June E-mini S&Ps (
ESM15 -0.27%) this morning are down
-0.13% as they consolidate modestly below Friday's new all-time high. European stocks are down
-0.58% as no resolution is seen yet to the Greek debt crisis. The yield on the Greek 10-year bond climbed to a 2-week high of 11.40% on concern the ongoing impasse may prompt the ECB to increase the discount on the collateral Greek banks pledge in exchange for cash under its Emergency Liquidity Assistance program. That may fuel further outflow of bank deposits and force Greek Prime Minister Tsipras to choose between doing a deal with Greece's creditors or implement capital controls in an attempt to keep Greece's banks solvent. ECB Executive Board member Mersch said Saturday about Greece's debt crisis that "we are in an endgame" and that "this situation is not tenable." Stock losses were contained on increased M&A activity after Endo International Plc agreed to buy Par Pharmaceutical Holdings for $8.05 billion. Asian stocks closed mixed: Japan +0.80%, Hong Kong
-0.83%, China
-0.58%, Taiwan +0.28%, Australia
-1.33%, Singapore
-0.10%, South Korea +0.24%, India +1.33%. Japan's Nikkei Stock Index climbed to a 2-week high on improved company earnings prospects and share buybacks from Japanese companies.
Commodity prices are mixed. Jun crude oil (
CLM15 +1.29%) is up +0.90% and Jun gasoline (
RBM15 unch) is down
-0.31%. Metals prices are higher. Jun gold (
GCM15 +0.06%) is up +0.29% at a 3-month high after Chicago Fed President Evans said the Fed should hold interest rate at current levels until early 2016 because inflation is still too far below the Fed's target. Jul copper (
HGN15 -0.32%) is down
-0.31%.
The dollar index (
DXY00 +0.50%) is up +0.43%. EUR/USD (
^EURUSD) is down
-0.30%. USD/JPY (
^USDJPY)is up +0.34%.
Jun T-note prices (
ZNM15 -0.10%) are down
-6 ticks.
Chicago Fed President Evans, speaking at the Swedbank Global Seminar in Stockholm, said that the Fed is on a "meeting-by-meeting basis in decision making, at least in terms of the funds rate." He added "my own projection is that it will take quite some time" for inflation to meet target; that's why "I'm in favor of the current level accommodation to continue."
Key U.S. reports today include: (1) May NAHB housing market index (expected +1 to 57 after April's +3 to 56), and (2) comments by Chicago Fed President Charles Evans and ECB Executive Board member Yves Mersch about the economy and monetary policy at the Swedbank Global Seminar in Stockholm.
There are 3 of the Russell 100 companies report earnings today: Urban Outfitters (consensus $0.30), Agilent Technologies (0.39), WP Carey (1.00).
U.S. IPO's scheduled to price today include: Code Rebel (CDRB).
Equity conferences this week include: American Gas Association (AGA) Financial Forum on Mon, JPMorgan Global Technology, Media and Telecom Conference on Mon-Wed, UBS Global Health Care Conference on Mon-Wed, Electrical Products Group Spring Conference on Mon-Wed, EPG Conference on Mon-Wed, Asian Investment Summit on Tue, Nomura Gaming, Leisure and Lodging Conference on Tue, JPMorgan Chase Homebuilding and Building Products Conference on Tue, Goldman Sachs Basic Materials Conference on Tue-Wed, Barclays America Select Conference on Tue-Wed, Wolfe Research Global Transportation Conference on Tue-Wed, LME Week Asia 2015 on Wed, BMO Farm to Market Conference on Wed-Thu, Janney Montgomery Scott - Company Marketing : Biotechnology - Southeast on Fri.
Chevron (
CVX -0.39%) was downgraded to 'Sell' from 'Neutral' at Goldman Sachs.
Chicago Bridge & Iron (
CBI +8.01%) was upgraded to 'Neutral' from 'Sell' at Goldman Sachs.
Targa Resources Partners (
NGLS +0.85%) was downgraded to 'Sell' from 'Buy' at Goldman Sachs.
Holly Energy (
HEP +1.91%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs.
Kansas City Southern (
KSU +0.40%) was downgraded to 'Neutral' from 'Buy' at BofA/Merrill Lynch.
Owens-Illinois ({=OI was upgraded to 'Neutral' from 'Underperform' at BofA/Merrill Lynch.
Chesapeake (
CHK -0.60%) and Hess Corp (
HES +0.36%) were both downgraded to 'Neutral' from 'Buy' at Goldman Sachs.
Endo International Plc (
ENDP +0.39%) will acquire Par Pharmaceutical Holdings for $8.05 billion.
Alibaba (
BABA +0.07%) reported a 17.2% passive stake in zulily (
ZU +1.73%) .
AbbVie (
ABBV +0.03%) announced that it has extended the expiration of its exchange offer to acquire all of the outstanding shares of Pharmacyclics (
PCYC -0.20%) to 5 p.m. EST on May 22.
