Блог компании DayTraderClub | Америка сегодня. Блок важных новостей.

Asian MarketsNikkei...19287...+152.60...+0.80%.  Hang Seng...22937...+108.40...+0.50%.

European MarketsFTSE...7319.40...+27.00...+0.40%.  DAX...11580.98...+59.90...+0.50%.

 Pentair upgraded to Overweight from Neutral at JP Morgan  (57.27)

 Trimas downgraded to Neutral from Overweight at JP Morgan  (22.45)

 Roper upgraded to Overweight from Neutral at JP Morgan  (187.66)

Vista Outdoor downgraded to Neutral from Buy at CL King  (29.58)

 Gevo target raised to $12 from $4 at Rodman & Renshaw to account for 1:20 reverse split from earlier this month; maintain Buy  (3.86)

 Asian Markets Close: Nikkei +0.8%, Hang Seng +0.5%, Shanghai -0.2%

Equity indices across Asia-Pacific ended the week on a mixed note. Japan's Nikkei (+0.8%) was a pocket of relative strength after the yen retreated into overnight action. However, the yen has reclaimed its slim loss against the dollar this morning. The latest trade data from China showed a surplus, but the size of the surplus reached a nine-month low. Elsewhere, the Bank of Korea left its key interest rate unchanged at 1.25%, as expected.

• In economic data:
  • China's December trade surplus $40.82 billion (expected $46.50 billion; last $44.61 billion). December Exports -6.1% year-over-year (expected -3.5%; last 0.1%) and December Imports +3.1% year-over-year (consensus 2.7%; previous 6.7%)
  • Japan's M2 Money Stock +4.0% year-over-year (consensus 4.1%; last 3.9%)
  • New Zealand's December Electronic Card Retail Sales -0.1% month-over-month (expected 1.0%; last -0.1%); +5.8% year-over-year (last 5.1%)
  • Singapore's November Retail Sales +0.5% month-over-month (last 1.8%); +1.1% year-over-year (consensus 2.0%; last 2.0%)

---Equity Markets---

• Japan's Nikkei gained 0.8%, narrowing this week's loss to 0.9%. The index has spent the past five weeks bouncing between 19,000 and 19,600. Growth-sensitive names had a good showing with Kubota, Fanuc, Suzuki Motor, Mitsubishi Heavy Industries, Hitachi Construction, and Mazda Motor advanced between 1.5% and 2.3%.
• Hong Kong's Hang Seng climbed 0.5%, extending its weekly gain to 1.9%. The index recorded its third consecutive weekly advance. Energy-related names led the way with China Shenhua Energy, China Petroleum & Chemical, PetroChina, and CNOOC climbing between 2.0% and 3.8%. Consumer names lagged with Belle International and Want Want China falling 2.6% and 1.0%, respectively.
• China's Shanghai Composite shed 0.2%, extending its weekly decline to 1.3%. Shanghai Material Trading, Shanghai Potevio, Ningbo United, and Shanghai Shibei Hi-Tech posted losses between 7.1% and 7.8%.
• India's Sensex settled just below its flat line, but gained 2.3% for the week. Tata Consultancy and Infosys posted respective losses of 3.9% and 2.5%. Tata Consultancy expressed concern over the future of H1-B visas while Infosys retreated despite beating earnings expectations. Maruti Suzuki, Hero MotoCorp, Bajaj Auto, and Tata Motors lost between 0.7% and 1.5%.

---FX---

• USDJPY UNCH at 114.68
• USDCNY +0.1% to 6.9002
• USDINR +0.1% to 68.190

 Axcelis Tech downgrade details — to Hold at Stifel; tgt $16  (16.05)Stifel downgrades ACLS to Hold from Buy and sets target price at $16 as the stock has reached their target price of $16 and at this time, they believe their ests (and the stock price) reflect the current $35 billion wafer fab equipment (WFE) marketplace. While firm anticipates a growth year for the company in 2017, they believe there is limited upside to the stock based off their current forecasts. As they have noted for other names, firm believes they need to see either a 1) pullback in the group or 2) upward revisions to their WFE forecast to become more constructive on the group.

 Advance Auto downgraded to Neutral from Buy at BofA/Merrill  (174.47)

 Kennametal upgraded to Neutral from Underperform at BofA/Merrill  (34.56)

 Dollar General downgraded to Neutral from Buy at BofA/Merrill  (73.59)

 Generac downgraded to Underperform from Neutral at BofA/Merrill  (40.91)

 Tractor Supply upgraded to Outperform from Neutral at Wedbush  (75.95)

 Tsakos Energy downgraded to Neutral from Outperform at Credit Suisse  (5.10)

 IAMGOLD downgraded to Underperform from Neutral at Credit Suisse  (4.46)

 Franco-Nevada upgraded to Outperform from Neutral at Credit Suisse  (62.80)

 Yamana Gold downgraded to Neutral from Outperform at Credit Suisse  (3.13)

 First Horizon provides long term targets in slide presentation  (20.27)

• NIM 3.25-3.50% vs 2.94% in FY16
• NCO/Average Loans +0.20-0.60% vs +0.05% in FY16.
• Efficiency Ratio 60-65% vs 72% in FY16.

 Early premarket gappersGapping up: TBIO +29.5%, RXII +17.7%, NEPT +16.4%, SN +8.6%, P +7.9%, NVLS +7.7%, OPXA +7%, IAG +5.8%, MRNS +5%, ZIOP +5%, OREX +4.4%, IMMU +3.8%, GEVO +3.4%, GRUB +2.4%, SNY +2.1%, CNHI +1.8%, DB +1.8%, AUO +1.8%, MNST +1.7%, IOTS +1.6%, RACE +1.6%, CS +1.5%, NFLX +1.3%, VRX +1.1%, NVO +1%, APC +0.7%, PNC +0.6%

Gapping down: URRE -22.7%, SKLN -14.9%, HMST -3.1%, INFY -3%, RBA -2.8%, FCEL -2.6%, FCAU -2.3%, OOMA -2.2%, TWO -2.2%, LYG -1.5%, CLF -1.4%, VALE -1.3%, RIO -1%, WPX -0.9%, GME -0.9%, ABT -0.7%, BCS -0.6%, BAC -0.5%, BAC -0.5%

 European Markets Update: FTSE +0.3%, DAX +0.6%, CAC +0.9%

Major European indices trade in the green with Italy's MIB (+1.4%) showing relative strength amid gains in bank stocks. Bank of France Governor Francois Villeroy de Galhau said that concerns about rising inflation are «very exaggerated.» Separately, British Prime Minister Theresa May is expected to make a «major» Brexit-related speech on Tuesday, January 17. Also of note, German Finance Minister Wolfgang Schaeuble spoke in favor of taking steps to unwind the European Central Bank's ultra-loose monetary policy this year.

• In economic data:
  • Germany's December WPI +1.2% month-over-month (expected 0.3%; last 0.1%); +2.8% year-over-year (last 0.8%)
  • Spain's December CPI +0.6% month-over-month, as expected (last 0.6%); +1.6% year-over-year (consensus 1.5%; last 1.5%)

---Equity Markets---

• UK's FTSE is higher by 0.3% with homebuilders and other consumer names contributing to the advance. Barratt Developments, Persimmon, and Taylor Wimpey are up between 1.9% and 3.5% while Kingfisher, Burberry, InterContinental Hotels, and Carnival show gains between 0.8% and 3.0%.
• Germany's DAX trades up 0.6% with Deutsche Bank and Commerzbank among the leaders. The two names hold respective gains of 2.5% and 1.6%, while Daimler, Volkswagen, and BMW have added between 0.7% and 1.1%. Utility stock E.On is the weakest performer, shedding 0.5%.
• France's CAC has climbed 0.9%, largely thanks to relative strength in financials. Credit Agricole, BNP Paribas, and Societe Generale show gains between 1.9% and 2.7%. Renault has tumbled 2.4% after prosecutors in Paris opened a probe into a potential violation of emission standards.
• Italy's MIB outperforms with a gain of 1.4%. Financials UBI Banca, Unicredit, Banco Bpm, Banca Pop Emilia Romagna, and Banca Mediolanum are up between 3.2% and 7.8%.

