The dollar index (DXY00 +0.30%) this morning is up +0.21%. EUR/USD is seeing continued weakness and is down -0.0046 (-0.41%) this morning on yesterday's news that the ECB will slightly expand QE in May-June to account for lower liquidity over the summer. USD/JPY is up +0.24 (+0.20%). June 10-year T-notes (ZNM15 +0.04%) are unchanged this morning. June bunds are up +0.26 points.
Commodity prices are unchanged on net this morning. July WTI crude oil is up +0.56 (+0.97%) on some short-covering after yesterday's plunge. July gasoline is up +0.0243 (+1.23%). July natural gas is up +0.027 (+0.90%).
Precious metals prices are trading slightly higher this morning on some short-covering after Tuesday's sharp sell-off. Jun gold this morning is up +2.0 (+0.17%) and July silver is up +0.064 (+0.37%). July copper is down -0.013 (-0.44%). Grain and softs prices are trading moderately lower this morning.
The Japan Q1 GDP report of +2.4% (q/q annualized) was stronger than market expectations of +1.6%, although Q4 was revised lower to +1.1% from +1.5%.
The Bank of England policy minutes were a bit hawkish as they said that slack in the UK economy will probably be eroded within a year, which signals that potential future inflation pressures may then require a rate hike. For now, the Monetary Policy Committee voted 9-0 to keep its base rate unchanged at 0.50%.
The ECB later today will likely raise the Greek Emergency Lending Assistance (ELA) facility from the current 80 billion euros, adding to last week's hike of 2.0 billion euros.
There are 7 of the S&P 500 companies report earnings today: Target (consensus $1.02), Hormel Foods (0.63), Lowe's (0.74), Staples (0.17), L Brands (0.60), NetApp (0.72), Salesforce.com (0.14).
U.S. IPO's scheduled to price today include: Press Ganey Holdings (PGND), Baozun (BZUN), Community Healthcare Trust (CHCT), Shopify (SHOP), Dicerna Pharmaceuticals (DRNA), Malibu Boats (MBUU).
Equity conferences this week include: JPMorgan Global Technology, Media and Telecom Conference on Mon-Wed, UBS Global Health Care Conference on Mon-Wed, Electrical Products Group Spring Conference on Mon-Wed, EPG Conference on Mon-Wed, Goldman Sachs Basic Materials Conference on Tue-Wed, Barclays America Select Conference on Tue-Wed, Wolfe Research Global Transportation Conference on Tue-Wed, LME Week Asia 2015 on Wed, BMO Farm to Market Conference on Wed-Thu, Janney Montgomery Scott-Company Marketing: Biotechnology-Southeast on Fri.
June E-mini S&Ps this morning are little changed as the market awaits today's FOMC meeting minutes. Tuesday's closes: S&P 500 -0.06%, Dow Jones +0.07%, Nasdaq -0.17%. The S&P 500 on Tuesday closed little changed on offsetting factors. Stocks were supported by the sharp +20.2% increase in April U.S. housing starts to a 7-1/3 year high, although that also meant the Fed might tighten sooner rather than later. U.S. stocks also received a boost from a rally in European stocks on the ECB’s statement that it will boost the size of its QE program in May-June to offset lower liquidity during the summer. Stocks were undercut by a -4.4% slump in Wal-Mart on a disappointing earnings report and by weakness in energy producers after the sharp -3.74% sell-off in crude oil prices.
- Hormel Foods (HRL +0.13%) reported Q2 EPS of 67 cents, mildly above the consensus of 63 cents. Q2 revenue of $2.3 billion was slightly below the consensus of $2.40 billion.
- Lowe's (LOW -1.68%) reported Q1 EPS of 70 cents, mildly below the consensus of 74 cents. Q1 revenue of $14.13 billion was slightly below the consensus of $14.28 billion.
- Staples (SPLS -0.42%) reported Q1 non-GAAP EPS of 17 cents, matching the consensus. Q1 revenue of $5.26 billion was below the consensus of $5.47 billion.
- Northrop Grumman (NOC +0.58%) increased its quarterly dividend by 14% to 80 cents/share.
- Yahoo (YHOO -7.62%) said this morning that the IRS statement on spin-offs will not affect its previously filed requests.
- LendingClub (LC +1.50%) rallied nearly 3% in after-hours trading after Morgan Stanley upgraded the stock to Overweight from Equal Weight.
- Autodesk (ADSK -1.51%) fell 2% in after-hours trading due to a disappointing earnings report.
- Norwegian Cruise Line (NCLH +3.26%) fell -2.5% in after-hours trading after filing to sell 20 million of ordinary shares.
The dollar index this morning is up +0.21%. EUR/USD is seeing continued weakness and is down -0.0046 (-0.41%) this morning on yesterday's news that the ECB will slightly expand QE in May-June to account for lower liquidity over the summer. USD/JPY is up +0.24 (+0.20%). Tuesday's closes: Dollar Index +1.083 (+1.15%), EUR/USD -0.0165 (-1.46%), USD/JPY +0.70 (+0.58%). The dollar index on Tuesday closed sharply higher for the second straight day on the sharp +20.2% increase in U.S. April housing starts and on EUR weakness sparked by the news that the ECB is boosting the size of QE in May-June to offset reduced liquidity during the summer.
