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2015-05-22 06:43:10

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

WTI Crude (CL) 3 Week Consolidation Nearing Completion

WTI Crude (CL) strongly added to Wednesday's gains yesterday, reclaiming the point at which upchannel support (on the daily chart) broke early in the week, and continuing to form a 3rd straight weekly Doji.  On the 4hr chart, CL is testing downchannel resistance.  CL appears poised to continue its rebound today despite the daily MACD still sloping slightly downwards.  Weekly and 4hr MACD are still strongly rallying, while weekly, daily and 4hr RSI and Stochastics appear to simply be entering a healthy consolidation phase.  I will look to go long CL intraday today on any notable dips to the 59-60 range. 

 

WTI Crude (CME CL Jul15) Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

2015-05-22 06:42:11

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

GBPUSD Rebounds off Upchannel Support on Daily Chart

The GBPUSD posted a strong rebound yesterday from upchannel support (on the daily chart), and appears poised to continue its rebound today despite the daily MACD making what appears to be a negative crossover.  Weekly MACD is still strongly rallying, while weekly RSI and Stochastics appear to simply be entering a healthy consolidation phase, while daily RSI and Stochastics are sloping up again.  The 4hr RSI, Stochastics and MACD all look bullish as well for today.  I am long GBPUSD at 1.5674, which I will look to close before Carney speaks at 7am EST.

 

GBPUSD Weekly/Daily/4hr/Hourly

 

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-22 06:41:13

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor
Technical Analysis

EURUSD Nearing End of Consolidation Ahead of Draghi's Comments

The EURUSD is close to completing its 38.2% Fib retrace of the roughly 1.06-1.145 rally, and appears to want to resume its rally from here rather than from upchannel support (on the daily chart).  Although the daily MACD suggests more downside, weekly MACD is still strongly rallying, while daily RSI and Stochastics are flattening and appear readying for a resumption to the upside.  The 4hr RSI, Stochastics and MACD all look bullish as well for today.  I am now long EURUSD at 1.1137, which I will look to close before Draghi speaks at 4am EST.

 

EURUSD Weekly/Daily/4hr/Hourly

 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-21 15:03:26

Posted by
Neil Azous
Founder & Managing Member
Rareview Macro LLC
Contributor
Macro

Sight Beyond Sight: Research Tidbits

US Transportation Sector Focus: Yesterday was the first time since 1900 that the Dow was this close to a six-month high while the Transports were at a six month low (Source: Bespoke Investment).

  • Below is a custom chart (left-side) of the ratio of the Dow Jones Transport Index (TRAN) divided by the Industrial Index (INDU). After the TRAN Index had a 100% down day yesterday (i.e. all 20 stocks closed negative), the ratio broke its 100-week moving average for the first time in almost 3-years. The chart on the right-side is the two indices overlaid. The TRAN Index has broken the 200-day moving average. (Source: Rareview Macro)

 

Sight Beyond Sight® is a global macro trading newsletter written daily by Neil Azous. With close to two decades of institutional experience across asset classes, Neil interprets the day-to-day economic, policy and strategy developments and provides actionable trading ideas for investors. We invite clients of Interactive Brokers to sign up for a free trial in Account Management. If you are not a client of IB, you can sign up for a free trial by visiting our website.

 

This article is from Rareview Macro and is being posted with Rareview Macro’s permission. The views expressed in this article are solely those of the author and/or Rareview Macro and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-21 14:04:15

Posted by
Erik Norland
Executive Director and Senior Economist
CME Group
Contributor
Macro

Six Sources of Upcoming Volatility

In recent years, U.S. stocks have been heading higher along a low-volatility path. The last major correction occurred in the summer of 2011, and the VIX index, which measures the implied volatility of options on the S&P 500, has been trading near historic lows.  These might change due to three reasons: 1) corporate profits have stopped growing, 2) equity valuations are reasonably high, and 3) the Fed might begin to tighten monetary policy.

Corporate profits peaked out around 10% of gross domestic product (GDP), a level corporate profits has never historically exceeded (Figure 1).

Figure 1.