 Alamos downgraded to Neutral from Outperform at Credit Suisse  (8.41)

 Overnight Treasury Summary

Treasuries Recover from Thursday Afternoon's Sell-Off

• U.S. Treasuries traded higher overnight as WTI crude fell 1.08% to $52.43/bbl. and the U.S. Dollar Index retreated 0.13% to 101.22. In international economic data, China's trade surplus unexpectedly declined in December on a larger-than-expected drop in exports. German wholesale prices grew faster than expected as well last month and Spanish consumer price inflation was revised upward. The most significant U.S. economic data for this week — December Retail Sales and PPI — will be released this morning at 08:30 ET. The S&P 500 is set to open up 0.05% at 2,271.6 and gold is down 0.20% to $1,197.4/troy oz.
• Yield Check:
  
  • 2-yr: -1 bp to 1.17%
  • 5-yr: -2 bps to 1.85%
  • 10-yr: -1 bp to 2.35%
  • 30-yr: -1 bp to 2.95%

• International News:
  
  • China's trade surplus unexpectedly narrowed in December to $49.8 bln from $44.6 bln in November
    
    • Exports fell by a greater-than-expected 6.1% y/y after ticking up by 0.1% in November
    • Imports grew by a greater-than-expected 3.1% y/y after 6.7% growth in November
  • Korea's central bank kept its main policy rate at 1.25%, as expected
  • In New Zealand, Electronic card retail sales fell 0.1% m/m in December (+5.8% y/y) after falling by the same percentage in November
  • German wholesale prices rose 1.2% m/m in December (+2.8% y/y), handily beating both expectations and November's 0.1% increase
  • Spain's CPI growth for December was revised up a tick to 1.6% y/y after the country saw just 0.7% inflation in November
    
    • The harmonized index of consumer prices grew by just 1.4% y/y in December, the same pace seen in November
  • The newest member of the Bank of England's Monetary Policy Committee, Michael Saunders, said that unemployment in the U.K. could remain below 5% for years (currently 4.8%) although he was much less sanguine about wage growth
  • The Canadian ratings agency DBRS is set to announce the results of its regular review of Italy's sovereign credit rating after the European market close today. Italy is currently rate A (low) — credit watch negative. A downgrade would force Italian banks to pay a larger haircut on Italian government bonds than the current 1.5%. With holdings of roughly EUR350 bln of government debt, a higher haircut could cost Italian banks billions of euros annually
  • Fed Chair Yellen said on Thursday evening that she is optimistic about the U.S. economy in the short run. Here words:
    «short term I would say I don't think there are serious obstacles. I see the economy as doing quite well»

• Data out Today:
  
  • December PPI and Core PPI (08:30 ET)
  • December Retail Sales and Retail Sales ex-auto (08:30 ET)
  • November Business Inventories (10:00 ET)
  • January Michigan Sentiment (10:00 ET)
• Fed Speaker:
  
  • Philadelphia Fed President Harker (FOMC voter) (09:30 ET)

Parker-Hannifin upgraded to Outperform from Market Perform at BMO Capital  (143.75)

 PACCAR upgraded to Outperform from Market Perform at BMO Capital  (66.33)

 Magna downgraded to Hold from Buy at TD Securities  (45.06)

 WABCO Holdings downgraded to Market Perform from Outperform at BMO Capital  (106.65)

 Rush Enterprises downgraded to Market Perform from Outperform at BMO Capital  (33.26)

Overseas Research Calls

Upgrades: 

• Ageas SA/NV (AGESY) upgraded to Overweight from Equal Weight at Morgan Stanley
• Randstad (RANJY) upgraded to Buy from Hold at ABN Amro
• National Grid (NGG) upgraded to Buy from Hold at Investec
• SSE (SSEZY) upgraded to Buy from Hold at Investec
• Nokia (NOK) upgraded to Buy from Neutral at Natixis

Downgrades: 

• Hugo Boss AG (BOSSY) downgraded to Neutral from Buy at Citigroup
• Credit Suisse (CS) downgraded to Underperform from Neutral at Macquarie
• Deutsche Boerse AG (DBOEY) downgraded to Hold from Buy at Bankhaus Lampe
• DNB ASA (DNBHF) downgraded to Hold from Buy at Berenberg
• UBM plc (UBMOF) downgraded to Neutral from Buy at Goldman
• Mediaset SpA (MDIUY) downgraded to Neutral from Buy at Goldman
• Drax Group (DRXGY) downgraded to Hold from Buy at Investec
• Premier Oil plc (PMOIY) downgraded to Equal Weight from Overweight at Barclays
• Kimberly-Clark de Mexico (KCDMY) downgraded to Underweight from Equal Weight at Barclays
• Metropole Television (MTVAF) downgraded to Neutral from Overweight at JP Morgan
• Vivendi (VIVHY) downgraded to Neutral from Overweight at JP Morgan
• Ubisoft (UBSFY) downgraded to Neutral from Overweight at JP Morgan
• ING Groep (ING) downgraded to Hold from Buy at Societe Generale

Miscellaneous: 

• Merck (MRK) initiated with a Buy at Bryan Garnier
• ITV plc (ITVPY) added to Conviction Buy List at Goldman
• Ladbrokes Coral (LDCOY) resumed with an Overweight at Barclays

 CBOE Holdings upgraded to Outperform from Neutral at Credit Suisse  (73.83)

 Toro upgraded to Buy from Neutral at Seaport Global Securities  (56.49)

 Ply Gem Holdings downgraded to Equal Weight from Overweight at a boutique firm  (16.30)

 On The Wires

• Atlantica Yield plc (ABY) announced it has signed a forbearance agreement in relation to the project financing agreements of Solana and Mojave with respect to minimum ownership provisions relating to Abengoa S.A. (ABGB) or subsidiaries and with respect to cross-default provisions relating exclusively to Abengoa (without relieving the projects from meeting their obligations). In addition, the Company signed waiver agreements in relation to the project financing agreements of Solnova 1/3/4, Solacor and Solaben 2/3 with respect to minimum ownership provisions relating to Abengoa.
• NCR Corporation (NCR) and Zebra Technologies Corporation (ZBRA) expanded their global strategic relationship in two key areas of NCR's Store Transformation portfolio to provide truly visionary and frictionless customer service to shoppers in-store.
• BAE Systems (BAESY) has received a $542 million contract from the U.S. Department of Defense to provide 145 M777 ultra-lightweight howitzers to the Indian Army through a Foreign Military Sale between the U.S. and Indian governments. Work on the contract will begin immediately and be performed by BAE Systems and its suppliers across the United Kingdom, United States, and India. Deliveries are scheduled to begin in June 2017.

