Америка сегодня. Персональные доходы/расходы. Расходы на строительство, индекс деловой активности и продажи автомобилей.

• The global stock markets are generally higher this morning, with S&P Futures trading a robust 0.5% stronger, venturing into record territory overnight. On the surface, the strength would be attributed to President Trump's speech last night, as Futures did catch a bid. However, by the end of his address, the S&P was up around 4 points. The next 8 points did not occur until after Asian markets had closed and continued with European markets shooting up ~1% so far.
• Perhaps a better explanation for the strength across equities this morning would be the a firmer outlook on the global economy as whole. This would be represented by the quick turn in probability surrounding the likelihood of a US rate hike in March as well as better than expected PMI results, particularly out of China. Both would suggest that the global economies are heading in the right direction, potentially calming anxiety over the impact of any shockwaves on the Fed's tightening cycle
• Japan's outperformance can be traced clearly to yen weakness, falling nearly 1% against the dollar (Dollar Index +0.6%). The usual suspects rose in response, with automakers such at Honda (+1.1%) and Toyota (+1.6%) taking back yesterday's losses and then some. 
• European bourses are all trading in the neighborhood of 1% higher or better. Slight misses in regional PMI's did nothing to deter investors from accumulating shares today. The enthusiasm likely comes from confidence in China as opposed to the EU following the better than expected PMI results from the Mainland (Europe's largest trading partner).

Market updates: 

• S&P Futures vs Fair Value: +11.00
• 10 yr Note: 2.4275%
• USD/JPY: 113.72 +0.96  
• EUR/USD: 1.0535 -0.0042
• Europe: FTSE +1.0% DAX +1.4% CAC +1.5% 
• Asia: Hang Seng +0.2% Shanghai +0.2% Nikkei +1.4% 
• Commodities: Gold (1244.40 -9.50) Silver (18.39 -0.08) crude (504.12 +0.11) 

US Econ Data

• January Personal Income & Spending, PCE Prices (8:30am)
• March Markit Manufacturing PMI- Final (9:45am)
• January Construction Spending, February ISM Index (10am)
• Crude Inventories (10:30am); March Fed Beige Book (2pm)
• Vehicle Sales (All Day)
• Fed's Brainard speaks (6pm)

• Co expects to continue outperforming the fashion retail market again in 2017 and grow revenues in a range of 20-25%, following a strong 2016 performance when Europe's leading online fashion platform gained market share in every single quarter. Driven by a systematic focus on consumers and suppliers, as well as further investments into the company's infrastructure, 2016 revenues grew by 23.0% to EUR 3,639 million (2015: EUR 2,958 million).
• The adjusted EBIT margin increased to 5.9%, which corresponds to an adjusted EBIT of EUR 216.3 million (2015: EUR 107.5 million, 3.6%). For 2017, Zalando expects an adjusted EBIT margin in the range of 5.0-6.0%.
• Zalando will also acquire multi-channel basketball retailer KICKZ

• Fomento Económico Mexicano, S.A.B. de C.V. (FMX) announced that according to its 2017 projections, it estimates that capital expenditures («CAPEX») of the Company will amount to approximately USD$1.3 billion.
• HealthStream (HSTM) announced plans to move its Patient Experience (PX) phone research operations from its Maryland Patient Interview Center to its state-of-the-art facilities in Tennessee. The Patient Interview Center in Baltimore will close in a tiered process over the next several months as services to HealthStream's PX clients are seamlessly transitioned to the Company's facilities in Tennessee. Approximately 40 employees in the Maryland office who comprise the Company's Patient Experience (PX) Professional Services Group will relocate to a new office in Columbia, Maryland—a neighboring suburb of Baltimore.
• BrainStorm Cell Therapeutics Inc. (BCLI) announced that is has signed a Memorandum of Understanding (MOU) with The Medical Research, Infrastructure, and Health Services Fund of the Tel Aviv Sourasky Medical Center (Ichilov Hospital) to explore the possibility of making NurOwn available to Amyotrophic Lateral Sclerosis (ALS) patients under the provisions of Hospital Exemption regulation. The MOU also covers the participation of Tel Aviv Sourasky Medical Center in the planned Phase 3 trial that will investigate NurOwn in ALS.
• Stratasys (SSYS) announced that its multi-material, multi-color PolyJet 3D printing technology has enabled Ben Ryan, founder of Ambionics, to create a fully-functioning 3D printed hydraulic prosthetic for his two year old son, Sol.
• On February 28, 2017, Portland General Electric Company (POR) filed with the Public Utility Commission of Oregon a general rate case based on a 2018 test year (2018 GRC). The Company's filing requests a $100 million increase in the annual revenue requirement related primarily to an increase in base business costs for upgrades to PGE's transmission and distribution system, investments in strengthening and safeguarding the grid, and support for key initiatives such as participation in the western Energy Imbalance Market. Such change would result in an approximate 5.6% overall increase relative to currently approved prices. Regulatory review of the 2018 GRC will continue throughout 2017, with a final order targeted to be issued by the OPUC by December 2017. New customer prices are expected to become effective January 1, 2018.

Equity indices in the Asia-Pacific region ended Wednesday on a higher note with participants bidding up stocks after President Donald Trump's first address to Congress went off without any big surprises. As expected, the president reiterated plans for infrastructure spending of $1 trillion and repeated his desire to reform the tax code. On a separate note, economic data from China and Australia was better than expected.

