Hammerstone’s Early Look
By admin |
09/09/2019
Monday, September
9, 2019
Futures
|
Up/Down
|
%
|
Last
|
DJ Industrials
|
55.00
|
0.21%
|
26,863
|
S&P 500
|
7.50
|
0.25%
|
2,988
|
Nasdaq
|
18.50
|
0.24%
|
7,876
|
U.S. stock futures are
pointing to a higher open, looking to add to last week’s strong gains as more
trade hopes with China continue to push markets to the upside. Reports that
China trade negotiators last week offered to buy a small amount of U.S. farm
goods, but that offer could hinge on U.S. concessions, (according to Politico),
are helping sentiment early. Crude prices edged higher on Monday in the first
day of trading after Saudi Arabia’s decision to remove and replace its energy
minister. In Asian markets, The Nikkei Index rose 118 points to 21,318, the
Shanghai Index gained 25 points to move back above the 3,000 level for the
first time since early July, while the Hang Seng Index slipped -9 points to
26,681. In Europe, the German DAX is up 45 points to 12,235, while the FTSE 100
is down about -20 points to 7,260. The British pound rallied following a press
gathering with UK PM Johnson and Irish Prime Minister Leo Varadkar, where the
U.K. prime minister said a deal on the Irish border question can be secured in
time to enable a smooth Brexit. It is an overall quiet start to the week with
few market moving headlines or stories thus far.
Market Closing Prices Yesterday
- The S&P 500 Index inched higher 2.71 points, or 0.09%, to 2,978.71
- The Dow Jones Industrial Average rose 69.31 points, or 0.26%, to 26,797.46
- The Nasdaq Composite slipped -13.75 points,
or 0.17%, to 8,103.07
- The Russell 2000 Index declined -5.58 points, or 0.37% to 1,505.17
Events Calendar for Today
- 3:00 PM
EST Consumer Credit for July…est.
$16.0B
Earnings Calendar:
- Earnings Before the Open: None
- Earnings After the Close: ASPU, LAKE, LMNR
Other Key Events:
- 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
- HC Wainwright Healthcare Conference, 9/9-9/10,
in New York
- Morgan Stanley 17th Annual Healthcare
Conference, 9/9-9/11, in New York
Macro
|
Up/Down
|
Last
|
WTI Crude
|
0.28
|
56.80
|
Brent
|
0.23
|
61.77
|
Gold
|
2.20
|
1,517.70
|
EUR/USD
|
0.0005
|
1.1034
|
JPY/USD
|
0.11
|
107.03
|
10-Year Note
|
+0.034
|
1.594%
|
World News
- China’s exports unexpectedly contracted in
August with sales to the U.S. shrinking by 16% from a year earlier, as the
trade war between the two nations escalates. Exports decreased 1% in dollar
terms from a year earlier (vs. est. up 2.2%), while imports declined 5.6% (vs.
est. -6.4%), leaving a trade surplus of $34.84 billion, the customs
administration said
- German exports unexpectedly rose in July,
as exports adjusted for seasonal and calendar effects rose 0.7% on the month to
115.2 billion euros ($126.98 billion) in July
- Samples taken by the U.N. nuclear watchdog
at what Israel’s prime minister called a “secret atomic warehouse” in Tehran
showed traces of uranium that Iran has yet to explain, two diplomats who follow
the agency’s inspections work closely say- Reuters
- Japan’s economy grew an annualized 1.3%
in April-June, less than the initial estimate of a 1.8% expansion, revised data
from the Cabinet Office showed Monday.
- One of the strongest typhoons to hit the
Japanese capital in recent years made landfall just east of Tokyo on Monday,
bringing record-breaking winds, stinging rain and sending some rivers close to
the top of their banks.
S&P MidCap 400 and S&P SmallCap 600 Index
Changes affective Monday 9/23:
- S&P SmallCap 600 constituents Selective
Insurance Group Inc. (SIGI), Repligen Corp. (RGEN), and FirstCash Inc.
(FCFS) will move to the S&P MidCap 400. S&P MidCap 400 constituents
Signet Jewelers Ltd (SIG), Range Resources Corp. (RRC), Tupperware Brands Corp.
(TUP), The Michaels Companies Inc. (MIK), QEP Resources Inc. (QEP), Valaris plc
(VAL) and McDermott International Inc. (MDR) will move to the S&P SmallCap
600.
- Etsy Inc. (ETSY), Pilgrim’s Pride Corp. (PPC),
KAR Auction Services Inc. (KAR), Antero Midstream Corp. (AM), Owens Corning
Inc. (OC), and Penumbra Inc. (PEN) will join the S&P MidCap 400.
- Warrior Met Coal Inc. (HCC), Cadence
Bancorporation (CADE) and GCP Applied Technologies Inc. (GCP) will join the
S&P SmallCap 600.