Gapping up

Gapping up
In reaction to strong earnings/guidance:

• NEPT +13.8%

M&A news:

• P +7.8% (Sirius XM (SIRI) might be interested in acquiring Pandora, according to NY Post, also expects to exceed Q4 guidance)
• SN +7.8% (Anadarko Petroleum to sell Eagleford Shale assets in South Texas for approx $2.3 bln to Sanchez Energy and Blackstone Group),

Other news:

• RXII +40.4% (OPKO Health (OPK) increases stake to 5.11% (Prior 3.43%), changes shareholding position to passive from active)
• TBIO +27.7% (continued momentum)
• TTNP +22% ( CMC has granted a opermanent J-code for Probuphine)
• IOTS +5.3% (after ~50% move higher on Thursday)
• OPXA +5.2% (following late move higher into the close)
• OREX +4.4% (after spiking higher into the close)
• NVLS +4.1% (approved a restructuring plan as part of the Company's initiative to explore strategic alternatives; cutting 25 of 30 emplyees, including the CEO and CMO)
• IMMU +3.8% (continued momentum)
• ZIOP +3.6% ( following Najarian mention on CNBC)

Analyst comments:

• MBLY +2.8% (initiated with a Buy at Jefferies)
• GRUB +2.4% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
• CNHI +2% (upgraded to Neutral from Underperform at BofA/Merrill )
• NOK +1.5% (upgraded to Buy from Neutral at Natixis)
• NFLX +1.2% (upgraded to Hold at Deutsche Bank)
• CIEN +0.7% (initiated with a Buy at UBS)
• FB +0.7% (upgraded to Strong Buy from Outperform at Raymond James)

 Helmerich & Payne among stocks with favorable commentary on Thursday's Mad Money  (79.01)

Stocks with favorable mention: AAP, AMT, AMZN, AZO, BCS, DAL, ETFC, HAS, HP, KBH, MS, ORLY

Stocks with unfavorable mention: BEN, KMI, MAT, PLD, SAN, VC

 

Gapping down Gapping down In reaction to disappointing earnings/guidance: GME -7%, HMST -3.1%, (reports downside Q4 results and announces proposed settlement of SEC investigation) FHN -2.8%, INFY -1.6%, WFC -1.1%, BAC -0.8% M&A news: WPX -0.9% (will acquire assets that are expected to increase its Permian operations; commences underwritten public offering of 42 mln shares of its common stock), Other news: URRE -24.6% (proposes public offering of common stock; actual size or terms of the offering not yet determined) SKLN -15.6% (Skyline Medical will hold a conference call on January 19 at 4:30pm ET to provide a business update and a discussion on recent and upcoming milestones; prices public offering of 1,750,000 units at an offering price of $2.25/unit) MRNS -11.4% (following late move higher into the close) FCEL -2.6% (files for $150 mln mixed securities shelf offering) OOMA -2.2% (announces that certain of its stockholders, consisting of entities affiliated with Worldview Technology Partners, intend to offer shares of common stock for sale in an underwritten secondary offering) TWO -1.4% (to offer up to $250 mln of convertible senior notes due 2022; issues statement on recent developments, sees year-ending book value per diluted common share of $9.73-9.83 following Q4 market volatility) Analyst comments: DG -1.1% (downgraded to Neutral from Buy at BofA/Merrill)

 Ritchie Bros. downgraded to Underperform from Neutral at BofA/Merrill  (33.96)

 Gapping up/down: NEPT +14% after earnings, P +8% after guidance and M&A spec, NFLX and FB +1% after upgrades; WFC and BAC -1% after earnings, DG -1% after dg at BofA

Gapping up
In reaction to strong earnings/guidance:

• NEPT +13.8%

M&A news:

• P +7.8% (Sirius XM (SIRI) might be interested in acquiring Pandora, according to NY Post, also expects to exceed Q4 guidance)
• SN +7.8% (Anadarko Petroleum to sell Eagleford Shale assets in South Texas for approx $2.3 bln to Sanchez Energy and Blackstone Group),

Other news:

• RXII +40.4% (OPKO Health (OPK) increases stake to 5.11% (Prior 3.43%), changes shareholding position to passive from active)
• TBIO +27.7% (continued momentum)
• TTNP +22% ( CMC has granted a opermanent J-code for Probuphine)
• IOTS +5.3% (after ~50% move higher on Thursday)
• OPXA +5.2% (following late move higher into the close)
• OREX +4.4% (after spiking higher into the close)
• NVLS +4.1% (approved a restructuring plan as part of the Company's initiative to explore strategic alternatives; cutting 25 of 30 emplyees, including the CEO and CMO)
• IMMU +3.8% (continued momentum)
• ZIOP +3.6% ( following Najarian mention on CNBC)

Analyst comments:

• MBLY +2.8% (initiated with a Buy at Jefferies)
• GRUB +2.4% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
• CNHI +2% (upgraded to Neutral from Underperform at BofA/Merrill )
• NOK +1.5% (upgraded to Buy from Neutral at Natixis)
• NFLX +1.2% (upgraded to Hold at Deutsche Bank)
• CIEN +0.7% (initiated with a Buy at UBS)
• FB +0.7% (upgraded to Strong Buy from Outperform at Raymond James)

Gapping down
In reaction to disappointing earnings/guidance:

• GME -7%, HMST -3.1%, (reports downside Q4 results and announces proposed settlement of SEC investigation)
• FHN -2.8%, INFY -1.6%, WFC -1.1%, BAC -0.8%

M&A news:

• WPX -0.9% (will acquire assets that are expected to increase its Permian operations; commences underwritten public offering of 42 mln shares of its common stock),

Other news:

• URRE -24.6% (proposes public offering of common stock; actual size or terms of the offering not yet determined)
• SKLN -15.6% (Skyline Medical will hold a conference call on January 19 at 4:30pm ET to provide a business update and a discussion on recent and upcoming milestones; prices public offering of 1,750,000 units at an offering price of $2.25/unit)
• MRNS -11.4% (following late move higher into the close)
• FCEL -2.6% (files for $150 mln mixed securities shelf offering)
• OOMA -2.2% (announces that certain of its stockholders, consisting of entities affiliated with Worldview Technology Partners, intend to offer shares of common stock for sale in an underwritten secondary offering)
• TWO -1.4% (to offer up to $250 mln of convertible senior notes due 2022; issues statement on recent developments, sees year-ending book value per diluted common share of $9.73-9.83 following Q4 market volatility)

Analyst comments:

• DG -1.1% (downgraded to Neutral from Buy at BofA/Merrill)

 Filings, Offerings and Pricings

Filings:

• FuelCell Energy (FCEL) files for $150 mln mixed securities shelf offering
• Navios Maritime Partners (NMM) files for $500 mln mixed securities shelf offering
• Strongbridge Biopharma (SBBP) files for approx 28.3 mln ordinary share offering by selling shareholders
• US Foods (USFD) files for $100 mln offering of common stock on behalf of selling stockholders

Offerings:

•  Two Harbors Investment (TWO) to offer up to $250 mln aggregate principal amount of convertible senior notes due 2022 in an underwritten public offering

Pricings:

• Ooma (OOMA 9.20) says entities affiliated with Worldview Technology Partners agreed to sell to the co's underwriter 2,850,000 shares of common stock at $8.65/share
• Timberline Resources (TLRS 0.26) initiates a $1,250,000 private placement offering of units at a price of $0.25/Unit
• Uranium Resources (URRE 3.13) prices registered public offering of an aggregate of 4,825,871 shares of common stock at a price to the public of $2.01 per share
• WPX Energy (WPX 13.78) prices 45 mln shares (upsized from 42 mln) of common stock gross proceeds of $600.8 mln; implies price at $13.35

 On The Wires

• Panera Bread (PNRA) announced that its entire U.S. food menu and portfolio of Panera at Home products are now free from all artificial flavors, preservatives, sweeteners, and colors from artificial sources as defined by the company's No No List, inclusive of 96 separate ingredients and additive classes.
  Panera is the first national restaurant company to make such a comprehensive commitment and, more importantly, to meet it.
• Swift Energy (SWTF), on January 10, 2017, advised employees it was implementing a reduction in workforce effective immediately, which will result in a reduction of total employees by approximately 45% primarily at its Houston headquarters. The Company undertook this reduction to more efficiently size the Company as it pursues its more geographically focused business plan. The Company expects that it will record pre-tax expenses in the first quarter of 2017 of approximately $3.25 million relating to employee termination benefits, consisting of approximately $2.25 million of severance costs and approximately $1.0 million in non-cash acceleration of restricted stock unit equity awards.

