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OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15-0.40%) are down -0.37% and European stocks are down -0.41% after the Fed said yesterday it is still considering an interest rate increase this year. The markets await today's data on U.S. Q3 GDP and weekly initial unemployment claims to see if the economy is strong enough to handle an interest rate hike. Weakness in bank stocks is undercutting European equities with Deutsche Bank AG and Barclays PLC both down at least 4.5%. Asian stocks settled mixed: Japan +0.17%, Hong Kong -0.60%, China +0.36%, Taiwan -1.10%, Australia -1.28%, Singapore -1.28%, South Korea -0.34%, India -0.75%. China's Shanghai Composite closed higher on speculation the Chinese government will provide additional stimulus to spur growth after Premier Li Keqiang said that China needs annual growth of at least 6.53% over the next 5 years to meet the government's goal for a "moderately prosperous society." Japan's Nikkei Stock Index closed higher as the BOJ began a 2-day policy meeting today.
The dollar index (DXY00-0.38%) is down -0.46%. EUR/USD (^EURUSD) is up +0.39% after an unexpected increase in Eurozone Oct economic confidence to a more than 4-year high reduces the chances of additional easing from the ECB. USD/JPY (^USDJPY) is down -0.18% after stronger-than-expected Japan Sep industrial production curbed speculation the BOJ will expand QE and boosted the yen.
Dec T-note prices (ZNZ15-0.06%) are down -1 tick at a 1-month low after the Fed yesterday left open the possibility of an interest rate increase at the Dec FOMC meeting.
Eurozone Oct economic confidence unexpectedly rose +0.3 to 105.9, stronger than expectations of -0.5 to 105.1 and the highest in 4-1/3 years.
Japan Sep industrial production rose +1.0% m/m and fell -0.9% y/y, stronger than expectations of -0.6% m/m and -2.6% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +6,000 to 265,000, previous +3,000 to 259,000) and continuing claims (expected -10,000 to 2.160 million, previous +6,000 to 2.170 million), (2) Q3 GDP (expected +1.5% after Q2's +3.9%), (3) Sep pending home sales (expected +1.0% m/m and +7.3% y/y, Aug -1.4% m/m and +6.7% y/y), and (4) the Treasury's auction of $29 billion 7-year T-notes.
There are 48 of the S&P 500 companies that report earnings today with notable reports including: MasterCard (consensus $0.88), Starbucks (0.43), Coca-Cola Enterprises (0.82), Johnson Controls (1.01), ConocoPhillips (-0.38), CME Group (0.99), Time Warner Cable (1.55), Marathon Petroleum (1.82), Electronic Arts (0.45), First Solar (1.56), Expedia (2.03).
U.S. IPO's scheduled to price today: Fuling Global (FORK).
Equity conferences during the remainder of this week include: none.
OVERNIGHT U.S. STOCK MOVERS
PayPal (PYPL +1.61%) fell 6% in pre-market trading after it reported Q3 EPS of 31 cents, better than consensus of 29 cents, but reported Q3 revenue of $2.26 billion, less than consensus of $2.28 billion.
Allergan Plc (AGN +0.50%) jumped 14% in pre-market trading after the WSJ reported it is considering a merger with Pfizer.
CME Group (CME +2.18%) reported Q3 EPS of $1.06, better than consensus of 99 cents.
Amgen (AMGN +0.43%) rose over 1% in after-hours trading after it reported Q3 adjusted EPS of $2.72, well above consensus of $2.37, and then raised guidance on fiscal 2015 EPS to $9.95-$10.10 from a July estimate of $9.55-$9.80, above consensus of $9.77.
Aetna (AET +0.40%) reported Q3 EPS of $1.90, higher than consensus of $1.77.
FMC Corp. (FMC +3.39%) climbed 1% in after-hours trading after it reported adjusted Q3 EPS of 42 cents, better than consensus of 38 cents.
Yelp (YELP-3.62%) rallied over 2% in after-hours trading after it raised guidance on fiscal 2015 revenue to $545.5 million-$551.5 million from a prior estimate of $544 million-$550 million, above consensus of $545.7 million.
GoPro (GPRO +7.01%) tumbled 12% in after-hours trading after it reported Q3 EPS of 25 cents, weaker than consensus of 29 cents.
Pilgrim's Pride (PPC +0.26%) fell 4% in after-hours trading after it reported Q3 adjusted EPS of 58 cents, well below consensus of 72 cents.
F5 Networks (FFIV +0.87%) fell over 4% in after-hours trading after it reported Q4 EPS of $1.84, better than consensus of $1.74, but then lowered guidance on Q1 EPS to $1.58-$1.61, below consensus of $1.71.
Vertex Pharmaceuticals (VRTX-0.75%) rose almost 6% in after-hours trading after it posted a Q3 EPS loss of -13 cents, a smaller loss than consensus of-31 cents.
HanesBrands (HBI +2.03%) jumped over 10% in after-hours trading after it reported adjusted Q3 EPS of 50 cents, above consensus of 45 cents, and then raised guidance on fiscal 2015 EPS to $1.66-$1.68 from a prior view of $1.61-$1.66, above consensus of $1.64.
