The Daily Call

Daily Market Recap | US Equities | Bonds | Europe | Canada | South America | Asia

Daily Market Recap

Tyler Nugent, Julian Gendels (203) 861-7650 | 11.21.2017

 
Component
Close
Change
% Change
YTD Chg
Component
Close
Change
% Change
YTD Chg
DJIA
23,590.83
160.50
0.69%
19.4%
Energy
496.41
1.11
0.22%
-10.5%
S&P 500
2,599.03
16.89
0.65%
16.1%
REIT
1,176.26
8.41
0.72%
2.5%
NASDAQ Comp
6,862.48
71.76
1.06%
27.5%
Materials
367.01
1.74
0.48%
17.6%
Russell 2000
1,518.89
15.49
1.03%
11.9%
Industrials
600.92
3.86
0.65%
11.7%
 
 
 
 
 
Consumer Disc
565.14
1.58
0.28%
6.3%
 
 
 
 
 
Consumer Stap
749.96
4.49
0.60%
15.8%
Nikkei
22,416.48
154.72
0.70%
17.3%
Health Care
943.07
8.17
0.87%
18.3%
DAX
13,167.54
108.88
0.83%
14.7%
Financials
436.59
1.10
0.25%
13.0%
FTSE 100
7,411.34
21.88
0.30%
3.8%
Info Tech
1,119.76
13.22
1.19%
38.6%
Hang Seng
29,818.07
557.76
1.91%
35.5%
Telecom
145.77
-0.79
-0.54%
-17.5%
 
 
 
 
 
Utilities
281.63
0.67
0.24%
14.1%
VIX
9.73
-0.92
-8.64%
-30.7%
NYSE BTK
4,177.33
54.01
1.31%
35.8%
 
 
 
 
 
Crude
57.11
0.73
1.29%
6.3%
 
 
 
 
 
Natural Gas
3.02
-0.01
-0.40%
-18.9%
Market Volume
6,203.43
-
-
-
Gasoline
176.75
2.69
1.55%
6.1%
Market Value
274,990.44
-
-
-
 
 
 
 
 
 
 
 
 
 
Gold
1,280.77
3.85
0.81%
11.6%
USD Spot Index
93.94
-0.14
-0.15%
-8.1%
Silver
16.97
0.06
0.38%
6.6%
Euro Spot Index
1.17
0.00
0.07%
11.6%
Copper
312.85
4.05
0.59%
24.9%
Dollar / Yen
112.44
-0.18
-0.16%
4.0%
10 Yr Yield
2.35
-0.01
-0.37%
2.4%

US Equities

Tyler Nugent, Julian Gendels (203) 861-7650 | 11.21.2017

 

US stocks rose again today, with the S&P 500 index gaining 0.65% touching new highs, after a report of progress in negotiations over the North American Free Trade Agreement. While the approaching Thanksgiving holiday gives traders a chance to pause, equities are heading into the end of the year near their peaks, with investors optimistic about global growth and company earnings. Stocks rose as Goldman Sachs Group Inc. raised its 2018 target for the S&P 500 index to 2,850 from 2,500, citing an expansion in profits and valuations. While Congress is in recess, there was still some discussion about the Senate’s tax-reform bill and the economic impact of the effort today. The FCC Chair called for the elimination of net-neutrality provisions, as expected. In economic news, October’s existing-home sales were stronger than consensus, but weaker year over year. Technology stocks led the way higher, rising 1.19% as a group, and construction and engineering helped industrials. Retail stocks dragged on consumer discretionary and banks were weaker overall. Mellanox Technologies (MLNX) jumped 10.68%today, after holder Starboard Value confirmed at 9.8% stake, saying that their interest is based solely on view that value can be created by operational improvements or strategic alternatives. In earnings news, Jacobs Engineering Group (JEC) rose 9.3% after reporting fiscal Q4 earnings and revenue that beat estimates, as their industrial segment was a standout while Aerospace & Technology was softer. Palo Alto Networks (PANW) rose 4.82% after reporting fiscal Q1 earnings and revenue that beat estimates as product revenue was the bright spot amid a large refresh cycle. Signet Jewelers (SIG ) was the big loser after reporting Q3 revenue in line but earnings, comps, and GM  that missed. The stock tumbled 30.39% as the company cut FY guidance, flagging greater-than-anticipated disruptions related to outsourcing its credit portfolio which are expected to carry into Q4. The health care blow up of the day was Cytokinetics (CYTK), which sank  25.68% after the company announced that their Vitality ALS trial failed to meet its primary endpoint. The company suspended development of tirasemtiv, saying drug’s limitations may be addressed by next-generation CK-2127107.

West Texas Intermediate crude rose 1 percent to $56.97 a barrel.