 Evolent Health upgraded to Outperform from Market Perform at Wells Fargo  (17.60)

 S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +6.30.

The stock market is poised for a slightly higher open as the S&P 500 futures trade two points above fair value.

Banks dominated the earnings front today, with JPMorgan Chase (JPM 86.80, +0.56), Bank of America (BAC 22.84, -0.08), Wells Fargo (WFC 54.15, -0.40), BlackRock (BLK 381.00, 2.71), and PNC Financial Services (PNC 118.00, +0.07) all reporting. Bank of America and Wells Fargo are both down 0.4% and 0.7%, respectively, after disappointing results. Conversely, JPMorgan Chase, BlackRock, and PNC are all up between 0.6% and 0.8%, after reporting better-than-expected earnings.

In corporate news, Pandora Media (P 13.00, +1.00) has jumped 8.3% after saying it expects to surpass fourth-quarter guidance. In addition, the New York Post reported that Sirius XM (SIRI 4.58, 0.00) might be interested in acquiring the company.

U.S. Treasuries have seen a downtick in recent action, with the 10-yr yield up three basis points to 2.39%.

On the data front, December retail sales increased 0.6%, which compares to the Briefing.com consensus of 0.7%. The prior month's reading was revised higher to 0.2% from 0.1%. Excluding autos, retail sales rose 0.2% while the consensus expected an uptick of 0.6%. The prior month's reading was revised higher to 0.3% from 0.2%.

December producer prices increased 0.3%, which is in line with the Briefing.com consensus. Core producer prices increased 0.2% while the Briefing.com consensus expected an increase of 0.1%.

In addition to PPI and Retail Sales, today's economic data will also include November Business Inventories (Briefing.com consensus 0.6%) and the January Michigan Sentiment Index (Briefing.com consensus 98.5). The two reports will be released at 10:00 am ET.

 Immersion signs a multi-year agreement with Nintendo (NTDOY) to allow Immersion to adapt its TouchSense technology to the new Nintendo SwitchTM system; as part of the agreement Nintendo receives a license to Immersion’s patent portfolio  (10.24)Once it is adapted to the Nintendo Switch system, game developers will be able to use Immersion's TouchSense software suite to design games for the Nintendo Switch system. Immersion's TouchSense software will help developers provide immersive touch-based gaming controls to players around the world.

 Ruby Tuesday gapped up after interim CEO disclosed the purchase of 20k shares  (2.28 +0.11)

 Opening Market Summary: Financials Carry Stock Market to Modest Gain

The stock market has sprung upward out of the gate, piggybacking on the financial sector (+1.4%) after an array of banks reported their quarterly results this morning. The S&P 500 is higher by 0.3%.

Financials lead with Bank of America (BAC 23.20, +0.28), JPMorgan Chase (JPM 87.42, +1.23), and Wells Fargo (WFC 55.49, +0.99) all up between 1.4% and 1.9% despite reporting mixed earnings results. The top-weighted technology sector (+0.2%), consumer discretionary (+0.2%), and industrials (+0.3%) battle for second place while non-cyclical sectors generally sit in the red.

U.S. Treasuries continue to fall in early action, surpassing their overnight lows. The benchmark 10-yr yield is five basis points higher at 2.41%.

 The materials sector is trading lower by 0.1%, under-performing the broader market +0.3%

General Commentary: The materials sector is trading lower by 0.1% which is under-performing the S&P 500 (+0.3%). Oil is trading lower by 0.5% in today's session. Gold prices are higher by 0.2%, while copper is down -0.8%. There is no notable M&A news in the sector today.

Earnings:

Decliners:

• RYI -2.2% sees sequential seasonally lower revenue in Q4, loss of $11-14 mln

News

Gainers

• TLRS +4.9% initiated a $1,250,000 private placement offering of units at a price of $0.25/Unit.
• KOP +2.0% proposed an offering through a private placement of $400 mln aggregate principal amount of senior notes due 2025.
• IPHS +0.6% entered into a settlement with the EPA and Louisiana Department of Environmental Quality to address the Government Parties' concerns regarding a small number of manufacturing processes at its Geismar.
• TMST +0.2% adopted mark-to-market reporting of pension and OPEB plans; Net impact is estimated to decrease 2016 op results by approx $25 -35 mln.
• SON +0.2% is implementing price increases for all paperboard tubes and cores in the US and Canada by a minimum of 8% vs 6-8% previously-announced in October 2016; effective with shipments beginning February 13, 2017.

Decliners:

• GORO -2.5% announced preliminary 2016 year-end and fourth quarter mill production

Analyst Actions

• WMS +9.1% upgraded to Outperform at Robert W. Baird; tgt raised to $29.
• CBT +0.8% initiated with a Hold at Aegis Capital

Decliners:

• AGI -5.6% downgraded to Neutral from Outperform at Credit Suisse.
• IAG -2.8% downgraded to Underperform from Neutral at Credit Suisse
• AUY -2.8% downgraded to Neutral from Outperform at Credit Suisse.

 Sector Summary: Technology (XLK +0.30%) trading higher today, modestly ahead of the broader market

The tech sector — XLK — trades modestly ahead of the broader market. Semiconductors, meanwhile, display relative strength as the SOX index trades +0.47%. Within the SOX index, SIMO (+2.35%) outperforms, while MU (-0.94%) lags. Among other major indices, the SPY is trading 0.31% higher, while the QQQ +0.31% and the NASDAQ +0.36% also trade slightly higher today. Among tech bellwethers, QCOM (+0.99%) is showing relative strength, while VOD (-0.84%) lags.

Notable laggards following earnings:

• INFY (-5.1%) reported better than expected Q3 earnings and in-line revs; reaffirmed mid-pt of FY17 revs guidance

Gainers on news:

• TNAV (+22.1%) co announced a settlement of patent lawsuit and updated guidance to reflect the impact of the resolution and higher than expected revenue for the December quarter.
• P (+5.9%) co expects to exceed Q4 guidance, citing subscription momentum and RPM growth; will undertake operational efficiency measures.
• IMMR (+5.6%) co signed a multi-year agreement with Nintendo (NTDOY) to allow Immersion to adapt its TouchSense technology to the new Nintendo SwitchTM system; as part of the agreement Nintendo receives a license to Immersion's patent portfolio.
• LVLT (+0.2%): CenturyLink (CTL) refiled pre-merger notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with its previously-announced acquisition of Level 3.

Laggards on news:

• GME (-8.6%) co reaffirmed Q4 EPS on lower tax rate; lowered Q4 comp guidance after holiday comps fell 18.7%.

