Professional Documents
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Index
Up/Down
Last
DJ Industrials
39.81
0.23%
17,613
S&P 500
6.34
0.31%
2,038
Nasdaq
19.08
0.41%
4,651
Russell 2000
3.83
0.33%
1,177
Commodities
Energy prices fall; it was another volatile session for energy prices, as WTI crude ended at $77.40
per barrel (down 1.6%) after rising just shy of $80 earlier. Another rally fizzled amid a stronger
dollar and after OPEC signaled, yet again, that it would not cut production to boost prices. Brent
crude dropped over 1% after rising as high as $84.97 a barrel. OPEC Secretary General Abdullah
al-Badri told markets not to panic over low oil prices at an industry conference in Abu Dhabi,
according to reports (note OPEC meeting upcoming). Oil had gotten a boost earlier from news of
renewed fighting in the Ukraine-Russia conflict and positive Chinese economic data
The national average for gasoline prices dropped to $2.93 a gallon; natural gas prices pull back
from highs of $4.54 mln btu, to trade down -0.15 to $4.26 mln btu (had spiked from lows of $3.54
mln btu on 10/27 on cold weather forecasts)
Gold prices fell $10, or 0.9% to $1,159.80 an ounce; news of a significant new Russian incursion
into Ukraine faded over the weekend without significant expansion. With no real notable followthrough besides intensified fighting, and no threat to the dollar, the gold downtrend resumed
(the rising dollar once again took its toll on commodity prices today)
Currencies
The dollar bounced off overnight lows to finish higher against the yen and euro; the dollar index
(DXY) rose 0.12 to 87.763 on the day (4-year highs still), up against the yen to 114.85 (ended near
highs of day, while the euro fell -0.2%, to $1.2427 (the move higher today follows a 2% jump last
week against the yen and 0.6% vs. the euro). No major economic data points today for currencies
to trade with
Bond Market
Slow bond market sell-off today, as yields, which opened to the downside, quietly inched higher
throughout the afternoon, with the 10-yr yield touched 2.35% (was below 2.3% early)
Macro
Up/Down
Last
WTI Crude
-1.25
77.40
Brent
-1.05
82.34
Gold
-10.00
1,159.80
EUR/USD
-0.0031
1.2422
JPY/USD
0.22
114.84
+0.046
2.356%
10-Year Note
Financials
Another sector with now a lot of movement on news outside of a couple individual stock stories;
major banks (C, MS, JPM, GS little changed most of the day); LUK positive
Asset managers; EV downgraded by two firms noting after the run-up in shares Friday post SEC
approval of EV's exchange traded managed funds (ETMF) structure; JNS said saw over $1B in inflows
after Gross hiring
Mortgage services; WAC cut to neutral at Sterne Agee (tgt to $21), but Morgan Stanley said
downside risk more-than priced into shares at 0.6x book value, even with 3Q miss; SGM
downgraded at FBR Capital (also weakness in shares of AGM, TREE)
Insurance stocks mixed (names like LNC at 52-week highs, PRU bounces after pullback last week
post earnings; GNW weakness continues as now sees added capital required to meet PMIER
$500-$700M (saw $450M-$550M)
Healthcare
Relatively quiet overall for healthcare outside of a few select biotech stories; seeing hospitals
(UHS, CYH, THC, HCA) recovering after Fridays pullback on reports the U.S. Supreme Court will
rule on a new challenge to the Affordable Care Act that examines whether subsidies offered
under the law are legal
Movers on analyst calls; ICPT tgt cut to $125 at FBR Capital; XOMA downgraded at Ladenburg;
BMRN upgraded to buy with $104 tgt at Goldman Sachs; KPTI upgraded at Oppenheimer on ASH
abstract data ($53 tgt); MYGN initiated with Underweight at Morgan Stanley; TKMR falls after
Glaucus rates strong sell and $7-$10 tgt)
Movers on news; RDHL said FDA grants QIDP Fast-Track Designation to its Phase III H. pylori Drug
RHB-105; SAGE said its drug meets primary/secondary targets in Epilepticus study; DNDN files for
Chapter 11 bankruptcy; GILD rises after MRK will not move forward with its 4-week Hep C
treatment (also lifts ACHN, RGLS, ABBV early); ARQL Tivantinib works in prostate cancer/fails
another test
Industrials & Materials
Ag & Machinery; ag stocks were little changed despite the USDA forecasting corn at 173.4
bushels per acre below 174.2 last month and est. of about 175.2 (ending stocks 2B bushel vs. avg
~2.2B bushel); soybeans estimated at 3.958B bushels from 3.927B last month (despite the bullish
data, little movement in ag related names DE, POT, MOS on the data
Transports reach another record higher (up more than 1% midday), led by strength in rails; NSC
upgraded to Overweight at Morgan Stanley citing potential industry consolidation that supports
attractive risk/reward, and accelerating core pricing gains; almost all of the 20 components in the
DJ Transport Index ended higher airlines also led the way (JBLU, ALK, LUV) on monthly data
Airlines; AAL said RPMs rose 0.2%, total capacity was 21.8 billion available seat miles (ASMs), up
0.5% and total passenger load factor was 82.2% (all YoY); LUV said Oct PRASM up 3%-4%,
Capacity unchanged and traffic was up 4.4%
Industrials; GWW cut to sell from hold at Deutsche Bank as pricing pressures/competition
squeeze margins; machinery/equipment names advanced with broad market rally
Metals & Mining; Gold mining stocks back under pressure after jumping on Friday; shares of
NEM, ABX, GG, KGC, AUY among losers on the day; in steel sector, Hebei's APEC Air Quality
Control Department issued an Emergent Notice on APEC Air Quality Control Measures, requiring
suspension of 100% of steel mills and cement plants (11/7-11/11)would reduce crude steel
output by 2mnt in total; some names rallied early on better China data, but end mixed
Paper & Forest names; RYN falls after cutting dividend and restating earnings; Goldman Sachs
says it is building in an MLP premium into its share price targets for containerboard stocks it
covers, to reflect recent commentary from IP, RKT, and PKG
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