Америка сегодня. Данные по розничным продажам и инфляции.

 

 

 Overnight Summary — World markets echo momentum seen in Tuesday's run up on Wall St

• The global equity markets are mixed again this morning, with the S&P Futures under water by a couple points after tapping the 2340 level overnight. The volume that traded above yesterday's highs was light and fairly quick, suggesting the move to the top of the range overnight was likely just stop orders. As such, US futures are currently closer to the bottom of the trading range.
• In Asia, the Nikkei was nearly able to recover Tuesday's losses with a gain of 1% in the Nikkei today. The index was supported by momentum of the rise in US markets on Tuesday (closing right near all-time highs) as well as strength in the USDJPY following the moderately hawkish tone set by Janet Yellen at her Congressional testimony. The usual suspects (ie exporters) were benefactors from the decline in the yen. Both Panasonic (+3%) and Honda Motor (+1%) were instrumental in pacing the way for the Nikkei's advance.
• In China, the Shanghai was unable to sustain early gains and closed 0.2% lower by the session's end. Traders seemed uninspired after the news of the PBOC's healthy liquidity injection wore off. Macro news was light across the Mainland on Wednesday, but the New Yuan Loan figure that came out after the Shanghai was closed the previous day, may have weighed on sentiment throughout the day. This is notable considering the lending data representing the second highest on record. When combined with Tuesday's CPI rising at the strongest pace since 2011, investors likely took that as another sign the PBOC is unlikely to make any aggressive moves any time soon.
• Across the pond, the major bourses are mostly higher this morning. The CAC is the best of the bunch so far this morning, led by strength in the banking sector, after Credit Ag (+2%) posted a solid quarterly result. Meanwhile, Heineken is also helping to support consumer names after it also released a strong earnings report.
• Crude oil is down over 0.5% this morning, reacting negatively to the release of the weekly API release, which reported a build of 9.941 mln barrels vs. last week's build of 14.23 mln barrels

Market updates

• S&P Futures vs Fair Value: -1.00 
• 10 yr Note: 2.4789% 
• USD/JPY: 114.52 +0.26  
• EUR/USD: 1.0555 -0.0018
• Europe: FTSE +0.4% DAX +02% CAC +0.6% 
• Asia: Hang Seng +1.2% Shanghai -0.2% Nikkei +1.0% 
• Commodities: Gold (1227.10 +1.70) Silver (17.87 -0.02) crude (52.83 -0.37) 

US Econ Data

• Jan CPI (8:30am)
• Jan Retail Sales (8:30am)
• Feb Empire Manuf ((8:30am)
• Jan Industrial Prod/Capacity Ut (9:15am)
• Dec Business Inventories (10am)
• Crude Inventories (10:30am)

 

 

 

 

 Asian Markets Close: Nikkei +1.0%, Hang Seng +1.2%, Shanghai -0.2%

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Overall, regional markets appeared unperturbed by yesterday's testimony on monetary policy delivered by Federal Reserve Chair Janet Yellen. Economic data out of Australia showed that businesses and consumers are anticipating a rate hike from the Reserve Bank of Australia in the near term.

• In economic data:
  • Australia's February Westpac Consumer Sentiment 2.3% (last 0.1%). January New Motor Vehicle Sales +0.6% month-over-month (expected 0.2%; last 0.1%)
  • South Korea's January Unemployment Rate 3.6% (expected 3.4%; last 3.5%)
  • Singapore's December Retail Sales -1.9% month-over-month (expected -2.2%; last 0.5%); +0.4% year-over-year (consensus 1.4%; previous 0.7%)

---Equity Markets---

• Japan's Nikkei added 1.0%. Dentsu, Dai-ichi Life Insurance, MS&AD Insurance Group, Mitsubishi, Panasonic, Sony Financial, Nippon Sheet Glass, Shizuoka Bank, and Mitsubishi Motors climbed between 2.4% and 8.4%. Toshiba fell 8.6% after officially booking a $6.3 billion writedown related to the company's US nuclear unit.
• Hong Kong's Hang Seng rallied 1.2% to levels not seen since October. Financials had a strong showing with China Construction Bank, Bank of China, ICBC, and Bank of East Asia jumping between 2.5% and 4.9%. Consumer names Belle International and China Mengniu Dairy underperformed, falling close to 1.3% apiece.
• China's Shanghai Composite shed 0.2%. Huaxin Cement, Jinjian Cereals Industry, Fujian Cement, and Jiangxi Copper posted losses between 4.5% and 5.3%.
• India's Sensex lost 0.7%. Tata Motors fell 10.3% after reporting a sharp decline in its quarterly profit. Sun Pharma also lagged, falling 4.3%, in reaction to below-consensus results. Tata Steel, Hero MotoCorp, Maruti Suzuki, and Dr Reddy's Labs lost between 0.9% and 2.6%.

