Stocks edged higher again today as the S&P 500 continued to flirt with its record high.
The S&P 500 climbed 0.3% and the Dow Jones Industrial Average added 67 points, or 0.4%. The Nasdaq Composite rose 0.3%. The S&P 500 is just 0.55% away from its record close of 2,130.82.
Deutsche Bank’s Alan Ruskin offers some reasons to “participate in the ‘risk bleed up’” in global markets:
i) Global risk appetite was trading very well even into the elevated expectations of a Fed rate hike (post April FOMC minutes, pre-May NFP) so the soft payroll data, delaying a Fed rate hike, fell on a receptive market, sympathetic to a positive risk scenario.
ii) Participation is low because the risk bleed up involves trading events that are not happening (no Fed rate hike and no China FX instability), which is normally less actively embraced than trading events that do happen (Fed rate hike, China FX instability). This reduced participation only gives the move more scope to run.
5 Best Supermarket Stocks For 2016: Mastercard Incorporated(MA)
MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers? cheque programs. Its payment solutions include payment programs, marketing, product development, technology, processing, and consulting and information services. The company provides transaction processing services comprising transaction switching, which include authorization, clearing, and settlement; connectivity services, such as network access, equipment, and the transmission of authorization and settlement messages; and other payment-related services consisting of products used to prevent or detect fraudulent transactions, cardholder services, professional consulting and research services, compliance and penalty, account and transaction enhancement services, holograms, and publication services. MasterCard Incor porated manages and licenses payment card brands, including MasterCard, MasterCard Electronic, Maestro, and Cirrus. The company?s payment programs, which are facilitated through its brands, include consumer credit, debit and prepaid programs, commercial payment solutions, and contactless payment solutions. It serves approximately 22,000 financial institutions. The company was founded in 1966 and is headquartered in Purchase, New York.
- [By Alex Planes]
It was from these humble beginnings that Visa (NYSE: V ) was born. BankAmericard became an independent corporation in 1970 and later changed its name to Visa in 1976 as a way to broaden its appeal internationally. By this point the Master Charge had been established as a competing credit card network, and it had actually grown larger than the former BankAmericard: In the first quarter of 1976, BankAmericard/Visa claimed 31.8 million cardholders and $2.3 billion in sales volume, while the Master Charge had 37.4 million cardholders and processed $2.9 billion in sales. Master Charge, of course, is the forerunner to MasterCard (NYSE: MA ) , but it hasn’t maintained its early lead over Visa. In 2012, Visa’s total U.S. purchase volume clocked in at $981 billion compared to $534 billion for MasterCard, and Visa’s 278 million American cardholders far outweigh MasterCard’s 180 million American cardholders.
- [By Rupert Hargreaves]
Even so, thanks to its checkered past, many companies such as Visa (NYSE: V ) andMasterCard (NYSE: MA ) have been late to the party.However, astute companies, such asDeutsche Bank (NYSE: DB ) have been active in the market since the mid 1970s.
5 Best Supermarket Stocks For 2016: Teva Pharmaceutical Industries Limited(TEVA)
Teva Pharmaceutical Industries Limited develops, manufactures, markets, and distributes generic medicines and a portfolio of specialty medicines worldwide. The company operates in two segments, Generic Medicines and Specialty Medicines. The Generic Medicines segment offers generic medicines, such as sterile products, hormones, narcotics, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments, and creams. This segment also develops, manufactures, and sells active pharmaceutical ingredients. The Specialty Medicines segment provides branded specialty medicines for use in central nervous system and respiratory indications, as well as the womens health, oncology, and other specialty businesses. Its products in the central nervous system area comprise Copaxone for multiple sclerosis; Azilect for the treatment of Parkinsons disease; Nuvigil for the treatment of excessive sleepiness associated with narcolepsy and certain other disorders; Fentora庐/Effentora for the treatment of breakthrough pain in opioid-tolerant adult patients with cancer; and Zecuity, a prescription transdermal system for the acute treatment of migraine with or without aura in adults. This segments products in the respiratory market include ProAir, ProAir Respiclick, QVAR, and Duoresp Spiromax for the treatment of asthma and chronic obstructive pulmonary disease, as well as Treanda, Granix, Trisenox, Synribo, Lonquex, Myocet, Eporatio, Tevagrastim/Ratiograstim, and Trisenox products in the oncology market. This segment also offers a portfolio of products in the womens health category, which includes ParaGard, Plan B One-Step, OTC/Rx, Zoely, Seasonique, and Ovaleap, as well as other products. Teva Pharmaceutical Industries Limited has alliances and other arrangements with Takeda Pharmaceutical Company Limited and Procter & Gamble Company. The company was founded in 1901 and is headquartered in Petach ! Tikva, Israel.
