Monday, June 15th, 2015View Older Reports
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OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 -0.43%) are down -0.32% and European stocks are down -1.44% as the Greek credit crisis remains unresolved. Greece's ASE Stock Index plunged -4.47% and the Greek 10-year bond yield jumped to a 1-1/2 month high of 12.46% after the European Commission said that negotiations on Sunday broke down after just 45 minutes because of huge differences between Greece and its creditors. The commission said that Greece's plan still had gaps and were 2 billion euros short of meeting their fiscal targets. The markets will now look to Thursday's meeting of Eurozone finance ministers as a make-or-break session deciding on Greece's ability to avert default and remain in the Eurozone. Asian stocks closed mostly lower: Japan -0.09%, Hong Kong -1.53%, China -2.00%, Taiwan -0.46%, Australia -0.12%, Singapore -0.92%, South Korea -0.37%, India +0.61%. Chinese shares dropped -2.00% as brokerage stocks led the market lower after China's securities regulator said it plans to cap how much money they can lend to margin traders.Commodity prices are mostly lower. Jul crude oil (CLN15 -1.27%) is down -1.13%, Jul gasoline (RBN15 -1.04%) is down -0.84%. Metals prices are mostly lower. Aug gold (GCQ15 +0.16%) is down -0.36%. Jul copper (HGN15 -1.70%) is down -1.66% at a 2-3/4 month low on fund selling after China failed to add stimulus over the weekend. Agricultural prices are lower as favorable growing conditions are boosting the chances of bumper U.S. crops.
The dollar index (DXY00 +0.33%) is up +0.34%. EUR/USD (^EURUSD) is down -0.47%. USD/JPY (^USDJPY) is up +0.19%.
Sep T-note prices (ZNU15 +0.16%) are up +5.5 ticks at a 1-week high.
The European Commission said that talks in Brussels Sunday between Greece and its creditors broke down after just 45 minutes as both sides remain far apart from an agreement. The latest attempt to resolve the crisis failed to unlock as much as 7.2 billion euros of new bailout funds for Greece as the current Eurozone bailout expires in just over 2 weeks. The commission said that the gap between the parties on fiscal measures needed is "in the order" of 2 billion euros annually. Greek Prime Minister Tsipras has refused to meet creditor demands to bridge that gap with pension cuts and a value-added tax. After the failed meeting Sunday, Bundesbank President Weidmann said "the likelihood that no agreement will be reached is rising" and that "time is running out."
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) June Empire manufacturing survey of general business conditions (expected +2.91 to 6.00 after May's +4.28 to 3.09), (2) May industrial production (expected +0.2% after April's -0.3% m/m) and May capacity utilization (expected +0.1 to 78.3% after April's -0.3 to 78.2%), and (3) June NAHB housing market index (expected +2 to 56 after May's -2 to 54).None of the Russell 1000 companies report earnings today.
U.S. IPO's scheduled to price today include: none.
Equity conferences this week include: 2015 EIA Energy Conference on Tue, Bloomberg Technology Conference 2015 on Tue, Stifel Industrials Conference on Tue, BIO International Convention on Tue-Wed, Real Estate Investment World Asia 2015 on Wed, Goldman Sachs dotCommerce Day on Thu, JP Morgan Oil & Gas Forum on Thu, Leerink Health Care Services Conference on Thu, Telsey Advisory Group Advertising Trends Symposium on Thu.
OVERNIGHT U.S. STOCK MOVERS
21st Century Fox (FOXA -0.64%) was downgraded to 'Hold' from 'Buy' at Topeka.CVS Health (CVS -0.40%) agreed to acquire Target's (TGT -0.75%) pharmacy and clinic businesses for $1.9 billion.
BHP Billiton (BHP -0.53%) was upgraded to 'Hold' from 'Reduce' at HSBC.
Crown Holdings (CCK -1.03%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
EMC (EMC -0.84%) was downgraded to 'Market Perform' from 'Outperform' at FBR Capital.
