Tue May 19 2015
Live Index (1445 articles)

Live Index – Tue, 19 May 2015 Premarket

PREMARKET WORLD NEWS

June E-mini S&Ps (ESM15 +0.24%) this morning are up +5.50 points (+0.26%) on carry-over optimism from European stocks. The Euro Stoxx 50 index this morning is sharply higher by +1.7% after an ECB official said that the ECB will increase its QE buying in May and June ahead of lower liquidity during the summer. Asian stocks today closed mostly higher with a sharp +3.13% increase in China’s Shanghai Composite: Japan +0.68%, Hong Kong +0.37%, Taiwan +1.15%, Australia -0.77%, Singapore -0.16%, South Korea +0.36%, India -0.15%.

The dollar index (DXY00 +0.81%) is up +0.67% as EUR/USD (^EURUSD) tumbled by -0.0106 (-0.94%) on the ECB’s announcement that it will temporarily boost the size of QE during May and June. USD/JPY (^USDJPY) is slightly higher by +0.07 points (+0.06%). GBP/USD is down -0.87% this morning on the decline in the UK CPI rate to -0.1% y/y, which will keep BOE policy easy. June 10-year T-notes (ZNM15 +0.20%) are up +6.5 ticks on support from higher June bund prices, which are up +0.67 points.

Commodity prices are down -0.64% this morning on the rally in the dollar index. June WTI crude oil (CLN15 -0.81%) is down -0.51 (-0.85%), June Brent crude oil is down -0.63 (-0.95%), and May gasoline (RBN15 -0.50%) is down -0.0172 (-0.85%). May natural gas (NGN15 +1.80%) is up +0.036 (+1.18%).

Precious metals prices are trading lower this morning on the rally in the dollar index with Jun gold (GCM15 -0.64%) down -7.4 (-0.60%) and July silver (SIN15 -1.65%) down -0.317 (-1.79%). July copper (HGN15 -1.51%) is down -0.052 (-1.79%). Grain prices are trading lower while softs are mixed.

The ECB will increase its QE buying in May and June ahead of lower liquidity during the summer months, according to comments in a speech today by ECB Executive Board member Benoit Coeure. He said that “the slightly higher purchase volume that market analysts may observe in coming weeks is therefore unrelated to the recent episode of market volatility.” The QE program involves the purchase of about 60 billion euros per month of securities and is due to last until Sep 2016 and total 1.1 trillion euros. Although Mr. Coeure said that the purchase adjustment is related to liquidity concerns, the outcome is having the ECB’s desired effect today of pushing the euro lower and providing support for Eurozone bond prices.

Germany’s May ZEW investor confidence index fell sharply by -11.4 points to 41.9 from 53.3 in April, which was substantially weaker than market expectations for a decline to 49. The decline in German investor confidence was driven by the weaker-than-expected German Q1 GDP report of +0.3% q/q, the recent jump in German bond yields, and worries about Greece.

U.S. STOCK PREVIEW

Key U.S. reports today include: (1) April housing starts (expected +9.9% to 1.018 million after March’s +2.0% m/m to 926,000).

There are 6 of the S&P 500 companies report earnings today: Wal-Mart (consensus $ 1.05), Home Depot (1.15), TJX Cos (0.67), Computer Sciences (1.20), Analog Devices (0.72), Autodesk (0.28).

U.S. IPO’s scheduled to price today include: none.

Equity conferences this week include: 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.

June E-mini S&Ps this morning are up +5.50 points (+0.26%) on carry-over optimism from European stocks. Monday’s closes: S&P 500 +0.30%, Dow Jones +0.14%, Nasdaq +0.42%. The S&P 500 on Monday climbed to a fresh all-time high and closed higher on continued hopes that the Fed may not ease until early 2016 after Chicago Fed President Evans said that “my current view is that my economic outlook and my assessment of the balance of risks will evolve in such a way that I likely will not feel confident enough to begin to raise rates until early next year.” Stocks also saw support from increased M&A activity after Endo International Plc agreed to buy Par Pharmaceutical Holdings for $ 8.05 billion and after Ascena Retail Group purchased Ann Inc. for $ 2.2 billion. Tech stocks received a boost from a rally of more than 1% in Apple after billionaire investor Icahn said Apple’s stock price is worth $ 240 a share, over 86% higher than Friday’s close, and that the company should increase its stock buyback program.

PREMARKET U.S. STOCKS
  • Wal-Mart (WMT +0.86%) reported Q1 EPS of $ 1.03, which was 1 cent below the consensus of $ 1.04. Q1 revenue of $ 114.83 billion was below the consensus of $ 116.3 billion. EPS was knocked down by 3 cents by currency effects. Walmart’s U.S. same-store sales were up +1.1%.
  • Home Depot (HD +0.86%) reported Q1 EPS of $ 1.21, higher than the consensus of $ 1.15. Q1 revenue of $ 20.89 billion was slightly above the consensus of $ 20.82 billion. Q1 same-store sales rose 6.1%.
  • Agilent (A +1.40%) reported Q2 EPS of 38 cents, slightly below the consensus of 39 cents. Q2 revenue of $ 963 million was below the consensus of $ 989.3 million.
  • Urban Outfitters (URBN +2.85%) reported Q1 EPS of 25 cents, below the consensus of 30 cents. Q1 revenue of $ 739.01 million was below the consensus of $ 758.25 million.
MARKET COMMENTS

June 10-year T-notes are up +6.5 ticks on support from higher June bund prices, which are up +0.67 points. Monday’s closes: TYM5 -21.00, FVM5 -10.75. Jun T-notes on Monday closed lower on carry-over weakness from a drop in German bund prices and on reduced safe-haven demand with the rally in the S&P 500 to a new record high.

