|Day's Range||2,800.47 - 2,846.16|
|52 Week Range||2,346.58 - 2,940.91|
U.S. stock futures pointed to further selling in risk assets as investors continued to digest global growth concerns and the results of Special Counsel Robert Mueller’s long-anticipated report that found no proof of coordination between the Trump campaign and Russia during the 2016 elections.
Philadelphia Fed President Patrick Harker still sees one rate hike in 2019 "at most," despite seeing potential risks tilted "very slightly to the downside."
BTIG analyst Walt Piecyk wrote Monday that Apple Inc.'s upcoming launch of its streaming-media service "could trigger a sell-off in the stock." The company is scheduled to make an announcement on Monday at 1 p.m. ET, which is widely expected to concern the company's efforts in streaming video. "We believe there is little that Apple can say at its event today that will satisfy media skeptics," Piecyk wrote. He said that sell-offs have become typical following Apple events. "Most of today's criticism will probably be accurate but viewed through a short term lens," Piecyk wrote, including that it's difficult and expensive to become a formidable media player. He argued that the company shouldn't look toward a big acquisition as a way to bolster its content ambitions. Nonetheless, he boosted his price target to $220 from $189 in his Monday note, writing that the outlook for Apple's 2020 earnings looks favorable relative to the S&P 500 . Apple shares have jumped 30% in the past three months, while the Dow Jones Industrial Average has risen 17%.
Boeing climbed in otherwise weak premarket trading Monday, as markets awaited the Apple streaming launch and the Dow Jones industrials faced a monthly decline.
Shares of Recro Pharma Inc. plummeted 46% to pace all premarket decliners Monday, after the specialty pharmaceutical company said it received a second "complete response letter" (CRL) from the Food and Drug Administration regarding the new drug application for intravenous meloxicam for the treatment of moderate to severe pain. The comments in the CRL, which was unveiled late Friday, focused on onset and duration, saying the delayed onset failed to meet prescriber expectations for intravenous drugs, and citing regulatory concerns over the role of meloxicam as a monotherapy in acute pain. The company said it "strongly disagrees" with the FDA. "We are extremely disappointed with the receipt of a second CRL from the FDA," said Chief Executive Gerri Henwood. "We remain steadfast in our belief that IV meloxicam holds significant potential as a treatment option for moderate to severe pain in multiple clinical settings and remain committed to pursuing a path to regulatory approval." The stock had run up 44% over the past three months through Friday, while the S&P 500 had gained 19%.
Stock futures were flat to lower Monday morning. The Apple streaming service event is Monday. Don't expect the Boeing 737 Max to fly soon.
The biggest news of the morning—the Mueller report and continued Brexit chaos—appears to be the least concerning to the market.
Shares of Biogen Inc. bounced 1.7% in premarket trade Monday, after the drugmaker disclosed that it set a new $5.0 billion stock repurchase program, without an expiration date. The new program is in addition to the $1.7 billion remaining under the program set in August 2018. The new buyback announcement comes after the stock plummeted 32.4% to close Friday at the lowest level since June 2016, after the company said it would discontinue its phase 3 trials of its Alzheimer's treatment, citing results of an interim analysis of trial data. Based on Friday's stock closing price of $216.71, the total buyback authorization would represent about 30.92 million shares, or 15.7% of the shares outstanding. Biogen's stock has shed 16.7% over the past 12 months, while the iShares Nasdaq Biotechnology ETF has gained 2.7% and the S&P 500 has advanced 8.2%.
Canopy Growth Corp. said Monday it has received a licence from Health Canada to grow cannabis at a facility in Fredericton, New Brunswick. The Canadian cannabis company said it expects the facility to produce more than 5,000 kg of cannabis a year with the first harvest expected within six months. The company is expecting to add jobs, including lab supervisors, technologists, growers, post-harvest crews, quality assurance experts, and shipping and maintenance crews. Details of the jobs on offer will be revealed in the coming weeks. Applicants can monitor canopygrowth.com/careers as well as the company's @CanopyGrowth Twitter feed. U.S.-listed shares rose 0.6% premarket and have gained 71% in the last 12 months, while the S&P 500 has gained 8%.
Cousins Properties Inc. and Tier REIT Inc. announced Monday a merger deal, creating a office real estate investment trust with a combined equity market capitalization of about $5.9 billion. The stocks are still inactive in premarket trade. Under terms of the 100% stock deal, Cousins will exchange 2.98 shares of newly issued shares for each Tier stock outstanding. Based on Friday's closing prices, that values Tier shares at $29.44 each, a 15.6% premium. The deal is expected to close in the third quarter of 2019, at which time Cousins shareholders will own 72% of the combined company and Tier stockholders will own 28%. The companies expect annual net savings of $18.5 million after closing. "The company will own an unmatched portfolio of trophy office properties in the premier submarkets of Atlanta, Austin, Charlotte, Dallas, Phoenix and Tampa," said Cousins Chief Executive Colin Connolly. Cousins's stock has rallied 18.9% over the past 12 months and Tier shares have soared 42.0%, while the SPDR Real Estate Select Sector ETF has climbed 19.1% and the S&P 500 has gained 8.2%.
Winnebago Industries Inc. said Monday it had net income of $21.6 million, or 68 cents a share, in its fiscal second quarter to Feb. 23, down from $22.1 million, or 69 cents a share, in the year-earlier period. Revenue fell to $432.7 million from $468.4 million. The FactSet consensus was for EPS of 60 cents and revenue of $459 million. Motorhome revenue fell 17.3% to $164.7 million, while revenue for towables fell 5.9% to $250.7 million. "While the RV industry has been challenged over the past 6 months, we believe the wholesale shipment and retail sales equation will approach a new equilibrium during our fiscal Q3," Chief Executive Michael Happe said in a statement. Shares rose more than 2% premarket immediately after the release before paring those gains to trade up 0.3%. The stock has fallen 20% in the last 12 months, while the S&P 500 has gained 8%.