Among notable analyst upgrades:

• FB (+1.3%) upgraded to Strong Buy from Outperform at Raymond James
• NFLX (+2.2%) to Hold from Sell at Deutsche Bank
• CMCSA (+1.8%) to Buy from Hold at Deutsche Bank
• MX (+3.8%) to Buy from Hold at Needham
• GRUB (+2.5%) to Overweight from Equal Weight at Morgan Stanley
• FTV (+2.0%) to Outperform from Neutral at Credit Suisse

Among notable analyst downgrades:

• NICE (-0.7%) downgraded to In-Line from Outperform at Imperial Capital
• Z (+0.2%) to Equal Weight from Overweight at Morgan Stanley
• ACLS (-1.9%) to Hold from Buy at Stifel
• NOK (+1.6%) to Hold from Buy at Canaccord Genuity

Scheduled to report earnings tomorrow morning:

• PRGS

 Notable movers of interest: GME -8.2% on lower Q4 comp guidance after holiday comps fell 18.7%

The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

• MNST (44.39 +2.97%): Shares trade higher following presentation last night showing sales trends; Single Service Citrus Soda Dollar Share for December: Mountain Dew 24.3%; Kick Start 3.3%; Mutant 1.2%.
• JPM (87.9 +1.93%): Reports Q4 beat, revs in-line.
• NFLX (131.61 +1.88%): Upgraded to Hold at Deutsche Bank.

Large Cap Losers

• INFY (14.37 -5.77%): Down despite down despite earnings beat; future of H-1B Visas Unclear
• FCAU (9.72 -2.34%): Shares continues to slide on yesterdays news that the EPA issued notice of violation to FCAU for violating Clean Air Act related to engine software. 

Mid Cap Gainers

• DXCM (83.28 +23.18%): Announced the determination of a benefit category and coverage for CGM by CMS. In order to be included in this category, the system must be defined as «therapeutic» CGM, meaning you can make treatment decisions using the device.
• P (12.81 +6.75%): Shares rise after co announces that it expects to exceed Q4 guidance, will undertake operational efficiency measures. 

Mid Cap Losers

• GME (22.69 -8.21%): Reaffirms Q4 EPS on lower tax rate; lowers Q4 comp guidance after holiday comps fell 18.7%
• TWO (8.69 -1.42%): Announces the pricing of $250 mln aggregate principal amount of 6.25% convertible senior notes due 2022 in an underwritten public offering.

 

Globus Maritime Limited resumes higher after volatility halt; stock mirroring broader strength in drybulk names  (4.57 +1.50)Drybulk peers seeing upside today: ESEA +10.62% DCIX +8.58% SINO +8.17% NM +4.37% SHIP +4.35% SBLK +4.17% NMM +4.15% GNK +2.60% SB +2.31% KEX +1.84% SALT +1.67% SFL +0.32%

 Economic Summary: Retail Sales roughly in with expectations

Economic Data Summary:

• December PPI 0.3% vs Briefing.com consensus of 0.3%; November was 0.4%
• December Core PPI 0.2% vs Briefing.com consensus of 0.1%; November was 0.4%
  • The PPI report was mostly in-line with expectations. The index for final demand prices increased 0.3%, as expected, while core PPI, which excludes food and energy, jumped 0.2% (Briefing.com consensus +0.1%). The key takeaway from the report is that higher energy prices are driving up producer prices and continue to support the notion that inflation rates are apt to pick up in 2017.
• December Retail Sales 0.6% vs Briefing.com consensus of 0.7%; November was 0.1%
• December Retail Sales Ex-Auto 0.2% vs Briefing.com consensus of 0.6%; November was 0.2%
  • The key takeaway from the report is that consumers were somewhat guarded with their discretionary spending on goods in December despite some decent wage growth and reports of increased confidence. That is likely to temper some of the forecasts for Q4 real GDP growth.
• November Business Inventories -0.1% vs Briefing.com consensus of 0.6%; October was -0.2%
• January — Prelim Michigan Sentiment 98.1 vs Briefing.com consensus of 98.5; Dec — Final was 98.2

Upcoming Economic Data:

• January Empire Manufacturing due out Tuesday at 8:30 (Briefing.com consensus of; was 9.0%)

Other International Events of INterest

• China's December trade surplus $40.82 billion (expected $46.50 billion; last $44.61 billion). December Exports -6.1% year-over-year (expected -3.5%; last 0.1%) and December Imports +3.1% year-over-year (consensus 2.7%; previous 6.7%)

 Early Options Activity

Taking an early look at the options market, we found the following names that may be worth watching throughout the day for further indication of investor expectations given their options volume and implied volatility movement.

Stocks seeing volatility buying (bullish call buying/bearish put buying):

Calls:

• CCJ Jan 20 calls are seeing interest with 2160 contracts trading vs. open int of 2810, pushing implied vol up around 3 points to ~42% — co is expected to report earnings early February.

Puts:

• BX Jan 47 puts are seeing interest with 1670 contracts trading vs. open int of 1670, pushing implied vol up around 3 points to ~33% — various financial peers reported earnings earlier this morning. Co is confirmed to report earnings January 26 before the open (outside of expiration).

Stocks seeing volatility selling:

• PNC, WFC implied vol is lower following earnings/guidance

Sentiment: The CBOE Put/Call ratio is currently: 0.65… VIX: (11.27, -0.27, -2.3%).
January 20 is options expiration — the last day to trade January equity options.
*Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments.

 Rumor Round Up

Rumor activity was active to close out the week.

• NY Post detailed that Sirius XM (SIRI 4.60 +0.02) might be interested in acquiring Pandora (P 12.84 +0.84).
• Amicus Therapeutics (FOLD 6.06 +0.47) M&A speculation circulated.
• Twitter (TWTR 17.36 -0.01) vague renewed M&A chatter circulated.
• There was some M&A speculation in Maxim (MXIM 41.72 +1.25) also making the rounds.

While many rumors circulate during the day, and the validity of the source of these rumors can be questionable, the speculation may increase volatility in the near term.

 Globus Maritime Limited trading halted for news pending  (7.24 +4.17)Briefing.com note: GLBS has been halted for volatility 5 times on its way up to +135% on the session; at the moment, select drybulk names trade higher on the session DCIX +19.91% SINO +10.80% SB +9.23% NM +7.70% GNK +6.75% SHIP +6.52% NMM +6.45% GOGL +2.79% EGLE +2.49% KEX +1.46% SALT +0.83% DSX +0.79% SFL +0.65%

 Sector Summary: Industrials trade slightly higher than the broader market; transition spokesperson says that President Elect Trump will meet with Lockheed Martin’s (LMT) CEO at 12pm ET today

The Industrials sector (XLI) is trading +0.4% today, higher than the broader market (SPY +0.3%). In a slow day in the industrial sector, Genesee & Wyoming (GWR +2.5%) reports December traffic and a transition spokesperson says that President Elect Trump will meet with Lockheed Martin's (LMT +0.8%) CEO at 12pm ET today.

Earnings

• Dover (DOV +1.5%) Sees FY17 $3.40-3.60 vs $3.65 consensus.
  • Forecasts 2017 revenue growth in the range of 10% to 12% vs. +10.9% consensus, comprised of organic revenue growth of 3% to 5%, and acquisition growth of ~10%, offset in part by a 2% impact from currency and a 1% impact from dispositions
  • Reaffirms FY16 adj. EPS $3.00-3.05 vs. $2.92 consensus.