Past peaks in corporate profits occurred before tops in the equity markets. For instance, during the 1990s expansion, corporate profits peaked at around 7% of GDP in 1997 and began to decline about three years before the equity market itself peaked in 2000.  Likewise, during the growth cycle from 2002-2007, corporate profits peaked at around 8.5% of GDP in 2006 and began to decline more than a year before the equity market itself peaked in October 2007. Once again, the current expansion in corporate profits appears to have a reached a cyclical peak, plateauing from 2011 through 2014, and now appear to be declining as costs rise faster than revenue. This has not yet led to a correction in the equity market but it might at some point.

During the 1990s and 2000s, after corporate profits peaked, equity volatility began to rise noticeably (Figure 2).  Although the uptrend in equities continued for one to three years after corporate profits began to decline, the upward path of equities became much more jagged and prone to corrections. The cost of options also began to increase quite rapidly.

Figure 2.

Given the recent decline in corporate profits as a percentage of GDP and the continued pressure on corporate margins stemming from rising labor costs, it will be interesting to see if the equity market becomes more prone to corrections and volatility going forward. The fact that stocks have rallied for so long with only minor pullbacks itself could be seen as a warning, but there are others.

Equity valuations are stretched by some measures as well. The Shiller price-to-earnings (P/E) ratio, which measures market valuation relative to cyclically adjusted earnings, shows that equities are at fairly high valuation levels (Figure 3) that resemble levels seen around 2008 and exceed those of the mid-1960s. That said, they aren’t nearly as high as they were in 1929 or in 2000.

Figure 3.

The fact of high valuation levels relative to earnings could also make equities more prone to a correction. Other valuation measures are a mixed bag, with price-to-sales ratios as high as they were in 2000 but price-to-book ratio substantially lower, owing to the corporate deleveraging that has taken place over the past fifteen years.

If the Federal Reserve does begin to tighten policy, what impact will it have on equities? To what extent has the rally in equities been fed by low interest rates? These are difficult questions to answer but we do know that equities and bonds are closely connected. I explore this connection and others in my May 15th webinar Six Sources of Upcoming Volatility co-sponsored with Interactive Brokers. Click here to view the recording of the event, or check out additional insights from CME Group economists in the Economic Research section of the CME website.

 

This post is an excerpt from a paper adapted from an earlier article, "Volatility: A Rough Ride Ahead" authored by Bluford Putnam, Chief Economist and Managing Director, CME Group.

 

Erik Norland is Executive Director and Senior Economist of CME Group. He is responsible for generating economic analysis on global financial markets by identifying emerging trends, evaluating economic factors and forecasting their impact on CME Group and the company’s business strategy, and upon those who trade in its various markets. He is also one of CME Group’s spokespeople on global economic, financial and geopolitical conditions.

 

All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.

This article is from CME Group and is being posted with CME Group’s permission. The views expressed in this article are solely those of the author and/or CME Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-21 13:24:25

Posted by
Waverly Advisors, LLC
Technical/Quantitative Market Research
Contributor
Technical Analysis

Waverly Advisors Summary Stats

%Chg: percent change from the previous day’s close

SigmaSpike: the day’s change expressed as a standard deviation of the last 20 trading days. Values inside +/- 1.0σ are generally insignificant, +/- 2.5σ are large (for the volatility of the particularly instrument), and +/-4.0σ are very large.

C/DayRng: the current price as the pipe “|” within the day’s range. Can easily see at a glance if trading near high or low of the day. The day’s open is “:”. You can read more about this indicator in my book.

For sectors: analysis is done using the State Street Sector SPDRs (XLE, XLF, etc.) %Chg is the day’s change for the SPDR, and Excess is the Excess Return for the day (the SPDR’s return – the S&P 500 return).

 

For more information about Waverly Advisors please click here.

 

This article is from Waverly Advisors and is being posted with Waverly Advisors’ permission. The views expressed in this article are solely those of the author and/or Waverly Advisors and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-21 13:21:44

Posted by
Waverly Advisors, LLC
Technical/Quantitative Market Research
Contributor
Technical Analysis

Waverly Advisors Update: Largest Advances / Declines

The individual stock tables are simply ticker lists showing the largest values for the following criteria:

SigmaSpike: Largest volatility-adjusted moves. (Note that this measure, though we might call it a “standard deviation spike”, does not assume that anything is normally distributed. You’ll see a handful of +/-4.0σ moves on many days, and +/- 10σ do happen.)

