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Wednesday’s Morning Look

Market Update:

Stock futures are higher before Wednesday’s open as investors digest the recent sell-off and wait for a busy week of earnings and economic data. In addition to a slew of earnings we have a busy week for Central Banks, including the Fed meeting later today, and the always fun jobs report to look forward to on Friday

Gary’s Thoughts:

The story of the morning is Apple…2% earnings growth and 3% sales growth has it up $6. That’s a big 5% for a megacap company. We suspect this move has something to do with the anticipation of the next phone. Apple stock will open at new yearly highs. We remember when pundits were making fun of Warren Buffett’s recent investment in Apple when he was under water. No longer is he under water. Apple suppliers as well as tech in general opening well.
Yesterday was much better than the Dow down over 100. A/d was strong with the Russell up nicely. NDX futures is up about .5%. S&P futures about .25% percent.
Keep in mind, a few financial names are starting to act suspect. The group has led this move. Financial etfs are still holding the 50 day average at this juncture.

Economic Calendar:

  • Motor Vehicle Sales
  • MBA Mortgage Applications 7:00 AM ET
  • ADP Employment Report 8:15 AM ET
  • Gallup U.S. Job Creation Index 8:30 AM ET
  • Treasury Refunding Announcement 8:30 AM ET
  • PMI Manufacturing Index 9:45 AM ET
  • ISM Mfg Index 10:00 AM ET
  • Construction Spending 10:00 AM ET
  • EIA Petroleum Status Report 10:30 AM ET
  • FOMC Meeting Announcement 2:00 PM ET


  • Trump meets with big Pharma CEOs
    Gary’s Thoughts: They have a lot of work to do.
  • Tim Cook: Goal is to double Apple’s services revenue by 2020. Also hints Apple will battle Amazon and Netflix in original video
    Gary’s Thoughts: That’s good for them and good for consumers.

Wednesday’s Pre-Market Look: Stocks In The News Before The Open

Apple (AAPL) rose 3% in pre-market trading after it reported Q1 EPS of $3.36, higher than consensus of $3.22, and said it sold 78.3 million iPhone units, above consensus of 76.3 million.

Marathon Oil (MRO) was upgraded to ‘Sector Outperform’ from ‘Sector Perform’ at Scotia Howard Weil with a target price of $25.

Illumina (ILMN) lost 1% in after-hours trading after it said it sees Q1 revenue of $580 million to $595 million, below consensus of $615.3 million.

U.S. Steel (X) lost almost 1% in after-hours trading after it reported Q4 net sales of $2.65 billion, below consensus of $2.66 billion.

Align Technology (ALGN) gained 2% in after-hours trading after it said it sees Q1 net revenue of $295 million to $298 million, above consensus of $293.5 million.

Manhattan Associates (MANH) fell 5% in after-hours trading after it said it sees fiscal 2017 adjusted EPS of $1.89 to $1.93, below consensus of $2.02.

Carbonite (CARB) rose nearly 3% in after-hours trading after it reported Q4 preliminary non-GAAP EPS of 10 cents-13 cents, higher than consensus of 10 cents. It also purchased Double-Take for $65.3 million in cash and stock.

Under Armour (UAA) was downgraded to ‘Underperform’ from ‘Neutral’ at Credit Suisse.

Overstock.com (OSTK) surged over 13% in after-hours trading after it reported Q4 EPS of 12 cents versus zero y/y and Q4 revenue of $526.2 million versus $480.3 million y/y.

Advanced Micro Devices (AMD) climbed nearly 5% in after-hours trading after it reported Q4 revenue of $1.11 billion, better than consensus of $1.07 billion.

Match Group (MTCH) dropped nearly 8% in after-hours trading after it said it sees Q1 revenue of $287 million-$297 million, well below consensus of $330.2 billion.

Sanchez Energy (SN) slid 3% in after-hours trading after it announced a public offering of 10 million shares of common stock.

Boot Barn Holdings (BOOT) sank nearly 10% in after-hours trading after it cut its fiscal 2017 EPS estimate to 60 cents-63 cents from an Oct 26 projection of 66 cents-73 cents, below consensus of 68 cents.

Synergy Pharmaceuticals (SGYP) sank over 10% in after-hours trading after it announced a public offering of $125 million of common stock.

Catabasis Pharmaceuticals (CATB) plunged over 60% in after-hours trading after part B of the MoveDMD trial of its edasalonexent (CAT-1004) for treatment of Duchenne muscular dystrophy failed to meet its primary endpoint.

Source: FoxBusiness, Barchart, CNBC, Bloomberg, Reuters

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