OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (
ESZ13 +0.19%) this morning are up +0.10% and European stocks are down
-0.38%. Asian stocks closed mixed: Japan
-0.88%, Hong Kong +0.19%, China +0.47%, Taiwan
-0.73%, Australia
-0.26%, Singapore
-0.29%, South Korea +0.64%, India +0.15%. Supporting stock prices today is strength in Chinese manufacturing activity which expanded last month at the fastest pace in 15-months. European stocks were undercut by a
-3.1% decline in Royal Bank of Scotland after Britain's biggest publicly owned bank said it will write down as much as 4.5 billion pounds ($7.2 billion) in Q4, which will result in a "substantial" full-year loss. Also, Renault SA, France's second-biggest carmaker, dropped 3.5% after its partner Nissan Motor cut its full-year profit forecast by 15% due to weak sales in Europe and Asia. Japanese stocks were dragged lower by an 11% slump in Sony after the company lowered its full-year profit forecast by 40% on weak television and digital camera demand. Chinese stocks received a boost from a
-0.41 point decline in China's 7-day repurchase rate to a 1-week low of 4.636% after the PBOC added a net 29.1 billion yuan ($4.8 billion) via money-market operations in the last 4 days. Commodity prices are mostly lower. Dec crude oil (
CLZ13 -0.19%) is down
-0.15%. Dec gasoline (
RBZ13 +0.03%) is down
-0.05%. Dec gold (
GCZ13 -0.54%) is down
-0.66% at a 1-week low and Dec copper (
HGZ13 +0.50%) is up +0.48%. Agricultural and livestock prices are mixed. The dollar index (
DXY00 +0.40%) is up +0.34% at a 2-week high. EUR/USD (
^EURUSD) is down
-0.37% at a 2-week low on speculation that slowing inflation and record unemployment in the Eurozone may prompt the ECB to lower interest rates as soon as its meeting next week. USD/JPY (
^USDJPY) is down
-0.08%. December T-note prices (
ZNZ13 -0.27%) are down
-8 ticks.
The China Oct manufacturing PMI rose +0.3 to 51.4, better than expectations of +0.1 to 51.2 and the fastest pace of expansion in 1
-1/2 years.
UK Oct manufacturing PMI fell
-0.3 from a downward revised 56.3 in Sep to 56.0, lower than expectations of
-0.3 to 56.4.
Japan Oct vehicle sales climbed +17.3% y/y, the most in 15-months.
U.S. STOCK PREVIEW
Today’s Oct ISM manufacturing index is expected to show a
-1.2 point decline to 55.0, more than reversing the +0.5 point increase to 56.2 seen in September. Today’s Oct total vehicle sales report is expected to improve to 15.40 million units from 15.21 million units in September. There are 5 of the S&P 500 companies that report earnings today: NextEra (consensus $1.39), Chevron (2.70), Washington Post, Berkshire Hathaway (2402.90), and Life Technologies (0.96). There are no equity conferences today.
OVERNIGHT U.S. STOCK MOVERS
Facebook (
FB +2.45%) was upgraded to 'Buy' from 'Hold' at Argus with a price target of $64.
Netflix (
NFLX +1.36%) was upgraded to 'Outperform' from 'Neutral' at RW Baird who raised their price target on the stock to $420 from $383.
WellCare (
WCG +0.68%) reported Q3 adjusted EPS of $1.56, better than consensus of $1.52, but then lowered guidance on fiscal 2013 EPS to $4.70-$4.80 from $4.70-$4.90, below consensus of $4.91.
Citigroup reiterated its 'Buy' raing on Mastercard (
MA -1.18%) and raised its price target oon the stock to $835 from $710.
Bebe stores (
BEBE +0.33%) was downgraded to 'Neutral' from 'Buy' at Janney Capital.
PetSmart (
PETM -0.07%) was downgraded to 'Neutral' from 'Buy' at BofA/Merrill.
Greenbrier ({=GBX was upgraded to 'Buy' from 'Underperform' at BofA/Merrill.
MDU Resources (
MDU -0.17%) reported Q3 adjusted EPS of 49 cents, better than consensus of 46 cents, and then raised guidance on fiscal 2013 adjusted EPS view to $1.35-$1.45 from $1.30-$1.40.
Barrick Gold (
ABX -5.41%) filed to sell 163.5 million shares of common stock.
Northeast Utilities (
NU -0.53%) reported Q3 EPS of 66 cents, weaker than consensus of 73 cents.
Gabelli reported a 5.05% stake in Global Sources (
GSOL -3.48%) .
Republic Services (
RSG +0.36%) reported Q3 EPS of 55 cents, higher than consensus of 50 cents.
Newmont Mining (
NEM -2.78%) reported Q3 EPS of 46 cents, well ahead of consensus of 32 cents.
Oaktree Capital reported a 6.8% stake in Contango Oil & Gas (
MCF -2.08%) .
MRC Global (
MRC -0.78%) reported Q3 adjusted EPS of 40 cents, weaker than consensus of 45 cents.
First Solar (
FSLR -2.12%) climbed 8% in pre-market trading after it reported Q3 EPS ex-charges of $2.28, more than double consensus of $1.00, and then raised guidance on fiscal 2013 EPS view to $4.25-$4.50 from $3.75-$4.25, well above consensus of $3.77.
