'Friday, October 2nd, 2015View Older Reports
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OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15 +0.35%) are up +0.31% and European stocks are up +1.79% ahead of today's U.S. payrolls report that may help gauge when the Fed will raise interest rates. Despite being closed for the next week due to holiday, China took steps to boost economic growth that also gave equity markets a lift when they eased mortgage requirements and took measures to increase car purchases. European stocks were also underpinned on remarks from ECB President Draghi who said late Thursday that growth is returning to Europe. Asian stocks settled mixed: Japan +0.02%, Hong Kong +3.17%, China and India closed for holiday, Taiwan +0.11%, Australia -1.18%, Singapore -0.31%, South Korea -0.62%. Casino operators led gains in Hong Kong stocks that surged over 3% as data showed Macau's monthly gaming revenue was in line with expectations and after the Macau Daily reported that China is studying measures to revive the city's economy.
The dollar index (DXY00 +0.13%) is up +0.15%. EUR/USD (^EURUSD) is down -0.30% on speculation the ECB may expand QE after Eurozone Aug producer prices fell at the fastest pace in 7 months. USD/JPY (^USDJPY) is up +0.23%.
ECB President Draghi, speaking at an awards event in New York Thursday evening, said that economic growth in the Eurozone "is returning" and that "the progress achieved over the past three years to stabilize and strengthen the Eurozone is real."
Eurozone Aug PPI fell -0.8% m/m, weaker than expectations of -0.6% m/m and the largest monthly decline in 7 months. On an annual basis, Aug PPI fell-2.6% y/y, weaker than expectations of -2.4% y/y and the fastest pace of decline in 6 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep non-farm payrolls (expected +200,000, Aug +173,000) and Sep unemployment rate (expected unch at 5.1%), (2) Sep New York ISM (Aug -17.7 to 51.1), (3) Aug factory orders (expected -1.2%, Jul +0.4% and -0.6% ex transportation), (4) St. Louis Fed President James Bullard's speech on monetary policy to the Shadow Open Market Committee at the Princeton Club, and (5) Fed Vice Chair Stanley Fischer's speech at a Boston Fed conference on “Macroprudential Monetary Policy.”
None of the Russell 2000 companies report earnings today.
U.S. IPO's scheduled to price today include: Realty Income Corp (O), Civitas Solutions (CIVI), Strongbridge Biopharma (SBBP).
Equity conferences today: none.
OVERNIGHT U.S. STOCK MOVERS
Cigna (CI +0.30%) was rated a new 'Buy' at Citigroup with a price target of $174 and United Health (UNH +0.52%) was also rated a 'Buy' with a price target $133.
Morgan Stanley cut Gilead (GILD +0.08%) and Regeneron Pharmaceuticals (REGN +1.68%) to 'Equal-Weight' from 'Overweight.'
Boston Fed President Rosengren said that raising rates in 2015 "is a reasonable forecast."
CME Group (CME +1.12%) reported average daily volume in Sep was 14.1 million contracts, down -7% y/y.
Wynn Resorts (WYNN -2.65%) jumped 12% in pre-market trading as it followed Macau casino operators higher after the city reported gaming revenue that met projections.
Nordstrom (JWN -0.39%) rose over 3% in after-hours trading after it authorized a special dividend of $4.85 a share and authorized an additional stock buyback program of up to $1 billion.
Neiman Marcus Group (NMG) announced that it laid off 500 or 3% its workforce.
Barracuda Networks (CUDA +1.99%) announced the authorization of a stock repurchase program of up to $50 million in common stock.
Progress Software (PRGS -0.77%) sank over 10% in after-hours trading after it cut its fiscal 2015 revenue forecast to $410 million-$415 million from $415 million-$425 million, below consensus of $414.7 million.
Micron (MU -1.40%) gained nearly 7% in after-hours trading after it reported Q4 EPS of 37 cents, better than consensus of 33 cents.
Keurig Green Mountain Coffee Roasters (GMCR -0.17%) fell 4% in after-hours trading after John Whoriskey, president of U.S. sales and marketing, resigned.
Bebe Stores (BEBE +4.26%) rose over 3% in after-hours trading after the company authorized a $5 million stock repurchase program and said it will eliminate more than 50 positions.
MARKET COMMENTS
Dec E-mini S&Ps (ESZ15 +0.35%) this morning are up +6.00 points (+0.31%). The S&P 500 Thursday closed higher: S&P 500 +1.91%, Dow Jones +1.47%, Nasdaq +2.39%. Bullish factors included (1) reduced Chinese economic concerns after the China Sep manufacturing PMI unexpectedly rose +0.1 to 49.8, better than expectations of unch at 49.7, and (2) stronger than expected U.S. Sep auto sales with 18.07 million units sold, higher than expectations of 17.60 million and the most in 10 years. Bearish factors included (1) the +10,000 increase in U.S. weekly initial unemployment claims, more than expectations of +4,000 to 271,000, and (2) a loss of momentum in manufacturing after the Sep ISM manufacturing index fell -0.9 to 50.2, more than expectations of -0.5 to 50.6 and the slowest pace of expansion in 2-1/3 years.
