Economic Data Scheduled For Friday

  • The flash Composite Purchasing Managers’ Index for June will be released at 9:45 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.

$PRED $WEYL $ORGS $BPHM $SLTK stocks news

 $PRED expect big week  2.75  support  2.90
bo tgr 4 to 6 end of Jan  July tgt 20 plus
$WEYL  expect strength mid week foreign buyers
$ORGS NAADEQ BY WED?  10 TO 12 by Jan end could be by this week.
$BPHM  accumulate for big move starting
i think within 2 weeks.
$SLTK NEW INVESTOR RELATIONS SHOULD HELP LIFT OVER
 2 BY JAN END THIS CANNABIS RELATED
COMPANY TGT 5 BY SEPT
see disclaimer on $PRED and $WEYL under special stocks situations.

The Market In 5 Minutes 5/24/2017

  • It may be disappointing, but the “Red Dead Redemption 2” delay is nothing unusual in the video game industry, especially for Take-Two (TTWO)’s Rockstar Games:
  • The new partnership between Alphabet Inc (GOOG) (GOOGL)’s Waymo autonomous vehicle technology unit and ride-hailing company Lyft may have given birth to a legitimate Tesla Inc (TSLA) competitor:
  • Following Rep. Ro Khanna (D–CA)’s letter to the Department of Defense dated March 17, urging additional scrutiny on TransDigm Group Incorporated (TDG)’s contracting process, Height Securities said Congressional support for review may be growing:
  • The poor, the elderly, the disabled, college students and environmental protections all stand to take a big hit if Congress approves President Donald Trump’s $4.1 trillion budget for fiscal year 2018. Defense contractors, corporations in general and the wealthiest Americans all stand to gain: Link
  • Steel stocks were up big on Tuesday ahead of the Department of Commerce hearing on the Section 232 probe. The DoC is set to come out with more details regarding the impact steel imports has on U.S. national security: Link

THE WALL STREET JOURNAL

  • President Donald Trump faced swift resistance from Democrats and a range of Republicans on Capitol Hill on Tuesday after offering a 10-year plan to balance the federal budget that depends heavily on cuts to government safety-net programs and expectations of a big gain in economic growth: Link
  • Anthony Levandowski, the former Google (GOOG) (GOOGL) engineer at the center of a battle between the tech giant and Uber Technologies Inc., was never a typical employee. And for years, Google was fine with that: Link
  • Moody’s Investors Service cut China’s sovereign credit rating for the first time in nearly three decades, citing expectations that the country’s financial strength will deteriorate in the coming years as debt keeps rising and the economy slows: Link
  • Saudi Arabia is pushing the OPEC oil cartel and other big producers gathered here this week to extend crude production cuts for another nine months. The reason: the timing of the blockbuster IPO of Saudi Arabian Oil Co., people familiar with the matter said: Link

REUTERS

  • The Financial Stability Oversight Council (FSOC), which brings together all U.S. financial watchdogs, used to be the scourge of Wall Street but under Treasury Secretary Steven Mnuchin it can serve to ease its regulatory burdensLink
  • General Electric (GE) signed a one billion riyal ($267 million) joint venture agreement on Wednesday with Saudi Arabia’s state-backed Dussur industrial development company to manufacture gas turbines in the eastern city of Dammam:Link
  • Uber Technologies Inc said on Tuesday it underpaid its New York City drivers for the past two-and-a-half years, an error that could cost the ride-hailing company tens of millions of dollars: Link

    BLOOMBERG

  • With a flagship treatment that helps fewer than 11,000 people, how isAlexion (ALXN) making so much money?Link
  • Morgan Stanley (MS) said it will cut back on using recruitment bonuses to poach established financial advisers as a new rule throws the industry’s traditional hiring practices into doubt: Link
  • SoftBank Group Corp. has quietly amassed a $4 billion stake in Nvidia Corp. (NVDA) making it the fourth-largest shareholder in the graphics chipmaker, according to people familiar with the situation: Link
  • AutoZone Inc. (AZO) reported profit and sales that missed analyst estimates as the seller of car replacement parts joined a chorus of retailers saying U.S. tax refund delays squelched demand early this year: Link

