After Hours Summary: WFM +3% following earnings/guidance and dividend/buyback/CFO news... SNAP -23%, MNKD -19%, SYMC -7%, ELF -6% following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: SGMO +42.5% (also announced strategic collaboration with Pfizer), RELY +26.5%, PEGA +11.4%, XONE +10.5%, SCLN +4.6%, PFIE +4.5% (light volume), LPSN +4.4% (ticking higher), WFM +3.2% (also increases dividend, announces share repurchase; updates strategic initiations; names new CFO), ASM +3.2% (light volume), XON +2.8%, VUZI +2.7%, AYX +2.5%, RLGT +2.3%, ATH +2.3%, OMER +2.2%, DRYS +2.1%, EEP +2%, INO +1.7%, PCYG +1.2%, IOTS +1% (thinly traded), WATT +1%
Companies trading higher in after hours in reaction to news: PED +50.5% (continued strength - filed 10-Q and regained NYSE compliance today), MRK +3.1% (confirms FDA approval of KEYTRUDA (pembrolizumab) as first-line combination therapy with pemetrexed and carboplatin for patients with metastatic NSCLC irrespective of PD-L1 expression), NMM +2.3% (light volume; provides update for acquisition of 14-Vessel container fleet from Rickmers Maritime), ORLY +1% (to increase the authorization amount under its share repurchase program by an additional $1 billion, raising the aggregate authorization under the program to $8.75 billion)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: NH -24.4%, SNAP -23.2%, MNKD -18.8%, BCEI -16.8% (ticking lower), KGJI -16.7%, RGSE -16.3%, AVNW -16%, FRSH -11.8%, RESN -11.5% (light volume), NYRT -9.7%, NVCN -7.9%, HOLX -7.5%, SYMC -7.2%, ELF -6.2%, ANTH -6.2%, QUIK -4.2%, RUN -3.3%, IMMU -2.6%, STML -2.5% (light volume), AMBC -1.8%
Companies trading lower in after hours in reaction to news: ITUS -35.3% (proposed registered public offering of its common stock), CNAT -14.8% (to offer and sell shares of its common stock in an underwritten public offering), MTBC -4.6% (announces $2.3 mln registered direct offering at $2.30 per share), SP -4.6% (announces certain existing stockholders intend to offer for sale 3.6 mln shares of its common stock in a secondary offering), ABR -3.3% (plans to make a public offering of 9,500,000 shares of its common stock), BCRX -1.8% (files for 11,710,951 share common stock offering by holders), CVTI -1.1% (US District Court for the Southern District of Ohio issued a pre-trial decision against one of its subsidiaries relating to a cargo claim incurred in 2008; co is reviewing its options regarding further appeals), MEOH -1.1% (initiated with Underperform at Bernstein; tgt $36), USFD -0.7% (commences 35 mln common stock offering by Clayton, Dubilier & Rice and KKR and certain members of management and the board)
Notable post-earnings movers
- Post-earnings gainers: SGMO +46%, PEGA +6.9%, IOTS +6.7%, LPSN +4.4%, CUR +4%, ASYS +3.3%, DRRX +3%, VSTM +2.5%, RLGT +2.3%, WFM +2.1%
- Post-earnings losers: NH -41.9%, SNAP -24.3%, RGSE -20%, BCEI -19.4%, FRSH -13.8%, MNKD -11.9%, AVNW -9.7%,SYMC -6.8%, NVCN -6.1%, GALE -5.5%, ANTH -4.9%, ELF -4.6%, FOXA -4.3%, AGTC -2.5%
Closing Market Summary: Another Day, Another Flat FinishThe S&P 500 (+0.1%) finished at a new record close (just barely), but the headline is much more exciting than the reality. Wednesday's session was rather quiet at the macro level with the benchmark index hovering within a seven-point range. The Nasdaq (+0.1%) also eked out another record close, its third of the week, while the Dow (-0.2%) settled a step below its unchanged mark. The Russell 2000 outperformed the major U.S. indices, adding 0.6%.
