After Hours Summary: CUDA +8% following earnings/gudiance, GNVC +57% extending late surge higher... HGG -24%, WDFC -5.5%, HALO -5% among names trading lower following guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: CUDA +7.7%, MDRX +2% (ticking higher; reaffirms Q4 guidance and provides initial outlook for 2017), TACO +1.7% (light volume; preannounces Q4 sales with comps +5.5%, just above estimates)
Companies trading higher in after hours in reaction to news: GNVC +56.7% (continued strength), ILMN +16.9% (confirms the introduction the NovaSeq Series and Illumina and Bio-Rad Laboratories launch of the Illumina Bio-Rad Single-Cell Sequencing Solution), SSI +5.7% (modestly rebounding), PTCT +3.2% (light volume; EC ratifies positive CHMP opinion for renewal of translarna marketing authorization for the treatment of nonsense mutation Duchenne Muscular Dystrophy), CNDT +2% (higher in after hours after Carl Icahn affirmed 9.77% active stake in the Xerox spin-off), KITE +0.6% (Kite Pharma enters into a strategic partnership with Daiichi Sankyo Co for axicabtagene ciloleucel) BIO +0.6% (light volume on Illumina news)
CUDA peers higher in after hours: FEYE +1.3%, CYBR +1.1%, FTNT +0.7%, PANW +0.6%After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: HGG -23.7% (HHGregg sees fiscal Q3 sales of ~$453 mln vs. $564.3 mln Capital IQ Consensus Est; co expects to incur a non-cash charge for asset impairment of $7-12 mln of certain locations in the quarter ended December 31, 2016), FRSH -7.1% (issues downside Q4 revenue guidance), WDFC -5.5%, BOOT -5.3% (Boot Barn Holdings reports light prelim Q3 results ahead of ICR conf), HALO -5.2% (guides 2017 revenue below expectations), VOXX -4.7%, CRAY -3.7% (anticipates 2016 revenue to be in previously provided range; believes it will be difficult to grow over 2016 in 2017), SCVL -2.3% (sees FY17 $1.36-1.38 vs $1.49 Capital IQ Consensus Estimate; sees revs $1.000-1.003 bln vs $1.00 bln Capital IQ Consensus Estimate), ABMD -2.2% (offers prelim Q3 rev results, reaffirms FY17 outlook ahead of presentation at the Annual J.P. Morgan Healthcare Conference), SHOO -2.1%, ZLTQ -2.1% (discloses commercial leadership transition, provides prelim Q4 results, FY17 guidance), ICLR -0.5% (issues financial guidance for FY17 EPS in-line, FY17 revs below consensus, reaffirms FY16 guidance),
Companies trading lower in after hours in reaction to news: WMB -8.2% (announce financial repositioning for long-term, sustainable growth; Both cos announced an agreement to permanently waive payment obligations, commenced an underwritten public offering of 65 million shares of Williams common stock), WPZ -6.4% (announce financial repositioning for long-term, sustainable growth; Both cos announced an agreement to permanently waive payment obligations), ATW -5.5% (commenced an underwritten public offering of 13,500,000 shares of common stock), CIO -3.3% (commences 4 mln common stock offering), DM -1.5% (Dominion Midstream files for offering of 25,383,348 common units representing limited partner interests by selling unitholders)
Closing Market Summary: Stock Market Opens the Week Modestly LowerEquity indices closed Monday's session mixed. The Nasdaq (+0.2%) posted a modest gain, while the S&P 500 finished lower by 0.4%.
With news and economic data limited, the benchmark index remained within reach of its flat line throughout the session, only to dip a bit further in the final stretch.
There was a batch of earnings reports this morning, with Acuity Brands (AYI 202.51, -34.85), Commercial Metals (CMC 20.81, -1.79), and Global Payments (GPN 79.79, +5.34) all reporting before the opening bell. Acuity Brands and Commercial Metals lost 14.7% and 7.9%, respectively, after missing top and bottom line estimates while Global Payments added 7.2% after beating expectations and issuing positive guidance. The fourth-quarter earnings season will heat up this week with several banks set to report their results on Friday.
Eight out of eleven sectors finished the trading day in negative territory, with the energy sector (-1.5%) closing at the bottom of the leaderboard. The sector faced an uphill climb from the start as crude oil opened the day deep in negative territory amid growing concerns that the OPEC, non-OPEC supply cap has been implemented at slower-than-expected pace. In addition, reports indicated that the recent growth in U.S. production was also ruffling some investors' feathers. The commodity closed its trading day 3.8% lower at $51.94/bbl. Financials (-0.8%), industrials (-0.7%), and consumer discretionary (-0.1%) rounded out the cyclical underachievers.