• In economic data:
  • China's February Manufacturing PMI 51.6 (expected 51.1; last 51.3), February Caixin Manufacturing PMI 51.7 (expected 50.8; last 51.0), and February Non-Manufacturing PMI 54.2 (last 54.6)
  • Japan's February Manufacturing PMI 53.3 (expected 53.6; last 53.5). Q4 Capital Spending +3.8% year-over-year (expected 0.6%; last -1.3%)
  • Australia's Q4 GDP +1.1% quarter-over-quarter (expected 0.7%; last -0.5%); +2.4% year-over-year (consensus 1.9%; last 1.8%). February AIG Manufacturing Index 59.3 (last 51.2)
  • New Zealand's Q4 Terms of Trade Index +5.7% quarter-over-quarter (expected 4.1%; last -1.8%)
  • India's February Nikkei Markit Manufacturing PMI 50.7 (expected 50.3; last 50.4)

---Equity Markets---

• Japan's Nikkei climbed 1.4% as the yen continued yesterday's retreat against the dollar, slipping into the 113.75 area. Mazda Motor, SUMCO, Okuma, Fuji Heavy Industries, Komatsu, Panasonic, Kubota, and Hitachi Construction gained between 2.1% and 4.6%.
• Hong Kong's Hang Seng added 0.2%. Gaming names led the way with Galaxy Entertainment and Sands China climbing 5.6% and 3.9%, respectively, after Galaxy Entertainment reported solid results. Most financials also had a good showing with Bank of East Asia, Hang Seng Bank, HSBC, and China Life Insurance rising between 0.2% and 1.9%. On the downside, PetroChina lost 1.2%.
• China's Shanghai Composite added 0.2%. Kunwu Jiuding Investment Holdings, Cangzhou Dahua, Hualing Xingma Automobile, and Hubei Kaile Science & Technology climbed between 4.8% and 7.8%.
• India's Sensex rose 0.8%, returning to this year's high. Tata Steel jumped 3.7% while Mahindra&Mahindra, Dr Reddy's Labs, Sun Pharma, and Hero MotoCorp gained between 1.6% and 3.1%. Financials also posted gains. HDFC Bank settled just above its flat line while ICICI Bank, SBI, and AXIS Bank rose between 0.9% and 1.4%.

---FX---

• USDJPY +0.9% to 113.76
• USDCNY +0.2% to 6.8808
• USDINR +0.1% to 66.827

Major European indices trade higher across the board with Italy's MIB (+2.3%) setting the pace. In France, presidential candidate Francois Fillon vowed to continue his campaign even though he is expected to face charges for alleged misuse of public funds. The euro has spent the night in a slow retreat, trading lower by 0.5% against the dollar at 1.0525.

• In economic data:
  • Eurozone February Manufacturing PMI 55.4 (expected 55.5; last 55.5)
  • Germany's February Unemployment Change -14,000 (expected -10,000; last -26,000), February Unemployment Rate held at 5.9%, as expected, and February Manufacturing PMI 56.8 (consensus 57.0; last 57.0)
  • UK's February Nationwide HPI +0.6% month-over-month (expected 0.2%; last 0.2%); +4.5% year-over-year (consensus 4.0%; last 4.3%). February Manufacturing PMI 54.6 (expected 55.6; last 55.9) and January Mortgage Lending GBP3.40 billion (expected GBP3.70 billion; last GBP3.70 billion).
  • France's February Manufacturing PMI 52.2 (consensus 52.3; last 52.3)
  • Italy's February Manufacturing PMI 55.0 (expected 53.5; last 53.0)
  • Spain's February Manufacturing PMI 54.8 (consensus 56.0; previous 55.6)
  • Swiss January Consumption Indicator 1.43 (last 1.38)

---Equity Markets---

• UK's FTSE is higher by 1.1%, extending to a fresh record. Select miners and financials are among the leaders. Glencore, BHP Billiton, Antofagasta, Anglo American, and Rio Tinto are up between 1.8% and 3.0%. Financials like Standard Chartered, RBS, HSBC, and Prudential show gains between 1.7% and 2.7%.
• Germany's DAX has added 1.4%, trading just below its record high. Commerzbank and Deutsche Bank lead with gains of 3.6% apiece. Exporters Volkswagen, BMW, and Daimler are up between 1.0% and 2.2%. Deutsche Telekom is the lone decliner, slipping 0.2%.
• France's CAC has climbed 1.6%. Financials also lead with Societe Generale, AXA, BNP Paribas, and Credit Agricole rising between 2.9% and 3.9%. Automaker Renault has jumped 2.6% while Peugeot is higher by 0.7%. On the downside, Vivendi and Veolia Environnement are both down near 0.3%.
• Italy's MIB outperforms with a gain of 2.3%. Financials have fueled the advance with Intesa Sanpaolo, UBI Banca, Mediobanca, UniCredit, Banca Pop Emilia Romagna, and Banco Bpm advancing between 1.9% and 5.6%.

The NDA was granted Priority Review and has been given a Prescription Drug User Fee Act (PDUFA) action date of Aug. 30, 2017. Celgene completed the NDA submission in late December 2016. Enasidenib is part of Celgene's global strategic collaboration with Agios focused on cancer metabolism.

