Index
Up/Down
Last
DJ Industrials
168.29
0.94%
18,127
S&P 500
18.86
0.90%
2,108
Nasdaq
34.04
0.68%
5,026
Russell 2000
11.34
0.90%
1,266
Commodities
April WTI crude oil futures (rolls to May Monday) finished Friday higher, rising $1.76, or 4% to
settle at $45.72 per barrel and posted its first weekly climb in over a month, helped the last few
days by a falling dollar (as the inventory data/fundamental landscape was not good this week
once again showing supply continues to grow). Note natural gas prices reversed negative
midday, after rising as much as 3.8% earlier.
Gold for April delivery advanced $15.60, or 1.3% to settle at $1,184.60 an ounce, registering its
first weekly gain in three. Gold posted a near 3% gain for the week, rising for a third straight
session after investors interpreted Wednesdays Fed policy statement and Fed Chairwoman Janet
Yellen comments as dovish (outside of the lowered growth forecasts), feeling the central bank
would raise rates more slowly than market participants had previously anticipated. The Fed
commentary created selling pressure in the U.S. dollar, which also helped dollar denominated
commodities (ex: gold, silver, oil)
Currencies
The dollar plummets on Friday, capping the end of a very volatile week for the greenback, with
dollar index (DXY) falling more than -1.5% to 97.85 (off high 99.121) and down roughly -1.9% for
the week. A weaker dollar often provides support for dollar-denominated commodities, including
gold. The euro touched intraday high of 1.0860 (yesterday overnight high was 1.0919), before
paring gains, but still posted a strong effort, while then dollar fell to around 1.20 low against the
yen. The dollar has dropped since the FOMC on the expectation that Federal Reserve policy
makers would leave rates lower for longer after lowering their economic outlook.
Bond Market
Bonds finish the week stronger, with yields continuing their precipitous drop after the FOMC
meeting on Wednesday gave no reason to end the bond buying that has occurred for years.
Yields fell sharply this week, with the benchmark 10-yr yield falling to 1.92% (was 2.25% just 2
weeks ago following the better jobs data), while the shorter end of the curve was hit hard
Macro
Up/Down
Last
WTI Crude
1.76
45.72
Brent
0.89
55.32
Gold
15.60
1,184.60
EUR/USD
0.0154
1.0814
JPY/USD
-0.59
120.18
10-Year Note
-0.050
1.927%
Energy
Energy stocks benefitted from oversold conditions, and a jump in oil prices, lifting shares of
beaten up names this week (Energy was one of few sector laggards this week); shares of RIG,
NBR, NOV, NFX, FTI some of the leaders in energy space on the S&P 500
The Baker Hughes (BHI) weekly rig count fell -56 in the latest week to 1,069 (15th consecutive
weekly decline), while the oil rig count fell -41 to 825 and nat gas rig count down -15 to 242 (note
the overall rig count had fallen -67 to 1,125 with oil rigs down 56 to 866, and gas rigs down 11)
Refiners; Wells Fargo said the caution flag a bit higher given recent outperformance on
seasonally strong crack spreads and favorable differentials; downgraded TSO to market perform
from outperform; PBF, VLO, PSX are only remaining outperform-rated refiners
The Obama administration confirmed final rules on hydraulic fracturing activities on public and
tribal lands, in an effort to set a national standard for a patchwork of state regulations governing
drilling practices. Key components of the rule, which will take effect in 90 days, include
requirements to test the quality of the cement work designed to prevent natural gas from
seeping outside a well, and adhere to stricter standards for storing toxic fluids left from drilling
Financials
Large Cap banks enjoyed a strong day, with large cap banks jumping on the day, led by JPM, BAC,
GS, C, and MS; insurance names also stronger, with gainers PRU, MET, PFG leading; in REITs, SPG
sends final offer to acquire MAC for $95.50 per share from $91 offer prior http://goo.gl/1luocC
Online brokers; AMTD downgrade to Neutral at Goldman Sachs citing valuation as well as retail
trading activity is trending a bit softer in calendar 1Q with a negative mix shift away from higher
commission options (lower rates also not helping group SCHW, ETFC but not affecting today)
Healthcare
Large Cap Pharma; SHPG upgraded to Outperform at Bernstein with $295 tgt following several
new developments; LLY joins with Chinese biotech to develop/market cancer drugs, as will pay
$65M upfront to Innovent Biologics to co-develop at least 3-experimental cancer drugs; AZN
seen as potential target again if oncology drugs lag, Bloomberg says http://goo.gl/dAKgXT;
THRX/GSK said FDA advisory panel said efficacy and safety data for Breo Ellipta dont support
expanded use of drug to treat asthma in children ages 12-17
Biotech pares gains after another fresh all-time high for IBB/XBI on several data points; index
pulls back on some profit taking; BIIB new highs as Phase 1b data on BIIB037 in Alzheimers
disease seen much better than earlier studies of Lillys solanezumab and Roches crenezumab;
ICPT positive results from a new subgroup analysis for Phase 2b FLINT study of obeticholic acid
(OCA) in patients with nonalcoholic steatohepatitis (NASH); PRTA advanced as its Parkinsons
disease drug met primary endpoints of safety and tolerability in an early-stage study
Other movers on news; TKMR 7.5M share Secondary priced at $20.25; total U.S. retail
prescriptions for GILDs Harvoni and Sovaldi hepatitis C drugs totaled 12,119 in week ended
March 13, up 4.4% from prior week (Bloomberg); MNKD script numbers for Afrezza fall, as NRx
down 19.5% WoW
City of Hope Medical Center/National Cancer Institute suspended participant recruitment in
Phase 1 CAR-T clinical trial for treating patients with high-risk acute lymphoblastic leukemia,
according to clinicaltrials.gov yesterday (note CAR-T stocks were active KITE, CNDO, BLCM, XON,
BLUE , JUNO after jumping yesterday)
Hospital stocks underperformed in general - THC, CYH, LPNT
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