1. US Stock Market:
“U.S. stocks retreated on Tuesday as a spate of tepid corporate earnings weighed on the broader market. The Dow Jones Industrial Average DJIA, -0.57% dropped 124 points, or 0.6%, to 20,510, while the S&P 500 index SPX, -0.30% fell 7 points, or 0.3%, to 2,341, as health-care and financial shares led the broad-market gauge lower. The Nasdaq Composite Index COMP, -0.22% lost 14 points, or 0.3%, to 5,842.”
“U.S. equities fell on Tuesday after Goldman Sachs shocked Wall Street by missing estimates. Investors also remained vigilant amid U.S.-North Korea tensions and the nearing of the French presidential election. The Dow Jones industrial average dropped about 100 points, with Goldman shaving off 70 points and Johnson & Johnson taking out 30 points. The S&P 500 fell 0.2 percent with health care and financials leading decliners. The Nasdaq composite fell around 0.15 percent.”
2. US Bond Market:
“U.S. government debt prices were higher on Tuesday as investors await fresh economic data, while concerns from overseas remained. The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at around 2.221 percent, while the yield on the 30-year Treasury bond was also lower at 2.885 percent.”
“The U.S. Treasuries traded higher ahead of the country’s March industrial production data, besides, the FOMC member Esther L. George’s speech, scheduled to be held later in the day. The yield on the benchmark 10-year Treasury slumped nearly 3-1/2 basis points to 2.22 percent, the super-long 30-year bond yields plunged nearly 4 basis points to 2.88 percent and the yield on short-term 2-year note traded nearly 1-1/2 basis points lower at 1.18 percent.”
3. FX Markets:
“The dollar was lower against a basket of the other major currencies on Tuesday, weighed down by a combination of geopolitical concerns and a rallying sterling after British Prime Minister Theresa May called for a general election in June. The dollar edged lower against the safe haven yen, with USD/JPY dipping to 108.82, not far from the five-month trough of 108.12 set on Monday. The pound erased earlier losses as investors welcomed the prospect of a June election with GBP/USD surging 1.28% to 1.2725, the highest level since December 6. Sterling also gained ground against the euro, with EUR/GBP falling 0.71% to 0.8408. Meanwhile, the single currency moved higher against the dollar, with EUR/USD rising 0.5% to 1.0695.”
“The dollar held at lower levels against a basket of currencies on Tuesday as a steeper-than-forecast decline in domestic home construction in March supported the notion the U.S. economy lost momentum in the first quarter. The dollar index, which measures the greenback’s value versus the euro, yen and four other currencies, was last down 0.3 percent at 99.941.”
“Pound hits four-month high as traders predict Tory win. Breaking! The pound has now hit its highest level against the US dollar since last December. Sterling has extended its gains, and is now up 1.6 cents at $1.2729 – a four month high.”
“Gold prices eased slightly on Tuesday, pausing a run that had landed the precious metal at five-month highs, even as the dollar remained relatively weak against leading rivals, though off recent lows. June gold GCM7, -0.43% fell $3.60, or 0.3%, at $1,288.30 an ounce. Prices logged their highest finish, at $1,291, since Nov. 4 on Monday. Analysts said the metal’s inability to clear $1,300 encouraged some traders to sell.”
“Oil prices hit their lowest in 11 days on Tuesday on news that U.S. shale oil output in May is expected to post the biggest monthly increase in more than two years, fuelling concerns that U.S. production growth is undermining efforts to cut oversupply. U.S. government drilling data showed shale production next month was set to rise to 5.19 million barrels per day (bpd), with output from the Permian play, the largest U.S. shale region, expected to reach a record 2.36 million bpd. Global benchmark Brent crude futures were down 49 cents at $54.87 a barrel at 1038 GMT. They touched $54.76 intraday, the lowest since April 7. U.S. West Texas Intermediate crude futures traded down 46 cents at $52.19 a barrel. Their intraday low was $52.16, also the weakest since April 7.”
