Америка сегодня. Данные по недвижимости и запасам нефти.

Asian MarketsNikkei...19041...-414.50...-2.10%.  Hang Seng...24320...-272.70...-1.10%.

 

 

 

 

 

 

 

 

 

 On The Wires

• KingFisher plc (KGFHY) announces that it has engaged Goldman Sachs International in relation to an irrevocable, non-discretionary programme for the purchase, by Goldman Sachs, acting as principal during the period which commences today and ends no later than 27th April 2017, of ordinary shares in the share capital of Kingfisher and the simultaneous on sale of such Shares by Goldman Sachs to Kingfisher for cancellation by Kingfisher. The aggregate purchase price of all Shares acquired under the Programme will be no greater than £50,000,000. These arrangements form part of Kingfisher's capital return programme announced on 25 January 2016.
• Erickson (EACIQ) completed another important step toward its emergence from bankruptcy when its Chapter 11 plan of reorganization was confirmed by the United States Bankruptcy Court for the Northern District of Texas. This confirmation, which comes less than five months after Erickson and its subsidiaries filed for bankruptcy protection under Chapter 11 of the Unites States Bankruptcy Code, clears the way for Erickson to emerge from bankruptcy.
• Dana Incorporated (DAN) announced that its wholly-owned subsidiary, Dana Financing Luxembourg S.à r.l., priced $400 million aggregate principal amount of 5.750% Senior Notes due 2025 at an issue price of 100.000%. The 2025 Notes will be fully and unconditionally guaranteed by Dana.
• American Tower (AMT) announced that it has mandated Barclays, BofA Merrill Lynch, Citigroup, HSBC and J.P. Morgan to organize a series of European fixed income investor meetings, commencing on Monday, March 27, 2017. An inaugural Euro-denominated, senior unsecured, 7 — 8 year maturity, benchmark transaction is expected to follow, subject to market conditions. Relevant stabilization regulations including FCA/ICMA will apply.

 

 

 

 

 Aurinia Pharma target raised to $11 at FBR & Co.  (8.37)FBR & Co. raises their AUPH tgt to $11 from $9 as they think that with a balance sheet bolstered by a public offering that we estimate raised up to $161M in net proceeds, AUPH is now in a strong position to independently advance voclosporin (VCS), its investigational therapy for patients with active lupus nephritis (LN), into Phase III testing. As VCS is directed to an autoimmune disease that has been targeted by major pharmaceutical companies (Big Pharma) hungry for the next multi-billion-dollar drug (FBR projects VCS could achieve >$2B in annual peak sales), firm looks for AUPH to receive an acquisition bid from a Big Pharma company in the next six to nine months, with an initial bid of $10 per share reasonable. They think AUPH is more likely to look to sign a partnership agreement; therefore, they look for a deal worth $500M to $700M in up-front and milestone payments to AUPH.

 

 

 

 

 

 

 Chesapeake Energy resumed with a Hold at Jefferies  (5.07)

 

 

 

 

 

 

 

 Asian Markets Close: Nikkei -2.1%, Hang Seng -1.1%, Shanghai -0.5%

Equity indices in the Asia-Pacific region ended the midweek session on a broadly lower note, taking a cue from Tuesday's slide on Wall Street. Japan's Nikkei (-2.1%) paced the decline as the yen extended yesterday's advance. Overnight yen strength has pressured the dollar/yen pair to a new low for the year in the 111.15 area. Elsewhere, an op-ed in the Chinese press discussed the possibility of an economic slowdown in the second half of the year. The op-ed argued that the Chinese government should step in to stabilize growth.

• In economic data:
  • Japan's All Industries Activity Index +0.1% month-over-month, as expected (last -0.2%). February trade surplus expanded to JPY680 billion from JPY200 billion (expected surplus of JPY550 billion). February Imports +1.2% year-over-year (consensus 0.6%; last 8.5%); +11.3% year-over-year (expected 10.6%; last 1.3%)
  • Australia's MI Leading Index -0.1% month-over-month (last 0.0%)

