Morning Poppers (Nothing Says Trade War Like Withdrawing from the WTO Edition)

Dr. Fly Fri Jun 29, 2018 8:36am EST 1 Comment

What a lovely morning. I woke up to my coyote snapping her teeth in my face again. I ventured off outside half awake and she nearly tore my arm from my socket after seeing a family of nice deer on my lawn. The Mother deer, seemingly frightened half to death at the specter of seeing a fucking coyote steam out of a human house, stepped forward to face her in final combat, before my coyote got to eat her and all of her children.

Lucky for the nice family of deer, who were all very thin and perfect, I directed my coyote towards the trees and the bushes, to chase after the fox and the squirrels instead.

Nasdaq futures are +37 and that’s incredible because Trump, reportedly, want to remove the US from the WTO.

Axios is reporting that Trump has told several top White House officials he wants to withdraw the United States from the WTO.

“He’s [threatened to withdraw] 100 times. It would totally [screw] us as a country,” one source told the media outlet. The same source said Trump has told his advisors, “We always get f—ed by them [the WTO]. I don’t know why we’re in it. The WTO is designed by the rest of the world to screw the United States.”

This is like a finance version of Bush’s ‘you’re either with us or against us’ approach to diplomacy. Unfortunately, Twitter wasn’t around back in those early days and none of us were able to properly mock Bush. But now with Trump, we are very much afforded that luxury.

Banks are super strong this morning following the Fed permitting banks to return capital to shareholders. We’re finally getting back to normal, a period in time when the banksters will be able to wantonly approve of loans to homeless people in exchange for big fat bonuses and fees for doing God’s work.

Off to run an errand. Here are this morning’s movers.

Gapping up/down: NKE +10%, KBH +7 and RYI +3% after earnings, MSG +1% after upgrade; STZ -5% after earnings, SLCA -1.6% after downgrade

Gapping up
In reaction to strong earnings/guidance:

NKE +9.7%, KBH +7.2%, RYI +3.6%, (sees Q2 revenue guidace at $1.04-1.05 bln vs. $1.03 bln Capital IQ Consensus Est; co anticipates quarterly year-over-year volume growth in nearly all end markets), GBX +0.5%

M&A news:

GNW +1.8% (Genworth Financial and Oceanwide extend merger agreement)

Select financial related names showing strength:

WFC +3.6% (receives no objection to its 2018 capital plan, including dividend boost), BBT +2.7% (to increase the quarterly dividend $0.03 to $0.405 per share after Federal Reserve System accepted its capital plan/did not object to proposed capital actions), HBAN +2.6% (receives no objection from Federal Reserve for proposed capital actions in 2018 CCAR; proposed capital actions include a 27% increase of the quarterly dividend and the repurchase of up to $1 bln of common stock), DB +2.4% (Federal Reserve did not object to the DBUSA Capital Plan on a quantitative basis; it did object to the Capital Plan for qualitative reasons), FITB +2.1% (says Fed did not object to it proposal for potential capital actions, will boost dividend by 33%), RF +2.1% (announces CCAR Results; Federal Reserve does not object to co’s proposed capital actions, including increasing dividend to $0.14, $2.031 bln stock repurchase program), KEY +2% (announces that Federal Reserve has no objection to capital plan; actions include 42% increase to quarterly dividend to $0.17/share, share repurchase program of up to $1.225 bln), C +1.8% (announces Federal Reserve Board does not object to the planned capital actions requested by Citi as part of the 2018 Comprehensive Capital Analysis and Review), JPM +1.7% (announces 2018 CCAR results; firm’s capital plan receives no objection from Federal Reserve; announces quarterly dividend increase to $0.80/share from $0.56/share and authorizes repurchase of $20.7 bln shares of common stock), BAC +1.4% (reports the Federal Reserve did not object to the co’s capital plan, which includes a quarterly dividend boost of +25% to $0.15/share and $20.6 bln common stock repurchase), USB +1% (ups dividend and announces buyback authorization), BK +1% (to boost dividend by 17% and repurchase up to $2.4 bln in stock, Fed does not object to plan), .

Other news:

GEMP +155.2% (meets primary endpoint in INDIGO-1 study of Severe Hypertriglyceridemia patients), XLRN +25.4% (Celgene and Acceleron announce luspatercept achieved primary and key secondary endpoints in Phase III ‘MEDALIST’), DERM +16.1% (receives FDA approval for Qbrexza), APTO +12.4% (FDA has lifted the clinical hold on APTO-253), ACAD +9.5% (FDA approval of a new capsule dose formulation and a new tablet strength of NUPLAZID), TRVN +9.3% (announces successful completion of Phase 1 study of TRV250 for treatment of acute migraine), VRTX +8.4% (following GLPG CF trial update), HUYA +5.5% (HUYA and Tencent (TCEHY) sign strategic cooperation deal), PBYI +5.5% ( EMA’s CHMP adopted a positive opinion recommending marketing authorisation for the medicinal product NERLYNX), NVS +3.4% (announces intention to seek shareholder approval for 100% spinoff of Alcon eye care devices business; initiates share buyback of up to $5 billion), FCAU +3.2% (attributed to speculation of Hyundai (HYMTF) interest), MIK +2.9% (initiates $250 mln accelerated common share repurchase agreement), CELG +2.1% (Celgene and Acceleron announce luspatercept achieved primary and key secondary endpoints in Phase III ‘MEDALIST’), SNY +1.7% (announces that the EMA’s CHMP has recommended approval of Cablivi in Europe), ZIOP +1.6% (enrolled the first patient in its Phase 1 clinical trial to evaluate Ad-RTS-hIL-12 plus veledimex in combination with OPDIVO in adult patients with recurrent glioblastoma),SKX +1.6% (following NKE results), FL +1.5% (following NKE results), SPPI +1.2% (presents data from the ADVANCE Phase 3 study), .

Analyst comments:

GMS +2.1% (upgraded to Strong Buy from Outperform at Raymond James)
BHF +2% (upgraded to Outperform from In-line at Evercore ISI)
NBR +1.9% (upgraded to Outperform from Market Perform at Wells Fargo)
PDM +1.5% (upgraded to Buy from Neutral at DA Davidson)
MSG +1.2% (upgraded to Outperform from Neutral at Macquarie)

Gapping down
In reaction to disappointing earnings/guidance:

STZ -5.2%, SNX -3.9%, (also confirms CVG deal)

M&A news:

CVG -1.4% (Convergys to be acquired by Synnex subsidiary Concentrix for approx. $2.43 bln)

Other news:

GLPG -6.2% (reports topline results of PELICAN trial – GLPG2737 achieved primary efficacy endpoint and updates on triple combo development plans )
DSX -2.9% (files for $500 mln mixed securities shelf offering)

Analyst comments: