Америка сегодня. Торговый баланс и потребительские кредиты.

On The Wires

• FLSmidth (FLIDY) has been awarded an order from El Sewedy Cement Company for engineering, procurement and supply of equipment for the expansion of a cement production line. The plant will be built at Ain Soukhna in Suez Governorate, Egypt.
• Prism Technologies Group (PRZM) announced that the Court of Appeals for the Federal Circuit unanimously affirmed the patent infringement verdict in favor of its subsidiary, Prism Technologies LLC, against Sprint Spectrum LP d/b/a Sprint PCS (S). In June 2015, a jury in the United States District Court for the District of Nebraska found that the accused Sprint network systems and methods infringe multiple claims of U.S. Patent Nos. 8,387,155 and 8,127,345. Prism was awarded trial damages of $30 million representing a reasonable royalty for Sprint's infringement. Prism was also awarded $2 million in prejudgment interest and will be entitled to post-judgment interest in an amount to be determined.
• On March 6, 2017, the Board of Directors of Support.com (SPRT) appointed Richard Bloom, the current interim President and Chief Executive Officer of the Company, as Principal Financial Officer and Principal Accounting Officer of the Company, effective as of February 28, 2017. Mr. Bloom has been interim President and Chief Executive Officer of the Company since October 28, 2016 and has served as a director since June, 2016.
• Avino Silver & Gold (ASM) issued a statement detailing that British Columbia mining and exploration icon Louis Wolfin, who founded Avino Silver & Gold Mines in 1968 and ran the company for over 30 years, died peacefully at his home on Friday, March 3. He was 85 years old.
• In order to further implement the policy requirements and work deployment of the State regarding network speed upgrade & tariff reduction, China Unicom (CHU) announces that it will substantially reduce Internet private line access tariff for small and medium enterprises, reduce international long-distance call tariff, and, from 1 October 2017 onwards, stop charging mobile handset subscribers domestic long-distance and roaming fee. The Company expects that the aforementioned tariff reduction measures will impact the operating revenue and net profit of the Company to a certain extent. The Company will continue to deepen the implementation of Focus Strategy, accelerate innovative transformation and optimise business structure so as to achieve continuous healthy business development along with the implementation of speed upgrade and tariff reduction.

 Overnight Summary — World markets lack direction early Tuesday's early stages

• The global equity markets are mixed but little changed across the board this morning. S&P Futures are down ~0.2% and trading near the bottom end of the 5-point nightly range.
• In Asia, the Nikkei closed 0.2% lower, extending losses from the prior day. Macro-data was absent in Japan. Gains is the Energy sector were offset by losses among Financials. Exporters were also mixed with limited currency fluctuations in the yen across most pairs during the session.
• China saw a small gain in the Shanghai of 0.3%, but the most significant economic news came out after the stock market was closed. As such, the state reported FX reserves for February of $3.005 trln, better than the expectation of $2.969 trln. During the Chinese trading hours, traders the benchmark index was rangebound with traders appearing to have only a limited appetite for stocks, particularly with another small liquidity injection from the PBOC of ~CNY30 bln.
• European bourses have seen limited movement thus far and continue to straddle the flat line in the early stages of Tuesday's activity. Investors were met with a mixed bag of economic releases with the most concerning being a considerable fall in Germany's Factory Orders in January of 7.4%, missing the consensus estimate of -2.5%, and coming off a +5.2% reading in December. This has led to a relatively choppy session. Corporate earnings were relatively light, also lending to indecisive order flow.

Market Updates:

• S&P Futures vs Fair Value: -3.00 
• 10 yr Note: 2.4926% 
• USD/JPY: 113.93 -0.04 
• EUR/USD: 1.0572 -0.0010
• Europe: FTSE +0.1% DAX +0.1% CAC -0.3% 
• Asia: Hang Seng +0.4% Shanghai +0.3% Nikkei -0.2% 
• Commodities: Gold (1224.40 -1.10) Silver (17.73 -0.04) crude (53.35 +0.15) 

US Econ Data

• January Trade Balance (8:30am)
• January Consumer Credit (3pm)

 

 

 

 

