1. US Stock Market:
“U.S. equities rose on Monday as a weekend filled with geopolitical worries ended more calmly than investors expected, while bank stocks charged ahead. The Dow Jones industrial average rose more than 100 points as Boeing and Goldman Sachs contributed the most gains on the 30-stock index. The S&P 500 gained 0.6 percent, with financials leading advancers. The SPDR S&P Bank ETF (KBE) rose more than half a percent after the top two Wells Fargo executives bought $5 million worth of Wells stock. The Nasdaq composite rose 0.5 percent.”
“U.S. stocks were on track to snap a three-day losing streak on Monday as investors turned their attention to the first-quarter earnings season, while geopolitical concerns took a back seat. The latest earnings season is expected to show whether companies can live up to their lofty valuations, especially after a post-election rally. At 12:47 p.m. ET (1647 GMT), the Dow Jones Industrial Average .DJI was up 112.67 points, or 0.55 percent, at 20,565.92, the S&P 500 .SPX was up 12.33 points, or 0.53 percent, at 2,341.28 and the Nasdaq Composite .IXIC was up 32.46 points, or 0.56 percent, at 5,837.61.”
“U.S. stocks rebounded on Monday after a two-week decline for major averages, though investors continued to monitor corporate earnings and the latest developments with geopolitical tensions. The Dow Jones Industrial Average DJIA, +0.60% rose 95 points, or 0.4%, to 20,548. The S&P 500 SPX, +0.58% gained 10 points to 2,338, a move of 0.4%. The Nasdaq Composite Index COMP, +0.62% added 28 points, or 0.5%, to 5,832.”
2. US Bond Market:
“U.S. bond prices declined after hitting their highest levels since November. U.S. Vice President Mike Pence said the “era of strategic patience” with North Korea was over. The yield on the benchmark 10-year Treasury note was higher at around 2.23 percent after breaking below 2.2 percent for the first time since Nov. 17. The yield on the 30-year Treasury bond was also higher lower at 2.896 percent and hit its lowest level since Nov. 10. Yields move inversely to prices.”
“U.S. Treasury yields rose from five-month lows on Monday on reports that Randal Quarles, a former Treasury Department official, is expected to be nominated as the Federal Reserve’s vice chairman for bank supervision, which was seen as positive for bank growth. Benchmark 10-year notes were last down 1/32 in price to yield 2.232 percent, after dropping to 2.198 percent overnight, the lowest since Nov. 17.”
3. FX Markets:
“The dollar weakened on Monday as tensions between the U.S. and North Korea continued to escalate following an unsuccessful missile launch ordered by the country’s leader, Kim Jong-Un, over the weekend. Against its Japanese counterpart, the dollar USDJPY, -0.20% traded at ¥108.46, compared with ¥108.64 late Friday in New York, as the yen tends to draw safe-haven demand amid geopolitical uncertainty. The EURUSD, +0.4523% euro traded at $1.0646, compared with $1.0613. The pound GBPUSD, +0.4551% traded at $1.2553, compared with $1.2522.”
“The dollar fell to a five-month low against the yen on Monday as rising tensions over North Korea stoked demand for the safe-haven Japanese currency. The U.S. dollar retreated to 108.14 yen JPY=, its lowest since mid-November before recovering some ground to trade down 0.13 at 108.47 yen. The euro and the pound slid to five-month troughs of 114.87 yen EURJPY= and 135.63 yen GBPJPY=, respectively, before reversing course to trade slightly higher against the yen.”
“The dollar dipped to a five-month low against the yen on Monday, as rising tensions over North Korea kept the safe-haven Japanese currency in demand. The U.S. currency extended losses from the previous day and retreated to 108.135 yen, its lowest since mid-November. The yen remained broadly bid against other currencies as well. The euro and the pound slid to five-month troughs of 114.955 yen and 136.05 yen, respectively. The euro was a shade higher at US$1.0622, having spent the previous session in a very tight range.”