---FX---

• USDJPY +0.2% to 114.53
• USDCNY +0.1% to 6.8705
• USDINR +0.1% to 66.900

 

 

 

 

 

 

 

 

 

 

 

 

 

 Overseas Research Calls

Upgrades: 

• Associated British Foods (ASBFY) upgraded to Buy from Hold at Shore Capital

Downgrades: 

• Rolls Royce PLC (RYCEY) downgraded to Sell from Hold at S&P Global
• William Hill PLC (WIMHY) downgraded to Reduce from Hold at HSBC
• Ladbrokes Coral (LDCOY) downgraded to Reduce from Hold at HSBC

Miscellaneous: 

• None of note

 

 

 

 

 

 

 Overnight Treasury Summary

Treasuries Edge Lower Ahead of Data Deluge

• U.S. Treasuries are ticking lower this morning after an overnight session light on economic data releases. The U.K.'s employment picture improved more than expected in January although wage growth was a bit sluggish. On the Continent, the eurozone's trade surplus unexpectedly widened in December. Today, Fed Chair Janet Yellen will appear again in Washington, D.C., this time before the House Financial Services Committee. Her prepared statement in front of the Senate Banking Committee on Tuesday sent Treasuries tumbling as she lowered the hurdle for future rate hikes and minimized downside risks to the U.S. economy. What will probably be even more important than Yellen's testimony today is the U.S. consumer price index and retail sales data for January. Industrial production figures will also be released. The S&P 500 is set to open unchanged at 2,337.4 and the U.S. Dollar Index is 0.15% higher at 101.40. WTI crude is off by 0.64% to $52.86/bbl. and gold is adding 0.23% to $1,228.2/troy oz.
• Yield Check:
  
  • 2-yr: -1 bp to 1.23%
  • 5-yr: unch at 1.97%
  • 10-yr: +1 bp to 2.48%
  • 30-yr: +1 bp to 3.07%

• News:
  
  • In Australia, Westpac Consumer Sentiment rose to 2.3% in February from 0.1% in January
  • Korea's unemployment rate unexpectedly increased to 3.6% in January from 3.5% in December
  • In the U.K., claimants for unemployment fell by 42.4K in January after declining 20.5K in December. Economists had expected little change
    
    • The Average Earnings index (including bonuses) rose 2.6% y/y in December, missing estimates after 2.8% growth in November
    • The unemployment rate remained at 4.8% in December, as expected
  • The eurozone's trade surplus unexpectedly widened in December to EUR28.1 bln from EUR25.1 bln in November
  • Spain's consumer price index fell 0.5% m/m in January (+3.0% y/y), as expected. The decline reversed most of December's 0.6% increase
    
    • Spain's harmonized index of consumer prices (HICP) fell 1.0% m/m in January (+2.9% y/y) after a 0.5% gain in December

• Data out Wednesday:
  
  • MBA Mortgage Index for the week ending 2/11: Actual -8.0% w/w, Prior 2.3%
  • Average contract 30-year fixed mortgage rate: Actual 4.32%, Prior 4.35%
  • January CPI and Core CPI (08:30 ET)
  • February Empire Manufacturing (08:30 ET)
  • January Retail Sales and Retail Sales ex-auto (08:30 ET)
  • January Industrial Production and Capacity Utilization (09:15 ET)
  • December Business Inventories (10:00 ET)
  • February NAHB Housing Market Index (10:00 ET)
  • Crude Inventories for the week ending 2/11 (10:30 ET)
  • December Net Long-Term TIC Flows (16:00 ET)
• Fed Speakers:
  
  • Fed Chair Yellen (FOMC voter) (10:00 ET)
  • Boston Fed President Rosengren (non-FOMC voter) (12:00 ET)
  • Philadelphia Fed President Harker (FOMC voter) (12:45 ET)
  • New York Fed President Dudley (19:15 ET)

 

 

 

 

 

 

 

 

 &P futures vs fair value: +0.80. Nasdaq futures vs fair value: +1.10.

Investors have hit the pause button on Wednesday morning after pushing the major averages to fresh record highs on Tuesday and ahead of a heap of economic data today. The S&P 500 futures trade one point above fair value.

U.S. Treasuries remain under pressure this morning and are in danger of posting their fifth consecutive loss. The benchmark 10-yr yield is one basis point higher at 2.48%.

Crude oil also trades lower this morning, down 0.6% at $52.88/bbl. The energy component's downtick follows yesterday's American Petroleum Institute report which showed a build of 9.9 million barrels. The Energy Information Administrations's official supply report will cross the wires today at 10:30 ET.

The weekly MBA Mortgage Index, which was released earlier this morning, decreased 3.7% to follow last week's 2.3% uptick.

In addition to the MBA Mortgage Index, Wednesday's economic agenda is jam-packed with January CPI (Briefing.com consensus 0.3%), January Retail Sales (Briefing.com consensus 0.1%), and February Empire Manufacturing (Briefing.com consensus 7.0) at 8:30 ET, January Industrial Production (Briefing.com consensus 0.0%) and Capacity Utilization (Briefing.com consensus 75.5%) at 9:15 ET, December Business Inventories (Briefing.com consensus 0.4%) and February NAHB Housing Market Index (Briefing.com consensus 68) at 10:00 ET, and December Net Long-Term TIC Flows at 16:00 ET.

