Monday, August 1st, 2016View Older Reports
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OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU16 +0.10%) are up +0.06% at an all-time high. Gains in U.S. stock indexes were muted and European stocks are down -0.68% as banks stocks in Europe fell. Despite positive results on European bank stress tests, concerns over future bank profits are weighing on the sector with Barclays Plc down -2.0%, Deutsche Bank AG down -1.3% and UniCredit SpA down over -7%. Also weighing on stock prices is Chinese growth concerns after the China Jul manufacturing PMI unexpectedly contracted for the first time in 5 months. Asian stocks settled mixed: Japan +0.40%, Hong Kong +1.09%, China -0.87%, Taiwan +1.07%, Australia +0.45%, Singapore +0.83%, South Korea +0.93%, India -0.17%. The Shanghai Composite slid to a 4-week low after Chinese manufacturing activity unexpectedly contracted last month, while Japanese stocks closed higher on speculation Japanese Prime Minister Abe will unveil a 28 trillion yen ($273 billion) spending package on Tuesday.
The dollar index (DXY00 +0.20%) is up +0.19%. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is up +0.19%.
Sep T-note prices (ZNU16 -0.15%) are down -6.5 ticks after New York Fed President Dudley said "it is premature to rule out further monetary policy tightening this year."
New York Fed President Dudley said investors "appear to be too complacent" on interest rates" and "it is premature to rule out further monetary policy tightening this year."
The Eurozone Jul Markit manufacturing PMI was revised upward to 52.0 from the originally reported 51.9.
The China Jul manufacturing PMI (National Bureau of Statistics) fell -0.1 to 50.0, weaker than expectations of no change at 50.0 and the first time manufacturing activity contracted in 5 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) revised-Jul Markit manufacturing PMI (expected unrevised at 52.9, prelim-Jul +1.6 to 52.9), (2) Jul ISM manufacturing index (expected -0.2 to 53.0, Jun +1.9 to 53.2), (3) Jun construction spending (expected +0.7%, May -0.8% m/m), (4) UDA weekly grain export inspections, and (5) USDA Weekly Crop Progress.
There are 12 of the S&P 500 companies that report earnings today with notable reports including: General Growth Properties (consensus $0.36), Williams Cos (0.20), Loews (0.57), Vulcan Materials (1.01), Dun & Bradstreet (1.18), Alliant Energy (0.38).
U.S. IPO's scheduled to price today: Gemphire Technologies (GEMP).
Equity conferences this week include: Wells Fargo Services Conference on Wed-Thu.
OVERNIGHT U.S. STOCK MOVERS
SolarCity (SCTY -0.67%) jumped over 7% in pre-market trading after Reuters reported that the company may merge with Tesla Motors as soon as today.
Cubic (CUB +0.20%) was upgraded to 'Buy' from 'Hold' at Needham & Co.
First Business Financial Services (FBIZ -3.15%) was downgraded to 'Hold' from 'Buy' at Sandler O'Neill.
GNC Holdings (GNC +0.64%) was downgraded to 'Neutral' from 'Outperform' at Wedbush.
Leggett & Platt (LEG -3.59%) was downgraded to 'Market Perform' from 'Outperform' at Raymond James.
Harley-Davidson (HOG +3.74%) was upgraded to 'Outperform' from 'Market Perform' at BMO Capital Markets.
Caesars Entertainment Group (CZR -1.99%) will sell its online casino games unit Playtika Ltd for $4.4 billion to an investor group led by Shanghai Giant Network Technology Co.
Apple (AAPL -0.12%) shares have "gotten too cheap" based on free cash flow and other metrics, according to Barron's.
Publicis Groupe (PGPEF +1.01%) announced that Saatchi & Saatchi Chairman Kevin Roberts was placed on leave due to comments on gender equality.
Deutsche Bank (DB +1.43%) scored higher in bank stress tests released last Friday than in previous years.
Keycorp (KEY +0.43%) fell by -1.3% in after-hours trading on Friday after news that the First Niagra Financial Group.
MARKET COMMENTS
Sep E-mini S&Ps (ESU16 +0.10%) this morning are up +1.25 points at a fresh all-time high. Friday's closes: S&P 500 +0.16%, Dow Jones -0.13%, Nasdaq +0.14%. The S&P 500 on Friday closed slightly higher on deferred expectations for a Fed rate hike after the weak Q2 GDP report and the slightly weaker-than-expected final-July U.S. consumer sentiment index of +0.5 to 90.0 (vs expectations of +0.7 to 90.2). Stocks were undercut by the weaker-than-expected U.S. Q2 GDP report of +1.2% and the +1.1% upward rebound in Sep oil prices on Friday that provided a little relief for petroleum stocks.