 Domino's Pizza among stocks with favorable commentary on Monday's Mad Money  (188.89)

Stocks with favorable mention: BAC, DPZ, ROP, T, WBT, WDC

Stocks with unfavorable mention: CAB, FTR, WRD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Overseas Research Calls

Upgrades: 

• Tullow Oil plc (TUWLF) upgraded to Neutral from Sell at UBS
• Glencore Intl plc (GLNCY) upgraded to Neutral from Underweight at JP Morgan
• Taiwan Semi (TSM) upgraded to Buy from Hold at HSBC
• Aberdeen Asset Management (ABDNY) upgraded to Neutral from Underperform at Exane BNP Paribas

Downgrades: 

• SSE (SSEZY) downgraded to Sell from Neutral at Citigroup
• Centrica (CPYYY) downgraded to Neutral from Outperform at Credit Suisse

Miscellaneous: 

• JD Wetherspoon (JDWPY) initiated with a Sell at Berenberg

 Black Diamond downgrade details — to Hold at Stifel; tgt raised to $6  (5.70)Stifel downgrades BDE to Hold from Buy and raises their tgt to $6 from $5.50. BDE is entering 2017 with ~$2.40 net cash per share, $172mn in estimated NOL carryforwards, and demonstrating operational progress beyond the troubles with which they entered 2016. The market has appreciated this and our value thesis for BDE shares has materialized nicely. Unfortunately, however, profitability improvement is slow to materialize and firm sees insufficient fundamental drivers to justify necessary upside to shares to support their Buy rating. Financial under-pinning remains solid though with margin progress delayed and dependent on rev growth into 2018 for which visibility is limited, firm takes rating to Hold.

 European Markets Update: FTSE +0.1%, DAX +0.1%, CAC -0.3%

Major European indices trade near their flat lines while the euro (1.0570) and pound (1.2191) hold respective losses of 0.1% and 0.4% against the dollar. Disappointing factory orders data from Germany has been cited as the reason for the cautious tone. German Chancellor Angela Merkel made a case for a «multi-speed» European Union in order to allow member states to confront issues at their own speed. Chancellor Merkel will stand for a fourth term this fall. In other political news, France's Conservative Political Committee backed Francois Fillon's candidacy after Alan Juppee ruled out running for office.

• In economic data:
  • Germany's January Factory Orders -7.4% month-over-month (expected -2.5%; last 5.2%)
  • Eurozone Q4 GDP was left unrevised at 0.4% quarter-over-quarter, as expected; +1.7% year-over-year, as expected
  • UK's February Halifax House Price Index +0.1% month-over-month (expected 0.3%; last -1.1%); +5.1% year-over-year (consensus 5.3%; last 5.7%)
  • Italy's January PPI +1.0% month-over-month (last 0.5%); +2.5% year-over-year (last 0.8%)
  • France's January government budget balance -EUR5.40 billion (last -EUR69.00 billion)

---Equity Markets---

• UK's FTSE is higher by 0.1% with homebuilders and select mining/energy names showing relative strength. Taylor Wimpey, Persimmon, and Barratt Developments are up between 0.6% and 1.3% while Rio Tinto, BHP Billiton, BP, and Royal Dutch Shell show gains between 0.4% and 1.4%. On the downside, Paddy Power and Ashtead Group hold respective losses of 5.1% and 3.2% in reaction to disappointing results.
• Germany's DAX trades up 0.1% amid strength in exporters. Daimler, Continental, and Volkswagen lead with gains between 0.5% and 0.8%. Financials Commerzbank and Deutsche Bank underperform with respective losses of 1.6% and 2.1%.
• France's CAC has given up 0.3%. Total is down 1.0% while financials Credit Agricole, BNP Paribas, and Societe Generale show losses between 0.4% and 0.7%. On the upside, Renault, Peugeot, and Michelin are up between 0.5% and 0.6%.