In U.S. corporate news:

• PepsiCo (PEP 107.40, +0.48): +0.5% after raising its dividend and reporting better than expected earnings.
• AIG (AIG 63.85, -3.04): -4.5% after reporting a wider-than-expected fourth quarter loss.
• Express Scripts (ESRX 68.95, -0.68): -1.0% after missing revenue estimates and issuing downbeat earnings guidance for the first quarter.
• Fossil (FOSL 18.54, -4.33): -18.9% after reporting worse than expected revenues and issuing disappointing guidance.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei +1.0%, Hong Kong's Hang Seng +1.2%, China's Shanghai Composite -0.2%, India's Sensex -0.7%.
  • In economic data:
    • Australia's February Westpac Consumer Sentiment 2.3% (last 0.1%). January New Motor Vehicle Sales +0.6% month-over-month (expected 0.2%; last 0.1%)
    • South Korea's January Unemployment Rate 3.6% (expected 3.4%; last 3.5%)
    • Singapore's December Retail Sales -1.9% month-over-month (expected -2.2%; last 0.5%); +0.4% year-over-year (consensus 1.4%; previous 0.7%)
  • News was light on Wednesday:
    • Economic data out of Australia showed that businesses and consumers are anticipating a rate hike from the Reserve Bank of Australia in the near term.

• Major European indices trade in the green, hovering near record highs from January. Germany's DAX +0.2%, France's CAC +0.5%, UK's FTSE +0.6%.
  • In economic data:
    • Eurozone December trade surplus expanded to EUR28.10 billion from EUR25.90 billion (expected surplus of EUR22.80 billion)
    • UK's December Average Earnings Index + Bonus +2.6% (expected 2.8%; last 2.8%). December Unemployment Rate held at 4.8%, as expected. January Claimant Count Change -42,400 (expected 800; last -20,500)
    • Spain's January CPI -0.5% month-over-month, as expected (last 0.6%); +3.0% year-over-year, as expected (last 1.6%)
  • In news:
    • The Italian government is reportedly in talks with European officials about a precautionary recapitalization of Banca Popolare di Vincenza and Veneto Banca.
    • Greek Prime Minister Alexis Tsipras reiterated that discussing additional austerity measures for Greece would be destructive.

 

 

 

 

 

 

 Gapping up

Gapping up
In reaction to strong earnings/guidance:

• CIDM +15.7%, IOTS +12.7%, WIX +7.5%, SODA +7.2%, IVTY +5.8%, SEDG +5.5%, ANGI +4.6%, ELOS +4.3%, CCS +3.9%, ALKS +3.5%
• ADI +3.5%, OZM +3.3%, IOSP +3%, A +2.7%, FANG +2.4%, PBPB +2.4%, HUN +2.3%, VNOM +2.2%, BG +1.9%, SHOP +1.7%, ADHD +1.7%, DVN +1.4%
• KRNT +1.4%, WGBS +1.4%, HUM +0.7%, PAAS +0.7%, ETR +0.6%

M&A news:

• FIG +28.2% (SoftBank confirms plans to acquire Fortress Investment Group for $3.3 bln)

Select EU financial related names showing strength:

• DB +1.6%, CS +1.1%, BCS +0.9%, LYG +0.9%, HSBC +0.7%

Select Airline related names showing strength:

• LUV +2.8%, UAL +2.6%, AAL +2.5%, DAL +2%, JBLU +1.4%, SAVE +1%

Other news:

• PAH +3.2% (Elliott Management discloses new position)
• PG +2.5% (Nelson Peltz's Trian takes stake)
• SIRI +2.3% (new Berkshire Hathaway stake)
• TWTR +2.2% (CEO Jack Dorsey disclosed purchase of nearly 426K shares worth $7 mln)
• ARDX +2.2% (reports its Phase 3 trial evaluating tenapanor as a treatment for hyperphosphatemia in patients with end-stage renal disease who are on dialysis met its primary endpoint and was generally well-tolerated)
• NTCT +1.2% (ValueAct new position),
• FOLD +1.1% (reports new positive data analyses for the oral small molecule pharmacological chaperone migalastat HCl for Fabry disease)
• CRM +1% (new Corvex stake)
• MON +1% (new Berkshire Hathaway stake)
• HTZ +0.9% (Icahn increases stake)

Analyst comments:

• RH +3% (upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts)
• OLED +2.2% (initiated with a Positive at Susquehanna; tgt $100)
• BBVA +2% (upgraded to Overweight from Neutral at JP Morgan)
• PH +1.5% (upgraded to Buy from Neutral at BofA/Merrill)
• V +0.6% (initiated with Buy ratings at Loop Capital)
• NDSN +0.5% (upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts)

 European Summary

Greek Bonds Fall Again as Spanish Inflation Hits 4-Year High

• Eurozone sovereign bonds are seeing mixed results this morning after Spanish inflation was reported to have hit a four-year high in January (3.0% y/y). The European Central Bank is unlikely to be impressed with this development, however, as its policymakers are still not seeing wage growth in the single currency bloc. In the U.K., wage growth unexpectedly slowed in December and this is pushing the pound sterling lower against the dollar (GBP/USD: -0.29% to 1.2419) and lowering gilt yields. Greek debt is under pressure again today as Pierre Moscovici, the EU economics chief, meets with Greek PM Alexis Tsipras and Greek Finance Minister Euclid Tsakalotos in Athens. The Eurogroup will meet next Monday for the last big discussion about Greece before the upcoming elections in the Netherlands, France, and Germany. Greece will need a fresh cash injection by July in order to make an EUR7 bln repayment but the IMF and Greece's European creditors are in disagreement over Greece's government budget targets before more cash is dispensed. Specifically, the IMF is asking for deeper cuts to pensions and higher taxes, without which Greece's debt burden would become explosive, according to the IMF
• Central Banks:
  
