Treasury Sec Mnuchin: Pres Trump's tax plan may produce some short-term budget issues - press Says: "We're looking for reforms that will pay for themselves with growth... Under dynamic scoring, this will pay for itself, under static scoring, there'll be short term issues."
Trophy assets lose lustre as Qatar embraces prudence and ETFs
Qatar Investment Authority is latest high-profile convert to passive investments
Qatar, owner of London landmarks the Shard and Harrods, is moving cash into exchange traded funds and index funds as part of a more “prudent” investment strategy, two people familiar with the investment strategy said.
The shift away from so-called trophy assets at the Qatar Investment Authority (QIA), the world’s ninth-largest sovereign wealth fund know as an aggressive deal hunter, makes it the latest high-profile convert to a low-cost, passive style of investment.
It follows a change of leadership in December 2014, when Sheikh Abdullah bin Mohamed bin Saud al-Thani was appointed chief executive of the country’s historically secretive sovereign wealth fund.
At the time, people familiar with the appointment said it would not alter the fund’s strategy. Now, however, those people said the QIA is exploring more ‘plain vanilla’ investment as it looks to diversify its holdings in light of low oil prices.
“A decade ago [Qatar] sought to buy property because they thought ‘at least in the worst-case scenario, we have something’,” a senior person familiar with the strategy said.
“After that the portfolio got bigger but [they] are still being very active but not in the magnitude that you saw before.” The person said a lack of trophy assets for sale is also contributing to a shift in strategy.
This is despite high-profile deals, such as the recent sale of London’s ‘Cheesegrater’ building to a Chinese property magnate. The person said: “You cannot keep doing trophy buildings or buying 20 per cent in every single state because the opportunities are not there anyway.
“What the QIA wants is to get into ETFs, get into indexes.”
Analysts believe Qatar is likely to be a less-engaged global investor in future as a result.
Professor Javier Capape at Madrid-based IE Business School said: “It is very plausible to see the change [in strategy as a result of] the new leadership and new low for longer oil prices. ”We won’t see such an active and engaged player [as before].”
He predicted Qatar will have “less foreign visibility in trophy assets and more alignments with domestic goals” and “lower for longer oil prices that would force some divestments to obtain liquidity”.
Qatar’s shift is part of a wider change in investment strategy among sovereign wealth funds as they become more experienced investors.
A report by IE Business School showed sovereign wealth funds moving away from luxury businesses, buying more hotels and increasing their allocations to private deals as they look to offset falling state revenue from lower oil prices.
Investment by national funds in businesses reliant on wealthy customers, including Tiffany, Porsche and LVMH, has fallen from $13bn in 2009 to just $1.4bn in 2015, the report revealed.
Investor appetite for high-growth IPOs to be tested
Eight new listings planned for week ahead as unicorns stampede
The US listings market is poised for a busy week with deals that will test investors’ appetite for high-growth — but lossmaking — companies.
Eight new listings are scheduled for this week, the most since October of 2016, Dealogic said, although this number includes Verona Pharma, which is already listed in London.
The number of IPOs will put it on a par with the week of April 10 as the busiest capital raising week of the year, and compares with an average of three deals a week in 2017 so far.
Among the IPOs set to price this week is Cloudera, a big data company, aiming to raise as much as $210m in a deal that would value it up to $1.8bn. In its fiscal year to January 2017, revenue rose 57 per cent to $261m but the company produced a net loss of $187m. At the proposed price range, Cloudera’s listing would give it a valuation well below its last private capital raising round three years ago, which topped $4bn.
Cloudera is one of the so-called unicorns, having achieved a valuation of $1bn or more without tapping the public markets.
The herd of unicorns has grown in recent years on a vibrant market for private funding thanks to flows of capital from mutual and hedge funds that have joined traditional venture capitalist as investors in unlisted companies.
Other offerings expected in the week ahead include Carvana, an online marketplace for used cars, Chinese microlender China Rapid Finance, and Floor & Decor Holdings, a retailer of floor coverings.
Successful listings such as those by Snap and Mulesoft — a software company that traded at $22 a share last week against its issue price of $17 — are also fuelling demand for new deals.