- Cars.com (CARS) and Mallinckrodt plc (MNK) will
be removed from the S&P MidCap 400 as they are no longer representative of
the mid-cap market space. Kirkland’s Inc. (KIRK), Nautilus Group Inc. (NLS),
LSC Communications Inc. (LKSD), Ascena Retail Group Inc. (ASNA), Superior
Industries International (SUP), Superior Energy Services Inc. (SPN) and Kopin
Corp. (KOPN) will be removed from the S&P SmallCap 600 as they are no
longer representative of the small-cap market space
Sector News Breakdown
Consumer
- Spirit Airlines Inc. (SAVE) said it sees
Q3 total revenue per available seat miles (TRASM) to be down 2.5% to 3.5% YoY
due to Hurricane Dorian, worse than its prior view of down 1.0% to 2.0% before
the hurricane; said it canceled 768 flights due to Hurricane Dorian
- Air France-KLM warned over bookings
saying “close-in bookings in the peak travel period are weaker than foreseen in
view of softening macro-economic environment.”
- Lululemon (LULU) mentioned in Barron’s
after it reported blowout financial results that sent its stock 8% higher the
next day, as the athleisure trend becomes a lasting consumer shift, not a fad,
and more gains for comfortable fabrics should be expected
- Royal Caribbean Cruises (RCL) boosted its
quarter dividend to 78c per share from 70c
- Dean Foods (DF) concludes its review of
strategic alternatives including possible sale of the company, says standalone
operating plan under recently appointed CEO Eric Beringause is the best way to
generate long-term shareholder value.
- Famous Dave’s (DAVE) board approved a
holding company reorganization whereby it will become a wholly owned subsidiary
of a new public holding company, BBQ Holdings (BBQ)
- Nissan Motor (NSANY) CEO Hiroto Saikawa
has decided to step down days after admitting he received improperly inflated
compensation, according to Nikkei Asian Review
- Tesla (TSLA) CEO Elon Musk said on
Twitter that, “For the remainder of September, Tesla is permanently
waiving the $1,500 solar removal fee requirement
Energy
- The city of San Francisco has offered to buy PG&E
Corp’s (PCG) power lines and other electrical system infrastructure serving
the city for $2.5 billion, according to the utility, which sought Chapter 11
bankruptcy protection in January
- Pioneer Power (PPSI) announced that its
board has declared a one-time special cash dividend of $1.37 per share
- Baker Hughes (BHGE) said that the Baker
Hughes international rig count for August 2019 was 1,138, down 24 from the
1,162 counted in July 2019, and up 130 from the 1,008 counted in August 2018
Healthcare
- Amgen (AMGN) shares may be active after
the highest dose of Amgen’s AMG 510 shrank tumors in seven of 13 patients (54%)
based on their first imaging scans post-treatment, while the disease was stable
in the remaining six, according to results the World Conference on Lung Cancer
- ACADIA Pharmaceuticals Inc. (ACAD)
announced that its Phase 3 HARMONY study, a double-blind, placebo-controlled
relapse prevention trial evaluating pimavanserin for the treatment of
dementia-related psychosis, met its primary endpoint, demonstrating a highly statistically
significant longer time to relapse of psychosis with pimavanserin compared to
placebo in a planned interim efficacy analysis
- Chiasma (CHMA) files $200M mixed
securities shelf
Industrials & Materials
- Alcoa (AA) said it will be restructuring,
with a plan to eliminate its business unit structure and consolidate sales,
procurement and other commercial capabilities at an enterprise level.
- Barron’s said when it comes to the Boeing
(BA) 737 MAX, investors have focused mainly on when the troubled jet will
return to service, according to “Europe Introduces a New Boeing 737 MAX
Risk” article. That process may not be as simple as Boeing Co (BA)
investors hope.
- Rayonier Advanced Materials (RYAM) said
late Friday it has suspended its quarterly cash dividend in order to prioritize
its cash flow to repay indebtedness and fund capital investments and working
capital needs
- Science Applications International (SAIC)
was awarded a U.S. Defense Logistics Agency contract valued at up to $950
million
Technology, Media & Telecom
- Sohu.com (SOHU) announced that it has
submitted to the board of its majority-owned subsidiary Changyou.com (CYOU)
a preliminary non-binding proposal to acquire all of the outstanding Class A
ordinary shares of Changyou, including Class A ordinary shares represented by
American Depositary Shares, that are not already owned by Sohu for a purchase
price of $5.00 per Class A ordinary share, or $10.00 per ADS, in cash
- United Microelectronics (UMC) reports
revenue grew 0.02% to NT$13.18B in August; YTD revenue slipped 8.04%% to
NT$95.53B
- AT&T (T), McKesson (MCK) and D.R.
Horton (DHI) are three stocks for “inpatient investors,” Barron’s said, due
to free-cash flow, enticing valuation and potential for millennial home buying,
respectively
- DBV Technologies (DBVT) files to sell
$300M of ordinary shares
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