---Equity Markets---

• Japan's Nikkei lost 2.1% amid weakness in most components. Financials were among the laggards with T&D Holdings, Dai-ichi Life Insurance, MS&AD Insurance Group, Sony Financial Holdings, Nomura Holdings, and Mitsubishi UFJ surrendered between 4.3% and 7.2%.
• Hong Kong's Hang Seng fell 1.1%, returning to levels from the end of last week. Hengan International Group, China Life Insurance, Ping An Insurance, Bank of China, and ICBC posted losses between 1.9% and 4.5%. Geely Automobile outperformed, surging 5.8%.
• China's Shanghai Composite ended lower by 0.5%. Shanghai Bailian Group, Shandong Pharmaceutical Glass, Fangda Special Steel Technology, Xinyu Iron & Steel, and Kangxin New Materials posted losses between 3.3% and 3.8%.
• India's Sensex registered its third consecutive loss, falling 1.1%. Bharti Airtel led the decline with a 3.2% slide. Tata Motors, ITC, Bajaj Auto, Mahindra&Mahindra, Tata Steel, and Maruti Suzuki settled with losses between 1.1% and 2.8%.

---FX---

• USDJPY -0.4% to 111.24
• USDCNY UNCH at 6.8875
• USDINR -0.2% to 65.476

 

 

 

 Playa Hotels & Resorts initiated with a Buy at Instinet; tgt $13  (10.16)

 Ping An Insurance shares down 2% overseas following FY16 results  (11.24)

• Co reported FY16 net profit of RMB 3.50 vs RMB 2.98 last year; net investment income of RMB 105.03 bln vs RMB 84.74 bln last year

 

 

 

 Early premarket gappers

Gapping up:

• BEBE +33.1%, DLTH +20.7%, IDXG +10.2%, VKTX +5.6%, ACHN +3.9%, AYA +3.6%, APC +3.5%, SLW +2.9%, HQY +2.7%, STM +2.4%, SSL +2.1%, FDX +2.1%
• SNAP +1.5%, AG +1.2%, SBGL +1.1%, MDP +1.1%, VRX +1%, ASML +0.9%, HMY +0.8%, UN +0.7%, ABX +0.6%, AZN +0.6%, CHK +0.6%, CDE +0.5%

Gapping down:

• RGNX -7.2%, FTR -5.5%, ING -4.5%, ADAP -4.2%, NKE -4.1%, DEA -3.7%, SDRL -2.2%, VALE -2.1%, BCS -1.8%, PUK -1.7%, LYG -1.7%, BHP -1.5%
• VSR -1.3%, RBS -1.2%, BBL -1.1%, X -1.1%, BIDU -1%, STO -1%, AKS -0.9%, RIG -0.9%, CS -0.8%, BAC -0.8%, HSBC -0.7%, RIO -0.6%, SCS -0.6%, JPM -0.5%

 

 Trustmark upgraded to Outperform at Hovde Group following pullback in shares; tgt $36  (30.75)Hovde Group upgrades TRMK to Outperform from Market Perform and sets target price at $36 owing to a combination of an attractive valuation, a healthy funding profile, and an expectation for additional accretive acquisition opportunities. First, they view the valuation as incrementally attractive, with the shares now trading at a 183% of TBV/sh, a considerable discount to the peer median of 219%. Second, they view TRMK as reasonably well-positioned for a rising rate envm't given its very low cost of funds and healthy funding mix. Third, they view TRMK as getting incrementally more active with accretive acquisitions, with its pending acquisition of Alabama-based RB Bancorporation expected to close in coming months, and the company benefiting from healthy capital levels and an improved stock multiple.

 

 Cinemark downgraded to Hold from Buy at Wunderlich  (44.13)

 Broadly positive sentiment, normal concerns — Reit Buy on Opticals — Needham  (9.52)Needham hosted a full slate of Optical names and attended the INFN and CIEN analyst meetings. Sentiment was broadly upbeat with most companies noting numerous demand drivers and a broadening of end market demand. OCLR and FN were the most upbeat. China was a key topic and there seemed to be a pretty strong conviction that demand would likely start to show in CY2Q and ramp into a strong CY2H. Most agreed Metro after a slow CY16 is finally starting to ramp. Similarly Data Comm 100G is expected to ramp sharply with new form factor 100G products likely sold out through at least the end of CY17. 5G was often mentioned as another positive driver. They reiterate their Buy on the Optical group with particular focus on FN, OCLR, LITE, and FNSR. Strong BUy: SBI, LITE, FN, OCLR, FNSR, NPTN, INFN; Buy: ACIA.