“2017 is testing whether growth is back and investors are OK with losses,” said Matthew Kennedy, an analyst at Renaissance Capital, which runs exchange traded funds that focus on IPOs.
“In 2013 and 2014 investors were willing to fund growth at all cost and then in 2015 and 2016 they pulled back and said ‘we want profitability’.”
The second quarter is a busy time of the year for public listings and some bankers and market observers suspect companies held back their offerings pending the high-profile listing of Snap, the owner of the Snapchat App.
Listed in early March, Snap was the largest US IPO since Alibaba, the Chinese ecommerce group, in 2014. Snap has a market capitalisation of $25bn versus $19.7bn at the time of its IPO.
Some investors say there is pent up demand given the dearth of recent offerings. Last year, for example, was the slowest for the US initial public offerings since the aftermath of the financial crisis in 2009, according to Dealogic.
“When the ducks are quacking, Wall Street likes to feed them,” said James Callinan, a portfolio manager at Osterweis Capital Management. “We haven’t had a big wave of new public companies.”
Closing Market Summary: Equities Slip Ahead of French VoteThe French presidential election, and the uncertainty that surrounds it, weighed on investor sentiment on Friday. However, a batch of positive earnings reports and an update on tax reform plans from Washington helped keep losses in check. The S&P 500 finished with a loss of 0.3% while the Nasdaq (-0.1%) and the Dow (-0.2%) finished a bit closer to their flat lines. For the week, the benchmark index added 0.9%.
On Sunday, French citizens will narrow their country's presidential race to two candidates with the market hoping that the anti-EU choices--far-right candidate Marine Le Pen and far-left candidate Jean-Luc Melenchon--don't make the cut. The latest polls suggest that Ms. Le Pen and centrist candidate Emmanuel Macron will make it to the final round of voting on May 7, but the race is tight with Francois Fillon trailing Le Pen in third place by only three points.
Crude oil also caused some angst among investors on Friday as the commodity dropped 2.1% to finish its trading day at $49.64/bbl. Reports suggesting that Russia may not be on board with extending the OPEC/non-OPEC production cut agreement beyond June were credited as the bearish catalyst, but the energy component struggled all week, losing nearly 7.0% since last Thursday's close. The energy sector (-0.4%) held up relatively well, settling just a tick behind the broader market.
The aforementioned headlines suppressed stocks into the afternoon session with the S&P 500 hitting its session low around 13:00 ET. From there, the major averages climbed back towards their flat lines on President Trump's promise to unveil his tax reform plan next week, which he says will include a "massive" tax cut for individuals and business. However, it's worth noting that the rebound effort was modest as investors have started placing more emphasis on actions rather than words as of late.
Earnings results were a major factor in determining sector standings. For instance, the utilities sector (+0.5%) claimed the top spot on the day's leaderboard after NextEra Energy (NEE 133.02, +2.15) beat bottom-line estimates. Similarly, Visa (V 91.15, +0.00) reported better than expected earnings and revenues, helping the technology sector (unch) outperform. Microsoft (MSFT 66.40, +0.90) also helped the tech group, bouncing off its 20-day moving average to a new record high.
Meanwhile, in the industrial sector (+0.1%), General Electric (GE 29.55, -0.72) faced heavy selling pressure despite beating top and bottom line estimates. However, the industrial group still finished ahead of the broader market after getting some help from Honeywell (HON 127.08, +3.31), which added 2.7% after reporting above-consensus earnings and revenues.
In the end, nine of eleven sectors finished lower, but the losses were generally modest. The telecom services (-1.6%) and financials (-0.9%) groups showed relative weakness while the remaining laggards finished with losses of no more than 0.5%.
U.S. Treasuries finished modestly higher with the benchmark 10-yr yield (2.23%) losing one basis point. The U.S. Dollar Index (99.81, +0.10) settled higher by 0.1%.
Investors only received one economic report--March Existing Home Sales--on Friday:
- Existing home sales for March increased 4.4% from February to an annualized rate of 5.71 million units while the consensus expected a reading of 5.58 million. The prior month's reading was revised to 5.47 million from 5.48 million.
- The key takeaway from the report is that demand is strong, inventory is still low, and prices continue to rise, meaning it is important for mortgage rates to stay low to support affordability conditions since home prices are rising at a much faster pace than personal income.