  • Sweden's Riksbank's executive board kept its main policy rate at -0.50% and extended its mandate to permit «quick intervention on the foreign exchange market»
    
    • Krona appreciation threatens the revival of inflation that the Riksbank is trying to engineer with negative interest rates
• European Economic Data:
  
  • In the U.K., claimants for unemployment fell by 42.4K in January after declining 20.5K in December. Economists had expected little change
    
    • The Average Earnings index (including bonuses) rose 2.6% y/y in December, missing estimates after 2.8% growth in November
    • The unemployment rate remained at 4.8% in December, as expected
  • The eurozone's trade surplus unexpectedly widened in December to EUR28.1 bln from EUR25.1 bln in November
    
    • The widening was driven by 6% growth in exports versus just 4% growth in imports
    • The trade surplus for FY2016 was EUR274 bln, up almost 15% from FY2015
  • Spain's consumer price index fell 0.5% m/m in January (+3.0% y/y), as expected. The decline reversed most of December's 0.6% increase
    
    • Spain's harmonized index of consumer prices (HICP) fell 1.0% m/m in January (+2.9% y/y) after a 0.5% gain in December
  • Greece's HICP rose to 1.5% y/y in January from 0.3% in December
• Yield Check:
  
  • France, 10-yr OAT: -2 bps to 1.03%
  • Germany, 10-yr bund: unch at 0.37% 
  • Greece, 10-yr note: +20 bps to 7.64%
  • Italy, 10-yr BTP: -3 bps to 2.20%
  • Portugal, 10-yr PGB: unch at 4.01%
  • Spain, 10-yr ODE: -2 bps to 1.65%
  • U.K., 10-yr gilt: -2 bps to 1.28%

 On The Wires

• Novocure (NVCR) announced that the first patient has been enrolled in LUNAR, its phase 3 pivotal trial of Tumor Treating Fields at 150 kHz as a treatment for advanced non-small cell lung cancer after failing platinum-based therapy.
• Entest BioMedical Inc.'s (ENTB) wholly owned subsidiary, Zander Therapeutics Inc., announced today publication by the United States Patent and Trademark Office of a Utility Patent application entitled «Canine Autologous Immunotherapy using Dendritic Cell Induced Cancer Killing Immunocytes». This patent application, which has a priority date of July 2015 and is assigned to Zander Therapeutics, covers the generation of a new type of cell from dog blood which possesses ability to kill tumor cells.  «Currently Zander Therapeutics is pursuing a highly targeted strategy of therapeutically modifying the immune system in cats, dogs and horses using small molecule modulators of NR2F6 activity. In this particular case, the current patent publication extends the intellectual property walls that Zander is establishing by covering specific means of generating immune system cells that can be modified by the small molecules in development,» said Harry Lander, Ph.D., President and Chief Scientific Officer of Zander Therapeutics.
• CB&I (CBI) announced it has been awarded a contract by Dongguan Grand Resource Science & Technology Co. Ltd. for the license and engineering design of a grassroots propane dehydrogenation unit to be built in Dongguan City, Guangdong Province, China. The unit will use CB&I's CATOFIN catalytic dehydrogenation technology and Clariant's tailor-made CATOFIN catalyst to produce 600,000 metric tons per year of propylene. This unit has been optimized to reduce equipment piece-count and lower propane consumption, resulting in low investment and operating costs.
• ICU Medical (ICUI) announced results of a new multi-hospital study that shows dramatic improvements in potentially catastrophic dosing errors and drug library compliance when its Plum infusion pumps and Hospira MedNet safety software are integrated with hospitals' electronic medical records. The study showed a 52 percent decrease in the rate of PCDE's and an average of 156 overall average percent increase in compliance with a participating hospital's drug libraries after smart pump-EMR integration, which was consistent across hospitals and sustained after integration. One hospital saw a decrease in the PCDE rate of as much as 73 percent. There was also a large and statistically significant reduction in the variability in the severity of individual PCDEs. The study was performed at three US community hospitals ranging from 50 to 350 beds.
• Roche (RHHBY) announced that it has signed an exclusive partnership agreement with Medtronic plc (MDT). Under the terms of the agreement, Roche will develop a dedicated Bluetooth Low Energy enabled blood glucose monitoring meter that will communicate with Medtronic's future BLE enabled insulin pump systems. The new meter will be based on Roche's innovative Accu-Chek Guide platform and will be marketed under the name Accu-Chek Guide Link. The exclusive agreement covers all markets where future BLE enabled pumps will be commercialized.
• X-Chem, Inc. announced that it has expanded its collaboration with Janssen Biotech (JNJ), to discover new drug leads for the treatment of inflammatory disease. The multi-target expansion builds on the parties' existing discovery and license partnership, entered into in December 2014, and was facilitated by Johnson & Johnson Innovation. This latest agreement will apply X-Chem's DEX platform to the identification of novel modulators for challenging disease targets, following the licensing of multiple series of X-Chem-discovered small molecules by Janssen in 2016. Under the terms of the agreement, X-Chem receives an upfront payment and research funding, and is eligible to receive additional payments and royalties based on the achievement of clinical, regulatory and commercial milestones.

 Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

• FOSL -18.9%, ESNC -16.9%, TRUP -11.7%, PLAB -11%, LC -9.5%, CALX -8.5%, NAII -7.8%, HOLI -5.6%, AIG -5%, CRNT -3.9%, MASI -3.2%, OMI -3.1%
• CZR -2.3%, ASGN -2.1%, CBB -1.6%, SEV -1.4%, BYD -1.3%, VDSI -1.3%, RPXC -1.2%, NBIX -0.9%, MFS -0.9%, LXFT -0.7%, DNOW -0.7%, TECK -0.6%

Select oil/gas related names showing early weakness:

• SDRL -3.2%, BP -2.3%, RDS.A -2.3%, SLB -0.5%

Other news:

• EARS -18.3% ( to sell common shares and warrants to purchase its common shares in an underwritten public offering; updates on patent case again Otonomy)
• UNXL -10.7% (may be related to yesterday's announcement of public offering)
• SBCF -4.7% (commences common stock offering)
• CSX -2.1% (calls special meeting in light of Mantle Ridge and Hunter Harrison requests; CSX has concerns with proposals)
• STNG -1.8% (announced that Scorpio Services Holding Limited, a related party affiliate, purchased an aggregate of 650,000 common shares of the Company in the open market at an average price of $4.40 per share)
• MRK -1.4% (announces EPOCH study of Verubecestat for the treatment of people with mild to moderate Alzheimer's disease to stop for lack of efficacy )
• DE -1.4% (Berkshire Hathaway decreased stake)

Analyst comments:

• UAA -1.5% (downgraded to Negative from Neutral at Susquehanna)
• OHI -0.9% (downgraded to Hold from Buy at SunTrust )
• HOLX -0.5% (downgraded to Neutral from Buy at BofA/Merrill)

 Futures Digesting Data; Retail Sales, CPI and Empire Manufacturing All Above Expectations… S&P futures vs fair value: -1.30. Nasdaq futures vs fair value: -0.60.

The S&P 500 futures trade one point below fair value.

Just in, total CPI rose 0.6% (Briefing.com consensus +0.3%) in January while core CPI, which excludes food and energy, increased 0.3% (Briefing.com consensus +0.2%). On a year-over-year basis, total CPI is up 2.5% and core CPI has increased 2.3%.

Separately, January retail sales increased 0.4%, which compares to the Briefing.com consensus of 0.1%. The prior month's reading was revised higher to 1.0% from 0.6%. Excluding autos, retail sales rose 0.8% while the consensus expected an uptick of 0.4%. The prior month's reading was revised higher to 0.4% from 0.2%.

The Empire Manufacturing Survey for February rose to 18.7 from the prior month's reading of 6.5. The Briefing.com consensus estimate was pegged at 7.0.

 Gapping up/down: SODA +7%, ANGI +5%, A +3%, and BG +2% after earnings, FIG +28% after M&A news; FOSL -19%, PLAB -11%, LC -10%, AIG -5% and OMI -3% after earnings, UAA -1.5% after dg

Gapping up
In reaction to strong earnings/guidance:

• CIDM +15.7%, IOTS +12.7%, WIX +7.5%, SODA +7.2%, IVTY +5.8%, SEDG +5.5%, ANGI +4.6%, ELOS +4.3%, CCS +3.9%, ALKS +3.5%
• ADI +3.5%, OZM +3.3%, IOSP +3%, A +2.7%, FANG +2.4%, PBPB +2.4%, HUN +2.3%, VNOM +2.2%, BG +1.9%, SHOP +1.7%, ADHD +1.7%, DVN +1.4%
• KRNT +1.4%, WGBS +1.4%, HUM +0.7%, PAAS +0.7%, ETR +0.6%

M&A news:

• FIG +28.2% (SoftBank confirms plans to acquire Fortress Investment Group for $3.3 bln)

Select EU financial related names showing strength:

• DB +1.6%, CS +1.1%, BCS +0.9%, LYG +0.9%, HSBC +0.7%

Select Airline related names showing strength:

• LUV +2.8%, UAL +2.6%, AAL +2.5%, DAL +2%, JBLU +1.4%, SAVE +1%

Other news:

• PAH +3.2% (Elliott Management discloses new position)
• PG +2.5% (Nelson Peltz's Trian takes stake)
• SIRI +2.3% (new Berkshire Hathaway stake)
• TWTR +2.2% (CEO Jack Dorsey disclosed purchase of nearly 426K shares worth $7 mln)
• ARDX +2.2% (reports its Phase 3 trial evaluating tenapanor as a treatment for hyperphosphatemia in patients with end-stage renal disease who are on dialysis met its primary endpoint and was generally well-tolerated)
• NTCT +1.2% (ValueAct new position),
• FOLD +1.1% (reports new positive data analyses for the oral small molecule pharmacological chaperone migalastat HCl for Fabry disease)
• CRM +1% (new Corvex stake)
• MON +1% (new Berkshire Hathaway stake)
• HTZ +0.9% (Icahn increases stake)