July WTI crude oil is up +0.56 (+0.97%) on some short-covering after yesterday's plunge. July gasoline is up +0.0243 (+1.23%). Tuesday's closes: CLN5 -2.25 (-3.74%), RBN5 -0.0376 (-1.85%). Jul crude oil and gasoline prices on Tuesday closed sharply lower on the sharp rally in the dollar index and on expectations for the U.S. and world oil supply glut to continue.
|US||0300 ET||Chicago Fed President Charles Evans speaks about the economy and monetary policy at the NABE International Symposium in Munich.|
|0700 ET||Weekly MBA mortgage applications, previous -3.5% with purchase sub-index -0.2% and refi sub-index -5.9%.|
|1030 ET||EIA Weekly Petroleum Status Report.|
|1400 ET||Minutes of the Apr 28-29 FOMC meeting.|
|JPN||0100 ET||Revised Japan Mar leading index CI, previous 105.5. Revised Mar coincident index, previous 109.5.|
|0200 ET||Revised Japan Apr machine tool orders, previous +10.4% y/y.|
|2135 ET||Japan May Markit/JMMA manufacturing PMI expected +0.4 to 50.3, Apr 49.9.|
|GER||0200 ET||German Apr PPI expected +0.2% m/m and -1.4% y/y, Mar +0.1% m/m and -1.7% y/y.|
|UK||0430 ET||Minutes of the May 11 BOE meeting.|
|EUR||0500 ET||Eurozone Mar construction output, Feb -1.8% m/m and -3.7% y/y.|
|CHI||2145 ET||China May HSBC flash manufacturing PMI expected +0.4 to 50.3, Apr 49.9.|
|Target Corp||TGT US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||1.021|
|Hormel Foods Corp||HRL US||Bef-mkt||Q2 2015 Earnings Release||Q2 2015||0.625|
|Lowe's Cos Inc||LOW US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.737|
|Progressive Corp/The||PGR US||Bef-mkt||April 2015 Sales and Revenue Release||2015|
|Staples Inc||SPLS US||Bef-mkt||Q1 2016 Earnings Release||Q1 2016||0.172|
|Hormel Foods Corp||HRL US||8:00||Q2 2015 Earnings Call||Q2 2015|
|Northrop Grumman Corp||NOC US||8:00||Annual General Meeting||Y 2015|
|Staples Inc||SPLS US||8:00||Q1 2016 Earnings Call||Q1 2016|
|Johnson & Johnson||JNJ US||8:30||Investor Meeting||Y 2015|
|Lowe's Cos Inc||LOW US||9:00||Q1 2016 Earnings Call||C1 2016|
|Lowe's Cos Inc||LOW US||9:00||Q1 2016 Earnings Call||Q1 2016|
|Altria Group Inc||MO US||9:00||Annual General Meeting||Y 2015|
|Thermo Fisher Scientific Inc||TMO US||9:00||Analyst Meeting||Y 2015|
|Total System Services Inc||TSS US||9:00||Analyst Day||Y 2015|
|Xerox Corp||XRX US||9:00||Annual General Meeting||Y 2015|
|State Street Corp||STT US||9:00||Annual General Meeting||Y 2015|
|Halliburton Co||HAL US||10:00||Annual General Meeting|
|ONEOK Inc||OKE US||10:00||Annual General Meeting||Y 2015|
|Universal Health Services Inc||UHS US||10:00||Annual General Meeting|
|Fossil Group Inc||FOSL US||10:00||Annual General Meeting|
|Mondelez International Inc||MDLZ US||10:00||Annual General Meeting||Y 2015|
|Target Corp||TGT US||10:30||Q1 2016 Earnings Call||Q1 2016|
|CenturyLink Inc||CTL US||11:00||Annual General Meeting||Y 2015|
|Fiserv Inc||FISV US||11:00||Annual General Meeting|
|American Tower Corp||AMT US||11:00||Annual General Meeting|
|Xcel Energy Inc||XEL US||12:00||Annual General Meeting||Y 2015|
|Hartford Financial Services Group Inc/The||HIG US||12:30||Annual General Meeting||Y 2015|
|Thermo Fisher Scientific Inc||TMO US||13:00||Annual General Meeting||Y 2015|
|Travelers Cos Inc/The||TRV US||13:30||Annual General Meeting||Y 2015|
|NVIDIA Corp||NVDA US||13:30||Annual General Meeting||Y 2015|
|CME Group Inc/IL||CME US||16:30||Annual General Meeting||Y 2015|
|NetApp Inc||NTAP US||17:00||Q4 2015 Earnings Call||Q4 2015|
|Salesforce.com inc||CRM US||17:00||Q1 2016 Earnings Call||Q1 2016|
|L Brands Inc||LB US||Aft-mkt||Q1 2016 Earnings Release||Q1 2016||0.6|
|NetApp Inc||NTAP US||Aft-mkt||Q4 2015 Earnings Release||Q4 2015||0.723|
|Salesforce.com inc||CRM US||Aft-mkt||Q1 2016 Earnings Release||Q1 2016||0.138|
|PPL Corp||PPL US||Annual General Meeting|
|Pinnacle West Capital Corp||PNW US||Annual General Meeting|
|Ross Stores Inc||ROST US||Annual General Meeting||Y 2015|
|DENTSPLY International Inc||XRAY US||Annual General Meeting|
|Amphenol Corp||APH US||Annual General Meeting|
|Pioneer Natural Resources Co||PXD US||Annual General Meeting|
|FirstEnergy Corp||FE US||Investor Meeting||Y 2015|
|Discovery Communications Inc||DISCA US||Annual General Meeting|
|First Solar Inc||FSLR US||Annual General Meeting|