Investors will not receive any economic data on Monday but the results of first round of French Elections.
- Nasdaq Composite +9.8% YTD
- S&P 500 +4.9% YTD
- Dow Jones Industrial Average +4.0% YTD
- Russell 2000 +1.7% YTD
Weekly Market Update: Risk-On Returns as Leaders Jawbone Reform Efforts
Trading resumed this week with investors looking to add back some of the risk taken out of their portfolios ahead of the long Easter break. A lack of escalation surrounding the Korean Peninsula and renewed hopes of forthcoming Congressional reform legislation spurred some early buying in equities and helped put a floor in bond yields. The IMF modestly raised its global growth outlook for 2017 to 3.5% as G20 finance ministers and central bankers met in Washington and produced mostly upbeat commentary about diminishing risks. The surprise move by UK PM May to call snap elections and the impending French election kept sentiment muted. Cable moved up roughly 2.5% and held most of those gains after the election announcement. For the week the DJIA rose 0.5%, the S&P gained 0.9%, and the Nasdaq added 1.8%.
US economic readings retreated from the recent higher levels and largely came up short of expectations. Overseas data, with the exception of the UK, revealed some relative strength which helped pressure the US Dollar Index to the its lowest levels in nearly a month. US Treasury yields hovered near their lowest levels since November and gold prices made a run at $1,300 early on before consolidating. On Friday, WTI crude slipped back below the $50 mark to levels not seen since March on what traders largely attributed to technical selling pressures. Regardless, US rig counts and total NA production continued to rise, overshadowing reports that OPEC is likely headed towards a six month extension of coordinated production cuts.
In corporate news this week, earnings season commenced with some big financial names. Goldman disappointed investors with a first quarter sales and earnings miss, sending the stock on its biggest one-day post-earnings selloff since going public in 1999. Morgan Stanley delivered a rebuke to its rival’s quarter, reporting a Q1 beat on both top and bottom lines, helped by a boost in bond trading revenue following the Fed's interest rate hike. Bank of America reported solid results, but they, along with several regional banks, exhibited slower loan growth in the quarter. American Express led the Dow higher on Thursday after its earnings beat indicated it might be finding ways to overcome last year’s Costco portfolio loss. In tech names, Netflix beat on earnings but missed on revenues, as streaming net new additions came in below management’s own guidance. IBM revenues came in below expectations, but its CFO said that was mostly due to increasing forex headwinds, and the hardware giant affirmed its full year outlook. On Friday Honeywell and Visa put up outstanding quarters yet again leading to new 52-week highs while GE meandered lower after missing quarterly cash flow projections.
SUNDAY 4/16
(TR) Turkey passes referendum on changing the constitution to replace its parliamentary system with the executive presidency with 51.5% v 48.7%; opposition to challenge result
(CN) CHINA Q1 GDP Y/Y: 6.9% V 6.8%E (fastest growth since the third quarter of 2015)
(CN) CHINA MAR RETAIL SALES Y/Y: 10.9% (3-month high) V 9.7%E; YTD Y/Y: 10.0% V 9.6%E
(CN) CHINA MAR INDUSTRIAL PRODUCTION Y/Y: 7.6% (highest since Dec 2014) V 6.3%E; YTD 6.8% V 6.3%E
