>>> Notable post-earnings movers

Notable post-earnings movers
  • Post-earnings gainers: ESIO +19.2%, NVDA +11.9%, MXWL +7.7%, TRIP +7.6%, SEDG +5.7%, TRUE +4.9%, NUAN +4.6%, COHR +4.5%, ALRM +4.4%, AAXN +3.7%, PRAA +3.7%, XOG +3.5%, EA +3.3%, RPD +2.9%
  • Post-earnings losers: YELP -28%, FOSL -16.2%, ACIA -13.8%, FUEL -13.3%, DEPO -12.8%, ZSAN -10.3%, ENPH -7.8%, KRNT -6.5%, SPWR -5.6%, LGND -4%, PCLN -3.6%, OREX -3.5%, PEIX -2.9%, SCSC -2.2%, MXL -2.2%

>>> US CLose Dow -0.17% S&P -0.10% Nasdaq +0.29% Russell +0.02%

Closing Market Summary: Major Indices Finish Flat on Tuesday

The Nasdaq (+0.3%) opened Tuesday's session in positive territory and never looked back, settling at a new record high. Meanwhile, the S&P 500 (-0.1%) and the Dow (-0.2%) finished a step below their flat lines as the energy (-0.9%) and financials (-0.5%) sectors weighed. 

After closing Monday at its lowest level since December 1993, the CBOE Volatility Index (VIX 10.00, +0.23, +2.4%) finished right at the 10.00 mark on Tuesday. The historically-low level points to a feeling of complacency among investors, which may be a cause for concern in a market where valuations are stretched.  

Following a small relief rally yesterday, crude oil returned to its bearish ways, dropping 1.2% to $45.88/bbl. The slip left the energy sector (-0.9%) with the utilities space (-0.9%) at the bottom of the leaderboard. The utilities group underperformed despite Duke Energy's (DUK 82.11, -0.81) upbeat earnings and in-line revenues. The lightly-weighted telecom services (-0.6%), real estate (-0.4%), and materials (-0.7%) groups also underperformed.

However, the day's most notable laggard may have been the financials sector (-0.5%), which clung to its flat line for the majority of Tuesday's session but was hit by a wave of selling pressure in the last hour of action. Influential bank names like Wells Fargo (WFC 54.68, -0.36) and Goldman Sachs (GS 223.76, -1.27) led the retreat.

Financials' late-afternoon tumble coincided with the broader market slipping to a fresh low in response to a Sky News interview with North Korea's ambassador to the UK Choe Il. The North Korean ambassador said his country will proceed with its 6th nuclear test when it is deemed appropriate by Supreme Leader Kim Jong-un.

The influential technology (+0.2%) and health care (+0.1%) sectors managed to keep their heads above water. The technology space was helped by chipmakers, evidenced by the 1.0% increase in the PHLX Semiconductor Index, but it didn't receive much help from the rest of its components. Similarly, the biotechnology industry provided the health care group with a pocked of strength; the iShares Nasdaq Biotechnology ETF (IBB 292.95, +3.50) climbed 1.2%.

Earnings news was relatively light. However, Marriott's (MAR 102.50, +6.13) better than expected earnings/revenues and upbeat guidance helped the consumer discretionary (+0.5%) sector outpace its peers. The industrial space (+0.2%) also managed to secure a modest gain.

In the bond market, Treasuries settled slightly lower across the board with the benchmark 10-yr yield (2.41%) adding two basis points. Meanwhile, the U.S. Dollar Index (99.47, +0.44) advanced 0.4%.

On the data front, investors received March JOLTS and March Wholesale Inventories:

  • The March Job Openings and Labor Turnover Survey showed that job openings increased to 5.743 million from a revised 5.682 million (from 5.743 million) in February.
  • March Wholesale Inventories increased 0.2% (consensus -0.1%). The prior month's reading was revised to 0.3% from 0.4%.
    • The market doesn't typically pay much attention to this release since the full business inventories report is usually released a short time later.

Tomorrow, investors will receive a batch of economic reports, including the MBA Mortgage Applications Index at 7:00 ET, April Import/Export Prices at 8:30 ET, and the April Treasury Budget at 14:00 ET. 

  • Nasdaq Composite +13.7% YTD
  • S&P 500 +7.1% YTD
  • Dow Jones Industrial Average +6.1% YTD
  • Russell 2000 +2.6% YTD

L'Express ; Trois opérateurs réclament 2,7 milliards d'euros à Orange

Trois opérateurs réclament 2,7 milliards d'euros à Orange

SFR, BT et Verizon ont saisi le tribunal de commerce de Paris à l'encontre de l'opérateur historique pour abus de position dominante sur le marché des entreprises.

Trois pépins et autant de procès pour presser le citron d'Orange. L'opérateur est la cible de plaintes déposées par ses concurrents devant le tribunal de commerce de Paris qui lui réclament au total 2,76 milliards d'euros.