News

• Embraer SA (ERJ +1.6%) delivered 32 (vs 33 last year) commercial and 43 executive jets (vs 45 last year), 25 of which are light jets and 18 are large, in Q4. 
• Genesee & Wyoming (GWR +2.6%) reports December traffic was 270,543 carloads, +26.2% y/y.
• Lockheed Martin (LMT +0.8%): Transition spokesperson says that President Elect Trump will meet with LMT CEO at 12pm ET today.

Broker Research

Upgrades

• CNH Industrial (CNHI +1.7%) upgraded to Neutral from Underperform at BofA/Merrill.
• RBC Capital Mkts upgrades Colfax (CFX +5.8%) to Outperform from Sector Perform and raises their tgt to $43 from $32.
• RBC Capital Mkts upgrades Paccar (PCAR +1.8%) to Outperform from Sector Perform and raises their tgt to $75 from $54.
• Landstar System (LSTR +1.8%) upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts.
• Pentair (PNR +2.2%) upgraded to Overweight from Neutral at JP Morgan
• Roper (ROP +0.7%) upgraded to Overweight from Neutral at JP Morgan
• Kennametal (KMT +3.3%) upgraded to Neutral from Underperform at BofA/Merrill
• Parker-Hannifin (PH +1.5%) upgraded to Outperform from Market Perform at BMO Capital
• PACCAR (PCAR +1.8%) upgraded to Outperform from Market Perform at BMO Capital
• Toro (TTC +2.9%) upgraded to Buy from Neutral at Seaport Global Securities
  

Downgrades

• RBC Capital Mkts downgrades Acutant (ATU -0.8%) to Sector Perform from Outperform and lowers their tgt to $27 from $29.
• Advisory Board (ABCO -0.7%) downgraded to Neutral from Overweight at Piper Jaffray
• Trimas (TRS +0.5%) downgraded to Neutral from Overweight at JP Morgan
• Rush Enterprises (RUSHA -1%) downgraded to Market Perform from Outperform at BMO Capital
• Vista Outdoor (VSTO -3.6%) downgraded to Neutral from Buy at CL King
• Generac (GNRC -4.8%) downgraded to Underperform from Neutral at BofA/Merrill.
• Ritchie Bros. (RBA -2.3%) downgraded to Underperform from Neutral at BofA/Merrill

Other

• Cowen raises their Delta (DAL +0.8%) tgt to $60 from $57 as they believe there is earnings upside to Street ests if margins begin to improve in 2H17.
• EMCOR Group (EME +1.3%) initiated with a Neutral at Macquarie.
• Comfort Systems (FIX +2.6%) initiated with a Outperform at Macquarie.

 European Markets Closing PricesEuropean markets are now closed; stock markets across Europe performed as follows:

• UK's FTSE: + 0.6%
• Germany's DAX: + 0.9%
• France's CAC: + 1.2%
• Spain's IBEX: + 1.0%
• Portugal's PSI: + 0.5%
• Italy's MIB Index: + 1.9%
• Irish Ovrl Index: + 0.5%
• Greece ASE General Index: -2.0%

 Stocks/ETFs that traded to new 52 week highs/lows this session — New highs (207) outpacing new lows (17)Stocks that traded to 52 week highs: AAOI, ACP, ACSF, ACXM, AEIS, AEL, AFAM, AGCO, AGD, AGO, AHL, AIF, AKAO, ALB, AMAT, AMTD, ANGO, ANTM, AOD, APO, AROC, ARW, ASMB, ASML, ATKR, AXTI, BAC, BANR, BGCP, BHE, BNS, BOX, BPOP, BUSE, BWXT, CACQ, CAI, CCMP, CENX, CGNX, CHE, CHKP, CIBR, CLVS, CMCSA, CNI, CNV, COBZ, COHR, CPRT, CSQ, CSX, DISH, DKL, DOV, DSCI, ECPG, EMKR, ENH, ENVA, ETFC, EVR, EWBC, EXEL, EXTN, FGEN, FIVN, FLOW, FRC, FTSL, FVC, GBX, GEO, GER, GKOS, GLOG, GMED, GNTX, GS, HBAN, HEOP, HFWA, HIG, HIL, HQY, HTBK, HUBB, HYH, IAC, ICON, IPHI, IRDM, ITI, JCOM, JPM, KAR, KEM, KEY, KIN, KLIC, KMT, KN, KRNT, LABL, LAD, LAMR, LBRDK, LBTYA, LBTYK, LECO, LOXO, LRCX, MA, MASI, MGLN, MKSI, MOS, MPET, MPLX, MS, MXL, MYCC, NGL, NHF, NOVT, NTRS, NXRT, NXTM, ON, OUT, PACW, PAH, PATK, PCI, PEGA, PH, PHG, PLXS, PME, PPBI, PRI, PRXL, PSB, PSTB, PTR, PZN, QQEW, QQQ, QTEC, RAD, RE, RF, RJF, RNR, ROBO, ROG, ROP, RY, RYAM, SAN, SCCO, SCHW, SCM, SIVB, SKYY, SN, SNA, SNI, SNP, SNV, STI, STM, STO, STT, SYMC, TAC, TBIO, TCBK, TD, TER, TIER, TKR, TLI, TLLP, TNAV, TOT, TQQQ, TSE, TSEM, TSRO, TXN, TY, UBNT, UCTT, UNM, USA, VALE, VIDI, VOC, VONG, VR, VVC, WATT, WCG, WLDN, WNC, WOOF

Stocks that traded to 52 week lows: BF.B, BONT, COSIQ, DRYS, EMG, FESL, FTEK, GBSND, HIMX, ICLD, IFON, M, SQQQ, TVIX, TWER, VFC, YECO

Thinly-Traded Stocks (ADV below 45k) that traded to 52 week highs on High Volume: ANCX, CLRO, ENFC, FSZ, GBLI, GTWN, IPKW, ISTR, MMAC, NAKD, NVEC, ONEQ, OVLY, PBBI, PTNR, RGT, SGU, TWIN

Thinly-Traded Stocks (ADV below 45k) that traded to 52 week lows on High Volume: ATAI, CGG, MXPT

ETFs that traded to 52 week highs: EWG, EWQ, FDN, IAI, IWF, IYG, QQQ, SKYY, XLK

ETFs that traded to 52 week lows: VXX

 

Today's biggest % gainers/losersThe following are today's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume). Today's top 20 % gainers Healthcare: DXCM (86.38 +27.76%), FOLD (6.15 +10.02%), ARRY (11.01 +8.9%), PODD (43.08 +7.35%), TSRO (157.34 +7.05%), SGMO (4.2 +6.33%), CLVS (56.55 +5.72%), ALDR (22 +5.52%), CYH (6.93 +5.31%) Materials: CENX (11.03 +6.47%) Industrials: GRAM (4.74 +7.48%), YRCW (14.37 +5.66%), CFX (38.97 +5.61%) Consumer Discretionary: ENT (6.71 +6.51%), THRM (35.28 +6.41%) Information Technology: RUBI (8.57 +12.11%), P (12.83 +6.92%), SSNI (13.38 +5.77%), ATHM (30.18 +5.49%) Energy: SN (10.94 +25.69%) Today's top 20 % losers Healthcare: CSLT (3.98 -3.05%), XLRN (25.5 -2.75%), ENDP (13.55 -2.31%) Materials: RYI (12.41 -8.43%), AGI (8.1 -3.69%), CF (33.62 -2.58%), BAK (22.27 -2.5%), MTL (6.49 -2.41%) Industrials: GNRC (38.53 -5.82%) Consumer Discretionary: GME (22.66 -8.33%), FCAU (9.57 -3.81%), PVH (90.22 -3.12%) Information Technology: INFY (14.27 -6.46%), HIMX (5.72 -2.56%) Financials: HMST (29.6 -4.36%) Energy: PDS (5.41 -3.05%), CRC (20.42 -2.58%), SM (33.45 -2.34%), HLX (8.34 -2.29%) Consumer Staples: BRFS (14.27 -3.71%)

 Today's most active stocksThe following are today's most active stocks ranked by volume and relative volume, categorized by sectors (over $300 mln market cap and 100K average daily volume).