(CN) CHINA MAR FIXED ASSETS EX RURAL YTD Y/Y: 9.2% (10-month high) V 8.8%E
MONDAY 4/17
US Federal Communications Commission (FCC) reportedly considering lifting a ban on telecoms companies engaging in merger talks - financial press
(US) APR EMPIRE MANUFACTURING: 5.2 V 15.0E
(US) APR NAHB HOUSING MARKET INDEX: 68 V 70E
(US) FEB TOTAL NET TIC FLOWS: $19.3B V $121.2B PRIOR; NET LONG-TERM TIC FLOWS: $53.4B V $5.9B PRIOR
NFLX Reports Q1 $0.40 v $0.38e, R$2.64B v $2.64Be
UAL Reports Q1 $0.41 (adj) v $0.37e, R$8.42B v $8.36Be
(CN) CHINA MAR PROPERTY PRICES M/M: RISE IN 62 OUT OF 70 CITIES VS 56 PRIOR; Y/Y: RISE IN 68 OUT OF 70 CITIES V 67 PRIOR
(JP) Japan nominates Goshi Kataoka and Hitoshi Suzuki to BOJ board; will replace BOJ dissenters Sato and Kiuchi
TUESDAY 4/18
(UK) PM MAY STATEMENT: CALLS FOR GENERAL ELECTION JUNE 8TH (as speculated); needs a stronger mandate to negotiate Brexit with EU
BAC Reports Q1 $0.41 v $0.35e, R$22.2B v $21.5Be
GS Reports Q1 $5.15 v $5.38e, R$8.03B v $8.37Be; Increases dividend 15% to $0.75/shr (implied yield 1.3%); authorizes additional $50M share buyback (0.6% of market cap)
*IMF UPDATES WORLD ECONOMIC OUTLOOK (WEO): Raises 2017 global growth forecast from 3.4% to 3.5%
*(US) MAR HOUSING STARTS: 1.22M V 1.25ME; BUILDING PERMITS: 1.26M V 1.25ME
(US) MAR INDUSTRIAL PRODUCTION M/M: 0.5% V 0.4%E; CAPACITY UTILIZATION: 76.1% V 76.1%E
(US) Atlanta Fed maintains Q1 GDP at 0.5%, unchanged from 4/14
IBM Reports Q1 $2.38 v $2.34e, R$18.2B v $18.5Be
WEDNESDAY 4/19
(HK) Macau reports Easter Weekend visitors 427K, +5.6% y/y
ASML.NL Reports Q1 Net €452M v €403Me, Rev €1.94B v €1.82Be
BRBY.UK Reports H2 Rev £1.61B v £1.61Be; SSS +3% v +3.8%e
HEIA.NL Reports Q1 Net €293M v €265M y/y
(EU) EURO ZONE MAR CPI M/M: 0.8% V 0.8%E; Y/Y (FINAL READING): 1.5% V 1.5%E; CPI CORE Y/Y(FINAL READING): 0.7% V 0.7%E
(US) Association of American Railroads weekly rail traffic report for week ending April 15th: 519.3K carloads and intermodal units, +3.9% y/y (14th straight week of gains)
CP Reports Q1 C$2.50 adj v C$2.50 y/y, rev C$1.6B v C$1.59B y/y
CSX Reports Q1 $0.51 v $0.43e, R$2.87B v $2.73Be
RIO.AU Reports Q1 global iron ore production 66.2Mt, -2% y/y, -10% q/q; Shipments 80.8Mt, +11% y/y
THURSDAY 4/20
NESN.CH Reports Q1 Rev CHF21.0B v CHF21.3Be
SU.FR Reports Q1 Rev €5.84B v €5.84Be, organic sales 3.1% y/y
UNA.NL Reports Q1 Rev €13.3B v €13.2Be; raises dividend 12% to €0.3585/shr
BMW.DE Reports prelim Q1 PBT €3.0B v €2.37B y/y, EBIT €2.65B v €2.46B y/y, Rev €23.4B v €20.9B y/y
*(ID) INDONESIA CENTRAL BANK (BI) LEAVES 7-DAY REVERSE REPO RATE UNCHANGED AT 4.75%; AS EXPECTED (6th straight pause in current easing cycle)
(US) APR PHILADELPHIA FED BUSINESS OUTLOOK: 22.0 V 25.5E (lowest since Dec)
(US) MAR LEADING INDEX: 0.4% V 0.2%E
BN.FR Reports Q1 Rev €5.46B v €5.31B y/y; raises FY outlook
KND Reportedly considering sale of nursing division, but also getting M&A interest for the whole company - M&A blog
V Reports Q2 $0.86 v $0.79e, R$4.48B v $4.30Be; announces $5B buyback (2% of market cap)
(JP) JAPAN APR PRELIMINARY PMI MANUFACTURING: 52.8 V 52.4 PRIOR (8th month of expansion)
FRIDAY 4/21
(FR) FRANCE APR PRELIMINARY MANUFACTURING PMI: 55.1 V 53.1E (7th month of expansion and and highest since Apr 2011)
*(DE) GERMANY APR PRELIMINARY MANUFACTURING PMI: 58.2 V 58.0E (29th month of expansion)
(EU) EURO ZONE APR PRELIMINARY MANUFACTURING PMI: 56.8 V 56.0E (46th month of expansion and highest since Apr 2011)
(UK) MAR RETAIL SALES (EX AUTO FUEL) M/M: -1.5% V -0.5%E; Y/Y: 2.6% V 3.8%E