NY POST

  • Target (TGT) has agreed to pay $18.5 million to settle a multi-state investigation into its colossal data breach in 2013 that affected 70 million shoppers, authorities announced Tuesday: Link

CONSUMER

Lowe’s (LOW) Reports Q1 Adj. EPS $1.03 vs $1.06 Est., Sales $16.9B vs $16.96B Est.
The Container Store (TCS) Reports Q4 EPS $0.17 vs $0.09 Est., Sales $221M vs $214.7M Est.
Universal Corp. (UVV) Reports Q4 Adj. EPS $1.28 vs $0.84 in Same Qtr. Last Year, Sales $650M
Tiffany’s (TIF) Reports Q1 EPS $0.74 vs $0.70 Est., Sales $900M vs $913M Est.
Tilly’s (TLYS) Reports Q1 EPS $(0.01) vs $(0.10) in Same Qtr. Last Year, Sales $120.9M vs $114.4M Est.
Advance Auto Parts (AAP) Reports Q1 Adj. EPS $1.60 vs $2.18 Est., Sales $2.89B vs $2.95B Est.
HEICO (HEI) Reports Q2 EPS $0.53 vs $0.50 Est., Sales $368.7M vs $369.46M Est.

ENERGY

Bristow Group (BRS) Reports Q4 Adj. EPS $(1.15) vs $(0.48) Est., Sales $323.651M vs $326.16M Est.

REX American Resources (REX) Reports Q1 EPS $0.69 vs $0.43 in Same Qtr. Last Year, Sales $113.143M vs $121M Est.

JA Solar (JASO) Reports Q1 EPADS $0.03 vs $(0.02) Est., Sales $536.4M vs $490.8M Est.

INDUSTRIALS

Triumph Group (TGI) Reports Q4 EPS $1.32 vs $1.40 Est., Sales $919M vs $924M Est.
Dycom (DY) Reports Q3 Adj. EPS $1.30 vs $1.19 Est., Sales $786M vs $736M Est.

FINANCIALS

BMO Financial (BMO) Reports Q2 Adj. EPS $1.92 vs $1.43 Est., Sales C$5.74B vs C$5.10B In Prior Year Period

HEALTHCARE

Ascendis Pharma A/S (ASND) Reports Q1 EPS $(0.87) vs $(0.82), Sales $415.99K vs $1.53M Est.

TECHNOLOGY

Intuit (INTU) Reports Q3 Adj. EPS $3.90 vs $3.87 Est., Sales $2.541B vs $2.5B Est.
ViaSat (VSAT) Reports Q4 Adj. EPS $0.32 vs $0.28 Est., Sales $416.4M vs $400.86M Est.
Ooma (OOMA) Reports Q1 Adj. EPS $(0.02) vs $(0.03) Est., Sales $27.6M vs $28.1M Est.

ECONOMIC FIGURES

07:00 a.m. MBA Mortgage Applications (WoW)

07:00 a.m. MBA Purchase Index

07:00 a.m. MBA 30-Year Mortgage Rate

07:00 a.m. MBA Mortgage Market Index

07:00 a.m. MBA Mortgage Refinance Index

09:00 a.m. House Price Index

09:00 a.m. FHFA House Price Index (MoM)

09:00 a.m. FHFA House Price Index (YoY)

10:00 a.m. Existing Home Sales (MoM)