5. Market Movers:
The stock of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) gapped down by $0.01 today and has $8.56 target or 5.00% below today’s $9.01 share price. The 8 months technical chart setup indicates high risk for the $3.08B company. The gap down was reported on Apr, 18 by Barchart.com. If the $8.56 price target is reached, the company will be worth $154.00 million less. About 14.50 million shares traded. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has declined 66.22% since September 9, 2016 and is downtrending. It has underperformed by 76.61% the S&P500.
Goldman Sachs Group Inc (NYSE:GS) released its earnings results on Tuesday. The investment management company reported $5.15 earnings per share for the quarter, missing the consensus estimate of $5.31 by $0.16. The company had revenue of $8.03 billion for the quarter, compared to analysts’ expectations of $8.33 billion. Goldman Sachs Group had a return on equity of 9.78% and a net margin of 24.17%. The firm’s revenue for the quarter was up 26.6% on a year-over-year basis. During the same period in the prior year, the firm posted $2.68 EPS. Goldman Sachs Group (NYSE:GS) traded down 4.82% during trading on Tuesday, reaching $215.35. 9,364,987 shares of the company’s stock were exchanged. Goldman Sachs Group has a 52 week low of $138.20 and a 52 week high of $255.15.
XOMA Corporation (NASDAQ:XOMA) stock is experiencing unusual volume during today’s trading. While the stock price moved along with the volume change, shares are touching $7.50. The day’s total volume of 958749 this morning is in contrast from the three-month daily average of 131.87K. When we divide the current volume by the three-month average volume, we get a relative volume of 11.20. XOMA Corporation (NASDAQ:XOMA)‘s market cap, the total dollar value of all of their outstanding shares, is 49.34m. Including today’s unusual volume, XOMA Corporation‘s stock is performing at 54.03% on the year. For the week, the stock is performing 0.93%. Over the past month the firm’s stock is 17.75%, 32.65% for the last quarter, -22.62% for the past six-months and -61.31% for the last year.
MicroVision, Inc. (NASDAQ:MVIS) has reached the top gainers list today as the stock has jumped 7.50% from the open, touching $2.37 on a recent bid. The year-to-date performance of the stock is 62.70%. The monthly stock performance comes in at 10.22%. For the quarter, shares are performing at 56.49%. Weekly performance analysis shows the equity at -7.24%.Covering Sell-Side analysts have offered recommendations and price target estimates on MicroVision, Inc. (NASDAQ:MVIS). According to First Call, the current consensus target price on shares is sitting at $3.67. Analysts have also given a consensus recommendation on the stock of 1.70. This number lands on a scale from 1 to 5. A rating of 4 or 5 would indicate a Sell. A rating of 1 or 2 would represent a Buy, and a 3 rating would signify a Hold on the stock.
The stock of Cytokinetics, Inc. (NASDAQ:CYTK) gapped up by $0.8 today and has $13.42 target or 4.00% above today’s $12.90 share price. The 6 months technical chart setup indicates low risk for the $565.03 million company. The gap was reported on Apr, 18 by Barchart.com. If the $13.42 price target is reached, the company will be worth $22.60M more. About 832,144 shares traded or 105.40% up from the average. Cytokinetics, Inc. (NASDAQ:CYTK) has risen 29.26% since September 9, 2016 and is uptrending. It has outperformed by 18.87% the S&P500.
Tile Shop Holdings, Inc. (NASDAQ:TTS) released its quarterly earnings results on Tuesday. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.02. Tile Shop Holdings had a net margin of 6.88% and a return on equity of 18.35%. The firm had revenue of $92.10 million for the quarter, compared to analysts’ expectations of $89.70 million. During the same quarter last year, the company earned $0.14 EPS. The firm’s revenue for the quarter was up 8.7% compared to the same quarter last year. Tile Shop Holdings updated its FY17 guidance to $0.50-0.57 EPS. Shares of Tile Shop Holdings (NASDAQ:TTS) traded up 8.25% on Tuesday, reaching $21.00. The company’s stock had a trading volume of 1,281,407 shares. The company has a 50 day moving average of $18.72 and a 200 day moving average of $18.72.
