Morning Preview: May 11, 2018

Scott GreenDaily Market Report

Early Look

Friday, May 11, 18

Stock futures are pointing to another higher open, as major averages look to build on recent gains that has seen stocks move to their best levels in about 2-months. U.S. stocks finished yesterday broadly higher as the Dow Jones Industrial Average recorded its 6th straight advance, its longest win streak in more than two months, led by shares of Apple which posted its 8th straight day of gains. Better-than-expected jobless claims and a slower pace of inflation (weaker CPI data) helped lift major averages, as it boosted expectations the Federal Reserve won’t increase the pace of its monetary policy normalization any time soon. The Nasdaq Composite Index posted its fifth straight day of closing higher, ending up 0.9% at 7,405 while the S&P 500 closed above its 100-day moving average for the first time in over a month. On the calendar today, markets will get updates on import prices and consumer sentiment. In Asian markets, The Nikkei Index surged 261 points to settle at 22,758, the Shanghai Index slipped -11 points to end at 3,163 and the Hang Seng Index jumped 312 points to close at 31,122. In Europe, the German DAX is down roughly -40 points at 12,980, while the FTSE 100 is flat around the 7,700 level (European stocks on track for a 7th straight weekly win). Coming into today, stocks are poised to gain across the board as the Dow Industrials are up 0.8%, the S&P 500 up 2.2% and the Nasdaq up 2.7%. In earnings news overnight, shares of TTD are up over 20% on results, while SYMC falls over 20% on weaker guidance and chip making giant NVDA is down slightly after better results after touching record highs in the previous session.

Market Closing Prices Yesterday

· The S&P 500 Index gained 25.28 points, or 0.94%, to 2,723.07

· The Dow Jones Industrial Average rose 196.99 points, or 0.80%, to 24,739.53

· The Nasdaq Composite spiked 65.07 points, or 0.89%, to 7,404.97

· The Russell 2000 Index advanced 7.66 points, or 0.48% to 1,603.71

Events Calendar for Today

· 8:30 AM EST Import Prices MoM for April…est. 0.5%

· 8:30 AM EST Export Prices MoM for April…est. 0.4%

· 10:00 AM EST University of Michigan Sentiment, May-P…est. 98.3

· 1:00 PM EST Baker Hughes Weekly Rig Count

Sector News Breakdown

Consumer

· MGM Resorts (MGM) announces new $2B share repurchase program

· Pilgrim’s Pride (PPC) Q1 adjusted EPS 53c/$2.75B vs. es.t 53c/$2.65B

· Weight Watchers (WTW) 7.5M share Secondary priced at $69.00

· Blue Bird (BLBD) Q2 EPS 15c/$216.6M vs. est. 20c/$214.88M

· Masonite (DOOR) authorizes up to $250M share repurchase program

· Noodles & Company (NDLS) Q1 EPS loss (4c)/$110.5M vs. est. loss (3c)/$107.77M; sees FY18 EPS (1c)-3c on revs $440M-$450M vs. est. 1c/$448.33M; Q1 comparable restaurant sales decreased 0.2% system-wide, decreased 0.3% for company-owned restaurants

· RCI Hospitality (RICK) Q2 EPS 65c/$41.2M vs. est. 51c/$40.27M; still sees FY18 free cash flow $23M

Energy

· Jagged Peak Energy (JAG) Q1 adjusted EPS 12c/$129.05M vs. est. 10c/$117.75M; Q1 production volumes were 27,596 Boe/d (21,850 Bo/d) up 182% YoY and 15% QoQ; expects Q2 total production to average 31,000 to 32,000 Boe/d; sees FY18 CapEx $560M-$615M

· Teekay Offshore Partners (TOO) announces first oil, contract start-up for Petrojarl I

Financials

· AllianceBernstein L.P. (AB) said preliminary assets under management decreased to $538 billion during April 2018 from $549 billion at the end of March due to firmwide net outflows and market depreciation

· KBR (KBR) 1.7M share Block Trade priced at $16.80

· Virtu Financial (VIRT) 15M share Secondary priced at $28.00

· Manning & Napier (MN) reports preliminary AUM $22.9B as of April 30; compared with $23.4B at March 31, 2018

· Redfin (RDFN) Q1 EPS loss (40c)/$79.9M vs. est. loss (44c)/$77.07M; sees Q2 revenue $134.8M-$139.1M vs. consensus $134.1M

· Synchrony (SYF) announced a definitive agreement to acquire Loop Commerce, a technology leader in digital and in-store gifting services with its patented GiftNow platform and service

· Waddell & Reed Financial, Inc. (WDR) reported preliminary assets under management of $79.2 billion for the month ended April 30, 2018, compared to $80.2 billion on March 31, 2018

· James River Group (JRVR) files to sell 3.3M shares of common stock for holders

Healthcare

· Civitas Solutions (CIVI) Q2 EPS 37c/$392.8M vs. est. 11c/$396.25M; said revenue growth in the quarter was driven by strong volume growth from acquisitions in our I/DD, SRS and ADH service lines, as well as from higher average; sees FY18 revenue $1.58B-$1.61B vs. est. $1.6B

· Intrexon (XON) Q1 EPS loss (33c)/$43.8M vs. est. loss (19c)/$60.43M

· KemPharm (KMPH) announced positive topline results from the first of three pivotal human abuse potential trials for KemPharm’s product candidate, KP415, which is based on a prodrug of d-methylphenidate for the treatment of attention deficit/hyperactivity disorder

