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
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 canserve to ease its regulatory burdens: Link
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
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
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
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.
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.
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.
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
Ascendis Pharma A/S (ASND) Reports Q1 EPS $(0.87) vs $(0.82), Sales $415.99K vs $1.53M Est.
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.
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)
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
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
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.
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.
Analysts at Credit Suisse upgraded United States Steel CorporationX from Neutral to Outperform.
United States Steel shares rose 3.29 percent to $21.05 in pre-market trading.
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.
The markets traded higher for the 3rd day in a row, as the “buy the dip” crowd kept chipping away at
the markets big losses from last Wednesday. The Indexes closed yesterday, within throwing distance of last
weeks highs at DOW 21,000, S&P 2400 and NASDAQ 6160, all pretty much on its own merits of strong 1st
Qtr earnings and improving outlooks going forward. If the markets traded in a vacuum, I would say that
the averages were “locked and loaded” and very ready to explode higher across the board, just like they
were last Tuesday, right before that business with the President, maybe, but not likely, asking or not asking,
Ex-FBI Chief Comey, to back off on the Mikey Flynn investigation, because he was a “good guy”.
Anyway, the markets don’t trade in a vacuum and this morning, Investors are faced with another terror
abomination, a bombing of a Concert in Manchester U.K.. So far the markets are shrugging off the horrible
news, but with the averages near last week’s highs, I wonder if there’s enough fuel to push the averages through to new highs, especially with the attack in the U.K. and front of the 3-day Memorial Day weekend.
This morning, the Trump Administration released its 2017 Budget and judging from various Politico’s reaction
to the news, this Budget as is, will be DOA in the Congress. Also on the slate today, we will hear CIA Director John Brennan’s testimony, on the CIA’s Russia Investigation at 10:00am and there’s always the possibility of a
surprise, which could affect the day’s trading, one way or another.
Overnight the Global markets were quietly mixed and in early trading the DOW is up 40pts, the Yield on the
10 Yr is 2.25%, the Dollar is flat and Commodities are slightly lower.
Today we have the flash PMI Services and Manufacturing estimates for May out at 9:45am, followed by the
April New Home Sales at 10:00am, but none of this will move the markets, but tomorrows FOMC Minutes will.
I am working from 80 Broad and can be reached at 212 -417-8062
Jay Pelosky, the founder of Pelosky Global Strategies, highlighted something about the stock market’s 2017 performance that may be flying under the radar: It isn’t as great as it seems.
Speaking as a guest on “Bloomberg Daybreak: Americas” on Monday, Pelosky explained that the developed markets excluding the U.S. have seen their stock markets gain 15 percent since the start of 2017, which is even short of the 18-percent return emerging markets have shown. Meanwhile, the S&P 500 index is up just 6 percent — at time of publication, the SPDR S&P 500 ETF TrustSPY was up 7.15 percent year to date.
“The real question is not why has the S&P 500 held up so well, the real question is: Is the rest of the world starting to take the leadership baton away from U.S. equities?” Pelosky asked. “And that’s a big deal because these moves tend to last for years — not quarters, not months.”
Pelosky isn’t necessary optimistic that U.S. markets can regain its leadership position as a home for stock market outperformance, especially under the current political climate, which he dubbed “Trump troubles.”
Pelosky believes the current “Trump troubles” will first lead to “policy inertia,” which then leads to weak growth. As such, earnings strength will shift from one of the best in years to questionable at best and ultimately present a poor risk-to-reward profile for U.S. equities.
Pelosky continued that a poor risk to reward profile for U.S. equities could further emphasize America’s status as a market laggard, not a market outperformer.
Terrorism struck yet again in the United Kingdom. Two months after a terrorist drove a car into pedestrians on the iconic Westminster Bridge in London, authorities are saying a suicide bomber blew himself up at the conclusion of an Ariana Grande concert in Manchester.
22 Dead, 59 Injured, 13 Missing
According to the UK-based Telegraph, children are among the 22 people killed and 59 injured. The publication noted that the first confirmed fatality was an 18-year old Ariana Grande “superfan” who met the pop star in 2015.
Another 13 people remained missing when Telegraph’s report was published.
British Prime Minister Theresa May confirmed the terrorist nature of the attack and said, “All acts of terrorism are cowardly attacks on innocent people, but this attack stands out for its appalling, sickening cowardice — deliberately targeting innocent defenceless children and young people who should have been enjoying one of the most memorable nights of their lives.”
Monday’s attack marks the country’s worst terror attack since multiple bombs across central London killed 52 people.
ISIS To Blame?
Authorities have yet to confirm the identify the suicide bomber and any possible links to terrorist groups, including ISIS. But what is known is that the terrorist was not acting alone as a 23-year old man was arrested in South Manchester in connection with the bombing. According to a Times report at 8:09 a.m. ET, ISIS has claimed responsibility for the atrocity.
Members of the Organization of the Petroleum Exporting Countries and other oil producers are set to meet this Thursday to discuss extending output cuts. The current cuts, an output reduction of 1.8 million barrels per day for six months, were decided in November and implemented on January 1.
The cuts are expected to be extended by nine months under the urging of the Saudi Arabia and Russia, the world’s top two oil producers.
Early in the week, oil prices were up in anticipation of the meeting, in addition to oil stocks, including Exxon Mobil CorporationXOM and BP plc (ADR)BP.
On Monday, share prices took a dive, though, after the news that Iraq was resistant to longer extensions, but returned to pre-market levels when Saudi energy minister, Khalid al-Falih, flew to Iraq to gain its support for a nine-month extension.
A Brief Look Back
Volatile trades are to be expected in the coming week, but investors should be cautious of placing too much stock in any sharp movements in the near term.
Looking back at the week before and after the past five OPEC meetings, there doesn’t seem to be any trend in share price movement in the short term.
The weeks surrounding OPEC’s 167th meeting on June 5, 2015, and 169th meeting on June 2, 2016, highlight the vast different movements that can occur:
The 167th meeting was preceded by a near linear drop in prices among top U.S. exchange-traded oil stocks.
The 169th meeting was preceded by a drop in prices, which returned to their starting value just before the meeting. The following week saw a rise in prices, which within another week had lost any gains made.
After both meetings, oil shares saw large price shifts in the longer term — the six months following each meeting — bouncing between highs and lows differing by over 15 percent.
What To Keep In Mind
The OPEC meeting last December had a distinctly noticeable impact on prices due to organization’s decision to implement a production cut for the first time since 2008.
Investors should be wary of speculating based on past meetings; the only evident trend in their effect on oil share prices is that there is no trend.
Investors should also note that OPEC’s effect on prices is ultimately determined by its members’ willingness to abide by its decisions, and they should pay attention in the long run to see if the petroleum exporting countries stick to their obligations.