Good morning. Happy Tuesday.
The Asian/Pacific markets closed mostly up. Japan posted a 2.2% gain; Hong Kong and South Korea also did well. Singapore dropped 0.9%. Europe is currently mostly up. Greece is up more than 2%; Switzerland, Spain, Italy and Denmark are up more than 1%; London, Germany and France are also posting gains. Russia and Poland are down more than 1%. Futures here in the States point towards a moderate gap up open for the cash market.
The dollar is up. Oil and copper are up. Gold and silver are flat. Bonds are down.
Lots of news headlines from around the world.
Greece’s 10-year bond yields have dropped below 8% (this only happens when the bonds are rally). Eurozone finance ministers have offered debt relief. Meanwhile the situation in Puerto Rico is rapidly deteriorating. Treasury Secretary Jacob Lew visited the island territory and said “this is a moment of necessity.”
Japan rallied big after the country’s finance minister said he’d intervene if the yen’s one-sided gains persist.
And Brazil’s Senate continues with impeachment proceedings for Dilma Rousseff.
Things in the US are so tame compared to most of the rest of the world.
There are some big premarket movers. SCTY is down almost 20%. GPS is down 12%. LL is down 9%. Meanwhile AMZN will open near its all-time high, and FB continues to grind out gains.
The market’s next big move is not clear. I’m still of the opinion the market needs to bounce here or else the floor could be pulled out, but a quick drop doesn’t mean all hell is going to break loose and an extended downtrend will materialize. I actually think a quick drop will allow some charts to reset and will give us some entries at lower levels. Ultimately I still think the highs get tested and taken out. If the S&P dropped to 2000, it would only be a 38% give-back of the February/March gains – perfectly normal and acceptable.
That’s it for now. Be flexible. Be open-minded.
Stock headlines from barchart.com…
Rush Enterprises (RUSHA -1.96%) was upgraded to ‘Buy’ from ‘Neutral’ at Bank of America Merrill Lynch.
Hertz Global Holdings (HTZ -2.67%) fell over 1% in after-hours trading after it reported a Q1 adjusted EPS loss of -12 cents, weaker than consensus of -1 cent.
The Gap (GPS +0.65%) sank 14% in pre-market trading after it reported April comparable store sales unexpectedly fell -7.0%, weaker than consensus of a +1.1% increase.
Consolidated Edison (ED +0.26%) fell 2% in after-hours trading after it announced plans for an 8.8 million share offering.
SolarCity (SCTY +3.07%) sank 18% in pre-market trading after it said Q1 bookings were 150 MW lower than expected and unlikely to be made up for by year end. The company then said it sees 2016 guidance of 1.0-1.1 GW installed, lower than a previous estimate of 1.25 GW.
Inflblox (BLOX -0.51%) dropped 9% in after-hours trading after lowered guidance on fiscal 2016 revenue to $354 million-$358 million from a prior view of $370 million-$380 million, weaker than consensus of $376.8 million.
Stamps.com (STMP +4.71%) surged over 15% in after-hours trading after it reported Q1 adjusted EPS of $1.72, well above consensus of $1.07, and then raised guidance on full-year adjusted EPS to $6.00-$6.50 from a previous estimate of $5.00-$5.50, higher than consensus of $5.27.
MaxLinear (MXL +0.37%) climbed over 3% in after-hours trading after it reported Q1 adjusted EPS of 47 cents, right on consensus, and said it will acquire Broadcom’s wireless infrastructure backhaul business for $80 million.
Fiesta Restaurant Group (FRGI +1.31%) slumped over 10% in after-hours trading after it reported Q1 adjusted EPS of 37 cents, weaker than consensus of 40 cents.
Lattice Semiconductor (LSCC -2.26%) slid over 3% in after-hours trading after it reported a Q1 adjusted EPS loss of -1 cent, right on consensus, but said it sees Q2 revenue of $97 million-$103 million, below consensus of $107.3 million.
InvenSense (INVN -4.32%) fell nearly 7% in after-hours trading after it said it sees Q1 total revenue of $58 million-$62 million, well below consensus of $84.8 million.
Halozyme Therapeutics (HALO +2.32%) rose over 4% in after-hours trading after it raised guidance eon its 2016 revenue estimate to $130 million-$145 million from a previous estimate of $110 million-$125 million, above consensus of $121.8 million.
NewLink Genetics (NLNK +6.11%) plunged over 30% in after-hours trading after a Phase 3 study of its algenpantucel-L for patients with resected pancreatic cancer did not achieve the primary endpoint and found no statistical difference in overall survival.
Monday’s Key Earnings
Gap (NYSE:GPS) -13.5% AH weighed down by Old Navy, Banana Republic.
Hertz (NYSE:HTZ) -4% AH after heavily missing estimates.
Teva (NYSE:TEVA) +5.1% as specialty drugs bolstered sales.
SolarCity (NASDAQ:SCTY) -20% AH on slipping margins, soft guidance.
Today’s Economic Calendar
6:00 NFIB Small Business Optimism Index
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
10:00 Wholesale Trade
1:00 PM Results of $24B, 3-Year Note Auction
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers