Monday, June 8th, 2015View Older Reports
Everything you need to know about the markets in one free daily newsletter.
You will also receive a free subscription to the Barchart family of newsletters.
OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.07%) this morning are down -0.10% and European stocks are down -0.78% at a 3-1/2 month low. The ongoing Greek debt crisis continues to weigh on stocks as the Greek government needs to seal an accord with creditors or get another extension before the end of the month. The 10-year Greek bond yield rose +17 bp to a 4-session high of 11.39%. Asian stocks closed mixed: Japan -0.02%, Hong Kong +0.21%, China +2.17%, Taiwan +0.30%, Australia close for holiday, Singapore -0.40%, South Korea -0.29%, India -0.92%. China's Shanghai Composite rose to a 7-1/3 year high on speculation that MSCI Inc. will include A shares of Chinese stocks in its emerging-market indexes. China, through its companies listed in Hong Kong, accounts for more than 25% of the emerging-market benchmark, the largest weighting in the gauge. MSCI has kept China's A shares out of its indexes due to limitations on their tradability and will decide on Tuesday whether to include China's locally stocks in its equity benchmarks.Commodity prices are mixed. Jul crude oil (CLN15 -0.68%) is down -0.88%. Jul gasoline (RBN15 -0.49%) is down -0.55%. Metals prices are mixed. Aug gold (GCQ15 +0.43%) is up +0.39%. Jul copper (HGN15 -0.11%) is down -0.28%. Agricultural prices are higher.
The dollar index (DXY00 -0.13%) is down -0.02%. EUR/USD (^EURUSD) is up +0.21% on upbeat comments from ECH Governing Council member Nowotny. USD/JPY (^USDJPY) is down -0.26% on stronger-than-expected Q1 Japan GDP.
Sep T-note prices (ZNU15 +0.05%) are up +4 ticks.
ECB Governing Council member Nowotny said the Eurozone's economic downturn "is over." He said the Eurozone has overcome the risk of deflation as the ECB's asset purchases have had the desired effect. He added that economic development in Europe is "positive," although challenges remain.
The China May trade balance widened to a surplus of +$59.49 billion from +$34.13 billion in Apr, more than expectations of +$44.80 billion. May exports fell -2.5% y/y, less than expectations of -4.4% y/y. May imports fell -17.6% y/y, more than expectations of -10.0% y/y.
Japan Q1 GDP was revised upward to 3.9% q/q annualized from the originally reported 2.4% q/q annualized, stronger than expectations of 2.8% q/q annualized and the fastest pace of growth in a year.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) the second day of the 2-day G-7 Summit in Germany.There are two of the Russell 1000 companies that report earnings today: Sears (consensus -$2.59), H&R Block (2.68).
U.S. IPO's scheduled to price today include: none.
Equity conferences this week include: Apple's Worldwide Developer's Conference (WWDC15) on Mon-Fri, Nomura Retail Conference on Tue, Oppenheimer Energy Conference on Tue, Morgan Stanley Financials Conference on Tue-Wed, NAREIT REITWeek Investor Forum on Tue-Wed, Piper Jaffray Consumer Conference on Tue-Wed, Piper Jaffray Consumer Conference on Tue-Wed, Goldman Sachs Global Healthcare Conference on Tue-Thu, Deutsche Bank db Access Global Consumer Conference on Tue-Thu, William Blair Growth Stock Conference on Tue-Thu, Goldman Sachs European Payments Conference on Wed, Macquarie Group Ltd. Global Metals, Mining & Materials Conference on Wed, Gabelli & Co., Inc. Movie & Entertainment Conference on Thu, Goldman Sachs 2020 Vision Chemicals Conference on Thu, Susquehanna Energy and Industrials Conference on Thu, Barclays High Yield Bond and Syndicated Loan Conference on Thu-Fri.
OVERNIGHT U.S. STOCK MOVERS
Delta Air Lines (DAL -0.05%) and United Continental (UAL -0.88%) were both downgraded to 'Outperform' from 'Strong Buy' at Raymond James.CBOE Holdings (CBOE -0.64%) was upgraded to 'Hold' from 'Sell' at Evercore.
Wal-Mart (WMT -1.47%) was upgraded to 'Strong Buy' from 'Outperform' at Raymond James.
Affiliated Managers (AMG -0.39%) was initiated with a 'Buy' at Goldman Sachs with a price target of $258.
Franklin Resources (BEN +0.28%) was initiated with a 'Sell' at Goldman Sachs with a price target of $49.
BlackRock (BLK -0.70%) was initiated with a 'Buy' at Goldman Sachs with a price target of $421.
Home Depot (HD -0.98%) was initiated with an 'Overweight' at Atlantic Equities witha price target of $128.
Invesco (IVZ +0.05%) was upgraded to 'Buy' from 'Neutral' at UBS.
Energy Transfer Equity (ETE +2.43%) was reinstated with an 'Overweight' at Barclays with a price target of $92.
Energy Transfer Partners (ETP +0.66%) was reinstated with an 'Overweight' at Barclays with a price target of $70.
Huntington Ingalls (HII +0.24%) was awarded a $3.35 billion government contract for detail, design and construction of CVN 79, the aircraft carrier USS John F. Kennedy.
AB Value Partners reported a 6.61% stake in Image Sensing Systems (ISNS -0.96%) .
Soros Fund reported a 5.19% passive stake in MaxLinear (MXL +0.66%) .
Piedmont Natural Gas (PNY -0.91%) reported Q2 EPS of 84 cents, better than consensus of 79 cents, although Q2 revenue of $424.9 million was weaker than consensus of $488.8 million.
MARKET COMMENTS
June E-mini S&Ps (ESM15 -0.07%) this morning are down -2.00 points (-0.10%). Friday's closes: S&P 500 -0.14%, Dow Jones -0.31%, Nasdaq -0.22%. The S&P 500 on Friday slid to a 3-1/2 week low and closed lower on concern about an accelerated Fed rate hike after the +280,000 increase in U.S. May non-farm payrolls, stronger than expectations of +226,000 and the largest increase in 5 months. In addition, there continued to be concern about the Greek crisis after the Greek PM appeared to reject the take-it-or-leave-it offer by the Eurozone/IMF.Sep 10-year T-notes (ZNU15 +0.05%) this morning are up +4 ticks. Friday's closes: TYU5 -26.50, FVU5 -15.75. Sep T-notes on Friday slumped to an 8-month low and closed lower on concerns that the Fed might be closer to a rate hike after the stronger-than-expected U.S. May payroll report of +280,000. In addition, May average hourly earnings rose by +2.3% y/y, more than expectations of +2.2% y/y and the largest annual increase in 1-3/4 years.
The dollar index (DXY00 -0.13%) this morning is down -0.022 (-0.02%). EUR/USD (^EURUSD) is up +0.0023 (+0.21%). USD/JPY (^USDJPY) is down -0.33 (-0.26%). Friday's closes: Dollar Index +0.845 (+0.89%), EUR/USD -0.01275 (-1.13%), USD/JPY +1.220 (+0.98%). The dollar index on Friday settled higher on the possibility of an accelerated Fed rate hike after the strong U.S. May payroll report of +280,000. In addition, the euro was undercut by the Greek crisis after Greece deferred a debt payment due to the IMF Friday until the end of the month. USD/JPY surged to a 13-year high on expectations for the Fed to tighten monetary policy while the BOJ expands stimulus.
July WTI crude oil (CLN15 -0.68%) this morning is down -52 cents (-0.88%). July gasoline (RBN15 -0.49%) is down -0.0112 (-0.55%). Friday's closes: CLN5 +0.96 (+1.66%), RBN5 +0.0465 (+2.35%). Jul crude oil and gasoline on Friday rebounded from 1-week lows and closed higher on the larger-than-expected +280,000 increase in U.S. May non-farm payrolls, which signaled stronger economic growth and energy demand. In addition, Baker Hughes reported that U.S. operating oil rigs fell to a 4-3/4 year low of 642, which will undercut U.S. oil production. Other bearish factors included the stronger dollar and OPEC's decision to maintain its crude production target at 30 million bpd, thus keeping alive its price war on high-cost crude oil producers.
GLOBAL EVENT CALENDAR06/08/2015
| US | 1100 ET | USDA weekly grain export inspections. |
| 1600 ET | USDA weekly crop progress. | |
| JPN | 0030 ET | Japan May bankruptcies, Apr -18.16% y/y. |
| 0100 ET | Japan May eco-watchers survey current expected +0.4 to 54.0, Apr 53.6. May eco-watchers survey outlook expected -0.2 to 54.0, Apr 54.2. | |
| GER | 0200 ET | German Apr industrial production expected +0.6% m/m and +0.9% y/y, Mar -0.5% m/m and +0.1% y/y. |
| 0200 ET | German Apr trade balance expected +19.4 billion euros, Mar +23.0 billion euros. Apr exports expected -0.4% m/m, Mar +1.3% m/m. Apr imports expected +0.5% m/m, Mar +2.4% m/m. | |
| 0200 ET | German Apr current account balance expected +20.5 billion euros, Mar +27.9 billion euros. | |
| EUR | 0430 ET | Eurozone Jun Sentix investor confidence expected -0.9 to 18.7, May 19.6. |
| UK | 1901 ET | UK May BRC sales like-for-like expected +1.2% y/y, Apr -2.4% y/y. |
| CHI | 2130 ET | China May CPI expected +1.3% y/y, Apr +1.5% y/y. China May PPI expected -4.5% y/y, Apr -4.6% y/y. |
U.S. STOCK CALENDAR06/08/2015
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| American Airlines Group Inc | AAL US | Bef-mkt | May 2015 Sales and Revenue Release - Traffic Results | 2015 | |
| Sears Holdings Corp | SHLD US | 6:00 | Q1 2016 Earnings Release | Q1 2016 | -2.59 |
| H&R Block Inc | HRB US | 16:30 | Q4 2015 Earnings Call | Q4 2015 | |
| United Continental Holdings Inc | UAL US | 17:00 | May 2015 Sales and Revenue Release - Operational Performance | 2015 | |
| H&R Block Inc | HRB US | Q4 2015 Earnings Release | Q4 2015 | 2.682 | |
| McDonald's Corp | MCD US | May 2015 Sales and Revenue Release | 2015 | ||
| Sears Holdings Corp | SHLD US | Q1 2016 Earnings Call | Q1 2016 | ||
| GoPro Inc | GPRO US | Annual General Meeting |