GapOpen: The stock’s opening gap, expressed as a SigmaSpike.

FromOpen: Stocks often reveal stronger trending character by their relationship to their opening print, rather than to the previous day’s close. This screen evaluates the move off the open as a SigmaSpike.

 

For more information about Waverly Advisors please click here.

 

This article is from Waverly Advisors, LLC and is being posted with Waverly Advisors, LLC’s permission. The views expressed in this article are solely those of the author and/or Waverly Advisors, LLC and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-21 13:17:48

Posted by
Waverly Advisors, LLC
Technical/Quantitative Market Research
Contributor
Technical Analysis

Waverly Advisors Afternoon Update

Largest Rel Volume: Stocks with the largest multiple of their 20 day average volume. Note that the “average” value for this number will change as the trading day progresses, but the relative position of a stock within this list should show some persistence. These are likely stocks in the news, or stocks experiencing a sharp flow of new information.

Largest Rel Ranges: First, we express each stock’s daily range as a % of the 20 day average range, and then choose the 10 with the largest values of that measure. These are the stocks with the largest daily ranges, relative to their own typical daily ranges.

Gap Analysis shows stocks with open gaps (today’s high < yesterday’s low or today’s low > yesterday’s high) remaining.

Stocks with Open Gaps (for the Day): AMZN, ASHR, ATW, AZN, BABA, BAS, BBY, BP, CL, CME, CNX, CRM, CXO, DVN, FDX, GSK, HLX, HP, ICON, INFN, JNJ, LL, NBR, NE, NTAP, NVS, OCR, OII, PG, PWR, RDC, RDS.A, RDS.B, RIG, SDRL, SLCA, SNE, SNY, YHOO, YOKU

 

For more information about Waverly Advisors please click here.

 

This article is from Waverly Advisors, LLC and is being posted with Waverly Advisors, LLC’s permission. The views expressed in this article are solely those of the author and/or Waverly Advisors, LLC and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-21 11:42:12

Posted by
Barron's

Contributor
Options

Chevron: Investors Should Follow $19M Insider Buy

Options investors can piggyback on a huge insider purchase by Wells Fargo CEO. Plus the stock yields 3.9%.

 

John G. Stumpf of Wells Fargo is one of the banking industry’s sharpest chief executives. Warren Buffett, for one, has given him a big vote of confidence: Wells Fargo (ticker: WFC) is a core holding for Berkshire Hathaway.

So investors should pay close attention to Stumpf’s recent purchase of 180,000 Chevron (CVX) shares. Investors can piggyback the position with a well-placed options trade.

Stumpf’s Chevron position is worth more than $19 million. He is a member of Chevron’s board of directors. He serves on the critical Audit Committee, which should give him a broad, deep view of the company’s inner workings.

Investors should consider Stumpf’s purchase the equivalent of a Buy rating. Stumpf is unlikely to part with $19 million of his own money if he was not confident Chevron’s stock was poised to rise.

With the stock at $105.29, investors can sell Chevron’s June $103 put that expires June 12 for 96 cents. Investors also can consider the August $100 put, recently bid at $2.02.

The different expirations are presented to appeal to different trading styles. Some investors prefer selling short expirations and replacing expiring positions with other short expirations. The June 12 expiration would be replaced by the June 19 expiration, and then the June 26 expiration, and so on. The advantage to this tempo is that market exposure is limited and premium generation is maximized. The drawback is that transaction costs are higher.

Other investors favor the traditional approach of selling options that expire in three months. The added time increases the amount of money received for selling options, though it heightens risks that something may happen before the contract fades away.

Four MLPs and One Energy Stock for Income: Financial advisor Cheryl Young of Morgan Stanley says beaten down oil names are bargains, including Chevron and four master limited partnerships. (Interview date was Feb. 5)

Either way, the put sales position investors to get paid by the options market simply for agreeing to buy Chevron stock at a lower price. The key risk is that Chevron’s stock plummets far below the put strike prices. If that happens, investors are obligated to buy the stock at the strike price, or cover the put at a higher price.

