Thursday, August 25, 2016


Sep E-mini S&Ps (ESU16 -0.24%) are down -0.21% and European stocks are down -0.86% as fallout concerns from Brexit resurfaced after German Aug IFO business sentiment unexpectedly fell to the lowest in 6 months. Long liquidation and position-squaring ahead of Fed Chair Yellen's speech Friday at the Fed's symposium in Jackson Hole, Wyoming, also weighed on equity prices. Technology shares are also weaker, led by a nearly 6% drop in HP Inc. after it forecast weaker-than-expected Q4 profit. Asian stocks settled mostly lower: Japan -0.25%, Hong Kong -0.03%, China -0.57%, Taiwan +1.09%, Australia-0.36%, Singapore +0.26%, South Korea -0.02%, India -0.80%. China's Shanghai Composite fell to a 1-1/2 week low, led by losses in property stocks, on concern the government will act to thwart speculative activity after people familiar with the matter said Shanghai authorities are planning to hold meetings to discuss ways to cool surging property prices.
The dollar index (DXY00 -0.10%) is down -0.16%. EUR/USD (^EURUSD) is up +0.24%. USD/JPY (^USDJPY) is down -0.04%.
Sep T-note prices (ZNU16 +0.02%) are up +2 ticks.
The German Aug IFO business climate unexpectedly fell -2.1 to 106.2, weaker than expectations of +0.2 to 108.5 and the lowest in 6 months.
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +3,000 to 265,000, previous -4,000 to 262,000) and continuing claims (expected -20,000 to 2.155 million, previous +15,000 to 2.175 million), (2) Jul durable goods orders (expected +3.4% and +0.4% ex transportation, Jun-3.9% and -0.4% ex transportation), (3) Aug Markit services PMI (expected +0.4 to 51.8, Jul unchanged at 51.4), (4) Aug Kansas City Fed manufacturing activity survey (expected +4 to -2, Jul -8 to -6), (5) the Treasury's auction of $28 billion of 7-year T-notes, and (6) USDA weekly Export Sales.
Russell 1000 companies that report earnings today: Tiffany (consensus $0.71), Patterson Cos (0.51), Dollar General (1.09), Michaels Cos (0.17), Medtronic (1.01), Burlington Stores (0.30), Signet Jewelers (1.45), Dollar Tree (0.73), Autodesk (-0.13), Brocade Communications Systems (0.16), Gamestop (0.27), Ulta Salon (1.40), Splunk (0.03), Zayo Group (0.03).
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week: none.
Northrop Grumman (NOC -0.23%) was downgraded to 'Neutral' from 'Overweight' at JPMorgan Chase.
Sprint (S -0.49%) was downgraded to 'Underperform' from 'Neutral at Buckingham Research Group.
Express (EXPR -25.51%) lost over 1% in pre-market trading after it reported Q2 EPS of 13 cents, weaker than consensus of 17 cents, and then lowered guidance on full-year adjusted EPS to $1.00-$1.14 from a prior view of $1.41-$1.54.
Fiat Chrysler Automobiles NV (FCAU +0.44%) climbed 3% in pre-market trading after the Maeil Business newspaper reported that the vice chaorman of Samsung Electronics will fly to Italy to discuss a deal regarding auto-parts maker Magneti Marelli, an auto-parts unit of Fiat.
Netflix (NFLX -0.79%) was upgraded to 'Outperform' from 'Market Perform' at William Blair & Co.
HEICO (HEI +1.19%) rose over 1% in after-hours trading after it reported Q3 EPS of 62 cents, higher than consensus of 59 cents, and then said it sees 2016 net income of 13%-15%, up from a previous view of 12%-14%.
Cree (CREE -1.22%) was rated a new 'Buy' at Roth Capital with a price target of $34.
Workday (WDAY -0.38%) climbed nearly 11% in pre-market trading after it reported Q2 revenue of $377.7 million, above consensus of $372.8 million.
PVH Corp. (PVH -0.67%) gained over 1% in after-hours trading after it reported Q2 adjusted EPS of $1.47, higher than consensus of $1.29.
Electronics for Imaging (EFII -0.88%) was rated a new 'Buy' at Stifel with a 12-month target price of $53.
HP Inc. (HPQ -1.17%) fell nearly 6% in pre-market trading after it said it sees Q4 adjusted EPS from continuing operations of 34 cents-37 cents, weaker than consensus of 40 cents.
