Early Look
Friday, November 13, 15
Index
Up/Down
%
Last
DJ Industrials
-53.00
0.30%
17,345
S&P 500
-5.50
0.26%
2,035
Nasdaq
-18.25
0.40%
4,567
U.S. equity futures are pointing to a lower open, tracking losses in Asia and Europe, and extendingThursday’s losses that saw more than 1% declines across the board. The move come ahead of a very bust day of economic data, with retail sales, an inflation report (PPI), business inventories, and confidence data (UoM) all expected today. The latest pullback in the markets, that has seen the S&P 500 and NASDAQ fall six of the last seven sessions, comes amid concerns of a near-term rate hike by the FOMC in December, after many members (six speakers yesterday) continue to reiterate the probability of a move higher. Given the declines early, the moves would put the key benchmarks on track for a weekly loss, after a string of six gains — the longest run since late 2014. The Dow and S&P 500 face weekly losses of roughly 2.5%, while the NASDAQ is looking at a 2.7% decline. In Asian markets, The Nikkei Index dropped 100 points to 19,596, the Shanghai Index declined 52 points (1.43%) to settle at 3,580, and the Hang Seng Index dropped 492 point, or 2.15%, to 22,396 (giving back almost all of the day’s prior gains)
Market Closing Prices Yesterday
The S&P 500 Index dropped -29.03 points, or 1.40%, to 2,045.97
The Dow Jones Industrial Average fell -254.15 points, or 1.44%, to 17,448.07
The Nasdaq Composite dropped -61.94 points, or 1.22%, to 5,005.08
The Russell 2000 Index declined -23.26 points, or 1.97% to 1,154.81
Events Calendar for Today
8:30 AM ET Advance Retail Sales MoM, for Oct…est. 0.3%
8:30 AM ET Retail Sales Ex: Autos MoM, for Oct…est. 0.4%
8:30 AM ET Producer Price Index (PPI) for Oct…est. 0.2%
8:30 AM ET PPI Ex; Food & Energy, for Oct…est. 0.1%
10:00 AM ET Business Inventories, for September…est. 0.0%
10:00 AM ET University of Michigan Confidence, Nov-P…est. 91.5
10:30 AM ET Weekly EIA Natural Gas Inventory Data
1:00 PM ET Baker Hughes Weekly Rig Count
Macro
Up/Down
Last
WTI Crude
0.31
42.06
Brent
0.66
44.72
Gold
5.30
1,086.30
EUR/USD
-0.0016
1.0798
JPY/USD
-0.06
122.55
10-Year Note
-0.03
2.289%
World News
The German and Italian economies slowed in the third quarter, reflecting weaker exports, a drag that the French economy managed to overcome as it returned to growth. France’s gross domestic product expanded 0.3% in the third quarter from the second, when the economy stagnated, while Italian growth slowed to 0.2% from 0.3%
The IEA said global demand growth is forecast to slow to 1.2 million barrels a day in 2016 after surging to 1.8 million barrels a day this year. Economic conditions are expected to remain problematic in countries such as China, and factors that have recently fueled consumption are expected to fade, it said
The global economy risks protracted “sub-par growth,” the International Monetary Fund (IMF) warned on Thursday. Real gross domestic product (GDP) growth is seen averaging 3.1% YoY across the globe in 2015 and 3.6% next year by the IMF. This is down from the international body’s July forecasts, which suggested economic expansion of 3.3% in 2015 and 3.8% in 2016
Sector News Breakdown
Consumer
Nordstrom (JWN) Q3 EPS 57c/$3.24B vs. est. 72c/$3.38B; (said 3Q included 15c cut on credit-card portfolio sale); cuts year profit view to $3.40-$3.50, from $3.70-$3.80, (and est. $3.80) and also cuts sales to up 7.5%-8%, from 8.5%-9.5% and comps view to up 2.5%-3%, from up 3.5%-4.5%; for Q3 total comps up +0.9% vs. est. +3.6%
Fossil (FOSL) Q3 EPS $1.19/$771.3M vs. est. $1.13/$794.36M; Global comparable-store sales down (1%) vs. est. +1.4%; sees 2015 EPS $5.60-$6.20 vs. est. $5.29; sees 4Q EPS $1.40-$2.00 and revs down 7%-16%; also to buy Misfit for $260M
bebe stores (BEBE) Q1 EPS loss (16c)/$96.3M vs. est. (16c)/$97.69M…
Party City (PRTY) Q3 EPS 10c/$555.4M vs. est. 13c/$564M; sees year EPS 99c-$1.04 vs. est. $1.06 and revs $2.27B-$2.32B form prior $2.25B-$2.35B, vs. est. $2.33B
Planet Fitness (PLNT) Q3 EPS 10c/$68.8M vs. est. 9c/$66.6M; raises year eps to 51c-52c, from 47c-48c (est. 47c) on higher sales view as well
Blue Buffalo Pet (BUFF) Q3 EPS 17c/$259M vs. est. 14c/$258.2M; sees 2015 EPS 60c vs. est. 58c and sales $1.02B (in-line)
Group 1 Automotive (GPI) increases share repurchase authorization to $100M
Extended Stay America (STAY) 15M share Secondary priced at $17.25
Restaurants:
Yum! Brands’ (YUM) China Division’s October same-store sales grew an estimated 5%, comparable to the Division’s same-store sales growth of 6% in September. October’s results include estimated growth of 10% at KFC and an estimated decline of 9% at Pizza Hut Casual Dining. Notes same-store sales remain difficult to forecast in China, and our overlaps become more difficult for the balance of year
El Pollo Loco (LOCO) Q3 EPS 18c vs. est. 15c; cuts year comp sales view to growth of ~1.7% vs. previous +3% after Q3 comp store sales rose 0.6% vs. est. 1.5% and company-operated comp sales little-changed, franchised restaurants +1.1% vs. est. 2.3%; sees year eps 67c-69c vs. est. 68c
Shake Shack (SHAK) files to sell 26.16M shares for holder
Energy
Concho (CXO) said to pursue Clayton Williams Energy (CWEI), Bloomberg reported; CWEI said to draw interest from several suitors http://goo.gl/w72gC7
Petrobras (PBR) Q3 net loss BRL3.8B vs. BRL5.3B loss
Carl Icahn raises stake in Cheniere Energy (LNG) to 12.65% from 12.52%
Linn Energy (LINE) is exploring options for restructuring its debt with Barclays (BCS) as low oil and natural gas prices test its ability to service $10B of debt after next year, Reuters reports
InterOil (IOC) Q3 EPS loss ($2.09) vs. loss (29c) YoY, cites plugging, abandoning of Wahoo sidetrack well; Q34 revs $11.82M vs. revs $10.75M YoY, may not compare to est. $8.05M
Financials
The British government said Friday it is unloading a big portion of the assets it acquired in the financial crisis with the GBP13 billion ($19.93 billion) disposal of bank loans to private-equity firm Cerberus Capital Management L.P.