· Nektar (NKTR) Q1 EPS loss (60c)/$38.0M vs. est. loss (53c)/$35.6M

· Ziopharm (ZIOP) said it is “pausing plans” for its pivotal randomized control trial for Ad-RTS-hIL-12 plus 20mg dose of veledimex for the treatment of recurrent glioblastoma multiforme. The Company said it is “progressing in resolving previously disclosed technical requirements related to Chemistry and Manufacturing Control, making this asset phase-3 ready for rGBM

Industrials & Materials

· Air Lease (AL) Q1 adjusted EPS $1.38/$381M vs. est. $1.00/$383.37M

· CH Robinson Worldwide (CHRW) boosts stock buyback by added 15M shares

· Flowserve (FLS) Q1 EPS 27c/$920M vs. est. 27c/$880.89M; said delivered strong aftermarket shipments and solid bookings as our core energy markets appear stabilized and positioned for growth; backs FY18 adjusted EPS view $1.50-$1.70 vs. est. $1.66; backs FY18 revenue growth view 3%-6% vs. consensus $3.81B

· Kratos Defense (KTOS) Q1 EPS loss (2c)/$143M vs. est. 1c/$144.73M; sees Q2 revenue $140-$150M vs. est. $154.15M; backs FY18 revenue view, excluding PSS business

· PPG Industries Inc. (PPG) has fired its controller and reassigned employees after it found additional accounting errors worth millions of dollars and said its investigation into alleged violations of its accounting policies continues. PPG said that errors pertained to Q1 and would result in a $7.8 million net decrease in income from continuing operations before taxes

Media & Telecom

· Globant (GLOB) Q1 EPS 38c/$119.7M vs. est. 34c/$114M; sees 2Q EPS 36c-40c on revs $124M-$126M vs. est. 36c/$123M; sees FY revs $502M-$510M vs. est. $504.1M

· News Corp (NWSA) Q3 EPS 6c/$2.09B vs. est. 6c/$1.99B; 3Q Cable Network Programming revenue $129M, 3Q news and information services revenue $1.29B, 3Q book publishing revenue $398M and 3Q digital real estate services revenue $279M

· Uniti Group (UNIT) acquired from CenturyLink 30 long-haul intercity dark fiber routes totaling 11,000 route miles and 270,000 fiber strand miles across 25 states, the company said in a statement as it raised its FY18 revenue view to $1.01B-$1.02B from $999M-$1.01B

Technology

· Nvidia (NVDA) Q1 EPS $2.05/$3.21B vs. est. $1.45/$2.9B; sees Q2 revenue $3.1B plus/minus 2%, vs. consensus $2.95B; 1Q adjusted gross margin +64.7% vs. estimate +63.0%; says Q1 automotive revenue grew 4% from year-ago-quarter; says Q1 growth was led by gaming and data center; says Q1 cryptocurrency demand was stronger than expected, but was mostly fulfilled with crypto-specific GPU’s

· Amdocs (DOX) Q2 EPS 95c/$992M vs. est. 95c/$980.5M; sees Q3 EPS $1.00-$1.06 on revs $990M-$1.03B vs. est. $1.00/$992.11M

· Dropbox (DBX) Q1 adjusted EPS 8c/$316.3M vs. est. 4c/$309.26M; paying users totaled 11.5 million, as compared to 9.3 million YoY; average revenue per paying user was $114.30, as compared to $110.79 for the same period last year

· HubSpot (HUBS) Q1 adjusted EPS 17c/$114.6M vs. est. 11c/$109.93M; sees Q2 adjusted EPS 14c-16c on revs $117M-$118M vs. est. 14c/$116.02M; sees FY18 adjusted EPS 59c-65c on revs $489M-$492M vs. est. 56c/$483.97M

· HUYA (HUYA) 15M share IPO priced at $12.00

· Kulicke & Soffa (KLIC) preliminary Q2 EPS 51c/$221.8M vs. est. 40c/$210.01M; currently evaluating the impact of the restatement on the Company’s internal control over financial reporting and whether any other prior periods were materially impacted and need to be restated; sees Q3 revenue $255M-$270M vs. est. $260.57M

· Symantec (SYMC) shares fell -24%; Q4 EPS 46c/$1.23B vs. est. 39c/$1.19B; sees FY19 EPS $1.50-$1.65 on revs $4.76B-$4.9B well below est. $1.81/$4.93B; sees Q1 EPS 31c-35c on revs $1.135B-$1.165B vs. est. 41c/$1.19B

· TiVo (TIVO) Q1 EPS loss (15c) vs. (29c) last year and revs $189.84M vs. est. $195.8M; said had a solid Q1 and made progress on the strategic objectives we laid out last quarter; said continues to explore options to maximize shareholder value

· Trade Desk (TTD) shares rose 24%; Q1 EPS 34c/$85.7M vs. est. 10c/$72.23M; sees FY18 revenue at least $433M, vs. consensus $403.96M

· Yelp (YELP) Q1 EPS loss (3c)/$223M vs. est. loss (4c)/$220.14M; sees Q2 revenue $230M-$233M vs. est. $230.99M; sees Q2 adjusted EBITDA $39M-$42M; raises FY18 revenue view to $943M-$967M from $935M-$965M and raises FY18 adjusted EBITDA view to $179M-$188M from $175M-$187M

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Market commentary provided by Hammerstone Markets, a division The Hammerstone Group, a firm separate from and not affiliated with Regal Securities L.P.  Regal Securities L.P. has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

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