 

 

 European Markets Update: CAC -0.4%, DAX -0.5%, FTSE -0.9%

Major European indices trade lower across the board, but losses have been contained to no more than 1.0% so far. The Euro Stoxx 50 index is down 0.3%. ING Groep is the weakest component, falling 4.9% amid reports the company is being investigated by Dutch authorities for money laundering. Yesterday afternoon, French presidential candidate Emmanuel Macron said, in a tweet, «I refuse a multi-speed approach on European values: if you are part of the EU to access the single market, you have to respect our values.» This puts Mr. Macron on a collision course with German Chancellor Angela Merkel, who has spoken in favor of adopting a two-speed approach to European integration. Keep in mind that Ms. Merkel will stand for re-election later this year.

• In economic data:
  • Eurozone January Current Account surplus EUR24.10 billion (expected surplus of EUR29.30 billion; prior surplus of EUR30.80 billion

---Equity Markets---

• France's CAC is down 0.4% with ArcelorMittal falling 2.4% to lead the retreat. Financials have not done much better, as AXA, Societe Generale, Credit Agricole, and BNP Paribas show losses between 0.9% and 1.8%. On the upside, L'Oreal is up 0.9% while Danone and Pernod Ricard sit just above their flat lines.
• Germany's DAX has given up 0.5%. Lufthansa and ThyssenKrupp are both down near 1.8% while financials Commerzbank and Deutsche Bank show losses close to 1.0% apiece. Exporters BMW and Daimler hold respective losses of 0.9% and 0.7% while Volkswagen has added 0.1%.
• UK's FTSE is lower by 0.9%. Kingfisher has plunged 6.1% in reaction to disappointing results and news that its Chairman will step down. Financials also trade notably lower with Standard Chartered, Barclays, RBS, Prudential, Standard Life, and Lloyds Banking down between 1.8% and 3.0%. Miners like Fresnillo, Randgold Resources, and Antofagasta outperform with gains between 0.4% and 0.9%.

 

 On The Wires

• Intec Pharma Ltd. (NTEC) announced the initiation of a Phase I clinical trial of AP-CBD/THC, its Accordion Pill platform with the two primary cannabinoids contained in Cannabis sativa, cannabidiol and tetrahydrocannabinol, which is being developed by Intec for various indications, including low back pain and Fibromyalgia. Expects Phase I Results in the Third Quarter of 2017.
• Cubic Mission Solutions, a business division of Cubic Corporation (CUB), announced a contract award worth more than $20 million from the U.S. Navy's San Diego-based Space and Naval Warfare Systems Command (SPAWAR) for the development and delivery of Person-portable Common Data Link (PCDL) systems. Cubic will deliver these systems for the Navy Tactical Mobile (TacMobile) Program, which is managed by the Carrier and Air Integration Program Office, or PMW 750. The TacMobile Program provides expeditionary ground support for Maritime Patrol and Reconnaissance Aircraft (MPRA), which include the P-3C, P-8A aircraft and the MQ-4C Triton. PMW 750 is responsible for providing integrated Command, Control, Communications, Computers and Intelligence, Surveillance, and Reconnaissance (C4ISR) capabilities in support of these Navy aircraft.  Under the contract, Cubic will be responsible for procuring, producing, assembling, testing, documenting and delivering TacMobile PCDL. 
• AVEO Oncology (AVEO) announced that the first patient has been dosed in the Phase 1/2 AVEO-sponsored TiNivo trial evaluating tivozanib in combination with Bristol-Myers Squibb's anti-PD-1 therapy, Opdivo (nivolumab), in advanced renal cell carcinoma (RCC). The study, which will be led by the Institut Gustave Roussy in Paris, is under the direction of Professor Bernard Escudier, MD, Chairman of the Genitourinary Oncology Committee. The Phase 1 trial will evaluate the safety of tivozanib in combination with nivolumab at escalating doses of tivozanib and, assuming favorable results, is expected to be followed by an expansion Phase 2 cohort at the established combination dose.
• EDF Group (ECIFY), via its subsidiary EDF Energies Nouvelles has joined the Masdar-led consortium developing the 800-megawatt (MW) third phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

 Cytokinetics announces preclinical data for CK-2127107 was presented at MDA Scientific Conference; mouse models exhibit 'significant' nerve dysfunction and/or muscle atrophy and a decrease in maximum muscle force production  (12.20)

In collaboration with Astellas Pharma (ALPMY), Cytokinetics is developing CK-2127107 as a potential treatment for people living with SMA and certain other debilitating diseases and conditions associated with skeletal muscle weakness and/or fatigue.