• Celgene additionally disclosed that Abbott (ABT) has submitted a Premarket Approval (PMA) application for the FDA approval of an IDH2 assay on the Abbott m2000 RealTime System, a polymerase chain reaction (PCR) molecular diagnostics instrument. IDH2 mutations occur in about 8 to 19 percent of AML patients.
• Celgene is also evaluating enasidenib compared with conventional therapy in older patients with an IDH2 mutation and relapsed or refractory AML in the ongoing phase III IDHENTIFY trial (NCT02577406).

The Personal Income and Spending Report for January will be released at 8:30 a.m. ET.  It is an important report that will factor directly into the first quarter GDP outlook; moreover, it will also factor directly into the Fed's monetary policy discussion since it includes the PCE Price Index, which is the Fed's preferred inflation gauge.

The Briefing.com consensus estimates for the key components of the report are as follows:

• Personal income (+0.4%)
• Personal spending (+0.3%)
• Core PCE Price Index (+0.2%)

Income growth is expected to be suppressed somewhat by the weak wage growth seen in the January employment report.  Personal spending, meanwhile, is expected to be somewhat modest due to the decline in unit motor vehicle sales and lower spending on utilities as unseasonably warm weather reduced demand for heating in January.

The ISM Manufacturing Index has been above 50.0% (the dividing line between expansion and contraction) for five straight months. With the release of the February ISM Manufacturing Index on Wednesday, that streak should be extended to six straight months.

According to the Briefing.com consensus estimate, the ISM Manufacturing Index is expected to check in at 56.1% for February. That would be little changed from the 56.0% reading registered in January, yet it would stand as the highest reading since November 2014.

The expected strength is tied in part to the strong readings seen in regional manufacturing surveys, including the Chicago Business Barometer released on Tuesday, as well as the Empire Manufacturing Survey and the Philadelphia Fed Index, the latter of which registered its highest reading in February (43.3) since November 1983.

The ISM Manufacturing Index report is watched closely given the sentiment it conveys about manufacturing activity on national level.

The report will be released at 10:00 a.m. ET.

Stocks with favorable mention: ATVI, CCL, CRM, DPZ, GOLD, HD, NFLX, NTAP, NVDA, PENN, SLB, TJX

Stocks with unfavorable mention: CDE, FGP, NCLH, OLN, OXY, RIG, SWN, TGT, TOO

• Ixia (XXIA) announced that the company's network visibility solutions — Vision ONE and Net Tool Optimizer 7303 — have achieved certification for inclusion in the Department of Defense Unified Capabilities Approved Product List (UC APL).
• Jacobs Engineering Group (JEC) has been awarded a task order by the General Services Administration to provide the U.S. Marine Corps Special Operations Command Raiders with logistics services for its facilities located at Camp Lejeune, NC, and Camp Pendleton, CA. The Marine Raider Regiment provides tailored military combat-skills training and advisor support for identified foreign forces in order to enhance their tactical capabilities. The contract has a potential value in excess of $39 million if all options are exercised.

Equity futures point to a solidly higher open on Wall Street this morning following President Trump's first address to Congress. The S&P 500 futures trade 13 points (0.6%) above fair value.

In his speech, the president reiterated his plans to boost infrastructure spending, cut taxes, repeal and replace the Affordable Care Act, bring down drug prices, and build up the military. And while the information didn't really provide investors with anything new, the pro-growth reminders have been enough to fuel a bullish sentiment this morning.

U.S. Treasuries are under pressure this morning after New York Fed President Dudley (FOMC voter) said that the case for raising interest rates has become «a lot more compelling» on Tuesday. The benchmark 10-yr yield currently trades four basis points higher at 2.44%.

Meanwhile, the U.S. Dollar Index (101.87, +0.54) trades at its seven-week high, up 0.5%, in the wake of Mr. Dudley's comments. The greenback has added 0.5% and 1.0%, respectively, against the euro and the Japanese yen.

Despite a strengthening U.S. dollar, crude oil holds a modest gain of 0.3% after the American Petroleum Institute (API) reported a build of 2.5 million barrels on Tuesday evening. WTI crude trades at $54.16/bbl ahead of today's Energy Information Administration (EIA) crude oil inventory report, which will be released at 10:30 am ET.

The weekly MBA Mortgage Applications Index, which was released earlier this morning, increased 5.8% to follow last week's 2.0% downtick.

Today's economic data will also include January Personal Income (Briefing.com consensus 0.4%) at 8:30 ET, January Construction Spending (Briefing.com consensus 0.6%) and February ISM Index (Briefing.com consensus 56.1%) at 10:00 ET, and the Fed's Beige Book for March at 14:00 ET.

Also of note, February Auto and Truck sales will be released throughout the day on Wednesday.