10:00 a.m. Existing Home Sales

10:30 a.m. EIA Distillate Output

10:30 a.m. EIA Distillate Inventories

10:30 a.m. EIA Heating Oil Inventories

10:30 a.m. EIA Gasoline Output/Production

10:30 a.m. EIA Cushing Inventories

10:30 a.m. EIA Crude Oil Inventories

10:30 a.m. EIA Gasoline Inventories

10:30 a.m. EIA Crude Imports

1:00 p.m. 5-Year Note Auction

2:00 p.m. FOMC Meeting Minutes

6:00 p.m. FOMC Member Kaplan Speaks

6:30 p.m. FOMC Member Kashkari Speaks

Analyst & Shareholder Meetings

  • 8:30 a.m. DSW (DSW)
  • 9:30 a.m. McDonald’s (MCD)
  • 10:00 a.m. Lumber Liquidators (LL)
  • 10:00 a.m. Fossil Group (FOSL)
  • 10:00 a.m. HSN, Inc. (HSNI)
  • 10:30 a.m. Sabre Corp. (SABR)
  • 11:00 a.m. Century Link (CTL)
  • 11:00 a.m. Hilton (HLT)
  • 11:00 a.m. PayPal (PYPL
  • 12:00 p.m. E.L.F. Beauty (ELF)
  • 12:00 p.m. Papa Murhpy’s (FRSH)
  • 12:00 p.m. Shutterfly (SFLY)
  • 1:00 p.m. Tupperware Brands (TUP)

UPGRADES

  • Credit Suisse Upgraded U.S. Steel (X) from Neutral to Outperform
  • Wells Fargo Upgraded NovoCure (NVCR) from Market Perform to Outperform
  • Evercore ISI Upgrades Diana Shipping (DSX) From Underperform to In-Line

DOWNGRADES

  • Goldman Sachs Downgraded Zions Bancorp (ZION) from Buy to Neutral
  • Credit Suisse Downgraded Ooma (OOMA) from Outperform to Neutral
  • Citi Downgrades Brown Forman (BF/B) From Buy to Neutral

Deal Talk

  • Bunge Limited (NYSE:BG) stated that it is not engaged in business combination discussions with Glencore Agriculture Limited or Glencore plc. This comes following a report by the Wall Street Journal saying the deal would give the Swiss miner a U.S. agriculture presence.
  • CF Corporation (CFCO) to Acquire Fidelity & Guaranty (FGL) for $31.10/Share or total of ~$1.835B with assumption of $405M of debt.

A Peek Into The Markets: U.S. Stock Futures Flat; Fed Minutes In Focus

Pre-open movers

U.S. stock futures traded mostly flat in early pre-market trade. The FHFA house price index for March will be released at 9:00 a.m. ET, while data on existing home sales for April will be released at 10:00 a.m. ET. The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET. Dallas Federal Reserve Bank President Robert Kaplan is set to speak in Toronto at 6:00 p.m. ET, while Minneapolis Federal Reserve Bank President Neel Kashkari will speak in Ashland, Wisconsin at 6:30 p.m. ET.

Futures for the Dow Jones Industrial Average gained 2 points to 20,917, while the Standard & Poor’s 500 index futures fell 0.50 points to 2,397.50. Futures for the Nasdaq 100 index gained 5.75 points to 5,717.25.

Oil prices traded higher as Brent crude futures rose 0.18 percent to trade at $54.25 per barrel, while US WTI crude futures gained 0.02 percent to trade at $51.48 a barrel. The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is schedule for release at 10:30 a.m. ET.

A Peek Into Global Markets

European markets were mostly lower today, with the Spanish Ibex Index falling 0.14 percent, STOXX Europe 600 Index rising 0.04 percent and German DAX 30 index dropping 0.14 percent. The UK’s FTSE index was trading higher by 0.28 percent, while French CAC 40 Index declined 0.13 percent.

In Asian markets, Japan’s Nikkei Stock Average rose 0.66 percent, Hong Kong’s Hang Seng Index rose 0.10 percent, China’s Shanghai Composite Index gained 0.07 percent and India’s BSE Sensex fell 0.21 percent.