Investors shrugged off President Trump's unexpected firing of FBI director James Comey, even though some mainstream media outlets suggested that the event may forestall tax reform efforts. The CBOE Volatility Index (VIX 9.99, +0.03, +0.3%) remained at a historically low level at Wall Street's closing bell.
Crude oil's 3.1% advance secured the energy sector's (+1.1%) spot atop the day's leaderboard. The commodity rallied following the Energy Information Administration's weekly inventory report, which showed a larger than expected draw in U.S. crude stocks for the week ended March 5 (5.3 million barrels actual vs 2.0 million barrels consensus). WTI crude settled at $47.28/bbl.
Out of the ten remaining sectors, seven--financials (+0.3%), materials (+0.4%), technology (+0.4%), consumer staples (+0.1%), utilities (+0.2%), telecom services (+0.3%), and real estate (+0.6%)--finished in the green. The top-weighted technology sector's positive performance was underpinned by chipmakers, which rallied around NVIDIA's (NVDA 121.29, +18.35) upbeat earnings report. The company spiked 17.8% after reporting better than expected earnings/revenues and issuing positive guidance. The PHLX Semiconductor Index added 2.1%.
Conversely, the three laggards--consumer discretionary (-0.3%), industrials (-0.4%), and health care (-0.3%)--received no help on the earnings front. Walt Disney (DIS 109.66, -2.41) and Priceline (PCLN 1824.77, -86.36) weighed on the consumer discretionary sector, losing 2.2% and 4.5%, respectively. Both companies reported better than expected earnings, but PCLN missed top-line estimates and issued disappointing guidance.
Allergan (AGN 229.72, -8.79) was the worst-performing component in the health care sector, tumbling 3.7%, despite reporting upbeat earnings/revenues and providing positive guidance. Analysts at Goldman did downgrade AGN shares to 'Neutral' from 'Buy' on Wednesday morning, which contributed to the company's poor performance. Biotech names also weighed on the sector, evidenced by the 0.4% decrease in the iShares Nasdaq Biotechnology ETF (IBB 291.89, -1.06).
In the industrial sector, Boeing (BA 183.18, -2.31) took center stage following reports that the company halted 737 MAX flights for engine inspections. BA shares finished lower by 1.3%.
U.S. Treasuries hovered just above their flat lines for the majority of Wednesday's session, however, a late-afternoon downtick took them into the red. The benchmark 10-yr yield settled one basis point higher at 2.41%.
On the data front, investors received April Import/Export Prices, the April Treasury Budget, and the weekly MBA Mortgage Applications Index:
- Import prices excluding oil rose 0.3% in April after adding 0.2% in March. Export prices excluding agriculture increased 0.1% in April after rising 0.1% in March (revised from 0.2%).
- The key takeaway from the report is that it won't alter the market's current assumptions about the likely path of the Fed's monetary policy.
- The Treasury Budget for April showed a surplus of $182.4 billion versus a surplus of $106.5 billion for April 2016.
- The Treasury Budget data is not seasonally adjusted, so the April surplus cannot be compared to the $176.2 billion deficit registered in March.
- The weekly MBA Mortgage Applications Index increased 2.4% to follow last week's 0.1% downtick.
Tomorrow, market participants will receive April PPI (consensus 0.2%) and Initial Claims (consensus 242,000). Both reports will cross the wires at 8:30 ET.
- Nasdaq Composite +13.9% YTD
- S&P 500 +7.2% YTD
- Dow Jones Industrial Average +6.0% YTD
- Russell 2000 +3.1% YTD
Snap misses by $0.26 (GAAP), misses on revs (22.97 -0.35)
|
*BOEING TEMPORARILY SUSPENDS 737 MAX FLIGHTS ON ENGINE ISSUE
Walt Disney: Color on Quarter (112.07)
FBR reiterates Outperform; $116 tgt. Firm notes that DIS's F2Q17 featured EPS that were a little better than we had modeled: $1.50, up 10% YOY, versus our $1.45 estimate (and the $1.41 FactSet consensus). However, the call also featured slightly cautious commentary on key TV secular issues in advertising and pay TV subs, which could stoke concerns that tend to weigh on DIS and peer multiples.