Cabela’s Inc (NYSE:CAB) shares closed the most recent session at $53.69, moving +6.87%. The company shares touched $57.85 as the high point and dipped down to as low as $57.30. In comparing the current level to Cabela’s Inc Class A Common Sto’s moving averages, the price sits +16.90% off its 50-day moving average of $49.08 and +1.68% away from the stock’s 200-day moving average which is $56.43. A moving average is the average price of a stock over a given time frame. With price movements smoothed out, traders can more easily identify true trends and use them as potential indicators of future price levels.
The stock of Barracuda Networks Inc (NYSE:CUDA) gapped down by $1.45 today and has $18.06 target or 7.00% below today’s $19.42 share price. The 8 months technical chart setup indicates high risk for the $1.02B company. The gap down was reported on Apr, 18 by Barchart.com. If the $18.06 price target is reached, the company will be worth $71.40M less. About 5.26 million shares traded or 1193.02% up from the average. Barracuda Networks Inc (NYSE:CUDA) has risen 1.12% since September 9, 2016 and is uptrending. It has underperformed by 9.27% the S&P500.
W.W. Grainger, Inc. (NYSE:GWW) shares are struggling to make any headway in today’s session. In early trading, the stock has dipped -11.47% on steady volume. The action so far has landed shares on the top loser list for the morning session.W.W. Grainger, Inc. (NYSE:GWW) is seeing declines so far in today’s trading session. Shares are moving -11.47% lower on solid volume. The stock has landed on the top loser list for the day according to Finviz data.
Pandora Media Inc (NYSE:P) is trending after the company’s on-demand paid service, Pandora Premium, opened to the broader public after being invite-only for months. The service, which costs $9.99 per month, is aimed to blunt competitor Spotify’s growth and offers subscribers the ability to listen to any track in Pandora’s collection, along with the traditional Pandora radio channels. Needless to say, Pandora Media Inc (NYSE:P) management hopes that the broader offering will ramp up growth and increase overall demand. Many holders of Pandora have been frustrated at the stock’s recent slide and some activists would like the company to sell itself. Having a successful premium product would go a long way to quell those equity holder concerns.
Cardinal Health Inc (NYSE:CAH) struck a deal to buy part of Medtronic PLC’s MDT, -0.24% patient monitoring and recovery unit for $6.1 billion, bringing businesses under Cardinal’s roof that it has sought for years but also boosting its debt load. Cardinal CAH, -11.45% said it will fund the acquisition with $4.5 billion in new debt plus existing cash. The move prompted Fitch Ratings to voice concerns over Cardinal’s debt and lower its outlook on the health-care services company. That, combined with a dimmed outlook from Dublin, Ohio-based Cardinal sent shares tumbling 13% premarket to $71.40.
Kate Spade & Co (NYSE:KATE) shares slid 2% in Tuesday premarket trading after the accessories company reported first-quarter 2017 earnings that missed expectations. The earnings announcement was unexpected, and comes amid reports that it’s in talks to be acquired by Coach Inc. Net income was $1.36 million, or 1 cent per share, down from $11.6 million, or 9 cents per share, for the same period last year. The FactSet consensus was 7 cents per share. Sales for the quarter were $271.2 million, down from $274.4 million last year and below the $299.0 million FactSet consensus. Same-store sales fell 2.4% for the quarter, and were down 8.1% excluding e-commerce.