Broker Recommendation

Analysts at Credit Suisse upgraded United States Steel Corporation X from Neutral to Outperform.

United States Steel shares rose 3.29 percent to $21.05 in pre-market trading.

Breaking news

  • Tiffany & Co. TIF reported better-than-expected earnings for its first quarter, but sales missed estimates. Comparable store sales dropped 3 percent during the quarter.
  • Intuit Inc. INTU reported stronger-than-expected results for its third quarter and raised its FY17 outlook.
  • Lowe’s Companies, Inc. LOW posted weaker-than-expected results for its first quarter.
  • Advance Auto Parts, Inc. AAP posted downbeat earnings for its first quarter on Wednesday.

Watch These 10 Huge Call Purchases In Wednesday Trade

These trades were placed during Tuesday’s regular session.

  • CIT Group Inc. CIT Jun 60.0 Calls: 1750 @ ASK $0.02: 36k traded vs 33k OI: Earnings 7/27 Before Open (est) $47.51 Ref
  • Lowe’s Companies, Inc. LOW Jun 84.0 Calls: 500 @ ASK $2.22: 11k traded vs 256 OI: Earnings Today Before Open $83.38 Ref
  • AK Steel Holding Corporation AKS Jun 6.5 Calls Sweep: 3358 @ ASK $0.11: 5195 traded vs 20 OI: Earnings 7/25 Before Open (est) $5.83 Ref
  • Northern Dynasty Minerals Ltd NAK Aug 2.0 Calls Sweep: 2076 @ BID $0.25: vs 14k OI: Earnings 5/11 After Close [est] $2.00 Ref
  • Target Corporation TGT Jul 57.5 Calls: 2500 @ ASK $0.81: 2641 traded vs 19k OI: Earnings 8/16 Before Open $55.04 Ref
  • Dynegy Inc. DYN Jul 7.5 Calls Sweep: 636 @ ASK $1.60: 1103 traded vs 0 OI: Earnings 8/3 After Close (est) $8.25 Ref
  • Dow Chemical Co DOW Jun 62.5 Calls: 1000 @ ASK $0.58: 1086 traded vs 9603 OI: Earnings 7/27 Before Open $60.90 Ref
  • Time Inc TIME Jan18 15.0 Calls Sweep: 569 @ ASK $0.45: 1074 traded vs 0 OI: Earnings 8/3 Before Open (est) $11.97 Ref
  • GoPro Inc GPRO Jul 10.0 Calls Sweep: 500 @ ASK $0.20: 504 traded vs 8422 OI: Earnings 7/26 After Close (est) $8.60 Ref
  • American International Group Inc AIG Jun 65.0 Calls Sweep: 1000 @ ASK $0.09: 1073 traded vs 9656 OI: Earnings 8/2 After Close (est) $62.23 Ref

A Peek Into The Markets: U.S. Stock Futures Gain Ahead Of Economic Reports

U.S. stock futures traded higher in early pre-market trade. The flash Composite PMI for May will be released at 9:45 a.m. ET, while data on new home sales for April will be released at 10:00 a.m. ET. Minneapolis Federal Reserve Bank President Neel Kashkari is set to speak in Minneapolis at 3:15 p.m. ET, while Philadelphia Federal Reserve Bank President Patrick Harker will speak in New York at 5:00 p.m. ET.

Futures for the Dow Jones Industrial Average climbed 39 points to 20,917.00, while the Standard & Poor’s 500 index futures rose 2.75 points to 2,395.50. Futures for the Nasdaq 100 index gained 8.75 points to 5,710.75.

Oil prices traded higher as Brent crude futures fell 0.71 percent to trade at $53.49 per barrel, while US WTI crude futures gained 0.95 percent to trade at $53.49 a barrel.