Fluor (
FLR -2.35%) reported Q3 EPS of $1.05, better than consensus of $1.04.
Mohawk (
MHK -0.38%) reported Q3 EPS ex-items of $2.02, well above consensus of $1.90.
AIG (
AIG -0.62%) reported Q3 EPS of 96 cents, higher than consensus of 95 cents.
MARKET COMMENTS
Dec E-mini S&Ps (
ESZ13 +0.19%) this morning are up +1.75 points (+0.10%). The S&P 500 index on Thursday closed lower. Strong Q3 earnings results gave stocks an early lift as 76% of the 356 reporting S&P 500 companies have beaten estimates. Stocks fell back, though, on concern the Fed may start to taper QE3 as soon as next month after the Chicago Oct PMI unexpectedly jumped +10.2 to 65.9, stronger than expectations of a
-0.7 point decline to a 2
-1/2 year high of 55.0. Closes: S&P 500
-0.38%, Dow Jones
-0.47%, Nasdaq 100
-0.23%.
Dec 10-year T-notes (
ZNZ13 -0.27%) this morning are down
-8 ticks. Dec 10-year T-note prices on Thursday dropped to a 1-week low and closed lower. The surge in the Chicago Oct PMI to its fastest pace of expansion in 2
-1/2 years undercut T-note prices as it bolstered speculation the Fed may taper QE3 as soon as next month. Closes: TYZ3
-5.0, FVZ3 +0.25.
The dollar index (
DXY00 +0.40%) this morning is up +0.272 (+0.34%) at a 2-week high. EUR/USD (
^EURUSD) is down
-0.0050 (
-0.37%) at a 2-week low. USD/JPY (
^USDJPY) is down
-0.08 (
-0.08%). The dollar index on Thursday rallied sharply to a 2-week high and closed higher. An unexpected increase in the Chicago Oct PMI to its fastest pace of expansion in 2
-1/2 years boosted the dollar as it bolstered speculation the Fed may start to taper QE3 as soon as the Dec 17
-18 FOMC meeting. EUR/USD tumbled to a 2-week low on speculation the ECB may cut interest rates further after the Eurozone Oct CPI eased to a 3
-3/4 year low of +0.7% y/y, weaker than expectations of +1.1% y/y. Closes: Dollar index +0.418 (+0.52%), EUR/USD
-0.01521 (
-1.11%), USD/JPY
-0.154 (
-0.16%).
Dec WTI crude oil (
CLZ13 -0.19%) this morning is down
-14 cents (
-0.15%) and Dec gasoline (
RBZ13 +0.03%) is down
-0.0012 (
-0.05%). Dec crude oil and gasoline prices on Thursday closed lower. Negative factors included (1) the rally in the dollar index to a 2-week high, and (2) negative carry-over from Wednesday’s EIA report that showed weekly crude stockpiles climbed +4.09 million bbls to a 4-month high of 383.9 million bbls. Closes: CLZ3
-0.39 (
-0.40%), RBZ3
-0.0286 (
-1.09%).
GLOBAL EVENT CALENDAR11/01/2013
| US | 0910 ET | St. Louis Fed President James Bullard speaks to the St. Louis Regional Chambers Financial Forum about U.S. monetary policy and the economy. |
| 1000 ET | Oct ISM manufacturing expected -1.2 to 55.0, Sep +0.5 to 56.2. Oct ISM prices paid expected -1.5 to 55.0, Sep +2.5 to 56.5. |
| 1200 ET | Richmond Fed President Jeffrey Lacker speaks to the Global Independence Center in Philadelphia, PA. |
| 1700 ET | Oct total vehicle sales expected 15.43 million, Sep 15.21 million. Oct domestic vehicle sales expected 11.90 million, Sep 11.66 million. |
| JPN | 0100 ET | Japan Oct vehicle sales, Sep +12.4% y/y. |
| UK | 0530 ET | UK Oct PMI manufacturing expected -0.3 to 56.4, Sep 56.7. |
U.S. STOCK CALENDAR11/01/2013
| Company Name | Ticker | Time | Event Description | Period | Estimate |
|---|
| NextEra Energy Inc | NEE US | Bef-mkt | | Q3 2013 | 1.394 |
| American International Group Inc | AIG US | 8:00 | | Q3 2013 | |
| Chevron Corp | CVX US | 8:30 | | Q3 2013 | 2.698 |
| Washington Post Co/The | WPO US | 8:30 | | Q3 2013 | |
| Northeast Utilities | NU US | 9:00 | | Q3 2013 | |
| NextEra Energy Inc | NEE US | 9:00 | | Q3 2013 | |
| Ford Motor Co | F US | 9:30 | | 2013 | |
| NYSE Euronext | NYX US | Aft-mkt | | | |
| Netflix Inc | NFLX US | | | | |
| Berkshire Hathaway Inc | BRK/A US | | | Q3 2013 | 2402.9 |
| Life Technologies Corp | LIFE US | | | Q3 2013 | 0.962 |
| General Motors Co | GM US | | | 2013 | |