Sep 10-year T-notes (ZNU16 -0.15%) this morning are down -6.5 ticks. Friday's closes: TYU6 +15.5, FVU6 +10. Sep 10-year T-notes on Friday closed moderately higher on the much weaker-than-expected U.S. Q2 GDP report of +1.2% (versus expectations of +2.0%), which caused market participants to significantly defer expectations for the timing of the Fed's next rate hike.
The dollar index (DXY00 +0.20%) is up +0.181 (+0.19%). EUR/USD (^EURUSD) is down -0.0011 (-0.10%). USD/JPY (^USDJPY) is up +0.19 (+0.19%). Friday's closes: Dollar index -1.21 (-1.25%), EUR/USD +0.0096 (+0.86%), USD/JPY -3.24 (-3.08%). The dollar index on Friday closed sharply lower on deferred Fed rate-hike expectations after the much weaker-than-expected U.S. GDP report of +1.2%. In addition, the yen rallied sharply after the BOJ on Friday announced much weaker-than-expected new monetary policy stimulus measures.
Sep WTI crude oil (CLU16 -1.39%) this morning is down -54 cents (-1.30%) and Sep gasoline (RBU16 -0.61%) is down -0.0065 (-0.49%). Friday's closes: CLU6 +0.46 (+1.12%), RBU6 +0.0183 (+1.41%). Sep crude oil and gasoline on Friday closed higher on the sharp drop in the dollar index and on pre-weekend short covering after the sharp decline seen over the past several weeks. However, bearish sentiment continued based on the world oil glut and the third straight rise in U.S. oil production.
GLOBAL EVENT CALENDAR08/01/2016
U.S. STOCK CALENDAR08/01/2016
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Showing posts with label SCTY. Show all posts
Showing posts with label SCTY. Show all posts
Monday, August 1, 2016
MORNING CALL 8/1
MORNING CALL
Friday, July 1, 2016
MORNING CALL 7/1
MORNING CALL
Friday, July 1st, 2016View Older Reports
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OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU16 -0.10%) are down -0.12% and European stocks are down -0.03% as the market consolidates following the sharp rally over the past three days. Stocks were under pressure on Chinese growth concerns after a private gauge of Chinese manufacturing activity unexpectedly fell. Losses in European stocks were limited after manufacturing activity in the Eurozone last month was revised up to a 6-month high. Global government bond markets rallied on speculation that the world's central banks will boost stimulus to contain the fallout from the Brexit vote after BOE Governor Carney signaled on Thursday the BOE could cut interest rates within months. The yield on the UK 10-year gilt fell to a record low of 0.776% and the 10-year yield on the Japanese 10-year bond fell further into negative territory as it slid to a record low -0.255%. Asian stocks settled higher: Japan +0.68%, Hong Kong closed for holiday, China +0.10%, Taiwan +0.83%, Australia +0.25%, Singapore +0.19%, South Korea +0.97%, India +0.54%.
The dollar index (DXY00 -0.42%) is down -0.40%. EUR/USD (^EURUSD) is up +0.14%. USD/JPY (^USDJPY) is down -0.56%.
Sep T-note prices (ZNU16 +0.39%) are up +20 ticks on the heels of rallies in UK gilts and Japanese bonds to record highs.
The Eurozone Jun Markit manufacturing PMI was revised upward to a 6-month high of 52.8 from the originally reported 52.6.
The China Jun Caixin manufacturing PMI fell -0.6 to 48.6, weaker than expectations of unch at 49.2 and the steepest pace of contraction in 4 months.
The Japan Q2 Tankan large manufacturing business conditions was unchanged at 6, stronger than expectations of -2 to 4.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) final-Jun Markit manufacturing PMI (expected -0.1 to 51.3, prelim-Jun +0.7 to 51.4), (2) Jun ISM manufacturing index (expected unch at 51.3, May +0.5 to 51.3), (3) May construction spending (expected +0.6%, Apr -1.8% m/m), and (4) Jun total vehicle sales expected 17.29 million, May 17.37 million.
There is 1 of the Russell 1000 companies that reports earnings today: Alere (consensus $0.54).
U.S. IPO's scheduled to price today: Gemphire Therapeutics (GEMP), Randolph Bancorp (RNDB).
Equity conferences today include: none.
OVERNIGHT U.S. STOCK MOVERS
Micron Technology (MU +4.32%) slumped over 9% in pre-market trading after it reported Q3 net sales of $2.90 billion, below consensus of $2.96 billion, and forecast Q4 revenue of $2.9 billion-$3.2 billion, less than consensus of $3.21 billion.