In recent trading action Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) stock moved 1.65% landing at $1.23. This stock has garnered attention of analysts and investors over the past few weeks as the stock has come into mainstream focus. Sometimes the stock market can be very confusing, even for the most seasoned investors. Even when expectations are met as predicted, the market may decide to move otherwise. This can cause uncertainty and second guessing. Keeping up with historical data as well as short-term and long-term trends may be very helpful. Over the past week, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) shares have performed 4.96%. Pushing back over the last quarter, shares are 4.23%. Looking at stock performance for the past six months, shares are -12.43%. Since the start of the calendar year, shares have performed 4.23%.
GNC Holdings Inc (NYSE:GNC) stock is up 20% in early morning trading after posting an earnings report that beat expectations. The vitamin retailer had adjusted EPS of $0.37, while analysts expected EPS of $0.34. This is still down from the EPS of $0.69 for the same quarter a year earlier. Revenue came in at $644.8 million, while expectations were $623 million. However, this is a drop from last year’s revenue of $668.9 million. GNC is currently trading at $7.24 for a loss of 34.4% YTD.
Interpace Diagnostics Group, Inc. (NASDAQ:IDXG) announced that UnitedHealthcare, the largest health plan in the United States, has agreed to cover Interpace’s ThyraMIR® test used in assessing indeterminate thyroid nodule fine needle aspirate (FNA) biopsies. The coverage is now in effect and is subject to members’ specific benefit plan design. Interpace Diagnostics Group, Inc. (NASDAQ:IDXG) shares slumped -0.46% to $2.15 on Monday. The UnitedHealthcare policy decision is consistent with the National Comprehensive Cancer Network (NCCN) Thyroid Carcinoma Guidelines, which recommend that clinicians consider the use of molecular testing to identify patients with indeterminate cytopathology results whose nodules are actually benign and can thus avoid surgery.
Teck Resources Ltd (USA) (NYSE:TECK), a stock from Industrial Metals & Minerals Industry, has a value of $22.39 per share, noted a price change of 1.77% in recent trade close. The price to earnings growth ratio is 7.91 and the P/S ratio is 1.85. It has a dividend yield of 0.31%. The performance for one month is at 3.56% and the performance for half year is 23.84%. The performance for recent week is -4.80% and the performance for three months is at -9.32%. The performance for Year to Date (YTD) is 11.78%. Its monthly volatility value of 3.61% and volatility for the week is valued at 3.30%.
InvenSense, Inc. (NYSE:INVN) announced that all necessary regulatory clearances have been received for the acquisition by TDK Corporation of InvenSense, including from the Committee on Foreign Investment in the United States (CFIUS) and all other necessary regulatory authorities, and the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired. InvenSense, Inc. (NYSE:INVN) shares remains unchanged to $12.52 on Monday.
Johnson & Johnson (NYSE:JNJ) has been assigned an average recommendation of “Hold” from the nineteen analysts that are currently covering the firm. Two analysts have rated the stock with a sell recommendation, eleven have given a hold recommendation and six have given a buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $122.75. JNJ has been the topic of several research reports. Vetr cut shares of Johnson & Johnson from a “hold” rating to a “sell” rating and set a $119.73 price target on the stock. in a research report on Tuesday, March 7th. Jefferies Group LLC boosted their price target on shares of Johnson & Johnson from $110.00 to $120.00 and gave the stock a “hold” rating in a research report on Friday, January 20th.
Traders are watching Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) after the company completed a licensing deal with Merck Animal Health. Specifically, Aurinia has granted Merk Animal Health the worldwide rights to commercialize and develop Aurinia’s patented nanomicellar voclosporin ophthalmic solution for the treatment of dry eye syndrome in dogs. Although Aurinia will receive an upfront payment and royalties, it is unclear exactly what the financial details are as they were not disclosed in the initial press release. The lack of details could explain why Aurinia shares are relatively unchanged Tuesday morning.
