Hammerstone’s Early Look

By admin | 09/13/2019


Friday, September 13, 2019

Futures Up/Down % Last
DJ Industrials 104.00 0.38% 27,288
S&P 500 9.50 0.30% 3,022
Nasdaq 25.25 0.32% 7,967

Stock futures are pointing to a higher open, as the Dow Jones Industrial Average looks to make it an 8th straight day gains and more positive headlines on trade between the U.S. and China are providing markets with the fuel its needs to push ever closer to record highs for the S&P 500. President Trump said he’d be open to a smaller-scale, interim trade deal with China. Speaking to reporters outside the White House before departing for a speech in Baltimore, Trump said: “If we’re going to do the deal, let’s get it done”. Earlier in the day, there had been reports that the Trump administration was considering an interim deal, but White House officials had denied them. Also helping, reports that China’s Customs Tariff Commission of the State Council will exclude some agricultural products including soybeans and pork from the additional tariffs on U.S. goods, The People’s Daily said in a tweet, citing official sources. The headlines are lifting stocks again after rising Thursday on trade hopes and central bank easing after the European Central Bank cut its main rate and announced it will buy 20 billion euros of bonds a month. In Asian markets overnight, The Nikkei Index rose 228 points to 21,988, the Shanghai Index was closed, and the Hang Seng Index gained 265 points to 27,352. In Europe, the German DAX is up over 50 points to 12,465, while the FTSE 100 is down a few points to 7,335. Also of importance today, a round of economic data in the U.S. that includes retail sales, sentiment data and import/exports. Thursday’s action left the Dow and S&P just about 0.7% and 0.5% from their respective record closes, while the Nasdaq ended the day 1.6% from its all-time closing high. Also of note, Treasury price extend their recent gains, with the 10-year yield up above the 1.8% level, now nearly 40 bps off its lows of 1.42% just last week and the 30-year up around 2.3% (after record lows of 1.9% last week).

Market Closing Prices Yesterday

  • The S&P 500 Index gained 8.64 points, or 0.29%, to 3,009.57
  • The Dow Jones Industrial Average rose 45.41 points, or 0.17%, to 27,182.45
  • The Nasdaq Composite jumped 24.79 points, or 0.30%, to 8,194.47
  • The Russell 2000 Index dipped -0.65 points, or 0.04% to 1,575.07

Events Calendar for Today

  • 8:30 AM EST       Import Prices MoM for August…est. (-0.5%)
  • 8:30 AM EST       Export Prices MoM for August…est. (-0.3%)
  • 8:30 AM EST       Retail Sales MoM for Aug…est. 0.2%
  • 8:30 AM EST       Retail Sales Ex: Autos MoM for Aug…est. 0.1%
  • 10:00 AM EST     University of Michigan Confidence, Sept-P…est. 90.8
  • 10:00 AM EST     Business Inventories for July…est. 0.3%
  • 1:00 PM EST        Baker Hughes Weekly Rig Count
Macro Up/Down Last
WTI Crude -0.07 55.02
Brent -0.18 60.20
Gold 7.10 1,514.50
EUR/USD 0.0037 1.1102
JPY/USD -0.09 108.01
10-Year Note +0.036 1.808%

World News

  • Boris Johnson will hold Brexit negotiations with European Commission president Jean-Claude Juncker in Luxembourg on Monday, according to UK official

Sector News Breakdown

Consumer

  • Alaska Air Group (ALK) reported a 4.6% increase in traffic on a 4.2% increase in capacity during August, while mainline traffic was up 3.6% during the month and regional traffic was 14.1% higher and load factor increased 30 bps to 86.0%
  • M.D.C. Holding (MDC) announced preliminary Q3 quarter-to-date net new home order activity. For the first two months of the quarter, net new home orders increased 63% YoY to 1,418, compared with 868 for the same period in 2018 driven by a 40% improvement in the monthly sales absorption rate and an increase in the average number of active subdivisions
  • Vince Holding (VNCE) Q2 EPS of 8c on sales $71.4M and sees year sales $295M-$305M
  • The director of the United Auto Workers Union’s Region 5 office in Missouri, has been charged with embezzlement of union money as a federal corruption probe into the union gathers momentum ahead of contract talks with Detroit car maker – WSJ

Energy, Industrials & Materials

  • China’s Customs Tariff Commission of the State Council will exclude some agricultural products including soybeans and pork from the additional tariffs on U.S. goods, The People’s Daily said in a tweet, citing official source
  • Radiant Logistics (RLGT) Q4 adjusted EPS 15c/$233.8M vs. est. 13c/$235.66M; Q4 adjusted Ebitda $11M up 11% YoY

Financials

  • Manning & Napier (MN) reports preliminary AUM $20.7B as of August 31 compared with $21B at July 31, and $21.3B at June 30
  • Cboe Global Markets (CBOE) downgraded to Underperform from Buy at Bank America
  • Tradeweb Markets (TW) upgraded to Buy from Neutral at Bank America

Healthcare

  • Ritter Pharmaceuticals (RTTR) said Phase 3 clinical trial of RP-G28 for lactose intolerance failed to demonstrate statistical significance in its pre-specified primary endpoint; RP-G28 also missed its first secondary endpoint of responders with a meaningful treatment benefit and the remaining secondary endpoints also missed statistical significance differences
  • CUTERA®, INC., (CUTR) said that Health Canada recently granted regulatory approval expanding the indications for use for truSculpt® iD to include reduction of circumference of the abdomen and non-invasive lipolysis (the permanent removal of fat cells)
  • Satsuma Pharmaceuticals (STSA) 5.5M share IPO priced at $15.00
  • SpringsWorks Therapeutics (SWTX) 9M share IPO priced at $18.00
  • Catalyst Pharmaceuticals (CPRX) rises as after the announcement to terminate its common stock offering
  • PRA Health (PRAH) upgraded to Overweight from Sector Weight at KeyBanc

Technology, Media & Telecom

  • Broadcom Inc. (AVGO) Q3 EPS $5.16/$5.52Bvs. est. $5.13/$5.52B; still sees FY net revs $22.5B vs. est. $22.62B; Q3 adjusted gross margin 71% vs. 72% last quarter and compared to 67.3% a year ago
  • Cloudflare (NET) 35M share IPO priced at $15.00
  • WeWork’s (WE) executives, investors and advisers are discussing curbing the voting power of founder Adam Neumann and removing his wife Rebekah from a role in succession planning, in an attempt to save the company’s troubled, the Financial Times reported
  • Park City Group (PCYG) Q4 0c/$4.7M vs. est. 4c/$5.3M; Q2 Total Tier 2 connections increased 25%; full-year cash from operations more than doubled to $4.6M with total cash of $19M; Q4 compliance network reached 89,000, up 42%

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