SolarCity (SCTY -1.48%) was downgraded to 'Neutral' from 'Ourperform' at Credit Suisse with a target price of $27.
Concern Pharmaceuticals (CNCE -0.53%) was rated a new 'Buy' at Stifel with a 12-month price target of $23.
Preferred Bank/Los Angeles (PFBC +0.49%) was rated a new 'Outperform' at FBR Capital Markets with a 12-month price target of $37.
Skyworks Solutions (SWKS +2.51%) was downgraded to 'Neutral' rom 'Buy' at Mizuho Securities with a 12-month price target of $68.
Huntington Ingalls Industries (HII +2.18%) won a $272.5 million contract from the U.S. Navy to build the LHA 8, a large-deck amphibious assault warship.
Netflix (NFLX +0.46%) rose over 3% in after-hours trading after 7Park had positive comments on Netflix Q2 international subscribers.
Tesla (TSLA +0.99%) fell over 2% in after-hours trading after the U.S. National Highway Safety Administration (NHTSA) said it opened an investigation into a fatal crash involving a Tesla Model S sedan when the 'Autopilot' feature was engaged.
Mobileye (MBLY +9.96%) dropped over 4% in after-hours trading after the NHTSA said it opened a preliminary investigation into a fatal crash involving a Tesla car using Mobileye's 'Autopilot' feature.
Wingstop (WING -0.18%) gained over 3% in after-hours trading after it set a $2.90 special dividend and closed on a new $180 million senior secured debt facility.
Franklin Covey (FC +5.87%) tumbled 12% in after-hours trading after it reported an unexpected -7 cent Q3 EPS loss, much weaker than consensus for a 7 cent gain.
Array BioPharma (ARRY +2.01%) climbed over 5% in after-hours trading after it submitted an application to the FDA for approval for its bibimetinib in patients with advanced NRAS-mutant melanoma.
MARKET COMMENTS
September E-mini S&Ps (ESU16 -0.10%) this morning are down -2.50 points (-0.12%). Thursday's closes: S&P 500 +1.36%, Dow Jones +1.33%, Nasdaq +1.21%. The S&P 500 on Thursday closed higher on signs that global central banks will take the necessary measures to address the Brexit crisis after BOE Governor Carney said the BOE may need to loosen monetary policy to contain the fallout from the UK's Brexit vote. Stocks were also boosted by the +7.5 point increase in the Jun Chicago PMI to a 17-month high of 56.8, stronger than expectations of +1.7 to 51.0. Stocks were undercut by Dallas Fed President Kaplan's comment that the likely effect of the Brexit vote will be to slow GDP growth.
Sep 10-year T-note prices (ZNU16 +0.39%) this morning are up +20 ticks. Thursday's closes: TYU6 -2.50. FVU6 +2.50. Sep T-notes on Thursday closed lower on reduced safe-haven demand with the rally in stocks and on the larger-than-expected +7.5 point gain in the Jun Chicago PMI to a 17-month high. T-notes found support on the rally in UK gilt prices to a record high after BOE Governor Carney said the BOE may need to boost easing measures to contain the effects of the Brexit crisis.
The dollar index (DXY00 -0.42%) this morning is down -0.388 (-0.40%). EUR/USD (^EURUSD) is up +0.0016 (+0.14%). USD/JPY (^USDJPY) is down-0.58 (-0.56%). Thursday's closes: Dollar Index +0.374 (+0.39%), EUR/USD -0.0019 (-0.17%), USD/JPY +0.37 (+0.36%). The dollar index on Thursday close higher on weakness in GBP/USD which fell back toward Monday's 30-3/4 year low after BOE Governor Carney said the BOE may need to loosen monetary policy to contain the fallout from the UK's Brexit vote. The dollar index also received a boost from signs of U.S. economic strength after the Jun Chicago PMI expanded at its fastest pace in 17 months.
Aug WTI crude oil (CLQ16 -0.50%) this morning is down -19 cents (-0.39%). Aug gasoline (RBQ16 -1.85%) is down -0.0256 (01.71%). Thursday's closes: CLQ6 -1.48 (-2.97%), RBQ6 -0.0378 (-2.46%). Aug crude oil and gasoline on Thursday closed lower on the stronger dollar and on the announcement by Nigeria's oil minister that his government began a cease-fire with rebels in the Delta region, which may lead to increased Nigerian oil production as rebels stop attacks on Nigeria's oil infrastructure.
GLOBAL EVENT CALENDAR07/01/2016
| Friday, July 1, 2016 | ||
| US | 0945 ET | Final-Jun Markit manufacturing PMI expected -0.1 to 51.3, prelim-Jun +0.7 to 51.4. |
| 1000 ET | Jun ISM manufacturing index expected unch at 51.3, May +0.5 to 51.3. Jun ISM new orders, May -0.1 to 55.7. Jun ISM employment, May unch at 49.2. Jun ISM prices paid expected unch at 63.5, May +4.5 to 63.5. | |
| 1000 ET | May construction spending expected +0.6%, Apr -1.8% m/m. | |
| n/a | Jun total vehicle sales expected 17.29 million, May 17.37 million. Jun domestic vehicle sales expected 13.40 million, May 13.33 million. | |
| Monday, July 4, 2016 | ||
| US | n/a | U.S. markets and government offices closed for Independence Day. |
| UK | 0430 ET | UK Jun Markit/CIPS construction PMI, May 51.2. |
| EUR | 0430 ET | Eurozone Jul Sentix investor confidence, Jun +3.7 to 9.9. |
| 0500 ET | Eurozone May PPI, Apr -0.3% m/m and -4.4% y/y |
U.S. STOCK CALENDAR07/01/2016
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Alnylam Pharmaceuticals Inc | ALNY | 8:30 | Patisiran and Revusiran Clinical Results Call | ||
| Ford Motor Co | F | 9:15 | June 2016 Sales and Revenue Release | 2016 | |
| Ball Corp | BLL | 9:30 | Business Update Call | ||
| Ford Motor Co | F | 10:00 | June 2016 Sales and Revenue Call | 2016 | |
| Akorn Inc | AKRX | 11:00 | Annual General Meeting | 2016 | |
| Procter & Gamble Co/The | PG | CEO David Taylor to Succeed A.G. Lafley as Chairman: NSN O840KJ6S973D | |||
| Bed Bath & Beyond Inc | BBBY | Annual General Meeting | |||
| Alere Inc | ALR | Q1 2016 Earnings Release |
Thursday, June 23, 2016
MORNING CALL 6/23
MORNING CALL
Thursday, June 23rd, 2016View 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
Sep E-mini S&Ps (ESU16 +0.99%) are up sharply by +0.99% at a 1-1/2 week high and European stocks are up +2.34% at a 3-week high as the UK referendum on membership in the European Union is under way. Optimism is high that Britain will vote to remain in the EU as GBP/USD soared +1.13% to a 5-3/4 month high. Global government bonds and the price of gold tumbled to 2-week lows with the surge in equity markets. Copper prices (HGN16+0.61%) jumped to a 1-1/2 month high and European stocks also found support on an unexpected increase in the Eurozone Jun Markit manufacturing PMI to its fastest pace of expansion in 6 months. Asian stocks settled mixed: Japan +1.07%, Hong Kong +0.35%, China -0.47%, Taiwan -0.45%, Australia +0.18%, Singapore +0.28%, South Korea -0.18%, India +0.88%.
The dollar index (DXY00 -0.54%) is down -0.60% at a 1-1/2 month low. EUR/USD (^EURUSD) is up +0.91% at a 2-week high. USD/JPY (^USDJPY) is up +1.34% at a 1-week high.
The Eurozone Jun Markit manufacturing PMI unexpectedly rose +1.1 to 52.6, stronger than expectations of -0.1 to 51.4 and the fastest pace of expansion in 6 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) today's Brexit vote in the UK, (2) weekly initial unemployment claims (expected -7,000 to 270,000, previous +13,000 to 277,000) and continuing claims (expected -13,000 to 2.144 million, previous +45,000 to 2.157 million), (3) May Chicago Fed national activity index (expected +0.01 to 0.11, Apr +0.65 to 0.10), (4) preliminary Jun Markit U.S. manufacturing PMI (expected +0.2 to 50.9, May -0.1 to 50.7), (5) May new home sales (expected -9.5% to 560,000, Apr +16.6% to 619,000), (6) May leading indicators (expected +0.1%, Apr +0.6%), (7) Jun Kansas City Fed manufacturing activity (expected unch at -5, May -1 to -5), (8) Dallas Fed President Robert Kaplan (non-voter) speaks at a Money Marketeers dinner un New York, and (9) USDA weekly Export Sales.
There is 1 of the Russell 1000 companies that reports earnings today: Accenture (consensus $1.41).
U.S. IPO's scheduled to price today: none.