Needham reiterates Hold. Firm notes for FY2Q17, DIS reported revenue of $13.336B, up 3% y/y and 1% below their estimates, and EPS of $1.50 (up 10% y/y and 7% above our estimates). What they liked most about the call was $200mm lower CapX guidance, raised share repurchases, and higher operating FCF. In the near term, for FY3Q17, DIS stated that Cable Network cost growth would be 16%, driven by a $400mm step-up in costs related to ESPN's new NBA deal, followed by another $200mm rise in FY4Q17. In addition, margins at Parks should be under pressure in 2H17 owing to Pandora opening in Orlando, and Star Wars lands, and Guardians in LA, a hotel in Hong Kong, Shanghai 1st quarter profits, and 18 days of dry dock for one of DIS's ships.
RBC reiterates Outperform; $130 tgt. Firm notes DIS provided a strong set of results including a 5% beat on OI, and they bring estimates up. However, the company noted modest acceleration in sub losses. They think this no longer poses a grave danger to the thesis given the strength of non-cable assets. They maintain their target as the narrative evolves.
Shares of Disney are trading 2.3% lower at $109.45/share in pre-market trading
Early premarket gappersGapping up:
- ESIO +23.5%, MNKD +18.8%, ANF +15.6%, ARRY +14.5%, SEDG +14.2%, RCM +14.1%, NVDA +12.1%, CUR +10.9%, ATHX +10.8%, REXX +10.6%, NAVB +9.8%, VSLR +8.8%, COHR +8.7%, EA +8.3%, HPJ +8.2%, COTY +7.6%, MTBC +7.1%, OCRX +7%, TRIP +6.2%, FAC +5.9%, VCEL +5.9%, IAG +5.6%, TRUE +5.4%, FBM +5.3%, AAXN +5.2%, CROX +5.2%, MCHP +4.9%, GSVC +4.6%, NBIX +4.4%, HEAR +4.3%, RPD +4.2%, GFI +3.8%, XELB +3.7%, AGI +3.5%, XOG +3.5%, CLDX +3.2%, SLD +3%, AMD +2.9%, YUME +2.8%, WIX +2.8%, SBGL +2.7%, NUAN +2.7%, YY +2.6%, BID +2.4%, EVRI +2.3%, AU +2%, ING +2%, TRCO +1.9%, GDX +1.6%, INGN +1.6%, AUXO +1.5%, ABX +1.4%, GDOT +1.4%, ATHM +1.4%, HPT +1.4%, BBL +1.2%, RIO +1.2%, BHP +1.1%, LEU +1.1%, INFI +1.1%, NVO +1%, HSBC +1%
Gapping down:
- YELP -26.7%, FOSL -22.9%, PLPM -16.7%, KRNT -15.9%, ACIA -13.8%, DEPO -13.5%, FUEL -12.3%, EKSO -10.5%, SSNI -10.4%, CLNT -10.1%, OPK -9.7%, TCX -9.5%, ZAYO -7.3%, TIME -6.6%, COGT -6.3%, EARN -5.7%, ZSAN -5.5%, MTRX -5.5%, SPWR -5.3%, MZOR -5.3%, ARNA -4.7%, XCO -4.7%, HALO -4.6%, AQMS -4.6%, DPW -4.5%, INN -4.2%, RICK -4.1%, ITEK -4.1%, ACAD -3.9%, PRI -3.8%, CXRX -3.7%, OREX -3.5%, AKBA -3.5%, AMID -3.5%, PCLN -3.2%, MATR -3.2%, JAZZ -3.1%, PEIX -2.9%, WSTC -2.5%, MIDD -2.5%, EGLT -2.4%, GERN -2.3%, X -2.1%, DIS -2.1%, SLF -1.7%, LSCC -1.6%, SAGE -1.6%, OCLR -1.5%, COKE -1.5%, CLNS -1.4%, AGN -1.3%, AGN -1.3%, PSEC -1.3%, SUPN -1.2%, W -1.1%, WFC -1.1%, WAIR -1.1%, LITE -1%, IPHI -1%, GWPH -1%
ISRAEL
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