Hexcel Corp. Q2 adjusted earnings Beat Estimates

Hexcel Corp. (HXL) announced a profit for its second quarter that rose from last year.

The company’s bottom line totaled $80.9 million, or $0.94 per share. This compares with $68.8 million, or $0.76 per share, in last year’s second quarter.

Excluding items, Hexcel Corp. reported adjusted earnings of $80.9 million or $0.941 per share for the period.

Analysts had expected the company to earn $0.89 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 11.2% to $609.0 million from $547.5 million last year.

Hexcel Corp. earnings at a glance:

-Earnings (Q2): $80.9 Mln. vs. $67.5 Mln. last year.
-EPS (Q2): $0.941 vs. $0.75 last year.
-Analysts Estimate: $0.89
-Revenue (Q2): $609.0 Mln vs. $547.5 Mln last year.

-Guidance:
Full year EPS guidance: $3.43 – $3.53

Starbucks takes a stake in restaurant tech company

Starbucks Corp. SBUX, +0.69% said Monday that it will take an equity stake in Brightloom, a restaurant technology company previously called Eatsa. As part of the deal, Brightloom will license Starbucks’ mobile and loyalty technology to use in its existing platform. With this upgraded platform, Brightloom aims to offer restaurant brands an all-in-one option for mobile, payments, order management, loyalty, and other functions. Brightloom has also closed a $30 million round of funding that includes Starbucks licensees Alshaya Group and Alsea, as well as Tao Capital Partners and Valor Equity Partners. Starbucks stock has gained more than 41% for the year to date while the S&P 500 index SPX, +0.28% is up 19.1% for the period.

UPDATE: Lannett stock up 40% with no news released; short interest stands at 74% of float

Shares of generic-drug manufacturer Lannett Company Inc. LCI, +40.80% shot up 40% in Monday afternoon trade. The company has not released any news that would account for the stock move, a spokesman for the company said. However, Lannet stock’s short interest stood at at 20.66 million shares at the end of June, equal to 74.3% of the company’s public float of 27.8 million shares. Ihor Dusaniwsky,managing director for predictive analytics at S3 Partners, a company that tracks short interest, said the move was not caused by a short squeeze, although it could trigger one if the stock keeps rallying. Short positions were down about $128,000 year-to-date, through Friday. "Shorts have taken a good stomach punch today, they’re down $46.2 million," he said. "They are definitely a candidate for a short squeeze after today." Shares of Lannett have gained 67.9% in the year to date, while the S&P 500 SPX, +0.28% has gained 19.2%.

Child injured by broken glass after shot fired at car, Toronto police say

Toronto police say a young child has received minor injuries from broken glass after a vehicle was shot at in the city’s downtown Monday afternoon.

Police said officers were called to the Bleecker and Earl streets area, near Sherbourne Street and Wellesley Street East, at around 1:30 p.m.

A spokesperson said the child was sitting in the back of the vehicle at the time.

Police said the child’s injuries were minor and that they were being treated at the scene.

More to come.

Treasuries Pull Back Near Unchanged Going Into The Close

Treasuries saw modest strength for much of the trading session on Monday before giving back ground going into the close.

Bond prices pulled back off their best levels of the day and finished the session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 2.043 percent after hitting a low of 2.027 percent.

The early strength among treasuries came as traders looked to bonds as a safe haven ahead of the release of quarterly results from a slew of big-name companies in the coming days.

Amazon (AMZN), Coca-Cola (KO), AT&T (T), Boeing (BA), Caterpillar (CAT), Facebook (FB), Alphabet (GOOGL), Intel (INTC), McDonald’s (MCD), and Twitter (TWTR) are just a few of the companies due to report their quarterly results this week.

Buying interest remained somewhat subdued, however, as traders seemed reluctant to make more significant moves amid a quiet day on the U.S. economic front.

Traders were looking ahead to the release of reports on new and existing home sales, durable goods orders, and second quarter GDP.

On Tuesday, the National Association of Realtors is due to release its report on existing home sales in the month of June. Existing home sales are expected to edge up by 0.2 percent in June after jumping by 2.5 percent in May.

Bond traders are also likely to keep an eye on the results of the Treasury Department’s auction of $40 billion worth of two-year notes.

Earnings recession still on track, but outlook has improved in the last week

With a out 16% of the S&P 500 SPX, +0.28% having reported earnings for he second-quarter, the aggregate blended estimate is a decline of 1.9% from a year ago, according to FactSet. Last week, the blended estimate, which combines actual and estimated results, was for a decline of 3.1%. Of the companies that reported results, 79% have beat earnings-per-share estimates by an average of 7.0%, with both above 5-year averages, said FactSet analyst John Butters. After a 0.3% EPS decline in the first quarter, a negative print for the second quarter would mark the first "earnings recession" since the second quarter of 2016. The S&P 500 was up 0.2% in afternoon trading, and has gained 2.6% over the past three months, and rallied 19.0% year to date.