Equity conferences during the remainder of this week include: Citigroup Insurance Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Herman Miller (MLHR -0.86%) climbed over 5% in after-hours trading after it reported Q4 adjusted EPS of 56 cents, higher than consensus of 52 cents, and said it sees Q1 adjusted EPS of 60 cents-64 cents, above consensus of 60 cents.
Amazon.com (AMZN -0.73%) was rated a new 'Buy' at Maxim Group with a 12-month price target of $825.
Home Depot (HD -0.11%) was upgraded to 'Buy' from 'Neutral' at Nomura with a price target of $155.
Intuit (INTU -1.34%) was added to America's 'COnviction Buy List' at Goldman Sachs.
CACI International (CACI -0.57%) said it sees fiscal 2017 EPS of $6.02-$6.43, below consensus of $6.50.
Steelcase (SCS -0.87%) slid 4% in after-hours trading after it said it sees Q2 adjusted EPS of 29 cents-33 cents, below consensus of 37 cents.
Apogee Enterprises (APOG -4.22%) jumped over 9% in after-hours trading after it reported Q1 EPS of 61 cents, well above consensus of 49 cents, and then raised guidance on fiscal 2017 EPS to $2.70-$2.85 from an April 6 view of $2.65-$2.80.
Bed Bath & Beyond (BBBY -0.35%) fell nearly 6% in after-hours trading after it reported Q1 EPS of 80 cents, below consensus of 86 cents.
Red Hat (RHT -0.80%) dropped over 5% in after-hours trading after it lowered guidance on fiscal 2017 adjusted EPS to $2.19-$2.23 from a March 22 view of $2.22-$2.26.
H.B. Fuller (FUL -0.45%) reported Q2 adjusted EPS of 67 cents, weaker than consensus of 68 cents.
CubeSmart (CUBE +0.57%) was rated a new 'Outperform' at FBR Capital Markets with a 12-month price target of $35.
The U.S. Department of Defense said Harris Corp. (HRS -0.13%) won a $1.7 billion army contract for radios, ancillaries, spare parts and services for Afghanistan.
Weyerhaeuser (WY +0.14%) said it will close 2 of its 3 lumber and plywood mills in Columbia Falls, Montana this summer and approximately 100 positions will be eliminated.
SolarCity (SCTY +3.26%) fell over 2% in after-hours trading after Citron Research founder Andrew Left said that SolarCity "is not even technology. It's a subprime lender" and that he sees the stock price going to zero.
MARKET COMMENTS
September E-mini S&Ps (ESU16 +0.99%) this morning are up sharply by +20.50 points (+0.99%) at a 1-1/2 week high. Wednesday's closes: S&P 500-0.17%, Dow Jones -0.27%, Nasdaq -0.20%. The S&P 500 on Wednesday closed lower on the IMF's cut in its U.S. 2016 GDP estimate to 2.2% from 2.4% and on long liquidation pressure ahead of Thursday's UK Brexit vote. Stocks found support on the +1.8% increase in U.S. May existing home sales to a 9-1/4 year high of 5.53 million.
Sep 10-year T-note prices (ZNU16 -0.31%) this morning are down -13.5 ticks at a 2-week low. Wednesday's closes: TYU6 +3.00, FVU6 +2.25. Sep T-notes on Wednesday closed higher on economic concerns after the IMF cut its U.S. 2016 GDP forecast and on decent demand for the Treasury's $28 billion 7-year T-note auction that had a 2.56 bid-to-cover ratio, above the 12-auction average of 2.49.
The dollar index (DXY00 -0.54%) this morning is down -0.565 (-0.60%) at a 1-1/2 month low. EUR/USD (^EURUSD) is up +0.0103 (+0.91%) at a 2-week high. USD/JPY (^USDJPY) is up +1.40 (+1.34%) at a 1-week high. Wednesday's closes: Dollar Index -0.301 (-0.32%), EUR/USD +0.0054 (+0.48%), USD/JPY -0.34 (-0.32%). The dollar index on Wednesday closed lower on strength in GBP/USD as Brexit concerns eased on optimism the UK will vote Thursday to remain in the European Union. The dollar was also undercut by cautious comments from Fed Chair Yellen that signal the Fed may be slow to raise interest rates when she said the "headwinds" of weak productivity growth and tepid business investment may only slowly fade over time.