Today's top 20 volume

• Materials: FCX (19.79 mln -0.39%), VALE (17.02 mln +2.7%)
• Consumer Discretionary: FCAU (17.51 mln -3.81%), JCP (12.28 mln -1.74%), F (11.91 mln -0.48%), SIRI (11.54 mln +0.51%)
• Information Technology: AMD (17.32 mln -1.15%), FB (12.15 mln +2%), P (11.47 mln +6.92%), INFY (11.15 mln -6.46%), AAPL (9.94 mln -0.09%), NOK (9.69 mln +1.49%)
• Financials: BAC (95.47 mln +0.92%), WFC (18.77 mln +2.2%), JPM (14.83 mln +0.86%), RF (14.43 mln +2.63%), C (11.62 mln +1.42%)
• Energy: WPX (34.13 mln +1.38%), CHK (11.12 mln -0.43%)
• Consumer Staples: RAD (23.08 mln -0.06%)

Today's top relative volume (current volume to 1-month average daily volume)

• Healthcare: DXCM (3.11x +27.76%)
• Industrials: GNRC (1.77x -5.82%), GRAM (1.61x +7.48%), WMS (1.56x +3.86%)
• Consumer Discretionary: GME (4.15x -8.33%), ICON (1.72x +1.97%), MYCC (1.56x -1.87%)
• Information Technology: INFY (2.28x -6.46%), CHKP (1.66x +3%), SSNI (1.49x +5.77%), RUBI (1.48x +12.11%), P (1.48x +6.92%)
• Financials: FHN (2.17x -1.21%), HTH (2.05x -1.89%), PDBC (1.59x -0.29%)
• Energy: WPX (4.93x +1.38%), SN (3.63x +25.69%), FTI (1.92x -0.64%)
• Telecommunication Services: TEF (2.04x -0.05%)
• Utilities: WGL (1.69x -1.03%)

 Market Internals

The broader market displays relative strength at the moment, rebounding off yesterday's losing affair with the Nasdaq Composite leading up 33 points (+0.59%) to 5580, the S&P 500 is higher by 5 (+0.22%) to 2275, and the Dow Jones Industrial Average gains 8 (+0.04%) to 19898. Action has come on mixed average volume (NYSE 278 vs. avg. of 348; NASDAQ 813 mln vs. avg. of 802), with advancers outpacing decliners (NYSE 1854/1091, NASDAQ 1999/747) and new highs outpacing new lows (NYSE 114/7, NASDAQ 127/11).

Relative Strength:

Mexico-EWW +2.1%, Egypt-EGPT +1.8%, Turkey-TUR +1.7%, Semis-SMH +1.5%, Clean Energy-PBW +1.3%, Reg. Banking-KRE +1.3%, US Nat Gas-UNG +1.2%, Saudi Arabia-KSA +1.2%, S. Africa-EZA +1.2%, Biotech-IBB +1.2%, Coal-KOL +1.2%, Banking-KBE +1.2%, Sweden-EWD +1.1%, Nordic 30-GXF +0.8%.

Relative Weakness:

Greece-GREK -1.7%, Russia-RSX -1.3%, Brazil-EWZ -1.3%, US Diesel/Heating Oil-UHN -1.3%, India-INP -1.0%, Colombia-GXG -0.9%, Malaysia-EWM -0.9%, US Oil-USO -0.9%, Philippines-EPHE -0.8%, Cocoa-NIB -0.8%, 20+ Yr. Treas. Bond-TLT -0.8%, Short-Term Futures-VXX -0.8%, Jr. Gold Miners-GDXJ -0.7%, Oil Svcs-OIH -0.6%.

 Sector Summary: The Healthcare sector (+0.31%) is trading higher today, outperforming the S&P 500 (+0.18%)Gainers on news:

• Dexcom (DXCM +29.73%) Centers for Medicare & Medicaid Services (CMS) Classify Therapeutic Continuous Glucose Monitors (CGM) as «Durable Medical Equipment» under Medicare Part B
• Rxi Pharma (RXII +15.6%) OPKO Health (OPK) increases stake to 5.11% (Prior 3.43%), changes shareholding position to passive from active
• Titan Pharma (TTNP +7.93%) announces that the CMC has granted a permanent J-code for Probuphine; the new J-code became effective January 1, 2017

Decliners on news:

• Skyline Medical (SKLN -14.57%) announces the pricing of a firm commitment underwritten public offering of 1,750,000 units at an offering price of $2.25/unit

Upgrades/Downgrades:

• Clovis Oncology (CLVS +5.35%) initiated with a Overweight at Morgan Stanley
• Evolent Health (EVH +4.26%) upgraded to Outperform from Market Perform at Wells Fargo
• Tesaro (TSRO +6.22%) initiated with a Overweight at Morgan Stanley

 Today's biggest point gainers/losersBiggest point gainers: DXCM 87.27(19.66), TSRO 156.6(9.62), REGN 371.78(7.34), ICPT 115.94(5.94), TSLA 234.91(5.32), WAT 142.17(3.82), BLK 381.95(3.66), NFLX 132.79(3.61), IBB 282.4(3.47), PODD 43.44(3.31), CLVS 56.65(3.16), EGRX 69.4(3.03), PRI 75.46(2.86), MCK 147.52(2.84), PANW 139.07(2.71), CHKP 91.73(2.54), LRCX 110.58(2.41), AKAO 18.18(2.37), STRP 43.5(2.37), FB 128.92(2.3), SN 10.89(2.19), TIF 82.72(2.17), FLT 151.14(2.15), GS 245.97(2.13), HLF 52.05(2.11)

Biggest point losers: PVH 90.02(-3.11), PSA 214.64(-2.66), GNRC 38.51(-2.4), GME 22.63(-2.09), HUM 203.23(-2.02), ATHN 121.24(-1.84), HMST 29.5(-1.45), FANG 102.15(-1.42), NEE 118.17(-1.33), BLL 75.8(-1.25), TDG 252.49(-1.13), AAOI 28.8(-1.06), BHI 61.41(-1.01), TLT 120.88(-1.01), INFY 14.3(-0.96), CF 33.58(-0.93), EGN 54.61(-0.91), BURL 84.43(-0.88), EXR 72.93(-0.88), RCL 85.04(-0.85), SM 33.44(-0.81), WGL 79.45(-0.81), MSM 98.83(-0.8), TSO 79.89(-0.79), K 71.13(-0.79)

 

Hearing Sanchez Energy was upgraded to Buy from Hold at KLR Group  (11.31 +2.61)

 

Earnings Calendar for the week of January 16 Monday (January 16) MARKETS CLOSED IN OBSERVANCE OF MARTIN LUTHER KING, JR. DAY Tuesday (January 17) Pre-Market: UNH, MS, INFO, CMA, EDU, SNV, OZRK, PRGS After-Hours: UAL, CSX, LLTC, IBKR, HBHC, FULT, ADTN, PNFP, RNST Wednesday (January 18) Pre-Market: C, GS, USB, ASML, NTRS, FAST, AMTD, CBSH After-Hours: NFLX, CP, PLXS, CLC, PTC, WTFC, SLM, FNB, CNS, CVBF, EGBN Thursday (January 19) Pre-Market: UNP, BK, PPG, BBT, KEY, MTB, KCG, CHKP, GATX, MTG, WBS, TAL, WNS, HOMB, IIIN, SASR Intra-Day: WABC After-Hours: IBM, AXP, SWKS, PBCT, ASB, TEAM, FFBC, BMTC, INDB Friday (January 20) Pre-Market:  GE, SLB, SYF, STI, RF, CFG, COL, KSU After-Hours: None confirmed

 Sector Summary: S&P Consumer Discretionary Index +0.3%, in-line with the broader marketThe consumer discretionary group is in-line with the broader market. The retail group is slightly outperforming with the Retail HOLDRS Trust (RTH) +0.4% and the SPDR S&P Retail ETF (XRT) +0.6%.