GE Reports Q1 $0.21 v $0.17e, R$27.7B v $26.4Be
SLB Reports Q1 $0.25 v $0.25e, R$6.89B v $7.01Be
(US) APR PRELIMINARY MARKIT MANUFACTURING PMI: 52.8 V 53.8E
(US) MAR EXISTING HOME SALES: 5.71M V 5.60ME
Asia Mid-Session Market Update: China top-tier cities property price growth slows; RBA minutes cautious amid softer employment and rising household
***US Session Highlights***
- (BR) Brazil Feb Economic Activity Index (Monthly GDP) M/M: 1.3% v 0.5%e; Y/Y: -0.7% v -2.4%e
- (US) APR EMPIRE MANUFACTURING: 5.2 V 15.0E; New Orders: +7.0 v +21.3 prior; Prices Paid: +32.8 v +31.0 prior
- (US) APR NAHB HOUSING MARKET INDEX: 68 V 70E
- (US) Treasury Sec Mnuchin: timeline to get tax reform by Aug is "highly aggressive to not realistic at this point"; schedule has been slowed by the healthcare bill passage problems - FT
- Stocks gained momentum again to start the week off with a rally after last week's negative performance. Investors began to see equity as relatively underpriced at the open, and markets lifted higher into the close. Best performing sectors were Financials and Consumer Discretionary, gaining 1.6% and 1% respectively.
***US markets on close: Dow +0.9%, S&P500 +0.9%, Nasdaq +0.9%***
- Best Sector in S&P500: Financials
- Worst Sector in S&P500: Energy
- Biggest gainers: NVDA +3.9%; MTB +3.9%; ARNC +3.1%
- Biggest losers: INCY -10.5%; DISH -5.8%; LLY -4.1%
- At the close: VIX 14.7 (-1.3pts); Treasuries: 2-yr 1.20% (flat), 10-yr 2.25% (+2bps), 30-yr 2.91% (+3bps)
***US movers afterhours***
- CAB: Enters into revised transaction agreements in connection with Bass Pro Shops merger; CAB to get $61.50/shr; +7.5% afterhours
- RIGL: Submits New Drug Application to FDA for Fostamatinib in Chronic ITP; +5.0% afterhours
- NFLX: Reports Q1 $0.40 v $0.38e, R$2.64B v $2.64Be; Guides Q2 $0.15 v $0.23e; Total streaming net adds 4.95M v 7.05M q/q v 5.2M forecast; +1.4% afterhours
- UAL: Reports Q1 $0.41 (adj) v $0.37e, R$8.42B v $8.36Be; +1.0% afterhours
- CUDA: Reports Q4 $0.19 v $0.15e, R$89.3M v $88.6Me; Total active subscribers 321K v 309K q/q; +15% y/y; -3.9% afterhours
***Politics***
- (US) President Trump to outline H-1B visa changes tomorrow
- (JP) Asahi poll shows Japan Cabinet approval rating at 50%, nearly unchanged from prior
***Key economic data***
- (CN) CHINA MAR PROPERTY PRICES M/M: RISE IN 62 OUT OF 70 CITIES VS 56 PRIOR; Y/Y: RISE IN 68 OUT OF 70 CITIES V 67 PRIOR
***Asia Session Notable Observations, Speakers and Press***
- US equity markets traded higher after 3 consecutive down days, though sentiment in Asia is more subdued. Financials were the best performing sector on Wall St, with rising Treasury rates on the long end widening the yield curve. Technical factors have been attributed in part for the bullish reversal, though commentary from US Treasury Sec Mnuchin late in the day contributed to US markets going out on their highs. Mnuchin said that while the timeline for getting tax reform done by August is "highly aggressive", he did expect tax system changes some time this year, also adding that the border adjustment tax is just one of many elements considered in raising $1T for the tax program. Mnuchin also talked up USD after Trump's remarks last week that the greenback has gotten too strong, noting that strength of USD over the long term is a positive. USD/JPY rose over 50pips on the comments above ¥109 level and then extended those gains above ¥109.20. NZD/USD found support at 0.70, while AUD/USD fell about 40pips below 0.7550.