In U.S. corporate news:

• Lowe's (LOW 80.00, +5.63): +7.8% after reporting better than expected earnings and revenues and issuing upbeat guidance. 
• Intel (INTC 35.80, -0.40): -1.1% after the company's stock was downgraded to 'Underperform' from 'Market Perform' at Bernstein.
• Best Buy (BBY 41.25, -2.90): -6.7% after missing on both the top and bottom lines and issuing disappointing guidance.
• Dollar Tree (DLTR 80.07, +3.39): +4.4% after beating earnings per share expectations and issuing above-consensus revenue guidance.
• Weight Watchers (WTW 16.30, +1.91): +13.3% after better than expected earnings and upbeat guidance overshadowed a miss on revenues.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Wednesday on a higher note with participants bidding up stocks after President Donald Trump's first address to Congress went off without any big surprises. Japan's Nikkei +1.4%, Hong Kong's Hang Seng +0.2%, China's Shanghai Composite +0.2%, India's Sensex +0.8%.
  • In economic data:
    • China's February Manufacturing PMI 51.6 (expected 51.1; last 51.3), February Caixin Manufacturing PMI 51.7 (expected 50.8; last 51.0), and February Non-Manufacturing PMI 54.2 (last 54.6)
    • Japan's February Manufacturing PMI 53.3 (expected 53.6; last 53.5). Q4 Capital Spending +3.8% year-over-year (expected 0.6%; last -1.3%)
    • Australia's Q4 GDP +1.1% quarter-over-quarter (expected 0.7%; last -0.5%); +2.4% year-over-year (consensus 1.9%; last 1.8%). February AIG Manufacturing Index 59.3 (last 51.2)
    • New Zealand's Q4 Terms of Trade Index +5.7% quarter-over-quarter (expected 4.1%; last -1.8%)
    • India's February Nikkei Markit Manufacturing PMI 50.7 (expected 50.3; last 50.4)
  • News from the region was limited:
    • Economic data from China and Australia was better than expected.

• Major European indices trade higher across the board with Italy's MIB setting the pace. UK's FTSE +1.1%, Germany's DAX +1.4%, France's CAC +1.6%, Italy's MIB +2.3%.
  • In economic data:
    • Eurozone February Manufacturing PMI 55.4 (expected 55.5; last 55.5)
    • Germany's February Unemployment Change -14,000 (expected -10,000; last -26,000), February Unemployment Rate held at 5.9%, as expected, and February Manufacturing PMI 56.8 (consensus 57.0; last 57.0)
    • UK's February Nationwide HPI +0.6% month-over-month (expected 0.2%; last 0.2%); +4.5% year-over-year (consensus 4.0%; last 4.3%). February Manufacturing PMI 54.6 (expected 55.6; last 55.9) and January Mortgage Lending GBP3.40 billion (expected GBP3.70 billion; last GBP3.70 billion).
    • France's February Manufacturing PMI 52.2 (consensus 52.3; last 52.3)
    • Italy's February Manufacturing PMI 55.0 (expected 53.5; last 53.0)
    • Spain's February Manufacturing PMI 54.8 (consensus 56.0; previous 55.6)
    • Swiss January Consumption Indicator 1.43 (last 1.38)
  • In news:
    • In France, presidential candidate Francois Fillon vowed to continue his campaign even though he is expected to face charges for alleged misuse of public funds.

Upgrades: 

• easyJet (ESYJY) upgraded to Buy from Hold at Cantor Fitzgerald
• South32 (SOUHY) upgraded to Buy from Hold at HSBC
• Next (NXGPF) upgraded to Buy from Sell at Redburn
• Imperial Brands (IMBBY) upgraded to Outperform from Neutral at Credit Suisse
• Telefonica S.A. (TEF) upgraded to Buy from Neutral at BofA/Merrill

Downgrades: 

• Ultra Electronics (UEHPY) downgraded to Hold from Buy at Liberum

Miscellaneous: 

• None of note

• Robert W. Baird downgrades PANW to Neutral from Outperform and lowers their tgt to $130 from $175 after co reported a soft FQ2 and offered FQ3 guidance that was well below expectations. Product rev expectations were lowered for the 2H'F17. Mgmt cited execution issues as opposed to competitive challenges. Firm believes Cisco (CSCO) has become a meaningfully stronger competitor per channel feedback. They feel more comfortable moving to the sidelines at this point as co works through a sales coverage reorg.
• First Analysis Sec downgrades PANW to Equal-Weight from Overweight and lowers their tgt to $120 from $175, believing mgmt will need time to regain investor confidence after a disappointing FQ2 and guidance materially below consensus for FQ3, representing the fourth consecutive quarter of what firm considers disappointing guidance and by far the largest shortfall vs. expectations to date. Mgmt is addressing the issues it sees, but firm thinks it will be a few quarters before investors find out if the company can continue to execute as well as it has historically, given its large scale, and whether the above-noted changes are the sole issue or competitive, product, or other issues are also factors.
• William Blair downgrades to Market Perform
• Wunderlich downgrades to Hold
• JP Morgan downgrades to Neutral
• Maxim cuts tgt to $168 from $185. Big picture, they remain Buy rated; brand recognition is reaching a zenith but not on decline, in our view. Guidance a huge disappointment, but expect aggressive buyback activity below $130/share to provide share price support. No longer see their long-term assumptions as conservative, but see as likely.
• Stifel cuts tgt to $170 from $210. Palo Alto Networks reported F2Q17 results that largely underperformed Street expectations, with management citing sales execution issues as the primary driver of the company's underwhelming print. The co also announced that it has both acquired LightCyber, a behavorial analytics co, for $105mn in cash as well as increased its total share repurchase authorization by $500mn to $1bn. The repurchase authorization expires on December 31, 2018, and as of January 31, 2017, $330mn of the initial $500mn authorization remained available.
• RBC cuts tgt to $140 from $170. While results and guidance were a big disappointment, they aren't throwing in the towel at these levels as they have confidence in their new estimates and believe management, which they still have a high degree of respect for, can fix the go-to-market issues and deliver above-peer growth. Maintain OP rating and lower target to $140 as the stock is likely range-bound for the near term.
• BMO cuts gt to $132 from $160. They had thought that PANW would report very modest upside to its January quarter, but PANW missed their/consensus estimates, which they believe was driven by both execution and competitive issues. They believe PANW's growth will continue to slow, given that PANW is a more expensive solution. They believe that CHKP may be the best stock of the leading network security providers, given that they don't think CHKP will face decelerating revenue pressures.
• PANW -20% premarket; may find support near the $120 level... 
  • Weghing on security peers: PFPT -1.68% CHKP -1.56% FTNT -1.37% SYMC -0.98% HACK -0.59% MIME -0.15% FEYE -0.09%

