Mid-Morning Look 11:15AM EST

Wednesday, September 24, 14

Index Up/Down % Last
DJ Industrials 28.04 0.16% 17,083
S&P 500 3.21 0.16% 1,986
Nasdaq 13.65 0.30% 4,522
Russell 2000 3.69 0.30% 1,122

Equities initially reversed from earlier highs, falling for a 4
th
consecutive day, but have since recovered;
data today better, as Aug New Home Sales jump; euro falls to lowest since July 2013, while dollar index
best levels since 2010; treasuries little changed; commodity prices volatile on dollar/oil inventory data;
energy complex remains under pressure as stocks still falling; several new issues open for trading

Aug New Home Sales reported at 504K (6-yr highs), a rise of 18K, and above estimates for 430K reading;
the previous three months new home sales data revised up 15k; the median new home price rose 8.0%
YoY to $275,600; said months supply at 4.8 in Aug. down from 5.6 in July

Four new issues start trading today as Citizens Financial (CFG) 140M share IPO opened at $21.50, in-line
with pricing at $21.50 (note deal price was cut from $23-$25 range 2
nd
largest IPO offering of the year);
CyberArk (CYBR) 5.36M share IPO opened at $25 (priced at $16.00), Medley Management (MDLY) 6M
share IPO opened at $16.99 (priced at $18.00); Smart & Final Stores (SFS) 13.45M share IPO opened at
$13.10 (priced at $12.00)

Treasuries, Currencies and Commodities
In Currency markets, the Euro fell below the 1.28 level against the dollar for the first time since
July 2013 - ECB President Draghi says to remain accommodative for a long time, while U.S. gets
closer and closer to ending easing efforts/potentially hiking rates mid 2015; Dollar index jumping
this morning (better Housing data helps), trading above the 85 level for first time since July 2010);
the yen little changed on day, erasing earlier gains vs. the dollar
Commodity prices opened lower, with oil and gold falling on weaker dollar, but seeing bounce off
year lows in a few segments; bullish inventory data reversed crude to upside, after data showed
an unexpected weekly drawdown for crude by -4.3M barrels (vs. DOE est. 750K build), while
gasoline inventories fell -414K barrels vs. est. unchanged; gold prices little changed at around
$1,220 an ounce, seeing bounce in corn and wheat prices this morning on no news
Treasury markets little changed, with yield on 10-yr at 2.533% (still about 10 bps off last week
highs); lone data point a positive this morning, as August New Home Sales jump more than
forecast; another Treasury auction today, as US to sell $35B in 5-year notes (yield around 1.77%),
which follows very strong demand for 20-yr note offering yesterday


Macro Up/Down Last
WTI Crude -0.34 91.22
Brent -1.21 95.64
Gold -1.30 1,220
EUR/USD -0.0051 1.2794
JPY/USD -0.05 108.83
10-Year Note 0.003 2.536%


Sector Movers Today
Commodity complex weakens amid surging dollar; energy and commodity prices falling as dollar
strengthening continues; weaker oil prices and stocks, while metals down mostly across the
board; the dollar index jumping this morning to best levels since July 2010); names like X, FCX,
CLF, oil stocks weaker mostly across the board (HAL, SLB, APC, RRC, RDC, RIG, CVX, XOM)
Housing stocks under pressure early after KBH missed Q3 revs ($589M vs. est. $646M), and said
Q3 orders rose 5% vs. Bloomberg est. 11%; headlines weighed on shares of other builders LEN,
PHM, RYL, TOL, DHI early; group pared losses after Aug New Home Sales reported at 504K, a rise
of 18K, well above estimates for 430K reading
Sand fracking names volatile for a 2
nd
straight day group weak Tuesday after Cramer on CNBC
said investors should avoid stocks (HCLP, SLCA); today, group with relief rally after an analyst
upgrades shares of HCLP to buy (though said favorite name was EMES)
Retail movers; BBBY profit fell, but Q2 EPS/comps both top consensus (guidance in-line); URBN
active after hosting investor day yesterday; SKX shares fell after SportScan data indicated that SKX
total footwear declined 3%; furniture maker SCS Q2 eps/revs both slightly above consensus
guidance in-line (MLHR, HNI KNL rise in reaction); WAG is exploring the sale of a majority stake in
its infusion services business, in a deal that could value that division at around $1.5 billion
http://goo.gl/YJzrv2

Stock GAINERS
ACOR +15%; to acquire privately held Civitas Therapeutics for $525M http://goo.gl/HUZdfS
BBBY +6%; profit fell, but Q2 EPS/comps both top consensus (guidance in-line)
CELG +1.5%; follow through after FDA OTEZLA for moderate-to-severe plaque psoriasis
GDOT +13%; announces nationwide rollout of GoBank (checking account product) w/WMT
HCLP +4%; upgraded to buy at Wunderlich (sand stocks fell sharply yesterday EMES, SLCA)
LNKD +2%; positive analyst comments at OTR Research
LPCN +35%; testosterone therapy meets main target
MACK +7%; to get $100m upfront in Baxter Cancer treatment pact
MTN +2%; Q4 revs top views, but Ebitda loss more than expected
MRVL +2%; upgraded to OP at JMP Securities
PAYX +1.5%; Q1 eps/revs top views/reaffirms year eps and rev outlook
SCS +10%; Q2 eps/revs both slightly above consensus guidance in-line
SCTY +8%; Goldman Sachs reiterated top pick saying $500M convert removes overhang
STRZA +4.5%; FOXA said to discuss acquisition of STRZ - LA Times http://goo.gl/8FK5RE ; the WSJ
reported STRZA met w/FOXA, but said not to be interested in deal http://goo.gl/kw0aJ9




Stock LAGGARDS
ACN -1.5%; Q4 eps/revs mixed, but guides Q1 and year revs below views
AIR -7%; results miss estimates and lowers year eps view to $1.65-$1.75 (est. $1.87)
CRS -1%; said cost, output, and mix issues at its SAO locations will negatively impact Q1 EPS
EMC -1%; CSCO CEO says not potential acquirer of EMC Reuters http://goo.gl/TeKi0z
EGLT -24%; says will need to conduct additional trials to strengthen NDA
ERIC -1.4%; cut to neutral at UBS as thesis for a strong wireless capex environment played out
GTI -19%; cut the midpoint of its prior 2014 consolidated EBITDA forecast by 23% ($32.5M)
KBH -7%; Q3 revs miss ($589M vs. est. $646M), and said Q3 orders rose 5% vs. est. 11%
MDVN -2.5%; downgraded to neutral at Goldman Sachs; cuts tgt to $90
SKX -10%; SportScan data indicates that SKX total footwear declined 3%



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