 Treasury Market Summary

Treasuries Unchanged Ahead of 3-Year Note Auction

• U.S. Treasuries are trading little-changed this morning as the U.S. Dollar Index adds 0.16% to 101.80 and global equities track lower. During the overnight session, data showed that German factory order growth disappointed badly in January and that U.K. house prices rose less than expected in February. The Reserve Bank of Australia kept monetary policy on hold, as expected. Brazil's economy shrank by more than expected in the fourth quarter (-0.9% q/q, -2.5% y/y). The U.S. economic data will be light again today but the Treasury begins this week's auctioning of $54 bln in coupon-bearing securities. The S&P 500 is set to open down 0.11% to 2,372.5 and WTI crude is up 0.45% to $53.46/bbl. Gold is down 0.20% to $1,223.1/troy oz.
• Yield Check:
  
  • 2-yr: unch at 1.31%
  • 5-yr: unch at 2.02%
  • 10-yr: unch at 2.50%
  • 30-yr: unch at 3.10%

• International News:
  
  • China's foreign exchange reserves unexpectedly increased to $3.005 tln in February from $2.998 tln in January
  • The Reserve Bank of Australia kept its main policy rate at 1.50%, as expected
    
    • RBA Governor Philip Lowe said in a statement that business and consumer confidence are improving and that higher commodity prices are boosting growth
  • Australia's AIG Construction Index jumped to 53.1 for February from 47.7 for January
  • South Africa's GDP fell by 0.3% q/q in the fourth quarter (+0.7% y/y), badly missing expectations for acceleration following 0.4% growth in Q3
  • Russia's consumer price index rose 0.2% m/m in February (4.6% y/y), slowing from January's 0.6% growth
  • Eurozone GDP growth for the fourth quarter was confirmed at 0.4% q/q (1.7% y/y), as expected. Q3's growth was 0.3%
  • In Germany, manufacturing orders fell by 7.4% m/m in January, missing expectations and reversing December's 5.2% increase
  • The French government's budget deficit narrowed to EUR5.4 bln in January from EUR69.0 bln in December
  • The U.K.'s BRC Retail Sales Monitor fell by 0.4% y/y in February, missing estimates after a 0.6% decline in January
    
    • The U.K.'s Halifax House Price Index ticked up by 0.1% m/m in Febuary (5.1% y/y), missing forecasts after a 1.1% drop in January
  • Brazil's GDP contracted by 0.9% q/q in the fourth quarter (-2.5% y/y), worse than both forecasts and Q3's 0.7% decline

• Data out Today:
  
  • January Trade Balance (08:30 ET)
  • January Consumer Credit (15:00 ET)
• Treasury Auction:
  
  • $24 bln 3-year Treasury auction (results at 13:00 ET)

 

 

 S&P futures vs fair value: -2.80. Nasdaq futures vs fair value: -7.60.

Monday's selling pressure has extended into Tuesday morning as equity futures point to a slightly lower open on Wall Street. The S&P 500 futures trade three points (0.1%) below fair value.

It is worth noting that the House Republicans unveiled their first attempt at replacing the Affordable Care Act on Monday evening. The bill is expected to be voted on in House committees later this week.

U.S. Treasuries trade relatively flat this morning as fixed-income markets continue to digest last week's aggressive campaign by Fed officials to prepare markets for the possibility of a March 15 rate hike. The benchmark 10-yr yield is currently unchanged at 2.50%.

Crude oil shows a gain of 0.5% in early action as investors continue to weigh OPEC supply cuts against increased U.S. production. The energy component currently trades at $53.47/bbl.

Today's economic data will include January Trade Balance (Briefing.com consensus -$48.5 billion) at 8:30 ET and January Consumer Credit (Briefing.com consensus $17.0 billion) at 15:00 ET.