“Gold prices are relatively unchanged, down from their overnight session highs despite a surprising drop in sentiment in the New York manufacturing sector. Monday the New York Federal Reserve said the general business conditions index in its Empire State manufacturing survey fell to a reading of 5.2 in April, following March’s reading of 16.4. Economists were expecting to see a reading of 15.2. “Business activity expanded at a slower pace than in the prior two months. Although the general business conditions index remained above the levels seen through most of 2016,” the report said. Gold prices are relatively flat on the day following the data, last trading at $1,288.90 an ounce.”
“Crude oil recouped earlier losses on Monday in subdued trading, but signs that the United States is continuing to add output largely counteracted strong economic growth in China and OPEC-led efforts to cut production. Benchmark Brent crude futures were down 14 cents at $55.75 at 1350 GMT, after trading as much as 58 cents lower.”
5. Market Movers:
Tenet Healthcare Corp (NYSE:THC) THC, -8.41% shares dropped 8.7% in afternoon trade Monday and Community Health Systems CYH, -6.92% shares dropped 7.5% after rival hospital operator HCA Holdings Inc. HCA, -2.33% warned of a first-quarter revenue and earnings miss. Tenet shares were valued at $15.95 and Community Health Systems shares were valued at $8.42 as of Monday afternoon. HCA Holdings stock dropped 2.7% in afternoon trade after warning Monday morning that it expected earnings to come in at $1.74 per share, below the FactSet consensus of $1.79.
The stock of Stillwater Mining Company (NYSE:SWC) gapped up by $0.3 today and has $18.57 target or 4.00% above today’s $17.86 share price. The 9 months technical chart setup indicates low risk for the $2.14B company. The gap was reported on Apr, 17 by Barchart.com. If the $18.57 price target is reached, the company will be worth $85.60M more. About 15.66 million shares traded or 987.50% up from the average. Stillwater Mining Company (NYSE:SWC) has risen 32.33% since September 8, 2016 and is uptrending. It has outperformed by 25.57% the S&P500.
In early session trading, shares of Community Health Systems, Inc. (NYSE:CYH) have slipped lower. Company stock has moved down -7.69% since the open, landing shares on today’s list of top losers. Investors will be watching to see if the stock can change direction heading into the second half of the session.Community Health Systems, Inc. (NYSE:CYH) is seeing declines so far in today’s trading session. Shares are moving -7.69% lower on solid volume. The stock has landed on the top loser list for the day according to Finviz data. Community Health Systems, Inc.(NYSE:CYH)‘s stock has performed at 62.79% year to date. Breaking that down further, it has performed 1.79% for the week, -5.01% for the month, 38.30% over the last quarter, -13.00% for the past half-year and -44.45% for this last year.
The stock of Ambev SA (ADR) (NYSE:ABEV) gapped up by $0.01 today and has $5.95 target or 3.00% above today’s $5.78 share price. The 8 months technical chart setup indicates low risk for the $88.33 billion company. The gap was reported on Apr, 17 by Barchart.com. If the $5.95 price target is reached, the company will be worth $2.65 billion more. About 5.95 million shares traded. Ambev SA (ADR) (NYSE:ABEV) has declined 9.94% since September 8, 2016 and is downtrending. It has underperformed by 16.70% the S&P500.
Itau Unibanco Holding SA (ADR) (NYSE:ITUB) is currently trading with the volume of 5.62 Million. The Stock opened today’s session at $11.97 and currently the price is hovering at $12.36 by showing increase of 4.97 percent. Itau Unibanco Holding S.A. has 1 year price target of $11.67. The stock gained a consensus recommendation of 2 on Zacks Investment Research where the scale runs from 1 to 5, 1 representing Strong buy and 5 showing Strong Sell. The company reported its last quarter on 12/31/2016.
Recent action on shares of Superconductor Technologies Inc. (NASDAQ:SCON) lands the stock on today’s most volatile list. In the current trading session, the stock has seen a change of 6.59% recently hitting $1.78. Share prices are capable of moving sharply higher or lower in a very short amount of time. Keeping an eye on the volatile stocks may help spot market abnormalities.Based on data provided from analysts polled by Thomson Reuters, Superconductor Technologies Inc. has a current consensus target price of 3.00. The current consensus analyst recommendation is sitting at 2.00 on company shares.