Guess? (GES -6.23%) surged 15% in after-hours trading after it reported Q2 adjusted EPS of 14 cents, much better than consensus of 6 cents, and then raised guidance on full-year adjusted EPS to 62 cents-75 cents from a May 25 view of 55 cents-75 cents.
Tilly's (TLYS +7.11%) jumped 10% in after-hours trading after it reported an unexpected Q2 EPS profit of 5 cents, better than consensus of a -5 cent loss.
Nymox Pharmaceutical Corp. (NYMX +83.13%) rallied over 10% in after-hours trading on carryover from Wednesday's announcement of positive results from a long-term Phase 3 study evaluating the drug fexapotide in men with enlarged prostates.
Ballard Power Systems (BLDP -4.33%) jumped 10% in after-hours trading after it said its Protonex unit was notified by the U.S. Commerce Department that its family of fuel cell propulsion systems are now designated EAR99 (Export Administration Regulations 99) compliant.
Sep E-mini S&Ps (ESU16 -0.24%) this morning are down -4.50 points (-0.21%). Wednesday's closes: S&P 500 -0.52%, Dow Jones -0.35%, Nasdaq-0.73%. The S&P 500 on Wednesday closed lower on the -3.2% drop in U.S. Jul existing home sales to 5.39 million (a bigger decline than expectations of-1.1% to 5.51 million) and on the -2.70% plunge in crude oil prices that undercut energy producer stocks. In addition, there was a sell-off in drugmaker stocks, led by a 5% decline in Mylan NV, after it raised the price of its EpiPen by 400% and U.S. presidential candidate Clinton called it "outrageous," which fueled speculation that Ms. Clinton may take action against drugmakers if she is elected president.
Sep 10-year T-notes (ZNU16 +0.02%) this morning are up +2 ticks. Wednesday's closes: TYU6 unch, FVU6 +0.25. Sep T-notes on Wednesday closed unchanged. T-note prices were boosted by increased safe-haven demand with the slide in stocks and by the weaker-than-expected U.S. Jul existing home sales report of -3.2%. T-notes were undercut by supply pressures with this week's $101 billion T-note auction package.
The dollar index (DXY00 -0.10%) this morning is down -0.148 (-0.16%). EUR/USD (^EURUSD) is up +0.0027 (+0.24%). USD/JPY (^USDJPY) is down-0.04 (-0.04%). Wednesday's closes: Dollar index +0.247 (+0.26%), EUR/USD -0.0041 (-0.36%), USD/JPY +0.21 (+0.21%). The dollar index on Wednesday closed higher on speculation that Fed Chair Yellen may be hawkish and warn the markets of an impending Fed rate hike in her comments in Jackson Hole on Friday. The dollar was also boosted by weakness in the currencies of the crude-exporting countries of Russia and Canada after crude oil prices tumbled -2.70%.
Oct crude oil (CLV16 -0.62%) this morning is down -7 cents (-0.15%) and Oct gasoline (RBV16 -1.50%) is down -0.0174 (-1.23%). Wednesday's closes: CLV6 -1.30 (-2.70%), RBV6 -0.0049 (-0.35%). Oct crude oil and gasoline on Wednesday closed lower on doubts that OPEC will be able to agree on a production freeze at next month’s informal talks in Algiers after Iran said it hasn't decided if it will attend the meeting. In addition, the EIA report was bearish with the unexpected +2.5 million bbl increase in EIA crude inventories (vs expectations for -1.0 million bbl) and the +36,000 bbl increase in EIA gasoline supplies (vs expectations of -1.7 million bbl).
Thursday, Aug 25
US0830 ETWeekly initial unemployment claims expected +3,000 to 265,000, previous -4,000 to 262,000. Weekly continuing claims expected -20,000 to 2.155 million, previous +15,000 to 2.175 million.
0830 ETJul durable goods orders expected +3.4% and +0.4% ex transportation, Jun -3.9% and -0.4% ex transportation. Jul capital goods orders non-defense ex aircraft & parts expected +0.2%, Jun +0.4%.
0830 ETUSDA weekly Export Sales.
0945 ETAug Markit services PMI expected +0.4 to 51.8, Jul unchanged at 51.4. Aug Markit composite PMI, Jul +0.6 to 51.8.
1100 ETAug Kansas City Fed manufacturing activity survey expected +4 to -2, Jul -8 to -6.
1300 ETTreasury auctions $28 billion 7-year T-notes.
Friday, Aug 26
US0830 ETRevised Q2 GDP expected +1.1% (q/q annualized) vs prelim +1.2%. Revised Q2 personal consumption expected +4.1%, prelim +4.2%. Revised Q2 GDP price index, prelim +2.2%. Revised Q2 core PCE, prelim +1.7% q/q.