• The study evaluated CK-2127107 in 2B/2B-Neo Intermediate SMA mice, in collaboration with Lurie Children's Hospital and Hung Li SMA mice. These mouse models exhibit significant nerve dysfunction and/or muscle atrophy and a decrease in maximum muscle force production. Muscle force production was assessed by electrical stimulation of the sciatic nerve and plantar flexor force was measured in response to a range of stimulation frequencies.
• Single doses of CK-2127107 increased isometric force in situ in response to sub-tetanic nerve stimulation in both mouse models. In the 2B/2B-Neo SMA mice, force output at a physiologically relevant sub-tetanic stimulation frequency was significantly increased following dosing of CK-2127107 at 10 mg/kg and 30 mg/kg. In the Hung Li SMA mice, force output at sub-tetanic nerve stimulation increased with 30 mg/kg of CK-2127107 to levels higher than wild-type control mice. In both the 2B/2B Neo and Hung Li SMA mouse models there was a leftward shift of the force-frequency response curve indicating a calcium sensitizing effect of CK-2127107 in the skeletal muscle of these mouse models of SMA with nerve dysfunction and muscle atrophy. These results suggest that CK-2127107 and other FSTAs may be viable therapeutics for improving muscle function in SMA.

 Overnight Treasury Summary

Treasuries Edge Higher as Investors Digest Tuesday's Stock Swoon

• U.S. Treasuries are a touch higher this morning after oil prices declined overnight and U.S. equity index futures seek direction after a bruising Tuesday session for stocks. The international economic data releases were scant although the eurozone's trade surplus narrowed more than expected in January and Japan's trade surplus widened more than expected in February. Today's U.S. session features February Existing Home Sales. The U.S. Dollar Index is up by 0.03% to 99.85 and the S&P 500 is set to open down 0.07% to 2,342.1. WTI crude is down by 1.29% at $47.62/bbl. and gold is off by 0.09% at $1,245.4/troy oz.
• Yield Check:
  • 2-yr: unch at 1.26%
  • 5-yr: -1 bp to 1.93%
  • 10-yr: -1 bp to 2.41%
  • 30-yr: -2 bps to 3.02%

• International News:
  • Cleveland Fed President Loretta Mester said last night that says that there is not yet evidence that improved business sentiment has led firms to spend more
    • Mester went on to say that she had forecast more than three rate hikes in 2017
    • She said that balance sheet policy should not substitute for changes to the Fed funds rate
    • She is a hawk and will vote again in 2018
  • Boston Fed President Rosengren (non-FOMC voter) again flagged up concerns about the commercial real estate sector as a potential source of financial instability that is difficult to control with monetary policy:
    • Because real estate holdings are widespread, and the monetary and macro-prudential tools for handling valuation concerns are somewhat limited, I believe we must acknowledge that the commercial real estate sector has the potential to amplify whatever problems may emerge when we at some point face an economic downturn.
  • Japan's seasonally adjusted trade surplus widened more than expected to JPY680 bln in February from JPY200 bln in January
    • Exports rose 11.3% y/y (+1.3% prior)
    • Imports rose 1.2% (+8.5% prior)
  • Also in Japan, the All Industries Acitivty Index was up 0.1% m/m in January, meeting expectations after a 0.2% decline in December
  • Taiwan's unemployment rate remained at 3.8% in February, as expected
  • Australia's Westpac Leading Index fell by 0.1% m/m in February after remaining unchanged in January
  • The eurozone's seasonally adjusted trade surplus narrowed more than expected in January to EUR24.1 bln from EUR30.8 bln
  • Irish producer prices were unchanged m/m in February, missing estimates after 0.2% growth in January
  • Norway's ILO unemployment rate fell to 4.2% for January (4.4% prior)

• Data out Today:
  
  • MBA Mortgage Index for the week ending 3/18: Actual -2.7% w/w, Prior +3.1%
  • January FHFA Housing Price Index (09:00 ET)
  • February Existing Home Sales (10:00 ET)
  • Crude Inventories for the week ending 3/18 (10:30 ET)

 

 Brixmor Property downgraded to Neutral from Outperform at Boenning & Scattergood  (21.73)

 S&P futures vs fair value: -1.30. Nasdaq futures vs fair value: -1.90.

Equity futures point to a slightly lower open for Wednesday's session after the S&P 500 lost more than 1.0% for the first time since October on Tuesday. The S&P 500 futures trade one point below fair value.