The stock of Puma Biotechnology Inc (NASDAQ:PBYI) is a huge mover today! About 367,445 shares traded. Puma Biotechnology Inc (NASDAQ:PBYI) has declined 39.60% since September 8, 2016 and is downtrending. It has underperformed by 46.37% the S&P500.The move comes after 7 months positive chart setup for the $1.38B company. It was reported on Apr, 17 by Barchart.com. We have $39.38 PT which if reached, will make NASDAQ:PBYI worth $69.00M more.
Traders are closely watching Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) after Macquarie initiated coverage on the name with an ‘Outperform’ rating and a $12 target price. Specifically, analyst Lynn Luo is bullish citing Himax’s exposure to the growing 3D sensing trend. The analyst believes 3D sensing will help Himax grow its margins as well as earnings. For 2017, Luo expects earnings to rise 32% and sales to increase 7%. For 2018, the analyst expects earnings to jump 55% and revenue to rise 26%. Currently shares of the Taiwanese semiconductor maker are up almost 40% year-to-date and yield around 1.55% at current prices.
GlobalStar Inc. (NYSE:GSAT) on April 18 leaped by 9.54% in below-average trading to $1.895, after it became the subject of rumors that it might be the next target of an acquisition. Benjamin Rains of Zacks speculated that after AT&T bought Straight Path Communications Inc. (NYSE:STRP) in a $1.6 billion deal, other tech giants like Verizon or T-Mobile might see GlobalStar Inc. (NYSE:GSAT) as an acquisition target to match AT&T’s new toy. “GlobalStar’s major Monday push might have ended earlier than expected, but its stock has the potential for future gains, as a buyout is still very possible based on the company’s relatively niche offerings,” Rains said.
Shares of Whirlpool Corporation (NYSE:WHR) are in the red today despite the broader market rally after initial reports showed softer-than-expected March appliance data. For the month, the Association of Home Appliance Manufacturers via Bloomberg believes shipments of large home appliances inched up to 7.84 million units. That’s up 0.3% year-over-year. Shipments of ranges, ovens, dishwashers, washers, dryers, and freezers increased 0.6% year-over-year to around 4.46 million units.
The stock of Cleveland BioLabs, Inc. (NASDAQ:CBLI) is a huge mover today! About 7.62 million shares traded or 30613.42% up from the average. Cleveland BioLabs, Inc. (NASDAQ:CBLI) has declined 11.36% since September 8, 2016 and is downtrending. It has underperformed by 18.13% the S&P500.The move comes after 5 months positive chart setup for the $27.33 million company. It was reported on Apr, 17 by Barchart.com. We have $2.64 PT which if reached, will make NASDAQ:CBLI worth $2.19 million more. Analysts await Cleveland BioLabs, Inc. (NASDAQ:CBLI) to report earnings on May, 15.
Snyder’s-Lance Inc (NASDAQ:LNCE) issued an update on its FY17 earnings guidance on Monday morning. The company provided earnings per share guidance of $1.05-1.20 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $1.38. The company issued revenue guidance of $2.2-2.25 billion, compared to the consensus revenue estimate of $2.27 billion.Snyder’s-Lance also updated its Q1 guidance to 0.13-0.14 EPS. Shares of Snyder’s-Lance Inc (NASDAQ:LNCE) opened at 39.92 on Monday. The company has a market cap of $3.84 billion, a price-to-earnings ratio of 252.66 and a beta of 0.63. The firm’s 50-day moving average is $40.05 and its 200-day moving average is $37.85. Snyder’s-Lance Inc has a 52 week low of $28.92 and a 52 week high of $40.85.
Incyte Corporation (NASDAQ:INCY) closed at $140.84 a share in the latest session and the stock value rose almost 40.46% since the beginning of this year. The company has managed to keep price to sales ratio of 25.96 against an industry average of 109.15. The price to sales ratio is the ratio of the market value of equity to the sales. This ratio is internally not steady, since the market value of equity is divided by the total revenues of the firm. Its revenue stood at 63.60% a year on average in the period of last five years. Firm’s net income measured an average growth rate of 18.70%. Following last close company’s stock, is 5.25% above their SMA 50 and -8.04% below the 52-week high.
Shares of Yandex NV (NASDAQ:YNDX) declined -0.13% to $22.75. Stock exchanged hands with the total volume of 1.63 Million shares, as contrast to its average volume of 1.96 Million shares. The 52-week range of the share price is from $16.04 – $25.00. For trailing twelve months, EPS value for the stock is $0.37. Beta factor of the stock stands at 2.75. Beta factor is used to measure the volatility of the stock. The stock remained 2.74% volatile for the week and 2.55% for the month.
Sabre Corporation (NASDAQ:SABR) will replace B/E Aerospace Inc. (BEAV) in the S&P MidCap 400, effective prior to the open on Wednesday, April 19. S&P 500 constituent Rockwell Collins Inc. (COL) is acquiring B/E Aerospace in a deal expected to close April 14. Sabre Corporation (NASDAQ:SABR) shares slumped -1.08% to $21.08 on Thursday. Sabre Corp. provides technology solutions to the travel and tourism industry. Headquartered in Southlake, TX, the company will be added to the S&P MidCap 400 GICS (Global Industry Classification Standard) Data Processing & Outsourced Services Sub-Industry index.
Analysts at Jefferies recently weighed in on Axovant Sciences Ltd (NYSE:AXON), a biotech whose shares have taken off after Dr. David Hung agreed to become the company’s CEO. Traders have been excited over the name due to Hung’s past history at Medivation, a firm Hung founded, led, and helped sell at a substantial premium to Pfizer. Given that Dr. Hung chose Axovant over his many other job offers, many traders think that Axovant’s drugs could be very promising. Recently, Biren Amin of Jefferies weighed in on the stock after hosting an investor meeting with Dr. David Hung. According to Armin, Dr. Hung is pretty bullish on intepirdine and nelotanserin, both of which could offer substantial opportunity for value creation if study data backs the drugs up.
Alere Inc (NYSE:ALR) has surged 16% in the pre-market after the Abbott Laboratories (NYSE:ABT) finally bit the bullet and agreed to an amended merger to buy Alere for $51 per share. Although $51 is lower than Abbott’s previous offer of $56 in cash per share, it is certainly good news for many Alere shareholders given the past circumstances. Abbott had previously wanted to back away from the deal altogether after the DOJ and other government agencies began probing Alere for various reasons. The two later went to court, with Abbott trying to terminate the merger and Alere trying to uphold the agreement. With today’s news, it seems that Alere was able to get the upper hand, albeit at a slightly lower price. The deal, which is worth around $5.3 billion, is expected to close by the end of Q3 2017. In addition, the two companies have agreed to dismiss their respective lawsuits against each other.
Shares of United States Steel Corporation (NYSE:X) are trending after initial data showed that the company’s chemical spill last week at a Portage, Indiana facility didn’t release any meaningful amount of the potentially carcinogenic chemical hexavalent chromium into Lake Michigan and an associated waterway. The EPA said: “Preliminary results of water samples collected by EPA from Burns Waterway and Lake Michigan, including Indiana American Water’s intake, on April 12, do not indicate hexavalent chromium impacts in either water body. All results were below EPA’s method detection limit of 1 part per billion.”
McDonald’s Corporation (NYSE:MCD) is on many traders’ watch-lists today after Jeff Farmer of Wells Fargo upgraded the fast food chain to ‘Outperform’ from ‘Market Perform’. Farmer also raised his target price to $145-$150 from the previous $125-$130, citing potential multiple expansion next year due to expected improvement in return on invested capital and margin gains. The analyst also likes McDonald’s Corporation (NYSE:MCD)’s mobile presence, which could potentially lead to market share gains ahead. As more millennials and teens order food from mobile phones, McDonald’s cutting edge mobile/payment technology could make a meaningful difference in terms of boosting demand. After dipping late last year, shares of McDonald’s have outperformed, rallying 8.22% year-to-date. The stock currently trades for 19.75 times forward earnings estimates and yields 2.88%.