Chevron’s options have unusual one-month pricing patterns. A comparison of one-month implied and historical volatility shows that implied volatility – essentially a measure of future expectations for the associated stock’s movement – is much higher than historical volatility. According to Goldman Sachs’ volatility database, Chevron’s implied volatility is about 3.2 points above historical volatility. This may not seem like much, but volatility is like a tendon. It is tough and usually does not stretch so much. The volatility discrepancy indicates that investors think Chevron’s stock will make a sharp move within a month.

Chevron’s one-month options are inflated in anticipation of the June 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna. Many investors prefer selling options when volatility levels are elevated because they receive more money for the sale. The risk to selling elevated options is that the associated security is likely to make a sharp move, up or down. So only sell Chevron’s puts if you are willing to buy the stock – and warehouse your shares for three to five years. Think of this as acting aggressively in the market, but conservatively in your investment portfolio.

OPEC’s meeting is a bit like a Federal Reserve rate-setting committee. It is closely watched, and largely unknowable insofar as geopolitics, for the most part, exists outside the investment world’s analytical realm. OPEC nations may do something that creates short-term difficulties for oil companies but that tries to secure oil’s long-term viability against cleaner energy sources. Such is the risk of trading energy securities at this moment in time.

The options market, which often offers crisp insights into future trading patterns, has nothing profound or unexpected to say about oil ahead of the OPEC meeting other than this: Prices will be volatile.

“We see limited evidence of hedging in the options market, increasing the potential the market is caught off-guard,” Katherine Fogertey and John Marshall, Goldman Sachs’ derivatives strategists, advised clients Wednesday in a trading advisory. “Options prices across the oil complex have declined in recent weeks, signaling increased complacency.”

Key oil proxies are priced for significant OPEC-induced swings, Fogertey and Marshall note.

United States Oil fund (USO) options imply a 6.3% move, up or down, between now and the June 5 close. SPDR S&P Oil & Gas Exploration and Production (XOP) options imply a 5.7% move, up or down, over the same period, while Select Sector SPDR-Energy (XLE) options are priced for a 3.2% move.

Pricing patterns underscore the difficulty most investors have timing market movements. The antidote is using a different time horizon to smooth returns – assuming the investment is supported by a valid thesis.

If you think oil will continue to play a meaningful role in the world, sell Chevron’s puts and warehouse the stock. The trade, like all trades, is not without risk. But the Chevron purchase has this going forward: a 3.9% dividend yield, and Stumpf’s support.

One market maxim holds true above all others: the law of big trades. Many investors believe big trades are packed with meaning. Anyone who can spend $19 million, and it is not a big group, probably knows something others do not. The Chevron put sales offer investors a way to get in on Stumpf’s action.

 

Get investing analysis that moves stocks and markets—Subscribe to Barron’s for just $1 a week.

This article is from Barron's and is being posted with Barron’s permission. The views expressed in this article are solely those of the author and/or Barron's and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-05-21 09:51:50

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor
Stocks

Sector News Breakdown

Consumer

  • Williams-Sonoma (WSM) Q1 EPS 48c/$1.03B vs. est. 44c/$1.01B; Q1 total comp sales +4.6% vs. est. +3%; comp breakdown by segment: Williams-Sonoma comps. +2.7% (est. +1.5%), with Pottery Barn comps. +2.4%; said E-commerce revs up 8.4% YoY
  • L Brands (LB) Q1 EPS 61c/$2.51B vs. est. 60c/$2.54B; Q1 comps rose 5% (in-line); sees 2015 EPS $3.50-$3.70 up from prior $3.45-$3.65 (est. $3.75); guides Q2 eps below views
  • Shoe Carnival (SCVL) narrows FY15 EPS view to $1.42-$1.48 from $1.40-$1.48
  • GOL Linhas (GOL) announced preliminary air traffic figures for April. April domestic load factor was 79.8%, up 3.0 p.p. year-over-year. April domestic demand increased by 4.3% YoY
  • Malibu Boats (MBUU) 3.475M share Secondary priced at $20.00
  • Aramark (ARMK) files to sell 25M shares of common stock for shareholders
  • Lodging stocks upgraded at SunTrust; raises ratings on DRH, HT, HST and LHO

Energy

  • Bristow Group (BRS) Q4 EPS 91c/$418.9M vs. est. $1.24/$465.55M; sees FY2016 adj. EPS $3.90-$4.40, below est. $4.89.
  • BP Plc (BP) to pay Transocean (RIG) $125M in compensation for legal fees
  • Dominion (D) files to sell 2.8M shares of common stock

