial construction, and Willseal LLC, a business that markets and sells Schul products

·     AerCap (AER) authorizes new $200M share repurchase program

·     Workers at Codelco’s third-largest mine plan to down tools on Friday after unions failed to reach an agreement with the world’s top copper miner following weeks of wage negotiations.


Technology, Media & Telecom

·     Fiverr (FVRR) 5.26M share IPO priced at $21.00

·     Uber Technologies Inc (UBER) unveiled its newest Volvo self-driving car in Washington on Wednesday as it works to eventually deploy vehicles without drivers under some limited conditions.

·     The chief executive of Telegram, a popular encrypted messaging app, said on Wednesday the messaging service experienced a “state actor-sized” cyber-attack and pointed to China as its likely country of origin. – Reuters


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