0830 ETJul wholesale inventories expected +0.1%, Jun +0.3%.
1000 ETFinal-Aug University of Michigan U.S. consumer sentiment index expected +0.4 to 90.8, prelim-Aug +0.4 to 90.4.
1000 ETFed Chair Janet Yellen speaks at the Jackson Hole Policy Symposium.
GER0200 ETGerman Sep GfK consumer confidence expected unch at 10.0, Aug -0.1 to 10.0.
EUR0400 ETEurozone Jul M3 money supply expected +5.0% y/y, Jun +5.0% y/y.
UK0430 ETRevised UK Q2 GDP, previous +0.6% q/q and +2.2% y/y.
0430 ETUK Q2 private consumption, Q1 +0.7% q/q. Q2 government spending, Q1 +0.5% q/q.
0430 ETUK Q2 total business investment expected -0.9% q/q, Q1 -0.6% q/q and -0.8% y/y.
0430 ETUK Jun index of services expected +0.1% m/m and +0.4% 3-m0/3-mo, May -0.1% m/m and +0.3% 3-mo/3-mo.
CHI2130 ETChina Jul industrial profits, Jun +5.1% y/y.

CompanyTickerTimeEvent DescriptionPeriodEstimate
Tiffany & CoTIFBef-mktQ2 2017 Earnings ReleaseQ2 20170.714
Patterson Cos IncPDCOBef-mktQ1 2017 Earnings ReleaseQ1 20170.508
Dollar General CorpDGBef-mktQ2 2017 Earnings ReleaseQ2 20171.09
Michaels Cos Inc/TheMIKBef-mktQ2 2017 Earnings ReleaseQ2 20170.169
Medtronic PLCMDT6:45Q1 2017 Earnings ReleaseQ1 20171.011
Burlington Stores IncBURL6:45Q2 2017 Earnings ReleaseQ2 20170.296
Signet Jewelers LtdSIG7:00Q2 2017 Earnings ReleaseQ2 20171.451
Dollar Tree IncDLTR7:30Q2 2017 Earnings ReleaseQ2 20170.733
Medtronic PLCMDT8:00Q1 2017 Earnings CallQ1 2017
Tiffany & CoTIF8:30Q2 2017 Earnings CallQ2 2017
Signet Jewelers LtdSIG8:30Q2 2017 Earnings CallQ2 2017
Burlington Stores IncBURL8:30Q2 2017 Earnings CallQ2 2017
PVH CorpPVH9:00Q2 2017 Earnings CallQ2 2017
HEICO CorpHEI9:00Q3 2016 Earnings CallQ3 2016
Dollar Tree IncDLTR9:00Q2 2017 Earnings CallQ2 2017
Michaels Cos Inc/TheMIK9:00Q2 2017 Earnings CallQ2 2017
Patterson Cos IncPDCO10:00Q1 2017 Earnings CallQ1 2017
Dollar General CorpDG10:00Q2 2017 Earnings CallQ2 2017
AMERCOUHAL14:00Analyst and Investor MeetingY 2016
Autodesk IncADSK16:01Q2 2017 Earnings ReleaseQ2 2017-0.134
Splunk IncSPLK16:30Q2 2017 Earnings CallQ2 2017
Autodesk IncADSK17:00Q2 2017 Earnings CallQ2 2017
GameStop CorpGME17:00Q2 2017 Earnings CallQ2 2017
Ulta Salon Cosmetics & Fragrance IncULTA17:00Q2 2017 Earnings CallQ2 2017
Zayo Group Holdings IncZAYO17:00Q4 2016 Earnings CallQ4 2016
Brocade Communications Systems IncBRCDAft-mktQ3 2016 Earnings ReleaseQ3 20160.163
GameStop CorpGMEAft-mktQ2 2017 Earnings ReleaseQ2 20170.267
Ulta Salon Cosmetics & Fragrance IncULTAAft-mktQ2 2017 Earnings ReleaseQ2 20171.397
Splunk IncSPLKAft-mktQ2 2017 Earnings ReleaseQ2 20170.034
Zayo Group Holdings IncZAYOAft-mktQ4 2016 Earnings ReleaseQ4 20160.033
Brocade Communications Systems IncBRCD17:30Q3 2016 Earnings CallQ3 2016

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