Monday, October 19th, 2015View Older Reports
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OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15 -0.23%) are down -0.10% as they fall back from a 1-3/4 month high in overnight trade. Stocks retreated after China reported its slowest pace of growth in 6-1/2 years and as Morgan Stanley dropped over 5% in pre-market trading when it reported weaker-than-expected Q3 earnings. European stocks are up +0.54% at a 5-week high led by a 4% rally in Deutsche Bank AG after it reshuffled its management in an attempt to reshape the company. Asian stocks settled mixed: Japan -0.88%, Hong Kong +0.04%, China -0.14%, Taiwan +0.31%, Australia +0.03%, Singapore-0.20%, South Korea +0.04%, India +0.55%. China's Shanghai Composite rose to a 1-3/4 month high after China Q3 GDP grew at a faster pace than expected, but the slowest pace of manufacturing activity in 6 months undercut stocks as they shed their gains and closed slightly lower.
The dollar index (DXY00 +0.30%) is up +0.32%. EUR/USD (^EURUSD) is down -0.23% at a 1-week low ahead of Thursday's ECB monetary policy meeting. USD/JPY (^USDJPY) is unchanged.
New York Fed President Dudley said "it's still too early to consider an interest-rate increase." He added that "the situation has changed in the past few months. It's true that we thought we could raise rates by the end of 2015, but turbulence in financial markets, modest global growth, energy prices and macro-prudential imbalances are slowing this process down."
China Q3 GDP rose +6.9% y/y, stronger than expectations of +6.8% y/y, but still the slowest pace of growth in 6-1/2 years.
China Sep industrial production rose +5.7% y/y, weaker than expectations of +6.0% y/y and the slowest pace on 6 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Oct NAHB housing market index (expected unch at 62, Sep +1 to 62), and 92) Richmond Fed President Jeffrey Lacker's speech on “Early Childhood Education in the Context of Lifetime Human Capital Investment” at the University of Richmond.
There are 7 of the S&P 500 companies that report earnings today: Morgan Stanley (consensus $0.63), IBM (3.30), Genuine Parts (1.23), Halliburton (0.27), M&T Bank (2.00), Hasbro (1.52), Zions Bancorporation (0.42).
U.S. IPO's scheduled to price today: Adesto Technologies (IOTS), Fuling Global (FORK).
Equity conferences today include: Private Wealth Latin America and The Caribbean Forum on Wed.
OVERNIGHT U.S. STOCK MOVERS
Morgan Stanley (MS +1.01%) slid over 5% in pre-market trading after it reported Q3 EPS of 34 cents, well below consensus of 63 cents.
Hasbro (HAS +3.25%) reported Q3 EPS of $1.58, better than consesnsus of $1.52.
Diebold (DBD +1.98%) jumped over 4% in pre-market trading after it offered to buy Wincor Nixdorf AG for $1.8 billion.
Halliburton (HAL -3.69%) reported Q3 EPS of 31 cents, above consensus of 27 cents.
Weight Watchers (WTW -1.59%) surged over 30% in pre-market trading after Oprah Winfrey bought 10% of the stock in a partnership.
PMC-Sierra (PMCS -0.39%) climbed 11% in pre-market trading after Microsemi offered to buy the company for $2.4 billion.
Western Digital (WDC -1.97%) rose over 1% in pre-market trading after it said a decision from China's Misitry of Commerce allows it to integrate some parts of its subsidiaries.
Potash (POT -1.04%) was raised to 'Sector Outperform' from 'Sector Perform' by CIBC with a price target of $28.
Reuters reports that Lockheed Martin (LMT +0.29%) has started a review aimed at cutting corporate overhead costs by as much as 30%.
AT&T's (T +1.02%) DirecTV said it will restate financials for Q2 as they contained an error in calculation of the Venezuelan unit's assets and associated impairment.
According to a person with knowledge of the matter, the Fresh Market (TFM +7.82%) is working with Apollo Global Management LLC to explore a possible buyout of the company.
Great Lakes Dredge & Dock (GLDD -4.31%) has withdrawn its previously announced adjusted EBITDA guidance for fiscal year 2015 and said its Board of Directors has initiated a process to review potential strategic alternatives to enhance stockholder value.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ15 -0.23%) this morning are down -2.00 points (-0.10%). Friday's closes: S&P 500 +0.46%, Dow Jones +0.43%, Nasdaq +0.46%. The S&P 500 on Friday posted a 1-3/4 month high and closed higher on carryover support from a +1.60% rally in China's Shanghai Composite to a 1-3/4 month high and on the +4.9 point increase in U.S. Oct University of Michigan consumer sentiment to 92.1, stronger than expectations of +1.8 to 89.0. Stock prices were undercut by the -0.2% drop in U.S. Sep industrial production and the -298,000 fall in U.S. Aug JOLTS job openings to 5.37 million, a larger decline than expectations of -173,000 to 5.58 million.