- Australia's ASX200 is among the worst performing indices in Asia, falling over 1% to a 2-week low below 5,830. Mining shares are weighed down by more selling in iron ore, with Dalian gauge falling over 3% early in the day. RBA April policy meeting minutes echoed the cautious stance displayed in the original statement, indicating policymakers had to balance some recent deteriorating in employment conditions with rising household debt in calibrating their policy stance. Board plans to continue monitoring labor and housing conditions over the coming months, particularly the overheating Melbourne and Sydney markets.
- In China, property names are modestly lower, while declines in financials, gaming, and energy stocks weighed on returning from holiday Hang Seng index. Mar property prices were up in 62 out of 70 cities m/m and 68 y/y - up from 56 and 67 respectively in the prior month. Across the top 70 cities, prices were up 0.6% m/m v 0.3% prior, though y/y rate of growth slowed to 11.3% v 11.8% prior. Beijing y/y price growth slowed to 20.6% v 22.1% prior and that of Shanghai slowed to 19.8% v 21.1% prior, with Stats Bureau noting the impact of property curbs for tier-1 cities unveild in recent weeks.
China
- (CN) China Insurance Regulatory Commission (CIRC) to start checking credit, guarantee businesses of insurers that help offer financing to sell bonds as well as trust and fund products
- (CN) China regulators hopes listed companies to cool financing actions - Chinese press
- (CN) JPMorgan raised its China 2017 GDP target to 6.7% from 6.6% following stronger than expected Q1 - Chinese press
Japan
- (JP) US Commerce Sec Ross: Too soon to talk about FTA with Japan; made good progress in establishing dialogue and reaching mutual understanding
- (JP) Moody's: Japan economic momentum is building due to rising exports and expected fiscal support
Australia/New Zealand
- (AU) Australia govt has investigated the possibility of putting a limit on the number of properties an investor can buy - AFR
Korea
- (KR) South Korea govt think tank (KDI) raises 2017 GDP target to 2.6% from 2.4%; Sees 2018 GDP at 2.5%
- (KR) South Korea Ministry of Trade, Industry, and Energy: March auto exports value rose 4.1% y/y to $4.12B, 2nd straight month of increase
- (KR) China reiterates opposition to South Korea's THAAD anti-missile system - press
***Asian Equity Indices/Futures (00:00ET)***
- Nikkei +0.2%, Hang Seng -0.9%, Shanghai Composite -0.1%, ASX200 -1.2%, Kospi -0.2%
- Equity Futures: S&P500 -0.1%; Nasdaq +0.1%, Dax +0.2%, FTSE100 -0.1%
***FX ranges/Commodities/Fixed Income (00:00ET)***
- EUR 1.0635-1.0655; JPY 108.90-109.25; AUD 0.7555-0.7595; NZD 0.7000-0.7015
- June Gold -0.5% at 1,285/oz; May Crude Oil -0.1% at $52.58/brl; May Copper -0.5% at $2.58/lb
- (CN) PBOC SETS YUAN MID POINT AT 6.8849 V 6.8785 PRIOR (3rd consecutive weaker setting)
- (CN) PBOC to inject combined CNY80B v zero prior
- (JP) Japan MoF sells ¥2.00T in 0.1% 5-year JGB bonds; avg yield -0.160% v -0.118% prior; bid-to-cover 3.28x v 2.86x prior
***Asia equities / Notables / movers***
Australia
- TPM.AU TPG Telecom -17.6% (share sales)
- NCM.AU Newcrest Mining -4.4% (Cadia cannot meet guidance, gold price lower)
- FMG.AU Fortescue -5.5%, BHP.AU -2.0%, RIO.AU -1.7% (iron ore falls over 3%)
- FBU.AU Fletcher Building +1.4% (potential sale of building co)
- HUB.AU Hub24 +5.8% (Q3 result)
- TAH.AU Tabcorp Holdings -0.9% (divestment)
- TPG.AU TPG Telecom -17.5% (institutional offering)
- PLS.AU Pilbara Minerals -12.0% (project update)
- AGO.AU Atlas Iron -16.7% (Q3 result)
- AZJ.AU AUrizon -4.0% (Cuts guidance on cyclone impact)
Japan
- 4569.JP Kyorin Co -0.8% (annual result speculation)
Taiwan
- 2324.TW Compal Electronics +1.5% (speculated to assemble Apple watch)