German Bunds See Worst Day Since January

• European sovereign bonds are falling sharply today in sympathy with declines in U.S. Treasuries. Also weighing on the market was German inflation data, which showed CPI growth accelerating to a four-year high of 2.2% in February. French government bonds are outperforming those of the other major eurozone countries as concerns about April's presidential election recede. European manufacturing PMI data disappointed slightly for February but Eastern Europe showed marked improvement. Eurozone manufacturing activity remains at its strongest since early 2011
• New Issuance:
  
  • Germany sold EUR2.494 bln of 10-year bunds at an average yield of 0.25% with a bid-to-cover ratio of 1.35
• European Economic Data:
  
  • The U.K.'s manufacturing PMI declined more than expected to 54.6 in February from 55.9 in January
    
    • The U.K.'s BRC Shop Price Index fell 1.0% y/y in February after a 1.7% decline in the prior month
    • The U.K.'s Nationwide House Price Index climbed 0.6% m/m in February (4.5% y/y), exceeding both expectations and January's 0.2% growth
  • The eurozone's manufacturing PMI was revised down to 55.4 for February from the preliminary reading of 55.5 (January's reading was 55.2)
    
    • France: revised down to 52.2 from 52.3
    • Germany: revised down to 56.8 from 57.0
    • Italy: 55.0 versus 53.0 in January
    • Spain: 54.8 versus 55.6 in January
  • German unemployment fell by 14K workers in February, missing estimates after a decline of 26K in January
    
    • The unemployment rate remained at 5.9%, as expected
  • Germany's consumer price index grew 0.6% m/m in February (2.2% y/y), matching expectations and reversing most of January's 0.6% drop
    
    • Germany's harmonized index of consumer prices rose 0.7% m/m in February (2.2% y/y), beating estimates after a 0.8% decline in January
  • Switzerland's SVME PMI increased more than expected in February to 57.8 from the prior reading of 54.6
    
    • Switzerland's Consumption Indicator climbed to 1.43 for January from 1.38 in December
• Yield Check:
  
  • France, 10-yr OAT: +1 bp to 0.90%
  • Germany, 10-yr bund: +5 bps to 0.26%
  • Greece, 10-yr note: -19 bps to 6.87%
  • Italy, 10-yr BTP: +2 bps to 2.11%
  • Portugal, 10-yr PGB: +5 bps to 3.90%
  • Spain, 10-yr ODE: +2 bps to 1.66%
  • U.K., 10-yr gilt: +3 bps to 1.11%

The S&P 500 futures trade 17 points (0.7%) above fair value.

Just in, January personal income rose 0.4%, which is in line with the Briefing.com consensus. Meanwhile, January personal spending increased 0.2% while the Briefing.com consensus expected a reading of 0.3%. The December Personal Spending and Personal Income readings were both left unrevised at 0.5% and 0.3%, respectively.

Separately, Core PCE prices for January rose 0.3% (Briefing.com consensus 0.2%). The December reading was left unrevised at 0.1%.

Gapping up
In reaction to strong earnings/guidance:

• WTW +20.6%, BGFV +18.2%, DAR +9.1%, LOW +8.5%, LOGM +7.5%, DY +5.7%, EVH +5.3%, (light volume), MACK +5.2%
• MYL +4.9%, MCHP +4.8%, FOLD +4.8%, MIDD +4.5%, CRH +4.5%, DPLO +4.4%, DLTR +4%, BLDR +3.9%, HLIT +3.7%
• PCRX +3.1%, KERX +2.4%, ODP +2.4%, EVEP +2.3%, BUFF +2.2%, BV +2.2%, TASR +1.9%, NAME +1.5%, WIN +1.5%
• AMC +1.4%, TCON +1.3%, DXCM +1.1%, ORA +1.1%, GTN +1.1%, MNK +1.1%

M&A news:

• CLNE +33.1% ( sells the upstream portion of its renewable natural gas business to BP)
• TIME +9.1% (Bloomberg reporting that five suitors were asked to submit bids next week)
• TRCO +8.9% (said to have been approached by Sinclair Broadcast (SBGI) about a possible combination, according to Reuters; also reported earnings)

Select financial related names showing strength:

• DB +4.1%, CS +3.7%, SAN +2.4%, RBS +2.4%, MS +2.2%, C +2.1%, ING +2%, BAC +2%, GS +2%, WFC +1.5%

Select metals producers trading higher:

• CLF +3.2%, X +3% (also VP/CFO that David Burritt has been elected Pres/COO), VALE +2.7%, BBL +2.3%, BHP +1.5%

Select Gaming related names showing strength following release of Macau gaming revs rising 18% YoiY:

• MPEL +3.8%, WYNN +3.3%, LVS +3.3%, MGM +2.6%

Other news:

