iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
18,474 Blog Posts

Morning Poppers (Higher Rates Are Good For Stocks Edition

The data is empirical and cannot be argued with. Higher interest rates precedes higher stocks. The rub with that argument is there is an ebb tide, a point at which rates are too high and then totally fuck the mortgage market. But for now, we’re good. The cock-suckers at the Fed have managed to hike rates without dropping depth charges on investors, so that’s a good thing.

The EuroFAGS will follow suit and before you know it, there will be a global banking crisis on monumental importance and we could all thank the central banks for hiking rates into trillions upon trillions of dollars of sovereign debt.

You know we’re never paying off this debt, right?

Gold, oil, and silver are all higher this morning — up ~0.75%. The euro is off by 0.4% and Nasdaq futs are +18. I’m thinking shit is gonna run higher again, but also gold stocks might run too. Keep an eye on that.

European QE is coming to an end.

The bank said Thursday that if incoming data followed its forecasts, then its monthly bond purchase program would be extended through to the final quarter of the year, though at a lower pace. This means the program would likely end in December if the euro zone economy remained resilient.

And here are this morning’s movers.

Gapping up/down: TLRD -18% and MIK -16% after earnings, ORCL -2%, KSS -2% and XPO -2% after downgrades

Gapping up
In reaction to strong earnings/guidance
:

  • N/A.

Other news:

  • TLGT +19.3% (received FDA approval of the Company’s abbreviated new drug application of Diflorasone Diacetate Ointment 0.05%; planning to launch this product in the third quarter of 2018)
  • APTO +10.5% (enters into a license agreement with CrystalGenomics for China rights to CG-806 to develop and commercialize CG-806)
  • NVAX +4.3% (New England Journal of Medicine publishes Novavax’ NanoFlu clinical trial data)
  • PVTL +3.8% (continued strength following earnings)
  • ARGX +2.6% (announces results from its Phase 1 clinical trial evaluating a subcutaneous formulation of efgartigimod)
  • GSK +2.1% (GSK received FDA update concerning pending approval for generic Advair Diskus; FDA identified minor deficiencies to be relayed in Complete Response Letter on June 27, 2018)
  • NUAN +2% (following CNBCFastMoney mention)
  • SAGE +1.3% (SAGE Therapeutics and Shionogi & Co enter strategic collaboration to develop and commercialize SAGE-217)

Analyst comments:

  • NUS +1% (initiated with a Buy at Jefferies)

Gapping down
In reaction to disappointing earnings/guidance
:

  • TLRD -18%, MIK -15.6%, FRED -2.9%

Other news:

  • KTWO -7.3% (announces private offering of $65.0 million aggregate principal amount of convertible senior notes)
  • CISN -3.1% (announces 12.0 mln share offering by selling shareholders)
  • MYL -3% (received FDA update concerning pending approval for generic Advair Diskus; FDA identified minor deficiencies to be relayed in Complete Response Letter on June 27, 2018)
  • CGC -2.4% (to offer C$400 mln aggregate principal amount of convertible senior notes due 2023 )
  • EXK -2.2% (entered into at-the-market offering of up to $35.7 mln )
  • ASUR -2.1% (to offer common stock in an underwritten public offering by Asure and iSystems Holdings selling stockholder)
  • TAL -1.9% (following Muddy Waters report)

Analyst comments:

  • TEX -4.2% (downgraded to Sell from Neutral at Goldman)
  • ORCL -2.3% (downgraded to Neutral from Overweight at JP Morgan)
  • KSS -1.7% (downgraded to Neutral from Buy at Citigroup)
  • XPO -1.7% (downgraded to Neutral from Buy at BofA/Merrill)
  • SPOT -0.5% (initiated with a Hold at Deutsche Bank; tgt $155)
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