China
- 000503.CN Searainbow Holding -1.6% (guidance)
- 600048.CN Poly Real Estate Group Co -1.5% (annual result)
Hong Kong
- 347.HK Angang Steel -3.7% (profit warning)
- 2338.HK Weichai Power +2.9% (profit alert)
- 124.HK Kingway Brewery Holding -2.7% (profit warning)
- 1898.HK China Coal Energy -2.2% (Mar result)
- 1889.HK Wuyi International Pharmaceutical Co -3.6% (annual result)
- 921.HK Hisense Kelon Electrical Holdings +8.8% (quarterly result)
- 390.HK China Railway Group -0.4% (Q1 result)
- 210.HK Daphne International -1.3% (Q1 result)
- 1816.HK CGN Power Co -2.9% (Q1 result)
Fed Vice Chairman Stanley Fischer speech on 'Monetary Policy Expectations and Surprises' at the Columbia University (not speak about current outlook)
- First, a question: Can the Fed be too predictable? "there is a circumstance where it might be reasonable to argue that the Fed could be too predictable--in particular, if the path of policy is not appropriately responsive to the incoming economic data and the implications for the economic outlook."
- Comment on the SEP, the quarterly Summary of Economic Projections of the participants in the FOMC: "one may say that the SEP shows the basis from which each participant in the FOMC discussion is likely to start. But the task of moving from that information to an interest rate decision is not simple and requires a great deal of analysis and back-and-forth among FOMC participants at each meeting."
- Full text.
After Hours Summary: UAL +1% on earnings/guidance, CAB +7% on revised Bass Pro Shops merger, GIMO / CBL / CYTK higher on index addition news... CUDA -5.2% following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: LMB +2.4% (thinly traded), CE +1.6% (light volume), UAL +0.9% (also guides Q2 metrics; reaffirms FY17 capacity, unit costs)
Companies trading higher in after hours in reaction to news: LIQT +63.4% (very thinly traded; receives $480K marine scrubber order), QTNT +11.8% (light volume; may be rebounding from offering; confirmed the closing of previously announced offering of ordinary shares), WILN +10% (details plan to transform its business into a growth-oriented diversified holding company, will acquire International Road Dynamics for $47.4 mln), IMMY +8.2% (Imprimis Pharmaceuticals and Cameron Ehlen Group, d/b/a Precision Lens, sign three-year exclusive sales representation agreement; promoted Clayton Edwards as Chief Operating Officer effectively immediately), CAB +6.6% (revises transaction agreements in connection with Bass Pro Shops merger, shareholders to receive $61.50/share in cash), AUPH +3.9% (signs definitive agreement granting Merck Animal Health rights to develop and commercialize Aurinia's patented nanomicellar voclosporin ophthalmic solution), GIMO +3.8%, CBL +3.7% and CYTK +3.4% (to join S&P SmallCap 600), RIGL +3.2% (submits NDA to the FDA for fostamatinib in patients with chronic and persistent immune thrombocytopenia; expects to receive notification regarding the acceptance of the NDA by the FDA in June 2017), GBT +3.1% (initiated with Buy at SunTrust), SAVE +1.3% (reports March traffic, highlights Q1 guidance)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: INPX -10.9%, CUDA -5.2%, SPU -1.8%
Companies trading lower in after hours in reaction to news: ARNA -14.2% (announces proposed offering of common stock), AMRS -10.4% (still checking), AGIO -3.6% (commences 4.5 mln common stock offering), CVRS -3.4% (files for $60 mln mixed securities shelf offering ; files for 68,055,700 share common stock offering by selling shareholders), CBLI -3.1% (after surging more than 200% higher), GLPG -1.8% (announces launch of proposed public offering)
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