• DVAX +28.9% (FDA has accepted for review its responses to the CRL issued by the FDA in November 2016 for the Biologics License Application for HEPLISAV-B; PDUFA action date of August 10, 2017)
• CLSD +14.6% (receives a NOA from the USPTO for methods of treating the posterior ocular disorder Uveitis)
• AGIO +3.7% (Agios Pharma and Celgene (CELG) announce that the FDA has accepted and granted priority review for the NDA for enasidenib)
• LXRX +3.5% (receives FDA approval for XERMELO)
• WLH +3.3% (will replace Arctic Cat in the S&P SmallCap 600)
• PRCX +3.1% (reports 'positive' topline results for phase 4 study of Exparel )
• AMD +2.9% (Advanced Micro and Bethesda Softworks announce partnership)
• OMER +2.5% (presents additional 'positive' data from the ongoing Phase 2 clinical trial evaluating OMS721)
• JKS +2.3% (entered into a Power Purchase Agreement with the Abu Dhabi Water and Electricity Co)
• NVDA +1.8% (released GeForce GTX 1080 Ti)

Analyst comments:

• MU +2.6% (upgraded to Buy from Neutral at Goldman)
• KITE +1% (target raised to $85 at H.C. Wainwright)

Gapping down
In reaction to disappointing earnings/guidance:

• IPXL -21.1%, PANW -19.5%, BW -15.2%, ENPH -12.8%, CYBE -9.9%, SSW -9.2%, (also reduces quarterly dividend)
• CHUY -8.8%, AKRX -8.7%, SRPT -7.2%, NVDQ -7%, CFI -6.6%, CLNS -6%, ETSY -5.9%, AEO -5.4%, LQ -5.3%, GORO -3.5%
• CROX -3%, QUMU -2.8%, BBY -2.8%, BBY -2.7%
• CBI -2.4%, ( enters into a definitive agreement to sell its Capital Services business to an affiliate of private equity investment firm Veritas Capital for $755 million in cash)
• BVN -2.4%, AMBA -2.3%, VSI -2.3%, PTLA -2%, TSRO -1.8%, VEEV -1.6%
• MXWL -1.6%, (Maxwell Tech to acquire substantially all of the assets and business of Nesscap for $23.175 million ), CRM -1%

M&A news:

• IBKC -5.6% (IberiaBank to acquire Sabadell United Bank in a stock and cash transaction valued at $1.025 billion; to be accretive to EPS in 2018)

Select Cyber Security related names showing weakness:

• PFPT -1.7%, CHKP -1.6%, FTNT -1.4%, SYMC -1%, CYBR -0.8%

Select metals/mining stocks trading lower:

• GG -1.8%, MUX -1.7%, GDX -1.4%, AG -1.3%, AEM -1.2%, EGO -1%, GFI -1%, ABX -0.9%, GLD -0.8%

Other news:

• AKRX -8.7% ( received FDA approval for its ANDA for Mycophenolate Mofetil for Injection USP 500 mg/vial)
• NVS -3.4% (head of North America Operations and President of Novo Nordisk Inc. has resigned from the company)
• SFR -1.4% (light volume; commences public offering of 18,476,891 of its common shares, of which 10,476,891 common shares will be offered by certain selling shareholders)

Analyst comments:

• AVT -1.3% (downgraded to Sell from Neutral at Goldman)
• INTC -0.7% (downgraded to Underperform from Mkt Perform at Bernstein)

Filings:

• Babcock & Wilcox Enterprises (BW) files mixed securities shelf offering
• Mack-Cali Realty (CLI) files for $2.5 bln mixed securities shelf offering and also, separately, files for $2 bln mixed securities shelf offering
• Dermira (DERM) files for offering of common stock
• Energy XXI Gulf Coast (EGXG) files for 9,272,285 share common stock offering by selling stockholders
• Expedia (EXPE) files for 175,040 common stock offering by selling stockholders
• Hersha Hospitality Trust (HT) files mixed securities shelf offering
• Halozyme Therapeutics (HALO) files mixed securities shelf offering
• NanoViricides (NNVC) files for $150 mln mixed securities shelf offering
• Orion Energy Systems (OESX) files $75 million universal shelf registration statement (Prior shelf registration statement expired on February 3, 2017) 

Offerings:

• Ameris Bancorp (ABCB) commences an underwritten public offering of approximately $75 million of the Co's common stock
• Apple Hospitality REIT (APLE) enters into equity distribution agreement, pursuant to which it may sell, from time to time, up to an aggregate sales price of $300 mln of its common shares
• Dermira (DERM) to offer 3.7 mln shares of its common stock in an underwritten public offering pursuant to a shelf registration statement 
• IberiaBank (IBKC) commences underwritten public offering of $500 mln of the common stock in conjunction with the acquisition of Sabadell United Bank
• Colony Starwood Homes (SFR) commences public offering of 18,476,891 of its common shares, of which 10,476,891 common shares will be offered by certain selling shareholders

Pricings:

• Silicon Labs (SLAB 67.50) prices $350 mln of 1.375% Convertible Senior Notes due 2022
• Square (SQ 17.32) prices an upsized offering of $400 mln (from $350 mln) of convertible senior notes due 2022