Financials

  • Raymond James (RJF) total securities commissions and fees of $287.8M in April 2015 increased 7% compared to last April, driven by growth in the Private Client Group segment and Fixed Income division. Meanwhile, total securities commissions and fees in the month declined 2% MoM, largely due to a sequential decline in underwriting activity and one fewer business day

Healthcare

  • CVS Health Corp (CVS) is in advanced talks to buy pharmacy service provider Omnicare Inc. (OCR) Bloomberg reported, citing people with knowledge of the matter. The deal with Omnicare, which has a market value of about $9.2 billion, could be announced as soon as this week, according to the report. http://goo.gl/Dvs5Xc 
  • Dicerna (DRNA) 2.75M share Secondary priced at $17.75
  • Intersect ENT (XENT) files to sell 3M shares of common stock
  • Ocular Therapeutix (OCUL) files to sell $120M of common stock
  • OXiGENE (OXGN) files $75M mixed securities shelf

Industrials & Materials

  • Israel Chemicals Ltd., looking to expand abroad as it faces rising taxes at home, said buying part or all of Chile’s largest fertilizer SQM would make a “good fit.” SQM is the world’s largest supplier of lithium, which is used in rechargeable batteries, and has a market capitalization of $5.72 billion http://goo.gl/6mXCay
  • Cliffs Natural Resources Inc. (CLF) began court-supervised debt restructuring proceedings for its Wabush assets in Canada, less than four months after the iron-ore producer made the same move with its Quebec unit
  • Rexnord (RXN) Q4 eps 54c/$518.5m vs. est. 54c/$547.9m; sees year EPS $1.53-$1.63 vs. est. $1.61
  • Layne Christensen (LAYN) signed a definitive agreement to sell its Geoconstruction business segment to a subsidiary of Keller Foundations
  • Teck Resources (TCK) acquires additional 1.5M shares of Artha Resources
  • American Electric Tech (AETI) files $25M automatic mixed securities shelf
  • Goldman Sachs downgraded the commodity sector to underweight on a 12-month basis due to the weak outlook for oil; continue "to believe that oil markets remain oversupplied and that the current price should stimulate supply from low-cost producers and put downside pressure on the oil price."
  • Woodward (WWD) upgraded to Sector Weight from Underweight at KeyBanc on the GE Aviation joint-venture announcement and the $250M repurchase plan

Technology, Media & Telecom

  • Salesforce (CRM) Q1 EPS 16c/$1.51B vs. est. 14c/$1.5B; raises FY16 EPS view to 69c-71c from 67c-69c (est. 69c) and revs view to $6.52B-$6.55B from $6.475B-$6.520B (est. $6.51B)
  • NetApp (NTAP) Q1 EPS 65c/$1.54b vs. est. 72c/$1.59b; sees 1Q EPS 20c-25c, below est. 59c and revs $1.275b-$1.375b, vs. est. $1.46b; firm said not satisfied with 4Q results, taking “concrete action” and cutting jobs
  • Synopsys (SNPS) Q2 eps 68c/$557.2M vs. est. 63c/$546.75MM; sees Q3 eps 58c-60 vs. est. 66c on revs $550m-$560m vs. est. $557.6m; raises year eps by 1c on top/bottom line
  • Acxiom (ACXM) Q4 eps 24c/$257m vs. est. 23c/$258.8m; to sell IT Infrastructure Mgmt unit to Charlesbank Capital Partners and M/C Partners for $140m cash at closing, up to $50m in contingent payments
  • 8x8 (EHT) Q4 eps 5c/$43.5m vs. est. 4c/$43.1m; sees FY16 revs $193m-$197m, vs. est. $192.8m
  • Netflix (NFLX) price target raised to $722 from $584 at Citigroup
  • Shopify (SHOP) 7.7M share IPO priced at $17.00
  • Sabre (SABR) 24M share Secondary priced at $26.05
  • Baozun (BZUN) 11M share IPO priced at $10.00

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from the Hammerstone Group and is being posted with the Hammerstone Group's permission. The views expressed in this article are solely those of the author and/or the Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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