Notable earnings/guidance: 

• Trading higher following earnings/guidance: 
  • P 7.9% (issued upside guidance, NYPost also reported potential Sirius M&A interest)
  • MNST 3% (following presentation last night showing sales trends)
  • MTN 1.9% (management sticks by FY17 guidance despite slow start to ski season)
• Trading lower following earnings/guidance: 
  • GME -8.8% (reaffirms Q4 $2.23-2.38 vs $2.33 Capital IQ Consensus Estimate; holiday comps -19%; downgraded to Neutral at Macquarie)

In the news:

• National Retail Federation says holiday retail sales increased 4% in 2016 to $658.3 billion.
• Leaders: 
  • PENN 0.2% (Penn Natl Gaming prices $400 mln of 5.625% Senior Notes due 2027)
• Laggards: 
  • KODK -0.2% (announces action to streamline costs in its Prosper business while the sale process continues, sees restructuring and related charges of $12-$17 mln)
  • K -0.8% (names Fareed Khan as CFO effective February 17)

Other notable trends:

• For profit education names are higher: UTI +4.2%, EDU +2.1%, CPLA +1.8%, APEI +1%, LOPE +0.7%, DV +0.6%, NORD +0.6%, CECO +0.6%, LINC +0.5%, STRA +0.5%, GHC +0.3%, BPI +0.2%, APOL +0.1%

Analyst related:

• Upgrades: TIF 2.6% (upgraded to Market Perform from Underperform at Wells Fargo), PH 1.4% (upgraded to Outperform from Market Perform at BMO Capital)
• Downgrades:  DG -0.3% (downgraded to Neutral from Buy at BofA/Merrill), AAP 0.6% (downgraded to Neutral from Buy at BofA/Merrill)
• Misc: COLM 1.9% (initiated with a Buy at CL King)

 Lockheed Martin midday strength follows Trump talks over lowering F-35 program costs  (254.95 +2.33)

• Aerospace/defense names are mostly higher on the day: LLL +1.5%, LMT +0.9%, EADSY +0.9%, NOC +0.6%, BA +0.4%, RTN +0.3%

 DBRS downgrades Italy to BBB (high), Stable Trend

 

SPY up 0.23%; Financials are the best performing sector and Utilities are the worst performing sector Sector Ticker % Change YTD % Change Financials XLF 0.7% 1% Industrials XLI 0.4% 2% Cons. Disc. XLY 0.4% 3% Telecom IYZ 0.4% 3% Technology XLK 0.3% 3% Healthcare XLV 0.3% 3% Cons. Staples XLP 0.0% 0% Energy XLE -0.2% -1% Real Estate XLRE -0.2% 0% Materials XLB -0.3% 2% Utilities XLU -0.6% -1%

 Unusual Options Activity

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• GSAT Jan 1.5 calls are seeing interest with the underlying stock up 6% (volume: 2540, open int: 24.2K, implied vol: ~162%, prev day implied vol: 33%) -- we noted activity in the Feb 1.5 calls yesterday (see 1/12 13:29 OPTNX). Co is expected to report earnings late February.
• CCJ Jan 20 calls are seeing interest with the underlying stock up 4% (volume: 2720, open int: 2810, implied vol: ~42%, prev day implied vol: 39%)  — co is expected to report earnings early February.
• PPG Feb 100 calls are seeing interest ahead of earnings next week, January 19 before the open (volume: 3740, open int: 1750, implied vol: ~22%, prev day implied vol: 20%) — nearly 1.6K traded in single transaction.

Bearish Put Activity:

• DAR Feb 12 puts (volume: 12.8K, open int: 10, implied vol: ~39%, prev day implied vol: 31%) — co is scheduled to present at a BNP Paribas High Yield & Leveraged Finance Conference on January 19. Co is expected to report earnings late February (likely outside of expiration).
• NWL Feb 47 puts (volume: 4750, open int: 10, implied vol: ~28%, prev day implied vol: 25%) — over 2200 contracts traded in a single transaction. Co announced it will sell its Rubbermaid consumer storage totes business to United Solutions for an undisclosed sum.  Co is confirmed to report earnings February 6 before the open.

Sentiment: The CBOE Put/Call ratio is currently: 0.86… VIX: (11.27, -0.27, -2.3%).
January 20 is options expiration — the last day to trade January equity options.
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Currency Market Summary Dollar Drifts Lower, Lira and Peso Recover The U.S. Dollar Index fell 0.10% to 101.26 today after an early rally following decent U.S. retail sales and PPI data for December was eventually given back. The index remains within striking distance of a one-month low (100.72) despite a very sharp rally on Wednesday. The greenback is little-changed against all of the majors today although the euro is edging higher on stronger inflation data in Germany and Spain. Selling pressure has abated in the Turkish lira and Mexican peso after climactic moves lower on Wednesday. $/Yen came within 16 pips of its 200-day moving average on Thursday (currently 133.81) and did not retest today so that could be a support level to watch for the pair EUR/USD: +0.18% to 1.0630 German wholesale prices rose 1.2% m/m in December (+2.8% y/y), handily beating both expectations and November's 0.1% increase Spain's CPI growth for December was revised up a tick to 1.6% y/y after the country saw just 0.7% inflation in November The harmonized index of consumer prices grew by just 1.4% y/y in December, the same pace seen in November Canadian ratings agency DBRS cut Italy's sovereign rating to BBB (stable) from A (negative outlook). GBP/USD: +0.13% to 1.2189 The newest member of the Bank of England's Monetary Policy Committee, Michael Saunders, said that unemployment in the U.K. could remain below 5% for years (currently 4.8%) although he was much less sanguine about wage growth USD/CHF: -0.12% to 1.0097 USD/JPY: -0.20% to 114.63 USD/CNY: +0.06% to 6.8998 China's trade surplus unexpectedly narrowed in December to $49.8 bln from $44.6 bln in November Exports fell by a greater-than-expected 6.1% y/y after ticking up by 0.1% in November Imports grew by a greater-than-expected 3.1% y/y after 6.7% growth in November USD/TRY: -1.19% to 3.726 USD/BRL: +1.01% to 3.220 USD/MXN: -0.79% to 21.61 USD/CAD: -0.11% to 1.3140 AUD/USD: +0.10% to 0.7490 NZD/USD: +0.01% to 0.7113 In New Zealand, Electronic card retail sales fell 0.1% m/m in December (+5.8% y/y) after falling by the same percentage in November

 

Time recent volatility attributed to report that company is starting talks with potential buyers  (19.08 +0.13) Note: Earlier this month, Bloomberg reported potential Meredith (MDP) / TIME M&A talks — see 1/5 14:59