• Coming off the smartphone market's lowest year-over-year growth of 2.5% in 2016, a new forecast from the International Data Corporation Worldwide Quarterly Mobile Phone Tracker shows worldwide smartphone shipments rebounding in 2017 and beyond.
• While growth is expected to remain in the low single digits, IDC predicts shipment volumes to grow 4.2% in 2017 and 4.4% in 2018 with a compound annual growth rate of 3.8% over the 2016-2021 forecast. Shipments are forecast to reach 1.53 billion units in 2017 and grow to 1.77 billion in 2021.
• iOS: Apple continues to do roughly 50% of its iPhone volume between North America and Western Europe, but Asia/Pacific (excluding Japan) continues to grow as a share of Apple's volumes mainly driven by continuous demand in China. IDC Release — Related Stocks: AAPL, GOOG, MSFT, BBRY, SSNLF

Equity futures point to a solidly higher open for the stock market on Wednesday morning following President Trump's first address to Congress yesterday evening. The S&P 500 futures currently trade 18 points (0.7%) above fair value.

Mr. Trump's speech went smoothly last night as the president took a more traditional, toned-down approach. He reiterated his plans to boost infrastructure spending, cut taxes, repeal and replace the Affordable Care Act, bring down drug prices, and build up the military, but did not really provide any «new» information. Nonetheless, the reminder has been enough to excite the bulls this morning.

U.S. Treasuries are under heavy selling pressure this morning after New York Fed President Dudley (FOMC voter) said that the case for raising interest rates has become «a lot more compelling» on Tuesday.

In addition, the PCE Price Index for January came in a little better than expected, showing an increase of 0.3% (Briefing.com consensus 0.2%) and providing further support for a March rate hike. Also of note, January personal income rose 0.4%, which is in line with the Briefing.com consensus, while January personal spending increased 0.2% (Briefing.com consensus 0.3%).

The benchmark 10-yr yield trades six basis points higher at 2.46% while the U.S. Dollar Index (101.90, +0.58) hovers at its seven-week high, up 0.6%.

In corporate news, retailers have dominated the earnings front again this morning. Lowe's (LOW 81.06, +6.69) has spiked 9.0% in pre-market trade after reporting better than expected earnings and revenues and issuing upbeat guidance, while Best Buy (BBY 42.73, -1.40) has tumbled 3.2% after missing on the top line and issuing disappointing guidance.

Investors will receive a few more economic reports on Wednesday--January Construction Spending (Briefing.com consensus 0.6%) and February ISM Index (Briefing.com consensus 56.1%) at 10:00 ET and the Fed's Beige Book for March at 14:00 ET--while February auto and truck sales will be released throughout the day. 

• Expect housing to continue to be a bright spot in 2017
• Sees rising housing prices, job growth, and improving incomes as catalysts for increased consumer spending in 2017
• believes "macroeconomic fundamentals remain favorable"
• Customer transactions +15.1% in Q4
• Average ticket +3.6% in Q4
• Comps trend, estimates positive 100 bps impact from weather
  
  • November +4.7% vs +2.8% in 2015
  • December +6.3% vs +7.3% in 2015
  • January +4.2% vs +5.3% in 2015
• Saw above average performance: appliances, kitchens, lawn&garden, lumber&building materials, rough plumbing & electrical
• Saw below average performance: fasion fixtures, home fasions, outdoor power equipment, paint, seasonal living
• Gross margin of 34.41%, down 25 bps due to negative impact from Rona's mix

• KMT  is a supplier of tooling, engineered components and materials consumed in production processes. The Infrastructure segment generally serves customers that operate in the earthworks and energy sectors supporting primary industries, such as oil and gas, power generation, underground, surface and hard-rock mining, highway construction and road maintenance
• In Congressional Address last night, President Trump said «To launch our national rebuilding, I will be asking Congress to approve legislation that produces a $1 trillion investment in infrastructure of the United States — financed through both public and private capital — creating millions of new jobs.  This effort will be guided by two core principles: buy American and hire American.»

Economic Data Summary:

• Weekly MBA Mortgage Applications 5.8% vs Briefing.com consensus of; Last Week was -2.0%
• January Personal Income 0.4% vs Briefing.com consensus of 0.4%; December was 0.3%
• January Personal Spending 0.2% vs Briefing.com consensus of 0.3%; December was 0.5%
  • This report also exposes some of the disconnect between «soft» survey data, like yesterday's Consumer Confidence report, and the «hard» data. The former has been uplifting while the latter has suggested there is still plenty of heavy lifting left to do to reach the promised GDP growth land of 3-4%.
• January PCE Prices — Core 0.3% vs Briefing.com consensus of 0.2%; December was 0.1%
• January Construction Spending -1.0% vs Briefing.com consensus of 0.6%; December was -0.2%
• February ISM Index 57.7 vs Briefing.com consensus of 56.1; January was 56.0

Upcoming Economic Data:

• February Challenger Job Cuts due out Thursday at 7:30 (January was -38.8%)
• Weekly Initial Claims due out Thursday at 8:30 (Briefing.com consensus of 244K; Last Week was 244K)
• Weekly Continuing Claims due out Thursday at 8:30 (Last Week was 2.06 M )

Other International Events:

• China's February Manufacturing PMI 51.6 (expected 51.1; last 51.3), February Caixin Manufacturing PMI 51.7 (expected 50.8; last 51.0), and February Non-Manufacturing PMI 54.2 (last 54.6).