Analyst comments:

• RH +3% (upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts)
• OLED +2.2% (initiated with a Positive at Susquehanna; tgt $100)
• BBVA +2% (upgraded to Overweight from Neutral at JP Morgan)
• PH +1.5% (upgraded to Buy from Neutral at BofA/Merrill)
• V +0.6% (initiated with Buy ratings at Loop Capital)
• NDSN +0.5% (upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts)

Gapping down
In reaction to disappointing earnings/guidance:

• FOSL -18.9%, ESNC -16.9%, TRUP -11.7%, PLAB -11%, LC -9.5%, CALX -8.5%, NAII -7.8%, HOLI -5.6%, AIG -5%, CRNT -3.9%, MASI -3.2%, OMI -3.1%
• CZR -2.3%, ASGN -2.1%, CBB -1.6%, SEV -1.4%, BYD -1.3%, VDSI -1.3%, RPXC -1.2%, NBIX -0.9%, MFS -0.9%, LXFT -0.7%, DNOW -0.7%, TECK -0.6%

Select oil/gas related names showing early weakness:

• SDRL -3.2%, BP -2.3%, RDS.A -2.3%, SLB -0.5%

Other news:

• EARS -18.3% ( to sell common shares and warrants to purchase its common shares in an underwritten public offering; updates on patent case again Otonomy)
• UNXL -10.7% (may be related to yesterday's announcement of public offering)
• SBCF -4.7% (commences common stock offering)
• CSX -2.1% (calls special meeting in light of Mantle Ridge and Hunter Harrison requests; CSX has concerns with proposals)
• STNG -1.8% (announced that Scorpio Services Holding Limited, a related party affiliate, purchased an aggregate of 650,000 common shares of the Company in the open market at an average price of $4.40 per share)
• MRK -1.4% (announces EPOCH study of Verubecestat for the treatment of people with mild to moderate Alzheimer's disease to stop for lack of efficacy )
• DE -1.4% (Berkshire Hathaway decreased stake)

Analyst comments:

• UAA -1.5% (downgraded to Negative from Neutral at Susquehanna)
• OHI -0.9% (downgraded to Hold from Buy at SunTrust )
• HOLX -0.5% (downgraded to Neutral from Buy at BofA/Merrill)

 

 

 

 

 Filings, Offerings and Pricings

Filings:

• Amgen (AMGN) files mixed securities shelf offering
• Atwood Oceanics (ATW) files mixed securities shelf offering
• Walt Disney (DIS) files for 1,357,657 common stock offering by a selling security holder; proposed max offering price of $109.40/share
• Neurocrine Biosci (NBIX) files for mixed securities shelf offering; size not disclosed
• Viking Therapeutics (VKTX) files for 9,965,956 common stock offering by holders

Offerings:

• OSI Systems (OSIS) intends to offer $225 million principal amount of Convertible Senior Notes due 2022 in a private offering
• Seacoast Banking (SBCF) commences common stock offering for undisclosed size; will consist of shares to be sold by the co and shares to be sold by one of its stockholders, CapGen Capital Group III LP

Pricings:

• Celsion (CLSN 0.33) prices common stock offering at $0.23 per/share with expected total gross proceeds of approximately $5.0 million
• Auris Medical (EARS 1.15) prices 10 mln common stock offering at $1.00/unit
• Sigma Labs (SGLB ) announces the pricing of a firm commitment underwritten public offering of 1,410,000 units at $4.13/unit
• Trinity Place (TPHS 7.44) enters into an agreement for a non-brokered private placement of its common stock for the sale of an aggregate of 3,585,000 shares of common stock at a purchase price of $7.50 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 On The Wires

• SkinnyPop Popcorn, anchor brand to Amplify Snack Brands, Inc. (BETR) and a pioneer in the better-for-you, ready-to-eat popcorn category, is extending its brand beliefs of simple, transparent ingredients and great taste to new categories. New SkinnyPop Popcorn Cakes, Popcorn Mini Cakes and Microwave Popcorn are rolling out nationwide this month, giving consumers new ways to enjoy their snack-time favorites.
• Pitney Bowes (PBI) announced that global payments solutions provider TSYS has selected the Pitney Bowes IntelliJet 20 Printing System to expand its high-quality color transactional printing capabilities. The new agreement expands a 30-year partnership between the two companies. Financial details not disclosed. 
• Hill International (HIL) announced that it has received four contracts to provide construction engineering and inspection services on various projects for the Florida Department of Transportation. The four contracts have a combined estimated value to Hill of approximately $3.3 million.
• Xplore Technologies (XPLR) announced that one of the nation's largest telecommunications service providers has placed an order for XSLATE B10 Fully Rugged Tablet PCs and accessories to support its growing field-based workforce in various regions across the United States. This brings the total value of this multi-year, multi-million dollar project to more than $20 million.
• PREIT (PEI) signs Burlington (BURL) as lead tenant to replace Sears (SHLD) at Magnolia Mall At Magnolia Mall. In addition to Burlington, the Company is in advanced discussions with two additional retailers for spaces that will be created adjacent to Burlington, diversifying the tenant roster and strengthening the asset's market dominance. PREIT anticipates sales and traffic generated from these additions will substantially outpace what is currently being delivered. For the three stores PREIT previously announced recapturing from Sears, the Company expects to generate returns of 7 — 9 % and will share details of projected capital spending in conjunction with its upcoming earnings release.
• Rite Aid (RAD) announced today that naloxone, a medication that can be used to reverse the effects of an opioid overdose, is now available at more than 630 pharmacies in Georgia, Louisiana, Tennessee, Utah, Virginia and West Virginia without a prescription, subject to state regulations. Previously, naloxone, which can be administered by injection or nasal spray, was only available with a physician's prescription.

