Hammerstone’s Early Look
By admin |
09/10/2019
Tuesday, September
10, 2019
Futures
|
Up/Down
|
%
|
Last
|
DJ Industrials
|
-46.00
|
0.17%
|
26,794
|
S&P 500
|
-5.50
|
0.19%
|
2,972
|
Nasdaq
|
-21.50
|
0.27%
|
7,809
|
Stock futures point to a
slightly lower open, giving back some of yesterday’s gains in what is expected
to be another slow day of news amid light economic data, only a handful of
earnings, and no Fed speakers on the agenda, though there are several sell-side
related conferences that could produce guidance or commentary that could move
some sectors. In corporate news today, Apple (AAPL) holds its annual product
announcement in Cupertino, CA later this afternoon (1:00 PM EST) where no
phones are expected. Overseas, North Korea launched two projectiles toward the
sea on Tuesday, South Korea’s military said, hours after the North offered to
resume nuclear diplomacy with the United States but warned its dealings with
Washington may end without new U.S. proposals. In Asian markets, The Nikkei
Index rose 73 points to 21,392, the Shanghai Index fell -3 points to 3,021 and
the Hang Seng Index inched higher 2 points to 26,683. In Europe, the German DAX
is down -15 points to 12,210, while the FTSE 100 is down a few points at 7,225.
European markets look to this Thursday’s central bank meeting where a rate cut
or additional easing measures are somewhat expected to help their slowing
economy. In China, its State Administration of Foreign Exchange said it’s
decided to cancel the investment quota limitations of qualified foreign
institutional investors and RMB qualified foreign institutional investors.
Market Closing Prices Yesterday
- The S&P 500 Index slipped -0.28 points, or 0.01%, to 2,978.43
- The Dow Jones Industrial Average rose 38.05 points, or 0.14%, to 26,835.51
- The Nasdaq Composite dropped -15.64 points,
or 0.19%, to 8,087.44
- The Russell 2000 Index advanced 19.06 points, or 1.27% to 1,524.23
Events Calendar for Today
- 6:00 PM
EST NFIB Small Business Optimism for
August
- 7:45 AM EST
ICSC Weekly Retail Sales
- 8:55 AM EST
Johnson/Redbook Weekly Sales
- 10:00 AM EST JOLTs Job
openings for July
- 4:30 PM
EST API Weekly Inventory Data
Earnings Calendar:
- Earnings Before the Open: CBKC, FRAN, HDS
- Earnings After the Close: FARM, GEM, LTRX, PLAY,
RH, ZS
Other Key Events:
- Apple (AAPL) product event announcements
- 2019 World Conference on Lung Cancer, 9/7-9/10
in Barcelona, Spain
- Barclay’s Global Financial Services Conference,
9/9-9/11, in New York
- Credit Suisse 32nd Annual Basic Materials
Conference, 9/9-9/11, in New York
- Deutsche Bank Technology Conference, 9/10-9/11,
in Las Vegas
- HC Wainwright Healthcare Conference, 9/9-9/10,
in New York
- Morgan Stanley 17th Annual Healthcare
Conference, 9/9-9/11, in New York
- Wells Fargo 8th Annual Net Lease REIT Forum, in
New York
Macro
|
Up/Down
|
Last
|
WTI Crude
|
0.29
|
58.14
|
Brent
|
0.28
|
62.87
|
Gold
|
-8.50
|
1,502.60
|
EUR/USD
|
-0.0008
|
1.104
|
JPY/USD
|
0.12
|
107.36
|
10-Year Note
|
-0.017
|
1.626%
|
World News
- The National Federation of Independent
Business (NFIB) small business optimism index fell 1.6 points to a
seasonally adjusted 103.1 in August, the worst showing since March. There was
an 8-percentage point drop in those expecting the economy to improve, and a
5-point drop in those expecting real sales higher
- In its budget review published Monday afternoon,
the CBO said the deficit for the first 11 months of the fiscal year was
$1.07 trillion, up $168 billion from last year. Outlays have climbed by 7%, on
rises in both the number and amount of Social Security and Medicare claims,
which both rose 6%. Medicaid outlays rose 5%.