Dec 10-year T-notes (ZNZ15 -0.15%) this morning are down -6 ticks. Friday's closes: TYZ5 -3.00, FVZ5 -2.00. Dec T-notes on Friday closed lower on reduced safe-haven demand with the rally in the S&P 500 to a 1-3/4 month high and on the larger-than-expected increase in U.S. Oct University of Michigan consumer sentiment. T-notes found underlying support from the drop in the 10-year inflation expectations breakeven rate to a 2-week low.
The dollar index (DXY00 +0.30%) this morning is up +0.303 (+0.32%). EUR/USD (^EURUSD) is down -0.0026 (-0.23%) at a 1-week low. USD/JPY (^USDJPY) is unchanged. Friday's closes: Dollar Index +0.169 (+0.18%), EUR/USD -0.0038 (-0.33%), USD/JPY +0.54 (+0.45%). The dollar index on Friday closed higher on (1) increased safe-haven demand for the dollar on concern over escalation of Middle Eastern hostilities after Turkey shot down a drone that invaded its airspace, and (2) the stronger than expected U.S. Oct University of Michigan consumer sentiment report.
Nov crude oil (CLX15 -0.99%) this morning is down -47 cents (-0.99%) and Nov gasoline (RBX15 -1.58%) is down -0.0209 (-1.57%). Friday's closes: CLX5 +0.88 (+1.90%), RBX5 +0.0201 (+1.54%). Nov crude oil and gasoline prices on Friday closed higher on (1) the -10 rig drop to a 5-year low of 595 in Baker Hughes U.S. oil rigs for the tenth straight weekly decline, and (2) the larger-than-expected increase in U.S. Oct University of Michigan consumer sentiment. Crude oil prices were undercut by the stronger dollar.
GLOBAL EVENT CALENDAR10/19/2015
| US | 1000 ET | Oct NAHB housing market index expected unch at 62, Sep +1 to 62. |
| 1100 ET | USDA weekly grain export inspections. | |
| 1200 ET | Richmond Fed President Jeffrey Lacker speaks on Early Childhood Education in the Context of Lifetime Human Capital Investment at the University of Richmond. | |
| 1600 ET | USDA weekly crop progress. | |
| EUR | 0500 ET | Eurozone Aug construction output, Jul +1.0% m/m and +1.8% y/y. |
U.S. STOCK CALENDAR10/19/2015
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Genuine Parts Co | GPC US | Bef-mkt | Q3 2015 Earnings Release | Q3 2015 | 1.229 |
| Halliburton Co | HAL US | Bef-mkt | Q3 2015 Earnings Release | Q3 2015 | 0.272 |
| M&T Bank Corp | MTB US | Bef-mkt | Q3 2015 Earnings Release | Q3 2015 | 2.004 |
| Hasbro Inc | HAS US | Bef-mkt | Q3 2015 Earnings Release | Q3 2015 | 1.521 |
| Morgan Stanley | MS US | 7:00 | Q3 2015 Earnings Release | Q3 2015 | 0.627 |
| Hasbro Inc | HAS US | 8:30 | Q3 2015 Earnings Call | Q3 2015 | |
| Morgan Stanley | MS US | 8:30 | Q3 2015 Earnings Call | Q3 2015 | |
| Halliburton Co | HAL US | 9:00 | Q3 2015 Earnings Call | Q3 2015 | |
| M&T Bank Corp | MTB US | 9:30 | Q3 2015 Earnings Call | Q3 2015 | |
| Genuine Parts Co | GPC US | 11:00 | Q3 2015 Earnings Call | Q3 2015 | |
| Aetna Inc | AET US | 13:30 | Extraordinary Shareholders Meeting - M&A Vote | Y 2015 | |
| Humana Inc | HUM US | 15:30 | Extraordinary Shareholders Meeting - M&A Vote | Y 2015 | |
| International Business Machines Corp | IBM US | 17:00 | Q3 2015 Earnings Call | Q3 2015 | |
| International Business Machines Corp | IBM US | Aft-mkt | Q3 2015 Earnings Release | Q3 2015 | 3.303 |
| Zions Bancorporation | ZION US | Aft-mkt | Q3 2015 Earnings Release | Q3 2015 | 0.422 |
| Zions Bancorporation | ZION US | 17:30 | Q3 2015 Earnings Call | Q3 2015 |
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