Market 2018-02-27 (M, CELG, and more)

Market trends lower after new Fed Chair Powell addressed Congress, signaling to keep rate hike pace. Treasury yields rise.

Crude -1.6% to $62.89. Gold -1.03% to $1,319.10. UUP +0.6%.

News


  1. Jared Kushner has lost access to security clearance is downgraded.
  2. Amazon (AMZN -0.6%) will buy video doorbell startup Ring for an undisclosed amount. It has added Blink (security camera) not long ago. Its smart home ambition is competing with Google Nest head-to-head.
  3. Berkshire Hathaway is eager to spend its $116B cash, one possible target is airline company. By the end of 2017, Berkshire Hathaway holds $3.12B LUV (~9% of Market Cap $35B), $2.97B DAL (~8% of Market Cap $39B).

Winners

BA +0.3%, locked the deal with White House on two new Air Force One planes for $3.9B. No comments.

 INTC +1.6%. Citi calls Intel a "top pick" with 18% upside.

M +3.5% reported impressive quarter: Q4 EPS of $2.82 beats by $0.11. Revenue of $8.67B (+1.8% Y/Y) comparable sales on an owned basis were 1.3% higher in Q4. FY18 EPS of $3.55 to $3.75 is seen vs. $3.04 consensus. Stock price has lot of room to go up.

PANW +2.3% after ER beats.

Losers

Disney (DIS -4.5%) has lot of news today:

  • a new app with ESPN Plus will launch late next month or early in April, starting at $4.99/month, plans call for tiered pricing depending on top-tier sports: "We have the opportunity to enable customers to buy seasons, teams, weekends.”
  • Once the company gets its transaction for Fox media assets closed, the plan it to mobilize over-the-top exclusives from National Geographic and other brands.
  • Announces plans for a €2B multi-year expansion for Disneyland Paris.
  • In a brief reaction to Comcast's (CMCSA -7.4%) topping bid for Sky (SKYAY +21.1%), Fox (FOX -3.3%, FOXA -3%) says it's staying the course.


Homebuilders get slammed again despite TOL ER beats. TOL -5.1%, HOV -6.4%, BZH -4.4%, LEN -3%, KBH -3%...

Gun stocks: Sturm, Ruger (RGR -5.5%) and American Outdoor Brands (AOBC -4.2%) both lower amid the national gun ban debate.

Carter's (CRI -4.7%) amid weak guidance: Q1 EPS growth would be flat to compared to a year ago, implying EPS of $0.97 vs. $1.18 consensus. The full-year EPS +15% to $6.62 vs. $6.66 consensus.

FIT -12.3% after ER misses and weak guidance.

AZO (-11.1%) is selling Interamerican Motor to Parts Authority for an undisclosed amount.

Chinese stocks are broadly lower as well: NTES -4%, BABA -3%, JD -3.6%, TCEHY -4%, MOMO -2.1%, YY -2.4%...

 Celgene Corporation (CELG) announced that it has received a Refusal to File letter from FDA regarding its New Drug Application (NDA) for ozanimod in development for the treatment of patients with relapsing forms of multiple sclerosis. “We remain confident in ozanimod’s clinical profile demonstrated in the pivotal program in relapsing forms of multiple sclerosis,” said Jay Backstrom, M.D., Chief Medical Officer and Head of Global Regulatory Affairs for Celgene. “We will work with the FDA to expeditiously address all outstanding items and bring this important medicine to patients.” Shares -7.4% in AH. The selloff is over-reaction. The rev of ozanimod for MS is not big deal for CELG. However, investors might be disappointed by the manager team.

Earnings in AH


  1. Express Scripts (ESRX +1.3%): Q4 EPS of $2.16 beats by $0.07. Revenue of $25.4B (+2.2% Y/Y) beats by $290M. Shares +3.6% in AH.
  2. Jazz Pharmaceuticals (JAZZ -2.5%): Q4 EPS of $2.95 misses by $0.06. Revenue of $436.4M (+10.0% Y/Y) misses by $4.91M. Shares -1.2% in AH.
  3. Booking Holdings (PCLN +1.5%): Q4 EPS of $16.86 beats by $2.74. Revenue of $2.8B (+19.1% Y/Y) beats by $100M.
  4. Square (SQ -1.4%): Q4 EPS of $0.08 beats by $0.01. Revenue of $616M (+36.3% Y/Y) beats by $14.37M.
  5. Workday (WDAY +0.3%): Q4 EPS of $0.28 beats by $0.08. Revenue of $582.48M (+32.5% Y/Y) beats by $8.79M. Shares -2.5% in AH.
  6. B&G Foods (BGS -2.5%): Q4 EPS of $0.57 beats by $0.01. Revenue of $473.68M (+14.5% Y/Y) misses by $8.44M. Shares -12.5% in AH with light volume.
  7. Etsy (ETSY -0.4%): Q4 EPS of $0.36 may not be comparable to consensus of $0.09. Revenue of $136.27M (+23.6% Y/Y) beats by $3.72M. Shares +14% in AH.
  8. EOG Resources (EOG-2.3%): Q4 EPS of $0.69 beats by $0.17. Revenue of $3.34B (+39.2% Y/Y) beats by $300M. Shares -5.6% in AH.
  9. Albemarle (ALB +1.3%): Q4 EPS of $1.34 beats by $0.13. Revenue of $857.8M (+23.1% Y/Y) beats by $62.26M. Shares +2.4% in AH.
  10. Weight Watchers (WTW -2.6%): Q4 EPS of $0.37 beats by $0.06. Revenue of $312.5M (+16.9% Y/Y) beats by $4.93M. Guidance is strong FY18 revenue of $1.55B vs. $1.44B consensus and EPS of $2.40-$2.70 vs. $1.90 consensus. Shares +5% in AH. 
  11. TiVo (TIVO -0.4%): Q4 EPS of $0.15 vs consensus $0.39. Revenue of $214.24M (-15.1% Y/Y) beats by $4.79M. Shares +14% in AH.

My Trades Today


  • Bought CMCSA @ $36.8

Earnings Tomorrow


  • pre-market:   CLH, LOW, MYL, SSYS, TJX, VALE
  • Post-market:  AHT, BOX, CRM, DDD, LB, MNST, SGMS, UHS

Comments

  1. UnknownFebruary 27, 2018 at 2:56 PM

    这个WTW真的是没人能阻挡它的上涨。每次烧它的都被烧。不是很理解为什么股神看好航空业，从去年下半年开始航空业出现很多问题，航空股很多是value trap。还有问一下为什么中钙本周跌幅这么大？怕帝制后公有化？

    ReplyDelete
    Replies
    1. UnknownFebruary 27, 2018 at 3:05 PM

      WTW自从被Oprah背书之后，就飞黄腾达了。Oprah能量太大。航空股算是PE低的，最近本来涨的好好的，结果UAL要打价格战，整个板块都蔫了。中概我的感觉是一阵阵的，涨起来猛，而且经常大家一起涨，猪起来会很久都不动。

      Delete
  2. UnknownFebruary 27, 2018 at 3:45 PM

    In the CELG call, the management reaffirms 2018 guidance and says they'll start doing stock buyback tomorrow. There is no reasons to be panic now. I am waiting for the good news from Juno

    ReplyDelete

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