On the countercyclical side, four out of five spaces finished in the red. Utilities (-1.3%) retreated the furthest, as telecom services (-1.1%), consumer staples (-0.7%), and real estate (-0.6%) performed slightly better. Heath care (+0.4%) was the lone non-cyclical representative in green territory, bucking the trend on the back of a solid showing from the biotechnology industry. The iShares Biotechnology ETF (IBB 284.07, +3.72) increased 1.4% on big gains from names like Amgen (AMGN 158.84, +2.06), Biogen (BIIB 299.02, +4.02), and Vertex Pharmaceuticals (VRTX 82.86, +3.47). The three names posted gains between 1.3% and 4.3%.
The top-weighted technology sector (+0.3%) also finished in positive territory after a solid showing from the sector's heaviest component, Apple (AAPL 118.99, +1.08), which closed higher by 0.9%. Chipmakers also aided the tech sector, evidenced by the 1.1% gain in the PHLX Semiconductor Index. The materials (unch) and consumer discretionary (-0.1%) sectors rounded out the day's outperformers.
U.S. Treasuries ended the day near their session high that was achieved early in the morning. The 10-yr yield closed five basis points lower at 2.37%. Also of note, the U.S. Dollar Index (101.95, -0.22) fell 0.2% while gold increased by 0.8%. The precious metal finished at $1,183.00/ozt.
Reviewing today's economic data:
- Consumer Credit report for November
- Showed an increase of $24.5 billion while the consensus expected growth of $18.0 billion.
- The prior month's credit growth was revised to $16.2 billion from $16.0 billion.
- The key takeaway from the report is that consumer credit -- both revolving and non revolving -- continues to expand, providing fuel for a potential increase in economic activity.
Tomorrow's economic data will include November Job Openings (JOLTS) and November Wholesale Inventories (consensus 0.9%). Both reports will be released at 10:00 am E.T.
- Russell 2000 UNCH YTD
- Dow Jones Industrial Average +0.6% YTD
- S&P 500 +1.3% YTD
- Nasdaq Composite +2.8% YTD
In reaction to disappointing earnings/guidance:
-
BABY -7.7%, LULU -1.9%, CMC -1.5%
- RBS -3.3%, DB -2.1%, PUK -1.6%, BCS -1.5%
- WLL -1.7%, SDRL -1.5%, RDS.A -1.3%, CHK -1.3%, STO -1.3%
- ADHD -23.8% (receives official minutes from its meeting with the Division of Psychiatry Products of the FDA held in early December)
- ETRM -2.1% (after filing amended S-1)
- RIG -2% (downgraded to Underperform at BofA/Merrill)
- KO -1.1% (downgraded to Sell from Neutral at Goldman)
- VMW -0.6% (downgraded to Neutral from Buy at UBS )
In reaction to strong earnings/guidance:
- EXAS +15.9%, (sees Q4 revs above consensus) TTOO +7.5%, GPN +5.1%, PTCT +4.2%, VNDA +3.9%, FRAN +3.2%,SPNE +2%, PME +1.7%, NUVA +1.4%, VLRS +1.1%
- MSTX +122.5% (signs merger agreement with privately held Savara Inc )
- MACK +35.8% (concludes strategic review; Ipsen (IPSEY) to Acquire Oncology Assets from Merrimack for $575 mln cash; up to $450 mln in additional regulatory approval-based milestone payments
Other news:
- ADMS +7.2% (prepares for potential approval and launch of ADS-5102 for the treatment of levodopa-induced dyskinesia in patients with Parkinson's disease in 2017)
- ARWR +7.1% (issues response to new minority shareholder announcement by Silence Therapeutics plc; no discussions about any potential transaction)
- KERX +6.3% (provides business update; sees Q4 revs above consensus)
- EBIO +5.2% (provides upcoming milestones in slide presentation)
- CTIC +4.8% (provides 2017 key objectives)
- MDCO +4.2% (presents compelling safety and efficacy data from Day 180 interim analysis for ORION-1 Phase 2 Study of Inclisiran )
- EXEL +3.1% (announced today that Genentech (RHHBY) has withdrawn its counterclaim against Exelixis in the ongoing JAMS arbitration )
- ARLZ +1.8% (enters into a rebate agreement with Express Scripts (ESRX))
- JD +2.6% (upgraded to Overweight from Neutral at JP Morgan)
- BIDU +0.7% (upgraded to Neutral from Underweight at JP Morgan)
Gapping down: ETRM -7.5%, AGRX -6.7%, OREX -4.7%, RBS -3.3%, HIMX -3.3%, WLL -2.4%, RIG -2.2%, SDRL -2%, SHPG -1.8%, DB -1.7%, PUK -1.5%, RDS.A-1.4%, KO -1.3%, CHK -1.3%, STO -1.3%, BCS -1.2%