Aug WTI crude oil (CLQ16 +1.47%) this morning is up +64 cents (+1.30%). Aug gasoline (RBQ16 +0.88%) is up +0.0087 (+0.55%). Wednesday's closes: CLQ6 -0.72 (-1.44%), RBQ6 -0.0086 (-0.54%). Aug crude and gasoline on Wednesday both fell back from 1-week highs and closed lower. Crude oil prices were undercut by the -917,000 bbl decline in EIA crude inventories (less than expectations of -1.5 million bbl) and the unexpected +627,000 bbl increase in EIA gasoline inventories, more than expectations of -1.0 million bbl. Crude oil found support on a weaker dollar and the -0.4%decline in U.S. crude production in the week ended Jun 17 to a 1-3/4 year low of 8.677 million bpd.
GLOBAL EVENT CALENDAR06/23/2016
U.S. STOCK CALENDAR06/23/2016
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Thursday, June 9, 2016
MORNING CALL 6/8
MORNING CALL
Thursday, June 9th, 2016View 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
Jun E-mini S&Ps (ESM16 -0.33%) are down -0.33% and European stocks are down -0.89% as weakness in commodity prices drags down global equity markets. A sell-off in mining stocks and energy and raw-material producers are leading stocks lower after they rallied sharply earlier this week. The slide in world equity markets has fueled rallies in government bond markets as the German 10-year bund yield matched its record low of 0.033% set Wednesday and the UK 10-year gilt yield dropped to a record low of 1.24%. Asian stocks settled mostly lower: Japan -0.97%, Hong Kong, China and Taiwan closed for holiday, Australia -0.15%, Singapore -0.65%, South Korea +0.06%, India -0.95%. Japanese stocks were undercut by strength in the yen as USD/JPY fell to a 1-month low, which reduces the profitability of exporters. Japanese industrial stocks also fell after the -11.0% plunge in Japan Apr machine orders, the biggest monthly decline in 23 months.
The dollar index (DXY00 +0.32%) is up +0.25%. EUR/USD (^EURUSD) is down -0.47%. USD/JPY (^USDJPY) is down -0.44% at a 1-month low.
Sep T-note prices (ZNU16 +0.19%) are up +6.5 ticks at a contract high due to weakness in global stocks and carryover from rallies in European government bonds to record highs.
The German Apr trade balance shrank to a surplus of 25.6 billion euros, a larger surplus than expectations of 22.8 billion euros. Apr exports were unchanged m/m, stronger than expectations of -0.8% m/m. Apr imports unexpectedly fell -0.2% m/m, weaker than expectations of +1.3% m/m.
Japan Apr machine orders fell -11.0% m/m and -8.2% y/y, weaker than expectations of -3.0% m/m and -1.8% y/y with the -11.0% m/m fall the biggest monthly decline in 23 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +3,000 to 270,000, previous -1,000 to 267,000) and continuing claims (expected -1,000 to 2.171 million, previous +12,000 to 2.172 million), (2) Apr wholesale inventories (expected +0.1% m/m, Mar +0.1% m/m), (3) the Treasury's auction of $12 billion of 30-year T-bonds, and (4) USDA weekly Export Sales.
There are 2 of the Russell 1000 companies that report earnings today: JM Smucker (consensus $1.21), H&R Block (3.17).
U.S. IPO's scheduled to price today: Atkore International Group (ATKR), China Online Education Group (COE),
Equity conferences during the remainder of this week include: American Society of Clinical Oncology Annual Meeting on Mon-Thu, Goldman Sachs Global Health Care Conference on Tue-Thu, Jefferies Global Health Care Conference on Tue-Thu, Baird Global Consumer, Technology and Services Conference on Tue-Thu, Deutsche Bank Global Industrials and Materials Summit on Wed-Thu, Sandler O'Neill Global Exchange and Brokerage Conference on Wed-Thu, Gabelli & Company Movie & Entertainment Conference on Thu, Susquehanna Financial Group Energy and Industrials Conference on Thu.
OVERNIGHT U.S. STOCK MOVERS
Comtech Telecommunications (CMTL -1.36%) lowered guidance on fiscal 2016 revenue to $425 million-$435 million from a March 10 estimate of $435 million-$445 million.
US Concrete (USCR +2.47%) was rated a new 'Buy' at DA Davidson with an 18-month target price of $80.
SolarCity (SCTY -0.94%) rose over 3% in pre-market trading after it was upgraded to 'Outperform' from 'Neutral' at Baird.
Boston Scientific (BSX +0.75%) was rated a new 'Buy' at Guggenheim Securities with a 12-month price target of $26.
Chesapeake Energy (CHK +6.42%) tumbled over 4% in pre-market trading after it was downgraded to 'Underperform' from 'Sector Perform' at RBC Capital Markets.
Fitbit (FIT -1.47%) was rated a new 'Outperform' at Wedbush with a 12-month price target of $18.