Le groupe de télécommunications SFR (propriétaire de l'Express), la filiale française du britannique BT et l'américain Verizon estiment avoir subi les pratiques anticoncurrentielles du groupe sur le marché des entreprises (Orange Business Services). Une situation reconnue et déjà sanctionnée par l'Autorité de la concurrence à la fin 2015.

Les sages de la rue de l'Echelle avaient recensé alors quatre comportements abusifs notamment dans les offres de téléphonie mobiles et les programmes de fidélisation ou encore dans l'Internet fixe (ADSL). Orange avait alors collaboré à l'enquête et consenti à modifier ses pratiques avant d'être sanctionné d'une amende record de 350 millions d'euros pour des faits remontant jusqu'aux débuts des années 2000.

Les concurrents se sont aussitôt engouffrés dans la brèche en s'appuyant sur cette décision et pour demander réparation: SFR réclame 2,4 milliards d'euros (après avoir estimé provisoirement le préjudice à 512 millions d'euros), Verizon se contente de 215 millions d'euros tandis que BT a évalué son dédommagement à 150 millions d'euros.

Un marché de 9,7 milliards d'euros en 2015
Contrairement à l'univers du grand public, le segment des entreprises reste dominé par Orange qui détient plus des deux tiers des parts de marché devant SFR (plus de 20%), Bouygues Telecom (6%) ou encore Colt. Le gendarme des télécoms, l'Arcep, avait estimé qu'un troisième acteur était nécessaire au côté d'Orange et de SFR.

Son président, Sébastien Soriano, avait indiqué dans une interview à la Tribune parue en juin 2016: "Nous ne voulons plus que les entreprises soient la variable d'ajustement de ce secteur. Nous voulons une concurrence réelle. Et cette concurrence, elle doit passer par un troisième opérateur (...) Nous ne croyons pas au duopole".

En 2015, le marché des entreprises représentait 9,7 milliards d'euros (-3,7% sur un an) contre 22,9 milliards d'euros pour le grand public.

Contactés sur les plaintes en cours, Orange, SFR, BT et Verizon n'ont pas souhaité faire de commentaires.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • SCYX -30.3%, TA -18.3%, HTZ -16.5%, PLUG -11.5%, NVRO -11.1%, ALLT -10.4%, OTEX -9.6%, MEET -9.4%, ALIM -9%, ARTX -7.6%, CBI -7.1%, SEAS -6%, ADUS -5.1%, CASC -4.9%, MPO -4.7%, FRGI -4.5%, CTSO -4.3%, PRCP -4.3%, POST -4%, PLOW -3.5%, AKAO -3.2%, (also files mixed securities shelf offering ), DISCA -3.2%, TDG -3.1%, AAMC -2.8%, MTW -2.5%, GDP -2.5%, AFSI -1.8%, PAA -1.7%, FOGO -1.5%, (announces 4.5 mln offering by selling shareholders), SRRA -1.5%, CRZO -1.3%, NXTM -1.3%, TSO -1.1%, W -1.1%, IFF -1%
Select metals/mining stocks trading lower:
  • AG -4.4%, AU -3.8%, GOLD -1.6%, SLW -1.5%, HMY -0.9% (provides 9-month operational update)
Other news:
  • CYTK -9.3% (prices offering of 5.26 mln shares of common stock at $14.25 per share)
  • APTS -5.5% (commences 2.75 mln common stock offering)
  • FTR -5.2% (lower after Jericho Capital Asset Management's Josh Resnick cautious comments at Sohn conference)
  • GAIN -4.1% (announces public common stock offering)
  • AHH -3.8% (commenced an underwritten public offering of 6,000,000 shares of its common stock)
  • CAR -2.9% (HTZ sympathy)
  • BONT -2.3% (announces that president and CEO Kathryn Bufano has resigned, effective August 25, 2017)
  • AXDX -2.1% (commences 2.5 mln common stock offering)
  • FCEL -1.8% (in sympathy with PLUG)
Analyst comments:
  • TXMD -4.3% (downgraded to Perform from Outperform at Oppenheimer)
  • DSW -1.7% (downgraded at Buckingham)
  • CSCO -0.7% (downgraded to Market Perform from Outperform at BMO Capital)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • EGY +32.6%, CVU +31.6%, XXII +31.3%, VRX +14.3%, REPH +14.1%, BSM +11.2%, CAMT +11.2%, NVMI +10.2%, ODP +9.6%, FN +9.2%, ARLZ +9.1%,DQ +7.1%, CYD +6.8%, SBRA +6.6%, CHEK +6.6%, GNRT +6.6%, TDOC +6.1%, QTNA +5.7%, AEZS +5.6%, WRLD +5.5%, RGR +5.4%, (also announces expansion of its stock repurchase program to $100 million ),MAR +5.3%, ENDP +5.1%, NVAX +4.9%, BLDR +4.8%, EGLE +4.5%, ZBRA +4.5%, TCMD +4.3%, P +4.3%, (also KKR invests $150 mln in convertible preferred stock, get Board seat; Board also forming independent committee to look for new Directors), GPOR +4.2%, USAT +4%, SXE +3.9%,HSIC +3.5%, SSH +3.4%, DLA +3.2%, SAND +3%, SAND +3%, BKD +2.8%,XRAY +2.8%, GLP +2.4%, IONS +2.2%, NEOS +2.2%, STWD +1.9%, CBOE +1.9%, ACRX +1.8%, OAS +1.6%, (also announces plans for an initial public offering of certain of its midstream assets), AGN +1.3%, PRTY +1.3%, NXST +1.2%, AXSM +1.1%, LGIH +1.1%, RBC +1%, FHCO +1%
M&A news:
  • DPLO +2.8% ( completes acquisition of WRB Communications for $24.5 million cash and $4.5 million of Diplomat common stock)
Other news:
  • CLNT +40.7% (YSK 1860 disclosed 29.4% active stake pursuant to Share Purchase Agreement )
  • SNGX +13.3% (granted a Japanese patent for ThermoVax,including coverage of its ricin toxin vaccine candidate, RiVax)
  • ROKA +13.2% (enters 5-year non-exclusive distribution agreement with FoodChek Systems Inc. to distribute their lines of both proprietary Actero ELITE Enrichment Media and non-proprietary Actero UNIVERSAL Enrichment Media)
  • REPH +12.6% (announces 'successful' top-line results from its Phase III safety study evaluating intravenous meloxicam)
  • ORIG +10.3% (announces the deadline for holders of term loans of Drillships Financing Holding and Drillships Ocean Ventures has been extended)
  • DHXM +6% (continued strength following Sohn mention)
  • BTX +5.5% (presents new data from the Phase I/IIa clinical trial of OpRegen in the advanced form of dry age-related macular degeneration)
  • RAD +4% (Rite Aid and Walgreens certify substantial compliance with second request)
  • MXL +4% (to join S&P SmallCap 600)
  • LNTH +3.9% (to join S&P SmallCap 600)
  • XXII +3.1% (announces new manufacturing agreements; raises FY17 revenue guidance)
  • AAL +2.4% (reports April traffic; raises its 2Q17 TRASM)
  • PLX +2.2% (FDA cleared an IND for a clinical trial evaluating the safety and efficacy of administering 2 mg/kg of pegunigalsidase alfa once monthly in Fabry patients; co expects to commence this study in 3Q17)
  • VVV +2% (to join S&P MidCap 400)
  • DXC +1.4% ( positive mention by Glenview Capital's Larry Robbins at Sohn)
  • PNR +1.4% (approves plan to separate into two independent, publicly-traded companies; co expects to complete the separation in 2Q18)
Analyst comments:
  • ALV +1% (upgraded to Buy from Hold at Jefferies)
  • JD +0.8% (upgraded to Mkt Perform from Underperform at Bernstein)