A Peek Into Global Markets

European markets were higher today, with the Spanish Ibex Index gaining 0.98 percent, STOXX Europe 600 Index rising 0.21 percent and German DAX 30 index gaining 0.48 percent. The UK’s FTSE index was trading higher by 0.18 percent, while French CAC 40 Index climbed 0.72 percent.

In Asian markets, Japan’s Nikkei Stock Average fell 0.33 percent, Hong Kong’s Hang Seng Index rose 0.05 percent, China’s Shanghai Composite Index declined 0.45 percent and India’s BSE Sensex fell 0.67 percent.

Broker Recommendation

Analysts at JP Morgan upgraded McKesson Corporation MCK from Neutral to Overweight.

McKesson shares rose 1.58 percent to close at $155.42 on Friday.

Breaking news

  • Toll Brothers Inc TOL reported better-than-expected results for its second quarter.
  • Agilent Technologies Inc A reported stronger-than-expected earnings for its second quarter on Monday.
  • Kirkland’s, Inc. KIRK posted a wider-than-expected loss for its first quarter.
  • AutoZone, Inc. AZO posted weaker-than-expected earnings for its third quarter on Tuesday.

Todd Gordon’s Tesla Hedge

Todd Gordon spoke on CNBC’s “Trading Nation” about Tesla Inc TSLA. He has a long position in the name and he’s concerned it could trade lower.

Gordon wants to hedge his long-term position by purchasing the June 2, 305/295 put spread for $3.05. The trade breaks even at $301.95 or 2.71 percent below the current market price. It can make a maximal profit of $6.95. Gordon wants to place a stop loss at the half of the value of the premium paid.

Watch These 4 Huge Put Purchases In Tuesday Trade

These trades were placed during Monday’s regular session.

  • Corecivic Inc CXW Sep 27.0 Puts Sweep: 1000 @ ASK $1.45: 1229 traded vs 152 OI: Earnings 8/2 After Close (est) $30.65 Ref
  • Thor Industries, Inc. THO Sep 90.0 Puts Sweep: 726 @ ASK $5.40: 727 traded vs 87 OI: Earnings 6/5 After Close (est) $93.19 Ref
  • AmTrust Financial Services Inc AFSI Jun 10.0 Puts Sweep: 1000 @ ASK $0.30: 1165 traded vs 1166 OI: Earnings 8/2 After Close (est) $11.97 Ref
  • GrubHub Inc GRUB Jun 40.0 Puts Sweep: 670 @ ASK $0.448: 672 traded vs 889 OI: Earnings 7/27 Before Open (est) $43.37 Ref

Watch These 4 Huge Put Purchases In Tuesday Trade

These trades were placed during Monday’s regular session.

  • Corecivic Inc CXW Sep 27.0 Puts Sweep: 1000 @ ASK $1.45: 1229 traded vs 152 OI: Earnings 8/2 After Close (est) $30.65 Ref
  • Thor Industries, Inc. THO Sep 90.0 Puts Sweep: 726 @ ASK $5.40: 727 traded vs 87 OI: Earnings 6/5 After Close (est) $93.19 Ref
  • AmTrust Financial Services Inc AFSI Jun 10.0 Puts Sweep: 1000 @ ASK $0.30: 1165 traded vs 1166 OI: Earnings 8/2 After Close (est) $11.97 Ref
  • GrubHub Inc GRUB Jun 40.0 Puts Sweep: 670 @ ASK $0.448: 672 traded vs 889 OI: Earnings 7/27 Before Open (est) $43.37 Ref

Scott Bauer’s Momo Options Trade

Scott Bauer of Trading Advantage suggested on Bloomberg Markets a bullish options strategy in Momo Inc (ADR) MOMO.

The company is going to report earnings on Tuesday and the options market is anticipating a $5 move in either direction. Bauer thinks that the stock is going higher and he wants to buy the May 46/49 call spread for $0.80. The trade breaks even for $46.80 or 9.27 percent above the current market price. It can maximally make a profit of $2.20.