>>> US After Hours Summary: NVDA +11%, COHR +9%, EA +8%, TRIP +6.5

After Hours Summary: NVDA +11%, COHR +9%, EA +8%, TRIP +6.5%, MCHP +5%, NUAN +2% higher following earnings/guidance... YELP -28%, FOSL -22%, ACIA -15%, DIS / PCLN -3% lower following earnings/guidance, optical names lower

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: ESIO +19.3%, RCM +14.1%, ATHX +12.9%, MFIN +11%, NVDA +10.9%, VSLR +8.8%, COHR +8.6%, EA +7.7%, TRIP +6.5%, SEDG +6.3%, TRUE +6.1%, OCRX +5.5% (also reported new drug data), MCHP +5.2%, AAXN +4.6%, IAG +4%, XOG +3.5%, RPD +3.2%, CLDX +3.2%, NUAN +1.9%

Companies trading higher in after hours in reaction to news: ARRY +10% (announces top-line results from Part 2 of the Phase 3 COLUMBUS study evaluating binimetinib, a MEK inhibitor, and encorafenib, a BRAF inhibitor, in patients with BRAF-mutant advanced, unresectable or metastatic melanoma; NDA filing on track for June or July 2017), CUR +9.2% (modestly rebounding), AMD +2.9% (NVDA sympathy), HTA +0.4% (higher on light volume after closing previously announced medical office building portfolio in Arizona and Southern California; total consideration was approximately $150 million)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: YELP -28.2%, FOSL -21.8%, PLPM -16.7%, ACIA -15.3%, KRNT -15%, DEPO -14.6%, FUEL -12.3%, EKSO -10.5% (light volume), TCX -9.5%, SUPN -8.8%, ARNA -7%, SSNI -6.7%, SPWR -6.3%, ZSAN -5.5% (also Chairman John Walker named Interim CEO to replace Konstantinos Alataris who has resigned), MTRX -5.5%, OPK -5.2%, ZAYO -5.1%, PEIX -5%, XCO -4.7%, HALO -4.6% (also CMO Dr. Athena Countouriotis will leave to pursue professional opportunities), AQMS -4.6%, ACAD -3.9%, PRI -3.8%, PSEC -3.6%, OREX -3.5%, AKBA -3.5%, PCLN -3.3%, MATR -3.2% (thinly traded), JAZZ -3.1%, DIS -2.6%, LSCC -1.6%, CLNS -1.4%

Companies trading lower in after hours in reaction to news: CLNT -5.7% (following 60%+ surge higher), EARN -5.7% (commenced a public offering of 3 mln common shares), W -0.9% (seeing modest pullback after its CFO disclosed the sale of 20665 shares worth more than $1.1 mln pursuant to a Rule 10b5-1 trading plan)

Optical names lower following ACIA earnings: OCLR -2%, FNSR -1.5%, AAOI -1.2%, LITE -1.2%, IPHI -1%

>>> NVIDIA on Conference Call; Stock trading at $118 in after hours

NVIDIA on Conference Call; Stock trading at $118 in after hours (102.94 +0.17)
  • Datacenter is growing fast and in multiple dimensions.
  • Says customers would like to virtualize basically their entire PC and put it into a data center as it's easier to manage total cost of ownership is lower and mobile employees could enjoy their work wherever they happen to be.
  • Says will talk about GPUs and CPUs at tomorrow's GPU Conference (CEO Huang giving keynote address).
  • GeForce ASPs is about 1/3 of the gaming counsel costs.

>>> Walt Disney Q2 Earnings Call Notes

Walt Disney Q2 Earnings Call Notes (112.07 +0.65)
  • ESPN
    • Recognize early signs of shift in the industry, adapted quickly to a strategy that reflects the changing market.
    • ESPN content is featured in a growing array of services including Sling TV, PlayStation Vue, YouTube TV, Hulu.
      • Have seen really nice growth in different offerings, but it's nascent and the growth that they have seen in number of subs so far has not made up for the losses that they have seen in the expanded basic service.
    • In Q2 ESPN's suite of mobile apps reached a monthly audience of 23 million unique users who collectively spent 5.2 billion minutes engaging with ESPN on these platforms.
    • Mobile will play a key in the future of media.
    • Goal is to reach and engage consumer.
    • Very excited about success in new platforms, but live sports continue to draw huge audiences.
    • ESPN delivered largest Q2 prime-time audience in 5 years according to Nielsen.
    • ESPN's Q2 prime-time audience was up 15% y/y.
    • Participating in mobile by making moves on the personnel front. Looking at program changes overall to see how the networks are programmed with an eye on improving non live sports programming numbers.
    • Best thing co can possibly do is continue to make mobile experience great.
    • Has taken advantage of the shift to mobile from live programming, believes the money will follow.
    • Very candid 2 summers ago, this enabled the co to take a number of steps to deal with the issue in ways that serve the co well in the long-term.
    • New distributors have seen that launching w/out ESPN is very difficult.
    • New entrants into marketplace by Amazon (AMZN) and Facebook (FB) prove how important live sports is.
    • Guardian's of the Galaxy was the 15th consecutive Marvel release to reach #1 in the first weekend.
    • Doesn't see how many channels can be fit into a $10 bundle that would be attractive.
    • Q3 ad sales at ESPN are pacing down, however there is strong demand for the NBA inventory.
  • Studios
    • 4 Marvel releases in the next 14 months: Thor, Black Panther, Avengers Infinity War, and Ant-Man.
    • 2 $1 billion releases in 2017: Rogue One and Beauty and the Beast.
    • Will release Frozen 2 in 2019.
    • In December will release Last Jedi.
  • Construction underway on 2 new Star Wars Lands at Disney Land and Disney World.
  • In next few days Shanghai Disney will welcome it's 10 millionth guest. Better than expectations.
    • Modestly profitable during Q2.
    • Expects a loss in Q3 due to seasonality.
    • Expects to break even for the FY.
  • Increasing share repurchase target by $2bln.
  • Guidance
    • Modest growth to fiscal 2017.
    • Return to more robust growth in FY18 and beyond.
    • Expects FY17 cable programming cost will be up 8% driven primarily due to the new NBA contract.
    • Expects CAPEX for FY17 to be $200 mln lower than the prior year.
Shares of Disney are trading 2.1% lower in after hours trading at $109.70/shar

>>> 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