>>> Vonage beats by $0.02, reports revs in-line; reaffirms FY17 rev guidance ex-

Vonage beats by $0.02, reports revs in-line; reaffirms FY17 rev guidance ex-divestment (7.01)
  • Reports Q1 (Mar) adj. earnings of $0.07 per share, $0.02 better than the Capital IQ Consensus of $0.05; revenues rose 7.3% year/year to $243.3 mln vs the $242.4 mln Capital IQ Consensus.
    • Revenues at Vonage Business, which includes $26 million of Nexmo revenue, were $112 million, a 51% year-over-year increase on a GAAP basis. In April, Vonage signed the largest UCaaS deal in its history, with a global real estate firm. Vonage will deliver its UCaaS suite to more than 20,000 corporate seats across 550 company-owned locations. In addition, Vonage will partner with the customer's Corporate Franchise team to offer its services to their 4,000 franchisee offices in the United States. Ending seats at Vonage Business were 659,000, up from 570,000 seats in the year ago quarter, a 16% increase. Vonage Business revenue churn was 1.4%, flat sequentially and up from 1.3% in the year ago quarter.
    • The Vonage API Platform increased its registered developer count to 249,000, a sequential increase of 42,000. The Vonage API platform secured several enterprise wins in the first quarter, including: Microsoft, Gett, Lyft and Zoho.
    • Consumer rev fell 14% to $132 mln, consistent with the Company's expectations and its strategy to redeploy capital into the rapidly growing, Business Cloud Communications sector.
  • Co reaffirms guidance for FY17, sees FY17 revs of $966-981 mln (ex-$4 mln in rev from divested business from $970-985 mln prior) vs. $978.71 mln Capital IQ Consensus Estimate. The Company is adjusting its revenue guidance solely to reflect the divestiture of the hosted infrastructure services business. Within this, the Company expects Vonage Business revenues, which include both UCaaS and CPaaS, to be in the range of $483 million to $489 million, which takes into account ~$4 million of anticipated revenue from the divested business for the period from the end of May through the end of December.
  • In the first quarter, Vonage repurchased 1.6 million shares of stock for $10 million at an average price of $5.95 under its current four-year $100 million program.