Professional Documents
Culture Documents
Index
Up/Down
Last
DJ Industrials
-2.70
0.02%
17,612
S&P 500
-1.45
0.07%
2,038
Nasdaq
14.48
0.31%
4,675
Russell 2000
6.94
0.59%
1,186
Commodities
Energy futures end lower (3-year lows for WTI crude); WTI crude fell about 1%, while Brent
dropped 2%, below $80 per barrel (first time since 2010); same concerns every day, with
inventory glut amid U.S. increased production, and as OPEC has not intervened by cutting
production. Front-month Brent dropped as low as $79.88 amid global supply-demand imbalance,
growing consensus OPEC is unlikely to curtail production at Nov. 27 meeting
Gold prices fell $3.90 to settle at $1,159.10 an ounce; note if gold were to close out the year
right now where it is, it would be looking at its first back-to-back yearly loss since 1997 (gold is
currently off almost 4% on the year amid a surging dollar and lack of inflation
Currencies
The dollar ended higher; the dollar index (DXY), which was flat early, spiked midday (rising to
87.89 high, up 0.32), after holding around the 87.50 level earlier; dollar traded above 116 vs. the
yen yesterday, the first time since October 2007, but has pared gains (back down to 115.60) as
now some debate on sales tax increase/early elections; the euro was little changed earlier,
faltered on the day, moving near session lows late; the British Pound fell to 14 month lows after
the BOE signaled the first rise in rates wont come until the second half of next year, surprising
currency investors who were banking on a hike in the second quarter ($1.5786)
Bond Market
Treasury markets were active early (after being closed yesterday for Veterans Day Holiday);
bonds stronger initially amid first sign of weakness in equities in more than a week, but as
equities rallied, bonds sold off, with yield on the 10-yr trading back prior (2.36%). The U.S.
Treasury auctioned $24B in 10-year notes at yield of 2.365% (in-line with level prior to auction),
with bid-to-cover at 2.52 (in-line with prior auction but down from 2.75 over last 4); indirect
bidders awarded 44.7% of auction (also in-line with prior)
Macro
Up/Down
Last
WTI Crude
-0.76
77.18
Brent
-1.63
80.04
Gold
-3.90
1,159.10
EUR/USD
-0.049
1.2426
JPY/USD
-0.17
115.61
+0.004
2.364%
10-Year Note
Energy
Energy stocks mixed, as oil prices remain depressed
Solar stocks gave up early gains; U.S. and China announced a deal on climate change yesterday,
with China committing clean energy sources, including solar energy and windmills, would account
for 20% of its total energy production by 2030 (FSLR, YGE, TSL, SPWR active today); CSIQ
reported Q3 revs/eps above consensus (but shares reversed)
Alternative energy; PLUG Q3 EPS/revs miss, which weighs on other fuel-cell stocks (FCEL, BLDP)
Utility sector underperforms, down more than 1.5% today, but note the group up over 10% the
last 3-months (and just off record highs); shares of FE, EXC, WEC, PEG all down over 2% today
Coal stocks gain on the day, led by strength in BTU (outperformer); group has been relatively
strong since the election last week, as Republican Senate seen as more coal friendly regarding
regulation; shares of ANR, ACI, CNX, WLT rose
Financials
M&A news; BBT to acquire SUSQ in a cash and stock transaction for total consideration valued at
approximately $2.5 billion, with SUSQ holders to get $13.50 per share http://goo.gl/GYxZDP
Banking stocks under pressure; Regulators in the U.S., Britain and Switzerland ordered five banks
to pay about $3.3 billion in the first wave of penalties in FX manipulation probe; UBS to pay
$800M, C $668M, JPM $662M, RBS fined about $634M and HBC $618M; BCS, which had been in
settlement talks, said it wasnt ready for a deal http://goo.gl/V20oJn
Mortgage services stocks remain in the news; ASPS falls as discontinuing Lender Placed Insurance
(LPI) brokerage line of business given uncertainties with industry-wide litigation and the
regulatory environment. (group has fallen on weakness from OCNNSM, WAC still lower)
Other stories; BBSI files form to delay 10-Q
Healthcare
ACT in talks to acquire AGN for over $60B, seeking to pay about $200 http://goo.gl/C0mqrT
Biotech stocks; ICPT falls as much as 12% (Leerink said, citing two physicians, treatment
community desperate for a drug to treat NASH, remains to be seen if ICPTs OCA has what it
takes to gain approval on an accelerated basis); overall biotech down slightly
In animal health space; ZTS late yesterday, WSJ reported Bill Ackman took 10% stake
http://goo.gl/BkEXbQ ; PAHC, rises after boosting 2015 EPS/sales forecast after Q1 results (also
up on the ZTS sympathy)
Movers on news; AMPE said primary/secondary results from Strut study available on Q115;
OREX extends gains for a third day after earnings beat; DRRX rises as says FDA may need only
one more Posidur trial; ACHN rises, as emerging hepatitis C portfolio is attracting attention as
results from clinical assets have been encouraging (Bloomberg)
Industrials & Materials
Transports little changed (just off record highs); rails rise early on CP comments as CEO said at a
conference it sees a case for rail consolidation, yet co. has moved away from merger discussions
since there wasnt receptivity to merger talks (CSX/NSC up earlier)
Airline stocks fall; group has been an outperformer, helped by better monthly industry data
points and lower energy prices; JBLU downgraded to neutral at JP Morgan today on valuation
ahead of high expectations into the airliner's investor day next Wednesday (group seeing some
profit taking with AAL, UAL, DAL lower)
Industrial movers; DHR upgraded at FBR Capital to buy; ROK Q4 mixed report (better eps/revs
light); CAT reaffirmed guidance at sell-side conference; GWW
Chemicals/coatings; DOW adds $5B to share buyback and increases dividend by 5c to 42c; LYB
authorizes interim dividend of 70c; AXTA 50M share IPO priced at $19.50 per share
Want a free trial to The Hammerstone Report 4x Daily ? Sign-up for a trial today at www.
thehammerstonereport.com
***DISCLAIMER/LIMITATION OF LIABILITY: Hammerstone Inc. (the Report) provides information and data and does NOT provide any individual investment advice or money management
assistance and does NOT attempt to influence the sale or purchase of securities. The Report is intended for informational purposes only and does not claim to be actionable for investment
decisions. The information contained in the Report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. The
Report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer t o buy or sell any securities. The Report is prepared for
general information purposes only and does not consider the specific investment objectives, financial situation, and particular needs of any individual subscriber, person, or entity