Investors will keep their eyes on Washington today as reports indicate that there are currently 27 House Republicans that are ready to vote 'No' on the American Health Care Act on Thursday, which is more than the 22 needed to block the bill. Rather than losing on the floor of the House, GOP leaders may pull the legislation, which would serve as a blow to investors who have been hoping that the new administration would be able to shift its focus to tax reform soon.

Crude oil is under pressure this morning after the latest inventory report from the American Petroleum Institute (API) showed a build of 4.5 million barrels. The commodity will have a chance at redemption later this morning when the Energy Information Administration (EIA) releases its inventory report at 10:30 ET, but for now, WTI crude trades 1.4% lower at $47.57/bbl.

Treasuries have seen an uptick in buying interest this morning, putting U.S. sovereign debt on track for its fourth consecutive advance. The benchmark 10-yr yield trades one basis point lower at 2.41%.

On the data front, the weekly MBA Mortgage Applications Index, which was released earlier this morning, decreased 2.7% to follow last week's 3.1% uptick.

In addition, investors will receive January FHFA Housing Price Index at 9:00 ET and February Existing Home Sales (Briefing.com consensus 5.54 million) at 10:00 ET.

In U.S. corporate news:

• Nike (NKE 54.95, -2.99): -5.2% after disappointing worldwide futures orders overshadowed better than expected earnings.
• FedEx (FDX 195.50, +3.66): +1.9% despite missing earnings per share estimates. However, the company did reaffirm earnings guidance for 2017.
• Winnebago (WGO 29.25, +1.45): +5.2% after reporting better than expected top and bottom lines.

Reviewing overnight developments:

• Equity indices in the Asia-Pacific region ended the midweek session on a broadly lower note, taking a cue from Tuesday's slide on Wall Street. Japan's Nikkei -2.1%, Hong Kong's Hang Seng -1.1%, China's Shanghai Composite -0.5%, India's Sensex -1.1%.
  • In economic data:
    • Japan's All Industries Activity Index +0.1% month-over-month, as expected (last -0.2%). February trade surplus expanded to JPY680 billion from JPY200 billion (expected surplus of JPY550 billion). February Imports +1.2% year-over-year (consensus 0.6%; last 8.5%); +11.3% year-over-year (expected 10.6%; last 1.3%)
    • Australia's MI Leading Index -0.1% month-over-month (last 0.0%)
  • In news:
    • An op-ed in the Chinese press discussed the possibility of an economic slowdown in the second half of the year. The op-ed argued that the Chinese government should step in to stabilize growth.

• Major European indices trade lower across the board, but losses have been contained to no more than 1.0% so far. France's CAC -0.4%, Germany's DAX -0.5%, UK's FTSE -0.9%.
  • In economic data:
    • Eurozone January Current Account surplus EUR24.10 billion (expected surplus of EUR29.30 billion; prior surplus of EUR30.80 billion
  • In news:
    • ING Groep has slipped 4.9% amid reports the company is being investigated by Dutch authorities for money laundering.
    • Yesterday afternoon, French presidential candidate Emmanuel Macron said, in a tweet, «I refuse a multi-speed approach on European values: if you are part of the EU to access the single market, you have to respect our values.» This puts Mr. Macron on a collision course with German Chancellor Angela Merkel, who has spoken in favor of adopting a two-speed approach to European integration. Keep in mind that Ms. Merkel will stand for re-election later this year.

 On The Wires

• Valeant's (VRX) Bausch + Lomb announced through its Canadian affiliate the availability in Canada of BEPREVE (bepotastine besilate ophthalmic solution) 1.5%w/v, an innovative fast acting eye drop indicated for the treatment of itch associated with allergic conjunctivitis.
• Axon, a business unit of TASER International (TASR) and the global leader in connected apps and devices for law enforcement, today announced multiple large orders of its body-worn video cameras and digital evidence management solution, Evidence.com. These orders were received in the first quarter of 2017 and will ship in phased deployments beginning the first quarter of 2017.

 European Research Calls

Upgrades: 

• Vallourec SA (VLOWY) upgraded to Buy from Neutral at Goldman

Downgrades: 

• Standard Life (SLFPF) downgraded to Hold from Buy at Panmure
• Schroders plc (SHNWF) downgraded to Sector Perform from Outperform at RBC Capital Mkts
• John Wood Group plc (WDGJF) downgraded to Underperform from Hold at Jefferies

Miscellaneous: 

• None of note

 Uni-Pixel enters into a long-term agreement w/ a 'major U.S.-based PC maker' to supply XTouch touch screen sensors on a multiple year basis  (0.76)

 

 

 

 

 

 

 S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: +2.40.