Teradata (TDC +0.03%) was downgraded to 'Underperform' from 'Market Perform' at JMP Securities.
Micron (MU +0.44%) was downgraded to 'Underweight' from 'Equal Weight' at Morgan Stanley.
Alleghany (Y -0.30%) was upgraded to 'Buy' from 'Neutral' at Janney Capital.
SanDisk (SNDK -0.84%) was downgraded to 'Equal Weight' from 'Overweight' at Morgan Stanley.
United Technologies (UTX -0.61%) announced that it will pursue the separation of the Sikorsky Aircraft business from United Technologies.
comScore (SCOR +0.12%) was downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Farallon Capital reported an 8.6% stake in Perfect World (PWRD -0.45%) .
American Securities reported a 13.96% stake in Xerium Technologies (XRM +0.64%) .
OZ Management reported a 9.02% passive stake in PennTex (PTXP +0.25%) .
MARKET COMMENTS
September E-mini S&Ps (ESU15 -0.43%) this morning are down -6.75 points (-0.32%). Friday's closes: S&P 500 -0.70%, Dow Jones -0.78%, Nasdaq -0.77%. The S&P 500 on Friday closed lower on Greek default concerns and weakness in energy producers as crude oil prices declined. Stocks received support from news that the early-June U.S. consumer sentiment index rose +3.9 to 94.6, stronger than expectations of +0.5 to 91.2.Sep 10-year T-notes (ZNU15 +0.16%) this morning are up +5.5 ticks at a 1-week high. Friday's closes: TYU5 -1.50, FVU5 -1.00. Sep T-notes on Friday closed slightly lower on the stronger-than-expected increase in the early-Jun U.S. consumer sentiment index, and speculation that FOMC at its Jun 16-17 FOMC meeting will be more hawkish as it prepares the markets for an eventual interest rate increase. T-notes received support from Greek default concerns, which hammered stocks and boosted the safe-haven demand for T-notes.
The dollar index (DXY00 +0.33%) this morning is up +0.32 (+0.34%). EUR/USD (^EURUSD) is down -0.0053 (-0.47%). USD/JPY (^USDJPY) is up +0.23 (+0.19%). Friday's closes: Dollar Index -0.004 (-0.01%), EUR/USD -0.00014 (-0.01%), USD/JPY -0.092 (-0.07%). The dollar index on Friday closed little changed. The British pound climbed to a 3-week high against the dollar after BOE policy maker McCafferty said the time to begin policy tightening is approaching. The dollar received support from the stronger-than-expected early-June U.S. consumer sentiment index.
July WTI crude oil (CLN15 -1.27%) this morning is down -68 cents (-1.13%). July gasoline (RBN15 -1.04%) is down -0.0179 (-0.84%). Friday's closes: CLN5 -0.81 (-1.33%), RBN5 -0.0170 (-0.80%). Jul crude and gasoline on Friday closed lower on the sell-off in stocks, and concern that the global oil glut will persist after the IEA reported that Saudi Arabian May oil production rose to a record 10.25 million bpd and that Iraq May crude output rose to a record 3.85 million bpd.
GLOBAL EVENT CALENDAR06/15/2015
| US | 0830 ET | Jun Empire manufacturing survey of general business conditions expected +2.91 to 6.00, May +4.28 to 3.09. |
| 0915 ET | May industrial production expected +0.2%, Apr -0.3% m/m. May capacity utilization expected +0.1 to 78.3%, Apr -0.3 to 78.2%. | |
| 1000 ET | Jun NAHB housing market index expected +2 to 56, May -2 to 54. | |
| 1100 ET | USDA weekly grain export inspections. | |
| 1600 ET | USDA weekly crop progress. | |
| EUR | 0500 ET | Eurozone Apr trade balance expected +22.5 billion euros (nsa), Mar +23.4 billion euros (nsa). |
| 0900 ET | ECB President Mario Draghi delivers introductory statement at the Quarterly Hearing before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels, Belgium. |
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