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Ahead of Wall Street

Friday, December 15, 2017

Market participants are looking for a fourth-straight “up” week today, as the final trading day sees futures up across all major American indexes. It does not appear equities trading is factoring in anything like a tax bill failure to passage, regardless of headlines concerning Florida Senator Marco Rubio to the contrary.

21st Century Fox FOXA looks to have a good start to the weekend, with not only a $52.4 billion buyout deal on the table from Disney DIS but a new Star Wars movie, “Star Wars: The Last Jedi,” hitting theatres today around the world. Some calculate this — reportedly the most favorably-reviewed Star Wars epic since “The Empire Strikes Back” — to be one of the strongest grossing films of all time, right out of the gate.

The film, budgeted at an ungodly $200 million, also looks to foster a gigantic merchandising industry, which may bring a cool $3 billion in Star Wars-related products alone. And because the Disney deal is unlikely to take place soon — the companies themselves self-imposed a 12-18 month span — Fox shareholders should reap the rewards in the meantime.

Escape to Earnings Island

Each quarter, there is a strange bit of business where a few key names in the S&P 500 report quarterly earnings — outside the heavy traffic of “official” earnings season — and yesterday after the closing bell was one of those days:

Although Oracle ORCL beat earnings in its fiscal Q2 2018, weaker-than-expected results from its cloud business has helped sell off Oracle shares in the pre-market roughly 5% at this hour. For more info on ORCL’s earnings release, click here.

Zacks Rank #2 (Buy)-rated Adobe Systems ADBE beat estimates and raised guidance, on strength in its Digital Media Solutions business, which rose 29% year over year. For more info on ADBE’s earnings release, click here.

Costco’s COST fiscal Q1 2018 kicked off the new term on the right foot, topping earnings estimates by a penny on better-than-expected sales in the quarter. Revenues grew more than 13% year over year. For more info on COST’s earnings release, click here.

Mark Vickery
Senior Editor

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Stocks On The Move

Company Symbol Price $Change %Change
Pixelworks, Inc. PXLW 6.02 0.51 9.26
DMC Global Inc. BOOM 22.75 1.85 8.85
Drive Shack Inc. DS 5.81 0.32 5.83
Comtech Telecommunications Corp. CMTL 23.15 1.10 4.99
Rush Enterprises, Inc. RUSHA 49.53 2.21 4.67

Stocks Research Reports

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CA Inc. CA No report
Zendesk, Inc.. ZEN View Snapshot Report
ZALANDO SE A.. ZLNDY View Snapshot Report
Zynga Inc. ZNGA View Snapshot Report
Zte Corp. ZTCOY View Snapshot Report

Downgrades

Company Name Symbol Report
CA
Zendesk, Inc.. ZEN View Snapshot Report
ZALANDO SE A.. ZLNDY View Snapshot Report
Zynga Inc. ZNGA View Snapshot Report
Zte Corp. ZTCOY View Snapshot Report

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1800FLOWERS... FLWS Retail - Mai.. View Snapshot Report
1ST CONSTIT .. FCCY Banks - Nort.. View Snapshot Report
21VIANET GP-.. VNET Internet - S.. View Snapshot Report
22ND CENTURY.. XXII Tobacco View Snapshot Report
2U INC TWOU Internet - S.. View Snapshot Report

Earnings and Economic News

Key Earnings Reports For Dec 15, 2017

Economic Event Reported
(+) Treasury bills (3 mth) - Dec 15, 2017 4:15 PM Eastern Time
(+) Treasury notes (10 yr) - Dec 15, 2017 4:15 PM Eastern Time
(+) Federal Funds Rate - Dec 15, 2017 4:15 PM Eastern Time
(+) Industrial Production - Dec 15, 2017 --
(+) NY Empire State Index - Dec 15, 2017 --
(+) Net Foreign Purchases - Dec 15, 2017 --
(+) Capacity Utilization - Dec 15, 2017 --