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

WTI crude trades at its worst level in over three months, down 1.3% at $47.63/bbl, after last night's API reading showed a larger than expected build of 4.5 million barrels (consensus +2.8 million). Record high U.S. inventories have watered down the optimism surrounding OPEC's supply cut agreement as of late, forcing investors to fold on their bullish bets.

The commodity will have an opportunity to redeem itself at 10:30 ET this morning when the EIA releases its weekly crude oil inventory reading. However, if the energy component fails to do so, WTI crude will be in danger of posting its third consecutive loss while the energy sector will be poised to complete its fifth.

Currently, the energy sector sits unchallenged at the bottom of the 2017 leaderboard with a year-to-date loss of 8.5%. For reference, the S&P 500 is up 4.7% for the year.

 Civeo initiated with a Buy at Craig Hallum; tgt $5  (2.63)

 Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

• COE -10.7%, IMMY -7.9%, NKE -5.5%, PERY -3.2%, QIWI -0.9%, SCS -0.6%

Select financial related names showing weakness:

• ING -4.7% (media outlets run headlines tied to last week's annual report in which the company revealed that 'ING Bank is the subject of criminal investigations by Dutch authorities regarding various requirements related to the on-boarding of clients, money laundering and corrupt practices')
• LYG -1.7%, BCS -1.5%, RBS -1.5%, PUK -1.4%, CS -1.1%, BAC -0.9%, HSBC -0.7%, JPM -0.7%

Select oil/gas related names showing early weakness:

• SDRL -2.9%, RIG -1.3%, MRO -1.3%, APC -1.2%, STO -1.2%, CHK -0.7%, .

Other news:

• SHLD -17.6% (discloses in 10-K that its operating results indicate substantial doubt exists related to the Company's ability to continue as a going concern)
• IMMY -7.9% (entered into agreements with two accredited investors for a registered direct placement of 1,312,000 shares of common stock at a price of $2.40 per share), RGNX -6.1% (prices offering of 3.7 mln shares of common stock at $20.50 per share)
• ADAP -4% (Adaptimmune Therapeutics to offer and sell ADSs in underwritten public offering)
• DEA -2.4% (prices 4.3 mln common stock offering, all offered in connection with the forward sales agreements, at $19.00/share)
• WLL -1.9% (Moody's upgrades Whiting's CFR to B2, Positive Outlook)
• CALA -0.5% (offering of 6,830,000 shares of its common stock priced at $10.25/share)

Analyst comments:

• FTR -7.6% (downgraded to Sell from Neutral at Goldman)
• AAL -1.9% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
• TDG -1.9% (downgraded to Market Perform from Outperform at Cowen)

 

 NIKE: Color on Quarter  (58.01)

• Wedbush notes NKE reported mixed results with headwinds in North America (NA) and f/x still pressuring sales and margins. They still believe futures are an important directional indicator to the story and these declined 1% currency neutral (CN) or -4% reported. While the company is making progress on accelerating its innovation pipeline and engagement with consumers, this is more than offset in the medium-term by weakness in other areas of the business and the retail backdrop in NA (reflective of the 9% futures decline in the region). They still contend that other brands continue to be in the sweet spot of what consumers currently demand, particularly on a wholesale level, and they don't see that changing in the near future.
• Stifel cuts tgt to $66 from $68. FY3Q results highlight Nike's global diversification and financial flexibility and the FY18 outlook points to largely sound fundamentals with revenue growth in all regions, operating margin expansion, and constant currency EPS growth in line with long-run objectives (mid-teens). Unfortunately, North America remains a challenge and FX pressures to earnings are projected to stiffen in FY18, masking expectations for constant currency progress in reported EPS. Their FY18 and FY19 estimates come in though they continue to view Nike as well-positioned to succeed long-term, and look beyond FX pressures in FY18 to FY19 earnings power as a basis for valuation.
• TAG ntoes Nike's report was mixed. The quarter itself was fine with an in line sales result, while a weaker-than-expected gross margin was more than offset by well-managed SG&A. However, futures came in a little light (due in part to some timing-related issues for China futures) and the co noted that the promotional environment in North America is worse than they expected it to be relative to 90 days ago. In addition, F/X sounds like it will be a greater headwind in FY18. However, there are also several positives here that show that their thesis is playing out: 1) better results in basketball (Nike cited market share gains vs. losses LY); 2) actual results outpacing last quarter's futures by ~500 bps, up from ~100 bps last quarter; 3) progress in North America (CC sales accelerated on a two-year basis, margins were higher, and inventory was down 8%); and 4) a strong plan dubbed the «triple-double,» that will essentially 2x innovation, speed, and direct. While the path continues to be choppy, they believe Nike is gaining traction and heading in the right direction, which should drive better operating results and stock price performance.
• FBR & Co likes Nike's innovation pipeline, int'l runway, and LT margin catalysts, but they remain on the sidelines and look for improved rev growth, margin execution, and lower inventory growth.
• NKE -5.7% just under $55 premarket.

 

 Existing Home Sales Preview

Existing home sales have been solid, yet high prices and limited inventory have stood in the way of a more robust recovery in the housing market. Higher mortgage rates could now be another obstacle with which to contend. On Wednesday market participants will see how each of those factors worked to shape the pace of existing home sales in February.

According to the Briefing.com consensus estimate, existing home sales in February are expected to slip 2.6% month-over-month to a seasonally adjusted annual rate of 5.54 million. The January sales pace of 5.69 million was the strongest pace of sales since February 2007.

This is an important piece of economic data because:

• Existing home sales account for roughly 90% of all home sales
• This report provides important insight on the health of the housing market by way of the information it provides on first-time buyers, inventory levels, median home prices, and regional sales activity
• Real estate broker sales commissions factor into GDP computations
• Market participants are interested to see if demand remains solid in the face of rising mortgage rates and rising home prices

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

 S&P futures vs fair value: flat. Nasdaq futures vs fair value: +1.40.

The S&P 500 futures trade in line with fair value.

Equity indices in the Asia-Pacific region ended the midweek session on a broadly lower note, taking a cue from Tuesday's slide on Wall Street. Japan's Nikkei (-2.1%) paced the decline as the yen extended yesterday's advance. Overnight yen strength has pressured the dollar/yen pair to a new low for the year in the 111.15 area. Elsewhere, an op-ed in the Chinese press discussed the possibility of an economic slowdown in the second half of the year. The op-ed argued that the Chinese government should step in to stabilize growth.

• In economic data:
  • Japan's All Industries Activity Index +0.1% month-over-month, as expected (last -0.2%). February trade surplus expanded to JPY680 billion from JPY200 billion (expected surplus of JPY550 billion). February Imports +1.2% year-over-year (consensus 0.6%; last 8.5%); +11.3% year-over-year (expected 10.6%; last 1.3%)
  • Australia's MI Leading Index -0.1% month-over-month (last 0.0%)

---Equity Markets---

• Japan's Nikkei lost 2.1% amid weakness in most components. Financials were among the laggards with T&D Holdings, Dai-ichi Life Insurance, MS&AD Insurance Group, Sony Financial Holdings, Nomura Holdings, and Mitsubishi UFJ surrendered between 4.3% and 7.2%.
• Hong Kong's Hang Seng fell 1.1%, returning to levels from the end of last week. Hengan International Group, China Life Insurance, Ping An Insurance, Bank of China, and ICBC posted losses between 1.9% and 4.5%. Geely Automobile outperformed, surging 5.8%.
• China's Shanghai Composite ended lower by 0.5%. Shanghai Bailian Group, Shandong Pharmaceutical Glass, Fangda Special Steel Technology, Xinyu Iron & Steel, and Kangxin New Materials posted losses between 3.3% and 3.8%.
• India's Sensex registered its third consecutive loss, falling 1.1%. Bharti Airtel led the decline with a 3.2% slide. Tata Motors, ITC, Bajaj Auto, Mahindra&Mahindra, Tata Steel, and Maruti Suzuki settled with losses between 1.1% and 2.8%.

Major European indices trade lower across the board, but losses have been contained to no more than 1.0% so far. The Euro Stoxx 50 index is down 0.2%. ING Groep is the weakest component, falling 4.9% amid reports the company is being investigated by Dutch authorities for money laundering. Yesterday afternoon, French presidential candidate Emmanuel Macron said, in a tweet, «I refuse a multi-speed approach on European values: if you are part of the EU to access the single market, you have to respect our values.» This puts Mr. Macron on a collision course with German Chancellor Angela Merkel, who has spoken in favor of adopting a two-speed approach to European integration. Keep in mind that Ms. Merkel will stand for re-election later this year.