Stryker (SYK +1.51%) was rated a new 'Buy' at Guggenheim Securities with a 12-month price target of $134.
LinkedIn (LNKD +0.11%) climbed nearly 2% in pre-market trading after it was upgraded to 'Outperform' from 'Sector Perform' at RBC Capital Markets with a target price of $160.
Restoration Hardware Holdings (RH +1.95%) plunged over 20% in pre-market trading after it reported an unexpected Q1 adjusted EPS loss of -5 cents, weaker than consensus of a 5 cent gain, and then cut its full-year adjusted EPS forecast to $1.60-$1.80, well below consensus of $2.66,
ABM Industries (ABM +1.52%) gained over 3% in after-hours trading after it reported Q2 adjusted EPS continuing operations of 31 cents, higher than consensus of 27 cents.
Tesco (TESO +2.33%) slid over 3% in after-hours trading after it announced a public offering of 7 million shares of common stock.
Envision Healthcare (EVHC +1.66%) rose over 3% in after-hours trading after Dow Jones reported that the company was in merger talks with Amsung.
Team Health Holdings (TMH -0.10%) tumbled over 9% in after-hours trading after Dow Jones reported that a deal between AmSung, who was rumored to merge with Team Health, was said to be close to a deal to merge with Envision Healthcare.
Brinker International (EAT +1.58%) jumped 6% in after-hours trading after it said it sees fiscal 2017 comparable sales up +0.5% to +2.0%.
MARKET COMMENTS
June E-mini S&Ps (ESM16 -0.33%) this morning are down -7.00 points (-0.33%). Wednesday's closes: S&P 500 +0.33%, Dow Jones +0.37%, Nasdaq +0.17%. The S&P 500 index on Wednesday climbed to a 10-1/2 month high and closed higher on the unexpected +118,000 increase in U.S. Apr JOLTS job openings to 5.788 million, more than expectations for a decline of -82,000 to 5.675 million and matching the July 2015 record high. Stocks were also boosted by strength in energy and raw-material producers as commodity prices rallied with crude oil at a 10-1/2 month high and gold and silver at 3-week highs.
September 10-year T-note prices (ZNU16 +0.19%) this morning are up +6.5 ticks at a contract high. Wednesday's closes: TYU6 +2.50, FVU6 +2.00. Sep T-notes on Wednesday fell back from a 1-month high and closed lower on the rally in the S&P 500 to a 10-1/2 month high and on the unexpected increase in Apr JOLTS job openings to a record high. T-notes gained support from a rally in German bunds as the 10-year bund yield fell to a record low of 0.033% and from economic growth concerns after the World Bank cut its global 2016 GDP forecast.
The dollar index (DXY00 +0.32%) this morning is up +0.238 (+0.25%). EUR/USD (^EURUSD) is down -0.0053 (-0.47%). USD/JPY (^USDJPY) is down-0.47 (-0.44%) at a 1-month low. Wednesday's closes: Dollar Index -0.238 (-0.25%), EUR/USD +0.0037 (+0.33%), USD/JPY -0.38 (-0.35%). The dollar index on Wednesday fell to a 1-month low and closed lower on the World Bank's cut in its U.S. 2016 GDP forecast to 2.4% from 2.7% and on continued dollar bearishness after Fed Chair Yellen on Monday expressed concern about last Friday's payroll report and backed off her previous comment that a rate hike would be appropriate in "coming months."
July WTI crude oil (CLN16 -0.82%) this morning is down -40 cents (-0.78%). July gasoline (RBN16 -1.27%) is down -0.0201 (-1.24%). Wednesday's closes: CLN6 +0.87 (+1.73%), RBN6 +0.0327 (+2.06%). July crude oil and gasoline prices on Wednesday closed higher with July crude at a 10-1/2 month high. Crude oil prices were boosted by the slide in the dollar index to a 1-month low and by the -3.23 million bbl decline in EIA crude inventories, a bigger decline than expectations of -3.0 million bbl. Gasoline prices were undercut by the unexpected +1.01 million bbl increase in EIA gasoline stockpiles versus expectations for a -2.0 million bbl draw.