- [By Ben Levisohn]
Allerganmgmt is considering a range of capital deployment alternatives. The focus on the conference call was around future capital deployment. Mgmt remains highly optimistic the Teva Pharmaceutical Industries (TEVA) deal will close by late 1H16, noting both mgmt teams are absolutely aligned on getting the deal done and the deal proceeds will be after-tax net cash/equity of ~$36B. Mgmts is currently looking at a broad range of capital deployment options including debt pay down, share buyback and M&A. In our view,Allergan will likely put the TEVA proceeds to work through a mix of these options. The company has ~$6B of debt maturing in the next 2-years which it could look to repay and there are a few small to mid-size M&A targets thatAllergan could look to acquire. In terms of timing, mgmt commented that it would not hesitate for the right opportunity which suggests to us smaller bolt-on transactions arent gated by the completion of TEVA dea l.
- [By Ben Levisohn]
Johnson & Johnson (JNJ) now has a market cap of $308 billion dollars, just a smidgen less than that of Gilead Sciences (GILD), Biogen (BIIB), Mylan (MYL), Celgene (CELG) and Teva Pharmaceutical Industries (TEVA) combined. It’s time to sell, says Standpoint Research’s Ronnie Moas:
- [By Johanna Bennett]
UBSs Marc Goodman weighed in today on Teva Pharmaceuticals (TEVA) following yesterdays run by the stocks on the heels of the better-than-expected 1Q financial results by the drug maker.
Offered up these highlight from the conference call with management, proclaiming that there are four things we believe investors need to hear.
[Management sounds] confident in the AGN deal going through and has identified buyers for the majority of products to be divested. While divestitures are higher than expected, management will cut more costs to maintain the previously expected bottom line accretion. The U.S. generic drug pricing environment has not changed, and management still sees about 4% impact in 2016, which is similar to levels last year. The underlying base business for Teva is performing as expected, and it still expects sustainable growth in the global generics business of more than 5%. That includes a 10% gain from new products offset by a 5% hit from price/volume.
Still, Goodman encourages investors to wait and see before buying the stock.
Mgt sounded confident that the AGN generics deal should move forward, and Teva needs the cost synergies to help offset the potential Copaxone generic impact. But also Teva is significantly increasing its exposure to generics, as investors are incrementally more skeptical of the sector, so we would expect investors to take a wait and see attitude on numbers. In addition to the deal, the focus is on the generic challenges to Copaxone (IPR process/Sept trial), which we think will remain an overhang on the stock.
Teva climbed more than 5% Monday and inched a bit higher today to trade at $52.85 in recent marker action. The shares have fallen 19.5% since the start of the year.
- [By Ben Levisohn]
Shares of Endo International (ENDP) have tumbled 40% today after it said profits would fall well short of analyst expectations thanks, in part, to plunging generic drug prices. Leerink’s Jason Gerberry and team look for specialty pharmaceutical companies that have similar business models–and find Akorn (AKRX), Perrigo (PRGO), and Teva Pharmaceutical Industries (TEVA). They explain:
Best Defense Companies To Buy For 2016: JAKKS Pacific, Inc.(JAKK)
JAKKS Pacific, Inc. designs, develops, produces, and markets consumer products in the United States and internationally. The companys Traditional Toys and Electronics segment offers action figures and accessories based on Batman, Star Wars, and Nintendo franchises; toy vehicles and accessories under the Road Champs, Fly Wheels, and MXS names; electronics products, such as video games under the Spy Net, Plug It In & Play TV Games, Disney, and Duck Commander brands names; fashion and baby dolls, and accessories under Disney Frozen, Disney Princess, Disney Fairies, Cabbage Patch Kids, and Graco licenses, as well as plush, infant, and pre-school toys based on PBSs Daniel Tigers Neighborhood name; private label products; foot-to-floor ride-on toys, and tents and wagons based on Fisher Price, Kawasaki, and DC Comics; and pet products, including toys, consumables, and accessories under the JAKKS Pets and American Classics brand names. Its Role Play, Novelty and Seasonal Toys segment offers role and pretend play, dress-up, and novelty products for boys and girls based on Disney Frozen, Black & Decker, McDonalds, Dirt Devil, Disney Princess, Disney Fairies, and Dora the Explorer licenses; indoor and outdoor kids furniture, activity trays and tables, room d茅cor, kiddie pools, and seasonal products based on Crayola and Disney names, as well as pool floats under the Funnoodle name; Halloween and everyday costumes, and accessories under Spiderman, Iron Man, Toy Story, Sesame Street, Power Rangers, and Hasbro, Disneys Frozen, and Disney Princess brands; and balls and sport sets, and toy hoops under the Skyball, Wave Hoops, and Maui Toys brand names. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain, department, office supply, club, and toy specialty stores; and drug and grocery store chains and wholesalers. JAKKS P acific, Inc. was founded in 1995 and is based in Malibu, Cal! ifornia.