The stock of Arconic Inc (NYSE:ARNC) is a huge mover today! About 3.69 million shares traded or 3.94% up from the average. Arconic Inc (NYSE:ARNC) has risen 241.41% since September 8, 2016 and is uptrending. It has outperformed by 234.64% the S&P500.The move comes after 5 months positive chart setup for the $12.35 billion company. It was reported on Apr, 17 by Barchart.com. We have $30.23 PT which if reached, will make NYSE:ARNC worth $988.00 million more.
Eli Lilly and Co (NYSE:LLY) was the disaster of the day Monday, falling about 4% on early trade after what was called a “rejection” of its anti-arthritis drug, barictinib. The morning’s fall in LLY stock took out about a quarter of a speculative run-up that had taken shares from a December low of $66 per share to a high of over $85 per share. The headlines certainly looked bad. “FDA Rejects Arthritis Drug Due to Safety Concerns.” Ouch. “A Stunning Setback.” Oof. But a closer look reveals both that the news is not quite as bad as advertised, and that there is plenty of other good news on the way from the Indianapolis-based drug maker.
6. Interesting Reads
“Toddlers really need their sleep. It’s crucial when our brains our first developing, so early problems can ripple across your lifetime. That makes a report by Birbeck University of London researchers somewhat disturbing — they found that toddlers between six and 11 months who play with smartphones or tablets get slightly less sleep than those who don’t. According to the study of 715 parents, every hour of touchscreen use results in 15.6 minutes less of sleep, or 26.4 minutes less total per night and 10.8 minutes more during the day, on average.”
“The rate at which America’s kids are diagnosed with diabetes is climbing and researchers don’t know why. A first-ever study of new diabetes diagnoses of U.S. youth under age 20 found both Types 1 and 2 diabetes surged from 2002-2012. The diagnosis of new cases of Type 2 diabetes, associated with obesity, increased about 5% each year from 2002 to 2012, the study said, while new cases of Type 1, the most common form for young people, went up about 2% every year. The National Institutes of Health, which funded the study along with the Centers for Disease Control and Prevention, said the cause of the rise is “unclear.””
“We all have to eat to survive, and chances are we’ve all been to some of the most successful fast food chains in the world to curb our appetites. Even if you hate fast food, you love fast food. Most people really do. It’s not just the convenience of ordering and receiving food in less than five minutes; it’s also often the food itself, even though you know deep down it’s actually probably pretty disgusting. Yet I’ll still get McDonald’s french fries and I probably will until I die because they’re just that good. I doubt there’s ever going to be a time when fast food falls out of fashion. Even when it comes to how unhealthy the food is, most chains are trying to combat that somewhat by displaying calorie count or offering healthier options.”
“In photos and a short video clip shared on social media, Russia’s Deputy Prime Minister Dmitry Rogozin showed off the new skill of the humanoid robot Fedor: shoot guns using both of its arms. Russia’s Intelligent Humanoid Robot: Fedor (Final Experimental Demonstration Object Research) is a robot designed for space missions. It is set for launch to the International Space Station by 2021 to do tasks that are considered too dangerous for astronauts to do in space. Rogozin assured that Russia is not creating a Terminator-like killing machine and explained that the training helps hone artificial intelligence.”
“A rumored iPhone update could be in peril. Apple is having trouble getting a new fingerprint sensor working for an iPhone model this year, which could ultimately lead the company to eliminate it and opt for an alternative, Pacific Crest Securities analysts wrote to investors on Sunday. According to the analysts, whose comments were earlier reported on by Investor’s Business Daily, Apple had hopes of bundling the fingerprint sensor inside its iPhone’s screen, but the component isn’t working as the company might have hoped.”
“Limited editions can be a real bummer, especially when they’re awesome and not egregiously expensive. Thankfully, one very special Mustang will be sticking around for at least another year. Ford has decided to extend the life of the Shelby GT350 and GT350R Mustang into the 2018 model year. The cars are literally unchanged, save for three new exterior paint options — Orange Fury, Kona Blue and Lead Foot Gray.”