In U.S. corporate news:

• Salesforce (CRM 83.55, +1.05): +1.3% after news that the company has entered into a strategic partnership with IBM (IBM 180.24, -0.23).
• Dick's Sporting Goods (DKS 50.70, -1.75): -3.3% after beating earnings estimates and issuing below-consensus guidance.
• Pier 1 Imports (PIR 7.16, +0.50): +7.5% after raising earnings guidance for the fourth quarter and reporting an uptick in comparable sales.
• Casey's General Stores (CASY 109.30, -4.90): -4.3% after missing top and bottom line estimates. Also of note, the company announced a $300 million share repurchase.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei -0.2%, Hong Kong's Hang Seng +0.4%, China's Shanghai Composite +0.3%, India's Sensex -0.2%.
  • In economic data:
    • Australia's February AIG Construction Index 53.1 (last 47.7)
    • China's FX Reserves $3.01 trillion (expected $2.97 trillion; last $3.00 trillion)
    • Japan's BoJ Core CPI +0.2% year-over-year (last 0.1%)
  • In news:
    • The Reserve Bank of Australia left its key interest rate unchanged at 1.50%, but did upgrade its economic assessment, noting that exports have improved and non-mining business investment has increased over the past year.
    • Separately, the U.S. began shipping THAAD missiles to South Korea in response to the latest missile test by North Korea. The deployment of the THAAD system has been opposed by China.

• Major European indices trade near their flat lines while the euro (1.0570) and pound (1.2191) hold respective losses of 0.1% and 0.4% against the dollar. Disappointing factory orders data from Germany has been cited as the reason for the cautious tone. UK's FTSE +0.1%, Germany's DAX +0.1%, France's CAC +0.3%.
  • In economic data:
    • Germany's January Factory Orders -7.4% month-over-month (expected -2.5%; last 5.2%)
    • Eurozone Q4 GDP was left unrevised at 0.4% quarter-over-quarter, as expected; +1.7% year-over-year, as expected
    • UK's February Halifax House Price Index +0.1% month-over-month (expected 0.3%; last -1.1%); +5.1% year-over-year (consensus 5.3%; last 5.7%)
    • Italy's January PPI +1.0% month-over-month (last 0.5%); +2.5% year-over-year (last 0.8%)
    • France's January government budget balance -EUR5.40 billion (last -EUR69.00 billion)
  • In news:
    • German Chancellor Angela Merkel made a case for a «multi-speed» European Union in order to allow member states to confront issues at their own speed. Chancellor Merkel will stand for a fourth term this fall.
    • France's Conservative Political Committee backed Francois Fillon's candidacy after Alan Juppee ruled out running for office.

 

 

 

 Gapping up

Gapping up
In reaction to strong earnings/guidance:

• MLNK +25.5%, MEET +23.3%, HPJ +20%, ETRM +14.5%, MOMO +10.5%, JNP +9.9%, MIK +7.1%, ADUS +6.4%
• ATSG +3.6%, WMC +3.6%, PIR +3.2%, (guides for Q4 EPS of $0.32-$0.34 vs. $0.31 CapitalIQ Consensus; Sales decreased 2.6%)
• BTE +3.2%, PLOW +3.1%, PRTS +2.4%, LGIH +1.7%, AVD +1.6%, MNTX +1%, FANH +0.9%

M&A news:

• NMBL +45.2% (to be acquired by Hewlett Packard Enterprise (HPE) for $12.50/share in cash)
• GLBL +16.5% (to be acquired by Brookfield Asset management (BAM) for $787 mln in cash)

Other news:

• WFT +15.6% (appointed Mark McCollum as President and Chief Executive Officer with an effective start date in late April 2017)
• GMAN +15% (after closing near lower on reports that the company may be preparing a potential bankruptcy filing)
• VRML +9.8% (attains out-of-state provider status with Medi-Cal, California's Medicaid program, for OVA1 access to over 12 mln beneficiaries)
• DISH +5% ( to replace Linear Technology in S&P 500)
• TROV +2.8% (announces that a patient case series featuring use of its Trovera EGFR urine-based liquid biopsy test was recently published in Lung Cancer)
• LJPC +1.9% (insider buy disclosures, also Tang Capital Partners increases active stake)
• CRM +1.4% (IBM and Salesforce announce Landmark Global Strategic Partnership)

Analyst comments:

• SRCL +1.4% (upgraded to Neutral from Sell at Goldman)

 

 

 

 

 S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -10.50.

The S&P 500 futures trade four points (0.2%) below fair value.

Just in, the January trade balance showed a deficit of $48.5 billion, which is in line with the Briefing.com consensus. The previous month's deficit was left unrevised at $44.3 billion.