 

 

 Opening Market Summary: Averages Open Wednesday Mixed

The major averages opened Wednesday's session mixed with the Dow (+0.1%) holding a modest gain while the S&P 500 (-0.1%) hovers below its flat line.

Nine of eleven sectors trade in the red with real estate (-1.0%) and utilities (-0.9%) leading the retreat. On the bright side, the two spaces to buck the bearish trend are the top-weighted financial (+0.2%) and technology (+0.1%) sectors.

Treasuries show losses following this morning's heavy dose of economic data. The 5-yr yield has spiked nine basis points to 2.00% while the benchmark 10-yr yield is up four basis points at 2.51%.

 

 Hearing Rosenbaltt out cautious on fiber optics space  (10.61 -0.26)FNSR -2.69% FN -2.23% LITE -2.08% OCLR -2.30% ACIA -2.07% AAOI -1.15% INFN -0.65%

 

 

 

 

 

 Economic Summary: CPI above expectations; Retail Sales above estimates; Housing Starts out tomorrow at 8:30 ET

Economic Data Summary:

• Weekly MBA Mortgage Applications -3.7% vs Briefing.com consensus of; Last Week was 2.3%
• January CPI 0.6% vs Briefing.com consensus of 0.3%; December was 0.3%
• January Core CPI 0.3% vs Briefing.com consensus of 0.2%; December was 0.2%
  • The January increase was the largest seasonally adjusted all items increase since February 2013. A sharp rise in the gasoline index accounted for nearly half the increase, and advances in the indexes for shelter, apparel, and new vehicles also were major contributors.
• January Retail Sales 0.4% vs Briefing.com consensus of 0.1%; December was revised to 1.0% from 0.6%
• January Retail Sales Ex-Auto 0.8% vs Briefing.com consensus of 0.4%; December was revised to 0.4% from 0.2%
• February Empire Manufacturing 18.7 vs Briefing.com consensus of 7.0; January was 6.5
• January Industrial Production -0.3% vs Briefing.com consensus of 0.0%; December was revised to 0.6% from 0.8%
• January Capacity Utilization 75.3% vs Briefing.com consensus of 75.5%; December was revised to 75.6% from 75.5%
  • Industrial production decreased 0.3 percent in January following a 0.6 percent increase in December. In January, manufacturing output moved up 0.2 percent, and mining output jumped 2.8 percent. The index for utilities fell 5.7 percent, largely because unseasonably warm weather reduced the demand for heating.
• December Business Inventories +0.4% vs Briefing.com consensus of 0.4%; November was 0.7%
• February NAHB Housing Market Index 65 vs Briefing.com consensus of 68; January was 67

Upcoming Economic Data:

• December Net Long Term TIC Flows due out Wednesday at 16:00 (Briefing.com consensus of; November was $30.8 bln)
• January Housing Starts due out Thursday at 8:30 (Briefing.com consensus of 1.22 M; December was 1.226 M )
• January Building Permits due out Thursday at 8:30 (Briefing.com consensus of 1.23 M; December was 1.210 M )
• Weekly Initial Claims due out Thursday at 8:30 (Briefing.com consensus of 245K; Last Week was 234K)
• Weekly Continuing Claims due out Thursday at 8:30 (Briefing.com consensus of; Last Week was 2.078 M )
• February Philadelphia Fed due out Thursday at 8:30 (Briefing.com consensus of 17.5; January was 23.6)

Upcoming Fed/Treasury Events:

• Janet Yellen will testify to the Senate today at 10:00 ET

Other International Events of Interest

• Eurozone December trade surplus expanded to EUR28.10 billion from EUR25.90 billion (expected surplus of EUR22.80 billion)

 

 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:

• DXCM Feb 85 calls are seeing interest with 1690 contracts trading vs. open int of 470, pushing implied vol up around 11 points to ~88% — Paulson and Company increased position in DXCM. Co is confirmed to report earnings February 28 after the close (co provided Q4 guidance last month).

Puts:

• Utilities SPDR (XLU) Weekly Mar24 48.5 puts are seeing interest with 24.0K contracts trading vs. open int of 24.0K, pushing implied vol up around 1 points to ~15% — nearly all the volume occurred in one 24K transaction.

Stocks seeing volatility selling:

• GRPN, HUN, PEP, DNOW implied vol is lower following earnings/guidance

Sentiment: The CBOE Put/Call ratio is currently: 1.03… VIX: (11.63, +0.89, +8.3%).
This Week is options expiration — Friday, February 17th is the last day to trade February 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.