• Trading higher following earnings/guidance: WTW +23.1%, LOW +9.8%, BGFV +9.3%, LINC +4.8%, GTN +4.6%, ILG +3.2%, DLTR +1.6%, HSY 1% (Hershey Foods announces initiatives for futures sales/earnings growth; expects to reduce workforce by 15%, announces related charges, issues updated guidance; reaffirms sales guidance),  CHUY +0.7%
• Auto names trading higher following monthly sales: GM +1.4%, F +1.3%, FCAU +1.1%, NSANY +0.7%
• Trading lower following earnings/guidance: APEI -16.8%, AEO -11%, BBY -3.8%, ROST -3.5%, CROX -2.3%

• Macau Gaming Inspection and Coordination Bureau reported February gross gaming revenue +17.8% YoY to 22.991 bln patacas vs -0.1% in the same period last year… Casino/gaming names are higher across the board -- WYNN +5.4%, MPEL +4%, MCRI +3.3%, CZR +3.4%, LVS +3.3%, MGM +2.4%, ISLE +2.3%, PENN +2%, BYD +2%, UWN +2%, PNK +1.4%, BJK +1.1%, CNTY +1%,
• Leaders: WYN 1.2% ( increases quarterly dividend to $0.58/share from $0.50/share ), WLH 5.8% (will replace Arctic Cat in the S&P SmallCap 600), TIME 8% (Bloomberg reporting that five suitors were asked to submit bids next week), AMZN 0.7% (Amazon AWS confirms S3 is fully recovered and operating normally), GME 0.3% (raises annual cash dividend to $1.52/share from $1.48/share)
• Laggards:  EXPE -0.4% ( files for 175,040 common stock offering by selling stockholders; proposed max offering price of $119.03/share)
• Nearly unchanged: TGT (downgraded to Underperform from Peer Perform at Wolfe Research)

Looking ahead:

• On the earnings front: ANF, BUD, BKS, BURL, TAST, KR, SHLD, SSI, SRI, SUP report tomorrow before the open.
• A handful of retailers will be reporting monthly sales on Thursday March 2.

• Global supply remains dynamic, geopolitical uncertainties remain; co expects energy demand to increase 25% by 2040.
• Co sees annual capex hitting $25 bln by the end of the decade.
  • FY17 capex projected to be ~$22 bln; 1/3 of this will go to short-cycle investments let by Permian & Bakken
• Co plans to continue spending about $1 bln annually on avg on research/development.
• Expects production between 4-4.4 mln barrels of oil equivalent through the end of the decade.
• Expects to grow volumes on avg 2% per year from 2017 through 2020.
• Co has 3-4 BOEB of potential reserve additions from 2017-2018.
• Co sees 10% return or greater on 25 BOEB worth of opportunities around current oil prices.
• Notes 7000 drill well locations that provide 'attractive returns' at $40/barrel.
• XOM plans to expand US Gulf crude capacity by 340k bbls/day.

— Shares of XOM +1.6%.

• On the afternoon of February 21, the WSJ reported Ichan took a stake in Bristol Myers (BMY), but Ichan has yet to file a stake with the SEC to confirm this.
• That morning, BMY added three directors to its Board and announced a $2 bln accelerated share repurchase after JANA Prtners took a 3.9 mln share stake in the fourth quarter.
• Interestingly, Mr. Mulligan is on the Biogen (BIIB) Board of Directors.

• Tiguan sales totaled 3,425 units, an increase of 5.5 percent over February 2016, marking the best February ever for the vehicle.
• Golf SportWagen sales (which include the all-new Alltrack) totaled 2,094 units, an increase of 229.8 percent over February 2016.
• Chattanooga-built Passat sales totaled 6,114 units, an increase of 39.6 percent over February 2016.

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:

• MRVL May 16 calls are seeing interest following upgrade at Goldman and ahead of earnings tomorrow March 2 after the close with 1130 contracts trading vs. open int of 43.5K, pushing implied vol up around 4 points to ~49% — co is scheduled to present at an investor day on March 10.

Puts:

• NG Apr 5 puts are seeing interest with 1010 contracts trading vs. open int of 180, pushing implied vol up around 5 points to ~51% — co is expected to present at a PDAC conference on March 5. Co is expected to report earnings mid-April.

Stocks seeing volatility selling:

• HRI, INSY, LOW, PEGI, WIN implied vol is lower following earnings/guidance

Sentiment: The CBOE Put/Call ratio is currently: 0.63… VIX: (12.25, -0.67, -5.2%).
March 17 is options expiration — the last day to trade March 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.

• Publix's sales for the fourth quarter of 2016, a 14-week period, were $9.1 billion, an 11.1 percent increase from last year's $8.2 billion, a 13-week period. The additional week in the fourth quarter of 2016 increased sales by 7.4 percent.
  • Comparable-store sales for the fourth quarter of 2016 increased 2.2%.
• Net earnings for the fourth quarter of 2016 were $544.5 million, compared to $521.1 million in 2015, an increase of 4.5 percent
• Grocers: KR WFM SVU WMK NGVC UNFI IMKTA VLGEA WMT TGT

• The acquisition is the latest Accenture transaction in the utilities sector following its combination in 2015 with Structure, a leader in grid operations. Davies Consulting's employees are part of the Digital Asset Management group in Accenture's transmission and distribution practice.
• Together, the organizations will continue to support utilities in their mission to deliver safe, reliable and affordable energy amid evolving customer demands, shareholder needs and other business issues.