• In economic data:
  • Eurozone January Current Account surplus EUR24.10 billion (expected surplus of EUR29.30 billion; prior surplus of EUR30.80 billion

---Equity Markets---

• France's CAC is down 0.4% with ArcelorMittal falling 1.8% to lead the retreat. Financials have not done much better, as AXA, Societe Generale, Credit Agricole, and BNP Paribas show losses between 0.9% and 1.6%. On the upside, L'Oreal is up 0.7% while Pernod Ricard trades higher by 0.5%.
• Germany's DAX has given up 0.5%. Lufthansa and ThyssenKrupp are down 1.0% and 1.4%, respectively, while financials Commerzbank and Deutsche Bank show losses close to 1.0% apiece. Exporters BMW and Daimler hold respective losses of 0.7% and 0.6% while Volkswagen has added 0.8%.
• UK's FTSE is lower by 0.8%. Kingfisher has plunged 5.7% in reaction to disappointing results and news that its Chairman will step down. Financials also trade notably lower with Standard Chartered, Barclays, RBS, Prudential, Standard Life, and Lloyds Banking down between 1.8% and 2.6%. Miners like Fresnillo, Randgold Resources, and Antofagasta outperform with gains between 0.4% and 1.2%.

 FedE: Color on Qtr  (191.84)

• Stifel Research raising tgt to $194 from $189, Maintains Hold. FedEx reported F3Q17 EPS of $2.35, short of estimate and the Street consensus estimate of $2.62. The company cited a significant negative net impact of fuel as the primary reason for the shortfall. But more importantly, in our view, in its Outlook section, management said it is targeting $1.2bn-$1.5bn in operating profit improvement (~$2.90-$3.60 in EPS) at FedEx Express from FY17-FY20 due largely to TNT synergies but also to its aircraft fleet replacement program, continued economic growth, yield management (better pricing), and other factors. The tone of the call was upbeat and positive, as we are now in a quarter the company believes should exceed current expectations. The stock should move higher from here, in firm's view, on the strong Express margin targets, but firm remain Hold-rated, as the next several years are far from certain.
• Cowen and Company reiterate Buy and $240 tgt. FedEx reported what can only be described as disappointing 3FQ17 results, falling short of expectations and the consensus estimates. Firm believes this is the last difficult y/y comparison, and current quarter results should show significant y/y and sequential improvement. Management forecasts a significant sequential quarter improvement in the May quarter vs the February quarter. The company continues to integrate TNT operations into FDX, and expects it to take another three years to fully merge the two companies. One interesting comment made by management about the outlook for the 2017 calendar year peak was that they are raising prices and backing away from some customers where they are not as profitable as they should be.

Shares of FDX are up approx 2.5% in pre-market trade.

 Filings, Offerings and Pricings

Filings:

• Aeterna Zentaris (AEZS) files for $50 mln common share offering
• Aralez Pharma (ARLZ) files to withdraw Registration Statement on Form S-1 (on Form S-3 as amended)
• Checkpoint Therapeutics (CKPT) files for $50 mln offering of common stock
• Daseke (DSKE) files for mixed securities offering
• First Mid-Illinois Bancshares (FMBH) files for $60 mln mixed securities shelf offering
• Pennant Investment (PNNT) files for $750 mln mixed securities shelf offering
• Taylor Morrison Home (TMHC) files for mixed securities shelf offering; size not disclosed

Offerings:

• Adaptimmune Therapeutics (ADAP) to offer and sell ADSs in underwritten public offering
• Taylor Morrison Home (TMHC) commences an underwritten public offering of 10 mln shares of its Class A common stock
• Vital Therapies (VTL) to offer to sell shares of its common stock in an underwritten public offering; size not disclosed

Pricings:

• Calithera Biosciences (CALA 10.55) prices 6.83 mln common stock offering at $10.25/share
• Easterly Government Properties (DEA 19.73) prices 4.3 mln common stock offering, all offered in connection with the forward sales agreements, at $19.00/share
• Imprimis Pharma (IMMY 2.42) entered into agreements with two accredited investors for a registered direct placement of 1,312,000 shares of common stock at a price of $2.40 per share
• REGENXBIO (RGNX 22.10) prices offering of 3.7 mln shares of common stock at $20.50 per share