SunPower (SPWR +3.53%) gained over 4% in after-hours trading after it reported Q3 EPS of 13 cents, better than consensus of break even.
Dec E-mini S&Ps (ESZ15-0.40%) this morning are down -7.75 points (-0.37%). Wednesday's closes: S&P 500 +1.18%, Dow Jones +1.13%, Nasdaq +0.85%. The S&P 500 on Wednesday rose to a 2-1/4 month high and closed higher on strength in energy producers as crude oil rallied and on underlying support from mostly better-than-expected Q3 company earnings results. Stocks fell back briefly after the Fed said in its post-FOMC statement that the economy is still expanding at a "moderate" pace and that they will consider a rate increase at the December meeting.
Dec 10-year T-notes (ZNZ15-0.06%) this morning are down -1 tick at a fresh 1-month low. Wednesday's closes: TYZ5 -23.00, FVZ5 -17.75. Dec T-notes on Wednesday slid to a 1-month low and closed lower on the Fed's post-FOMC meeting statement that left open the possibility of a an interest rate increase at the Dec meeting and on reduced safe-haven demand with the rally in the S&P 500 to a 2-1/4 month high.
The dollar index (DXY00-0.38%) this morning is down -0.452 (-0.46%). EUR/USD (^EURUSD) is up +0.0043 (+0.39%). USD/JPY (^USDJPY) is down-0.22 (-0.18%). Wednesday's closes: Dollar Index +0.876 (+0.90%), EUR/USD -0.0128 (-1.16%), USD/JPY +0.63 (+0.52%). The dollar index on Wednesday shed early losses and rallied to a 2-1/2 month high on the post-FOMC meeting statement that left open the possibility of an interest rate increase at the Dec meeting. In addition, there was weakness in EUR/USD, which fell to a 2-1/2 month low, after ECB Executive Board member Coeure said that the ECB may expand stimulus if inflation remains below the ECB's 2.0% target.
Dec crude oil (CLZ15-1.37%) this morning is down -68 cents (-1.48%) and Dec gasoline (RBZ15-1.34%) is down -0.0207 (-1.55%). Wednesday's closes: CLZ5 +2.98 (+6.90%), RBZ5 +0.0613 (+4.80%). Dec crude and gasoline prices closed sharply higher on Wednesday with Dec crude at a 1-week high and Dec gasoline at a 2-week high. Crude oil prices found support on short-covering and the EIA report where distillate inventories fell by -2.95 million bbl (vs expectations of -1.75 million bbl) and Cushing crude oil inventories fell by -785,000 bbls.
GLOBAL EVENT CALENDAR10/29/2015
Weekly initial unemployment claims expected +6,000 to 265,000, previous +3,000 to 259,000. Weekly continuing claims expected -10,000 to 2.160 million, previous +6,000 to 2.170 million.
Q3 GDP expected +1.5% (q/q annualized), Q2 +3.9%. Q3 personal consumption expected +3.3%, Q2 +3.6%. Q3 GDP price index expected +1.4%, Q2 +2.1%. Q3 core PCE deflator expected +1.4%, Q2 +1.9%.
USDA weekly Export Sales.
Sep pending home sales expected +1.0% m/m and +7.3% y/y, Aug -1.4% m/m and +6.7% y/y.
Treasury auctions $29 billion 7-year T-notes.
UK Oct nationwide house prices expected +0.5% m/m and +3.8% y/y, Sep +0.5% m/m and +3.8% y/y.
UK Sep net consumer credit expected +1.1 billion pounds, Aug +0.9 billion pounds.
UK Sep mortgage approvals expected 72,400, Aug 71,000.
UK Sep money supply, Aug -0.4% m/m and -0.1% y/y.
UK Oct CBI reported sales expected -14 to 35, Sep 49.
UK Oct GfK consumer confidence expected +1 to 4, Sep 3.
German Oct unemployment change expected -4,000, Sep +2,000. Oct unemployment rate expected unch at 6.4%.
German Oct CPI (EU harmonized) expected -0.1% m/m and unch y/y, Sep -0.3% m/m and -0.2% y/y.
Eurozone Oct economic confidence expected -0.5 to 105.1, Sep 105.6. Oct business climate indicator expected 0.03 to 0.31, Sep 0.34.
Revised Eurozone Oct consumer confidence, previous -0.6 to -7.7.
Japan Sep jobless rate expected unch at 3.4%. Sep job-to-applicant ratio expected +0.01 to 1.24, Aug 1.23.
Japan Sep overall household spending expected +1.1% y/y, Aug +2.9% y/y.
Japan Sep national CPI expected unch y/y, Aug +0.2% y/y. Sep national CPI ex fresh food expected -0.2% y/y, Aug -0.1% y/y. Sep national CPI ex food & energy expected +0.9% y/y, Aug +0.8% y/y.
Japan Tokyo Oct CPI expected unch y/y, Sep -0.1% y/y. Tokyo Oct CPI ex-fresh food expected -0.2% y/y, Sep -0.2% y/y. Tokyo Oct CPI ex food & energy expected +0.5% y/y, Sep +0.6% y/y.