The dollar index is up +0.67% as EUR/USD tumbled by -0.0106 (-0.94%) on the ECB’s announcement that it will temporarily boost the size of QE during May and June. USD/JPY is slightly higher by +0.07 points (+0.06%). GBP/USD is down -0.87% this morning on the decline in the UK CPI rate to -0.1% y/y, which will keep BOE policy easy. Monday’s closes: Dollar Index +1.086 (+1.17%), EUR/USD -0.01333 (-1.16%), USD/JPY +0.716 (+0.60%). The dollar index on Monday closed higher on weakness in EUR/USD as market concerns grow about the Greek banking system and the lack of progress in Greek bailout negotiations. USD/JPY received a boost after Japan Mar industrial production was revised lower to -0.8% m/m from -0.3%, which boosted speculation the BOJ may be forced to expand stimulus measures.

June WTI crude oil is down -0.51 (-0.85%), June Brent crude oil is down -0.63 (-0.95%), and May gasoline is down -0.0172 (-0.85%). Monday’s closes: CLN5 -0.11 (-0.18%), RBN5 -0.0101 (-0.49%). Jul crude oil and gasoline on Monday closed lower on the stronger dollar and on higher Saudi Arabian oil production. The Joint Organizations Data Imitative (JODI) reported that Saudi March oil output rose to 10.29 million bpd, up +6.7% m/m and the most since at least Jan 2002 when JODI began collecting statistics.

GLOBAL EVENT CALENDAR05/19/2015
US0830 ETApr housing starts expected +9.9% to 1.018 million, Mar +2.0% m/m to 926,000. Apr building permits expected +2.2% to 1.065 million, Mar -5.4% to 1.042 million.
EUR0200 ETEurozone Apr new car registrations.
0500 ETRevised Eurozone Apr CPI, previous -0.1% y/y. Revised Apr core CPI, previous +0.6% y/y.
UK0430 ETUK Apr CPI expected +0.4% m/m and unch y/y, Mar +0.2% m/m and unch y/y. Apr core CPI expected +1.0% y/y, Mar +1.0% y/y.
0430 ETUK Apr RPI expected +0.4% m/m and +0.9% y/y, Mar +0.2% m/m and +0.9% y/y. Apr RPI ex-mortgage interest payments expected +0.9% y/y, Mar +0.9% y/y.
0430 ETUK Apr PPI input prices expected +0.8% m/m and -11.5% y/y, Mar +0.3% m/m and -13.0% y/y.
0430 ETUK PPI output prices expected +0.2% m/m and -1.6% y/y, Mar +0.2% m/m ad -1.7 y/y. Apr PPI output core prices expected unch m/m and +0.1% y/y, Mar unch m/m and +0.1% y/y.
0430 ETUK Mar ONS house prices, Feb +7.2% y/y.
GER0500 ETGerman May ZEW survey expectations of economic growth expected -4.3 to 49.0, Apr 53.3. May ZEW survey current situation expected -2.2 to 68.0, Apr 70.2.
JPN0130 ETJapan Apr nationwide department store sales, Mar -19.7% y/y.
1950 ETJapan Q1 GDP expected +1.6% q/q annualized, Q4 +1.5% q/q annualized, Q1 GDP deflator expected +3.6% y/y, Q4 +2.4% y/y.
1950 ETJapan Q1 GDP private consumption expected +0.2% q/q, Q4 +0.5% q/q. Q1 GDP business spending expected +0.6% q/q, Q4 -0.1% q/q.
U.S. STOCK CALENDAR05/19/2015
CompanyTickerTimeEvent DescriptionPeriodEstimate
Home Depot Inc/TheHD USBef-mktQ1 2016 Earnings ReleaseQ1 20161.152
Wal-Mart Stores IncWMT US7:00Q1 2016 Earnings ReleaseQ1 20161.047
Wal-Mart Stores IncWMT US7:00Q1 2016 Earnings CallQ1 2016
Baxter International IncBAX US8:00Investor Conference – Day 2Y 2015
Home Depot Inc/TheHD US9:00Q1 2016 Earnings CallQ1 2016
TJX Cos Inc/TheTJX US9:30Q1 2016 Earnings ReleaseQ1 20160.665
JPMorgan Chase & CoJPM US10:00Annual General MeetingY 2015
TJX Cos Inc/TheTJX US11:00Q1 2016 Earnings CallQ1 2016
Juniper Networks IncJNPR US12:00Annual General MeetingY 2015
Gap Inc/TheGPS US13:00Annual General Meeting
Essex Property Trust IncESS US13:00Annual General MeetingY 2015
Computer Sciences CorpCSC US16:15Q4 2015 Earnings ReleaseQ4 20151.198
Analog Devices IncADI US17:00Q2 2015 Earnings CallQ2 2015
Computer Sciences CorpCSC US17:00Q4 2015 Earnings CallQ4 2015
Autodesk IncADSK US17:00Q1 2016 Earnings CallQ1 2016
Analog Devices IncADI USAft-mktQ2 2015 Earnings ReleaseQ2 20150.719
Autodesk IncADSK USAft-mktQ1 2016 Earnings ReleaseQ1 20160.282
Equifax IncEFX USInvestor Meeting – AmsterdamY 2015
Southwestern Energy CoSWN USAnnual General Meeting
Skyworks Solutions IncSWKS USAnnual General Meeting
Range Resources CorpRRC USAnnual General Meeting
Morgan StanleyMS USAnnual General Meeting
Allstate Corp/TheALL USAnnual General Meeting
Diamond Offshore Drilling IncDO USAnnual General Meeting
Principal Financial Group IncPFG USAnnual General Meeting
Boston Properties IncBXP USAnnual General Meeting
FirstEnergy CorpFE USAnnual General MeetingY 2015
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