LoanDepot (LDI) has decided to postpone its IPO due to market conditions, The Wall Street Journal reports
CNO Financial (CNO) adds $400M to buyback authorization
Virtu Financial (VIRT) 6.473M share Secondary priced at $22.15
Healthcare
Generic drug maker Mylan NV’s (MYL) $26 billion hostile bid for peer Perrigo Company Plc (PRGO) looked unlikely to succeed late on Thursday, a few hours before it was set to expire, according to people familiar with the matter http://goo.gl/Lv94mp
Illumina Inc. (ILMN) will replace Sigma-Aldrich Corp. (SIAL) in the S&P 500 after the close of trading on Wednesday, November 18. Merck KGaA is acquiring Sigma-Aldrich in a deal expected to be completed on or about that date pending final conditions
FDA has assigned the PDUFA date of June 28, 2016 for its review of Lipocine’s (LPCN) New Drug Application (NDA) for lead product candidate LPCN 1021 for testosterone replacement therapy in adult males. An advisory committee meeting is not planned
Thermo Scientific (TMO) authorizes $1B stock buyback
Orexigen (OREX) files to sell 25M shares of common stock for holders
Kite Pharma (KITE) Q3 eps loss (38c)/$5.1M vs. est. loss (40c)/$4.1M; Q3 cash $368.6M vs. $367.0M end of December; said cash burn $24.3M vs. $8.0M YoY; plans to start two more “pivotal studies” of KTE-C19 in patients with acute lymphoblastic leukemia before yearend; expects data from trials in 2016; goal to file first Biologics License Application by end of 2016
Industrials & Materials
Syngenta AG (SYT) rejected ChemChina’s offer to buy the Swiss agricultural chemicals group in a deal valued at about $42 billion, Bloomberg reported. China National Chemical Corp offered about 449 Swiss francs per share for Syngenta http://goo.gl/KJx0ad
Esco Technologies (ESE) sees 1Q adj. EPS 34c-39c below est. 40c; sees 2016 EPS $1.90-$2.00 vs est. $2.00; sees meeting sales and EPS goals
Media & Telecom
Hulu, a joint venture of Disney (DIS), Comcast (CMCSA), and Fox (FOXA), is in talks to sell a stake in the company to Time Warner (TWX), reports Dow Jones, citing sources. The talks involve cash investment as well as content licensing, and value Hulu at $5B-$6B, said the report. Time Warner would become an equal shareholder with Hulu’s aforementioned ownershttp://goo.gl/Ox95If
Lionsgate (LGF) 3.4M share secondary priced at $39.02
Technology
Cisco (CSCO) Q1 EPS 59c/$12.7B vs. est. 56c/$12.65B; sees Q2 EPS 53c-55c on revs growth 0%-2% YoY vs. est. 56c/$12.55B; says guidance below market expectations saying outlook hurt by growth outside of the U.S.
Applied Materials (AMAT) Q4 EPS 29c/$2.37B vs. est. 29c/$2.4B; sees Q1 EPS 23c-27c vs. est. 25c; and revs down (2%-9%) QoQ or $2.15B-$2.32B vs. est. $2.27B; said Q4 orders $2.42B, up 7% YoY and backlog essentially flat at $3.14B
Alibaba (BABA) and Baidu (BIDU) among ADRs Added from MSCI China Index. Changes will take place as of Nov. 30 close; click here for global list of additions and deletions. Added: 58.Com (WUBA), Alibaba (BABA), Baidu (BIDU), CAR Inc. (699 HK), Ctrip.com (CTRP), Imperial Pacific (1076 HK), JD.com (JD), NetEase (NTES), New Oriental Education (EDU), Qihoo 360 (QIHU US), Qunar (QUNR), Shanghai Lujiazui Finance & Trade (900932 CH), SouFun (SFUN), TAL Education (XRS), Travelsky (696 HK), Vipshop (VIPS), Youku Tudou (YOKU), YY Inc. (YY)
ChipMOS (IMOS) sees Q4 revenue down 4%-9% sequentially vs. consensus $146.2M; expects gross margin on a consolidated basis to be in the range of approximately 14% to 18% for the fourth quarter
Rapid7 (RPD) Q3 EPS (27c)/$28.3M vs. est. (36c)/$26.18M; sees Q4 adjusted EPS (37c)-(35c) on revs $28.8M-$30.2M vs. est. loss (39c)/$28.64M
Paycom (PAYC) files to sell 4.5M shares of common stock for holders
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