Dec 10-year T-notes (ZNZ15 -0.05%) this morning are down -4 ticks. Dec T-notes Thursday rallied up to a 5-week high but fell back and settled little changed: TYZ5 +0.50, FVZ5 -0.50. Bullish factors included (1) the larger-than-expected increase in U.S. weekly jobless claims, (2) the bigger-than-expected decline in the Sep ISM manufacturing index to its slowest pace of expansion in 2-1/3 years, which may keep the Fed from raising interest rates. T-notes erased most of their gains as stocks advanced and on positon squaring ahead of Friday's Sep payroll data.
Dec 10-year T-notes (ZNZ15 -0.05%) this morning are down -4 ticks. Dec T-notes Thursday rallied up to a 5-week high but fell back and settled little changed: TYZ5 +0.50, FVZ5 -0.50. Bullish factors included (1) the larger-than-expected increase in U.S. weekly jobless claims, (2) the bigger-than-expected decline in the Sep ISM manufacturing index to its slowest pace of expansion in 2-1/3 years, which may keep the Fed from raising interest rates. T-notes erased most of their gains as stocks advanced and on positon squaring ahead of Friday's Sep payroll data.
The dollar index (DXY00 +0.13%) this morning is up +0.144 (+0.15%). EUR/USD (^EURUSD) is down -0.0034 (-0.30%). USD/JPY (^USDJPY) is up +0.28 (+0.23%). The dollar index Thursday closed lower: Dollar Index -0.165 (-0.17%), EUR/USD +0.0018 (+0.16%), USD/JPY +0.05 (+0.04%). Bearish factors included (1) speculation the Fed may further delay an interest rate increase after the Sep ISM manufacturing index fell to its lowest pace of expansion in 2-1/3 years, and (2) weakness in USD/JPY after a sell-off in stocks boosted the safe-haven demand for the yen.
Nov crude oil (CLX15 +1.03%) this morning is up +30 cents (+0.87%) and Nov gasoline (RBX15 -1.25%) is down -0.0228 (-1.67%). Nov crude oil and gasoline Thursday posted 1-week highs but settled mixed: CLX5 -0.35 (-0.78%), RBX5 +0.0043 (+0.31%). Bullish factors included (1) a weaker dollar, (2) signs that Chinese manufacturing activity has stabilized after the Sep China manufacturing PMI unexpectedly rose. Bearish factors included (1) the bigger than expected decline in the Sep ISM manufacturing index to its lowest pace of expansion in 2-1/3 years, which signals slower energy demand, and (2) the ongoing supply glut with U.S. crude inventories nearly 100 million bbl above the 5-year seasonal average.
GLOBAL EVENT CALENDAR10/02/2015
| US | 0830 ET | Sep non-farm payrolls expected +200,000, Aug +173,000. Sep private payrolls expected +198,000, Aug +140,000. Sep manufacturing payrolls expected unch, Aug 17,000. Sep unemployment rate expected unch at 5.1%. |
| 0830 ET | Sep average hourly earnings expected +0.2% m/m and +2.4% y/y, Aug +0.3% m/m and +2.2% y/y. Sep average weekly hours all employees expected unch at 34.6 hours. | |
| 0945 ET | Sep New York ISM, Aug -17.7 to 51.1. | |
| 1000 ET | Aug factory orders expected -1.2%, Jul +0.4% and -0.6% ex transportation. | |
| 1230 ET | St. Louis Fed President James Bullard speaks on monetary policy to the Shadow Open Market Committee at the Princeton Club. | |
| 1330 ET | Fed Vice Chair Stanley Fischer speaks at a Boston Fed conference on Macroprudential Monetary Policy. | |
| UK | 0430 ET | UK Sep Markit/CIPS construction PMI expected +0.2 to 57.5, Aug 57.3. |
| EUR | 0500 ET | Eurozone Aug PPI expected -0.6% m/m and -2.4% y/y, Jul -0.1% m/m and -2.1% y/y. |
U.S. STOCK CALENDAR10/02/2015
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Merck & Co Inc | MRK US | PDUFA, Keytruda, previously treated non-small cell lung cancer | |||
| AutoNation Inc | AN US | September 2015 Sales and Revenue Release | 2015 | ||
| Delta Air Lines Inc | DAL US | September 2015 Sales and Revenue Release - Traffic Results | 2015 |