 

 Summary of Weekly Petroleum Data for the Week Ending Feb 10, 2017

Production: U.S. crude oil refinery inputs avgd about 15.5 mln barrels per day during the week ending February 10, 2017, 435,000 barrels per day less than the previous week's avg. Refineries operated at 85.4% of their operable capacity last week. Gasoline production decreased last week, averaging about 9.0 mln barrels per day. Distillate fuel production decreased last week, averaging over 4.5 mln barrels per day.

Imports: U.S. crude oil imports avgd 8.5 mln barrels per day last week, down by 881,000 barrels per day from the previous week. Over the last four weeks, crude oil imports avgd 8.5 mln barrels per day, 9.9% above the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week avgd 604,000 barrels per day. Distillate fuel imports avgd 216,000 barrels per day last week.

Inventory: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 9.5 mln barrels from the previous week. At 518.1 mln barrels, U.S. crude oil inventories are above the upper limit of the avg range for this time of year. Total motor gasoline inventories increased by 2.8 mln barrels last week, and are above the upper limit of the avg range. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 0.7 mln barrels last week but are above the upper limit of the avg range for this time of year. Propane/propylene inventories fell 2.6 mln barrels last week but are in the middle of the avg range. Total commercial petroleum inventories increased by 11.1 mln barrels last week.

Demand: Total products supplied over the last four-week period avgd about 19.4 mln barrels per day, down by 2.0% from the same period last year. Over the last four weeks, motor gasoline product supplied avgd over 8.4 mln barrels per day, down by 5.3% from the same period last year. Distillate fuel product supplied avgd 3.8 mln barrels per day over the last four weeks, up by 7.4% from the same period last year. Jet fuel product supplied is down 3.3% compared to the same four-week period last year.

 

 

 

 

 Notable movers of interest: AIG -9.1% on bigger than expected reserve build, Q4 operating results below expectations

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

• BBVA (6.83 +2.94%): Upgraded to Overweight from Neutral at JP Morgan.
• SIRI (4.88 +2.85%): Shares rise on news that Berkshire Hathaway has taken a stake.
• UAL (75.44 +2.31%): Airlines rise after Berkshire Hathaway increases stakes in United Continental (UAL), Delta (DAL), and American Airlines (AAL); initiates new position in Southwest (LUV).

Large Cap Losers

• AIG (60.82 -9.07%): Shares drop after bigger than expected reserve build; Q4 operating results below expecations.
• TECK (23.94 -4.58%): Shares fall despite Q4 EPS and revenue beats.
• VRSK (83.58 -1.77%): downgraded to Neutral from Positive at Susquehanna.

Mid Cap Gainers

• FIG (7.98 +28.42%): SoftBank confirms plans to acquire Fortress Investment Group for $3.3 bln.
• GRPN (4.47 +18.28%): Shares rise after Q4 EPS and revenue beats; sees higher gross profit, EBITDA in 2017.
• WIX (60.85 +14.92%): Reports Q4 EPS and revenue beats; guides Q1 and FY17 revenues above consensus.

Mid Cap Losers

• INT (38.86 -14.34%): Shares fall on Q4 EPS miss.
• LC (6.06 -8.18%): Reports Q1 revenue guidance below consensus.
• PAAS (19.5 -6.47%): Shares fall after Q4 revenue miss.

 

 

 Sector Summary: S&P Consumer Discretionary Index +0.2%, in-line with the broader marketThe consumer discretionary group is in-line with the broader market. The retail group is in the green with the Retail HOLDRS Trust (RTH) +0.5% and the SPDR S&P Retail ETF (XRT) +0.2%.

Notable earnings/guidance: 

• Trading higher following earnings/guidance: GRPN +20.4%, PBPB +7%, RH +4%, WYN +2.6%, HEINY +2.4%, HLT +1%
• Trading lower following earnings/guidance: FOSL -17.4%, HNNMY -2.1%
• Near unchanged mark following earnings/guidance: ANGI

In the news:

• On the economic front: Retail sales for January increased 0.4% (Briefing.com consensus +0.1%) on top of an upwardly revised 1.0% increase (from +0.6%) for December. Excluding autos, retail sales increased 0.8% (Briefing.com consensus +0.4%) on top of an upwardly revised 0.4% increase (from +0.2%) for December.
• President Trump at meeting with retail execs - repeated need to cut regulations in the retail industry; said tax plan will be ready 'in the not to distant future' (attending meeting: TGT, BBY, GPS, AZO, WBA, JCP, TSCO)
• Leaders: HLF 2.9% (closes a new $1.45 bln senior secured credit facility, which consists of a $150 mln revolving credit facility maturing 2022 and a $1.3 bln term loan maturing 2023), LOW 1.5% (new Glenview position), COTY +1.3% (Chief Legal Officer bought 40,500 shares at $18.48-18.51 worth ~ $800K), PH 2.5% (upgraded to Buy from Neutral at BofA/Merrill), UAA 0.3% (positive Ron Baron mention; separately downgraded to Negative from Neutral at Susquehanna; tgt lowered to $14 from $24)
• Laggards: MOV -6.1%, COH -0.1%, KORS -0.1% (lower following FOSL results)

Looking ahead:

• On the earnings front: CBS, CHH, DENN, KHC, MAR, TRIP report after the close; AVP, BBW, DF, GNC, H, STRA, TIME, WEN report tomorrow before the open.