Morning Preview: October 10, 2019

Auto PostDaily Market Report

Early Look

Thursday, October 10, 2019





DJ Industrials




S&P 500










Stock futures are little changed in the U.S. following mixed reports of the long-anticipated trade meeting between America and China, causing volatile trading in Asia and Europe overnight. Bloomberg News reported last night that the White House may implement a previously-agreed-upon currency deal with China ahead of schedule, and suspend tariff hikes scheduled to take effect next week. Meanwhile, the NY Times reported Wednesday night that President Donald Trump had green-lighted issuing licenses to some U.S. companies to conduct business with Chinese telecom giant Huawei Technologies. Headlines come as China’s Vice Premier Liu He will meet with Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday in Washington. Major averages rallied on Wednesday to snap a two-session losing streak after reports from Bloomberg and the Financial Times boosted hopes progress could be made on at least a partial trade deal between the U.S. and China. However, stocks pared gains late day and closed off session highs after Reuters reported Chinese government officials, diplomats, and investors said Beijing had lowered expectations for significant progress as they were surprised and upset by this week’s U.S. blacklisting of Chinese companies. Overnight, in Asian markets, The Nikkei Index gained 95 points to 21,551, the Shanghai Index gained 22 points to finish at 2,047 and the Hang Seng Index gained 25 points to settle at 25,707. In Europe, the German DAX is up around 30 points to 12,125, while the FTSE 100is flat at 7,165. There are a few data points that markets will watch today, including the monthly consumer prices (CPI), but trade headlines will likely dominate today’s market action again.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 26.34 points, or 0.91%, to 2,919.40

·     The Dow Jones Industrial Average rose 181.97 points, or 0.70%, to 26,346.01

·     The Nasdaq Composite surged 79.96 points, or 1.02%, to 7,903.74

·     The Russell 2000 Index advanced 6.86 points, or 0.47% to 1,479.46


Events Calendar for Today

·     8:30 AM EST              Weekly Jobless Claims…est. 220K

·     8:30 AM EST              Continuing Claims…est. 1.651M

·     8:30 AM EST              Consumer Price Index (CPI) MoM for September…est. 0.1%

·     8:30 AM EST              CPI Ex Food & Energy MoM for September…est. 0.2%

·     8:30 AM EST              CPI YoY for September…est. 1.8%

·     8:30 AM EST              CPI Ex: Food & Energy YoY for September…est. 2.4%

·     10:30 AM EST            Weekly EIA Natural Gas Inventory Data


Earnings Calendar:

·     Earnings Before the Open: DAL

·     Earnings After the Close: OCC, VOXX


Other Key Events:

·     BMO Capital Canadian High Yield Conference, 10/9-10/10 in Toronto

·     RBC Capital Global Energy Conference, in London

·     Fed’s Mester speaks at a University






WTI Crude















10-Year Note





World News

·     Turkish troops and their Syrian rebel allies attacked Kurdish militia in northeast Syria, pounding them with air strikes and artillery before launching a cross-border ground operation that could transform an eight-year-old war.

·     The SEC has once again rejected a proposal to create a bitcoin-backed ETF saying the proposed exchange-traded fund from Bitwise Asset Management and NYSE Arca did not meet standards to prevent fraud and market manipulation.


Sector News Breakdown


·     Bed Bath & Beyond (BBBY) shares rose 21%; announced the appointment of Mark Tritton as president and CEO and as a member of its board, effective November 4. He succeeds interim CEO, Mary Winston. Tritton has over 30 years of experience in the retail industry, including most recently as executive VP and Chief Merchandising Officer at Target Corporation (TGT). :th

·     Costco (COST) Sept US comp sales ex gas, FX up 5.7% vs. est. 5.2%; reported net sales of $14.41B for the retail month of September, the five weeks ended October 6, an increase of 5.6% from $13.64B last year

·     Hormel Foods (HRL) narrows its FY EPS view to $1.76-$1.80 from prior $1.71-$1.85 outlook (est. $1.74)



·     PG&E (PCG) shares plunge -27%; on losing exclusive control on bankruptcy reorganization plan as U.S. judge Dennis Montali, overseeing the bankruptcy of PG&E, ends co’s exclusive right to file a reorganization plan, allowing company noteholders to file their plans. A group of noteholders, including Apollo Capital Management and Elliott Management Corp among others, had unveiled a revised version of their proposed reorganization plan in Sept.

·     Infrastructure and Energy (IEA) shares fell -47%; after saying discussing possible investment from Ares Management Corp, Oaktree Capital Management, not a merger or a go-private deal. Note IEA surged 54% in August when it announced equity commitment agreement with funds managed by Ares Management and Oaktree Capital Management



·     AllianceBernstein L.P. (AB) announced that preliminary assets under management increased to $592 billion during September 2019 from $587 billion at the end of August. The 0.9% increase was due to total firm wide net inflows, as well as market appreciation.

·     Invesco Ltd. (IVZ) reported preliminary month-end assets under management (AUM) of $1,184.4 billion, an increase of 0.8%. The increase was driven by favorable market returns, non-management fee earning AUM inflows, reinvested distributions of $2.2 billion, and foreign exchange of $0.3 billion

·     Artisan Partners Asset Management Inc. (APAM) reported that its assets under management as of September 30, 2019 totaled $112.5 billion. Separate accounts1 accounted for $59.1 billion of total firm AUM, while Artisan Funds and Artisan Global Funds accounted for $53.4 billion



·     Ra Pharmaceuticals (RARX) to be acquired by UCB for $48 per share in cash, which represents a transaction value of approximately $2.1B, net of Ra Pharma cash

·     HEXO Corp (HEXO) guides Q4 revenue $14.5M-$16.5M, and net revenue for the year to be approximately $46.5M-$48.5M while withdraws FY20 outlook saying Q4 revenue is below our expectation and guidance, primarily due to lower than expected product sell through

·     BioNTech (BNTX) 10M share IPO priced at $15.00

·     UnitedHealth (UNH) downgraded to Hold from Buy at Jefferies and cut tgt to $235 from $300

·     ProQR Therapeutics (PRQR) announced ‘positive’ top-line results from the PQ-110-001 study, a Phase 1/2 dose range finding, first-in-human trial of Sepofarsen in patients with Leber’s congenital amaurosis 10 due to the p.Cys998X mutation in the CEP290 gene


Industrials & Materials

·     Boeing (BA) says it regrets the impact a structural cracks issue on its 737 NG jetliners was having on Brazilian airline Gol (GOL) and other carriers around the world and says it is actively working with airline customers to procure parts, develop repair-and-replace plans, and provide technical support – Reuters

·     Freeport McMoRan (FCX) upgraded to Buy from Neutral at UBS


Technology, Media & Telecom

·     EXFO Inc. (EXFO) Q4 EPS 0c/$70.2M vs. est. 4c/$68.67M; sees 2020 adjusted EBITDA $33M; sees Q1 EPS loss (5c)-(1c) on revs $70M-$75M vs. est. 6c/$71.94M

·     Adtran (ADTN) shares fell as guides Q3 adjusted EPS loss of (6c) on sales about $114M, below the 3c profit and $140.2M estimate

·     Cisco (CSCO), NetApp (NTAP) and HP Inc. (HPQ) all downgraded at Goldman Sachs, while firm upgraded Pure Storage (PSTG)

·     Qorvo (QRVO) and Skyworks (SWKS) upgraded to outperform at Cowen


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.

Live Trading

Open an Account

Paper Trading