Gold increased 0.2 percent to $1,279.77 an ounce.

 

What to Expect Tomorrow:

Wed 11/22

    • 7:00AM: MBA Mortgage Applications Data
    • 8:30AM: Weekly Jobless Claims
    • 8:30AM: Continuing Claims
    • 8:30AM: Durable Goods Orders, Oct-P
    • 8:30AM: Durable Goods Ex Transportation, Oct-P
    • 9:45AM: Bloomberg Consumer Comfort, Weekly.
    • 10:00AM: University Of Michigan Sentiment, Nov-F
    • 10:30AM: Weekly DOE Inventory Data
    • 12:00AM: EIA Weekly Natural Gas Inventory Data
    • 2:00PM: FOMC Meeting Minutes From November 1st
    • Minutes from the Fed’s most recent FOMC meeting are released. Markets will be looking for additional clues to the likelihood of a December rate hike.
    • Swedish Central Bank will publish its 2017 Financial Stability Report. It also holds a press conference.
    • Earnings

o   Pre: A LOT, DE, FRO, GASS, JMU, SFL

o   Aft: PIXY  

 

Weeden & Co Top Advertisements:

    • MRVL: 1,713,600 shares
    • CAVM: 1,119,500 shares
    • STNG: 541,300 shares
    • BRX: 471,000 shares
    • DDR: 443,400 shares
    • CBS: 437,800 shares
    • OCN: 400,000 shares

Bonds

Tyler Nugent, Julian Gendels (203) 861-7650 | 11.21.2017

 

Treasuries ended mixed today, with front end of the curve lower and the back end supported as the relentless flattening trend resumed. There was weakness across front, belly after risk assets rallied with US and European stock indexes all positive on the day. The yield on 10-year Treasuries fell one basis point to 2.36 percent. Germany’s 10-year yield fell one basis point to 0.35 percent, the lowest in almost two weeks. Britain’s 10-year yield decreased two basis points to 1.274 percent.

Europe

Tyler Nugent, Julian Gendels (203) 861-7650 | 11.21.2017

 

FTSE 100 +0.28% to 7409.81, DAX +0.83% to 13167.62, CAC40 +0.47% to 5365.45, STOXX 600 +0.43% to 388.04

European stocks ended mostly higher today, with Norway and Germany outperforming the region. In Germany, Chancellor Merkel refused to resign and dismissed the idea of a minority government, suggesting it would be too weak, and instead favored fresh elections. In the UK, the latest Brexit headlines revolved around UK PM May securing some support to make an improved offer of €40B to break deadlock with the EU, though this has raised criticism by euro-skeptic MPs. Focus remained on ECB President Draghi Monday's statement in which he said that recalibration of policies to preserve stimulus are necessary to meet inflation target, while news posts today stated that the ECB is likely to take small steps in guidance on QE exit. In M&A news, Nestle (NESN.SW) is said to be among those companies considering a bid for Hain Celestial (HAIN), while shares in Uniper (UN01.GR) finished little changed after its board told shareholders not to accept Fortum (FORTUM.FH) offer. In the UK, Compass (CPG.LN), Johnson Matthey (JMAT.LN), easyJet (EZJ.LN), CRH (CRH.LN), Aggreko (AGK.LN) were among other companies to report earnings, with Kingfisher (KGF.LN) shares reversing their initial losses and ending in positive territory.

Canada

Tyler Nugent, Julian Gendels (203) 861-7650 | 11.21.2017

 

Canadian stocks rose today, with the S&P/TSX index rising 0.45%, to its highest intraday level in more than a week as every sector except telecom gained, led by technology stocks and materials. Energy stocks rose 0.76%, outpacing the 0.4% gain in the price of oil. TransCanada Corp. rose 1.17% as investors continued to assess Nebraska’s approval of the Keystone XL pipeline. Materials stocks rose 0.88% as both base and precious metal prices rose. Nevsun Resources Ltd. added 3.42% and Alamos Gold Inc. gained 6.1%. Chemtrade Logistics Income Fund fell 2.86% today, after declaring force majeure at a Vancouver plant. Bombardier Inc. rose 0.65% after the company was upgraded to overweight at J.P. Morgan. Enbridge gained 2.44% as the company is rationing more space on its heavy oil lines in December. Liquor Stores NA Ltd. rose 1.55% following an upgrade to outperform at CIBC. 