BP plc (ADR) (NYSE:BP) is trending today after the company disclosed that it has brought under control a well that had been spewing natural gas into Alaska’s North Slope. BP had previously successfully stopped the oil leakage from the well but the natural gas leakage was harder to control due to the difficult conditions surrounding the area. Alaska Department of Enviromental Conservation spokeswoman Candice Bressler said, ‘The leak has been completely stopped, both the crude leak and the natural gas leak, which is great news for the North Slope’.
6. Interesting Reads
“Teenagers’ school days shouldn’t begin before 8:30 a.m., says American Academy of Sleep Medicine, linking early start times to car accidents, depression and poor academic performance. In a position statement published Saturday in the Journal of Clinical Sleep Medicine, the sleep research group asserted that later start times aid peak alertness and performance while supporting better mental health and student safety. As teenagers enter puberty, their biological programming for sleep shifts later, the statement notes, causing a clash with early start times that results in sleep depravation.”
“Surprise! AMD revealed a fresh lineup of graphics cards on Tuesday, and the Radeon RX 500-series is a perfect complement to the company’s new Ryzen 5 processors. What they aren’t, however, are AMD’s hotly anticipated Vega GPUs. Instead, the Radeon RX 500 series are based on the same Polaris graphics processors as the Radeon RX 400 series launched last year, with the exception of a new low-end GPU focused solely on e-sports and home theater PCs. “Polaris refined and evolved,” as AMD calls it. Yep, they’re tweaked refreshes, with one notable exception.”
“The reports this weekend were breathless. Mashable said Russia was sending a “death dealing” robot with the power to shoot guns to the International Space Station. Pravda reported that the Russian cyborg, Fyodor, had frightened the West. It was like the Terminator, only in space, and only for reals. In reality, probably not. The stories were written after the Russian deputy prime minister overseeing military and space activities, Dmitry Rogozin, posted on Facebook and Twitter about the country’s humanoid robot, Fyodor. Rogozin was proud that the robot had demonstrated the ability to shoot from both hands. “Fine motor skills and decision-making algorithms are still being improved,” he tweeted. But maybe we shouldn’t call upon Arnold Schwarzenegger to save us just yet. “Shooting exercises is a method of teaching the robot to set priorities and make instant decisions,” Rogozin added. “We are creating AI, not Terminator.””
“As far as defining what a great company is, you can’t go wrong with citing one of the 10 most profitable companies in the world in 2017 as an example. Earning a lot of revenue is one thing; for instance, Wal-Mart Stores Inc. (NYSE:WMT), the company with the highest revenue in the world, easily pulls in almost half-a-trillion dollars in sales each year. But with net income of just $14 billion as of 2016 (a huge figure, yes, but still way down from half a trillion bucks), the company suddenly doesn’t look to be as attractive of an investment as it did when looking solely at its top-line results. That just goes to show that being a great company is more than just earning more revenue than the next guy; it’s also about ensuring that whatever you earn and spend on your business will get you to the maximum possible income.”
“Snapchat is adding a new way to use its app that brings its popular filters beyond faces. The new ‘World Lenses’ add augmented reality elements to any scene you can capture with your camera, placing 3D objects you can actually walk around with your smartphone’s camera, which is actually a lot closer to what we used to mean when we said “augmented reality” in its earlier days. Snap notably doesn’t use “augmented reality” or “AR” once in its blog post announcing the news, preferring instead to talk about how users can “paint the world” with “3D experiences.” The intro video, however, will reveal something pretty familiar to anyone who bought into the early hype of the Nintendo 3DS, which came with AR cards that let you place and virtually interact with 3D graphics that looked like they were anchored to, and blended with, the real world.”
“Apple is preparing three iPhones for launch as soon as this fall, including upgraded versions of the current two iPhone models and a new top-of-the-line handset with an overhauled look, according to people familiar with the matter. For the redesigned phone, Apple is testing a new type of screen, curved glass and stainless steel materials, and more advanced cameras, the people said. Those anxiously awaiting the redesigned iPhone, however, may have to wait because supply constraints could mean the device isn’t readily available until one or two months after the typical fall introduction.”