- [By Roberto Pedone]
One under-$10 toy player that’s trending very close to triggering a major breakout trade is Jakks Pacific (JAKK), which is a producer and marketer of children’s toys and other consumer products. This stock has been destroyed by the bears so far in 2013, with shares off sharply by 60%.
If you take a look at the chart for Jakks Pacific, you’ll notice that this stock has been downtrending badly for the last two months and change, with shares plunging from its high of $11.75 to its recent low of $4.82 a share. During that downtrend, shares of JAKK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of JAKK look like they might be ready to see an end to its downside volatility in the short-term if the recent lows can hold. I believe this due to the fact that JAKK has started to move sideways and trend within range of triggering a major breakout trade.
Traders should now look for long-biased trades in JAKK if it manages to break out above some near-term overhead resistance levels at $5.08 to $5.27 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 695,817 shares. If that breakout triggers soon, then JAKK will set up to re-test or possibly take out its next major overhead resistance levels at $5.68 to its 50-day moving average at $6.07 a share. Any high-volume move above its 50-day will then put $7 to $8 into range for shares of JAKK.
Traders can look to buy JAKK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.87 to $4.82 a share. One can also buy JAKK off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
5 Best Supermarket Stocks For 2016: Stamps.com Inc.(STMP)
Stamps.com Inc. provides Internet-based postage solutions in the United States. It offers solutions for mailing and shipping various mail pieces, such as postcards, envelopes, flats, and packages using a range of United States Postal Service (USPS) mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select, and others. The companys products and services comprise USPS approved PC Postage service that enables users to print electronic stamps directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection. It also provides multi carrier shipping solutions under the ShipStation and ShipWorks brands; mailing and shipping integrations solutions comprising electronic postage for transactions to partners who manage the front-end process; sells NetStamps labels, DYMO Stamp labels, shipping labels, other mailing labels, dedicated postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies store; and Stamps.com branded insurance to insure mails or packages. In addition, the company offers PhotoStamps, a patented form of postage service, which allows consumers to turn digital photos, designs, or images into USPS-approved postages. It serves individuals, small businesses, home offices, medium-size businesses, and large enterprises. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in El Segundo, California.
- [By Javier Hasse]
Other stocks moving in Friday’s after-hours session included:
A. O. Smith Corp (NYSE: AOS), down 2.5 percent Pan American Silver Corp. (USA) (NASDAQ: PAAS), down 2.1 percent Stamps.com Inc. (NASDAQ: STMP), up 1.87 percent
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
5 Best Supermarket Stocks For 2016: Alnylam Pharmaceuticals Inc.(ALNY)
Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, engages in discovering, developing, and commercializing novel therapeutics based on RNA interference (RNAi). Its core product programs under clinical or pre-clinical development include ALN-TTR, a Phase I clinical trial program for the treatment of transthyretin-mediated amyloidosis; ALN-APC, a Phase I clinical trial program for the treatment of hemophilia; ALN-PCS for the treatment of severe hypercholesterolemia; ALN-HPN, a pre-clinical development for the treatment of refractory anemia; and ALN-TMP, a pre-clinical development for the treatment of hemoglobinopathies, including beta-thalassemia and sickle cell anemia. The company?s partner-based programs comprise ALN-RSV01, a Phase II clinical trial program for the treatment of respiratory syncytial virus infection; ALN-VSP, a Phase I clinical trial completed program for the treatment of liver cancers; and ALN-HTT, a pre-clinical development for the treatment of H untington?s disease. It has strategic alliances with Novartis Pharma AG; F. Hoffmann-La Roche Ltd; Takeda Pharmaceutical Company Limited; Isis Pharmaceuticals, Inc.; Medtronic Inc.; Kyowa Hakko Kirin Co., Ltd.; and Cubist Pharmaceuticals, Inc. The company was founded in 2002 and is headquartered in Cambridge, Massachusetts.
- [By Monica Gerson]
Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Friday's regular session.
Caterpillar Inc. (NYSE: CAT) Jan17 77.5 Calls Sweep: 1022 @ ASK $4.45: 1066 traded vs 2466 OI: Earnings 7/28 $75.88 Ref Anacor Pharmaceuticals Inc (NASDAQ: ANAC) Jan17 110 Calls: 500 @ Above Ask! $0.40: 509 traded vs 1860 OI: $99.22 Ref Ctrip.com International, Ltd. (ADR) (NASDAQ: CTRP) Jun16 41.25 Calls Sweep: 577 @ ASK $1.75: 649 traded vs 1927 OI: Earnings 6/15 After Close $40.54 Ref Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) Jun16 65.0 Calls Sweep: 749 @ ASK $1.85: 813 traded vs 370 OI: $63.08 Ref WhiteWave Foods Co (NYSE: WWAV) Oct16 50.0 Calls: 600 @ ASK $1.60: 601 traded vs 430 OI: $45.16 Ref
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