South America

Tyler Nugent, Julian Gendels (203) 861-7650 | 11.21.2017

 

Mexico: Mexican stocks rose today, with the Mexbol index gaining 0.69%, as health care stocks soared, rising 3.38% to lead the way higher. Inudstrials and consumer staples also outperformed today, rising 1.47% and 1.41% respectively, while utility companies lagged, falling 1.75%. The peso hit a five-week high today, after Juan Pablo Castanon, head of Mexico’s business chamber, said in an interview that negotiators were close to finishing work on telecom, energy and digital commerce provisions of Nafta. Mexico is proposing changes that would effectively limit access for US companies to public-sector procurement contracts, said two people familiar with the matter. Mexico would limit US access to contracts equivalent to the amount of procurement business Mexican firms do in the US, said the people, who spoke on condition of anonymity. Brazil: Stocks in Brazil rose today, with the Bovespa index gaining 1.58%, as ten out of the eleven industry sectors advanced, led higher by materials stocks and industrial companies, which jumped 2.6% and 2.38% respectively. With a 0.4% increase in September, the Central Bank's Economic Activity Index (IBC-Br) ended the third quarter with an expansion of 0.58%. It was the third consecutive quarter of growth, a trend last seen in 2013. The figure reinforces the thesis of a cyclical economic recovery and, according to analysts, activity may show a positive surprise by this year’s end. The Ministry of Finance's official projection on GDP growth is of 0.7% this year, but behind the scenes the government's economic team expects something close to 1%. In other news, AccorHotels, the biggest hospitality group in Brazil, announced that it will take over operations at 21 hotels holding 3,400 rooms that until now were managed by rival Brazil Hospitality Group, as part of a deal announced on March 2.

Asia

Julian Gendels, Tyler Nugent (203) 861-7650 | 11.21.2017

 

Nikkei +0.70%, Hang Seng +1.91%, Shanghai Composite +0.53%

Asian stocks finished higher across the board, following overseas gains overnight as the technology sector remained a bright spot in the region amid optimism of further growth prospects in the industry.  Major benchmarks including Japan’s Nikkei and Hong Kong’s Hang Seng index rallied 0.7% and 1.9%, respectively, while tech heavy measures including Korea’s Kospi and Taiwan’s Taiex added 0.1% to 1.1%. The resources heavy ASX200 index gained 0.3% as mining bellwethers BHP Billiton and Rio Tinto each gained 0.4%, while South32 Ltd added 1.2%. Chinese messaging and online gaming giant Tencent Holdings rose 2%, extending its rally for a 4th consecutive session amid analyst reports suggesting its share valuation remains low. The co. topped Facebook’s market cap intraday, climbing to around $530bln, closing in on AMZN’s $543bln. Other tech gains in the region included SK Hynix +3.5%, Sumco Corp +4.7% and Toshiba Corp, up 5.5% after a MACQ upgrade.  Exporters in Japan rallied amid yen weakness with shares of Toyota and Subaru Corp higher by 1.4% and 1.7%, respectively. Financials were also firm after CSFB raised its target prices on large Chinese banks including China Construction Bank and Industrial & Commercial Bank, up 1.8% to 2.3%, while Bank of China rose 1.9%. Meanwhile, shares of MUFG, SMFG and Mizuho Financial added 0.9% to 1.2%.  Market turnover improved in the region despite the upcoming U.S. holiday. Volumes in HK, Korea and Taiwan jumped 22% to 50%, while Japanese volumes continued to languish, falling 30% vs the 20 day avg, ahead of the upcoming holiday on Thursday. 


Disclaimer:
This publication is prepared by Weeden & Co. LP’s (“Weeden”) trading department, not its research department, and is for informational purposes only. It is not intended to form the basis of any investment decision and should not be considered a recommendation by Weeden or its associates and/or affiliates. The material herein is based on data from sources considered to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. It is not to be construed as a representation by us or as on offer or the solicitation of an offer to sell or buy any security. Any calculations and valuations presented herein are intended as a basis for discussion. Any opinions or estimates given may change. Weeden undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. No liability is accepted by Weeden for any loss that may arise from any use of the information contained herein or derived here from.

From time to time, Weeden, its affiliates, and/or its individual officers and/or members of their families may have a position in the subject securities which may be consistent with or contrary to the recommendations contained herein; and may make purchases and/or sales of those securities in the open market or otherwise. This publication is intended solely for Weeden’s institutional customers/broker-dealers. Use by other than the intended recipients is prohibited. This publication may not be reproduced or redistributed outside the recipient’s organization.

Sources:
Bloomberg L.P., Briefing.com, Street Account, DigiTimes, DrameXchange, .E.E Times, Fly on the Wall, Barron’s, Reuters, Thomson Financial, The Wall Street Journal, Dow Jones, Financial Times, Wall Street Source, NY Times, CBS Marketwatch, Smartmoney.com, Boston Globe, 24/7 WallSt, RealClearMarkets, Yahoo Financial, Los Angeles Times, Washington Post, CNN, Bloomberg Radio, Cable News Network LP, LLP. A Time Warner Company.