GLOBAL EVENT CALENDAR06/09/2016
| Thursday, June 9 | ||
| US | 0830 ET | Weekly initial unemployment claims expected +3,000 to 270,000, previous -1,000 to 267,000. Weekly continuing claims expected-1,000 to 2.171 million, previous +12,000 to 2.172 million. |
| 0830 ET | USDA weekly Export Sales. | |
| 1000 ET | Apr wholesale inventories expected +0.1% m/m, Mar +0.1% m/m. Apr wholesale trade sales expected +1.1% m/m, Mar +0.7% m/m. | |
| 1300 ET | Treasury auctions $12 billion of 30-year T-bonds. | |
| GER | 0200 ET | German Apr trade balance expected +22.8 billion euros, Mar +26.2 billion euros. Apr exports expected -0.8% m/m, Mar +1.9% m/m. Apr imports expected +1.3% m/m, Mar -2.3% m/m. |
| 0200 ET | German Apr current account balance expected +20.5 billion euros, Mar +30.4 billion euros. | |
| 0200 ET | German Q1 labor costs, Q4 +0.5% q/q and +2.1% y/y. | |
| EUR | 0300 ET | ECB President Mario Draghi speaks at an economic forum in Brussels. |
| JPN | 0200 ET | Japan May machine tool orders, Apr -26.3% y/y. |
| 1950 ET | Japan May PPI expected +0.1% m/m and -4.2% y/y, Apr -0.3% m/m and -4.2% y/y. | |
| Friday, June 10 | ||
| US | 1000 ET | Preliminary-Jun University of Michigan U.S. consumer sentiment expected -0.7 to 94.0, May +5.7 to 94.7. |
| 1200 ET | USDA Jun WASDE crop production. | |
| 1400 ET | May monthly budget statement expected -$56.0 billion, Apr +$106.452 billion. | |
| JPN | 0030 ET | Japan Apr tertiary industry index expected +0.6% m/m, Mar -0.7% m/m. |
| GER | 0200 ET | Revised German May CPI (EU harmonized), preliminary-May +0.4% m/m and unch y/y. |
| 0200 ET | German May wholesale price index, Apr +0.3% m/m and -2.7% y/y. | |
| EUR | 0815 ET | ECB Vice President Vitor Constancio speaks at a Bundesbank conference on Monetary, Financial and Fiscal Stability. |
| UK | 0430 ET | UK Apr construction output expected +1.4% m/m and -4.8% y/y, Mar -3.6% m/m and -4.5% y/y. |
| CHI | 0130 ET | China May industrial production expected +6.0% y/y, Apr +6.0% y/y. |
| 0130 ET | China May retail sales expected +10.1% y/y, Apr +10.1% y/y. | |
| JPN | 1950 ET | Japan Q2 BSI large manufacturing business conditions, Q1 -7.9. Q2 BSI large all-industry business conditions, Q1 -3.2. |
U.S. STOCK CALENDAR06/09/2016
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|---|---|---|---|---|
| Endo International PLC | ENDP US | 3:00 | Annual General Meeting | Y 2016 | |
| JM Smucker Co/The | SJM US | Bef-mkt | Q4 2016 Earnings Release | Q4 2016 | 1.205 |
| Brinker International Inc | EAT US | 8:30 | Investor Day | Y 2016 | |
| Lincoln National Corp | LNC US | 8:30 | Investor Meeting | Y 2016 | |
| JM Smucker Co/The | SJM US | 8:30 | Q4 2016 Earnings Call | Q4 2016 | |
| Omega Healthcare Investors Inc | OHI US | 10:00 | Annual General Meeting | Y 2016 | |
| Visteon Corp | VC US | 11:00 | Annual General Meeting | Y 2016 | |
| Entergy Corp | ETR US | 12:30 | Analyst Day | Y 2016 | |
| LinkedIn Corp | LNKD US | 13:00 | Annual General Meeting | ||
| Zynga Inc | ZNGA US | 13:00 | Annual General Meeting | ||
| H&R Block Inc | HRB US | 16:30 | Q4 2016 Earnings Call | Q4 2016 | |
| H&R Block Inc | HRB US | Aft-mkt | Q4 2016 Earnings Release | Q4 2016 | 3.168 |
| American Airlines Group Inc | AAL US | May 2016 Sales and Revenue Release - Traffic Results | 2016 | ||
| Equifax Inc | EFX US | Investors Meeting - Toronto | Y 2016 | ||
| Public Service Enterprise Group Inc | PEG US | Investor Meeting | Y 2016 | ||
| Credit Acceptance Corp | CACC US | Annual General Meeting | |||
| VeriSign Inc | VRSN US | Annual General Meeting | |||
| CoStar Group Inc | CSGP US | Annual General Meeting | |||
| Netflix Inc | NFLX US | Annual General Meeting | |||
| Intrexon Corp | XON US | Annual General Meeting | |||
| Splunk Inc | SPLK US | Annual General Meeting | |||
| CST Brands Inc | CST US | Annual General Meeting |
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