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Monday, May 4, 15
Index
Up/Down
Last
DJ Industrials
46.34
0.26%
18,070
S&P 500
6.19
0.29%
2,114
Nasdaq
11.54
0.23%
5,016
Russell 2000
5.87
0.43%
1,233
Economic Data
March Factory Goods Orders rise 2.1% (in-line), while Factory goods new orders for Feb. revised
down to a 0.1% fall; New orders ex-trans. for March rise 0% (prior month revised lower) and New
orders ex-defense for March rise 1.3% after rising 0.1% in Feb.
April New York City Business Conditions Rose to 58.1 after Marchs 50, according to a report
from ISM-NY; Business conditions outlook rose to 73.4 vs 69.4 last month
Commodities
Energy prices ended lower, but only down a fraction, as WTI fell 22c to $58.93 close (flirted with
$60 earlier in session, while Brent was little changed. Not much in regards to macro news for the
space (coming off seventh straight weekly gain last week for WTI), quiet on headlines in Middle
East, and earnings pick up again this week for individual companies; Natural gas prices quietly
edge higher (follows move last week on bullish inventory data)
Gold prices with a solid start to the week, rising $12.30, or 1.1% to settle at $1,186.60 an ounce
(follows a volatile, but in the end uneventful week, falling 0.3%, but was the 3rd straight weekly
decline); move higher today as the dollar with only small bounce after falling to 6-week low last
week (only a small climb in dollar today)
Currencies
The U.S. dollar little bounce today (DXY up 0.25% to around 95.50); coming off 6-week low last
week; after staging the biggest rally in almost five years, the euro took a little breather today (0.5% to 1.1134 to near lows of day), falling as most of the regions PMI data dropped in April
(though overall better). While euro-area consumer prices ended a four-month streak of declines
last month, inflation is still stuck at zero. The move lower today follows a 4.6 % jump in April,
biggest monthly gain since September 2010.
Bond Market
Bond markets lost ground late day as yields pushed higher (been moving higher since FOMC last
week); note the note TLT ETF nears $123 - now down from $138.50 high on 1/31. The yield on
the 10-yr approaching 2.14%, while the 30-yr trades up at 2.88%
Macro
Up/Down
Last
WTI Crude
-0.22
58.93
Brent
-0.07
66.39
Gold
12.30
1,186.80
EUR/USD
-0.0062
1.1136
JPY/USD
-0.07
120.09
10-Year Note
0.018
2.135%
Healthcare
Large Cap Pharma; more strength in Pharma space today (MRK, BMY); ISIS licensed drug to
prevent Thrombosis to Bayer and will get $100m upfront and is eligible for up to $55m
milestones; CYTR said interim analysis from two Phase 1b studies shows combinations appear
well tolerated with impressive tumor responses
Biotech; biotech ETF (IBB) rises 18 points off last week low of 330.60, which was the 100 day
moving average (hadnt been tested to downside since last Oct); IBB traded against its 50 day of
349 before failing (group last week down on BIIB/CELG results.lifted late week by GILD results);
ARRY Q3 revs better/raises guidance
Gene Therapy; ONCE shares fall after an article said a rival gene therapy (not Spark's) used to
treat patients with a rare form of childhood blindness, appears to wane over time. An
examination of three patients who received an injection of a corrected copy of the defective
gene in one eye showed that the vision in the treated eye improved for as long as three years but
then began to deteriorate (shares of other gene therapy names fell: QURE, BLUE, AGTC)
Other movers; PDCO buys privately held veterinary products firm Animal Health for $1.1B
http://goo.gl/bHGBKb ; EXAS shares advanced after earnings; managed care company HNT
shares climbed after mixed Q1 (eps beat/revs miss) and boosted its year outlook; service stocks
PKI and LH receive analyst downgraded; hospital stocks jumped late day on no apparent news
(THC, CYH, UHS) other than ahead of earnings for several
Industrials & Materials
Airlines; DAL April PRASM down (-3.5%) as stable domestic unit revenues were offset by foreign
exchange pressure and lower surcharges in international markets; RJET Q1 eps misses by 9c,
saying hurt by fleet transition expenses/other items; ALK April traffic rose 9.8%, while capacity up
8.8%, while load factor declines to 83.6%
Rails; railcars GBX, TRN, ARII, WAB gain on the back of last weeks regulatory decision
Metals & Mining; gold miners standout to upside in metals sector as gold prices jump over 1% on
the day (NEM lone loser); steels/iron ore (X/CLF) bounce, but aluminum and copper names take
a breather after recent run in shares; silver miners also rally (SSRI, SLW, PAAS)
Chemicals; DOW says cutting about 3% of jobs and sees up to $380M in charges (will save
~$300m in annual operating costs); WLK Q1 eps missed by 10c on light sales as Q1 hurt by FIFO
accounting, lost sales, lower prod. rates and plant maintenance; OLN upgraded to Buy at Sidoti
Industrials; CECE to buy PMFG for $6.85 per share in deal valued $145.9M http://goo.gl/Mo1cRG;
MOG.A downgraded at Cowen after earnings; KMT upgraded to Buy at Jefferies; DC Capital
proposes buying HIL for at least $5.50 per share http://goo.gl/wGZXeZ ; FRM received nonbinding indication of interest /hires advisor http://goo.gl/Itjwjw
Technology, Media & Telecom
Internet; rough week last week led by social stock weakness (little bounce today in shares of P,
GRPN, etc.); TWTR upgraded at Stifel to Buy after sell-off; LNKD upgraded to Buy at Argus after
sell-off; Barrons said TWTR, LNKD, YELP shares may fall further, while FB and GOOGL remain
must-buys for their superior positions in online advertising; AMZN tgt raised to $525 at OpCo
as sees very strong momentum at AWS; PCLN up ahead of earnings (after EXPE beat last week)
Semiconductors; ON Q1 eps/revs top consensus (said not seeing impact from FX volatility); CEVA
falls as guides Q2 revs below consensus; the semi index (SOX) was down slightly
Software & Hardware; BSFT shares jump as posts Q1 eps/rev beat and boosted guidance; CRM
shares fell (note SAP said Friday it is not considering acquiring its rival CRM after a news report
suggested the leaders of the two companies had held talks about strategic alliances last year
http://goo.gl/bdqxIT)
Cable; CMCSA Q1 eps and revs top consensus and said will buyback another $2.5B in stock (qtr
helped by strong theme park revs/high speed Internet); top executives close to CHTR have
reached out to management at TWC to discuss a possible merger, WSJ reported
http://goo.gl/rBa34h ; CVC Q1 eps/revs mostly in-line, though data sub adds miss views
Telco/Media; DIS Marvels Avengers: Age of Ultron sequel grossed $187.7m for its opening
weekend (DIS earnings tomorrow morning); AMCX shares rise as Q1 eps/revs top consensus;
TMUS advanced on positive analyst comments
Networking & Equipment; CSCO names Chuck Robbins as next CEO (John Chambers will assume
role as exec. chairman on July 26); CYNI acquired by CIEN for $400M/$4.75 per share
http://goo.gl/6pKSNT; AKAM could rise another 10% this year said Barrons
Services/Communications; CTSH Q1 eps beats and raises year view
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