Berkshire Hathaway gave a quarterly update where they said they increased stakes in International Business Machines (
IBM -0.45%) , Precision Castparts (
PCP +3.80%) , Wells Fargo (
WFC -0.93%) , Phillips 66 (
PSX -0.71%) , and US Bancorp (
USB -1.01%) . Berkshire said they decreased stakes in National Oilwell Varco (
NOV +0.10%) , Viacom (
VIAB +0.72%) , Bank of New York Mellon (
BK -0.65%) , MasterCard (
MA -0.66%) , and Visa (
V -0.61%) .
Icahn Associates gave a quarterly update where they said they increased stakes in Manitowoc (
MTW -0.41%) , Voltari (
VLTC -4.54%) , Federal-Mogul Holdings (
FDML +0.08%) , and Chesapeake Energy (
CHK -0.60%) .
June E-mini S&Ps (
ESM15 -0.27%) this morning are down
-2.75 points (
-0.13%). Friday's closes: S&P 500 +0.08%, Dow Jones +0.11%, Nasdaq
-0.02%. The S&P 500 on Friday posted a 2
-1/2 week high and closed slightly higher on ideas that Friday's weak economic data will delay a Fed interest rate hike. Weak economic data included the
-0.3% drop in U.S. Apr industrial production (weaker than expectations of unch and the fifth straight monthly decline), and the
-7.3 point decline in the U.S. May University of Michigan consumer sentiment index to a 7-month low of 88.6 (weaker than expectations of unchanged at 95.9).
Jun 10-year T-notes (
ZNM15 -0.10%) this morning are down
-6 ticks. Friday's closes: TYM5 +20.50, FVM5 +7.00. Jun 10-year T-notes on Friday closed higher on Friday's weak economic data, which will help to delay a Fed rate hike. T-note prices also received support as the 10-year T-note breakeven inflation expectations rate dropped to a 1-month low.
The dollar index (
DXY00 +0.50%) this morning is up +0.401 (+0.43%). EUR/USD (
^EURUSD) is down
-0.0034 (
-0.30%). USD/JPY (
^USDJPY) is up +).41 (+0.34%). Friday's closes: Dollar Index
-0.322 (
-0.34%), EUR/USD +0.00364 (+0.32%), USD/JPY +0.111 (+0.09%). The dollar index Friday closed lower on the weak U.S. economic data that may delay a Fed rate hike.
Jun WTI crude oil (
CLM15 +1.29%) this morning is up +54 cents (+0.90%) and Jun gasoline (
RBM15 unch) is down 09.0063 (
-0.31%). Friday's closes: CLM5
-0.19 (
-0.32%), RBM5
-0.0030 (
-0.15%). Jun crude oil and gasoline on Friday closed lower on the weaker-than-expected U.S. economic data and on expectations that the global oil supply glut will persist.
| US | 0200 ET | Chicago Fed President Charles Evans and ECB Executive Board member Yves Mersch speak about the economy and monetary policy at the Swedbank Global Seminar in Stockholm. |
| 1000 ET | May NAHB housing market index expected +1 to 57, Apr +3 to 56. |
| 1100 ET | USDA weekly grain export inspections. |
| 1600 ET | USDA weekly crop progress. |
| JPN | 0030 ET | Japan Mar tertiary index expected -0.5% m/m, Feb +0.3% m/m. |
| 0030 ET | Japan Mar capacity utilization, Feb -3.2% m/m. |
| 0030 ET | Revised Japan Mar industrial production, previous -0.3% m/m and -1.2% y/y. |
| Company | Ticker | Time | Event Description | Period | Estimate |
|---|
| WP Carey Inc | WPC US | Bef-mkt | Q1 2015 Earnings Release | Q1 2015 | 1 |
| Visteon Corp | VC US | 10:00 | Extraordinary Shareholders Meeting | Y 2015 | |
| WP Carey Inc | WPC US | 11:00 | Q1 2015 Earnings Call | Q1 2015 | |
| Omnicom Group Inc | OMC US | 12:00 | Annual General Meeting | Y 2015 | |
| Baxter International Inc | BAX US | 12:30 | Investor Conference - Day 1 | Y 2015 | |
| PacWest Bancorp | PACW US | 13:30 | Annual General Meeting | Y 2015 | |
| Urban Outfitters Inc | URBN US | 16:00 | Q1 2016 Earnings Release | Q1 2016 | 0.302 |
| Agilent Technologies Inc | A US | 16:05 | Q2 2015 Earnings Release | Q2 2015 | 0.386 |
| Agilent Technologies Inc | A US | 16:30 | Q2 2015 Earnings Call | Q2 2015 | |
| Urban Outfitters Inc | URBN US | 17:00 | Q1 2016 Earnings Call | Q1 2016 | |
| Consolidated Edison Inc | ED US | | Annual General Meeting | | |
| Equifax Inc | EFX US | | Investor Meeting - Stockholm | Y 2015 | |
| Johnson & Johnson | JNJ US | | PDUFA, Invega Sustenna, three-month formulation in schizophrenia | | |
| Motorola Solutions Inc | MSI US | | Annual General Meeting | | |
| Targa Resources Corp | TRGP US | | Annual General Meeting |