Sector News Breakdown
Consumer
- The Wendy’s Company (WEN) shares fell
-6%; said it sees 2019 adjusted EPS down (3.5%-6.5%) vs. prior view up 3.5%-7%
– says to remove 2020 goals due to breakfast launch; announced that it plans to
launch its breakfast menu, currently available in more than 300 restaurants,
across the U.S. system in 2020 – watch shares of DNKN, MCD, SBUX
- HD Supply (HDS) shares fell -2%; Q2
adjusted EPS $1.08/$1.6B vs. est. $1.08/$1.63B; cuts FY19 adjusted EPS view to
3.45-$3.60 from $3.52-$3.70 (est. $3.58) while also lowers FY19 revenue view to
$6.1B-$6.2B from $6.25B-$6.35B (est. $6.26B)
- Casey’s (CASY) Q1 revs $2.63B vs. est.
$2.61B and EPS $2.31; Q1 same store gallons -2% vs. +0.50% YoY and Q1
same-store grocery sales +3.2%; makes no changes to FY2020 guidance
- Boyd Gaming Corporation (BYD) and FanDuel
Group today announced the debut of FanDuel Sportsbooks at four Boyd Gaming
properties: Blue Chip Casino Hotel and Spa in Michigan City, Indiana; Diamond
Jo Casino in Dubuque, Iowa; Diamond Jo Casino in Northwood, Iowa; and Belterra
Casino Resort in Florence, Indiana
- Moody’s Investors Service downgraded the senior
unsecured debt rating of Ford Motor Company (F) to Ba1 from Baa3, and
concurrently assigned the company a Ba1 Corporate Family Rating and an SGL-1
Speculative Grade Liquidity rating. The outlook is stable
- Hawaiian Airlines (HA) reports August
traffic up 2.8%, capacity down 1.9%; load factor was up 4.0 pts to 88.4%
- Limoneira (LMNR) Q3 adjusted EPS
0c/$50.9M vs. est. loss (2c)/$48.87M; said they continued to face pricing
headwinds due to larger than normal size fruit which resulted in low 50% fresh
utilization and $18.00 price per carton; backs year EPS outlook for loss of
(22c-21c)
- Laureate Education (LAUR) files to sell
15M shares of common stock
Energy, Industrials & Materials
- Electricite de France shares dropped in
Europe after saying its majority-owned nuclear reactor construction firm
Framatome had found anomalies in manufacturing parts. The faults concern both
in-service components as well as new components which have not yet been
installed on any sites.
- PG&E Corp. (PCG) on Monday unveiled a
plan to settle billions of dollars in wildfire-related claims and exit
bankruptcy next year as it seeks to prevent creditors from taking over the
embattled company. PG&E Plan Offers Nearly $18 Billion to Wildfire Victims
and Public Entities
- Repsol (REPYY) is in advanced discussions
to buy some deepwater assets in the Gulf of Mexico from Exxon Mobil (XOM)
for about $1B according to Reuters
- Schlumberger (SLB) upgraded to Overweight
with a price target of $51 at Morgan Stanley, saying that while the stock
struggled over the past several years, its relative outlook is improving
- Fortis (FTS) announced its five-year
capital investment plan of $18.3B for the period 2020 to 2024, up $1.0B from
the prior year’s plan
- Amplify Energy (AMPY) files to sell
12.29M shares of common stock for holders
Financials
- Boston Properties (BXP) upgraded to Equal
Weight on valuation at Morgan Stanley
Healthcare
- Lakeland (LAKE) Q2 GAAP EPS 17c/$27.4M
(up 7.2% YoY) vs. est. 6c/$25.72M
- Zoetis Inc. (ZTS) announced that its
scientists presented positive efficacy data for the company’s investigational,
triple combination parasiticide product at the 2019 Triennial meeting of the
American Heartworm Society (AHS) in New Orleans
- Aveo Oncology’s (AVEO) kidney cancer drug
Fotivda (tivozanib) was unable to show better prolonged survival than Bayer’s
Nexavar
Technology, Media & Telecom
- Tegna (TGNA) announces $900M offering of
senior notes due 2029
- MercadoLibre (MELI) upgraded to Buy from
Neutral at BTIG
- Taiwan Semiconductor Manufacturing (TSM)
reports August revenue of NT$106.12B (+25.2% M/M) (+16.5% Y/Y)
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