A yield-scarce investing backdrop could prompt investors to look into more risky sectors of international bond markets.
Just as the central bank signaled its cautiousness about the economy, estimates of corporate profit growth for companies in the S&P 500, after falling for nearly all of this year, have suddenly begun to pick up. Analysts raised their earnings expectations to a collective $169.40 a share, Bloomberg reported?on March 18, based on calculations for the next four quarters. It was the first week-over-week earnings increase since November, according to Bloomberg data.
Shares of Tesla Inc. dropped 1.2% toward a 5-month low in premarket trade Monday, after a New York Times report indicated a big decline in sales from January to February, after the federal tax credit was reduced. Citing data on new-car registrations, compiled by the Dominion Cross-Sell Report, new Tesla registrations "fell significantly" in the 23 states covered by the report, including California, which accounts for about half of Tesla's sales, and three other big markets for the electric-vehicle maker, Texas, Florida and Washington. The report helps fuel concerns of softer sales and deliveries, which have weighed on the stock this year. The stock has tumbled 20.5% year to date through Friday, while the S&P 500 has climbed 11.7%. Over the weekend, On Friday, Cowen cut its price target, citing "likely softer deliveries" because of recent price changes and margin pressure. Over the weekend, Chief Executive Elon Musk said prices on inventory cars will rise 3% on April 1.
US stocks steady as stronger-than-expected reading of German business sentiment takes sting from yield curve inversion following heavy selling overnight in Asia. U.S. Treasury curve slopes positive between 3-month bills and 10-year notes, after tipping into inversion for the first time since 2007 last week, as Chicago Fed President Evans plays down the chances of near-term recession. US equity sentiment gets a modest boost from Muller report conclusions, which suggest there was no Russian collusion with the Trump campaign during the 2016 election, even as many questions regarding the probe remain unanswered..
Former U.S. Federal Reserve Chair Janet Yellen said Monday that the U.S. Treasury yield curve[s:TMUBMUSD10Y], which inverted on Friday for the first time since 2007, may signal the need to cut interest rates at some point, but it does not signal a recession. Yellen, who led the Fed between 2014 and 2018, was speaking at the Credit Suisse Asian Investment conference in Hong Kong. The curve, which reflects yields, and by default, borrowing rates, from shortest to longest maturity tends to slope upward in a growing economy, with longer-dated maturities paying out more than their short-dated counterparts; it has a debatable role historically in signalling recessions. The slope for global bonds had regained its upward trajectory, slightly, in European trading on Monday after stronger-than-expected German data. The Chicago Fed's Charles Evans, a voting member of the Fed's policy-setting Federal Open Market Committee this year, told the same Hong Kong conference that it was understandable for markets to be nervous when the yield curve flattens as it has.
The Ifo Institute's March business climate index unexpectedly rose, soothing nerves after Friday's dismal German manufacturing data, which helped spark a global selloff that hammered stock markets and pushed key benchmark bond yields below zero. "We had a dire end to 2018 which was then recouped so you have a very good reason to lighten up on portfolios," said Marie Owens Thomsen, chief economist at CA Indosuez in Geneva, adding that confusion over the state of play in Britain's impending departure from the European Union clouded the picture more.
U.S. stock futures eased on Monday, indicating investors remain jittery over the global economy and equities may struggle to recover from Friday’s sharp losses.
Biotech stocks are some of the most exciting investments on Wall Street. When one company develops a successful treatment for a complex condition, shares can surge overnight and attract buyout interest from Big Pharma. Case in point: Biotech giant Biogen (BIIB)?imploded roughly 30% on Thursday after announcing it is canceling its Alzheimer’s drug efforts after poor drug trials.
Lululemon Athletica is scheduled to report fiscal fourth-quarter financial results Wednesday after the market’s close. Here’s a snapshot of Wall Street’s expectations and some recent history.
Futures contracts on the S&P 500 Index were down 0.3 percent at 04:40 a.m. in New York, after the underlying gauge slumped 1.9 percent on Friday, a casualty of a flattening yield curve and concerns that the global economy was slowing down. Investor sentiment was already hit heading into the last week of the quarter after the slump on Wall Street. A closely watched gauge of U.S. Treasuries inverted for the first time since 2007, underscoring the return to low long-term rates.
Global stocks retreat on growth concerns as bond markets continue to suggest near-term recession in the world's biggest economy and manufacturing data hits multi-year lows. U.S. Treasury curve remains inverted between 3-month bills and 10-year notes after tipping for the first time since 2007 last week, although Chicago Fed President Evans plays down the implications for near-term recession. US equity sentiment gets a modest boost from Muller report conclusions, which suggest there was no Russian collusion with the Trump campaign during the 2016 election, even as many questions regarding the probe remain unanswered..
As bond yields in Australia and New Zealand plumbed all-time lows in Monday trading, Asian stocks are heading for the biggest slide of 2019 and measures of market volatility are surging, albeit off low levels. MSCI’s gauge of Asia-Pacific shares was down about 2 percent as of 1:20 p.m. Monday in Hong Kong, set for the largest drop since October. The Nikkei Stock Average Volatility Index jumped as much as 31 percent, the most since October, and the equivalent gauge for Hong Kong’s Hang Seng Index climbed 11 percent, though the low starting point highlights how placid things had become prior to Friday.
(Bloomberg) -- Volatility returned with a vengeance to Asia, home to some of the best stock-market returns in the world this year before Monday.